Stock market

Blue chips hit by low confidence 10/May/2017 Intellasia| VNS Shares dropped on both local markets on Monday as investors switched investments from large-cap stocks to mid- and small-cap ones, putting blue chips into negative territory. The benchmark VN Index on the HCM Stock Exchange inched down 0.16 per cent to close at 718.86 points. Vietnam's key index has lost total 0.4 per cent after the last two sessions. The HNX Index on the Hanoi Stock Exchange fell 0.65 per cent to end at 89.13 points, retreating from a gain of 0.2 per cent made on Friday. Market trading liquidity improved from the previous session. More than 277 million shares were traded on both local bourses, worth VND5.85 trillion (US$260.2 million). Low investor confidence sent large-cap stocks down with two-thirds of the largest 30 companies by market capitalisation falling. Among the 10 largest listed firms, FLC Faros Construction (ROS) lost 0.9 per cent, dairy producer Vinamilk (VNM) was down 0.5 per cent, and Vietcombank (VCB) decreased by 1 per cent. Other large-cap stocks that declined were Tien Phong Plastic (NTP), Asia Commercial Bank (ACB) and Sai Gon-Hanoi Bank (SHB), which slid between 1.1 per cent and 4.1 per cent. The two largest agriculture and farming companies, Hoang Anh Gia Lai (HAG) and its subsidiary Hoang Anh Gia Lai Agriculture International (HNG) dipped 6.6 per cent and 6.8 per cent, respectively. The stocks of both companies were put on the designated list and the decision will come into effect on May 12 as the two firms have reported a loss of VND1.1 trillion for Hoang Anh Gia Lai and VND984.8 billion for its agriculture arm. The energy sector finished down on Monday as global oil prices reversed to trade around the reference price levels after remaining positive in the morning. Brent crude inched up 0.1 per cent to trade at $49.15 a barrel, erasing the gains made in the earlier half of the day as investors and analysts were kept waiting on hopes for a prolonged output cut agreement between the Organisation of Petroleum Exporting Countries (OPEC) and other large exporters. On the positive side, mid-cap and small-cap stocks, especially real estate firms' shares, proved a safe haven for short-term investors. Shares of property developers became attractive to investors as they were ahead of companies that are about to pay dividends in cash and bright prospects for the domestic real estate market. The benchmark VN Index fell for a second day as it attempted to test the lower support levels, Sai Gon- Hanoi Securities (SHS) said in its report. However, Monday's fall was not something that investors should worry about as strong demand and purchases for low-valued stocks remained strong, SHS said. The current conditions suggest that the VN Index would fall back to the range of 715 and 718 points before recovering and approaching the challenging level of 720 points, the northern brokerage firm added. http://bizhub.vn/markets/blue-chips-hit-by-low-confidence_286002.html

VN Index back above 220 points 10/May/2017 Intellasia| VN Economic Times All main indexes return to positive territory on May 9. All main indexes on Vietnam's stock market gained ground on May 9. On HSX, the VN Index increased 2.25 points (0.45 per cent) and the VN30-Index 6.97 points (1.02 per cent). On HNX, the HNX-Index rose 1.24 points (1.39 per cent) and the HNX30-Index 3.03 points (1.83 per cent) while the UPCoM-Index fell 0.05 points (0.08 per cent). Liquidity on HSX reached VND4 trillion ($176 million), 11 per cent lower than yesterday, and on HNX was VND563 billion ($24.7 million), 16 per cent higher. The VN Index opened at 718.7 points and fluctuated for most of the morning session before increasing quickly to close at 720.5 points. In the afternoon it fell slightly, 720.2 points, before rising gradually and closing the day's trade at 722.11 points. In food and beverages, KDC and BHN increased 3.8 per cent and 0.1 per cent, respectively, while VNM lost 1.3 per cent, SAB 1.2 per cent, SBT 0.8 per cent, and MSN 0.6 per cent. All large caps in banking closed higher: VCB by 2 per cent, MBB 1.5 per cent, STB 1.3 per cent, CTG 1.1 per cent, EIB 0.9 per cent, and BID 0.6 per cent. In energy, GAS and PGD increased 1.1 per cent and 0.7 per cent, respectively, while CNG closed at its opening price. In real estate, only FLC lost ground, by 0.3 per cent, while DXG increased 6.8 per cent, KBC 2.7 per cent, KDH 1.5 per cent, VIC 0.9 per cent, and NVL 0.7 per cent. Among other large caps, ROS and BVH lost 0.9 per cent, MWG 0.6 per cent, and VJC 0.2 per cent. ROS saw the highest liquidity on HSX, with VND838 billion ($37 million), followed by HNG with VND224 billion ($9.8 million) and DXG with VND151 billion ($6.6 million). VNM saw VND135 billion ($6 million) change hands. On HNX, PVI increased 2.7 per cent, ACB 2.6 per cent, VCS 2.3 per cent, VCG 1.3 per cent, and PVS 1.2 per cent. SHB and PHP closed at their opening price. Foreign investors net sold on HSX by VND81 billion ($3.5 million) and on HNX by VND24 billion ($1.1 million). http://vneconomictimes.com/article/banking-finance/vn-index-back-above-220-points

Shares rise on bargain hunting 10/May/2017 Intellasia| VNS Vietnamese stocks rose on both local markets on Tuesday morning on bargain hunting for shares of companies that fell in the previous sessions. The benchmark VN Index on the HCM Stock Exchange inched up 0.2 per cent to close at 720.47 points. The southern market index dropped total 0.4 per cent in the previous two days. The HNX Index on the Hanoi Stock Exchange gained 0.7 per cent to end at 89.74 points. The northern market index fell 0.7 per cent on Monday. More than 170 million shares were traded on both local bourses, worth VND2.85 trillion (US$126.9 million). Property developers continued to attract high investment from investors due to bright prospects on their performance and promising earnings. Gainers included Hoang Quan Consulting-Trading-Service Real Estate Corp (HQC), Tan Tao Investment and Industry (ITA), Vingroup (VIC), Novaland (NVL) and Sai Gon Thuong Tin Real Estate (SCR). Hoang Anh Gia Lai (HAG) and its agriculture arm Hoang Anh Gia Lai Agriculture International (HNG) reversed the significant hits they suffered on Monday following their reported losses for 2016. HAG jumped 3.5 per cent and HNG surged 5.9 per cent. Brokerage firms also recorded strong gains, including Sai Gon Securities (SSI), HCM City Securities (HCM) and MB Securities (MBS). The afternoon session starts at 1pm. http://bizhub.vn/markets/shares-rise-on-bargain-hunting_286015.html

Stocks drop but turnover rises 10/May/2017 Intellasia| The Saigon Times Stock losses extended for a second session on May 8 but turnover sharply improved as cash flowed into property stocks. Though the number of rising stocks slightly outnumbered that of losers by 143 to 127, the VN Index closed the day down 0.16 percent at 718.86 points. The HCM City market saw 232 million shares worth more than VND5.3 trillion changing hands, jumping 19.5 percent and 43 percent versus the session earlier. In morning trade, HAG and HNG tumbled as the HCM City stock watchdog issued a warning against loss makers, including HNG which plunged to its floor price of VND11,000 per share with matching volume totalling three million shares. The property sector attracted huge cash flow in the afternoon phase but the VN Index could not rebound as large caps performed poorly. TTF hit the upper limit at over VND8,100 a share after it signed a major deal to make wooden products for Vingroup's residential projects last week. In the real estate sector, most stocks hit the ceiling prices or made good gains while HQC, NVL and VIC declined. Among the large caps, VNM, VJC, VCB and SAB closed in the red, and PVD declined after one session of recovery while GAS, BHN and DPM slightly advanced. HAG was the most actively traded stock with 16.5 million shares changing hands, followed by SCR with 13.3 million shares, and HQC, ROS and FLC with 8.5 million to 9.7 million shares each. The HNX-Index fell before bouncing back mildly at the close. It lost 0.65 percent from the session earlier at 89.13 points. There were 44.6 million shares worth VND486 billion traded on the Hanoi bourse, falling around 5 percent against last Friday. Pillar stocks contributed negatively to the Hanoi exchange index. ACB lost 1.7 percent at VND23,100 a share with 1.3 million shares traded while SHB plunged 4.1 percent at VND7,000 per share with volume of nearly 7.5 million shares. Meanwhile, VND, VCG and LAS helped save the index from a steep decline. Among the small caps, HKB fell to its floor price at VND5,100 a share due to strong last-minute selling with trading volume rising to nearly 2.4 million shares. Foreigners net bought over 282,000 shares worth VND40 billion on the HCM City market after having net sold VND32.8 billion last Friday. They focused on CTD with a net buying value of VND21.9 billion, followed by PLX with VND17.4 billion and SSI with VND14.4 billion. On the other hand, they net sold 1.2 million shares worth VND17 billion on the Hanoi exchange. http://english.thesaigontimes.vn/53816/-Stocks-drop-but-turnover-rises.html

Pre-listing firm investments promise large gains 10/May/2017 Intellasia| VNS Recent returns have shown that investments in pre-listing companies promise big gains for investors who make bets on the firms with impressive business results and clear listing plans. Speculations in recent listings such as budget airline Vietjet (VJC) and real estate developer Novaland Investment Group (NVL) have brought investors returns of over 40 per cent. Prices of these shares climbed 43-46 per cent in only one to two months of listing. Investors who bought shares of Vietnam National Petroleum Group (PLX) when it made the initial public offering earned profits of nearly 230 per cent. PLX price soared to VND49,000 (US$2.16) on its April 21, 2017 debut, far exceeding its IPO price of over VND15,000 in 2011. These return rates have outperformed the benchmark VN Index, which has expanded just around 8 per cent this year. Similar success is expected in the coming listings of Siam Brothers Vietnam Joint Stock Company and Kido Frozen Food Joint Stock Company. Siam Brothers Vietnam, a Thai manufacturer for rope and net used for fishing, maritime transportation and agricultural sectors, will list 20.54 million shares with the sticker SBV on May 16 on the HCM Stock Exchange at the reference price of VND40,000 a share. The 60-year-old company holds a 40 per cent market share of the fishing lines. 90 per cent of the Vietnamese offshore fishing fleets are using specialised rope manufactured by Siam Brothers Vietnam. The company's shares are trading around VND45,000-48,000 apiece on the Over-the-Counter (OTC) market, a rise of 36.4 per cent over its IPO price of VND33,000 in September 2016. With a high dividend rate (mostly over 40 per cent in cash since 2011) and good profit growth (39 per cent in 2016 and 15-23 per cent in the next two years), its share prices are expected to increase when it starts trading this month. Share prices of Kido Frozen Food (KDF) are also increasing on the OTC market, trading around VND58,000-60,000 a share, up 11.5 per cent over its IPO price in March this year. Kido Frozen Food is the country's leading ice-cream market leader with a 35-per-cent market share in 2016. It reported after-tax profits of nearly VND143 billion ($6.2 million) last year, a year-on-year growth of 85 per cent. The company plans to debut shares on the HCM Stock Exchange in the third quarter of 2017. http://bizhub.vn/markets/pre-listing-firm-investments-promise-large-gains_286003.html

Financials lift VN Index 11/May/2017 Intellasia| VNS The benchmark VN Index gained over five points, or 0.7 per cent, to reach 727.2 points on Wednesday morning as blue chips and financial stocks advanced. All six listed banks on the HCM Stock Exchange increased, of which Sacombank (STB) was the largest gainer, up 4.2 per cent, followed by Vietinbank (CTG), up 3.1 per cent. The others Vietcombank (VCB), BIDV (BID), Military Bank (MBB) and Eximbank (EIB) rose between 0.5 and 2.7 per cent each. Shares of securities firms such as Saigon Securities Inc (SSI), HCM Securities Corp (HCM) and FPT Securities Co (FTS) also advanced 0.8-2.7 per cent. Bank stocks increased 2.1 per cent on average while securities sector saw average growth of 1.4 per cent. Twenty-one of the top 30 shares by market value and liquidity on the southern bourse increased while only six decreased. Half of the losers were agricultural stocks, such as Hoang Anh Gia Lai Co (HAG), Hoang Anh Gia Lai Agricultural Investment (HNG) and sugar maker Thanh Thanh Cong Tay Ninh SJC (SBT). On the Hanoi Stock Exchange, the HNX-Index was also up 0.44 per cent at 90.77 points. A total of 165.2 million shares worth some VND2.9 trillion (US$126.5 million) were traded on the two markets. The afternoon session starts at 1pm. http://bizhub.vn/markets/financials-lift-vn-index_286045.html

HSX up as HNX falls 11/May/2017 Intellasia| VN Economic Times Mixed day on May 10 with VN Index close to 725 points. Main indexes on HSX increased while those on HNX fell on May 10. On HSX, the VN Index increased 2.20 points (0.3 per cent) and the VN30-Index 9.42 points (1.38 per cent). On HNX, the HNX-Index closed down 0.21 points (0.23 per cent), the HNX30-Index 0.53 points (0.32 per cent), and the UPCoM-Index 0.19 points (0.33 per cent). Liquidity on HSX reached VND4.1 trillion ($180.3 million), more or less the same as yesterday, and on HNX was VND609 billion ($26.7 million), 8 per cent higher. The VN Index opened at 722.11 points and quickly reached 724.8 points early on before hitting its bottom of the day of 723.5 points in mid-session. It then increased dramatically to close the morning at 727.2 points. In the afternoon session it fluctuated for some time before falling gradually and closing the day's trade at 724.31 points. In food and beverages, MSN, VNM, and SAB increased 1.2 per cent, 0.3 per cent, and 0.1 per cent, respectively. SBT fell 3.2 per cent, BHN 0.6 per cent, and KDC 0.5 per cent. All large caps in banking increased: STB by 4.2 per cent, BID 3 per cent, CTG 2 per cent, MBB 1.5 per cent, VCB 0.8 per cent, and EIB 0.5 per cent. In energy, CNG closed at its opening price while GAS and PGD lost 1.1 per cent and 0.2 per cent, respectively. In real estate, KBC and NVL both increased 2.9 per cent and NLV 0.6 per cent, FLC closed at its opening price, and DXG fell 3.7 per cent, VIC 0.7 per cent, and KDH 0.5 per cent. Among other large caps, VJC increased 1.3 per cent, ROS and MWG 0.1 per cent, and FPT and BVH 0.4 per cent and 0.3 per cent, respectively. ROS saw the highest liquidity on HSX, with VND746 billion ($32.8 million), followed by HBC with VND171 billion ($7.5 million) and PLX with VND127 billion ($5.6 million). VNM saw VND92 billion ($4 million) change hands. On HNX, NTP and VCS increased 0.7 per cent and 0.3 per cent, respectively. ACB and PVS closed at their opening price while SHB shed 2.9 per cent, VND 2.7 per cent, PHP 1.9 per cent, PVI 1 per cent, and VCG 0.6 per cent. Foreign investors net bought on HSX by VND87 billion ($3.8 million) and net sold on HNX by VND8 billion ($351,840 million). http://vneconomictimes.com/article/banking-finance/hsx-up-as-hnx-falls

Foreigners net purchase $820m in 4 months 11/May/2017 Intellasia| AFP As per the report of the National Financial Supervisory Commission (NFSC), in April 2017, foreign investors net bought $120 million, including $95 million in stocks and $25 million in bonds. In the first four months of this year, foreigners net bought $820m, including $550m in bonds and $270m in stock, 2.5 times higher than in the same period of 2016. The total market value in the portfolio held by foreign investors was estimated at $23.5 billion, up 15 percent over the end of 2016. The foreign ownership rate was estimated to reach 19.1 percent in the stock market and 6.3 percent in the bond market. On the bond market, as of the end of April 2017, the State Treasury raised 81.580 trillion dong from the issuance of government bonds, completing 45 percent of the yearly plan. The demand for government bonds increased sharply, especially for terms of 10 years or more, thanks to the active participation of life insurers.

Executives snap up shares after positive information 11/May/2017 Intellasia| VNS Dang Huynh Uc My, a member of the managing board of sugar maker Thanh Thanh Cong Tay Ninh JSC (SBT), registered to purchase 3 million SBT shares between May 11 and June 9. The planned purchase comes after the company announced a merger plan with Bien Hoa Sugar Co (BHS) to create the largest sugar company on Vietnam's stock market with value estimated at VND10 trillion (US$438.6 million). In a filing to the HCM Stock Exchange on Friday, My said the purchase was purely for investment purposes. My holds 1.56 per cent of total outstanding shares and her ownership is expected to rise to 2.74 per cent after the transaction. The price of SBT shares fell 1.3 per cent in the last four days, trading at VND25,300 a share on Tuesday. Prior to the company's dividend payment next month, chair of Dat Xanh Real Estate Service & Construction Corp (DXG) Luong Tri Thin registered to buy 5 million DXG shares until June 1, seeking to raise his ownership to 8.85 per cent from 6.87 per cent. Dat Xanh Real Estate will issue nearly 33 million shares to pay for 2016's dividend with 13 per cent in stocks and 5 per cent in cash, expected in June 29. Trading of this stock has been active in recent days with average 10-day volume touching nearly 4.3 million shares per session. Its price also expanded more than 13 per cent in the last 10 days. At VND24,500 a share, Thin will likely spend nearly VND123 billion for the purchase. Tran Ngoc Dinh, vice chair of Dream House Investment Corp (DRH), booked a purchase of 3.2 million shares of the company, equivalent to 6.52 per cent of its capital. At the annual shareholders' meeting on April 20, the company passed a restructuring plan to get rid of its fertiliser business and focus on real estate. DRH prices have soared nearly 27 per cent in the past month to about VND31,000 a share with daily trading volume of 1.1 million shares. Also, managing executives of Simco Song Da (SDA), Vietnam Construction No 7(VC7), KLF Joint Venture Investment International (KLF) have registered to buy between 150,000 shares to one million shares. http://bizhub.vn/markets/executives-snap-up-shares-after-positive-information_286025.html

VCBS raises deposit rates on end-of-the-day cash management products 11/May/2017 Intellasia| Vneconomy With the expectation that customers can maximise their capital effectiveness, Vietcombank Securities Company Limited (VCBS) has announced to increase interest rate on end-of-the-day cash management products on stock trading account. Accordingly, from May 8, 2017, VCBS will raise the interest rate from 0.5 percent per annum to 3.5 percent per annum. VCBS also said customers can contact customer support centre at 043.9366990 (ext.: 140, 143) or come to the nearest VCBS transaction points for support related to this service. In Q1/2017, VCBS reported a profit of over 60 billion dong, up 245 percent year-on-year. Also in Q1/2017, VCBS entered the top 10 securities companies with the largest market share on both exchanges.

Dung Quat refinery offer shares to 15 investment funds 11/May/2017 Intellasia| The Saigon Times Binh Son Refining and Petrochemical Company (BSR), the operator of Dung Quat Oil Refinery, has written to 15 domestic and foreign investment funds offering shares, Dan Tri news website reports. BSR general director Tran Ngoc Nguyen said his company would launch their shares onto the market late this year. Dung Quat is the first oil refinery in Vietnam invested and owned by the State, with a processing capacity of 6.5 million tonnes of crude oil a year, meeting only 30 percent of domestic demand for refined products and petrochemicals. In 2015-2016, the total profit of BSR reached nearly $500 million. The return on equity was 17 percent, and the State budget collection was $2 billion in the form of taxes, surcharges and distributions of after-tax profits. BSR is currently the investor of the Dung Quat Oil Refinery upgrade and expansion project with an aim of raising the annual capacity of the facility from 6.5 million to 8.5 million tonnes. Concerning the plan for equitisation of Dung Quat refinery, Bloomberg in late 2016 reported the refinery intended to launch its initial public offering (IPO) in the third quarter of the following year and was currently in the process of evaluation. Giang said BSR had held talks with international companies, including one from the Middle East and several from Southeast Asia, over the sale of a 35 percent stake in the IPO. However, the identity of these companies was not disclosed. "We are working very hard to prepare for the IPO next year. The exact timing and volume of this sale will depend on the market situation in the coming year," Giang said. With respect to the sale of shares, Gazprom Neft of Russia once showed interest in a 49 percent stake held by PVN in Dung Quat refinery and proposed a plan for expansion of the facility with a total investment of $1.5-3 billion. However, after several years of negotiations, Gazprom Neft in June last year announced they had relinquished its intention to invest in Dung Quat. Alexander Valeryevich Dyukov, chair of Gazprom Neft, then explained his firm did not buy the 49 percent stake in Dung Quat from PVN because they did not feel satisfied with the conditions proposed by Vietnam. Gazprom Neft's abandoning the plan to acquire the 49 percent stake in Dung Quat has forced BSR to find another option to expand the plant. A BSR leader revealed Vietnam would look for a $1.2 billion foreign loan to invest in Dung Quat before its equitisation in 2017. As planned, when completed in 2021, after the expansion Dung Quat, the refinery will be able to address half of Vietnam's fuel needs. Currently, the capacity of the facility is 148,000 barrels per day, meeting about a third of the demand at home. http://english.thesaigontimes.vn/53861/Dung-Quat-refinery-offer-shares-to-15-investment-funds.html

Vietnam Airlines earns over 560 billion VND in profit in Q1 11/May/2017 Intellasia| VNA The Vietnam Airlines Group earned syndicated revenue of 21.2 trillion VND (932.4 million USD) in the first quarter of this year, up 12.5 percent against last year, with pre-tax syndicated profit approximating 854 billion VND (37.5 million USD). The national carrier Vietnam Airlines alone made over 16.2 trillion VND (712.5 million USD) in revenue, up 5 percent year-on-year, earning pre-tax profit of 563 billion VND (24.7 million USD). In Q1/2017, the airline operated nearly 34,500 flights, 1.3 percent higher than its quarterly plan, of which 91.6 percent were reportedly on time, an increase of 6.2 percentage points over the same period last year. The volume of passengers and goods rose by 9.3 percent and 23 percent respectively to reach more than five million passengers and 76,000 tonnes of goods. Fuel price hike in earlier this year, which was 65.19 USD per barrel, resulted in 1 trillion VND added to fuel cost. However, the group remained its growth in quantity, quality and revenue. During the reviewed time, the Vietnam Airlines Group's members were awarded numerous prizes voted by prestigious international airlines, including the European Aviation Safety Agency's EASA-145 maintenance organisation approval certificate handed to Vietnam Airlines Engineering Company. According to the group leaders, Vietnam Airlines will continue working to ensure security, high productivity and its four-star service quality standard to achieve goals set for 2017. http://en.vietnamplus.vn/vietnam-airlines-earns-over-560 billion-vnd-in-profit-in-q1/111499.vnp

PetroVietnam records 10 millionth oil barrel in Algeria 11/May/2017 Intellasia| VNS PetroVietnam Exploration and Production Corporation (PVEP) on Monday recorded its 10 millionth oil barrel at Block 433a & 416b of the Bir Seba mine in the Sahara Desert, Algeria. PVEP is a member of State-owned Oil and Gas Group (PetroVietnam). The oil was exploited by Groupement Bir Seba (GBRS), a joint venture of PVEP and also the current operator of this project from commencement date August 12, 2015. This is the first oil and gas exploitation project abroad in which PVEP is playing the role of an operator. It is in joint ventures with Algerian national oil company Sonatrach and Thailand Petroleum Company PTT. The project was assigned to PetroVietnam and PVEP after they won in the international bidding process to become the operator during the exploration stage from 2003 to 2008. To operate in the mine development and exploitation phase, PVEP formed joint ventures with its partners to set up Groupment Bir Seba (GBRS) under the Product Sharing Agreement (PSC). This is also PetroVietnam's first project related to drilling services abroad. PetroVietnam Drilling and Well Services Corporation (PV Drilling) has brought a number of drilling rigs to Bir Seba field and drilled dozens of wells at the field. The Block 433a and 416b oil and gas exploration project is being implemented since 2003. The project is estimated to have total reserves of some one billion barrels of oil. In the first phase, it is producing around 18,000 to 20,000 barrels of oil per day from 13 wells. The second phase of the project is expected to be complete by 2019, increasing total capacity of the project to 40,000 barrels per day. http://vietnamnews.vn/bizhub/376191/petrovietnam-records-10 millionth-oil-barrel-in- algeria.html#CVPDCmH27DdMsKE5.97

Foreign investment helps market 12/May/2017 Intellasia| VNS Vietnam's key VN Index extended growth for a second day yesterday as bank stocks were boosted by strong foreign investment. The benchmark index on the HCM Stock Exchange gained 0.30 per cent to close at 724.31 points. It has advanced total 0.8 per cent after the last two sessions. Market trading liquidity remained stable with more than 228 million shares traded, worth VND4.52 trillion (US$201.2 million). The figures were almost unchanged in comparison with Tuesday's numbers. Foreign investors posted a net buy value of VND87.6 billion, which was a big improvement compared to the net foreign sell value of VND81.5 billion made on Tuesday. Foreign investment yesterday focussed on the banking industry, making it the strongest growing industry among 20 sectors in the stock market with the sector index gaining 1.5 per cent, according to vietstock.vn. According to Sai Gon-Hanoi Securities (SHS), there were two bank stocks in the top five that received net foreign buy values, which were Sacombank (STB) and Vietcombank (VCB). The Bank for Investment and Development of Vietnam (BID) and Eximbank (EIB) were also attractive to foreign investors. STB and BID posted the biggest gains among banks listed on the southern bourse, with growth rates of 4.2 per cent and 3 per cent. VCB and EIB edged up 0.8 per cent and 0.4 per cent, respectively. Listed banks have recorded positive earnings in the first quarter of 2017. First-quarter post-tax profits of Vietcombank, BIDV and Sacombank were VND2.2 trillion, VND2.04 trillion and VND210 billion, year- on-year increases of 20 per cent, 5.8 per cent and 30 per cent, respectively. Other sectors such as rubber producers, energy firms and food and beverage companies also performed well. Among those companies, energy stocks were lifted by rising oil prices after OPEC members and other exporters have struggled to cut production, extending the output curb agreement to the end of this year. Brent crude rose 1 per cent to trade at $49.22 a barrel. Property stocks remained positive with the growth of Novaland (NVL), Hoang Quan Consulting- Trading-Service Real Estate (HQC), Kinh Bac City Development Holding (KBC) and Sai Gon Thuong Tin Real Estate (SCR). HQC and SCR were the two most active stocks on the southern bourse with more than 14 million and 10 million shares exchanged, respectively. HQC gained 0.8 per cent while SCR surged 6.9 per cent. http://bizhub.vn/markets/foreign-investment-helps-market_286058.html

Securities companies lift stock market 12/May/2017 Intellasia| VNS Shares advanced further on the two local markets on Thursday morning, led by brokerage firms. The benchmark VN Index on the HCM Stock Exchange added 0.2 per cent to close at 726.07 points. It moved up a total of 0.8 per cent in the previous two days. The HNX Index on the Hanoi Stock Exchange edged up 0.2 per cent to end at 90.32 points, extending its gain from a two-day growth of 0.8 per cent. More than 156 million shares were traded on both local bourses, worth VND3.1 trillion (US$138 million). Shares of securities firms were the strongest gainers on Thursday morning among 20 industries, boosting the sector index by one per cent, according to vietstock.vn. The largest gainers included HCM City Securities (HCM), Sai Gon-Hanoi Securities (SHS), VNDirect Securities (VND) and An Phat Securities (APG). Property developers and energy producers remained positive. The two sectors were lifted by Sacomreal (SCR), Kinh Bac City Development Holding (KBC), PetroVietnam Coating (PVB) and PetroVietnam Gas (GAS). SCR was also the most active stock in the market, with nearly 10.7 million shares being exchanged. The afternoon session starts at 1pm. http://bizhub.vn/markets/securities-companies-lift-stock-market_286079.html

VN Index inches upward slowly 12/May/2017 Intellasia| VNS Vietnam's key VN Index inched up on Thursday as investors sought short-term profits in recently-gaining stocks. The benchmark index on the HCM Stock Exchange closed up 0.09 per cent at 724.99 points. The index has increased by a total 0.85 per cent in the last three sessions. Market trading liquidity fell from Wednesday with more than 223 million shares being traded, worth VND5.33 trillion (approximately $237 million). Banks, energy producers, rubber companies and agriculture firms were among decliners. Of the six listed banks on the southern bourse, BIDV (BID), Vietinbank (CTG), Eximbank (EIB) and Sacombank (STB) fell after they had made two-day increases. The four bank stocks dropped between 0.4 per cent and 1.1 per cent from their two-day gains of 3.6 per cent, 3.1 per cent, 13.5 per cent and 5.5 per cent, respectively. Shares of rubber companies also ended in negative territory following previous strong gains. Sao Vang Rubber JSC (SRC) was down 0.6 per cent, Da Nang Rubber JSC (DRC) fell 1 per cent and the Southern Rubber Industry JSC (CSM) lost 1.1 per cent. SRC had advanced total 1.8 per cent and DRC jumped 6.1 per cent in the previous two days, while CSM soared 5.8 per cent in the previous four days. Energy producers suffering losses included PetroVietnam Mud Drilling (PVC) and PetroVietnam Drilling and Well Services (PVD), while the two largest agriculture firms Hoang Anh Gia Lai (HAG) and Hoang Anh Gia Lai Agriculture International (HNG) also saw their share values fall. Some speculative stocks in other industries such as property developers Dream House Investment (DRH), Hoang Quan Consulting-Trading-Service Real Estate (HQC) and An Duong Thao Dien JSC (HAR) also declined on profit-taking. On the positive side, dairy producer Vinamilk (VNM), Vietnam National Petroleum Group (PLX) and Vietcombank (VCB) gained. BIDV Securities (BSC) said in its daily report that the market gained at a slower rate at the end of the session, compared to the first half, as investors sought short-term profits in stocks that had made gains in previous days. Investors have switched their focus from speculative stocks to large-cap ones in the VN30 Index, which tracks the performance of the 30 largest companies by market capitalisation, BSC said, adding that the VN Index continue to rise over the next few days. The HNX Index on the Hanoi Stock Exchange, however, fell 0.29 per cent to end at 89.90 points. The northern market index has dropped a total 0.5 per cent in two days. http://bizhub.vn/markets/vn-index-inches-upward-slowly_286086.html

Pre-listing firm investments promise large gains 12/May/2017 Intellasia| VNA Recent returns have shown that investments in pre-listing companies promise big gains for investors who make bets on the firms with impressive business results and clear listing plans. Speculations in recent listings such as budget airline Vietjet (VJC) and real estate developer Novaland Investment Group (NVL) have brought investors returns of over 40 percent. Prices of these shares climbed 43-46 percent in only one to two months of listing. Investors who bought shares of Vietnam National Petroleum Group (PLX) when it made the initial public offering earned profits of nearly 230 percent. PLX price soared to 49,000 VND (2.16 USD) on its April 21, 2017 debut, far exceeding its IPO price of over 15,000 VND in 2011. These return rates have outperformed the benchmark VN Index, which has expanded just around 8 percent this year. Similar success is expected in the coming listings of Siam Brothers Vietnam Joint Stock Company and Kido Frozen Food Joint Stock Company. Siam Brothers Vietnam, a Thai manufacturer for rope and net used for fishing, maritime transportation and agricultural sectors, will list 20.54 million shares with the sticker SBV on May 16 on the HCM Stock Exchange at the reference price of 40,000 VND a share. The 60-year-old company holds a 40 percent market share of the fishing lines. 90 percent of the Vietnamese offshore fishing fleets are using specialised rope manufactured by Siam Brothers Vietnam. The company's shares are trading around 45,000-48,000 VND apiece on the Over-the-Counter (OTC) market, a rise of 36.4 percent over its IPO price of 33,000 VND in September 2016. With a high dividend rate (mostly over 40 percent in cash since 2011) and good profit growth (39 percent in 2016 and 15-23 percent in the next two years), its share prices are expected to increase when it starts trading this month. Share prices of Kido Frozen Food (KDF) are also increasing on the OTC market, trading around 58,000- 60,000 VND a share, up 11.5 percent over its IPO price in March this year. Kido Frozen Food is the country's leading ice-cream market leader with a 35-per-cent market share in 2016. It reported after-tax profits of nearly 143 billion VND (6.2 million USD) last year, a year-on-year growth of 85 percent. The company plans to debut shares on the HCM Stock Exchange in the third quarter of 2017. http://en.vietnamplus.vn/prelisting-firm-investments-promise-large-gains/111569.vnp

Vietnam Airlines, Vietjet perform well in Q1 12/May/2017 Intellasia| The Saigon Times National flag carrier Vietnam Airlines and low-cost counterpart Vietjet posted strong revenue growth despite rising fuel costs in the first quarter of this year. Vietnam Airlines unveiled its first-quarter business results and a 2016 annual report on May 10, saying that it gained good results despite unfavourable market conditions. In particular, the average fuel cost was $65.1 per barrel, up $13.64 over the same period last year. This led to its input cost rising by VND1 trillion (US$43.9 million). However, its total revenue and consolidated income amounted to a staggering VND21.2 trillion, a year- on-year rise of around 12.5 percent. The airline got consolidated pre-tax profit of roughly VND854 billion. Its parent company posted revenue of VND16.2 trillion, up 5 percent year-on-year, and pre-tax profit of more than VND563 billion. In the period, Vietnam Airlines operated nearly 34,500 flights, 1.3 percent higher than its quarterly plan, and transported over five million passengers and nearly 76,000 tonnes of cargo, up 9.3 percent and 23 percent over the same period last year respectively. Notably, it still maintained a domestic market share of a whopping 61 percent. Meanwhile, Vietjet's quarter-one financial report showed the domestic fuel cost rose to an average of VND17.9 million per tonne compared to VND12.3 million in the first quarter of last year. But the pickup had been factored in its business plan. The low-cost carrier saw its revenue increasing by 43 percent year-on-year to over VND5 trillion, 10.6 percent higher than its quarterly target. Especially, it posted strong growth on international routes. Its after-tax profit grew by 6.8 percent to VND382 billion against the same period of 2016. It served around 3.7 million passengers, up 29 percent year-on-year. The airline added three international services in quarter one, taking the total to 63 routes. It reported seat occupancy of 88 percent, and a flight punctuality ratio of 87.7 percent, up by four points year-on-year. Its equity rose from VND3.07 trillion as of early January to VND5.2 trillion in late March. Vietjet plans to put Airbus A320/321 NEO aircraft into service to reduce its fuel cost by 15 percent. http://english.thesaigontimes.vn/53868/Vietnam-Airlines-Vietjet-perform-well-in-Q1.html

'Even if it's midnight, Vietjet staff are there for shareholders': Managing director 12/May/2017 Intellasia| The Saigon Times By the end of the season of shareholders' general meeting in April, the public had witnessed a slew of dramatic events and surprises. In case of Vietjet, it was the live broadcast and simultaneous interpretation for foreign shareholders that conveyed a distinct impression when their annual shareholders' general meeting became a conference of international stature. Foreign shareholders and investors listen to simultaneous interpretation to follow the development of the meeting Despite the scorching heat in Saigon these days, at the annual shareholders' general meeting of Vietjet, the company's leaders stood outside the gate to welcome their shareholders. Obviously, that was the friendly reception seen on board all flights of Vietjet, representing the image of a professional airline mindful about every detail. The special thing with Vietjet is that their shareholders' general meeting was reported live on the company's "shareholder relations" page, which not all enterprises are willing to do. Furthermore, investors' questions were always a "nightmare" of business leaders during shareholders' general meetings. Speaking at the event, Luu Duc Khanh, Vietjet Managing director, said: "In previous meetings, Vietjet shareholders only sat in a small hall. Now Vietjet has more than 2,500 shareholders and we hold the event in this fully-occupied auditorium." Over 95 percent of shareholders with foreign ownership of up to 25 percent attended the meeting, an unexpected figure suggesting that Vietjet is receiving great attention from investors. This year is the first year of Vietjet "on the bourse," also the first year Vietjet "has opened the door" for investors so that they can get access to the information of the aviation industry. Instead of trying to avoid addressing problems, the management of Vietjet chose transparency and wanted all investors to be able to access information on the meeting. As Vietjet is a new-age airline, the modern technology at the meeting helped investors grasp every detail in the speeches and answers of Vietjet leaders whether they stayed home or were present at the auditorium. Remarkably, foreign shareholders participating in the meeting were offered simultaneous interpretation, with a headset automatically delivering the content in two languages English and Vietnamese as in an international conference. The materials were also prepared in both English and Vietnamese so that foreign investors had the same information access as their domestic counterparts. The application of information technology to various types of activities is not new. Since their very beginning, Vietjet has adopted "the Technology Revolution 4.0" to automate all processes, boost efficiency and reduce risks associated with humans. In 2017, the air carrier plans to spend about $10 million on technology. Hard questions were brought to the board and all received convincing answers. When asked about the fact that customers had to declare a lot of information when buying air tickets, Vietjet leadership said customers should provide sufficient information to comply with aviation security policy, and more importantly, to help Vietjet serve them better. Vietjet leadership mentioned the offer of complimentary e- tickets to shareholders, but "to send e-tickets we must have exact email addresses and mobile phone numbers." When everyone thought this was just an example given at the meeting, one week later, Vietjet announced they would give complimentary air tickets to all individual shareholders who had been finally listed on May 10th, in addition to dividends' payment in cash. Moreover, together with their listing, Vietjet has launched an investor relations department to respond to any questions of shareholders. The airline has also set up a central switchboard system 19001886 to take care of investors 24/7. "Even if shareholders wonder why the stock rises or falls at night, just dial us and there will be people to receive the call," said Luu Duc Khanh. Vietjet is not a cheap airline but rather a "service provider with the most efficient and affordable costs." The best customer service is a criterion of the air carrier. Data from the Association of Asia Pacific Airlines (AAPA) show that Vietjet has high safety standards compared to other airlines in the world and the region. In some indicators such as flight safety and ground operations safety, Vietjet performs better than some of the world's famous airlines. In addition to constantly expanding their network of domestic and international services, the effective cost management and operational quality enhancement of the airline are assisted technology application programmes. Vietjet always operates as a highly safe and reliable airline while committing to the governance of a listed company in accordance with international standards, with audit conforming to both Vietnamese standards (VAS) and international standards (IFRS). "We believe there is a bright future in the air for our customers, our employees, our shareholders and our investors, and Vietjet is making every effort to bring it closer. Vietjet is also aiming to become an airline with high quality and governance efficiency of a listed company in accordance with good standards in Vietnam and in the world," Vietjet President & CEO Nguyen Thi Phuong Thao said at the meeting. http://english.thesaigontimes.vn/53883/ percentE2 percent80 percent9CEven-if-it percentE2 percent80 percent99s-midnight-Vietjet-staff-are-there-for-shareholders percentE2 percent80 percent9D-Managing- Director.html

Finance

Reference exchange rate up 9 VND 10/May/2017 Intellasia| VNA The State Bank of Vietnam set the reference VND/USD exchange rate at 22,373 VND/USD on May 10, up 9 VND from the day ago. With the current +/- 3 percent VND/USD trading band, the ceiling exchange rate is 23,042 VND per USD and the floor rate is 21,703 VND per USD. Major commercial banks kept their rates stable. Vietcombank listed its buying rate at 22,700 VND/USD and its selling rate at 22,770 VND/USD, unchanged from May 9. Vietinbank also retained its buying rate at 22,700 VND and its selling rate at 22,770 VND, per USD. Meanwhile, BIDV cut its buying rate by 10 VND to 22,700 VND and its selling rate by 30 VND to 22,770 VND, per USD. http://en.vietnamplus.vn/reference-exchange-rate-up-9-vnd/111443.vnp

Banking sector actively copes with rising exchange rates 10/May/2017 Intellasia| DTCK On May 3, the US Federal Reserve (Fed) continued to send positive signals about the US economy despite slowing growth in Q1. Specifically, Fed was still optimistic about the good consumption demand, growing investment and inflation approaching the set target. This agency assessed that the growth decline in Q1 was only temporary. Earlier, official data showed that the US's GDP in Q1 only grew 0.7 percent, significantly lower than the two previous quarters. Right before the meeting, Fed's officials expressed confidence in the forecast that there will have two more interest rate increases this year, unlike wrong predictions in 2016. This means Fed is sending the message that disappointing economic data cannot make this agency change interest rate increase schedule in June and December. After Fed's meeting ended and its officials broadcasted positive news, the US dollar in the world market surged against the euro and Japanese Yen. The US dollar Index, which measures the strength of the US dollar against the basket of six other currencies), closed on May 3 to climb more than 0.2 percent, from 98.88 points to 99.34 points. For the domestic monetary market that opened on the morning of May 4, the US dollar/dong index in many banks has also simultaneously increased. Specifically, Vietcombank traded at 22,705-22,775 dong/US dollar, up 25 dong per trading session; Vietinbank traded at 22,700-22,770 dong/US dollar, up 10 dong; BIDV traded at 22,700-22,770 dong/US dollar, up 30 dong. The central rate on May 4 swelled five dong to 22,344 dong/US dollar, with an amplitude of +/-3 percent; exchange rate fluctuated at 22,670-23,014 dong/US dollar. The possibility that Fed increases interest rates by one more time in June is expected by the market at 71 percent (as per CME Group). Along with that, the trade balance in April is estimated to suffer from the deficit of $800 million, bringing the country's trade deficit as of April 15 to $2.8 billion. Based on recent support information, many economic experts forecast that the US dollar will continue to recover in the following sessions after being adjusted in the past nearly one month. On May 5, the State Bank issued the central rate at 22,353 dong/US dollar (down two points from May 4), with the amplitude of +/-3 percent; the ceiling price was 23,022 dong/US dollar and the floor price was 21,682 dong/US dollar. However, the reference rate at Hanoi Stock Exchange increased sharply and for the first time exceeded 23,000 dong/US dollar. Specifically, the Stock Exchange listed the buying price at 22,675 dong/US dollar and the selling price at 23,006 dong/US dollar. However, with the State Bank's downward adjustment of the central rate, on May 5, some commercial banks reduced the exchange rate compared to the session on May 4, to the popular buying-selling price of 22,700-22,770 dong/US dollar. Accordingly, in the group of joint stock commercial banks, the exchange rate was listed at 22,700 dong/US dollar for the buying side and 22,770 dong in the selling side, down 20 dong from the previous day in ACB. In Techcombank, the US dollar/dong exchange rate was traded at 22,700 dong for the buying side and 22,795 dong for the selling side, down five dong. In the group of state-owned banks, the US dollar/dong exchange rate on May 5 was listed by Vietcombank at 22,700 dong/US dollar for the buying side and 22,770/US dollar for the selling side, down 10 dong from May 4. The buying/selling US dollar price in Vietcombank was listed at 22,700-22,780 dong/US dollar. Also in the downward trend, BIDV listed the exchange rate at 22,700 dong/US dollar for the buying side and 22,770 dong for the selling side, down five dong for both sides. With this reality, economists and analysts highly appreciated the initiative of the State Bank in regulating and managing the market. Talking with Dau Tu Chung Khoan, deputy Governor Nguyen Thi Hong said besides favourable factors from the result of 2016, the regulation of macroeconomic policy in general and monetary policy in particular continue facing challenges and pressures in 2017. In the world, the economic situation is complicated along with the forecast that economic development has not had much improvement, the commodity prices continues increasing trend, the US dollar appreciates, etc. These developments have unfavourable effects on growth, export and put pressures on inflation control, monetary and foreign currency markets in the country. "In its management process, the State Bank will continue watching closely developments at home and abroad to promptly take appropriate measures with reasonable timing and dosages, contributing to stabilising the macro economy and achieving monetary policy objectives", emphasized Hong.

Lending decelerates 10/May/2017 Intellasia| Tri Thuc Tre Report on the monetary market in the first week of May by Saigon Securities Incorporation (SSI) showed that the liquidity of the interbank market in the last week has not cooled down as interbank rates across the term recorded insignificant decline of 10-14 basis points. The overnight rate at the end of the week was 4.43 percent per annum. According to SSI, the liquidity tension has lasted for two months and not yet shown signs of cooling down. On the Open Market Operations (OMO), after two holidays with no trading, the market reopened with an injection of seven trillion dong, 13 trillion dong less than the maturity value, equivalent to a net injection of six trillion dong, pulling the volume of OMO in circulation to 25 trillion dong. In the past two months, the volume of OMO in circulation has been maintained at over 20 trillion dong to support liquidity, in contrast with the declining towards zero trend in the same period of last year. On market 1, mobilisation interest rates remained relatively stable at 4.7 percent per annum on one- month term and 6 percent per annum on six-month term. According to the April regular government meeting, the four-month credit growth was estimated at 4.86 percent, while it was 4.06 percent in the first quarter. Thus, the lending growth has slowed down in April due to the high liquidity and interbank rates. SSI believed that this is not a negative signal but vice versa. It is essential at this stage in order to rebalance lending growth with the growth of mobilisation and to better evaluate the absorption capacity of the economy in order to avoid the risk of inflation.

Right mix for consumer loans to flourish: experts 10/May/2017 Intellasia| VNA Consumer lending has the potential for explosive growth in Vietnam, but this can only happen with significant improvements in consumer satisfaction with credit institutions and loan conditions, experts say. They say that tapping this growth potential will boost national spending and economic growth. "Within the decade, market demand for unsecured loans has grown to adapt to the current financial scene in Vietnam, with an increasing amount of retail lenders and personal borrowers," Hoang Van Hai, director of the School of Business Administration (SBA), Vietnam National University of Economics and Business, said at a recent conference. He said the growth can be attributed to favourable legal and socio-economic conditions that have fostered changes in income and spending habits. At present, consumer loans in Vietnam range in value from 1 million VND to 60 million VND (44.6 USD to 2,680 USD). The application process and repayment schedule are fairly simple, and the rate of interest is reasonable at between1.49 percent to 1.6 percent per month, with the occasional zero percent for smaller loans. In 2016, consumer credit was mostly used for purchasing household goods and travel expenses, with a focus on mobile devices, vehicles and personal computers under 2,000 USD. Sometimes, depending on the borrower's credit history, capital is given directly (instead of paying purchase invoices). Vietnamese consumers are reaching a spending over earnings ratio of 67 percent, and this is set to rise further as the economy picks up. Hai said that Vietnam will soon reach a purchasing market worth about 15 billion USD per year, with 30 million people in the 20 to 59 age bracket. This means more and more people in the middle income group are demanding capital to fund their immediate spending, without the hassle going through bank loans for smaller purchases. Underdeveloped sector However, the central bank sees current retail lending as underdeveloped, given the modest number of credit institutions giving out consumer loans as also the overall demand for such loans. The central bank estimates that consumer loans account for just five to ten percent of total lending in the country, as opposed to the average 40 to 50 percent in developed nations. Can Van Luc, a senior advisor to the Chair of the Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV), said at an online conference in March that Vietnamese credit institutions granting consumer loans have a mere 1.78 billion USD in capital, about 0.7 percent of the credit sector's total. This is due to the fact that these institutions are not allowed to take deposits like commercial banks, having to rely instead on bonds. The lack of capital, coupled with the reluctance among a majority of consumers to borrow, has lead to interest rates higher than the commercial banks' average of 0.9 to 1.2 percent per month, said Luc. However, consumer lending carries rich potential, especially among the population segment that does not qualify for bank loans. This segment can access this capital instead of being beholden to black market loans controlled by loan sharks. While the central bank is positive about growth in this credit segment, there are still regulatory issues that need to be resolved. In 2016, the SBV and the Ministry of Industry and Trade, received a large number of complaints from borrowers. The Vietnam Competition Authority (VCA) released a report last year in which they detailed several major problems faced by consumers buying common household and electronic items. A chief complaint from borrowers was that cumulative calculation of interest rates made the loan repayment untenable in just three to six months. They also said that the credit institutions did not show "decent conduct" while trying to recover loans. The VCA advised consumers to have a clear understanding of the loan contracts before signing and reevaluate their own disposable income before taking out a loan, no matter how small. Meanwhile, the SBV has simplified procedures and increased transparency for consumer loans through Circulars 39 and 43 issued in 2016 and 2017 respectively. At present, the SBV considers a loan to be a consumer loan if it is made in dong, the borrower is an individual, not an institution, the purpose of the loan is to meet personal spending needs, and the total amount borrowed does not exceed 100 million VND (4,468 USD). en.vietnamplus.vn/right-mix-for-consumer-loans-to-flourish-experts/111383.vnp

Banks make huge profits from lending 10/May/2017 Intellasia| Tri Thuc Tre At the government's regular press meeting on April 5, 2017, the Office Chief Mai Tien Dung said credit growth in the first four months was highest in six recent years, reaching 4.86 percent compared to 3.27 percent in the same period. Along with the strong growth momentum of credit, banks started very well in the first quarter of the year. The evidence is a series of banks announced trillions of dong profits, while the remaining banks have also reported profit surge compared to the same period last year. Our statistics show that six banks reported trillions dong of profits including Vietcombank, VietinBank, BIDV, VPBank, Techcombank and MB. Meanwhile, banks will smaller scale also showed unexpected growth compared to the same period. Notably, in term of income structure, banks are still heavily relying on lending, including such big banks as BIDV, Vietinbank or Vietcombank. For small banks, profits from credit segment may account for 80-90 percent, even offsetting other loss-making business operations. LienVietPostBank was the bank with the highest growth rate of net interest income in the system. In Q1/2017, the bank's net interest income touched 1.259 trillion dong, up 70 percent year-on-year. After offsetting other operations, the bank still recorded outstanding profit growth compared to the same period. At the end of Q1, LienVietPostBank still posted a 77 percent increase in pre-tax profit over the same period, hitting 469 billion dong. The bank's after-tax profit remained 350 billion dong. Some banks have negative growth in lending rate such as Techcombank, TPBank, etc. compared to the end of the year. However, compared to the same period, the net interest income still showed strong growth. For example, customer lending at TPBank decreased more than seven percent compared to the end of 2016 with the outstanding loan of 43 trillion dong. However, compared to Q1/2016, the bank's net interest income still grew more than 50 percent, reaching 612 billion dong. Recently, commenting at the general annual meeting of a bank in the South, a representative of the state bank said in the current context when businesses still face difficulties, high profits are not necessarily good but the important thing is real and sustainable profits. To achieve this, it is necessary to classify bad debt in accordance with regulations and put sufficient provision for risks. As per the analysis of experts in the industry, the business and production of businesses depends mostly on bank loans. Meanwhile, bank profits depend mainly on credit service. Banks need to make profits while still having to put provisions and handle bad debts. This is the barrier for the interest rate reduction. In addition, the pressure to raise deposit rates has always been available at small banks. Therefore, lending rates are difficult to decrease following the State Bank's target. As per VCBS, the difference between lending rates and deposit rates in banks has dropped sharply in about three recent years and has been much lower than regional countries. The smaller the difference between deposit and lending rates, the thinner profit margin banks have, thereby they have less incentives to reduce lending rates. Therefore, the new and sustainable direction for banks now is to improve revenue from non-credit activities.

Banks make full use of service fees 10/May/2017 Intellasia| Nguoi Lao Dong Some commercial banks have proposed the State Bank of Vietnam (SBV) to consider the roadmap for transaction fee increase through ATM to offset investment costs, which makes many cardholders worry. Nguyen Van Dung, a resident in District 12, HCM City said he has just made cash transactions into a company account opened at Vietcombank in the same area with the amount of 600,000 dong only but it costed him up to 22,000 dong. Raising his concerns to bank staff, he was explained with a clear list of fees. However, looking at the list of fees publicised on Vietcombank's website, "cashing in other people's accounts" in the same system, same province and same city is free-of-charge". "I usually make online money transfer via e-banking with the fee of about 10,000 dong but due to the urgency, I thought entering transaction office of the bank where that company opened account will be free- of-charge and the company will receive money immediately. Who knew it was costly; the fee was even so high. The bank staff said it is only free if you send money to your personal account but not for company account. Meanwhile, the bank's list of fees does not specify this", said Dung. Usually using internet banking to transfer and receive money but recently, Vo Thi Ngoc (living in Binh Thanh district, HCM City) said the bank where she opened account even collects fee from the account owner when receiving money. Her colleague sent her two million dong through online banking service of Eximbank and was deducted 1,100 dong service fee in spite of transferring to the same system, same province and same city. "Transactions on ATM are deducted all kinds of fees, transactions on e-bank are the same but receiving money from another account in the same bank, same city, same province and getting fees deducted is also a kind of spent", said Ngoc. It was reported that some commercial banks have recently tended to raise service fees by applying more fees or raising fees in each service. For example, Mai Anh (living in District 9, HCM City, Eximbank card holder) has received a notice on deduction of money from account for SMS Banking fee with 33,000 dong/three months; Internet Banking annual fee with 108,900 dong. Since the end of last year, Eximbank started to collect account management free for individual customers having an average balance of less than 300,000 dong/month with 11,000 dong per month. Previously, money withdrawal and transfer transactions on ATM machines of other commercial banks - were free-of-charge but banks have now started to collect 1,100 -3,300 dong/money withdrawal transaction inside or outside the network. Credit card holders of many commercial banks also said they have to pay many kinds of fees with rather high fees. As a regular overseas traveller, Ngoc Chau (living in Tan Phu district, HCM City) opened a credit card at Citibank, Vietnam branch. Every time going on business trips or travelling, she often books airfare, hotels online and makes payment through credit cards but foreign exchange fee was rather high, about four percent. Meanwhile, credit card penalty fees are entirely not cheap. With only one-day-late payment, cardholders will be automatically deducted without receiving any notice or remind message from banks. "Once I made payment through Internet Banking to pay on the night of the due date, the next morning the bank received but still silently collected delinquency fees amounting to 300,000 dong", said Chau. When transacting at the counter, there are many kinds of arising service fees that not all customers know or thoroughly study while not being advised by bank staff. For example, Vo Thi Ngoc said several days ago, she needed to transfer 30 million dong to her acquaintance in the same system. At that time, there was only 20 million dong in her account. If supplementing 10 million dong in cash and then transferring the whole amount of money, it would be more costly than withdrawing 20 million dong and cashing in that person's account. "Each bank has a different list of fees but not all customers know and thoroughly study, so it is like a matrix of fees. For many times I was annoyed when knowing that using other service would cost me less money", Ngoc confided. As per the regulation of the State Bank, each bank must publicly list service fees on its website or at its branches and transaction offices. However, each bank has dozens of different fees that not all customers know. For example, for the shortened list of fees for ATM cards of Vietinbank, there are a series of fees such as issuance fee and conversion fee for ordinary cards, quick issuance, card account management by month, card reissuance, PIN code issuance, inquiry and card transaction statement, cash withdrawal, money transfer, complaint investigation, interbank transfer, etc. Representative of the State Bank's Payment Department said for each new product and service, commercial banks will calculate and determine appropriate level of fees on the basis of balancing expenses to provide services that are suitable to each type of customer. Accordingly, customers only have to make payment for the service that they use. For example, ATM service fee includes the following ones: card issuance fee, annual fee, money withdrawal fee, money transfer fee, statement, etc. Currently, banks invest about 400-600 million dong in an ATM, along with installment fee, maintenance fee, and security fee. Therefore, collecting fees to offset investment fees is necessary.

Banks silently raise fees 10/May/2017 Intellasia| Bao Dau Tu On May 8, the Bank for Investment and Development of Vietnam (BIDV) officially applied the new list of fees for e-banking. Accordingly, the money transfer fee of less than 10 million dong increased from 6,600 dong to 7,000 dong. The money transfer fee for up to 500 million dong also improved from 12,000 dong to 15,000 dong. Meanwhile, Tien Phong Commercial Joint Stock Bank (TPBank) has recently raised balance announcement fee via SMS Banking to 11,000 dong per month (previously 8,800 dong). At Vietnam Export Import Joint Stock Commercial Bank (Eximbank), each subscriber must pay 50,000 dong per quarter, or more than 16,000 dong per month for the service fee of balance announcement via SMS message. Previously, Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank) officially increased Internet Banking fee. Accordingly, from the beginning of May, Sacombank raised fees for Internet Banking service of individual customers from 33,000 dong to 44,000 dong per quarter.

Vietcombank a modest giant in the banking system 10/May/2017 Intellasia| NDH From the beginning of the year, Hochiminh city Securities Company (HSC) has issued four reports directly analysing the business activities of the Commercial Joint Stock Bank for Foreign Trade of Vietnam (Vietcombank, stock code: VCB), not to mention dozens of daily bulletins also refer to this bank. In these reports, HSC has always forecasted the 2017 profit growth of Vietcombank at above 30 percent, even when the bank had not released the financial data in 2016. HSC has also used the "positive" rating (the highest rating for stock assessment) for VCB. Sharing similar view, the analysis report of Viet Capital Securities Company (VCSC) announced in late March 2017, after Vietcombank published its financial data in 2016, forecasted the pre-tax profit of Vietcombank in 2017 to grow by about 40 percent to 12 trillion dong. The basis used by VCSC for this forecast is the expectation of lower provisions for risks and improvement of Net Interest Margin (NIM). However, from a different aspect, Vietcombank's 2017 annual general meeting (AGM) held a week ago showed a calmer view of its leaders. The credit growth target this year, as shared by the bank's chair Nghiem Xuan Thanh, will be lower than the goal assigned by the State Bank of Vietnam (SBV), and the profit growth is planned at only 8 percent, while the issue of capital raising still has many problems. The question is that why the forecast of Vietcombank's leaders is somewhat negative and that of securities firms is very optimistic. Is it purely the difference between the views of insiders and outsiders, or is Vietcombank a modest bank? This year's AGM is not the first time shareholders questioned Vietcombank's board of directors about the overly modest business plan, as exceeding the goals has almost become customary in the recent years. In 2015, the bank targeted pre-tax profit of 5.9 trillion dong, and the actual result was more than 6.8 trillion dong, 16 percent exceeding the plan. In 2016, the profit target was set at 7.5 trillion dong, and the realised figure was 13.5 percent higher than target, and 25 percent higher than the realised figure in 2015. It is worth to mention that the growth results of Vietcombank in 2016 were reduced fairly significantly when the bank raised provisions for risks by nearly 6 percent and became the first bank to have fully provisioned for the bad debts sold to the Vietnam Asset Management Company (VAMC). Data of VCSC also pointed out that the high profit of Vietcombank has facilitated the bank to handle a large amount of bad debts which accounted for 0.9 percent of the total outstanding loans. The bad debts written off in the last quarter of 2016 by Vietcombank reached approximately 2.7 trillion dong, equivalent to 193 percent of the bank's settled bad debts in the first three quarters of the year. According to Vietcombank's management board at the 2017 AGM, since the profit in 2016 of the bank was unusual with very impressive growth rate, the setting 8 percent target in 2017 will be appropriate for the sustainable direction. Although it is lower than the same period of last year, it is much higher than other state-owned banks'. Nevertheless, from the perspective of financial experts, the profit growth in 2016 of Vietcombank (25 percent) was not only unusual but was curbed and shared to the following years. The analysis of HSC and VCSC both stated that the dynamic of growth for Vietcombank in 2017 is not only thanks to its business operation but also the considerable decline of risk provisioning. HSC predicted the provisions for risks of Vietcombank in 2017 to fall by 25 percent, while VCSC said that the bank's provisions this year will be only 4.8 trillion dong compared to the 6.4 trillion dong recorded in 2016. In addition, HSC forecasted the credit growth of Vietcombank to be as high as 19 percent, while the bank's chair estimated it at 14 percent. The reason of HSC is that Vietcombank has completed the issuance of corporate bonds worth eight trillion dong in 2016, of which six trillion dong are secondary debts and they can be calculated in tier-2 capital, thereby creating motivation for the maintenance of high lending growth. The leader board of Vietcombank also shared about the orientation to restructure the development drives of the bank in the future. In particular, customer segment structure is expected to see a shift with the growth of retail segment and FDI firms reaching about 40 percent, while wholesale customer segment is expected at 11-12 percent growth. This is contributing to the cautious business plan in 2017. However, the actual results achieved by Vietcombank in the first three months of the year showed that this shift will become a growth engine in 2017. Despite being a bank that has strengths in serving large enterprises, import-export firms, and FDI firms, the growth recorded in the early 2017 of the bank did not come from these segments. According to report of VCSC, the main contribution to the credit growth of up to 8.4 percent in the first quarter of Vietcombank was the growth of personal loans, while lending to corporate customers only grew by 6.7 percent. This made a considerable contribution to the 19 percent growth of pre-tax profit in the first quarter, reaching 2.737 trillion dong. The boost in retail segment the area which has recorded strong growth in the recent time - is said to somewhat shows the bank's goal to raise the Loan to Deposit ratio (LDR) to 85 percent in the coming years from the current level of 78 percent. According to securities firms, with the upward trend of mobilisation interest rates, the interest margin of Vietcombank is predicted to be better in 2017. According to the latest forecast of VCSC, the NIM of Vietcombank is expected at 2.6 percent this year, about six percentage points higher than the 2.54 percent recorded in 2016 and 2.48 percent recorded in 2015. Meanwhile, HSC is more confident that Vietcombank's NIM will reach up to 2.8 percent thanks to the promotion of retail segment and personal lending. Developing retail segment has also become one of the targets for the bank's mergers and acquisitions (M&A) plan, as it is not a strong segment of Vietcombank. Nevertheless, the bank's management board also said that M&A is a long-term plan and the bank has not yet selected an object that fits this goal.

Hanwha Life opens office in Quang Nam 10/May/2017 Intellasia| VNS Hanwha Life Vietnam has opened a general agency office in Que Son District of Quang Nam Province, taking its total of customer service centres in the country to 86. In a release, the company said Quang Nam is a promising market in the central region. The company reported solid results last year, with premium income rising by 48 per cent. Hanwha is a subsidiary of Hanwha Group, which is among the 10 top conglomerates in Korea. http://bizhub.vn/corporate-news/hanwha-life-opens-office-in-quang-nam_286020.html

Visa's financial literacy programme enters sixth instalment 10/May/2017 Intellasia| VIR Practical Money Skills, a financial literacy programme for students, is back for its sixth instalment, and is this year asking students to submit photographs that depict their daily struggles in managing their money. The programme has been run annually since 2012 by Visa and the Central Committee of Vietnam Students' Association (CCVSA), with support from the State Bank of Vietnam. The launch of the 2017 programme comes just after the Vietnamese government announced an upcoming major overhaul of the economy: by 2020, the majority of financial transactions in Vietnam are to be completed electronically. However, according to a recent survey conducted by Visa, only half (51 per cent) of Vietnamese respondents gave themselves a pass (6-10 points) on their knowledge of personal financial management. According to Sean Preston, Visa country manager for Vietnam, Cambodia, and Laos, this is the issue that the programme is seeking to address. "Vietnam's economy has been changing rapidly in recent years, with more people now moving into the country's middle and upper classes," Preston said. "As the Vietnamese government seeks to reshape the economy in the next three years, it's vital that consumers have a solid grasp of how to manage their finances whether it's simple things like creating a weekly budget, or more complex issues like taking out a loan for a vehicle or property." "By working with students across Vietnam, we are working with the next generation of community leaders, entrepreneurs, and mothers and fathers, to make sure that they have the kinds of skills that are necessary to thriving in the new economy." This year's programme consists of two main phases. The first phase starts on May 9, 2017 and tasks students with telling stories about personal financial management through captioned photos. This could include everything from photos depicting struggles with the weekly shopping list, to not overspending when socialising with friends, to saving money for a holiday. The best 50 entrants will be selected to participate in the second round of the programme which takes place on September 1. Six exhibitions and financial literacy seminars will be held in six cities with the largest number of participants. To conclude the programme, the finalists will stand to win a range of exciting prizes worth up to VND15 million ($660) in Visa prepaid cards and a pair of flight tickets to Singapore the biggest financial centre in Southeast Asia. Last year, the programme was opened up to students right across the country. In 2017, Visa and the CCVSA have gone even further, drawing on CCVSA's network to open up the competition to Vietnamese students that are studying overseas. "As a leading organisation of students, we have partnered with Visa for a number of years to run this programme with the aim of helping young people develop the right mindset for their financial future. With the upcoming government plans to shift the economy, we believe this programme is a necessary investment and essential preparation for the future," Nguyen Minh Triet, permanent vice chair of CCVSA said. A range of programme resources are available on the programme's Facebook page, Instagram and YouTube to teach students the basic concepts of spending responsibly while learning to save and budget wisely. The official programme website (kynangquanlytaichinh.com.vn) continues to provide useful advice from programme mascot Pocket, together with handy financial formulas and other tools. Within the 2017 programme, Visa will also give away 5,000 copies of "The Guardians of the Galaxy" financial literacy themed comic book. The comic pairs Marvel's iconic superheroes with Visa's financial smarts, which makes learning about finance management fun and entertaining for students. The books will be given to students participating in online and offline activities initiated along the event. http://www.vir.com.vn/visas-financial-literacy-programme-enters-sixth-instalment.html

Reference exchange rate increases 4 VND 11/May/2017 Intellasia| VNA The daily reference exchange rate for VND/USD was raised by 4 VND to 22,377 VND per USD on May 11. With the current trading band of/-3 percent, the ceiling rate applied to commercial banks during the day is 23,046 VND and the floor rate 21,707 VND. The opening hour rates listed by commercial banks saw strong decreases compared to May 10. At Vietcombank, both rates went down by 15 VND to 22,685 VND (buying) and 22,755 VND (selling) per USD. Vietinbank also slashed both rates by 15 VND, buying the greenback at 22,685 VND and selling at 22,755 VND. Meanwhile, the rates at BIDV remained unchanged from May 10 at 22,700 VND (buying) and 22,770 VND (selling) per USD. http://en.vietnamplus.vn/reference-exchange-rate-increases-4-vnd/111511.vnp

Some banks still have no specific plan to organise AGM 11/May/2017 Intellasia| DTCK The annual general meeting (AGM) season of banks is gradually passing through, with the peak in April when most banks held meetings to submit to their shareholders for approval of the action plans in 2017. However, besides, some banks have not had any move. Saigonbank is one of the banks that have not yet held the AGM, despite a notice to close the shareholder list on March 27 to hold the 2017 annual meeting, which was scheduled to take place in late April. Until now, the bank has neither held the AGM nor announced the specific time. In 2016, Saigonbank was unable to carry out its plan to increase chartered capital from over three trillion dong to four trillion dong as adopted at the 2014-2015 shareholders' meeting, despite the approval of the State Bank of Vietnam (SBV). Meanwhile, Vietinbank withdrew capital from SaigonBank, reducing its ownership rate from 10.39 percent to 4.91 percent. Leaders of the State Bank used to remind Saigonbank that once the plan to increase capital was made, there must have a solution to achieve it. However, this is a challenge that the bank has not yet overcome. In spite of not being included in the compulsory restructuring list as requested by SBV, with modest charter capital scale along with limited market competitiveness, Saigonbank is forced to step up the restructuring process to survive and improve financial potential. However, with the current charter capital at just more than three trillion dong and bad debt remaining a big concern, restructuring is also a difficult issue for Saigonbank. Previously, Saigonbank was expected to merge into Vietcombank and quickly submit to the shareholder meeting for approval. However, this deal was not successful because the major shareholder of the Bank, which was HCM City's Party Committee, did not agree to merge and wanted to carry out restructuring itself. By the end of 2016, Saigonbank posted the net profit before tax (pre-provision) of over 310 billion dong, but after provisioning, the pre-tax profit was just over 174 billion dong, the after-tax profit was nearly 140 billion dong. In this context, does the Bank avoid the M & A spin? Apart from Saigonbank, some other banks have not yet held the 2017 AGM such as PVcomBank, Sacombank. In 2016, it was nearly end of June that PVcomBank conducted the meeting. Sacombank announced to delay the time to hold the AGM to May 26, instead of April 28 as originally planned. Sacombank's AGM expects the number of members of the Board of directors for the 2017-2021 term to be seven. Of which, one independent member of the board, at least half of the total number of board members must be non-bank executives and independent members of the board. The number of members of the control board is expected to have four. Sacombank's Board of directors currently has seven members, in which Kieu Huu Dung is the Chair of the Board. The Control Board has three members; Nguyen Van Ly is Head of the Board. As per the recently released resolution of Sacombank's Board of directors about candidates for the Board of directors, the Board of Supervisors for the term of 2017-2021, a series of candidates for "hot seats" have gradually appeared. The story seems to be easy to be determined but suddenly becomes "hot" when candidates are "of the same level". However, the most popular candidate that is expected to win the "hot seat" in Sacombank is Nguyen Duc Huong from LienVietPostBank. In addition, the market appeared information that a number of "heavyweight" investors want to participate in restructuring Sacombank including Novaland Group and Evercore Group Investment Fund (operating in the field of investment banking), Redsun Capital Limited (a M&A consultancy firm) and Dang Van Thanh, Chair of Thanh Thanh Cong Group (TTC), founder of Sacombank. However, on April 6, Novaland Group asked to withdraw from Sacombank's restructuring plan because of supposing that current conditions of the bank are not suitable for the Group to invest in this time. Sacombank's father, Dang Van Thanh, and Evercore Group also decided to withdraw right before the AGM, which surprised investors. As of March 31, 2017, total assets of the Bank reached 344 trillion dong, an increase of 3.3 percent. The net interest income was 1.051 trillion dong, down 15 percent year-on-year; the net interest from service activity was 382 billion dong, up 22 percent year-on-year. During the period, operating expenses hit 1.377 trillion dong, down six percent year-on-year and the bank was reversed a provision cost of 970 million dong. At the end of Q1/2017, the total pre-tax profit of Sacombank reached 309 billion dong, up 55 percent over the same period last year. The non-performing loan (NPL) ratio was 4.88 percent, down from 5.35 percent at the beginning of the year. Of which, the potentially irrecoverable debt is likely to decrease 6.6 percent to 6.6 trillion dong.

Private banks increase charter capital, state-owned banks undecided 11/May/2017 Intellasia| Vietnamnet A number of banks have announced they will raise charter capital in 2017 after receiving approval from shareholders. But all of them are private, not state, banks. VIB, VPBank, LienVietPostBank, SCB and Techcombank have confirmed the plans to increase chartered capital. Most of them plan to carry out the plan with the policy on paying dividends in shares, while others want to issue shares to specific shareholders. The plans have been supported by many groups of united shareholders. They have not received dividends for many years despite good business performance and high profits in order to carry out the plans. LienViet Post Bank's shareholders showed their support to the plan to raise charter capital from VND6.460 trillion to VND7.5 trillion at the shareholders' meeting in late March. ACB and VP Bank shareholders have approved a plan to pay dividends in shares to raise the banks' capital by VND1 trillion and VND3.294 trillion, respectively. Techcombank plans to increase its charter capital from VND8.878 trillion to VND13.878 trillion by the end of the year by issuing 500 million shares to existing shareholders. VIB considers two options, either paying 5 percent of dividends in cash and 39.6 percent in bonus shares to raise the charter capital to VND5.644 trillion; or paying dividends in cash and shares at the maximum proportion of 44.6 percent to raise the capital to VND8.185 trillion. Analysts commented that with banks' good business performance, banks' boards of directors can easily obtain consent from shareholders on the plans. In fact, banks cannot delay the plans on raising charter capital anymore as the time to apply Basel II is nearing. By the end of 2018, 10 commercial banks following Basel II on a pilot programme will have to satisfy Basel II requirements. Meanwhile, the new regulations set by the State Bank in Circular 06 and Circular 41 all mention the capital adequacy ratio. The amount of capital banks can lend to one client must not be higher than 15 percent of their stockholder equity. This means that if banks want to lend more, they have to increase capital. OCB's CEO Nguyen Dinh Tung admitted that his bank is now under pressure of raising capital to improve the CAR. OCB plans to have the CAR at 11-13 percent in accordance with Circular 41 and Basel II. While private banks are busy preparing for the capital increase plans, state-owned banks are quiet. VietinBank's CEO Le Duc Tho, who Thoi Bao Kinh Te Vietnam reporters contacted just one day before the shareholders' meeting day, said he had no information about the capital increase. In 2016, the State, the biggest shareholder of the bank, did not accept to receive dividends in shares, but demanded cash. http://english.vietnamnet.vn/fms/business/177797/private-banks-increase-charter-capital--state-owned- banks-undecided.html

Banks promote network expansion and brand synchronisation 11/May/2017 Intellasia| Dan Tri In the last 5-7 years, the orientation of moving to retail segment has been paid special attention by commercial banks. Based on the financial access habits of Vietnamese, expanding network is a prerequisite that banks have focused on, in order to enhance their presence in different localities as well as improve competitiveness. In the current integration period, domestic banks are not only competing with each other but also facing competition from foreign banks. Thus, the expansion of network remains an urgent need to gain market shares among banks. However, not all banks can expand the network, because the State Bank of Vietnam (SBV) only licenses banks which have met the prescribed documents and conditions, and actively and satisfactory met the requirements on restructuring or merger/ consolidation plans. Accordingly, to open a new branch or transaction office, banks have to satisfy numerous strict conditions such as having less than 3 percent bad debt ratio, profitable business, and assurance of safety ratio in operation and financial capacity, etc. These requirements aim to make the system healthier, respecting quality over quantity. Satisfying these above conditions, in the last two years (2015-2016), Nam A Commercial Joint Stock Bank (Nam A Bank) was one of the few banks in Vietnam to be licensed to open an addition of 17 transaction offices in key provinces such as Ninh Thuan, Dong Nai, Vung Tau, Tay Ninh, Dak Lak, Kien Giang, Can Tho, and Phu Tho, etc., gaining wide coverage in the key areas in the North, Central Highlands, South East and West of the country. Deputy general director cum Head of the bank's network development team Nguyen Danh Thiet said that expanding network is one of the most important objectives in the strategy to develop retail distribution channels of Nam A Bank, aiming to efficiently use the bank's existing charter capital. This is also the fastest way to approach customers in every area. In addition to completing the network expansion plan, in early 2017, Nam A Bank has also implemented a 100 percent synchronisation of brand image. Accordingly, the bank has renovated the image of its business units towards a new theme of "Beautiful bank Great services" with luxurious space, integrated time-saving transaction system Branch Teller waiting room VIP ATM on-site consultation from professional staff. This has helped streamline the procedures and save time for customers. Furthermore, Nam A Bank has increased its investment in technology to develop high quality products and services such as eBanking, card services and utilities, etc., with the goal to bring optimal experience to customers in transactional process as well as the tangible benefits of using products and services at Nam A Bank. Thus, regardless of local characteristics, a customer in the North will receive comprehensive financial services like what are served to a customer in the Southern or Southeastern regions, etc. Pursuing the long-term goal of becoming one of the leading retail banks in Vietnam, in 2017, Nam A Bank will reposition its brand by launching the new logo. The 25 years in operation is a sufficient time for the bank to orient a modern but friendlier image. The new logo embraces customer happiness as the core value but still inherits the existing identities of Nam A Bank

Consumer credit boom brings about opportunities for recruits 11/May/2017 Intellasia| DTCK The "Overview of consumer loan market in Vietnam: advantages and challenges" recently released by the Institute of Business Administration (University of Economics, Vietnam National University, Hanoi) shows that commercial banks and social policy banks account for 87 percent of the current consumer credit. Meanwhile, financial companies make up 12 percent and financial technology companies (fintech) reckon for one percent only. It is noteworthy that although the report mentioned lending channel from both formal and informal way such as deal, black credit, mortgages, etc., there were no official statistics. Commenting on this matter, lawyer Truong Thanh Duc, Chair of Basico Law Firm and arbitrator of the Vietnam International Arbitration centre estimated that pawn credit represented about 70 percent of the consumer credit market, while the remaining 30 percent belonged to the formal credit market. Lawyer Duc explained, in a single bank case, the court concluded the usury group must pay back nine trillion dong. "Only one case has had such high numbers, while there are thousands of pawn shops across the country. I believe the pawn shops' debt balance is definitely greater than that of finance companies", Duc said. Associate Professor Hoang Van Hai, director of the Institute of Business Administration, said that according to the research team's results, the potential value of the Vietnamese market is up to $15 billion per year and comes mainly from the targeted market with nearly 30 million people aged 20 to 59. Consumer lending in Vietnam accounts for only 5-10 percent of the total outstanding loans, while in developed countries, this rate is 40-50 percent. At SHB's 2017 annual shareholder meeting, Saigon-Hanoi Joint Stock Commercial Bank has announced its targeted profits of 100 billion dong right in 2017 from SHB Consumer Finance Company which is expected to operate officially from Q3/2017, with the chartered capital of one trillion dong. As per Do Quang Hien, Chair of SHB, the benefits of financial companies support very well the bank's retail operations and contribute significantly to commercial banks' profits because it is easier for consumer finance companies to lend than banks. Report of the Institute of Business Administration shows that financial companies are having many advantages in the market. In financial companies, lending procedures are very flexible, records are simple, disbursement is quick (taking just 15 minutes), interest rates range from 1.46 percent to 1.6 percent per month, even zero percent in some places. Experts from the Institute for Business Administration assess that consumer finance is expected to play a central role in Vietnam's transition process to an economy that is more dependent on consumption. However, Dr Ho Chi Dung, director of the Institute of Business Administration, said that necessary factors needed for banks and financial companies to "draw" customers from black credit channels are not just interest rates. "When choosing and evaluating consumer lending institutions, people are most concerned about interest rates and procedures. However, overall, they are concerned about three factors, including: policy, factors that create the sense of closeness, friendliness and the convenience of service", Dung said. Realising changes in consumer trends of the people, credit institutions are focusing more investment in developing technology and products so that the people can more easily access official consumer lending organisations. As per the research team of the Institute of Business Administration, the fourth industrial revolution with rapid technological change will connect lenders and borrowers under new technology without the need to come to transaction points. At the same time, the demand for loans in financial firms and fintech companies will boom strongly. In the future, the consumer lending market will likely change in the direction of falling interest rates, rising service quality, modern technology, convenient transactions and high security levels. Thus, consumers will have more options in using financial service providers.

Senior bank personnel gradually revealed 11/May/2017 Intellasia| DTCK The season of annual shareholders meetings (AGM) is in the final stage and in general, the top management of banks has gradually been stabilised. At the 2017 AGM held recently, Saigon Commercial Joint Stock Bank (SCB) finalised seven members of the Board of directors (BOD) for term 2017-2022, including Dinh Van Thanh Chair, two vice Chairmen including Henry Sun Ka Ziang and Ta Chieu Trung, and four members including Vo Tan Hoang Van, Chiem Minh Dung, Nguyen Tien Thanh, and Nguyen Thi Phuong Loan. In addition, SCB elected four members of the Board of Supervisors (BOS) for the term 2017-2022, including the BOS Head Pham Thu Phong, and three full-time members including Vo Thi Muoi, Tran Chan Nam, and Vu Manh Tuong. SCB's shareholders also approved the reappointment of Vo Tan Hoang Van as the general director of the bank in the new term. Similar to SCB, the 2017 AGM of Hochiminh city Development Commercial Joint Stock Bank (HDBank) held in mid-April also completed the selection of members of BOD on 2017-2022 term. The bank's Chairwoman Le Thi Bang Tam said that after considering, the BOD presented to shareholders a list of nine BOD members, including two independent members and, a list of three BOS members. These members were then approved with high creditability. Nine candidates were chosen for the selection of BOD, seven of whom were nominated by the shareholders and two nominated by the BOD and BOS. The new BOD of HDBank includes Le Thi Bang Tam, Nguyen Thi Phuong Thao, Nguyen Thi Tam, Luu Duc Khanh, Nguyen Huu Dang, Chu Viet Cuong, and Lim Peng Khoon; and two new faces Ly Vinh Quang and Nguyen Thanh Do. Quang used to hold senor positions at Techcombank, BacABank, ABBank, and HDBank, while Do previously held management position at the Ministry of Finance. On April 21st, Eximbank successfully held its AGM. In particular, all plans were approved, although some interested issues were not discussed as initially planned, such as fully withdrawing capital in Sacombank, recovering the remuneration paid to the old BOD which exceeded the limit, and dismissing the post of BOD member term 2015-2020 for the case of Cao Xuan Ninh. In fact, the AGM in 2017 of Eximbank was successful more than expected, especially when the high level management which was the cause of the failure of several previous shareholders meetings has been step by step stabilised and helped the bank operate better. Accordingly, the AGM did not elect an addition of three BOD members as planned, and the old member list was kept unchanged, including Cao Xuan Ninh. At the same time, another candidate Yukata Morisaki was elected to the BOD, replacing a member representing the group shareholders of Sumitomo Mitsui Banking Corporation (SMBC- current holder of 10.05 percent voting rights). Mirisaki was elected with 55.22 percent of votes. The document released on April 20th of Eximbank also showed that SBV has approved in writing the election of Mirisaki as the bank's member of BOD in the 6th term. Morisaki is currently deputy general director cum Chief of the New Eximbank project. In addition to the senior personnel issue, Eximbank also needs to settle other outstanding issues in the near future, including the recovery of debts from the inspection conclusion of SBV. According to audited financial statement, as of December 1st 2016, Eximbank recorded an accumulated loss of 461.4 billion dong. Thus, based on Eximbank's charter, the bank cannot pay dividend for the financial year 2016. In addition, shareholders requested Eximbank to recover the 52 billion dong excessive remuneration paid to the previous BOD and BOS members in three years (2013-2015) in order to partially offset the accumulated loss. The bank's BOD asked to use 10 billion dong to pay remuneration to these members, but was not allowed by the authority. BIDV's 2017 AGM initially expected to officially introduce a new Chair, after Tran Bac Ha retired in April 2016. However, among the 10 names nominated for the bank's BOD on term 2017-2022, there are eight names from the old BOD list, including Tran Anh Tuan (temporarily continues to chair the new BOD), Phan Duc Tu, Tran Thanh Van, Nguyen Huy Tua, Ngo Van Dung, Nguyen Van Loc, Le Thi Kim Khuyen, and Phan Thi Chinh; and two new names including Bui Quang Tien and Le Viet Cuong. The bank's BOS remains unchanged in term 2017-2022, including Vo Bich Ha, Nguyen Thi Tam, and Cao Cu Tri. The market is currently waiting for the senior personnel changes of Sacombank. According to the recently announced resolution of the bank's BOD and BOS term 2017-2021, candidates for the hot positions have gradually been revealed. In addition to the familiar names who are current leaders of Sacombank such as the Chair Kieu Huu Dung, vice Chair Nguyen Mien Tuan, Nguyen Van Cuu, or Nguyen Xuan Vu, the list of candidates included two names who closely associated with LienVietPostBank brand Nguyen Duc Huong and Nguyen Thi Bich Hong (candidates for BOD's independent members), in which Huong is a highly appreciated name. Sacombank's candidates for the BOS includes Nguyen Thi Thanh Mai, Le Van Tong, Ha Ton Minh Hang, and Tran Van Triet. According to information, Sacombank will hold its 2017 AGM on May 26th, after postponing the AGM scheduled on April 28th due to incomplete preparations for the personnel of BOD and BOS on the new term.

Reference exchange rate up 4VND 12/May/2017 Intellasia| Doi song phap luat The daily reference exchange rate for VND/USD increased by 4 VND to 22,377 VND per USD on May 12th. Commercial banks made slight adjustment on VND/USD exchange rate. Specifically, at Vietcombank, the rates are 22,675 VND per USD (buying) and 22,745 VND per USD, down by 20 VND compared to May 11th. Vietinbank also cut both rates by 15 VND, buying at 22,670 VND per USD and selling at 22,740 VND per USD. Meanwhile, the rates at BIDV fell by 15 VND, reaching 22,670 VND (buying) and 22,740 VND (selling) per USD.

Credit growth outpaces deposit 12/May/2017 Intellasia| BizLive As per the latest report of the National Financial Supervisory Commission (NFSC), it is estimated that by the end of April 2017, credit increased about 5.2 percent (compared to 4.2 percent in the same period last year). Credit in April continued to achieve good growth following the trend of the first quarter. Also in Q1/2017, the group of state-owned commercial banks led with the growth rate of 4.9 percent. Many commercial banks boosted credit right in Q1 such as LienVietPostBank (11 percent), Kienlongbank (10.3 percent), SCB (nine percent), ACB (8.3 percent), and Vietcombank (8.3 percent). Credit shifted towards increasing short-term credit ratio, and reducing medium and long-term credit ratio. It is estimated that the short-term credit ratio out of the total credit swelled from 44.9 percent (December 2016) to 45.5 percent (March 2017). While medium and long-term credit in April 2017 was estimated to hike 4.3 percent, credit organisations actively restructured lending and depositing terms to reduce the ratio of short-term capital for medium and long-term loans. The credit structure by type of currency was maintained stably. Of which, credit in dong accounted for 91.7 percent. The capital mobilisation in the first four months of 2017 was slower than the same period. It was estimated that as of the end of April 2017, the capital mobilisation improved 3.7 percent (compared to 4.6 percent in the same period of 2016). Of which, the mobilisation in dong was estimated to surge 3.6 percent (compared to 5.8 percent in the same period of 2016). The slower deposit growth than credit growth resulted in the slight increase in the credit/deposit ratio from 86.3 percent to 87 percent. Regarding the system's liquidity, NFSC said in April 2017, the liquidity of the banking sector showed signs of local difficulties. Though interbank interest rates were still relatively high, they decreased slightly compared to the end of March 2016 (down about 0.1-0.2 percentage points). Meanwhile, on OMO, the State Bank net injected to support liquidity through mortgage channel. As of April 24, SBV net injected about 27 trillion dong. As per NFSC, the cause of fluctuations in the money market in the first months of 2017 was mainly due to high demand for credit right from the beginning of the year. By the end of April 2017, credit rose about 5.2 percent, the highest rate in five recent years. Meanwhile, the growth rate of mobilisation was about 3.7 percent. At the same time, some commercial banks having high medium and long-term lending ratio needed to restructure capital to meet the requirements of Circular 06/2016/TT-NHNN. On interest rates, in market 1, after the deposit rates increased by 0.1-0.5 percent in some commercial banks from March to April 2017, the market has not recorded any remarkable adjustments. At the end of April, the average deposit rates for over 12-month terms ranged around seven percent. NFSC said the stabilisation of interest rates in the remaining months of 2017 will face more challenges than 2016 due to increased expectations in inflation and exchange rate when the Federal Reserve intends to raise interest rates at least three times this year. Meanwhile, that bad debt has not been thoroughly treated continues to be a major barrier to lower interest rates. As a result, deposit rates suffered from pressure to increase more than last year (in 2016, the average deposit rates increased an average of 0.37 percentage point). In addition, credit institutions continued having to balance their capital to ensure the roadmap on reduction of short-term capital for medium and long-term loans to 40 percent since January 1, 2018. To stabilise lending rates as in 2016 (the average lending rate increased only 0.1 percentage points), NFSC said that the bad debt settlement and the restructuring of the credit institutions system should be strengthened. Recent policy moves show the government's strong determination to adopt a draft law to support the restructuring of credit organisations and to improve the personnel structure for this process. In addition, it is necessary to keep the interest rate difference between US dollar and dong at reasonable level: the average inflation is expected at four percent, the exchange rate increase is expected at 2-4 percent, the current deposit rate (more than 12 months) ranging around seven percent is still good for dong. Meanwhile, the interest rate difference between US dollar and dong is about 5.2 percent; borrowing in dong is still more preferable.

Banks again raise deposit rates 12/May/2017 Intellasia| Tri Thuc Tre After some banks massively offered high deposit rates by issuing certificates of deposits on medium and long terms to improve the structure of lending fund, some banks have recently made some moves to raise deposit rates. In particular, on its website, PVcomBank stated that if customers deposit from 30 million dong to less than 100 million dong, they will enjoy an additional interest rate of 0.1 percent per annum compared to the listed rate. This additional rate is up to 0.2 percent per annum for deposits from 100 million dong to less than 500 million dong, 0.3 percent per annum for deposits from 500 million dong and more. However, this programme is only applicable to new customers opening savings books from six months and more, and inapplicable to 12-month term. VietBank is also launching an online savings programme with interest rates of up to 8 percent per annum on 36-month term. The notable point of this product is that the interest rate is 0.1 percent higher than the deposit rates at the counter. As noted at some other banks, although banks have not raised deposit rates on terms of less than six months to the ceiling level, they attract customers with a series of attractive promotions, instant gifts and lucky draws on maturity, etc. Currently, not only individuals but large enterprises still deposit their idle funds at banks for profit, as this is considered a safe channel to keep capital with stable interest rate. In addition, since the difference between short-term and long-term deposit rates is currently applied by banks at around 2-3 percent, customers tend to shift to long-terms to enjoy interest rates of 7-7.9 percent per annum. Leader of a bank in the South said that the reason banks applying higher long-term deposit rates is to take initiative in the medium and long-term credit business plan. He added that since the credit growth has been high from the beginning of the year, the need to mobilise capital of some bank is real, but his bank has adjusted and applied suitable interest rates to attract depositors but not put pressure on the interest rate increase by encouraging and giving promotions to customers depositing money on long terms. Most banks are currently applying long-term deposit rates at much higher levels than the short-terms from one to six months. According to some financial experts, in the current market situation, people having idle money who wish to save and do not like to take risks should deposit in banks to enjoy the highest interest rates, because the interest rate level in 2017 is forecasted to be stable and not see significant changes.

NPL ratio of many banks continues to increase sharply 12/May/2017 Intellasia| BizLive After a long time struggling with difficulties, it can be said that Q1/2017 marked the spectacular return of the banking sector when a series of banks "jubilantly" reported soaring profits, even doubled or tripled profits from the same period last year such as Techcombank or Eximbank. Some other "giants" also announced to earn trillions of dong profits such as Vietcombank, VietinBank, BIDV, VPBank, etc. However, along with sharply increased profits, bad debt continued to be a problem for bankers. Consolidating data from financial statements of 10 major banks in Vietnam including Vietcombank, VietinBank, BIDV, ACB, Techcombank, MB, SHB, VPBank, Sacombank and Eximbank, we can see that the total bad debts of these banks in the first quarter of the year amounted to 59.375 trillion dong, up 9.6 percent year-on-year. Of which, 8/10 banks had the non-performing loan (NPL) ratio to increase from the beginning of the year, including Vietinbank, ACB, Techcombank, MB, SHB, VPBank, Eximbank, etc. Meanwhile, the total debt in group Five, or potentially irrecoverable debt, also increased slightly by two percent, to 29.501 trillion dong. Seven out of ten banks have debt in this group to swell including Vietcombank, VPBank, Techcombank, Eximbank, MB, and SHB. With the NPL ratio amounting to 4.89 percent of the total outstanding loan, Sacombank was the leading one in the NPL ratio although this figure decreased from the 5.35 percent at the beginning of the year. Regarding absolute figure, despite the slight decrease from the beginning of the year, Sacombank was still one of the leading banks in bad debt with 10.083 trillion dong. Of which, the bank's potentially irrecoverable debt stood at 6.602 trillion dong, equal to 65.5 percent of the total bad debt. VPBank was the bank having the second highest NPL ratio with 3.5 percent of the total outstanding loan, up from the 2.91 percent at the beginning of the year. The reason for the bank's NPL ratio to exceed the safety level came from the "chicken laying golden egg" i.e. FE Credit. This company generated large profits for VPBank but was also the reason for the bank's increased NPL ratio. As per the bank's report on March 31, 2017, VPBank was having 3.361 trillion dong of bad debt, up 47.3 percent from the beginning of the year but was still in the safe range of 2.86 percent of the total outstanding loan (compared to 2.03 percent at the beginning of the year). However, the consolidated report showed that the bank's NPL ratio amounted to 5.326 trillion dong, up 26.6 percent from the beginning of the year. Of which, sub-prime debt improved 29 percent to 3.013 trillion dong, the doubtful debt increased 22.3 percent to 1.192 trillion dong and the irrecoverable debt swelled 24.9 percent to 1.120 trillion dong. Eximbank ranked the third among leading banks in NPL ratio. As of the end of Q1/2017, the bank was having more than 2.589 trillion dong bad debt, up 1.1 percent only from the beginning of the year. However, due to negative credit growth, the bank's NPL ratio increased to three percent, compared to 2.95 percent at the end of 2016. Regarding absolute figure, 9/10 surveyed banks had the NPL ratio to improve. Of which, Sacombank had more than 10.083 trillion dong bad debt, while the two giants including Vietinbank and Vietcombank had 7.017 trillion dong and 7.376 trillion dong of bad debt respectively, up 6.3 percent and 17.4 percent from the beginning of the year. Earlier, in the first draft of the Law on credit organisations' restructuring and bad debt settlement support, the State Bank of Vietnam (SBV) supposed that after four years implementing the restructuring scheme of credit organisations as well as after VAMC was born, the restructuring of credit organisations basically achieved certain results. Accordingly, as of the end of December 31, 2016, the NPL ratio of the system of credit organisations was 2.46 percent. However, the restructuring process of credit organisations showed that the system of credit organisations still have many weaknesses. Specifically, the business performance of credit organisations is not high as business operations face many difficulties, large pressures on bad debt settlement and risk provisioning. Though the NPL ratio was controlled at less than three percent, if including the amount managed by the Vietnam Asset Management Company (VAMC), the NPL ratio on the table and the potentially irrecoverable debt, the ratio may amount to 8.86 percent of the total outstanding loan. The State Bank also assessed that the bad debt settlement has achieved satisfactory results initially but the law on settlement of bad debt as well as collaterals remained inadequate, lacking specific mechanisms for VAMC to operate.

Banks remain hesitant about divesting despite hundreds of billion dong profits 12/May/2017 Intellasia| Bao Dau Tu Banks have confirmed that if they make successful divestments, they will earn a large amount of money. For example, Nghiem Xuan Thanh, Chair of Vietcombank (coded VCB), said the divestment from MB and Eximbank may bring about a profit of about 700 billion dong. Currently, VCB owns shares in five credit organisations, so the bank has to divest from three credit organisations in accordance with Circular No. 36/2014/TT-NHNN on limits, safety ratios in the operation of credit organisations. VCB leaders said the bank is holding shares in three financial organisations with a total amount of 300 billion dong, but due to low liquidity, it has not been able to divest. Earlier, Vietinbank divested its capital from Saigonbank to less than five percent as regulated. The divestment pressure from the major shareholder made it difficult for SaigonBank to enhance financial capacity (the capital increase plan to four trillion dong has not completed). Le Van Quyet, CEO of Eximbank also said the bank may earn more than 500 billion dong from the successful divestment from Sacombank with 13,500 dong per share. Quyet said Eximbank expects to withdraw the capital held in Sacombank but has not found suitable investors to transfer the entire 8.76 percent stake in this bank. With the current situation of Sacombank, Quyet said it is difficult to determine the specific time to transfer the aforementioned capital to other partners, so Eximbank registered to gradually sell on the exchange. Bank stocks are suffering great pressure from the capital divestment following the roadmap of Circular 36/2014/TT-NHNN. The total number of bank shares expected to be brought to the market in the upcoming time is expected to be very large, while the demand for bank shares remains limited. Meanwhile, investors, including existing shareholders are no longer interested in paying more money to purchase additionally issued shares. Especially, in small-scale banks, the capital mobilisation is even more difficult, but the price for additionally issued shares cannot be lower than the face value. As per the assessment of Andy Ho, CEO of VinaCapital Bank, bank stocks in the current context are hard to rebound. However, for large banks with feasible business results and good growth potential such as Vietcombank, BIDV, MB, Vietinbank, etc., shares have always been interested by foreign investors. However, the problem is whether "room" in the finance and banking sector can be further loosened or not. Besides, the finance and banking sector needs to quickly remove the cross-ownership, be transparent in operations, and gradually accelerate the bad debt settlement process. Dr Nguyen Van Thuan, Dean of the Finance-Banking Department (HCM City Open University) said in order to solve the cross-ownership situation in the banking sector, it is necessary to be more aggressive in the capital divestment following the regulation of Circular 36/2014/TT-NHNN. However, Thuan said to achieve this, there needs to have stronger sanctions to force banks to solve resolutely.

Enterprises should be cautious when borrowing foreign capital 12/May/2017 Intellasia| Doanh Nhan Sai Gon The USD/VND exchange rate is showing signs of a faster-than-expected adjustment, which will lead to future exchange rate risk pressure to foreign currency borrowers, especially when numerous USD loans are maturing in the near future. According to the listed reference exchange rate of the State Bank of Vietnam (SBV), the central rate as of May 8th 2017 was 22,358 dong per USD, equivalent to a 0.9 percent rise compared to the early year. The listed exchange rates at banks remained fairly stable. Specifically, the buying/selling rates at Vietcombank on May 8th 2017 were respectively 22,710 and 22,790 dong per USD, equivalent to a 10 dong reduction for buying rate, while there was no change of selling rate compared to the beginning of the year. It showed that reduction has been narrowed down compared to the first four months of the year. Notably, the central rate has been adjusted faster. In April alone, the USD/VND reference rate was raised by 74 dong, while it was 43 dong in January, 30 dong in February and 44 dong in March. Meanwhile, the USD on the international market is still in the correction phase. The USD Index has continued to drop from the high level of 101 in early April to the current 98.5, marking the lowest level in the last six months. Thus, the index which measures the power of the greenback has again fallen back to the trading zone shortly after Donald Trump won the presidency. Obviously, the policies of the US president in the recent time seem to have reduced expectations of investors on the prospect of "making America great again". The converse movements of the USD in the domestic and international market are noteworthy. SBV seems to expect to actively raise the exchange rate in a flexible manner to avoid shock in the coming period, especially when the exchange rate pressure in the last six months will be further increased. The basic USD interest rates were kept unchanged at 0.75-1 percent after the meeting of the US Federal Reserve (Fed) on May 3rd. However, it is expected that the Fed will raise interest rates by at least 0.25 percent and the USD at that time may sharply appreciate and put pressure on the domestic exchange rate. In addition, the USD/VND exchange rate in the domestic is also affected by other internal factors. The trade deficit in April continued to be recorded at 800 million USD, marking the third consecutive month of trade deficit (over two billion USD in February and 1.1 billion USD in March). In total, the trade deficit in the first four months reached up to 2.73 billion USD, equivalent to 4.5 percent of the total export turnover, much larger than the expected target of 3.5 percent set for year 2017. The rising trade deficit shows that the pressure which the foreign currency demand for imports put on exchange rate is inevitable. The credit growth rate as of late April was 4.68 percent over the beginning of the year, much higher compared to the 3 percent in the same period of 2016. The movements in the early months of the year pointed out that lending growth in foreign currency has always surpassed that in VND. Thus, the foreign currency demand for lending has also risen. As the imports grow fast, the need to borrow foreign currency of importers certainly will increase. Meanwhile, exporters have also taken advantages to borrow foreign capital from the early year because foreign currency lending will be stopped by the end of the year, according to regulations. According to the general Statistical Office, the Foreign Direct Investment (FDI) registered in the first four months of the year developed by 5.3 percent in the number of projects but fell by 4 percent in registered capital compared to the same period of 2016. Meanwhile, the FDI disbursement in the first four months reached 4.8 billion USD, just equivalent to a 3.2 percent increase compared to the same period of 2016. With the signals of exchange rate being under much pressure, commercial banks in the recent time have actively purchased foreign currency and strengthened their positive foreign currency status, which has further increased USD demand. The initiative to increase reference rate of SBV may also help the agency acquire more USD from banks and increase VND supply. With low GDP growth in the first quarter and much pressure on interest rates in the early months of the year, increasing VND supply will help stabilise interest rates and stimulate lending activities, thereby positively influence the economic growth in the remaining time of the year. Since the central rate has increased by nearly 0.9 percent since the beginning of the year, the room to adjust in the remaining time of this year is still significant. The exchange rate in the near future will be under much pressure when the USD rebounds as the Fed may raise interest rates at the meeting in June. The Fed still has two more times to increase interest rates as planned earlier this year. The foreign currency loans will continue to mature from now to the end of the year and exporters cannot borrow USD unless there is an extension policy. In addition, the Official Development Assistance (ODA) of Vietnam from July 2017 will be limited as the concessional loans may be terminated and Vietnam must convert to commercial loans at market interest rates.

SBV promoting private sector investment for green growth 12/May/2017 Intellasia| VN Economic Times "Promoting Investment of the Private Sector for Green Growth via the Banking System" conference held by central bank and Macroeconomic Reforms/Green Growth Programme of the Vietnam-German Cooperation on May 10. The State Bank of Vietnam (SBV) and the Macroeconomic Reforms/Green Growth Programme of the Vietnam-German Cooperation organised a conference on May 10 on "Promoting Investment of the Private Sector for Green Growth via the Banking System". The conference was held within the framework of the Macroeconomic Reforms/Green Growth Programme, implemented by GIZ Vietnam on behalf of the German Federal Ministry of Economic Cooperation and Development (BMZ). In order to carry out the National Green Growth Strategy and National Action Plan on Green Growth for the 2014-2020 period, the SBV Governor had earlier promulgated Directive No.3 in 2015 on promoting green credit and the management of social and environmental risks in credit granting activities and Decision No.1552 in 2015 setting out the action plan for the banking sector to carry out the National Green Growth Strategy to 2020. The conference was another step following numerous efforts by the SBV to contribute to channeling investments from the private sector through the banking system to support achievements in transforming the national economy towards being greener and more socially and environmentally sustainable. In her opening address, SBV deputy Governor Nguyen Thi Hong emphasized the decisive role of the banking system in "greening" investment capital flows to the economy and in credit risk management towards green growth. "The two most important issues are resources mobilisation and the development of credit programmes with appropriate targets in line with the criteria for green and environmentally-friendly projects," she said. For his part, Dr Michael Krakowski, Programme director and Chief Technical Advisor of the Macroeconomic Reforms/Green Growth Programme, said the programme is committed to actively supporting Vietnam's central bank "to develop an appropriate policy framework for green investment and green financial products and to channel domestic and international funding sources through the finance and banking system towards green investments, especially those from increasing global climate and green funds, while at the same time bolstering the cooperation with the SBV to carry out Vietnam's National Green Growth Strategy." Participants at the conference included experts from the SBV, officials from commercial banks and financial institutions, line ministries, cities and provinces that have implemented green activities to some extent, and experts from international organisations and key green GIZ programmes. It was an opportunity for them to discuss the current status of and perspectives on international green funding sources and on the financial needs for green growth in Vietnam. Participants were also informed by representatives from the central bank on the very first important results that lay the foundation for the whole process of developing a framework for green finance green banking policies and products, including pilot green credit programmes, a green project catalogue, social and environmental risk management guidelines, and green credit reporting regulations. These are the initial outcomes achieved by SBV in cooperation with development partners, an active and effective contribution of which is from the Macroeconomic Reforms/Green Growth Programme. http://vneconomictimes.com/article/banking-finance/sbv-promoting-private-sector-investment-for-green- growth

Why are there so high numbers on salary in banks? 12/May/2017 Intellasia| Tri Thuc Tre Recently, many banks have released Q1/2017 financial statements showing unbelievably high salary and bonus to employees. Such banks as BIDV, VietinBank, Vietcombank, VPBank, Techcombank, VIB have surpassed 20 million dong per person per month, even more than 25 million dong per month. Every outsider adores the numbers and wish to hold the positions of the persons named. However, insiders just sighted as those numbers just appeared... in the dream. The suffering of bankers need not remind but the society has now understood. They are subject to pressure on assigned targets, time and operational, legal risks. Even, some people say banking is a very dangerous profession. In addition, for that reason, it is normal for them to receive higher salary than other industries. However, there is another perspective on banks' statements about staffing costs that are not known to everyone. Apart from some banks that specified employees' income in their financial statements, the vast majority of banks still only stated the amount paid to staff and official employees and let people self- calculate. Consulting a leader of a bank considered to offer the highest salary in the system, he said, figures on the statements are just numbers on books, while the real salary of employees is much different. He explains, firstly, the salary on the statement is the average salary, which includes both the salary of leaders and that of new employees, so it is impossible to say working in Vietcombank or VPBank will earn 25 million dong per month or people from SeABank, MaritimeBank will only enjoy the salary of 12-15 million dong. Secondly, the salary list for labourers that banks work out is to pay for all labourers working there, including both official staffs and collaborators. However, the financial statement only records official employees. Therefore, in any bank with a large number of collaborators and temporary employees, the cost is largely increased. "I know that some banks have 20-30 percent of probationary labourers and collaborators, they still have to pay these labourers but do not add to the total workforce, resulting in high costs while the denominator to divide income is small, resulting in very high average income", he said. Third, many banks have a very large number of experts and these experts have very high annual salary, which may amount to billions of dong per person. Along with that, leaders from branch directors above also enjoy large salary. Not to mention the number of leaders of departments and regions, branch leaders alone may amount to hundreds of people. Even if including transaction offices, the number of leaders may amount to thousands of people. However, their salary is also included when calculating employees' salary, resulting in inaccurate calculation of employees' income. In addition, this person once again affirms that it is not accurate to just look at labour costs to calculate banks' wages. Those figures are for reference only.

Insurance market abuzz with M&A 12/May/2017 Intellasia| VIR As the trend among foreign insurance companies to acquire 100 per cent ownership over insurance companies progresses at a stable pace, the Vietnamese insurance market expects to witness several major brand name changes. "Mergers and Acquisitions (M&A) in the insurance industry, life and non-life alike, are not limited to foreign markets and will spread to Vietnam as well," commented an expert in the field. According to 2017 insurance market forecast reports, M&A remains an important goal as insurance companies are seeking for different ways to grow. "On the European insurance markets, there have been rumours of big insurance brands to be bought out soon. There has yet to be a definitive move to confirm these rumours, since the information only aims to examine the market's reactions. However, Asia seems a likely target for M&A," said an expert. According to this expert, a company can consider entering a new market by forming a subsidiary or building a partnership with local enterprises. Certain markets like China or India have encouraged M&A activities in this field by raising the foreign direct investment (FDI) limit in the sector. A few years ago, entering the insurance market by forming partnerships with local enterprises, especially banks and conglomerates, was a common trend among insurance firms in Vietnam, mainly in the life insurance segment. However, Vietnam's current rising insurance market is also opening new investment paths for foreign financial and insurance corporations. Foreign corporations making an initial capital contribution and then buying up all the local enterprises' shares after a few years to turn the company into a 100 per cent foreign-owned entity has become a new trend. The insurance market has witnessed similar cases recently, like the acquisition of Sun Life Vietnam or Aviva. Experts forecast this trend to continue. At present, there are a few rumours that a Thai insurance group is negotiating to buy shares from some of its Vietnamese partners. Another type of M&A in the insurance industry comes from the corporate or regional level. These transactions have certain influences on the development strategy of local branches, including those in Vietnam. "Buying brands with small market shares and slow development then investing to rebuild and renew the business and eventually selling when the time comes is a common trick of the trade for many financial groups. This trend is not only popular in Vietnam but also in other markets," said an expert in the field. Commenting on M&A trends in the insurance industry, a CEO of an insurance company said that the above trend has become more fashionable than the old joint venture method in the life insurance sector because of the latter's inconspicuous results. In the non-life insurance segment, foreign financial giants remain enthusiastic in investing in insurance companies with great market shares in Vietnam. For a domestic insurance company having more foreign investment equals to having more opportunities to expand business activities and accessing key technical support. On May 5, Petrolimex Joint Stock Insurance Company (PJICO) has signed a contract selling 20 per cent of its shares to Samsung Fire & Marine Insurance Co., Ltd (SFMI), a leading insurance company in South Korea, at a price of $1.32 per share and $23.4 million altogether. According to its first quarter financial report in 2017, PJICO's revenue reached $26.4 million, an increase of 8.5 per cent compared to the same period in 2016. The company's pre-tax profit was $1.8 million, 31 per cent higher. At the end of the first quarter of 2017, PJICO's total asset value and chartered capital were $184.8 million $31.2 million, respectively. After the M&A, Petrolimex remains the biggest shareholder, possessing 40.95 per cent of PJICO's chartered capital. SFMI, the strategic shareholder, holds 20 per cent of the capital. Other big shareholders of PJICO are Vietcombank (8.03 per cent) and Vinare (7.03 per cent). http://www.vir.com.vn/insurance-market-abuzz-with-ma.html

MB, Experian sign cooperation agreement 12/May/2017 Intellasia| VNS The Military Commercial Joint Stock Bank (MB) and Experian, an Ireland-based global information services company, signed an agreement on Tuesday to carry out a Credit Risk Modelling project for Basel II. Under the contract, Experian will provide consultancy and teach advanced methodologies, including developing software to measure credit risk in accordance with Basel II; helping complete credit risk estimates under the Internal Rating-Based (IRB) method; and helping MB put the system into operation by 2019. Basel II is an international business standard that requires financial institutions to maintain enough cash reserves to cover risks incurred by operations. The Basel accords are a series of recommendations on banking laws and regulations issued by the Basel Committee on Banking Supervision (BSBS). Basel II improves on Basel I, first enacted in the 1980s, by offering more complex models for calculating regulatory capital. Essentially, the accord mandates that banks holding riskier assets should be required to have more capital on hand than those maintaining safer portfolios. It also requires companies to publish both the details of risky investments and risk management practices. Speaking at the signing ceremony, Le Cong, vice-chair of MB, said the bank has identified the Risk Management Platform as one of the two important areas in its development strategy for the 2010-15 and 2017-21 periods. "We have implemented many solutions to continuously improve our risk management capacity and meet the business development and compliance requirements of the State Bank of Vietnam," Cong said. MB is among the 10 commercial banks chosen by the central bank to carry out the pilot phase of Basel II in the 2014-17 period. The bank has upgraded its operations, a compulsory requirement, making its banking operations safer and more efficient. Nick Boyle, executive director of Experian Southeast Asia, said MB is one of the top banks in Vietnam, and it will carry out the best international practices and get Basel II accreditation by 2020. Determined to launch Basel II successfully, MB has been perfecting its management model by applying international norms and practices to change its approach towards risk-based business decisions in areas such as operational management, risk management model, risk management policy framework, measurement tools, and effective risk management. http://bizhub.vn/banking/mb-experian-sign-cooperation-agreement_286085.html

HSBC Vietnam launches Touch ID for corporate clients 12/May/2017 Intellasia| VNS HSBC Bank (Vietnam) Ltd (HSBC Vietnam) has officially launched Touch ID, a fingerprint recognition technology enabling corporate clients to easily and securely access their accounts to view account balances and recent transactions with the HSBCnet Mobile app. Nguyen Thi My Hanh, head of Global Liquidity and Cash Management of HSBC Vietnam said the bank had pledged to invest $2.1 billion into digital transformation by 2020 and it was on track to achieve that goal. The Touch ID log-on facility, compatible with Apple mobile devices, is currently available for corporate clients of HSBC in Vietnam. The function will allow clients to view account balances and recent transactions with greater convenience and safety, wherever they are in the world. HSBC's introduction of Touch ID is part of the company's long term digital development strategy. In late March, HSBC Vietnam signed a cooperation agreement with Vietnam's Customers Department to launch e- customer payments that allow HSBC customers to experience a more convenient customs payments process online. This follows a partnership with the Department of Taxation to launch an online tax payment platform in December 2015. http://bizhub.vn/banking/hsbc-vietnam-launches-touch-id-for-corporate-clients_286081.html

Corporate

Business Briefs May 10, 2017 10/May/2017 Intellasia | * VPBank and the Small and Medium-sized Enterprises (SMEs) Development Fund under the Ministry of Planning and Investment signed a framework agreement last week to help SMEs access government funding sources with interest rates ranging from 5.5 percent to 7 percent per year. * The Hochiminh Stock Exchange has announced to put Hoang Anh Gia Lai Company (HAG) and Hoang Anh Gia Lai Agricultural Company (HNG) on the warning list from May 12 over their losses in 2016. HNG has total chartered capital ofVND7.6 billion with 70.45 percent of it owned by HAG. * Vingroup Company (VIC) and Truong Thanh Furniture Corporation (TIF) last week signed a deal in which the former will place orders with the latter to produce wooden products with a total value 'of VND16 trillion within five years from the date of signing. The products provided by TIF include exterior and interior furniture, wooden flooring and other products which will be used for VIC's residential development projects in the country, according to the stock market news website at vietstock.vn. * Rang Dong Light Source and Vacuum Flask Company (RAL) plans to spend VND520 billion on investment in the 2017-2022 period, including VND100 billion for 2017 to upgrade production lines. It will also issue 345,000 employee stock ownership plan (ESOP) shares to its staff in the last quarter of this year. The shares are not transferrable within five years. * Siam Brothers Vietnam Company (SBV) will float 20.5 million shares on the HCM City exchange on May 16 at the reference price of VND40,000 each. * Dang Huynh Uc My, a board member of Thanh Thanh CongTay Ninh Company (SBT), has registered t~ buy three million SBT shares to raise her ownership from 1.5 percent to 2.7 percent. * Nguyen Thi Minh Thu, deputy general director of SIMCO Song Da Company (SDA), has registered to sell over 1.3 million SDA shares, or a 4.9 percent stake, from now to June 6. * Hanoi-Hai Duong Beer Company (HAD) has announced May 12 as the ex-dividend date for shareholders to receive a 2016 final round dividend of 15 percent in cash. * Quang Ninh Construction and Cement Company (QNC) has got approval to float an additional 6.7 million shares on the Hanoi exchange

The many tastes of M&A: the happy unions, the constant fights and the arranged marriages 10/May/2017 Intellasia| VIR Mergers and Acquisitions (M&A) usually start with friendly handshakes, but underneath the friendly facade there are several intense battles to manipulate enterprises. These different shades of the game make up a diverse M&A spectrum. Friendly M&As When M&A transactions are initiated by friendly handshakes, the results are usually positive: rebirth or rapid development of enterprises and satisfying smiles from all involved parties. In a transaction in May 2009, Eland Asia Holdings Pte., Ltd (Eland) from Singapore, a subsidiary of EL International Ltd from South Korea, spent $5.9 million on acquiring 30 per cent of Thanh Cong Textile & Garment Investment Trading Joint Stock Company (TCM)'s stocks. From the beginning, Eland had announced its plan to increase its holdings in TCM,. Once the deal was struck, together with increasing its members in TCM's board of directors, Eland was active in supporting TCM's business activities, and add TCM to its production chain. As a result, TCM's revenue and profit escalated in the following years. In its annual general meeting on April 7, TCM agreed to lift the foreign ownership limit entirely to assist Eland in raising its holding to become the controlling shareholder after eight years of effective investment. This fiscal year, TCM expects revenue to continue soaring to $145.9 million and after-tax profit to $7.8 million, 54 per cent higher than that of 2016. Another story of a successful friendly M&A is the merger between two securities companies MB Securities Corporation (MBS) and VIT Securities Corporation (VITS) to form MB Securities Joint Stock Company (MBS). This transaction was the pioneer merger deal among securities companies for later restructuring. The merger helped MBS do away with its accumulated losses, improve its financial situation, expand its assets and accounts, and to eventually be listed at the beginning of 2016. Three years after the merger, MBS has been continuously developing and became one of the five companies with the greatest brokerage market share in the Vietnamese stock market. Both cases of MBS-VITS and Eland-TCM are emblematic of friendly M&As, with agreement from both sides. That the involved parties proceeded to merge or one party bought shares from the other's big shareholders or bid publicly to aim for takeover or replace the board of directors in peace is considered a happy ending in the world of M&A. These transactions satisfy both the seller and the buyer, promising a new chapter for their enterprises. The arguing couples As capital flows become easier, enterprises are more likely to become targets for M&A. However, not everyone likes to be targeted. When the big long-time shareholders cannot find mutual understanding with the new ones, a ruthless fight for control ensues. For example, at Phuong Nam Cultural Corporation (PNC), there have been constant disagreements between shareholder groups and the board of directors in recent years. In 2016, two general shareholders' meetings were concluded with very little to show, as almost every proposal was vetoed by the sides vying for control. In the aftermath a few bigger shareholders opted out, transferring their shares to new investors, yet the arguments showed no signs of stopping. In mid-February this year, Truong Phat Business Development JSC and Thanh Vinh Business Development JSC (a new group of shareholders possessing more than 47 per cent of PNC's shares) complained to authorities that PNC's board of directors had violated the orders and procedures of summoning the 2017 annual general shareholders' meeting. Afterwards, the HCM City Stock Exchange passed orders and PNC had to organise the first extraordinary shareholders' meeting on April 5. However, only 35.25 per cent of shareholders having the right to vote attended the meeting. The second extraordinary shareholders' meeting on April 21 and the third one on May 5 were also unproductive. Internal conflicts not only wasted the company's resources but also negatively affected its business results. In 2016, according to PNC's financial report, its profit was only $83,600 and accumulated losses took up 36 per cent of the chartered capital. Additionally, its stocks were put in the warning zone since the undistributed after-tax profit was negative and the company was put under special surveillance due to violations of the disclosure rule. Several sources assume that PNC's internal conflicts are related to its 20 per cent contribution to CGV Vietnam's capital one of the biggest cinema systems in Vietnam. The complicated story of PNC reminded investors of a similar case with Bibica Corporation (BBC) several years ago. In 2007, with ambitions of ground-breaking achievements, Bibica started a partnership with Lotte Group from South Korea, hoping to benefit from the new strategic shareholder's potential, distributing system, and rich experience in retail. The story had a complicated twist three years into their partnership. Lotte (possessing 44.03 per cent of Bibica's capital) started expressing ambitions to control the confectionery brand and pushed Bibica to an incessant internal battle. With the appearance of another giant shareholder akin to Lotte, PAN Food Manufacturing (PAN, possessing 43.73 per cent of Bibica's capital), the internal conflict has come to a temporary halt to focus on manufacturing and business activities. However, the fight for influence is predicted to resume at any moment. When groups of shareholders cannot reach agreement, M&A takes a vengeful turn. These endless battles for control are not only wasteful of time, money, and resources, but also harm the business activities and badly impact small shareholders. The arranged marriage The transactions between banks are of a different type: the arranged marriage. 2015 is considered the peak of bank mergers, with transactions between MHB-BIDV, PG Bank- VietinBank, Mekong Bank-Maritime Bank, and Sacombank-Southern Bank. These mergers were completed according to the banking restructuring plan of the State Bank of Vietnam (SBV), aiming to reduce the number and increase the quality of commercial banks in the country. After the mergers, all the affected banks' chartered capital increased, network expanded, and assets and capital resources surged tremendously. For instance, BIDV's total asset reached $30.8 billion (ranking fourth in the domestic commercial banking system) and chartered capital $1.5 billion. Vietinbank also showed impressive performance after the merger, collecting the highest amount of chartered capital ($1.8 billion) and total assets of $30.2 billion. Similarly, after uniting with Southern Bank, Sacombank's chartered capital rose to $829.6 million and total assets to $12.8 billion, becoming one of the five biggest joint stock commercial banks. Despite the appealing numbers, Sacombank's shareholders expressed little to no joy as they had to shoulder the weight of nonperforming loans (NPL). Most of the banks merged into the bigger banks were weak, leading to a fall in efficiency for the original banks after the transactions. Sacombank's NPL rate was 1.86 per cent in 2015, but then rose to 5.35 per cent in the end of 2016, making Sacombank one of the banks with the highest NPL rate in the whole banking system. The main reason for this upsurge in NPL was Southern Bank's formidable NPL rate (55.31 per cent as of November 2013). In its detailed proposal after the merger, Sacombank expected to set $79.2 million aside for risk provision in 2015, $136.8 million in 2016, and $228.8 million in 2017. After remarkable result in the fiscal years 2013 and 2014, with profit of $96.8 million per year, Sacombank's profit after the 2015 merger plummeted to $50.4 million and $16.4 million in 2016. The amount of NPL sold to Vietnam Asset Management Company (VAMC) is $1.6 billion, twice as much as Sacombank's chartered capital. According to Ho Chi Minh Securities Corporation (HSC), Sacombank will barely make any profit in 2017 and will struggle to avoid losses in the coming years. The company's prospects show little to no outlook of profit development in the next 5-10 years. In this period, dividend will be a luxury for shareholders. While not hit as hardas Sacombank, Vietinbank and BIDV's development also slowed in the last two years. Correspondingly, their NPL rates have also been swelling at a steady pace. M&A with weak banks have eventually wiped the smiles from the faces of the receivers' shareholders, as they had to shoulder too much of the burden of their acquired partners. However, this is a price that every investor must accept when investing in this special field. Under the management of SBV, shareholders must compromise their own benefits to ensure the balance and safety of the whole banking system and increase the faith in domestic currency. When proceeding with an M&A, all involved parties expect a happy ending. However, to achieve this goal, enterprises must do careful research, prepare thoroughly, and set clear goals and directions. "M&A is similar to a marriage: both partners must take time to get to know each other, who they are, what they want, their culture, and characters. Only mutual understanding can guarantee a steady relationship," said an expert in the field. http://www.vir.com.vn/the-many-tastes-of-ma-the-happy-unions-the-constant-fights-and-the-arranged- marriages.html

Almost 700 firms lose export license to US 10/May/2017 Intellasia| VNS The American Food and Drug Administration (FDA) has cancelled the import licences of 679 Vietnamese food and beverage manufactureres that did not re-register with the agency as required, or did so without following current procedures. The Vietnam Trade Office (VTO) in the United States has reminded domestic export firms to check the validity of their business codes before shipping food and beverage products for human and animal consumption into the US. According to recent FDA data, before this re-registration requirement, Vietnam had a total of 1,485 enterprises with valid business numbers provided by the FDA; however, this number had currently dropped to 806. Dao Tran Nhan, head of US-based VTO, said that under US law, all foreign firms exporting food and beverages for people and animals into the US market must re-register every two years. This included registering their manufacturing facilities and representatives in the United States so that they could be issued with a new valid business code. This task needed to be completed before the shipment arrives in the US. Since 2017, the FDA has changed the method of verification for issuing new business codes and established further regulations. For example, after being designated by the manufacturing facilities and registered with the FDA, the firm's representatives in the United States must send a letter or document to the FDA confirming their authorisation to represent a Vietnamese manufacturing facility in the US. If the FDA does not receive this letter or document, the re-registration is considered incomplete and the business code will be cancelled. Shipments by Vietnamese firms that are unaware that their FDA business codes have been revoked will be refused entry to the port. Further, companies proceeding with goods delivery without valid registration will be considered violating the law and may be subject to criminal or other severe penalties under the United States' Food, Drug and Cosmetic Act. Data provided by the general Department of Vietnam Customs reported that in 2016 the country's export turnover to the United States hit $38.5 billion, growing 15 per cent compared with the previous year and accounting for 22 per cent of the country's total import-export turnover. Eight types of product exported to the US earned over $1 billion for the country last year. Vietnam's textiles and garment shipments were at the top with an increase of five per cent from a year ago to $11.5 billion, accounting for nearly 30 per cent of Vietnam's total export turnover to the United States. http://bizhub.vn/news/almost-700-firms-lose-export-license-to-us_286023.html

Growth slows down, manufacturers try to find niche markets 10/May/2017 Intellasia| Vietnamnet As the motorbike market is going flat, manufacturers have to reform technologies and penetrate niche markets to boost sales. According to Yano Takeshik, chair of the Vietnam Association of Motorbike Manufacturers (VAMM), Vietnam is now the fourth largest motorbike market in the world, after China, India and Indonesia, with 37 million motorbikes in circulation. The figure is even higher than the target of 36 million motorbikes in circulation set by the Ministry of Transport for 2020. In 2016, Honda, Yamaha, SYM, Piaggio and Suzuki sold 3.1 million products, an increase of 10 percent over 2015. Lu Tien Fu, general director of SYM, commented that the sales in 2016 increased thanks to the price decreases, sale promotion campaigns and attractive credit programmes launched by banks. Lu believes that Vietnam's public means of transport will not develop well enough in the next three years, so "motorbike manufacturers would still have opportunities" in the Vietnamese market. However, this doesn't mean that the 'market' would become larger. Toshio Kuwahara, general director of Honda Vietnam, said Honda Vietnam would strive to maintain the growth rate it gained in 2016 by developing models based on customer demands. Honda Vietnam focuses on scooters and common motorbikes. Besides, it would also develop sports motorcycles as this is now trendy in Vietnam, especially ones equipped with fuel energy engines which reduce emissions. Admitting that Suzuki's market share in 2016 did not increase compared with 2015 and did not reach the 9.5 percent growth rate of the whole market, Ko Iwamotor, the representative of Suzuki, said Suzuki did not have many new products to compete with its rivals. In 2017, Suzuki plans to focus on scooters, the niche market share that it still can see opportunities for growth. It would also gather strength on classic clutch and sports motorcycles to conquer the group of young and middle-aged customers who like nostalgic beauty. The representative said with more than 20 years of presence in Vietnam, Suzuki understands customers. Young customers always want new models with new technologies. Therefore, Suzuki would change the designs of some models including GSX-RR MotoGP, V-Trom and GSX-S 1000. It would also pay attention to developing the distribution network, especially in rural areas. Meanwhile, Yamaha Vietnam in 2017 would continue developing models with distinctive styles including stylish ladies' scooters, Race for speed enthusiasts and City Sport for sport lovers. Piaggio Vietnam's director Marco Noto La Diega said Piaggio would continue applying new technologies to products in 2017. The manufacturer first utilised ABS (anti-lock brake system) for its models. http://english.vietnamnet.vn/fms/business/177798/growth-slows-down--manufacturers-try-to-find-niche- markets.html

Tourism investment to continue in Vietnam 10/May/2017 Intellasia| VNS The tourism and hospitality sectors are predicted to develop rapidly and attract plenty of investment, based on their strong growth in recent years, according to experts. Ngo Hoai Chung, vice Chair of the Vietnam National Administration of Tourism, said tourism has been growing strongly in recent years and increased its proportion of GDP. It accounted for 6 percent of GDP in 2016 compared to 1.76 percent in 1994, he told a seminar held on the sidelines of the Food & Hotel exhibition held in HCM City late last month. The sector's development has also enabled other industries to develop, he said. Vietnam received more than 4.2 million international visitors in the first four months of the year, a year- on-year increase of 30.3 percent. "The tourism industry has attracted lots of investment for developing products, services and facilities, which has changed the appearance of tourism destinations and led to an increasing number of modern, high-quality hotels and services." The number of hotels and guest houses in Vietnam has increased sharply in recent years, with the number of rooms going up from 69,000 in 2001 to 420,000 last year, he said. According to Do Thi Hong Xoan, Chairwoman of the Vietnam Hospitality Association, the kinds of accommodation are becoming increasingly diverse. Besides hotels and motels, they now include many others such as resorts, tourist apartments and villas. Some 45 percent of them are situated in the north, 29 percent in the central and Central Highland regions and 25 percent in the south. Large hotels are mainly located in tourist centres and coastal areas such as Hanoi and HCM City. Chung said the industry expected to attract 17-20 million foreign visitors and 82 million domestic visitors by 2020, contribute more than 10 percent of the country's GDP and generate four millions jobs. The tourism sectors revenues were expected to reach 35 billion USD by then, he said. "To meet those goals, the country is expected to have 580,000 rooms by 2020 and 900,000 by 2030. "Investment in the hospitality sector is expected to continue to increase at tourism centres, especially in coastal areas, with a focus on the high-end and three- to five-star segments." Many investors told the seminar that they plan to open four- or five-star hotels in tourism cities this year, including HCM City, Phan Thiet, Nha Trang, and Phu Quoc. Tran Hung Viet, general director of Saigontourist, said: "We are planning to build some hotels in HCM City to meet the increasing demand of tourists. But since very little vacant land is available in central areas like Districts 1 and 2, Saigontourist is looking for suitable places to build hotels." Despite its great potential, experts said to attract more investors Vietnam needs to further improve its policies and infrastructure and create an equal business environment for enterprises. http://en.vietnamplus.vn/tourism-investment-to-continue-in-vietnam/111444.vnp

Railways plan upgrades, new services 10/May/2017 Intellasia| VNS Vu Anh Minh, Chair of the Vietnam Railways Corporation, tells the Thoi bao Kinh te Vietnam (Vietnam Economic Times) that the shortage of funds makes investment decisions difficult for the sector. Some people have blamed the "weak service" of Vietnam railways, compared to other means of transport, for its poor investment-attracting capacity. How would you respond to that charge? I have to admit that investment in the railway sector is not attractive to investors, including institutions, individuals and businesses. We all know that development of railway infrastructure requires huge investment capital. That's why in other countries, governments are the main investors in railway infrastructure. Due to State Budget limitations, the government has to focus its investment budget on means of transport that can generate quick returns on investment. For example, with VND10 trillion (US$440 million) we can build a road to boost socio-economic development of a region, but a new railway route needs a lot more money. Besides, a railway line cannot stand by itself, but has to link with other forms of transport. However, we cannot deny that investment in the railways sector is very important in a country's economic development. In other countries, including Russia, Japan, China, huge sums of money have been invested in the railway sector in recent years. For example, China now has some 30,000km of express rail lines. We should also remember that railways have several advantages over other means of transport. It is fast, safe and can carry many passengers and cargo at low cost. When we invest in a new road, the transportation capacity of that route is doubled. But with a new railway route (with a width of 1.435m), transportation capacity will increase 10 times. What should the railway sector do to attract capital from sources outside the State budget? At present, our investment capital comes from three main sources: the State Budget, which is used for infrastructure development; financial investment from other sectors is used to build railway stations, warehouses, dry ports, loading/unloading goods and transportation connections; and the third source, is various forms of credit. This source is typically used for maintenance work, manufacturing new carriages and locomotives or refurbishing old ones. We have developed a plan to attract investment from the public to renovate railways stations, carriages and storage facilities. Since funding is scarce, what are the priority areas on which Vietnam Railways will focus its investments? For the immediate future, we will focus our investment in upgrading some railway stations, particularly rails running inside them, which are just 300-400m long. Now, stations can only accommodate trains with 19 coaches or wagons. Once the upgrade is completed, they will be able to accommodate trains with 25 coaches. The new stations will also be able to service 25 pairs of trains (travelling in both directions) in 24 hours. According to our plan, by early 2018, VNR will have 100 new locomotives to replace obsolete ones. This June, we will start operating a high quality train. This will increase to four in 2018. In addition, VNR will upgrade its rail infrastructure, particularly rail bridges and tunnels along the North-South route. What are VNR's plans to increase connectivity when its tonnage increases? We will have to upgrade warehouses and develop more inland container depots; and invest more in loading and unloading equipment. Of course, logistics will be a focus. More recently, the VNR signed agreements with the New Sai Gon Port Corporation to build two Inland Container Depots - one in Song Than (Binh Duong Province) and the other in Dong Anh (Hanoi). Does the VNR have a plan to attract more passengers? Yes, besides upgrading trains and stations, in the near future, we will apply different ticket-sales models, including allowing reservations six months in advance and offering discount tickets. We are planning to pilot a new service by providing free two-way transport services to passengers from the railway station to their destinations. This service will be offered on the Hanoi-Cua Lo, Hanoi- Sa Pa and other routes. http://english.vietnamnet.vn/fms/business/178030/railways-plan-upgrades--new-services.html

Condotels boom but concerns emerge 10/May/2017 Intellasia| VN Economic Times Rudolf Hever, director of Hotels at Savills Asia Pacific, casts his eye over Vietnam's condotel market. The growth curve of tourist arrivals to Vietnam continues ever upward. In seven years, international arrivals by air doubled to 10 million in 2016 and domestic tourist numbers jumped from 28 million to 62 million. Such figures are driving remarkable growth in the second, or holiday, home segment, with condotels taking centre stage. Nha Trang, Da Nang and Phu Quoc: Stealing the spotlight Vietnam's key coastal tourism destinations - Nha Trang, Da Nang and Phu Quoc Island - have all benefited from this surge in visitors. Tourists to Nha Trang rose 23 per cent in 2016 compared to 2015, with 1.2 million international visitors, a trend improved upon in Da Nang, which welcomed 33 per cent more visitors, including 1.7 million international arrivals. The government is playing an important supporting role in the country's tourism sector. Vietnam now has nine international airports that all seem to be constantly being upgraded with new terminals opening and runways extended. The country's visa policy has been streamlined and improved upon, making it easier and cheaper than ever before to visit the country. Although inbound numbers are impressive and the performance of hotels and resorts in sub-markets have generally improved, it has not been at the pace arrival numbers would suggest. The last few years have seen robust activity in resort real estate development and this year we are starting to see the implications of all this new supply. Resort and hotel competition is intensifying and as it is still in its early stages we anticipate it only getting hotter. For local and international guests this will mean an ever-increasing choice of options across the budget spectrum as resorts compete with fresh appeals. With exciting new and established brands to experience and an abundance of new properties to choose from, at no doubt often heavily discounted rates during start-up periods, the next couple of years will be a great time to discover or rediscover Vietnam. This is particularly true in Nha Trang, Cam Ranh, and Phu Quoc Island. Growth in these markets has been in the double digits, and with an abundance of new resort and hotel properties in the pipeline will no doubt, at some point, have to overcome a case of supply "indigestion", just as Da Nang coped with a few years ago. Owners may need to curb their expectations for future performance and perhaps even prepare for leaner years ahead. Second homes and condotels: Market sweethearts Another segment that has grabbed and held market attention is second, or holiday, homes. Products include branded and non-branded villas, second home condominiums, and condotels (a blend of hotel and condominium: resort hotel levels of service with the independence of a condo). There are approximately 36 second home properties in Vietnam, with over 7,000 affordable to luxury units. Khanh Hoa, Da Nang, Phu Quoc, Ho Tram, Ha Long and Quang Nam are set to see second home supply of more than 17,000 units over the next three years. It will take time for inventory as significant as that to be absorbed by the market, with perhaps another case of "indigestion" to overcome. Supply in main coastal destinations will account for 65 per cent of stock by 2019. The standout, mainly in coastal locations, is the profusion of condotel developments. The fervor developers are showing for building these units is starting to raise concerns about future oversupply but the market is so far accommodating them and, with that, more are planned. We are seeing more and more projects announced, all seemingly trying to outdo one another in terms of scale, appeal, and often outlandish promised returns. The guaranteed rental return in Vietnam can be as high as 12 per cent, guaranteed for eight years. Developers are quick to name projects located in or close to a destination as condotels but the concern is the "tel" part of condotel. In many cases, we see little regard for the hotel part of the project and the long- term management implication this entails. The concern is that to have any chance of matching promised returns, projects need an impressively performing hotel component. But in most cases this seems to be missing or, at best, incomplete. Guaranteed return products become riskier for buyers when less experienced developers enter into large- scale projects with insufficient equity or by not being fully supported by banks. Buyer risk tends to appear after completion and mainly in operation. If the guaranteed return is higher than achieved cash flow, the developer is then required to underwrite additional funding, potentially for the entire period of operation. In several cases, guaranteed return is being incorporated into the planning stage and reflected by higher selling prices in order to manage the long-term return commitment. This structure could be attractive both for buyers and for developers but needs to be very well planned, requiring careful analysis before being implemented. http://vneconomictimes.com/article/op-eds/condotels-boom-but-concerns-emerge

Shrimp aids climate change fight 10/May/2017 Intellasia| VNS Rising sea levels have exacerbated saline intrusion and coastal erosion in Việt Nam, but farmers can make the best out of a bad situation by shifting from agriculture to aquaculture, raising brackish water shrimp. This view was expressed by the directorate of Fisheries (DoF) at the fourth agricultural promotion forum held in the southern province of Bạc Lieu last Friday. Attending the forum were leaders from relevant sectors, scientists and nearly 200 shrimp farmers from the Cửu Long (Mekong) river delta provinces of Ca Mau, Soc Trang, Kien Giang, Tien Giang, Tra Vinh, Ben Tre, Long An and Bạc Lieu. DoF official Ngo The Anh said at the forum that raising brackish water shrimp was a key target in the nation's aquaculture development plans, especially in coastal localities. "Currently, brackish shrimp is a leader in the seafood sector, accounting for about 45 per cent of the sector's export turnover. It's seen as a product with significant advantage and potential in the context of global climate change." Anh said localities in the Mekong Delta needed to take advantage of all its potentials including natural conditions, available markets, processing technology and experience of local breeders. "We have to develop shrimp farming on a large scale using modern technology; this will not only be environmentally friendly but also create high-quality products." The DoF also informed the meeting that various Vietnamese shrimp products had high potential because they were favoured in the world market. There is currently no limit on shrimp products, because its price has almost never dropped. Trương The Hung, a shrimp farmer in Spc Trang Province, said he and his peers were more concerned about the quality of post-larvae because they could not check this with the naked eye. Most shrimp farmers who expressed their views and opinions at the forum also mentioned difficulties they faced, including raising capital, disease outbreaks, the quality of post-larvae and veterinary medicines, which they said were hurting the shrimp breeding industry. Shrimp farmers suffered last year from drought and salinity, which damaged more than 188,000 ha of ponds in Ca Mau, Bạc Lieu and Kien Giang provinces. In the early months of this year, Delta farmers raised shrimp on 556,000 ha, more than double the same period last year. Kim Van Tieu, deputy director of the National Agricultural Promotion Centre, suggested that the DoF continues to focus on managing the quality of post-larvae, probiotics and antibiotics, as well as products to treat the environment, in order to protect the rights and interests of shrimp farmers. "Research institutes, schools and businesses need to study and engage in the production of quality, disease-free post-larvae, and produce disease-resistant varieties in the future," he said. http://www.vir.com.vn/shrimp-aids-climate-change-fight.html

G2B meeting set to facilitate growth 10/May/2017 Intellasia| VNA An upcoming G2B (Government to Business) conference will target creating favourable conditions for business growth, not merely on solving existing problems facing enterprises, a senior official has said. Le Manh Ha, vice Chair of the government Office, was addressing a press conference held on May 8 to announce details of the second annual meeting between the prime minister and businesses on May 17. He said the conference will broadly focus on the promulgation and implementation of Resolution 35/NQ- CP, taking in suggestions and requests from business associations and individual firms about improving the business environment in Vietnam. The inputs will be assessed and action by appropriate government agencies under the PM's guidance, he added. Vu Tien Loc, President of the Vietnam Chamber of Commerce and Industry (VCCI), said at the press meet that his institution will submit to the PM around 200 opinions, divided into five groups, from businesses across the country. He said the feedback largely dealt with administrative reforms, protection of corporate rights, and the need to reduce operational and production costs. Two noteworthy requests from businesses are the streamlining of overlapping legal directives and administrative regulations, he said. Businesses mainly want cheaper loans, easier access to credit, a transparent dispute settling mechanism, a transparent inspection regimen and logistical solutions, Loc said. A majority of 420 requests sent by businesses to the 2016 conference have been resolved and the few remaining are being processed, he said. Resolution 35 has been positively received by 75 percent of total national businesses, while about 30 percent considered the changes wrought to be limited. Key sector Ha said that this year's conference will reinforce the importance of the private sector as being on par with foreign direct investment and the State-owned sector. Loc also said that in order to achieve the 2020 goal of establishing a million domestic enterprises, local authorities and firms will have to work closely together. G2B meetings are seen as an effective way to increase understanding and communication between the two sides on many topics of shared interest, including market mechanisms, administrative regulations, legal documents and public sector divestment. About 2,000 representatives of domestic enterprises, roughly four times that of 2016, are set to attend the upcoming conference. Of these, 1,500 belong to the household business sector, the FDI sector, State-owned and equitised enterprises, and representatives from foreign embassies and major financial institutions. Senior leaders from 63 provinces and cities will attend the meeting via online streaming. The PM and deputy PMs will monitor the conference, while the government Office, the Ministry of Planning and Investment and the VCCI will chair the event. This year's G2B conference, themed "Side by side with Enterprises", will be held at the Vietnam National Convention Centre. http://en.vietnamplus.vn/g2b-meeting-set-to-facilitate-growth/111397.vnp

Investors look to profit from Apec in Da Nang 10/May/2017 Intellasia| VN Economic Times Apec meetings set for November in central city have seen investors arrive en masse to seize opportunities in real estate and infrastructure. Projects associated with the Apec 2017 Summit in Da Nang are expected to bring long-term and effective benefits to property investors in the central city. The largest international event ever hosted by the city, the Apec 2017 Summit will take place in November and preparations are proceeding rapidly. Da Nang welcomes Apec 2017 A series of construction works in service of the Apec meeting are giving the city a new look, of which the Tuyen Son Sports Palace has been upgraded for the Gala Dinner and the Exhibition centre will become the Press Centre. Hotels are also receiving investment and being upgraded and a number of new projects are being completed to be ready for use. Work at the international terminal at Da Nang International Airport will be finished this month and official opened soon after. One of the key projects for Apec 2017 is the Ariyana Danang Exhibition & Convention centre (ADECC), which is finalising construction and will open before the Apec meetings. The project has investment of VND350 billion ($15.7 million), with a total floor area of 12,000 sq m, of which the main conference room can seat up to 2,500 people and will become one of the largest convention centers in Vietnam. Located on a prime site to the south of Furama Villas Danang and Furama Resort Danang, the ADECC is part of the 30-ha Ariyana Urban and International Tourism Complex, which consists of Ariyana Beach Resort and Suites Danang. The ADECC will host Apec meetings attended by 21 leaders of member countries as well as 16,000 representatives of major enterprises and members of the international media. ADECC will not only serve the Apec meetings but also bring long-term benefits to Da Nang's tourism sector in general and to investors buying villas and condominiums at the Ariyana Urban and International Tourism Complex in particular. The project will trigger a trend in tourism associated with conferences and events (MICE); a segment that has the potential to generate high revenue and high business performance. In front for MICE Industry insiders and prestigious organisations have evaluated Da Nang as having many advantages in developing MICE tourism. Readers of the Smart Travel Asia magazine voted the city among the "Top 10 Resort Destinations in Asia". Last year, at the World Travel Awards, it was honored as "Asia's Top Event and Festival Destination" and is a candidate yet again in this year's awards. Other events held in Da Nang are getting bigger and longer, such as the Da Nang International Fireworks Festival, which is held over a two-month period. Other international events attract thousands of visitors, such as the Asian Golf Tour, the International Clipper Sailing Race, and the Iron Man Triathlon. Da Nang is aiming to be Vietnam's "City of Events" and ADECC will be the venue for many major national and international events, arts and cultural occasions, and conferences and seminars held by major corporations. Demand for MICE is increasing rapidly. Last year, Da Nang welcomed 5.5 million visitors and this year targets 6.3 million, and this is why investors are rushing to build large hotel, villa, and condominium projects. The Ariyana Investment Joint Stock Company will put 108 Furama Villas into use in order to serve Apec and welcome large events. The company also invested in the Ariyana Beach Resort & Suites condotel project, with more than 1,000 apartments. With the advantage of being right next to the ADECC, Ariyana Beach Resort & Suites is an ideal retreat for conferences and events and is the only luxury condominium resort in Da Nang with its own beach, and all apartments have ocean views. The project has a 3,000 sq m dining area with five restaurants and four bars, together with gymnasium, spas, and cinemas. It is operated and managed by the Furama brand, which has 20 years of experience and a great reputation from managing Furama Resort Danang. Ariyana Beach Resort & Suites is therefore attracting customers who are seeking an ideal home for their family and also offers profitable investment opportunities. In addition to receiving 15 days free each year, Ariyana Beach Resort & Suites owners also receive a return of a minimum of 10 per cent per annum for a period of up to ten years. The value of Ariyana Beach Resort & Suites' properties will increase when ADECC and the expansion to the airport are put into operation. According to smart investors, Da Nang has become the best investment destination in Vietnam, which explains why condominium projects such as Ariyana Beach Resort & Suites are increasingly attractive in the eyes of customers. http://vneconomictimes.com/article/property/investors-look-to-profit-from-apec-in-da-nang

20pct of businesses never use cloud computing 10/May/2017 Intellasia| The Saigon Times Up to 20 percent of businesses have never used cloud computing as many enterprises are still worried about security risks when using cloud services, said Vu Anh Tuan, general secretary of the HCM City Computer Association (HCA), at the announcement of Cloud 8 Exhibition in the city last week. Meanwhile, 38 percent of businesses show great care to the security and availability of cloud computing and network infrastructure, Tuan told the event, citing a survey conducted by HCA. Data centralisation through cloud computing will help enterprises reduce infrastructure costs. However, some local businesses worry that after using this service, all data might be lost if the system is hacked or breaks down. Some users do not feel safe when uploading their private data onto the cloud and consider storing data on private computer, laptop or smartphone a safer way. Giap Hung Cuong, general director of VinaCIS and representative of Cloud 8 organising committee, said at Cloud 8 Exhibition due to take place later this month, IT enterprises will introduce solutions for transportation, public security and big data calculation using cloud computing. Cloud 8 is geared towards building a cloud ecosystem that helps businesses connect with each other to provide services and share resources. Cloud 8 Exhibition is expected to attract more than 800 participants this year, including 100 enterprises engaging in cloud computing, 30 startups and 10 investment funds. According to HCA and a number of cloud service providers, cloud computing will help businesses reduce costs thanks to the principle of saving resources, helping scale the system rapidly at low cost. The development of cloud computing for online applications can be the most efficient use of infrastructure. With low cost service, cloud computing will reach out to a large number of customers, both small and big. Cloud 8 entitled "Calculation super power in Industry 4.0" will be held on May 26, 2017 in Tan Binh District, HCM City with the participation of more than 30 businesses providing hardware, software, data infrastructure and mobile applications for cloud computing. english.thesaigontimes.vn/53823/20-of-businesses-never-use-cloud-computing.html

VN eyes 4th technical revolution 11/May/2017 Intellasia| VNS The Vietnamese mechanical industry will have more opportunities to improve their competitiveness if they apply technologies to meet the standards of the so-called fourth industrial revolution, experts have said. Nguyen Van Thu, chair of the Vietnam Association for Mechanical Industry (VAMI), said that the domestic mechanical industry had seen positive changes with higher revenue. Sales from mechanical products earned during the last 10 years had jumped annually by over 20 per cent. He added that many mechanical products like auto spare parts and electrical devices and machines had been exported to other countries which have their own brands sold in both domestic and foreign markets. Mechanical products produced with high-technology equipment for cement plants and oil drills had been manufactured, he said. Domestic companies recently poured billions of dong to upgrade their technologies, which is expected to strengthen their capacity as well as improve competitiveness in foreign markets. Speaking to Sai Gon Giai Phong (Liberated Sai Gon) newspaper, a representative from a technical company, said Vietnamese mechanical production skills were stuck in the second or third industrial revolution stage. He said that the production was still weak due to shortage of technology, information and infrastructure. Much of the rest of the developed world, meanwhile, is in the fourth industrial revolution stage, which focuses on automation and data exchange in manufacturing technologies. It also includes cyber-physical systems, the Internet of Things (IoT) and cloud computing. He said that Vietnamese human resources were striving to step into the fourth industrial revolution, which should be starting now. However, Thu said that it must start with small and simple steps. "The most important aspect is human resource training, while manufacturers need to invest more in upgrading technologies," he said. For instance, the Truong Hai Auto Joint-Stock Company has invested in building the Chu Lai Mechanical Industrial Zone with many modern technologies. After it is put into operation in 2018, the zone will connect with many other local companies to produce spare parts with the main aim of increasing the scale of modernisation. Thu said the cooperation among domestic manufacturers was necessary to avoid overlap and waste. VAMI said it would continue to support companies and provide better information about companies to its partners. The association will also help domestic companies meet with foreign companies to study technologies and seek cooperation opportunities. Le Khanh Truong, deputy director of the HwC Technical Training and Consultancy Centre, said that to achieve international standards as well as higher capacity, the industry should have good management as well as skilled human resources. http://bizhub.vn/news/vn-eyes-4th-technical-revolution_286035.html

Labour crucial for Industry 4.0: Experts 11/May/2017 Intellasia| VNA Vietnam needs to invest in human resources to take advantage of and keep updated about the fourth industrial revolution or Industry 4.0, Nguyen Van Thu, President of the Vietnam Association of Mechanics said. The next step, according to him, is technological reform and cooperation among enterprises to avoid investment overlap. According to experts, enterprises need labourers with professional skills, especially those developing and designing products. This will create opportunities for Vietnamese training institutes. One example of cooperation between enterprises and training institutes is the partnership between the Vietbay company, specialising in software distribution and information and technology professional services, Siemens Industry product lifecycle management and three universities - Military Technical Academy of Vietnam, School of Mechanical Engineering under Hanoi's University of Science and Technology and University of Transport Technology. Vo Hong Ky, director of Siemens Industry product lifecycle management Vietnam said that the collaboration aims to enhance competency and quality of graduates and offer them post-graduate job opportunities and to improve lecturers' abilities. The cooperation is expected to provide high-quality human resources for the engineering sector. Mai Duy Quang, vice President of the Vietnam Software Association said it is impossible for enterprises to put into operation the internet of things, big data and artificial intelligence in the near future. However, enterprises can increase productivity by improving staff quality and management. Vietnamese human resources have ten to twenty years of experience in information technology application and outsourcing; therefore, the country will be able to keep updated on state-of-the-art technology easily. However, the government must take actions to create conditions for companies to design initiatives rather than paying lip service to the problem, he said. Traditional enterprises must improve production capacity by not only depending on low-cost labour but also creative hi-tech workers, he said. Isara Burintramart, executive director of Reed Tradex, Asean's leading exhibition organiser, said that Vietnam's human resources are ready to learn and step into Industry 4.0. The best way to approach it is to map out strategies and pilot projects. Industry 4.0 refers to the trend of automation and data exchange in manufacturing technologies. It includes cyber-physical systems, the internet of things and cloud computing. http://en.vietnamplus.vn/labour-crucial-for-industry-40-experts/111465.vnp

VN firms lack talent strategies 11/May/2017 Intellasia| VNS Multinational companies focus on building talent management strategies right from the early stage of their businesses, but many of their Vietnamese counterparts do not, a seminar heard in HCM City on Tuesday. According to Tieu Yen Trinh, CEO of Talentnet Corporation, many Vietnamese firms, after a period of rapid growth, encounter a bottleneck when they do not have enough human resources with the skills and mindsets needed for that stage of development. They then think of investing in talent, but by then it is too late. A recent poll of 63 CEOs of large local and multinational companies by Talentnet found that an overwhelming majority believed people capacity was one of the major concerns for the business and had HR strategies in place. A majority perceived "Talent management" as a system with defined tools to help them achieve talent objectives, and it was more defined at multinationals than local companies. However, talent strategies were lacking at nearly half of the local companies and a few multinationals. Trinh said 47 per cent of the CEOs polled said they had a talent strategy linked to the business strategy, while 17 per cent said they had a strategy but it was not linked to the business strategy because it was too complicated systems and depended on HR and line managers'competence to execute it. The remaining 36 per cent said their business did not have a talent strategy. According to the survey, the main HR focus this year at both local and multinational companies was training and developing their existing workforce and enhancing workforce productivity. Trinh said 69 per cent of multinational companies had defined criteria and a framework to select their talent pool, meaning they have a tendency to do so internally. For local companies, the talent pool is a mix of different sources (build, buy and borrow). The survey pointed out some obstacles Vietnamese companies face in developing and implementing a talent strategy, such as the lack of line managers'involvement in identifying employees' profiles, their bias in assessing talent and their belief that the development of people's capacities and careers is HR's job. Other obstacles are that line managers do not want to share their talented workers with other departments or business units and there are no different reward schemes to recognise and retain talent, she said. "Vietnam is ranked 86th out of 118 countries in the annual Global Talent Competitiveness Index, which measures how countries grow, attract and retain talent," she said. According to the report, Vietnam scores relatively better in global knowledge skills (i.e. using the available higher skills to support innovation and engage in entrepreneurship). But the country is struggling in terms of attracting talent and developing a pool of vocational and technical skills, she said. Talking about talent challenges in the region, Joanna Yeoh, a strategic HR and talent management practitioner, said "the region has a very large number of young workers but lacks depth of expertise and managerial skills, suffers from a brain drain and migration". "It has an improving educational system but low skill confidence, multinationals entering the markets and hiring away talent, compensation costs outpacing productivity and ability," she said. High salary increase A survey by human resources providers Mercer and Talentnet last year found that Vietnam was among the three countries in Southeast Asia with the highest salary increase rates. At the higher career levels, Vietnam pays higher than Singapore or Australia, she said. Organised by Talentnet Corporation, the "Talent Management Strategy for Visionary CEO: Build to Win" seminar attracted more than 40 CEOs and other executives from Vietnamese and multinational companies. http://english.vietnamnet.vn/fms/business/178088/vn-firms-lack-talent-strategies.html

New trends for Japanese FDI in Vietnam 11/May/2017 Intellasia| Vietnamnet Japanese investors are now eyeing non-production sectors, such as the retail industry. The presence of Aeon Mall and Takashimaya and their expansion of networks in Vietnam show the attractiveness of the retail sector. Aeon Mall alone has four shopping malls in Vietnam, while it is moving ahead with the plan to build the fifth one in Ha Dong district in the suburbs of Hanoi. Yukio Konishi, CEO of Aeon Mall Vietnam, said on national television channel VTV that one shopping mall should be opened for every one million people. Aeon plans to open 10 shopping malls in Hanoi and HCM City each. Meanwhile, Nikkei on May 1 reported that the retailer from Japan is preparing to increase the number of grocery stores in Vietnam by nine times to 500 stores by 2025. As such, Aeon, well known for large shopping malls, will also set up small shops in large quantity, which require lower investment rates, to increase its presence in Vietnam. Though they are called 'grocery stores', they have the scale of small supermarkets. Prior to that, many convenience store chains such as Family Mart and Ministop opened up stores in the Vietnamese market. And according to Nikkei, 7-Eleven, one of the world's largest convenience stores, will open its first shop in Vietnam in February 2018. VTV cited a report of the Ministry of Planning and Investment (MPI) as reporting that 560 Japanese invested projects were registered in Vietnam in 2016, of which the number of projects in hotels and food services increased by twofold. Meanwhile, the number of projects in the manufacturing sector has seen a sharp decrease. Some analysts said the Japanese economic growth has slowed down in recent years, which has caused Japanese large conglomerates to become more reluctant when making investment decisions. Atsusuke Kawada, chief representative of JETRO (Japan External Trade Organisation) in Hanoi, also commented that Japanese investment now tend to shift to non-manufacturing sectors, including agriculture, and the investment flow is mostly from small and medium enterprises. Japanese FDI to Vietnam expected to bounce back Japan is the second largest foreign investor in Vietnam with 3,355 projects capitalised at $42.4 billion registered so far. However, the FDI flow from the country has been slowing down in recent years. In the first three months of the year, only $450 million worth of Japanese FDI capital was registered, and Japan ranked fifth among the biggest foreign investors. However, Dau Tu commented that this could change after the working visit to Japan by the Vietnamese minister of Planning and Investment Nguyen Chi Dung in mid-April to promote investments. http://english.vietnamnet.vn/fms/business/177924/new-trends-for-japanese-fdi-in-vietnam.html

Thanh Hoa calls for $5 billion investment in 50 projects 11/May/2017 Intellasia| The Saigon Times Thanh Hoa Province will introduce to potential investors a list of 50 projects requiring a total of $5 billion at an investment promotion conference slated for May 19, Dan Tri news website reports. These projects are in the fields of manufacturing, agriculture, urban development, industrial park, tourism, energy and environment. The conference will be jointly organised by Thanh Hoa authorities and the Ministry of Planning and Investment in Sam Son City. The event is expected to be attended by about 1,200 delegates including 400 international delegates including representatives of embassies, international financial institutions, investment promotion agencies of some countries, foreign business associations, and Vietnamese investment and trade counsellors abroad. The conference is aimed to introduce plans, potentials, advantages, investment opportunities and policies to attract domestic and foreign investors. At the event, Boston Consulting Group of the US will introduce a master plan for socio-economic development in Thanh Hoa to 2020, with a vision towards 2030. Thanh Hoa vice chairwoman Le Thi Thin said that as investors are concerned about time-consuming administrative procedures and land clearance, the province has built public administrative centers in 27 districts to serve investors. http://english.thesaigontimes.vn/53853/-Thanh-Hoa-calls-for-US$5 billion-investment-in-50- projects.html

Paint, printing ink industry to grow 6-8 per cent annually 11/May/2017 Intellasia| VNS Vietnam's paint and printing ink industry is expected to grow at 6-8 per cent in 2016-20, according to the industry business association. Speaking to the media in HCM City on May 10 to introduce three international exhibitions Paper Vietnam; Rubber & Tyre Vietnam; and Coatings Expo Vietnam Nguyen Thi Lac Huyen, chairwoman of the Vietnam Paint and Printing Ink Association, said the industry enjoyed 10.8 per cent growth last year. "Many local firms have invested in building new factories in industrial parks. "In addition, many foreign investors have shifted their paint and printing ink production facilities from Japan, South Korea, Singapore, Thailand, and Malaysia to Vietnam." There are many positive factors to boost the development of the paint and printing ink industry, which is a supporting industry for many other industries, she said. The development of the construction and property sectors and an increase in infrastructure works would increase demand for paint, she said. As for the printing ink sector, there are many consumer products and their need to improve packaging would boost the sector, she said. The paint and printing ink industry, whose output topped $1.6 billion last year, is expected to grow robustly, she said. The industry is still young in Vietnam, and thus enterprises in the industry need an opportunity to promote their products, she said. The 2017 Coatings Expo Vietnam would be an ideal opportunity for the firms to learn about the latest trends and demand in the market and enhance cooperation with local and foreign counterparts, she said. Three international exhibitions Coating Expo Vietnam, Rubber & Tyre Vietnam, and Paper Vietnam to be held together at the Saigon Exhibition and Convention Centre in HCM City from June 13 to 15 has attracted over 200 exhibitors from 15 countries, including Việt Nam, India, Japan, the Netherlands, Malaysia, China, the US, Germany and France. Monika Yu, general manager of the China National Chemical Information Centre's exhibition department, said the exhibitions would not only showcase a wide range of machinery, equipment, and products used in the paper and pulp and rubber and tyre industries and for coating, dyeing, and inking, but also provide cooperation opportunities for exhibitors and visitors. Organised by the Minh Vi Exhibition and Advertisement Services Co., Ltd, CNCIC China and CNCIC India, the exhibitions are expected to welcome 4,500 trade visitors. http://bizhub.vn/news/paint-printing-ink-industry-to-grow-6-8-per-cent-annually_286056.html

Vietnam property market still attracts foreign investors 11/May/2017 Intellasia| DTCK Cushman & Wakefield has announced its Q1/2017 capital inflows with forecasts that investment in the Asia Pacific property market is expected to exceed $611 billion in 2017. Of which, Vietnam is an attractive destination for investment inflows. Cushman & Wakefield's The Atlas Summary 2017 reports that although the $611 billion only increases 1.6 percent from 2016, it still accounts for 44 percent of the total world investment in real estate. In 2016, developers poured the most money in Singapore and Tokyo markets, while Chinese investors continued to invest heavily in assets in major cities of China and Hong Kong. "Positive investment trend in the Asia-Pacific region is expected to continue in 2017, and good economic performance will further bolster investor sentiment and boost investment demand. However, given the uncertain economic outlook, some investors are still choosing to diversify their portfolio around the globe as a key strategy, leading to an increase in investment portfolio in new markets", said Sigrid Zialcita, Cushman & Wakefield's Managing director of Research and Advisory Services for the Asia Pacific region. In 2017, the office-for-lease segment in key markets such as Sydney, Melbourne (Australia) and Tokyo (Japan) are still favoured. However, due to limited supply in Japan and Australia, investors are likely to shift to other key markets such as China, Singapore and South Korea. As per Cushman & Wakefield, some investment opportunities in emerging markets will be found in Asia such as Vietnam. In general, the Asia-Pacific region is having stronger position than in the past with the overall recovery of economies. Ben Gray, director of the capital market division of Cushman & Wakefield Vietnam said, "In 2016, the Vietnamese market attained records of capital inflows into the real estate market as investors put a lot of expectations into the profitability of this segment. That profit was driven by existing assets originating in emerging markets with the strongest macroeconomic fundamentals in the region". Cushman & Wakefield Vietnam forecasts that Vietnam will continue attracting good investment in 2017. Specifically, the committed and implemented FDI in Q1/2017 increased 27 percent over the same period of 2016, reaching $3.4 billion. Investors' confidence in the Vietnamese market is rising and this market is considered as one of the attractive destinations of the investment flow.

New real estate enterprises soar in January-April 11/May/2017 Intellasia| The Saigon Times The number of newly-established enterprises in the real estate sector in the first four months of 2017 increased sharply over the same period last year, according the Agency for Business Registration under the Ministry of Planning and Investment. In January-April, the country had more than 1,390 newly-established real estate enterprises, up 66 percent year-on-year. Meanwhile, their registered capital increased about 50 percent over the same period last year. Backed by the sharp growth of the real estate and construction markets, some companies in these sectors have announced higher profits in the first quarter. Particularly, a financial report of Dat Xanh Real Estate Services and Construction Corporation (DXG) showed that the company's net revenue in the first quarter reached VND586 billion, a year-on-year increase of 86 percent, while its after-tax profit shot up by 5.2 times to VND151.6 billion. The company explained its higher quarterly profit came mainly from sales of LuxCity project and dividends from subsidiaries and joint ventures. This year, Dat Xanh targets net revenue of VND3,300 billion (about $145.2 million) and after-tax profit of VND700 billion. Meanwhile, Thu Duc Housing Development Corporation (TDH) posted net sales and service revenue of VND191.3 billion in the first quarter, up 152.9 percent against the same period last year, and net profit of VND41.5 billion, tripling the same period last year and fulfilling 32 percent of its 2017 target. In the 2017 general meeting, Hoa Binh Construction and Real Estate Corporation (HBC) announced plans to achieve revenue of VND16 trillion and after-tax profit of VND828 billion. However, as of late March 2017, the total value of contracts won by HBC had amounted to VND39.6 trillion. Meanwhile, Vietnam Construction and Import-Export Joint Stock Corporation (Vinaconex) said its net revenue in the first quarter was VND2,041 billion, up 65 percent year-on-year, and after-tax profit was VND148 billion, up 37 percent over the same period last year. In their shareholder meetings for 2017, many large firms in the construction industry also announced plans to develop real estate projects. According to real estate experts, the hefty growth of the real estate and construction industry, especially in major cities such as HCM City, has led to newly-registered enterprises in these sectors rising. However, the real estate market remains unpredictable, especially in HCM City and neighbouring provinces such as Binh Duong and Dong Nai. http://english.thesaigontimes.vn/53842/New-real-estate-enterprises-soar-in-January-April.html

Government orders inspections into 60 real estate firms 11/May/2017 Intellasia| The Saigon Times The government has asked the Ministry of Finance to hand over a list of 60 enterprises, most of them State-owned, that are carrying out real estate projects to the government Inspectorate in preparation for inspections into land management this year. In a previous official letter, the finance ministry submitted a long list of businesses and projects to the government, proposing prime minister Nguyen Xuan Phuc assign the government Inspectorate to check them. The ministry has also petitioned the government to ask provincial and municipal governments to suspend work on downtown high-rise building projects whose land use rights have been transferred without going through auctions, and report them to the government. In case the prime minister allows for transfer of land use rights without auction for certain projects, local governments must determine land value based on market prices. The ministry's list includes 60 State-owned and joint-stock firms with State stakes that are allowed to convert their land use purposes. The list is compiled according to a report of the general Department of Taxation conducted from July 2014 to November 2016. The land use right value in many instances has not yet been included in the value of many equitised enterprises. Some of these businesses have not held public auctions for land during their equitisation process, according to the ministry. The ministry said the evaluation of land prices used as a basis for collecting land use and rent fees is mainly dependent on consulting firms. However, their evaluations and their proposed prices are often below market levels. http://english.thesaigontimes.vn/53843/Government-orders-inspections-into-60-real-estate-firms.html

VN textile sector urged to diversify raw material import sources 11/May/2017 Intellasia| VNS The Vietnamese textile and garment industry needs to diversify its raw material import sources if it wants to develop, a senior industry figure has said. Nguyen Thi Tuyet Mai, deputy general secretary of Vietnam Textile and Garment (VITAS), said with exports of $28.5 billion last year, Vietnam is one of the five biggest exporters in the world. But to achieve this, the country imports large volumes of feedstock including yarn, fabric and others, she said. "Depending on one or two sources will limit manufacturers' production capacity and development. Seeking new sources is necessary for the industry to lessen its dependence on traditional sources in Asean and China." Members of VITAS and the HCM City Association of Garments, Textiles, Embroidery and Knitting (AGTEK) agreed that India is one of the best alternative choices. Pham Xuan Hong, chair of AGTEK, said many Vietnamese garment companies have visited India to explore cooperation opportunities and returned impressed with the country's garment and textile industry. Many raw materials available in India fit their needs, he said. "For a long time, Vietnam has imported garment and textile raw materials from China. It is now time to upgrade technologies as well as have more raw material sources." Mai said establishing cooperation with India is a good idea. Indian products have good quality and prices thanks to the free trade agreement signed between India and Asean, she said. Furthermore, garment and textile is among the products on which India would cut taxes in future, she said. "This is an opportunity for Vietnamese to find a new raw material source." The Indian consulate in HCM City has promised strong support for Vietnamese companies seeking to tie up with their Indian counterparts. The two governments have put garment and textile in the priority list for further development, it said. It hoped a large Vietnamese delegation would attend the 2017 Textile India, a garment and textile exhibition in Ahmedabad, India, from June 30 to July 2, saying there they could find all the products they need from yarn and fibre and cotton. The exhibition would also enable the Vietnamese companies to study the Indian garment and textile industry closely and identify new raw material sources, it added. http://bizhub.vn/news/vn-textile-sector-urged-to-diversify-raw-material-import-sources_286051.html

Indian firms eye strengthened textile and garment links with Vietnam 11/May/2017 Intellasia| VNA Textile and garment companies of India are looking to promote trade cooperation with Vietnamese enterprises, said Indian Consul general in HCM City Smita Pant at a press conference in HCM City on May 10 to introduce the Textiles India 2017, which is slated for the Vietnamese city from June 30-July 2. According to Smita Pant, textile and garment is one of the leading important industries that the two nations need to foster cooperation through promoting trade, attracting investment and increasing export turnover. Ronak Roughani, vice President of the Synthetic and Rayon Textile Export Promotion Council (SRTEPC) of India said apparel occupies a large proportion in India's exports. India's textile and garment industry has developed a complete product supply chain and the country is also one of suppliers of high-quality materials and fabric with competitive price in the world. The country's export turnover of textile and garment materials to Vietnam in recent years averagely increases about 20 percent a year. This is a good time for Vietnamese and Indian textile and garment firms to enhance links in investing, exporting materials and technical assistance for mutual benefit, he said. Dang Thi Tuyet Mai, vice general Secretary of the Vietnam Textile and Apparel Association (VITAS), said Vietnam is one of the five largest textile and garment exporters in the world, with its textile and garment export turnover hitting about 28.5 billion USD in 2016. However, the country is also one of the world's leading importers of fabric and materials. The shortage of high-quality materials for production is the biggest barrier to Vietnam's textile and garment industry, hindering the country from taking advantages of free trade agreements. Pham Xuan Hong, Chair of the HCM City Association of Garment Textile Embroidery and Knitting (AGTEK) said Vietnamese textile and garment firms appreciate the quality and competitive price of materials from India, stressing that cooperating with India businesses is an effective measure to diversify material supply resources for Vietnam. Vietnamese firms should intensify trade promotion programmes and participate in exhibitions and trade promotion events, he suggested, saying that these will offer opportunities for them to seek more material suppliers, and learning from effective business and production models. The programmes will also help Indian businesses make deeper inroad into Vietnamese market, he said. http://en.vietnamplus.vn/indian-firms-eye-strengthened-textile-and-garment-links-with- vietnam/111496.vnp

Hanoi leader pledges optimal conditions for foreign investors 11/May/2017 Intellasia| VOV Chair of the Hanoi City People's Committee Nguyen Duc Chung pledged the best possible conditions for foreign investors during separate receptions for European and Hong Kong (China) trade officials on May 10 in Hanoi. Meeting President of the European Chamber of Commerce in Vietnam Jens Ruebbert, Chung stated that the capital city places importance on calling for investment from European small- and medium-sized enterprises (SMEs) and groups. Hanoi is cooperating with European countries, such as the Netherlands and Germany, to develop agriculture and health care, deal with environment pollution, save electricity, and build urban areas and transport, he said. The city desire to take advantage of European investment in dealing with environment issues and urban transport infrastructure connectivity, he said, adding that the capital city also wants to share with European partners in building e-administration. Receiving Chair of the Hong Kong Trade Development Council (HKTDC) Vincent Lo the same day, Chung reiterates Vietnam's readiness to offer all possible favourable conditions for Hong Kong (China)'s enterprises to do business and regards Hong Kong as a gateway linking Vietnam with countries across the global and China as well. Chung said the city identifies transport as one of the three breakthroughs in its socio-economic development scheme for the next five years. Among 13 transport projects, Hanoi calls on Hong Kong businesses to invest in eight metro lines, and at the same time, in building satellite urban areas, dykes, waste treatment, environment monitoring stations, wastewater treatment infrastructure in traditional craft villages, and belt roads connecting with Quang Ninh, Lao Cai provinces and Hai Phong city. Hanoi wishes to join the global supply chain, attract more tourists from Hong Kong and China, and hopes that Hong Kong investors are interested in the retail system in Vietnam, Chung told his guest. Hanoi wants to continue collaboration with China, particularly with Hong Kong in SMEs management and managerial staff training. Vincent Lo, in turn, said Hong Kong is keen on infrastructure, urban development and belt road connectivity in Hanoi and that the HKDTC wants to know more about the grant of licenses to foreign bidders. Regarding this issue, Chung assured Hanoi's willingness to help investors establish wholly foreign- owned companies that could compete with domestic rivals on an equal footing. The municipal leader also updated Hong Kong guests about the construction of a garbage-fueled electricity generation system, and incentives for investors in the fields of environment protection, wastewater treatment, urban area design and green energy development. http://english.vov.vn/economy/hanoi-leader-pledges-optimal-conditions-for-foreign-investors- 349253.vov

Golf tourism on the agenda in Da Nang 11/May/2017 Intellasia| VNS Vietnam has 32 golf courses nationwide, and 60 others are planned, but golf tourism has yet to take off due to poor connections among travel agencies and golf tour operators. Deputy Head of Vietnam National Tourism Administration, Ngo Hoai Chung made the statement at an international forum on golf tourism during the sixth Asia Golf Tourism Convention (AGTC) in Da Nang yesterday. Chung said golfers accounted for a mere 0.5 per cent of the 10 million tourists visiting Vietnam in 2016. He said the figure was 2 per cent in Malaysia, while golfers accounted for 9 per cent of Thailand's 23 million tourist arrivals. "Links among travel agencies, golf courses operators and golf tournaments combined with MICE (Meetings, Incentives, conference, exhibition), caravan and business trips have been very poor," Chung said. "Vietnam should offer better conditions for golf tourists coming to local golf destinations, promote golf tournaments on social networks and connections with regional golf courses." Chung said the number of golf courses in Vietnam is modest in comparison to Indonesia (152 golf courses), Malaysia (230) and Thailand (253). He said central coastal provinces of Thua Thien-Hue, Nha Trang and Da Nang would be ideal places for golf course development. Le Van Kiem, vice chair of Vietnam Olympic committee, said Vietnam should establish a Tourism Golf Association to work with regional associations and tournaments. Deputy Governor of Policy and Planning Tourism Authority of Thailand, Santi Chudintra, said Vietnam and Thailand are very close, and the two countries could share information and experience in golf tourism development. Chudintra said, "Thailand has built values of Thailand's golf tourism industry including variety (accessible and facility of golf courses), fun (world class quality with reasonable price), and very Thai (Thai massage, spa, and food) service and hospitality." Da Nang earned $68 million in 2016 from golf tourism, and the city expects to increase the figure to $186 million in the next five years when three more golf courses open. The sixth AGTC, being hosted in Da Nang for the first time, has drawn 650 participants, of which 240 were golf tourism operators from 36 countries and territories, for the week long event. A meeting for 170 buyers, sellers, managers of real estate, hotels and media will be held at Furama resort today, while a golf tournament and a field trip will take place at Ba Na Hills Golf Club in Da Nang, Montgomerie Links in Quang Nam and Laguna Golf Lang Co in Thua Thien-Hue on May 10-12. According to the International Association of Golf Tour Operators, 169 golf tourism companies operating in Asia plan to expand into Vietnam. The International Association of Golf Tour Operators in cooperation with Da Nang's Tourism department has built a strategy to develop golf tourism for Da Nang in 2017-22. Da Nang and neighbouring provinces of Quang Nam and Thua Thien-Hue are popular sites in central Vietnam, with beautiful golf courses designed by Nick Faldo, Greg Norman, Collin Montgomerie and Luke Donald. Last year, the Ba Na Hills Golf Club in Da Nang was named Best New Golf Course in Asia and the Pacific at the Asian Golf Awards of the Asian Golf Association, and was first runner up as Best Golf Course in Vietnam. http://bizhub.vn/news/golf-tourism-on-the-agenda-in-da-nang_286028.html

SMEs turn to each other in mobile environment 11/May/2017 Intellasia| VNS Small and Medium Enterprises (SMEs) worldwide, including Vietnam, are turning to each other to learn and share ideas in a mobile economy. This is according to the latest Future of Business Report, conducted by Facebook, the OECD and the World Bank. The survey responses indicate insights on Business Confidence, Job Growth, International Trade and Gender Management as of March 2017. In the latest survey focusing on SMEs and Education, 42 per cent of businesses globally said they learn from each other, following online search (64 per cent), clearly indicating businesses are looking to each other to master the new mobile environment. In Vietnam, 53 per cent of SMEs said learning from each other is one of the primary ways to obtain information and get educated on mastering the new mobile environment, behind media (56 per cent) and online search (67 per cent). These businesses are, therefore, more confident. "Fifty eight per cent of businesses that are confident about the economy are learning from other businesses, whereas over half (56 per cent) of the businesses that are not confident are not," the report stated. It also said a supportive community can help businesses scale geographically. "Businesses that trade internationally learn from more sources and have a higher than the average number of business-related educational interests. They are also three times more likely to cite educational interests for better information on international trade," the report said. The report also found that nearly half of Vietnamese businesses that have added jobs in the past six months or plan to in the next six months also learned from other businesses. Launched in February 2016, the monthly survey provides a timely pulse on the economic environment in which businesses operate and identifies those businesses keen to share ideas, to help in informed decision- making at all levels and deliver insights that can help businesses grow. To date, nearly 200,000 SMEs, drawn from the 70 million businesses with an active Facebook page, in more than 40 countries have taken the survey. http://bizhub.vn/tech/smes-turn-to-each-other-in-mobile-environment_286054.html

Nha Trang faces severe scarcity of hotel rooms 11/May/2017 Intellasia| The Saigon Times Travel agencies are finding it difficult to secure enough hotel rooms in Nha Trang City, Khanh Hoa Province for domestic tourists in the upcoming summer holiday due to an upsurge of international arrivals. The strong growth of foreign visitor arrivals, especially from China and Russia, the province's two largest source markets, has led to an imbalance between guest room demand and supply. Three to four-star hotels, the favourite segment for domestic tourists, are almost fully booked in the summer. Many tour operators have had to divide large groups of tourists into smaller groups that will stay at many different hotels, or opt for outlying areas like Doc Let and Cam Ranh. However, these solutions are ineffective, so some travel firms have asked customers to visit other coastal destinations such as Mui Ne in Binh Thuan Province, Ba Ria-Vung Tau Province and Phu Yen Province. Tourists do not prefer one to two-star hotels where rooms are still available. Nguyen Ngoc An, deputy general director of Fiditour JSC, said that it has been hard to book hotel rooms in Nha Trang since early this year. Employees of the company have been unable to find enough rooms for large groups with each requiring about 50 rooms or so. About half of the company's customers have changed to other destinations, An added. Nguyen Van Thanh, vice chair of the Nha Trang - Khanh Hoa Tourism Association, also agreed that not only travel firms from other localities but also those in Nha Trang face the same problem. At a hotel of 150-200 rooms, for example, only 15-20 percent are available for domestic visitors. Thanh said that the sudden growth of international visitors has beaten all previous forecasts. Russian and Chinese tourists to the city this year may amount to 500,000 and one million respectively. Khanh Hoa Province now has about 25,000 hotel rooms including about 14,000 three to four-star rooms. According to data from Khanh Hoa Province's Department of Tourism, the province lured nearly 285,000 Chinese and 127,000 Russian tourists in the first quarter, a respective increase of over 2.6 and 2.5 times over the same period last year. http://english.thesaigontimes.vn/53851/Nha-Trang-faces-severe-scarcity-of-hotel-rooms.html

Non-healthcare enterprises look to open drugstores 11/May/2017 Intellasia| The Saigon Times Several enterprises active in other sectors than healthcare, including The Gioi Di Dong JSC and Digiworld JSC, have announced or planned to open pharmacies. The Gioi Di Dong said it would invest in the drug retail sector by acquiring or joining forces with experienced medical enterprises to open 15 to 20 drugstores. There are several favourable conditions for the company to enter the pharmaceutical market since it currently has 1,300 electronics retail stores nationwide, a variety of technology applications, and experience in retail business. Vietnamese people have become more health-conscious, so they are ready to spend more on healthcare. This is a chance for modern pharmaceutical retail chains to be expanded. Dr Truong Van Tuan, chair of the HCM City Pharmacist Association and lecturer at the HCM City University of Medicine and Pharmacy, said in developed countries, drugstore chains account for 70-80 percent of total drug sales while this proportion in Vietnam is small. Countries in Europe, America, and Southeast Asian nations such as the Philippines have chains of thousands of drugstores, including multinational drugstore chains. According to Tuan, there are currently some drugstore chains in HCM City such as Phano Pharmacy (60 stores), Medicare (45 stores), Pharmarcity (40 stores), Vistar (21 stores) and Eco (11 stores) among others. Some of them are planning to expand their operations. Particularly, Pharmarcity looks to have 500 drugstores nationwide over five years while Eco plans to open 80 stores in the next three years. Tuan said the pharmaceutical market will keep growing in the near future and the Ministry of Health has promoted the development of modern drugstore chains in accordance with the nation's healthcare regulations and market demand. http://english.thesaigontimes.vn/53852/Non-healthcare-enterprises-look-to-open-drugstores.html

Vietnam clamps down on pre-paid SIM cards 11/May/2017 Intellasia| Tuoitre News Vietnamese authorities have imposed stricter policies to manage the information of pre-paid SIM card users and have promised to apply harsher fines on service providers that violate the rule The new regulations were added to government decree No.49 on penalties for violations in telecommunications, IT, and radio frequencies, which are aimed at improving the management of the sale and use of pre-paid SIM cards in the country. According to the new regulations, individuals are no longer limited to having no more than three SIM cards for each mobile network as stated previously. However, users will need to perform a more thorough and complicated procedure when registering for each service. For the first three SIM cards of each service provider, users are required to present the necessary documents and sign a confirmation letter. From the fourth SIM card on, buyers will then have to sign a contract with their mobile network operator. In order to register for a SIM card, users must now submit original copies of passports for foreigners, or IDs for Vietnamese citizens. Children under 14 years old will require the signature of their parent or guardian to sign up for a service. Mobile operators have the right to refuse deals with their customers if they fail to present sufficient paperwork as stated in the new regulations. They are also in charge of reminding existing subscribers to fill in the compulsory information, if they lack any. If a user fails to submit the necessary documents within 15 days of the first reminder, his one-way telecommunication services will be ceased, and his two-way services will be halted after a subsequent 15 days. The subscription will be terminated after the next 30 days if the client does not provide the necessary information, after which the mobile number will be offered to other users. Sterner penalties for operators Local mobile network operators are also subject to fines of VND800,000 (US$35) to VND1 million ($43.8) for each subscription they offer without asking for the full information of users. This fine shall not exceed VND200 million ($8,774) for each company, the regulation stated. Service providers are also required to keep their clients' information confidential as per the law. Operators will be fined between VND80 million ($3,509) and VND100 million ($4,387) if they do not sign proper contracts with a subscriber who wishes to buy more than three SIM cards. A VND30 million ($1,316) to VND40 million ($1,754) penalty will be imposed on those who offer SIM cards without asking for a subscriber's personal documents, or trade a subscription that has already been registered. The new regulation was implemented on April 24 following a proposal of the Ministry of Information and Communications, while the fines will begin being imposed from July 24. http://tuoitrenews.vn/business/40916/vietnam-clamps-down-on-prepaid-sim-cards

Insiders question Vietnam's proposed measures to reduce alcohol impact 11/May/2017 Intellasia| Tuoitre News Vietnam wants to levy a number of bans on the sale, marketing and consumption of beer and liquor, but few of them seem viable, industry insiders have claimed. The Ministry of Health is drafting a law on alleviating the impact of alcohol, which includes proposals such as restricting advertising by brewers and banning them from granting scholarships. However, experts and industry insiders have said that these bans won't work and are urging the health ministry to think of more practical and effective measures. According to the bill, beer and alcoholic drinks makers should not be allowed to launch promotional campaigns aimed directly at consumers. The health ministry also wants to ban all advertising and marketing activities for any beer or liquor products with an alcohol content of more than 15 percent. Advertisements for products below this alcohol content should be banned on public transportation and outdoor billboards. The draft law also proposes a prohibition on beer and liquor manufacturers from sponsoring events and programmes in the fields of education, culture, arts, education, healthcare and sports, and even suggests banning beer and alcohol from weddings and festivals. Besides all those bans, the health ministry also wants to have all alcohol makers contribute to a fund meant to "increase community health". Infeasible and ineffective The proposed measures to lessen the effects of alcohol in the bill have been met with immediate objections from the alcohol industry. Nguyen Van Viet, chair of the Vietnam Beverage Association, said it is unreasonable to impose a uniform ban on beer and alcoholic beverages. "Learning from other countries, banning beer and alcohol advertising does nothing to reduce consumption," Viet said. Liquor ads are banned in many countries, but publicity activities for beer products are allowed under strict management, including time, place and content. "So the proposal to ban all kinds of advertisements for both beer and liquor is totally inappropriate," he said. An official from the Finance and Budget Committee under the lawmaking National Assembly, also said the proposed bans go against the law on advertising. "The draft law focuses too much on banning this and prohibiting that, but mentions little about possible policies to increase the awareness of drinkers," he said on condition of anonymity. Matt Wilson, corporate affairs director at Heineken Vietnam, said banning beer ads may even increase the consumption of beer. Once brewers no longer have to waste money on ads, they will be able to slash prices, boosting consumption even further, Wilson warned. The suggestion to prevent beer and liquor makers from doing charity has also been criticised. "This proposition is too extreme and will impact the corporate social responsibility of beer makers," one leader of a major Vietnamese beer maker said. "Should a ban be enforced, a number of existing sponsorship and charitable works, such as providing scholarships for needy students and building homes for underprivileged people will be stopped, affecting the beneficiaries." Ngo Quy Linh, head of law and public relations with wine wholesaler Pernod Ricard Vietnam, said the proposal to mandate beer and liquor makers to contribute to a 'public health fund' must be reviewed. Linh noted that beer and liquor makers are already forced to pay a 60 percent special consumption tax, with that rate scheduled to increase to 65 percent in 2018. http://tuoitrenews.vn/business/40915/insiders-question-vietnams-proposed-measures-to-reduce-alcohol- impact

Business Briefs May 11, 2017 11/May/2017 Intellasia | * CII Infrastructure Investment Company (CEE) will begin trading 41.S million shares on the Hochiminh Stock Exchange on May IS at the reference price ofVND22,300 each. * Viet Dragon Securities Company is seeking approval to float 70 million shares on the HCM City market. * Luong Tri Thin, chair and general director ofDatXanh Real Estate Service & Construction Corporation (DXG), has registered to buy five million DXG shares to spur his holding from 6.8 percent to 8.8 percent. * Chubb Life Vietnam Company inaugurated a transaction office in Phan Thiet City on Monday to house nearly 3S0 staff. The insurer now has 46 offices in 37 provinces and cities with over 20,SOO sales representatives. * PetroVietnam Power Nhon Trach 2 Company (NT2) has announced it will pay the remaining 2016 cash dividend ofVND 1,600 per share. In July and December 2016, NT2 made two interim cash payments of VNDl,SOO and VNDSOO per share respectively. This final dividend payment therefore brings the total 2016 dividend to VND3,600, providing a 12 percent yield on the current share price of around VND30,OOO, well above 8.6 percent in 201S. According to a resolution adopted at its 2017 general meeting, the record date is May 2S while the company will make payments on June IS, said Viet Capital Securities Company. * Kien Giang Brick Tile Company (KBT) plans to issue over I.S million shares at VNDll,OOO each to raise its capital from VND30 billion to VND4S billion. The firm will offer the shares to existing shareholders at a 2-for-l ratio, with the proceeds to go to the upgrade of a factory from 60 to 90 million bricks a year. In 2016, KBT reported VND74.S billion in revenue and VND13.7 billion in after-tax profit, up 21 percent and double the previous year respectively. This year, the firm targets revenue ofVND69 billion and net profit of around VND7.S billion. * Vicostone Company (VCS) plans to issue 20 million shares to pay a share dividend at a 100-for-33.33 ratio for 2016. The issuance, which aims to help the company raise its registered capital to VND800 billion, will be made in the second or third quarter of2017.

Microsoft provides free cloud computing programme for Vietnamese NGOs and NPOs 11/May/2017 Intellasia| VNS Microsoft and the Vietnam Union of Science and Technology Association (VUSTA) co-oragnised the "Technology for Good Day" event in Hanoi on May 10 to introduce a free cloud computing programme to Vietnamese non-governmental and non-profit organisations. The event came in response to Microsoft's global Modern Non-profit Campaign. Under the programme, organisations will able to use Office 365 and Microsoft Azure for free, while other smart tools such as Dynamics CRM and Power BI will be provided at special rates. The application of Microsoft technology will bring benefits in five areas: communications, mobile, smart, reliability and efficiency. Nghiem Vu Khai, VUSTA vice chair said that the fourth industrial revolution is changing the ways we work, and Microsoft's technology support is valuable and practical for social organisations, helping improve the performance help organisations carry out community initiatives and projects. Nguyen Ba Quynh, Microsoft's director of government and public sector, said they believe that by using Microsoft-provided technologies, Vietnamese organisations will be more efficient, contributing to the well- being of disadvantaged communities and the socio-economic development of Vietnam. At the event, VUSTA and Microsoft awarded two winners of the Tech4good Foster Innovation competition for their best ideas in technology application to optimise efficiency at work: the Green Innovation and Development Centre (GreenID) and the centre for Sustainable Development of Community (CSC). The competition, held by VUSTA and Microsoft in March and April, aimed to encourage organisations to raise issues and seek solutions with technology. http://bizhub.vn/tech/microsoft-provides-free-cloud-computing-programme-for-vietnamese-ngos-and- npos_286053.html

Amazon provides ideal channel for Vietnam's apparel sale in EU 11/May/2017 Intellasia| VNA Textile and garment businesses of Vietnam hold considerable opportunities to sell their products to the European Union (EU) via the world's leading online shopping channel Amazon, foreign experts said at a seminar in Hanoi on May 10. At the event, held by the Vietnam Textile and Apparel Association, Vietnamese businesses were provided with advice about e-commerce trends via Amazon by experts from Germany's Vorwarts GmbH company. Vorwarts GmbH CEO Andre M. Åslund cited statistics that up to 76 percent of consumers use mobile phones to shop online, and 50 percent of mobile phone users shop via Amazon. He said the quality of Vietnam's garment products completely satisfies EU consumers. Many enterprises in Vietnam and Asia often sell their products to the EU via intermediaries or outlets. However, they can cut down this intermediary step if products are sold on Amazon, thereby reducing cost and improving Vietnamese apparel's competitiveness in EU markets. Consumers' behaviours have changed much, he noted, elaborating that instead of being solely based on the prestige, their trust in a product is now based on many other tools such as the product review and description, or other consumers' assessment. Therefore, businesses should pay more attention to quality information provision and product quality so as to increase good assessments. Those evaluations will in turn encourage EU consumers to buy Vietnamese products, Åslund said. He also noted some challenges facing businesses when they want to sell goods via Amazon. He asked them to comply with regulations of EU markets and improve product design to meet consumers' taste. Once consumers are satisfied, they will introduce products they bought to others, making Vietnamese goods known more widely, the German expert added. http://en.vietnamplus.vn/amazon-provides-ideal-channel-for-vietnams-apparel-sale-in-eu/111501.vnp

Viettel targets more foreign markets 11/May/2017 Intellasia| VNA The military-run mobile carrier Viettel is planning to expand its investments to Indonesia and Nigeria, two countries with large populations, group leaders told the annual general meeting of Viettel Global, a subsidiary of the Viettel Group. As of June 2016, the populations of Indonesia and Nigeria numbered 258 million and 187 million, respectively. As per the company's plan, Viettel will penetrate these markets by bidding for an operation licence and entering joint ventures or striking acquisition deals, nearly doubling the total population of its existing investment markets. Indonesia, the biggest Southeast Asian economy, is home to 70 percent of the region's population but only 58 percent of its residents are 3G or 4G subscribers. In Nigeria, Africa's most populated country, 3G subscriptions are also far from booming. Investments in the two countries would create conditions for Viettel to continue expanding to other regions, according to the group. Previously, Viettel Global submitted the investment plans for Nigeria and Indonesia to its annual general shareholders' meeting by the end of April 2017 for approval. Viettel Global targeted revenue of over 1.3 billion USD this year, up 29 percent year-on-year, with pre- tax profit of 5 million USD. The group had 24 million subscribers last year, earning revenue of 1.04 billion USD, down 21 percent compared to 2015. Sharp declines were seen in two markets - Mozambique and Burundi - due to exchange rate fluctuations. Other markets, however, continued to see revenue growth, such as Tanzania, with 1.34 percent, Cameroon with 43 percent, Mozambique with 7 percent, and Haiti with 6 percent. The telecom provider currently has operations in nine overseas markets including Laos, Cambodia, East Timor, Cameroon, Haiti, Mozambique, Burundi, Peru, and Tanzania, with operations in Myanmar expected to begin in the first quarter of next year. Viettel Global has one of the largest overseas investments among Vietnamese enterprises. Viettel earned 226.5 trillion VND in revenue in 2016, equal to 100 percent of its annual plan, while pre- tax profit was 43.2 trillion VND, or 101 percent of its annual plan. It also contributed 40.4 trillion VND to the State budget. The military-run company had 7.4 million new subscribers as at the end of 2016, bringing its total to 90 million. Viettel wins largest smart project in Laos Unitel, a joint venture between Vietnamese Viettel Global Joint Stock Company and Laos Asia Telecom, has won the contract to create an information system and management register of civil status the largest smart society project in Laos. This project offers local citizens a chance to electronically register their information on births, marriages and death records. It has been invested by the Laos Ministry of Interior, to establish a solid foundation for its population to connect with relevant agencies via a system of registration of all births and deaths, birth certificates, death certificates, as well as the compilation and dissemination of statistics, including causes of death, marriage, divorce, separations, adoptions, immigration, immigrants and changes of residence. This is not an independent system, but part of the overall view of the country's population. Launched in October 2009, Unitel defeated five strong rivals who provide IT systems for Laos' Ministries and other units. Unitel collaborated with Solution Centre of Information Technology and Telecommunications Viettel to prepare negotiations, construction records and presentation solutions to win the package. It is expected that the Laos Ministry of Interior will sign the contract in May to build the project's Phase 1 in three localities with 31 districts, including the capital Vientiane, Luang Prabang and Champassack. Viettel, the military-run telecom group, said its brand names have been seen in many foreign markets, showing its strong commitment to ensuring ICT solutions for governments, organisations and businesses in those countries it has invested in. http://en.vietnamplus.vn/viettel-targets-more-foreign-markets/111474.vnp

VNA, Jetstar Pacific operate from new Da Nang terminal 11/May/2017 Intellasia| VNS All international flights of the national carrier Vietnam Airlines landing in and departing from Da Nang Airport were moved from the old terminal 1 (T1) to new terminal 2 (T2) as of May 9. According to a press release from Vietnam Airlines, the carrier will open 22 counters on the second floor on the left of T2. More counters will be added to the right of the terminal if required. The counter's opening time is still three hours before departure and the closing time is 50 minutes before departure. Meanwhile, Jetstar Pacific international flights will be served at T2 from May 11. Jetstar Pacific and Jetstar Group has 24 international flights to and from Da Nang Airport every week, including regular flights between the central city and Taipei, Hong Kong, and Singapore, operated by Jetstar Asia. The newly-opened T2 is located near T1. It is designed and equipped with modern technologies, covering 82 counters for check-in, check-out, migration and immigration and 10 boarding gates, which all have a capacity to serve six million passengers per year. http://bizhub.vn/news/vna-jetstar-pacific-operate-from-new-da-nang-terminal_286047.html

Master scheme on Vung Tau city adjusted 11/May/2017 Intellasia| VGP The PM has ratified adjustments to the development planning of Vung Tau city by 2035. The planning aims to convert Vung Tau city into a national centre of tourism, finance, and trade of regional and international standards. It will develop the maritime economy and become an environmentally friendly city. Under the planning, Vung Tau city has a total area of 15,000 hectares. The document targets to review urban planning areas, land funds; supplement urban designs; make strategically environment evaluation; respond to climate change and sea level rise; build a public transport system and urban underground system; and install an urban lighting system. The planning sets to propose development orientations on ecological farming and high-tech centers. The document also targets to analyse advantages and disadvantages of the city's geographical position as it is located next to HCM City, the biggest metropolis in Vietnam. http://www.vir.com.vn/master-scheme-on-vung-tau-city-adjusted.html

Phu My Hung and Japanese developers unveil the second phase of Midtown 11/May/2017 Intellasia| Vnexpress Phu My Hung and Japanese developers unveil the second phase of Midtown Over 600 participants have gathered at the launch of the second apartment project in Phu My Hung Midtown complex, officially named The Symphony. Phu My Hung Midtown is the first project developed by Phu My Hung in partnership with three top Japanese real estate developers, along with design and planning teams from Singapore, Malaysia and Thailand. Following the success of The Grande with all units sold out, The Symphony is the second apartment project of the Phu My Hung Midtown complex to be introduced to the market. Performing at the ceremony are the Vietnamese circus duo Quoc Co and Quoc Nghiep, who made international headlines with their award-winning performance called "The Strength of the Arms". Through the performance, the project's developer said it would send a message that the Phu My Hung Midtown complex was a result of cooperation of many renowned real estate, design and planning partners. http://e.vnexpress.net/projects/phu-my-hung-and-japanese-developers-unveil-the-second-phase-of- midtown-3580719/index.html

Nghe An: FLC to invest in $220m resort complex 11/May/2017 Intellasia| VNS Property developer FLC Group plans to invest in a VND5 trillion (US$220 million) resort and entertainment complex in central Nghe An Province's Nghi Loc District. The provincial People's Committee and FLC held a meeting on Monday to discuss the construction of the project. On February 19, the two sides signed a memorandum of understanding on the investment for the project. Covering an area of 570ha, the complex is expected to have a five-star hotel with 1,000 rooms, a seaside resort, villas and golf courses, as well as a 1,500 seat international convention and entertainment area. The complex is situated in a favourable location in terms of other neighbouring localities, with beautiful beaches and convenient transport. The complex will promote the district's tourism in particular and the province in general. Trinh Van Quyet, FLC's chair, asked the province to quickly carry out land clearance for the group, plan surrounding infrastructure and create favourable conditions for the project. FLC is committed to starting the complex's construction as soon as the province completes land clearance, Quyet said. The province's leaders have pledged to support and facilitate the investor to complete necessary procedures. According, they will review the entire proposed area for the project. FLC Nghe An will be the group's seventh investment in a complex, following FLC Sam Son, FLC Quy Nhon, FLC Vinh Phuc and FLC Ha Long, as we well FLC Do Son and FLC Quang Binh. http://bizhub.vn/property/nghe-an-flc-to-invest-in-us220m-resort-complex_286049.html

Quang Tri speeds up Huong Linh 2 wind power project 11/May/2017 Intellasia| VNA The Huong Linh 2 wind power plant, the first of its kind in Quang Tri and in the north central region, will join the national grid on May 15, one year ahead of schedule. The construction of the plant began in Huong Linh commune, Huong Hoa district, in 2015, at the cost of more than 1.4 trillion VND (61.57 million USD). The wind farm comprises 15 turbines, with combined capacity reaching 30MW. Five of the turbines are ready to operate, while the rest are being installed for a test run of 72 hours before joining the national grid. Other completed facilities include an 110kV transformer station and 22kV and 110kV transmission lines. Nguyen Quan Chinh, vice Chair of the Quang Tri People's Committee, said Huong Linh 2's early operation will boost not only the national supply of clean energy but also the local economic growth. Also under construction in the commune is the 30MW Huong Linh 1 wind power plant, which spans 15 hectares. Huong Hoa, Gio Linh and Con Co districts have been earmarked for the development of wind-power in Quang Tri toward 2020. http://en.vietnamplus.vn/quang-tri-speeds-up-huong-linh-2-wind-power-project/111495.vnp

Alphanam to build Muong Hoa Cultural Park in Sapa 11/May/2017 Intellasia| VN Economic Times Northern hill town to have new cultural park in Muong Hoa Valley before 2020. Recognising the potential of Sapa as a travel destination for both foreign and local visitors, the Alphanam Group will build the Muong Hoa Cultural Park in the town with the aim of providing a place full of cultural sites, diverse activities, accommodation, and public facilities. Its architecture will highlight the beautiful natural surroundings as well as the unique cultural heritage of Sapa's Muong Hoa Valley. According to the plan, Alphanam will invite two partners to jointly carry out the 100-ha project: the DPA Singapore Designing Company and Marriott International Inc. The Cultural Park is expected to be completed before 2020. It will be designed in harmony with nature, the local terrain, and the local community, and will provide visitors with unique experiences highlighting the history, cultural heritage, and human values of five ethnic minorities living in the valley. At an elevation of about 1,500 meters (4,921 feet) above sea level, Sapa is known for its terraced rice fields and trekking trails. The harvest season in October is amazing for both sightseeing and trekking, with beautiful yellow rice paddy fields. It was recently listed in the Top 10 rising destinations in Asia in 2017, by popular travel website TripAdvisor. The Muong Hoa Valley is about 14 km from Sapa is famed for its breathtaking scenery and is the largest rice-growing area locally. Treks are available along the Muong Hoa River, snaking through the valley and through mountains with strangely-carved stones. http://vneconomictimes.com/article/biz-traveler/alphanam-to-build-muong-hoa-cultural-park-in-sapa

Besra banished from Bong Mieu gold mine 11/May/2017 Intellasia| VIR The authorities of the central province of Quang Nam said that they would not propose the Ministry of Natural Resources and Environment to license Bong Mieu Gold Mining Company Ltd (BMGMC), a subsidiary of Canadian company Besra Gold Inc., to exploit Bong Mieu gold mine again. The Quang Nam People's Committee recently released the official decision of deputy Chair Huynh Khanh Toan regarding Besra's petition on its mining activity at Bong Mieu gold mine. The license to exploit the gold mine that was earlier issued to Bong Mieu Gold Mining Company Ltd (BMGMC) by the Ministry of Heavy Industries (now the Ministry of Industry and Trade) in 1997 expired on May 3, 2016. However, the company continued mining operations despite the authorities and related agencies' repeated warnings. The company submitted a request to the Department of Biology and Minerals asking for an extension, but was told that there is no basis to grant its request. Throughout its operation, the company has incurred millions of dollars in tax debts and fines for late payment, as well as debts toward its business partners. The committee said that the province had issued many policies to help the company solve its difficulties and restructure in order to restore operations again and earn an income in order to pay the tax arrears and fines to the government as well as the debts to equipment suppliers. However, the company refused to cooperate and was slow to build a restructuring plan, failing to pay its debts. Additionally, when the committee asked it to stop operations, it did not comply. Therefore, at the recent meeting regarding BMGMC's proposal, Toan said the committee would not propose the Ministry of Natural Resources and Environment to issue a new license. "The Quang Nam People's Committee asked that the company and Besra Gold Inc. proceed according to the law when its mining license expires, which means it has to protect unexploited resources in the area and carry out procedures to close the mine, as well as restore the environment and the land to their previous states," Toan said. Also in Quang Nam, Besra Gold Inc. received the license to exploit Phuoc Son mine in 1999. On April 3, 2017, Besra Gold Inc announced that it has entered into an agreement to sell all of its existing interests in Vietnam to a new corporate entity to be established by former in-country senior managers Paul and David Seton, to assume existing trade creditor, tax, and remediation liabilities totalling over $25 million. The Vietnamese assets comprise the Bong Mieu and Phuoc Son mines in Quang Nam province and Besra Vietnam Limited, the in-country operating company. Regarding the sale, Jon Morda, an independent director at Besra, said, "During negotiations to secure refinancing of the company, our investors had come to a very firm conclusion that they were not interested in taking on the Vietnamese assets with associated creditor and tax liabilities, risks, and the clear market antipathy to Vietnam. The significant unresolved licensing issues and remediation liabilities with the operations there and difficult regulatory environment were beyond the investors' risk tolerance threshold. As Vietnam is likely to continue to present on-going challenges to regular production under a sensible and predictable fiscal regime, a decision was taken by the committee of independent directors to divest the Vietnamese assets." The agreement will be put to shareholders for approval at a meeting to be held on May 23, 2017. "Completion of the agreement will establish Besra as a gold exploration and development company with a focus on the highly prospective gold field situated at Bau in East Malaysia," said the statement posted on the company's website. Vietnam has had a lot of troubles with Besra. It is unclear whether Malaysia would suffer through a similar vicissitudes as Vietnam if it licenses Besra to mine the Bau mine. http://www.vir.com.vn/besra-banished-from-bong-mieu-gold-mine.html

Grab introduces GrabShare carpooling service to alleviate traffic 11/May/2017 Intellasia| VIR Grab launched Vietnam's first on-demand carpooling service on May 9 to tackle traffic congestion in Vietnam. Traffic congestions are an inescapable condition in large and growing urban areas like HCM City. The municipal authorities have made several attempts to curb congestions, like promoting public transport, expanding infrastructure, and transforming urban spaces. However, the majority of these measures has only proved effective in the short-term rather than solving the roots of the problem. According to transport expert Pham Sanh, the city should embrace more comprehensive solutions to deal with the problem shared by all major metropolitan regions. Carpooling in particular is an extension of the new sharing economy, which is becoming more popular around the world. Carpooling could be the best option to take cars off the road and lower the potential for traffic chaos. The launch of Vietnam's first on-demand carpooling service GrabShare is expected to make a difference by lowering the number of empty vehicles on the road and improving traffic flow. In fact, GrabShare has received positive feedbacks from customers in neighbouring markets like Singapore and Malaysia. GrabShare relies on existing GrabCars to provide passengers up to 30 per cent cheaper rides from standard GrabCar fares, while helping drivers earn more by completing two passenger bookings in a single trip. By encouraging passengers to share their car rides, GrabShare matches two bookings in one trip to maximise a vehicle's capacity, thus reducing the number of cars, cutting down congestions and carbon emissions with a single strike. In addition, carpooling gives people an easy way to share the costs of their daily commute and maximise cost-efficiency. GrabShare's matching algorithm ensures passengers get to their destinations in the shortest possible time. The algorithm calculates and determines a match by factoring in the closest available drivers, travel time, the overlapping of trip routes, detour distances, and current traffic conditions before sequencing pick-ups and drop-offs. To get passengers quickly to their destinations, GrabShare pairs two passenger bookings with similar trip routes within a single trip. Passengers will only experience a maximum of two stops before reaching their destinations. For example, if Passenger A commences the ride and is paired with Passenger B, depending on the most efficient route, Passenger A may first stop to pick up and then drop off Passenger B. Jerry Lim, Grab Vietnam's country head, said that GrabShare gets passengers to carpool to their destinations at a more pocket-friendly fare with minimal detours, while reducing the need to put more cars on the roads. "We are proud to deliver Vietnam's first-ever commercial carpooling solution that we have continuously iterated and improved to provide Southeast Asia's best carpool experience for passengers and drivers. We are confident that GrabShare enables us to meet Vietnam's growing passenger demand for more affordable on-demand transportation while helping our drivers earn more," he said. Architect Kim Cuong recommended that Grab should pilot GrabShare in the most congested areas so commuters will see the benefits of car-sharing services in reducing privately-held vehicles and saving transportation expenses. Grab should clarify how carpooling contributes to better traffic flow and reduce carbon footprint, which will in turn encourage customers to support the sustainable development of the city. Meanwhile, Khuat Viet Hung, vice president of the National Traffic Safety Committee said that traffic is keeping worsen due to a growing usage of private cars in large urban areas. The Ministry of Transport (MoT) and provincial authorities have joined force to curb congestion by suspending pilot plan to apply technology in contracted passenger transport businesses like Uber and Grab. With the addition of GrabShare, Grab has made an additional contribution to traffic management while meeting people's demand. He hoped that GrabShare will lower the usage of privately-held vehicles on the road by increasing the number of commuters on the same ride, which will help ease traffic chaos at peak hour. In addition, the application of GrabShare could be the best solution to manage unregulated ride-hailing services like illegal cabs in major cities like Hanoi and HCM City. The community car-sharing service like GrabShare could be the best solution for MoT and relevant agencies to manage contracted vehicles and passenger cars, boosting transparency and healthy competition in the market. Grab officially launched GrabShare on May 9. GrabShare uses GrabCar (private hire car-hailing) to provide the company's fourth transport option in Vietnam complementing GrabTaxi (taxi-hailing) and GrabBike (private hire motorbike-hailing). GrabShare is a testament to Grab's commitment to developing tailored solutions to solve local transport challenges and improve people's lives. First introduced in Singapore last December, GrabShare has been launched across Southeast Asia and is now also available in the Philippines, Malaysia, and Indonesia. GrabShare has proven effective in attracting new passengers to the Grab platform. In the first five months since its first launch, Grab has completed more than 8 million GrabShare rides, for a total distance of over 72 million kilometres. Along with the rapid passenger adoption of GrabShare, Grab has seen an improvement in passenger matching rate by 50 per cent in the three new cities that launched GrabShare in 2017. GrabShare is also helping to increase drivers' monthly incomes by 15 per cent on average. Lim said that Grab's goal is to make on-demand transportation readily available and affordable so that people would no longer need to purchase and maintain a vehicle for their personal use. GrabShare enables the company's drivers to serve more passengers, especially during peak hours when demand can be three times higher than usual. Starting today, passengers can choose between four transport services GrabTaxi, GrabCar, GrabBike, and GrabShare to suit their travel preferences, time, and budget. Following the launch in HCM City, GrabShare will next be beta-tested in Hanoi to assess the margin it can help ease traffic congestions and provide more affordable transport options to passengers. With a launch expected in June, Hanoi will be the sixth city where GrabShare is available. http://www.vir.com.vn/grab-introduces-grabshare-carpooling-service-to-alleviate-traffic-congestion-in- vietnam.html

Hi-quality human resource deal for hospitality sector 11/May/2017 Intellasia| VNS The Empire Group and local universities and colleges on Tuesday inked an agreement on manpower training in the hospitalty sector to meet the demand for 10,000 jobs in 2020. It's one of the largest cooperation deals on human resources training between a hospitality group and local education centres in the city. Under the plan, five universities and colleges, including the Economics University, Dong A and Duy Tan colleges, Pegasus College and Vietnam-Australia College will start practical education programmes on tourism services with support from the Empire Group. Vice director of the city's tourism department, Nguyen Xuan Binh, said the city's hospitality sector would face a deficiency of skilled manpower in 2020 when it would need 27,000 employees at hotels and resorts alone. Binh said number rooms of hotel and resort projects would increase from 26,000 to 62,000 in 2030. Da Nang City's hospitality sector currently employs 14,000 people, 40 per cent of them skilled. The 12 colleges and vocational centres in the region can only train around 5,000 students a year. Deputy general director of Empire Group, Trinh Viet Hung, said the group committed to employing qualified local labourers from the tourism training centres. The hospitality group will employ 2,000 workers at the $622million CocoBay project the first entertainment-hospitality complex in the central region between July and September this year. "We plans to employ 10,000 skilled labourers at hotel resort and entertainment centres at the CocoBay complex in 2020," Hung said, adding that the agreement would help boost high-quality human resource training system in the city. The Empire Group has also signed a strategy cooperation deal with Dream Hotel Group of the US and Louvre Hotels Group of France for Empire hospitality management in Vietnam. The city hosted 5.6 million tourists last year, 1.67 million of them foreigners. Da Nang has so far developed 16 tourist property projects, consisting of 749 villas, of which 609 are for sale and 140 for lease. http://bizhub.vn/news/hi-quality-human-resource-deal-for-hospitality-sector_286052.html

Can Tho seeks ways to export bananas to Republic of Korea 11/May/2017 Intellasia| VNA The Mekong Delta city of Can Tho and a Korean company, which provides fresh fruits and agricultural products for supermarkets and commercial centres, discussed ways to export local bananas to the Republic of Korea (RoK) on May 10. General director of the Hand&Hand Limited Company Kim Min said that his company has managed a lot of tropical fruit farms in China, Thailand, Indonesia, Malaysia and the Philippines. It also opened a representative office in HCM City in 2015 and signed contracts on planting fruit trees for export with most of southeastern provinces, such as Dong Nai, Tay Ninh, Binh Duong and Binh Phuoc. However, the company has yet to find a suitable partner in the southwestern region which is considered a fruit granary of Vietnam and Southeast Asia, he said, adding that it is paying attention to Can Tho as the city is the region's economic centre and boasts rich land for agricultural production. Hand&Hand set a target of developing an at-least-300ha-banana farm in Vietnam by 2022 with a total investment of 6 million USD and with a hope for 10 million USD per year and generating 1,000 jobs, he added. Vice Chair of the municipal People's Committee Truong Quang Hoai Nam recommended the Song Hau Farm in Dong Nghiep commune, Thoi Lai district to the RoK company as the more than 6,000 ha farm is currently Can Tho's main exported rice field and suitable to be expanded to banana cultivation. Kim Min said that the company plans to sign land rent contracts with farmers and be responsible for all planting and production process. It will also support farmers in gaining access to advanced planting technologies following GlobalGAP standards. However, deputy director of the municipal Department of Natural Resources and Environment suggested establishing collectives to represent farmers to sign contracts and work with the company. http://en.vietnamplus.vn/can-tho-seeks-ways-to-export-bananas-to-republic-of-korea/111500.vnp

HCM City expo to showcase new environment, energy technologies 11/May/2017 Intellasia| VNS The three-day 9th Vietnam Environment and Energy Tech opens in HCM City on May 11. Some 150 companies from China, Japan, South Korea, Taiwan, and Vietnam will set up 260 booths to display their latest technologies in wastewater treatment, air and soilmanagement, groundwater management, and electricity and gas efficiency. Entech comes to HCM City for the first time after being organised in Hanoi since 2009. It is expected to attract 32,000 visitors and achieve a turnover of $37 million. "We started to organise Entech in Vietnam when we found that many Vietnamese were concerned about environmental and energy technologies when they took part in our exhibition in Busan," Jaehan Shin, manager of the Busan Exhibition & Convention Centre, the organiser of the event, said. "This year South Korea has 107 companies with 130 booths at the event, the biggest number ever." It will be held at the Sai Gon Exhibition and Convention Centre in District 7. http://bizhub.vn/news/hcm-city-expo-to-showcase-new-environment-energy-technologies_286050.html

2017 Mekong Beauty Show eyes 4 emerging markets 11/May/2017 Intellasia| VNS Leading international exhibition organiser Informa has joined hands with Kintex, a leading K-beauty show organiser from South Korea, to launch the Mekong Beauty Show in HCM City from June 15-17. Mekong Beauty Show, which will be held on an area of 10,000 square metres at the Saigon Exhibition and Convention centre (SECC) in District 7, will be an exclusive opportunity to gain exposure, find new partners and set up strategic global alliances in the four emerging Mekong countries: Vietnam, Cambodia, Laos, and Myanmar. According to an IMF forecast, the four countries are expected to have a combined GDP of $441 billion by 2020. The region is also an emerging market in the consumer beauty and personal care products, with average annual growth of 30 per cent in the last few years. The only international business-to-business beauty exhibition in Vietnam will feature more than 200 exhibitors from Europe, South Korea, Thailand, Singapore, Japan, China, Taiwan, and Vietnam. The expo will be a comprehensive international business platform for industry players in the entire supply chain covering beauty and cosmetics, hair and nails, herbal and health, and OEM and packaging. The Korean beauty industry will be among the most important drivers of the event. South Korea is the leader in the Asian beauty market based on its reputation for quality and safe ingredients and trendsetting marketing and packaging. A delegation of 300 brands from South Korea will showcase K-beauty at the exhibition. There will be various interesting onsite activities to explore the international beauty world. The expo from June 15 to 17 is expected to attract more than 10,000 trade visitors and 120 VIP buyers. K-Beauty trend The Korea Health Industry Development Institute (KHIDI) is going to launch its 2017 K-Beauty Global Empowerment Conference in Việt Nam at the Mekong Beauty Show. The annual event, which gathers Korean pop stars, top Korean cosmetics brands and others will hold forth on the latest K-beauty trends and analyse Korean beauty stars' styling. "K-Beauty exhibitors have already achieved remarkable success at K-Beauty Expo's first international foray in Bangkok," Dominic OH, division director of KINTEX, said. "The Mekong Beauty Show will be the best opportunity to showcase the latest K-beauty and global beauty trends to the four Mekong countries." Top South Korean models will perform at the show using the most popular K-beauty make-up styles and also hold onsite fitness sessions. Vietnam Beauty Distributor & Retailer Club With support from Saigon Cosmetics Corporation, Medicare, Nielsen Vietnam, Beautystreams and Centdegres, Mekong Beauty Show is aiming to gather top retailers and distributors and provide them with information and opportunities for cooperation. It is important to create a strong community of distributors and retail chains in Vietnam. Consumers are changing every day and to catch their attention and build brand awareness, all products should focus on the marketing and branding strategy. So the expo plans to bring in Beautystreams, a leading international beauty consultancy and Centdegres, which has great expertise in design, to educate the market. The topics on the agenda will include building a collaborative relationship between beauty brands and conventional/online retailers, digital marketing as a key pillar of the marketing campaign, case studies from international beauty retail experience, and the Vietnam retail market annual report and trends. www.mekongbeautyshow.com http://english.vietnamnet.vn/fms/business/178168/2017-mekong-beauty-show-eyes-four-emerging- markets.html

International medical, pharmaceutical exhibition opens 11/May/2017 Intellasia| VNA The 24th International Medical-Pharmaceutical Exhibition (Vietnam Medi-Pharm 2017) rolls out at Viet Xo Friendship Labour-Culture Palace in Hanoi on May 10, drawing the participation of 410 groups, enterprises from 30 countries and territories. Speaking at the opening ceremony, deputy minister of Health Nguyen Viet Tien said that the event, held annually since 1994, has become a prestigious exhibition in Vietnam. It is a major occasion to introduce the government's healthcare policies along with latest domestic and foreign medical and pharmaceutical achievements to the public, Tien highlighted. He stressed that the exhibition creates opportunities for local and overseas enterprises to introduce their products, exchange and share experience, seek business partners and promote technology transfer. On display at 500 booths are pharmaceutical products, health food, medical equipment, support equipment and healthcare products. The health ministry runs its own booth at the event, distributing documents popularising information on latest adjustments in medical service costs, efforts to improve services at hospitals, and general knowledge on health care. On the sidelines of the Vietnam Medi-Pharm 2017, several specialised shows are being held on support equipment and healthcare techniques, Vietnam's international hospitals, and dental care. A couple of forums and conferences also take place during the event. The exhibition will run until May 13. http://en.vietnamplus.vn/international-medical-pharmaceutical-exhibition-opens/111486.vnp

Vietnam attends 50th International Fair of Algiers, Algeria 11/May/2017 Intellasia| VNA Four enterprises from Vietnam are attending the 50th International Fair of Algiers at the Palais des Expositions (Exhibition Palace) in Algiers, Algeria from May 8 to 13. Algerian prime minister Abdelmalek Sellal attended the event's opening ceremony on May 8. The fair, themed "50 years in the service of the Algerian economy", features 536 Algerian companies and approximately 500 foreign exhibitors from 34 countries. Vietnamese firms mostly brought farm produce, souvenirs and clothing. Vietnamese Ambassador to Algeria Pham Quoc Tru cut the ribbon to open the Vietnamese pavilion on May 9. http://en.vietnamplus.vn/vietnam-attends-50th-international-fair-of-algiers-algeria/111455.vnp

HCM City to promote tourism at Cannes Film Festival 11/May/2017 Intellasia| The Saigon Times Tourism images of HCM City will be displayed at the Cannes Film Festival in France set to take place for 10 days starting from May 17. Aside from large-sized billboards placed in front of the Majestic Barriere hotel and opposite Palais des Festivals to capture international guests' attention, the HCM City Department of Tourism will meet international guests to introduce the city's tourism products at the event. Ngo Phuong Lan, director of the Vietnam Cinema Department, said the 70th Cannes Film Festival will attract great public attention, creating great opportunities for tourism and cinema sectors. In addition to billboards, Vietnam will have a booth introducing film projects and organising the Vietnam Night event on May 20. "We have sought to promote the images of Vietnam at many international film events but this is the first time the HCM City Department of Tourism has participated in an international event on a large scale to introduce the images of the city and Vietnam as a whole," Lan said at the event introduction ceremony on May 9. Bui Ta Hoang Vu, director of the HCM City Tourism Department, said France is one of 10 major source markets for the city's tourism sector, so the tourism authority will step up marketing activities in this market through Cannes. LYNK Investment Trading Service Construction Co Ltd is the sponsor of the promotion programme with a total expenditure of one million euros, said Ly Nha Ky, board chairwoman of the company. HCM City lured about 1.58 million international visitors in the first quarter, up 15 percent over the same period in 2016. Tourism revenue reached about VND27,770 billion (US$1.22 billion), up 15.6 percent year-on-year. About seven million international visitors are expected to come to the city this year, up by 1.8 million against last year. http://english.thesaigontimes.vn/53854/HCM City-to-promote-tourism-at-Cannes-Film-Festival.html

Starbucks restaurant opens in Hanoi 11/May/2017 Intellasia| VOV Starbucks Vietnam has opened its first new style restaurant at 6 Nha Tho Street in the Hoan Kiem District of Hanoi. Patricia Marques, general manager at Starbucks Vietnam, said the new outlet provides a new experience for Vietnamese coffee drinkers offering Starbucks Reserve Americano, Reserve Latte, Reserve Cappuccino, Reserve Cortado, Reserve Espresso and Reserve Espresso Macchiato. Starbucks opened its first outlet in Vietnam in 2013 with a restaurant in HCM City. It now has 28 outlets nationwide. http://english.vov.vn/economy/starbucks-restaurant-opens-in-hanoi-349240.vov

DHL Express Vietnam receives Gold Award for Best Community Programme 11/May/2017 Intellasia| VIR DHL Express Vietnam, the world's leading international express services provider announced that it has been honoured with a Gold Award for the Best Community Programme for the first time at the 9th Global CSR Summit and Awards 2017 the region's longest reigning and widely respected CSR summit. As Asia's most prestigious recognition awards programme for corporate social reponsibility (CSR) activities the Global CSR Summit and Awards recognises and honours companies for outstanding, innovative and world-class products, services, projects and programmes implemented. DHL Express Vietnam was awarded with a Gold for its successful community projects that have resulted in poverty alleviation, better education, business growth and community engagement. As part of the company's "Living Responsibility" programme, DHL Express Vietnam focuses on the three pillars of environmental protection (GoGreen), disaster management (GoHelp) and education (GoTeach), as well as supporting employee volunteerism. Through these programmes, DHL Express Vietnam has been made a positive impact on the well-being of the local communities and society. "This is the first time that DHL Express Vietnam has participated in the Annual Global CSR Summit and Awards, and we are very proud to be globally recognised with a Gold Award for the Best Community Programme. This is a testament of our dedication to providing the very best community project in our local community here in Vietnam," said George Berczely, DHL-VNPT Express general director. "While we know that our efforts are not the panacea for the world's problems, it certainly does start to move the needle towards building a society that is much closer to one where we would like to conduct our business. With our team of dedicated people, we are confident of our ability to continuously contribute to the sustainable development of Vietnam by delivering economic, social and environmental benefits to the society," he added. DHL is the leading global brand in the logistics industry. DHL family of divisions offer an unrivalled portfolio of logistics services ranging from national and international parcel delivery, e-commerce shipping and fulfillment solutions, international express, road, air and ocean transport to industrial supply chain management. With about 350,000 employees in more than 220 countries and territories worldwide, DHL connects people and businesses securely and reliably, enabling global trade flows. With specialised solutions for growth markets and industries including technology, life sciences and healthcare, energy, automotive and retail, a proven commitment to corporate responsibility and an unrivalled presence in developing markets, DHL is decisively positioned as "The logistics company for the world". DHL is part of Deutsche Post DHL Group. The group generated revenues of more than 57 billion euros in 2016. http://www.vir.com.vn/dhl-express-vietnam-receives-gold-award-for-best-community-programme-at-the- annual-global-csr-awards-2017.html

Dong Nai suggests HCM City help consume 10,000 pigs a day 11/May/2017 Intellasia| The Saigon Times Dong Nai Province is asking HCM City to help consume some 10,000 pigs a day from the neighbouring province to ease the supply glut. "If HCM City consumes 10,000 pigs from Dong Nai everyday, the province will be able to free up 300,000 pigs in the next month," said Duong Minh Dung, director of the Department of Industry and Trade of Dong Nai Province, at a meeting with relevant agencies and enterprises from HCM City. According to Dung, Dong Nai Province currently has a herd of about 1.8 million pigs, including 300,000 pigs of over 80 kilos. At present, the province provides 5,000-6,000 live pigs for HCM City a day. However, most of the enterprises from HCM City said their slaughterhouses are operating at full capacity. Besides, the number of pigs traded at wholesale markets has also risen to a record high. Therefore, they cannot increase pig consumption to support Dong Nai. Moreover, if the amount of pigs transported to HCM City increases, pork prices would even dip. A representative of the HCM City Department of Agriculture and Rural Development said the demand for pork cannot surge overnight. Besides, an increase in pork sales would affect the consumption of other food products and a greater amount of pigs slaughtered will put pressure on the environment. Nguyen Huynh Trang, deputy director of the HCM City Department of Industry and Trade, said that in order to support Dong Nai pig farmers, the city could boost sales campaigns at export processing zones and industrial zones and continue to encourage processing units to increase consumption. In a longer term, Trang suggested Dong Nai review agriculture planning, invest in a variety of farm produce and reduce dependence on pig farming. http://english.thesaigontimes.vn/53844/Dong-Nai-suggests-HCM City-help-consume-10000-pigs-a- day.html

Vietnam mulls lifting midnight curfew to pull in more tourists 11/May/2017 Intellasia| Vnexpress Restaurants and bars across the country could join Hanoi in keeping their doors open until 2 a.m. Vietnam's Tourism Association has submitted a proposal to the government asking for recreational establishments to be allowed to stay open until 2 a.m. The proposal comes ahead of the 2017 prime minister with Enterprises Conference that will take place on May 17. Some localities still ban establishments such as nightclubs and karaoke bars from opening past midnight. This regulation limits their businesses and makes it impossible for them to entertain many foreign tourists who want to have party late night, according to the association. Under the new proposal, these establishments would be allowed to open until at least 2 a.m., encouraging foreign tourists to stay longer and spend more. Hanoi launched a pilot scheme last September that allows restaurants and bars in Hoan Kiem District to stay open until 2 a.m. over the weekends. The association has also asked the government to extend visa exemptions for tourists from France, the United Kingdom, Germany, Italy, Spain and Belarus. The current scheme, ending on June 30 this year, would be extended until 2022 if the proposal is approved. A plan to offer visa exemptions for tourists from India, Australia, Canada, Poland, Czech Republic, Bulgaria, Hungary, Romania, Kazakhstan, Uzbekistan, Azerbaijan and Armenia will also be discussed at the conference. These proposals are aimed at boosting visitor numbers to 18-20 million in 2020, according to the Tourism Association. Vietnam is expecting to welcome 11.5 million foreign arrivals this year, up 15 percent from 2016. Vietnam has also been offering e-visas to visitors from 40 countries since February 1. http://www.vir.com.vn/vietnam-mulls-lifting-midnight-curfew-to-pull-in-more-tourists.html

Google blocks 1,500 'toxic' YouTube videos at Vietnam's request 11/May/2017 Intellasia| Tuoitre News Google has blocked 1,500 YouTube videos Vietnam deems 'toxic and harmful' on the world's largest video-sharing platform, the country's electric information watchdog said Tuesday. The 'cleanup' came more than a month after the Authority of Broadcasting and Electric Information under Vietnam's Ministry of Information and Communications demanded that more than 2,200 videos whose content is either fake or anti-government be removed from on Google-owned YouTube. Vietnam's information ministry believed that there are as many as 8,000 such videos on YouTube. The removal of the harmful YouTube videos is result of several working sessions between Vietnam and Google representatives, after which the Internet giant has created a special mechanism allowing Vietnamese agencies to report numerous links with bad content at a time. YouTube has also provided additional tools to ensure that their commercials will not be placed alongside 'toxic' content on its platform. On top of working with Google to sweep 'toxic' videos off YouTube, Vietnam's information ministry has also reached agreement with Facebook to 'purify' content on the world's largest social network among local users. There are now 129 fake Vietnamese Facebook accounts responsible for publishing 4,120 posts that either disseminate anti-state information, incite hate and violence, or defame brands, individuals, and/or organisations. Monika Bickert, head of global policy management at Facebook, met with local information watchdog in Hanoi late April, making commitment that the social network will prioritise the removal of fake accounts, especially those impersonating Vietnamese Party and government leaders. The social network will also set up an exclusive channel to maintain contact with the information ministry and other Vietnamese regulatory agencies so that violations reported by the Southeast Asian country can be resolved in a fast-track protocol. Around 70 percent of Vietnam's 92 million citizens have Internet access, with some 45 million being Facebook users, according to the information ministry. http://tuoitrenews.vn/business/40923/google-blocks-1500-toxic-youtube-videos-at-vietnams-request

Vietnam retail on cusp of change 12/May/2017 Intellasia| VNS The Vietnamese retail industry is on the cusp of great change, experts say. Speaking at a seminar in HCM City on May 10 on the future prospects of the industry, Pham Thanh Cong, representative of Nielsen Vietnam, said retailing is undergoing a revolutionary change in the digital age where everything is connected, requiring retailers to keep up to date with innovation to satisfy customers' diverse needs. Others said that in today's environment relying on growth from a single channel is unsustainable since customers interact with businesses via multiple channels. Previously, customers visited brick-and-mortar shops to buy products, but now they can engage with a company in a physical store, on an online website or mobile app, or through social media, they said. David Tan, managing director of the Vietnamese operation of Singaporean IT solutions company Abeo, said Vietnam's retail sales last year were worth $118 billion, a year-on-year increase of 10 per cent. The country, ranked by A.T. Kearney among the world's top 30 retail markets, has seen a surge in mergers and acquisitions in the sector, enhancing competition in the market. International retailers bring funds as well as the best practices in the industry applied in developed countries, he said. Retail best practices are integrated into the enterprises'operation process and controlled via ERP (enterprises resource planning) systems and other measures, he said. In the increasingly competitive environment, understanding consumer behaviour to quickly meet their requirements and improving customer services are the key to succeeding and retaining customers' loyalty, he said. The use of technology solutions, including SAP S/4HANA Retail for merchandise management solution, helps retailers enhance their competitiveness, he said. SAP S/4HANA Retail helps businesses automate processes such as inventory tracking and real-time warehouse management and better understand their customers, anticipate their needs and inspire their shopping experience, he said. Big data solutions create opportunities for businesses to expand sales of existing products and help increase the speed at which they bring products to the market, innovate new business models to better serve their customers and reduce operating costs. According to the Ministry of Industry and Trade, with 724 supermarket outlets, 123 shopping malls and a large number of convenience stores, modern retailing accounted for 25 per cent of the market last year. The Fast Moving Consumer Goods (FMCG) sector enjoyed 6.5 per cent growth last year. VNS http://english.vov.vn/economy/vietnam-retail-on-cusp-of-change-349354.vov

Vietnamese private sector in government focus 12/May/2017 Intellasia| VIR On May 17 the prime minister (PM) will meet with 1,500 representatives of Vietnamese companies in the private sector. Le Manh Ha, deputy chair of the government Office, told VIR's Ky Thanh that the event shows the government's determination to support the private sector. This is not the first time the conference was held. How is this year's conference different? This year's theme is "Accompanying companies in the private sector." It shows the government's determination to proactively support companies and turn them into the driver of the country's growth. This year, 2,000 participants have registered, four times as much as last year. 1,500 of them represent the private sector. The leaders of localities and many companies from all 63 cities and provinces will gather at designated points to participate in the teleconference of a sort. The companies will evaluate the implementation of Resolution 35/NQ-CP on developing and supporting companies between 2016 and 2020. They will have the chance to propose solutions to the difficulties they are facing. From 3 PM of the conference day, the PM and deputy PMs as well as government agencies will meet and address the complaints of companies together. The conference is only one day long. How can it solve all problems? Actually, many problems have been addressed and tackled throughout 2016. The government Office has kept an open ear to complaints and directed relevant government agencies to act within their mandates. Problems under the authority of the PM were duly forwarded to his office, similar to localities' leaders. The Vietnam Chamber of Commerce and Industry also did the same thing. At the moment, 18 out of 20 government agencies and 48 out of 63 cities and provinces have submitted their reports on the implementation of Resolution 35 to the government Office and the Ministry of Planning and Investment (MPI). MPI is compiling them into a report that will be read at the conference and will be uploaded to the government's portal soon. Xin Chao Cafe (in which a cafe owner was charged with "conducting business illegally") was the highlight of last year's conference. What is the highlight this year? Is there a specific case study? True, by coincidence, the Xin Chao cafe incident happened right before last year's conference. This incident heated up the conference and the main discussion was on decriminalising a civil economic relationship. The business community was very happy that the topic was highlighted. This year, we have yet to see a major incident and we hope not to, either. The conference will focus on policies to help companies develop. Of course, that includes offering solutions to existing difficulties. As the government is working to increase the role of the private sector, is there special significance to the conference? Last year, most participants were from private sector companies because foreign-invested companies and state-owned companies had held their own conferences already. This year, it will be the same. At the moment, the private sector has the highest number of companies, including many foreign companies, while the number of state-owned companies has decreased to only a few hundred. As to the target of having one million companies by 2020, the private sector will make up the lion's share. http://www.vir.com.vn/vietnamese-private-sector-in-government-focus.html

Industrial land up despite TPP uncertainty 12/May/2017 Intellasia| VNA Industrial land in Vietnam has continued expanding since the beginning of this year, despite uncertainty over the future of the Trans-Pacific Partnership (TPP) after the withdrawal of US support for the deal. According to property service firm Cushman & Wakefield Vietnam, more than 4,700 hectares of industrial land has been developed since the beginning of 2017, up by 7 percent over the same period last year. Alex Crane, director of the property service firm, was quoted by Dau Tu (Investment) newspaper as saying that Vietnam remained an attractive destination for investment. "With or without TPP, the industrial property segment will still be on an uptrend," he said. Crane cited statistics, noting that Vietnam attracted record foreign direct investment (FDI), at 7.7 billion USD in the first quarter of this year, nearly 85 percent of which was poured into production. Coupled with a significant number of new firms and improved business confidence, this would have a positive impact on the industrial land market, he said. He noted that Vietnam had four other free trade agreements (FTAs) under negotiation, which are expected to boost the investment flow into Vietnam, and the industrial property segment would certainly see benefits resulting from this. However, administrative reforms must be hastened in order to facilitate investment, together with improving the infrastructure system for industrial zones. According to Nguyen Thanh Ha, chair of SbLaw, developers should build industrial zones with proper infrastructure systems and lease them at reasonable prices, while the government should pay attention to developing the parts-supplying industry and improving transport connectivity. As of the end of 2016, there were 324 industrial zones throughout the country with total land area of 91,800 hectares, as well as 16 economic zones and two high-tech zones. http://en.vietnamplus.vn/industrial-land-up-despite-tpp-uncertainty/111562.vnp

Development gap hinders linkages in Apec auto industry 12/May/2017 Intellasia| VNA A big development gap between Apec member economies is hindering the region's auto industry from transferring technology and promoting linkages, said an official of the Vietnamese Ministry of Industry and Trade (MoIT). Addressing the opening ceremony of the 26th Apec Automotive Dialogue (AD26) in Hanoi on May 11, Le Huu Phuc, director of the MoIT's Department of International Relations, said that Apec should give priority to assisting developing economies in boosting the auto industry. He called for Apec member economies to cooperate effectively in capacity building to study auto industry policies, focusing on priority areas such as market access, human resources and infrastructure, technology incentives as well as environment standards for sustainable development. Regarding the fourth industrial revolution, Phuc said it will lead to the restructuring of the global manufacturing system, not only in technology but also in management and placing of new business models. New technology trends may disrupt value chains, possibly shifting a significant part of global production from developing to developed countries, he said, adding that access to end markets will likely become more critical than access to resources. According to Phuc, with the fact that the auto industry's annual growth of 4-6 percent largely due to the flow of FDI mostly within the Apec region, the improvement of the market and investment climate will continue to be the most important factor for the Apec auto industry. AD 26 was held as part of the second Apec Senior Officials Meeting (SOM 2) and related meetings. At the dialogue, delegates discussed the real situation of the auto industry and auto market in Apec member economies as well as the impacts of free trade agreements (FTAs) on the regional auto industry. In addition, the event also scrutinised policies and regulations on the auto industry, harmonisation of standards, future orientations and technology development trends of the industry. The auto industry plays an essential role in Apec economies, manufacturing 60 million vehicles per year and directly employing 4 million workers. According the MoIT, automakers in Vietnam turn out around 500,000 units a year and create 80,000 direct jobs. In 2016, the local industry recorded a growth of 29 percent and contributed nearly 3 percent of the country's gross domestic product (GDP). http://en.vietnamplus.vn/development-gap-hinders-linkages-in-apec-auto-industry/111533.vnp

Apec members work to boost partnership on science, technology 12/May/2017 Intellasia| VNS Representatives from Asia-Pacific Economic Cooperation (Apec) member economies gathered in Hanoi on May 11 for the 10th Apec Policy Partnership on Science, Technology and Innovation (PPSTI-10) Meeting. In his opening speech, Vietnamese deputy minister of Science and Technology, Tran Quoc Khanh expressed his hope that the event will promote new proposals under the PPSTI's theme in 2017, focusing on natural hazards science and policies that support strong STI ecosystems in the Apec region, PPSTI Strategic Project Prioritisation, three Sub-group's updates on key projects as well as identification of topics and events for Knowledge Partners to engage in. The meeting also aims to enhance PPSTI's role in Apec by a number of vibrant activities such as Innovation Policy Sharing Seminar, Joint Session with the Human Resources Development Working Group (HRDWG) on STI human resources development, Apec Research and Technology Programme (ART 2017), and Women in STEM Workshop, he said. Those will further contribute to the PPSTI's mandate, especially in developing and promoting policies that support an enabling environment for scientific research and market-based innovation, and facilitate STI capacity building and regional STI connectivity, he added. Talking to Vietnam News Agency reporters, Nina Azrah Razali, head of the Bureau of International Affairs of the Malaysian Academy of Sciences, said that Apec member economies have a lot of STI initiatives but each of them is doing separately. Therefore, this meeting discusses how to boost Apec members' cooperation in implementing the initiatives, she said. Emphasising the important role of science, technology and innovation, Razali emphasized the need to set up working groups and partnerships for STI development. http://www.vir.com.vn/apec-members-work-to-boost-partnership-on-science-technology.html

EU trade agreement promotes changes at industrial parks 12/May/2017 Intellasia| VN Economic Times VSIP North (including VSIP Bac Ninh, Hai Phong and Hai Duong) introduces a master plan for smart cities near industrial parks at VSIP conference on May 11. The EU-Vietnam Free Trade Agreement (EVFTA) will help Vietnam become the regional hub of many foreign manufacturing companies, boosting the development of industrial zones in the country, Gellert Horvath, vice Chair of the European Chamber of Commerce (Eurocham) told a conference held by Vietnam-Singapore Industrial Park (VSIP) on May 11 with theme "Unlocking the Potential of a New Model of Living and Manufacturing in the North". He told those in attendance that compared to other countries in the region such as Indonesia, Malaysia and Thailand, Vietnam's advantages lie in its favourable political and geographical location and its government adopting sound steps during its integration process. "However, the restrictions that EU investors often face when investing in Vietnam is the complexity of licensing procedures and land procedures, which make it less competitive than those countries," he added. Vietnam is a great location for EU manufacturers to export their goods to Asian countries. Its industrial park network is therefore expected to grow strongly over the next few years. In order to welcome more foreign manufacturers, many industrial parks in Vietnam are boosting investment in infrastructure, including VSIP. Victor Lim, deputy director of VSIP Bac Ninh, revealed a plan at the conference to build a smart city near the industrial park called the VSIP Bac Ninh Township Development Masterplan, which is a combination of manufacturing and living. "We are seeking opportunities to develop the area around the industrial park to become a smart city," he said. The master plan includes many categories: a sports hub, a golf driving range, the Belhomes landed housing project, a business hub cluster and park, a wet market, a shopping mall, a hotel, mid-end landed properties, a school complex, and worker housing. According to VSIP, many of these are calling for investment. Horvath expressed his appreciation of the complex model and said he believes it is a model that Vietnam should develop in the future. "Having everything in one place is better for investors," he said. "Our company currently provides transport for workers from neighbouring towns to industrial zones, but if there was workplace accommodation next to the industrial park it would be very good for us," said Chua Ah Lay, Chair and CEO of Santomas Vietnam, which has been in Vietnam for nearly 20 years. VSIP was established in 1996 on the basis of cooperation and support between the two governments of Vietnam and Singapore. It was first proposed by prime minister Vo Van Kiet to prime minister Goh Chok Tong of Singapore in March 1994. VSIP was officially launched on January 31, 1996 in Singapore. On May 14, 1996, the prime ministers gathered at the VSIP site to officiate the breaking ground ceremony. Over the last two decades, VSIP has grown from strength to strength. It is now one of the largest developers of integrated industrial parks and mixed-use areas in Vietnam. It has operations in the southern, northern and central economic zones of Binh Duong, Bac Ninh, Hai Phong, Quang Ngai, Hai Duong, and Nghe An. With a hassle-free one-stop service, VSIP has attracted about 690 companies from 30 economies, attracting investment capital of $9.1 billion and generating about 180,000 jobs from operating tenants. The EU is currently Vietnam's second-largest export market and Vietnam is the EU's eleventh-largest source of imports. About 900 European enterprises have invested in Vietnam; the most in Southeast Asia. http://vneconomictimes.com/article/business/eu-trade-agreement-promotes-changes-at-industrial-parks

Condotels boom but concerns emerge 12/May/2017 Intellasia| VN Economic Times The growth curve of tourist arrivals to Vietnam continues ever upward. In seven years, international arrivals by air doubled to 10 million in 2016 and domestic tourist numbers jumped from 28 million to 62 million. Such figures are driving remarkable growth in the second, or holiday, home segment, with condotels taking centre stage. Nha Trang, Da Nang and Phu Quoc: Stealing the spotlight Vietnam's key coastal tourism destinations Nha Trang, Da Nang and Phu Quoc Island have all benefited from this surge in visitors. Tourists to Nha Trang rose 23 per cent in 2016 compared to 2015, with 1.2 million international visitors, a trend improved upon in Da Nang, which welcomed 33 per cent more visitors, including 1.7 million international arrivals. The government is playing an important supporting role in the country's tourism sector. Vietnam now has nine international airports that all seem to be constantly being upgraded with new terminals opening and runways extended. The country's visa policy has been streamlined and improved upon, making it easier and cheaper than ever before to visit the country. Although inbound numbers are impressive and the performance of hotels and resorts in sub-markets have generally improved, it has not been at the pace arrival numbers would suggest. The last few years have seen robust activity in resort real estate development and this year we are starting to see the implications of all this new supply. Resort and hotel competition is intensifying and as it is still in its early stages we anticipate it only getting hotter. For local and international guests this will mean an ever-increasing choice of options across the budget spectrum as resorts compete with fresh appeals. With exciting new and established brands to experience and an abundance of new properties to choose from, at no doubt often heavily discounted rates during start-up periods, the next couple of years will be a great time to discover or rediscover Vietnam. This is particularly true in Nha Trang, Cam Ranh, and Phu Quoc Island. Growth in these markets has been in the double digits, and with an abundance of new resort and hotel properties in the pipeline will no doubt, at some point, have to overcome a case of supply "indigestion", just as Da Nang coped with a few years ago. Owners may need to curb their expectations for future performance and perhaps even prepare for leaner years ahead. Second homes and condotels: Market sweethearts Another segment that has grabbed and held market attention is second, or holiday, homes. Products include branded and non-branded villas, second home condominiums, and condotels (a blend of hotel and condominium: resort hotel levels of service with the independence of a condo). There are approximately 36 second home properties in Vietnam, with over 7,000 affordable to luxury units. Khanh Hoa, Da Nang, Phu Quoc, Ho Tram, Ha Long and Quang Nam are set to see second home supply of more than 17,000 units over the next three years. It will take time for inventory as significant as that to be absorbed by the market, with perhaps another case of "indigestion" to overcome. Supply in main coastal destinations will account for 65 per cent of stock by 2019. The standout, mainly in coastal locations, is the profusion of condotel developments. The fervor developers are showing for building these units is starting to raise concerns about future oversupply but the market is so far accommodating them and, with that, more are planned. We are seeing more and more projects announced, all seemingly trying to outdo one another in terms of scale, appeal, and often outlandish promised returns. The guaranteed rental return in Vietnam can be as high as 12 per cent, guaranteed for eight years. Developers are quick to name projects located in or close to a destination as condotels but the concern is the "tel" part of condotel. In many cases, we see little regard for the hotel part of the project and the long-term management implication this entails. The concern is that to have any chance of matching promised returns, projects need an impressively performing hotel component. But in most cases this seems to be missing or, at best, incomplete. Guaranteed return products become riskier for buyers when less experienced developers enter into large- scale projects with insufficient equity or by not being fully supported by banks. Buyer risk tends to appear after completion and mainly in operation. If the guaranteed return is higher than achieved cash flow, the developer is then required to underwrite additional funding, potentially for the entire period of operation. In several cases, guaranteed return is being incorporated into the planning stage and reflected by higher selling prices in order to manage the long-term return commitment. This structure could be attractive both for buyers and for developers but needs to be very well planned, requiring careful analysis before being implemented. http://english.vietnamnet.vn/fms/business/178111/condotels-boom-but-concerns-emerge.html

Plan needed to rescue pig-farming industry 12/May/2017 Intellasia| VNS These days, the term "save the pigs" has appeared in many local newspapers, as the price of live pigs has dropped to a record low, causing major losses for farmers across the country. Vietnam News spoke with the leaders of three state management agencies about the causes of the downward pressure on prices as well short-term and long-term solutions to help the struggling pig-farming industry recover. Nguyen Xuan Duong, deputy director of the Ministry of Agriculture and Rural Development's (MARD's) Animal Husbandry Department: Nguyen Xuan Duong It can be said that there are many factors leading to the current crisis in the pig-farming industry. However, the underlying cause is the ideology of small-scale production, mainly among the animal husbandry households. A crucial factor is that Vietnamese pig farmers look solely at the Chinese market which accepts pigs weighing more than 120kg, bringing large benefits to the farmers. So when the Chinese halt purchases, the breeders face difficulties in exporting to other markets or even ensuring local consumption. Even pig exports have been hit due to various challenges in recent years, but the farmers have not reduced the size of their herds, leading to an oversupply problem. The pig-raising households assume the problem will never happen to them, even though they were warned by MARD after they produced an oversupply in the last few years. Another issue is that we are unable to expand to other foreign markets for export. Pigs account for 70 per cent of the animal husbandry structure in Vietnam, while pork accounts for 70 per cent of food consumption among the Vietnamese. Meanwhile, investment in pigs is typically high. For example, a sow is priced at between VND15 and VND30 million (between $700 and $1,400) and the length of productive sow life is three years. Due to the long pig cycle, it is difficult to recover in the livestock industry, which can lead to a shortage of pork in the future. In terms of solutions, MARD is applying several measures to curb the current oversupply. The ministry has instructed localities across the country to review pig-farming planning to meet the demand and potential of each region, asking them to not issue licences for new animal-feed procession facilities as the current production is 31 million tonnes per year, far higher than the target of 25 million tonnes by 2025. Another radical solution is to enhance the establishment of links between farmers, cooperatives and enterprises. If these links are strengthened, food hygiene and safety can be controlled, while the demand and supply of pork can be adjusted. Additionally, the husbandary sector in many other countries handle oversupply issues by maintaining vast cold storage units, but Vietnam only relies on the cold storage units held by each enterprise. Recently, MARD's minister, Nguyen Xuan Cuong, asked all cities and provinces to persuade pig slaughterhouses and processors to keep buying pigs and keep them in cold storage or process the meat. Under the current situation, enterprises should also prepare for the potential pork market that will arise for lunar New Year (Tet) 2018, as the farmers may thin their pig herds, leading to a decline in supply during Tet. Further, this month, MARD will send a working team to China to discuss the export quota of Vietnamese agricultural products, including pigs and pork. Since late last year, we have been working with the Chinese side to enhance the consumption of agricultural products between the two countries. However, more time is needed to reach an agreement on the export quota as China's demands for hygiene and quality follow international standards. Long-term solutions involve plans to reduce the livestock inventory from the current 4.2 million sows to three million by 2019 and call on breeders to raise pigs that generate high yield or special ones that suit certain groups of customers. Tran Duy Khanh, vice Chair and general Secretary of Vietnam Poultry Association: The precipitous drop in the price of live pigs shows that the supply is greater than the demand. In my opinion, the industry is facing this oversupply mainly due to the lack of a long-term production plan from the management agency. MARD has been urging the farmers to apply the latest production technology, while consumption has been assigned to the Ministry of Trade. In other words, the input and output of the industry are managed by two different ministries, which lead the households and enterprises to adjust their production by themselves. I think the State needs to support farmers in finding new markets, as I have already mentioned that we lack market regulation by the State. That is why the price last month was VND15,000-25,000 (between $0.7 and $1.1) per live pig, while pork was sold for between VND80,000 and VND90,000 per kilogramme. The live pig price has fallen from its earlier price of VND31,000-33,000 per kilogramme before Tet and from VND43,000-45,000 per kilogramme one year ago, while the production cost is VND37,000 per kilogramme. Ta Van Tuong, director of Hanoi Animal Husbandry Development Centre: Much has been done to establish the supply chain link in the livestock industry to sell hygienic foods with traceable origins to help the farmers and bring products to consumers. We now have nine links for pork, selling dozens of tonnes of pork every day. Thanks to the link between the farmers and the retail network, many unnecessary intermediaries have been eliminated. Additionally, I think cold storage is very important for resolving the oversupply situation. Our centre has called on chain enterprises to introduce the products of chilled meat and frozen meat to customers. The centre has also introduced the products from its chain to various supermarkets, street stores, canteens and food processors to find the right outlet for the farming households. We consider this a revolution because if we can eradicate the situation of consuming pigs slaughtered daily, the animal husbandry industry will not suffer from the pressure of providing minor outlets for the traders. Instead, farmers will have the right conditions for applying technology in raising pigs, improvements in the quality and quantity of their products, and reduced costs. This is also an important condition for organising high-tech farming, as other developed nations supply their customers a variety of high-quality products. http://www.vir.com.vn/plan-needed-to-rescue-pig-farming-industry.html

Domestic private sector barred from power market 12/May/2017 Intellasia| VIR Currently, complicated procedures and regulations have become a barrier preventing domestic private investment from pouring into large-scale power plants. Time-consuming procedures and policies According to Ngo Quoc Hoi, general director of An Khanh Thermal Power Joint Stock Company, the procedures of basic construction investment and investment policies for power plants overlap. In particular, the National Power Development Plan for the period 2011-2020 with vision to 2030 (Power Development Plan 7 PDP 7), which was updated and called the adjusted PDP 7, contains the names of power plant projects, as well as their locations and developers. However, before implementing these projects, developers must submit the feasibility reports for evaluation by the relevant ministries, and then resubmit them to the government for in-principle approval. "Although the projects are mentioned in the PDP 7, developers still have to submit feasibility reports for in-principle approval. This takes developers about six to eight months on average," Hoi said. Also, he wished that the Ministry of Industry and Trade (MoIT) would propose to the government to authorise the projects mentioned in PDP 7 to skip the step of in-principle approval. This step is time- consuming. Admitting to this problem, Hoang Quoc Vuong, deputy minister of Industry and Trade, agreed that the feasibility reports are not necessary for projects mentioned in the PDP 7. "MoIT proposed the prime minister (PM) a mechanism allowing urgent projects to skip the feasibility report stage. We are currently waiting for the final decision," Vuong said. Aside from being annoyed with this time-consuming step, numerous developers complained of unfair treatment between independent power producers (IPPs) with domestic investment and BOT power plants with foreign investment. In particular, BOT projects receive preferential treatment when converting foreign currency and guarantees for power sales and purchases. However, domestic IPPs do not have access to these policies. Domestic developers who want to convert foreign currency to pay off debts must register their sources of debt via the State Bank of Vietnam (SBV) and face the exchange rate risk themselves. Capital out of reach Currently, the Bac Giang Thermal Plant project assigned to be developed by An Khanh Thermal Power Joint Stock Company has a capacity of 650MW. It is estimated that this project needs over $1 billion to be fully implemented. But borrowing from domestic commercial banks is not easy. According to the current regulations of SBV, a credit institution's total outstanding loans for a client cannot exceed 15 per cent of the institution's equity. A big commercial bank like BIDV can provide a maximum loan of VND7.3 trillion ($316.8 million) for a project, while the minimum cost of an EPC package is VND22 trillion ($968 million). Thus, domestic borrowers need the contribution of many commercial banks, which is not easy to arrange. "I propose loosening the loan ceiling from the current 15 to 25 per cent, otherwise, it will be difficult for developers to carry out new projects," Hoi said. Moreover, as governmental debts are at a high level, developers cannot take up international commercial loans. Besides, domestic developers want guarantees that Electricity of Vietnam (EVN) will pay them when purchasing their power, otherwise they will be confronted with a lot of obstacles when raising capital for power plant projects. Vuong said that the reason for the different treatments of BOT projects and IPPs is that Vietnamese private companies are small. A 650 - MW power plant needs over $1 billion of investment, but there are few domestic developers able to command such capital. Besides, the practical scale of each plant is about 1000-1,200MW, propelling the needed investment to over $2 billion. Therefore, the government offers preferential policies to call for foreign investment and IPPs are not as encouraged as BOT projects. However, Vuong said that in the upcoming period, power plant projects will not lure in as much investment as at the present, and if domestic developers become stronger, there will be no different policies between BOT power plants and IPPs with domestic investment. http://www.vir.com.vn/domestic-private-sector-barred-from-power-market.html

Prime minister wants advertising market order restored 12/May/2017 Intellasia| The Saigon Times Prime minister Nguyen Xuan Phuc has signed a new directive requiring that order on the advertising market be restored. According to Directive 17/CT-TTg, the prime minister requests ministers, heads of ministerial-level agencies, and leaders of local governments to strengthen their management of the advertising market, strictly handle violations, and make positive changes to promote the development of the advertising market. The directive calls for protection of the interests of stakeholders and strict implementation of the Advertising Law and relevant legal documents. It is a must to protect the healthy advertising business environment, guarantee the legitimate rights and interests of those exposed to advertisements and ensure healthy competition among advertisers, says the directive. The directive underscores the need to build a transparent advertising environment, contribute to the development of domestic production and business, and add value to Vietnamese brand names. The Ministry of Construction is requested to complete revisions to national technical regulations on outdoor advertising to promptly remove hindrances to help localities draw up and carry out advertising plans. The results of implementation should be reported to the prime minister in the third quarter of 2017. The Ministry of Information and Communications is tasked with stepping up inspections into advertising law compliance in the press, on the Internet and in other media. Violations should be strictly handled. The Ministries of Health, Agriculture-Rural Development and Industry-Trade will have to work with the Ministry of Culture, Sports and Tourism to evaluate those products advertised and verifying the truth of ads for special products and services under their management. The prime minister places emphasis on medicines, milk and nutritional food for infants, food and functional foods, cosmetics, pesticides, fertilisers and bio-products for crop production and animal husbandry. Ad contents in such areas must comply with the law, cultural norms and customs of Vietnam. Prime minister Phuc orders the culture ministry to review and improve legal documents on advertising. The ministry is also told to draw up a professional code of conduct in advertising and a manual on outdoor advertising planning for localities to ensure conformity throughout the country, and report the results to the prime minister in the third quarter. The prime minister asks leaders of local governments to focus on directing and correcting the presentation in foreign languages on billboards, signboards of organisations and individuals. Sites dedicated to classifieds should be built (or arranged). Mass organisations and communities should be encouraged to participate in the removal of illegitimate classifieds. With Decree 28 effective from May 5, higher penalties will be imposed on those publishing illegal ads and those hiring them. For example, a fine of VND1-2 million will be slapped on persons hanging, placing, gluing and painting illegitimate ads for products or services on electricity poles, traffic signs and public trees, and VND5-10 million on those having them do so. In addition, reprimand or fine of VND200,000-500,000 will be levied on those distributing leaflets which affect urban aesthetics, and traffic and social order. http://english.thesaigontimes.vn/53870/Prime-Minister-wants-advertising-market-order-restored.html

HCM City, Germany encourage high-tech, energy partnerships 12/May/2017 Intellasia| VNA HCM City welcomes German investment in the local high-tech and energy sectors, vice Chair of the municipal People's Committee Le Thanh Liem said when receiving Iris Gleicke, Parliamentary State Secretary at Germany's Federal Ministry for Economic Affairs and Energy on May 11. He stated Vietnam and Germany share traditional relations, which witnessed increasing visit exchanges between the two respective high-ranking officials in recent years for multifaceted cooperation, particularly in trade. Liem highlighted 2 billion USD in bilateral trade between the city and Germany last year, adding that most of the revenue was generated by partnerships in the high-tech industry a priority sector of Vietnam. He said he expects German enterprises to promote trade and investment with the Vietnamese side and pledged to create favourable business climate for foreign companies, including those from Germany. Iris Gleicke stressed Germany is always keen on expanding economic cooperation with Vietnam. German firms highly value HCM City's dynamic growth, she noted, unveiling that 90 percent of German investment in Vietnam concentrate in the southern hub. She said experienced in addressing issues arising from the development of infrastructure, transport and energy, German enterprises could support HCM City via joint research and training projects, and technology transfer. Germany wants to set up a representative office for its businesses in Vietnam soon, the official said. http://en.vietnamplus.vn/hcm-city-germany-encourage-hightech-energy-partnerships/111559.vnp

HCM City wants to increase trade value with Burma 12/May/2017 Intellasia| VNA HCM City wants to increase the two-way trade value with Myanmar, said Secretary of the city's Party Committee Nguyen Thien Nhan at his meeting with Mahn Win Khaing Than, Speaker of Myanmar's House of Nationalities and Parliament, on May 11. Speaking at the meeting, Nhan spoke highly of the traditional relations between Vietnam, including HCM City, and Myanmar, and the two sides' similarities in culture and religion. He underlined that trade ties between the two countries have made progress for the benefit of their people. The secretary noted that the city annually held a trade fair in Myanmar's capital city Yangon while many tour operators from Myanmar joined the city's tourism fairs. He thanked Myanmar for facilitating Vietnamese businesses' operation in the country and reiterated that HCM City looks forward to enhancing cooperation with Myanmar with the emphasis on promoting trade and investment and raising trade value. For his part, Mahn Win Khaing Than lauded the robust development of HCM City, saying that Myanmar looks to learn from Vietnam's experience in national protection and building. The Myanmar top legislator expressed his gratitude towards HCM City for sharing its experience in socio-economic development, particularly in education, describing it as important to help Myanmar improve human resources quality. http://en.vietnamplus.vn/hcm-city-wants-to-increase-trade-value-with-myanmar/111542.vnp

PM welcomes HK firms to Vietnam 12/May/2017 Intellasia| VNS Vietnam is committed to creating favourable conditions for foreign businesses in the country, including those from Hong Kong, affirmed prime minister Nguyen Xuan Phuc. Businesses were welcomed in the fields of infrastructure that required huge capital, including railway, road, air and waterway infrastructure, PM Phuc said while receiving a delegation from the Trade Development Council of Hong Kong, led by its Chair Luo Kangrui, in Hanoi yesterday. Developing infrastructure remains a key challenge for Vietnam, he said, adding that the country needs smart infrastructure for socio-economic development. The government leader welcomed the delegation to visit Vietnam to work with ministries, localities, partners and businesses in Vietnam to seek investment opportunities. Vietnam is reforming the investment and business environment and integrating into the global economy, Phuc said. In 2016, Vietnam rose nine positions in the business and investment environment ranking, according to the World Bank's report, he said. Vietnam has attracted 23,000 foreign direct investment projects with total capital of more than $300 billion, he added. For his part, Chair Luo Kangrui said the delegation's visit was aimed at seeking investment opportunities in Vietnam, particularly in infrastructure. The delegation had working sessions with relevant ministries and agencies of Vietnam and received important cooperation offers such as the north-south railway project. He added that Hong Kong businesses wanted to take part in the Vietnamese market, which was chock full of potential. http://bizhub.vn/news/pm-welcomes-hong-kong-firms-to-viet-nam_286078.html

MARD asks Grow Asia to help restructure agriculture 12/May/2017 Intellasia| The Saigon Times Minister of Agriculture and Rural Development Nguyen Xuan Cuong has asked Grow Asia to help Vietnam restructure agriculture, especially to create a value chain for Vietnamese farm produce, heard the Grow Asia Forum in Cambodia on May 10. The Ministry of Agriculture and Rural Development (MARD) of Vietnam previously had made a commitment to the World Economic Forum to achieve the 20:20:20 goal by 2020. This goal is comprised of three components, namely a 20 percent increase in production efficiency, a 20 percent reduction of poverty and a 20 percent cut of emissions. To meet the target, MARD has coordinated with multinational companies to establish public-private partnerships to promote and improve productivity of numerous types of farm produce, including coffee, tea, fruit, vegetables, seafood, pepper and spices, as well as to share experiences in agricultural finance. Besides, the ministry intends to add rice and livestock to the list of commodities receiving support, Cuong said at the forum, according to material sent to the Daily by MARD. The partnership with Grow Asia within the World Economic Forum in the 2014-2015 period helped the ministry consolidate and institutionalise the activities of public-private partnerships through the establishment of the Partnership for Sustainable Agriculture in Vietnam (PSAV). In particular, the close coordination between national management agencies and companies in developing sustainable agriculture played an important role in the application of high technologies to add value to and enhance competitiveness of Vietnamese farm produce. Currently, MARD is implementing a project of restructuring agriculture towards higher added value and sustainable development. The ministry focuses on the development of value chains for three categories of farm produce: national key products, provincial key products and regional specialties. The development of these value chains will help improve the quality and competitiveness of the products. Therefore, Cuong expected Grow Asia to work with the ministry to accelerate the achievement of these goals by continuing to strengthen and expand partnerships for other commodities such as rice, livestock, cashew, and wood and furniture, and connect multinational corporations with local firms and farmers to promote technology transfer. "We are particularly interested in experiences in and knowledge of developing high-tech agriculture of international experts and corporations," Cuong said. http://english.thesaigontimes.vn/53876/MARD-asks-Grow-Asia-to-help-restructure-agriculture.html

Can Tho wants to open more air routes 12/May/2017 Intellasia| The Saigon Times Can Tho City government has committed to support airlines to open air links between the city and domestic and international destinations, with a maximum subsidy of VND8.5 billion a year, not to mention other assistance for marketing and office rental. On May 10, leaders of Can Tho City met with representatives of tourism and aviation companies to discuss a plan to add flights to and from the city. In addition, the municipal government is drafting mechanisms and policies to support enterprises to open air routes, including support for office rental, promotion, ground service fees and financial aid for vacant seats in the initial time. According to the draft, except Can Tho Hanoi, Can Tho Danang, Can Tho Phu Quoc and Can Tho Con Dao routes, airlines opening new routes to and from Can Tho will enjoy incentives such as office rental for 12 months with a maximum subsidy of VND15 million per month per firm. Ground service fees will be halved in the first year for domestic flights while international flights will receive an additional 30 percent discount in the following year. The city will also cover the first year's losses for airlines, at a minimum of VND4.5 billion and a maximum of VND8.5 billion, depending on routes. In order to promote tourism development, the city has asked competent agencies to encourage travel firms to offer preferential prices for tourists travelling by air to the city. Can Tho leaders expect to have air links with Hai Phong, Cam Ranh and Bangkok of Thailand this year. Can Tho International Airport currently has domestic flights to Hanoi, Phu Quoc, Con Dao and Danang. Meanwhile, routes connecting the city with Da Lat and Nha Trang have been suspended due to losses. For international routes, flights from the city to Taipei, Taiwan are just available during Lunar New Year holiday while chartered flights to Bangkok, Thailand have come to a halt. Last year, the number of visitors to Can Tho City grew 14 percent year-on-year to reach 5.3 million, including over 590,000 foreign visitors. Total tourism revenue reached VND1,826 billion (about $80.3 million), up 5 percent over the previous year. http://english.thesaigontimes.vn/53875/Can-Tho-wants-to-open-more-air-routes.html

Long An suggests using liquefied gas for power centre 12/May/2017 Intellasia| The Saigon Times Long An Province government has suggested the Ministry of Industry and Trade allow it to use liquefied natural gas to fuel its power centre instead of coal, or apply modern Japanese or Korean technologies to ensure environmental protection there. The $5 billion Long An thermo-power centre with a total designed capacity of 2,800MW will supply about 17.7 GWh of electricity per year to the national grid to help ease power shortages in the south. The Ministry of Industry and Trade is currently garnering comment on the selection of a site for the power centre, either Long Huu Dong in Can Duoc District or Phuoc Vinh Dong in Can Giuoc District, Long An Province. In a document sent to the Ministry of Industry and Trade on May 3, the Long An People's Committee agreed to keep the plan to build the power centre in Phuoc Vinh Dong Commune. However, instead of using coal, Long An suggested switching to liquefied natural gas (LNG). In case the power centre is built in Long Huu Dong Commune, the province suggested using Ultra Supper Critical (USC) technology of Japan or Korea to ensure environmental protection. Earlier at the meeting with localities and related ministries on selecting a location for the power centre on January 5, 2017, deputy minister of Industry and Trade Hoang Quoc Vuong decided to choose Phuoc Vinh Dong Commune as the location for the project due to advantages like easier site clearance. However, in a document sent to the HCM City People's Committee to report to the prime minister, the Department of Industry and Trade of HCM City expressed concern over the power centre project's possible negative impact on the environment. According to the department, even if modern technologies are applied, the project would still pose high environmental risks due to dust emissions, coal ashes and wastewater discharge, affecting the communities in nearby areas, especially Hiep Phuoc urban area of HCM City. According to experts, dust from coal-fired power plants can fly within a 50-kilometer radius from the power plant, depending on the height of the chimney. Therefore, it is unsuitable to build the power centre on the border between HCM City and Long An. http://english.thesaigontimes.vn/53866/Long-An-suggests-using-liquefied-gas-for-power-centre.html

Setting up internal audit within listed companies: Not that hard 12/May/2017 Intellasia| VIR Earlier this year, I penned an article about the dangers of investing in companies with no internal audit function. Ultimately, the goal of the article was to raise awareness of the risks associated with the absence of internal audit in listed companies. Simply put, internal audit is an independent, objective assurance and consulting activity designed to help an organisation accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control and governance processes. In the last few years, we have seen a number of high-profile financial and corporate governance scandals that point to the indispensability of good corporate governance. And it goes without saying that internal audit adds value to that good governance by providing effective oversight of the control environment. Yet, there are many enterprises in Vietnam, both large and small, that continue to operate without internal audit. Internal audit will protect your business When a listed company has no internal audit function, one must ask: Who provides the independent and objective insights that the board needs in order to determine how well risks and mitigating controls are managed? If it is only management that provides that assurance, the board may be operating at a disadvantage. In fact, we have seen many recent examples of management causing a toxic corporate culture that can destroy shareholder value. Neither the boards nor the shareholders they serve should solely rely on the management team when determining how well risks are being managed or controls are being applied in companies in which they have a vested interest. It should be noted here that the lack of an internal audit function does not automatically lead an organisation to failure or reflect bad intentions from its leadership. Likewise, the presence of the function does not guarantee success. However, I do believe that an organisation's commitment to good governance would fail to reach its targets without the independent oversight that internal audit offers. Enterprises in Vietnam are operating in an emerging marketplace that is dynamic, fast-moving, technology-driven, and more competitive than ever. In this space, the odds are piled up against those with a less-than-ideal risk management and control environment. This drives home the value of requirements outlined in the draft decree which will enforce internal audit within listed companies in Vietnam. Via this draft decree, Vietnamese regulators highlights the case for internal audit to serve as a foundation for, if not a catalyst to, restoring investor confidence. Indeed, the presence of an effective internal audit function signals management's and the board's support of strong and effective risk management, internal control, and governance. However, for many listed companies in Vietnam, internal audit is still a new concept. And there are a lot of concerns over how to setup and run this business function in a cost-efficient manner, and in time to comply with the new law. Although internal audit is going to be enforced within listed companies in Vietnam, I suspect there will be strong resistance to an internal audit mandate from some people who either do not understand its value or fear its added scrutiny or cost. But we must overcome that resistance, as well as other concerns that are bothering business decision makers. Setting up internal audit is not that hard The first and foremost question I often get asked is: How much will setting up and running an internal audit function cost my company? This is a legitimate concern, given the current stage of many listed companies operating in Vietnam. Some companies may assign personnel from within to manage its newly created internal audit function to save costs. These people surely understand the company well, but the problem is they are not internal audit professionals and do not know the internal audit techniques. On the other hand, if companies want to look for internal audit professionals in Vietnam, it is difficult because they are rare and could be very expensive to hire. In more advanced companies, they often take a more balanced approach. They can pick someone from within the company to head the internal audit function, and be assisted by a professional service provider at the same time. Either the professional provider can help in setting up the whole internal audit function, or advise to improve the function's effectiveness, or be responsible for all internal audit related tasks of companies if asked. The advantage of this balanced approach is that listed companies can gain access to international audit standards at their convenience, and the cost is much lower than hiring long term audit professionals. For example, at PwC, we always offer an internal audit team ranging from a highly experienced expert to senior staff for every client's project, large or small. Besides the core team leaders, other members are hand-picked depending on the client's business or specific issues such as corporate tax, supply chain or even cybersecurity. Most of these people are Vietnamese, who understand the local culture values and practice international audit standards on a daily basis at the same time. This means we can provide a lot of relevant expertise in a short period of time, which is virtually impossible for any listed companies to have unless they hire the same team on a long term basis. Another major concern is: How much time do we need to set up a capable internal audit function? The draft decree mentioned above is projected to come into effect soon, so it is important for listed companies to start working on it right now. I would suggest these companies to "take a snapshot" of their current organisational structure in relation to internal audit, to see what they are missing and start planning. With an action plan for internal audit strategy to follow in hand, they will know if they need to hire external audit professionals, or work with a professional service provider, or figure out something in between. Setting up a capable internal audit function within a listed company is a process that could take from two to four months. It is not a full-time project and also scalable, which mean if you are a small company, it is not going to be a big project. I have heard many listed companies say that they are afraid this is going to be something challenging. It is not. We have a client who is already listed in Vietnam, but they plan to be also listed in another Asian market, and that market is much stricter in terms of internal audit enforcement. Within a couple of months, we finished helping them to prepare internal audit documents required by that market's regulators, and training their internal audit team so that when we leave, they can do it themselves with confidence. http://www.vir.com.vn/setting-up-internal-audit-within-listed-companies-not-that-hard.html

Rice buyers turn to Vietnam as prices stay firm in Thailand, India 12/May/2017 Intellasia| Tuoitre News Buyers of Asian rice turned to Vietnam this week as prices remained firm in Thailand and India, traders said on Thursday. Thai benchmark 5-percent broken rice RI-THBKN5-P1 edged up to $387-$392 a tonne, free-on-board (FOB) Bangkok, from $380-$390 last week. "Some ships are still loading," said a trader in Bangkok. Thai prices went up last week as exporters rushed to fill shipments amid a slow off-season harvest. Prices are expected to remain high for the next one to three weeks, traders said. Trade will likely stay subdued as rice-consuming countries in the Middle East prepare to observe the Islamic holy month of Ramadan, during which Muslims around the world will be fasting. Ramadan begins on May 26 and ends on June 24 this year. Thailand's commerce ministry said on Thursday it will hold the second state auction of the year on May 24 for 1.82 million tonnes of rice. Vietnam's 5-percent broken rice RI-VNBKN5-P1 was quoted at $355-360 a tonne, FOB Saigon, up from $350-$352 last Thursday on more active trade. "Thai prices increased further, so importers turned to Vietnamese rice," said a Ho Chi Minh-based trader. Vietnam shipped an estimated 1.84 million tonnes of the grain between January and April, down 8.8 percent from the same period last year. Thailand and Vietnam are the world's second and third biggest rice exporters. In India, the world's biggest rice exporter, prices of 5-percent broken parboiled rice RI-INBKN5-P1 were steady at $394-$399 a tonne this week as export demand remained weak amid a rally in local paddy prices. "Overseas buyers are not ready to pay more than $390 and Indian exporters couldn't cut prices due to rising paddy prices," said an exporter based at Kakinada in the southern state of Andhra Pradesh. "Buyers are shifting to other producers like Vietnam." Local paddy prices are rising due to limited supplies and aggressive buying by state-run agencies, dealers said. The Indian government buys rice from local farmers at a fixed price to supply subsidised food and meet any emergency needs such as a sudden spike in prices. An appreciating rupee is also making it difficult for exporters to reduce prices, said another exporter based in Kakinada. The rupee has risen more than 5 percent so far in 2017, trading near its highest level in 21 months. A stronger rupee trims returns of exporters. India mainly exports non-basmati rice to African countries and premier basmati rice to the Middle East. Bangladesh said this week it will import 600,000 tonnes of rice, parts of which will be from the world's top three exporters through government-to-government deals. http://tuoitrenews.vn/business/40961/asia-ricebuyers-turn-to-vietnam-as-prices-stay-firm-in-thailand- india

Business Briefs May 12, 2017 12/May/2017 Intellasia | * Three Vina Capital funds VaF Investment Ltd, Asia Investment & Finance Ltd and VaF PE Holding 5 Ltd have offloaded over 29.4 million shares of Quoc Cuong Gia Lai Company (QCG), or a 10.69 percent stake. * HoangAnh Gia Lai Company (HAG) is seeking shareholder approval to convert 1.1 million bonds into HAG shares at VND8,000 each. It will issue an additionall37.5 million shares, raising its capital from nearly VND7.9 trillion to VND9.2 trillion. HAG issued the bonds to Northbrooks Investments Pte Ltd in 2010 with a total value ofVND1.1 trillion. * Phu Nhuan Jewellery Company (PNJ) has announced that it will pay the remaining cash dividend of VND800 a share for fiscal 2016 on May 31 with the ex-dividend date on May 17. The total cash dividend for 2016, thereby, amounts to VND1,800 per share, providing an aggregate yield of 1.8 percent. * PJICa Insurance Corporation (PGI) plans to pick South Korea's Samsung Fire & Marine Insurance Co. Ltd (SFMI) as its strategic shareholder in a share sale plan to increase its capital to VND887 billion. PGI will offer shares to SFMI at VND30,000 each, a premium ofVND6,800 to thecurrent market price. The firm will hold an extraordinary shareholder meeting in June to seek app. In the first quarter of20 17, PGI gained revenue and 29 percent year-on-year respectively,according to the stock market news website at vietstock.vn * Hoa Phat Group (HPG) reported steel sales of more than 668,000 tonnes in the first four months of this year, meeting 33.4 percent of the year's goal. Over 63,000 to of its steel went to the US, Canada, Australia, Cambodiaand Laos during the period. * Vu Van Tien, a relative of the chairperson of Hanoi Investment general Corporation (SHN), has registered to sell 5.3 million SHN shares to reduce I holding from 9.2 percent to 4.6 percent. * Nguyen Van Hien, a board member of A Cuong Mineral Group Company (ACM), has sold over 960,000 ACM shares, or a 1.88 percent stake. * PGT Holdings (PGT) has registered to buy back 510,000 shares as treasury shares within one monthsstarting from May 15.

ACV feels heat from foreign exchange rates in Q1 12/May/2017 Intellasia| VN Economic Times Japanese Yen appreciating some 5 percent against dong from January to March proves problematic for airport operator. There are times when official development assistance (ODA) loans backfire and that is exactly what has happened to the State-owned Airports Corporation of Vietnam (ACV), with it suffering from increased financial expenses due to the appreciation of the Japanese Yen (JPY) against the dong (VND) during the first quarter. In March, the Vietnamese government was reported to have given approval to the French airport authority's Aeroports de Paris (ADP) acquiring 20 per cent of ACV and becoming its strategic partner. A representative from ACV told VET on May 11, however, that the 20 per cent stake sale is still under negotiation and declined to give a specific timeline. ACV's newly-published first quarter 2017 consolidated financial statement showed its total revenue in the period reached VND4.08 trillion ($179.56 million), mainly from services, which accounted for 87 per cent, or VND3.6 trillion ($158.43 million). The remainder came from sales and other activities. Of the VND20 trillion ($880.2 million) in total liabilities as at March 31, VND14.6 trillion ($642.5 million) was long-term borrowings and financial leasing liabilities in JPY through ODA capital, including loans from the Japan International Cooperation Agency (Jica) for the construction of Terminals 3 and 4 at Tan Son Nhat International Airport in HCM City and loan agreements to build Terminal 2 at Hanoi's Noi Bai International Airport. The corporation had total financial expenses of VND683 billion ($30 million) during the period, VND647.5 billion ($28.5 million) of which was foreign exchange losses, with it to pay more than VND31 billion ($1.36 million) in interest. According to XE.com's data, the JPY appreciated approximately 5 per cent against the VND during the January-March period. At end-March, ACV's consolidated after-tax profit stood at VND 772 billion ($34 million), with earnings per share at VND355 ($0.02). As the corporation officially became a joint stock company from April 1 last year, there are no year-on-year comparisons. Its total assets stood at VND44.84 trillion ($1.97 billion) and charter capital VND 21.77 trillion ($958 million) at the end of the first quarter. It posted a net profit of VND2 trillion ($87 million) on revenue of VND14.5 trillion ($635 million) in 2016. It aims to increase revenue by 8 per cent and pre-tax profit by 3 per cent every year during the 2017- 2020 period. ACV is the monopoly operator of 22 airports throughout Vietnam, of which nine are international and 13 are domestic. It is calling for investment in more airports, to increase the number to 23 by 2020 and 25 by 2030. It plans to list over 2.1 billion shares on the Ho Chi Minh Stock Exchange by the end of this year. During the 2017-2021 period, the corporation targets passenger volumes to grow at 14 per cent per annum, with international and domestic passengers to increase 14 per cent and 13 per cent year-on-year, respectively. Growth in cargo volumes are to rise by 8 per cent year-on-year during the period, the number of landings to grow 14 per cent, and net sales to rise 8.5 per cent per annum. http://vneconomictimes.com/article/business/acv-feels-heat-from-foreign-exchange-rates-in-q1

SonKim Land closes second fundraiser at $46m 12/May/2017 Intellasia| VNS Real estate developer SonKim Land Corporation has closed the first round of a follow-up fundraiser at $46 million, out of an expected $100 million, from Asia-dedicated investment firm EXS Capital Limited. The company made the announcement on its website on Wednesday. The first closure of the second round of fundraising is subscribed as redeemable convertible loans into SonKim Land. This is the second investment by the Asia-dedicated investment fund EXS Capital into SonKim Land after an initial $37 million deal in 2013 made through the Lemongrass Master Fund. For this round, SonKim Land has also partnered with ACA Investment Pte Ltd, a Singapore-based Japanese fund manager that has invested in other Vietnamese companies as well, including retail chains for mother and baby products Bibo Mart and Cung Mua. The property company plans to use additional funds to develop projects across Vietnam, including luxury residential and commercial developments in HCM City. "This is our fifth investment in Vietnam. We have explored more than 100 opportunities in this country and found SonKim Land to be one of the few companies with a disciplined and visionary team," Hiroyuki Ono, Partner at ACA Investments, said in a statement. "Through our investment, we hope to realise potential demand between Japanese corporate hoping to expand into Vietnam and SonKim Land partnering with them." Since the first round of funding in 2013, SonKim Land has grown rapidly and launched several award- winning luxury properties in HCM City, including Gateway Thao Dien and The Nassim. The company's goal is to become the preferred local partner for regional and international firms. http://bizhub.vn/property/sonkim-land-closes-second-fundraiser-at-46m_286061.html

Vietnam Airlines celebrates 10,000th international flight to Da Nang 12/May/2017 Intellasia| VNA The national flag carrier Vietnam Airlines held a ceremony to commemorate its 10,000th international flight to the central province of Da Nang on May 10. The special flight, coded VN431, was from Seoul of the Republic of Korea to Da Nang with 155 passengers on board. The event marked a milestone in Vietnam Airlines' development of international air routes over the years to Da Nang airport, the largest international gateway in the central region of Vietnam. The celebrated flight was also one of the first flights of the carrier operating in the new international terminal T2 of the airport, which opened on May 9. Vietnam Airlines is the carrier with the most air routes to Da Nang, turning the airport into the third largest international airport of the country after Noi Bai in Hanoi in northern Vietnam and Tan Son Nhat in the southern economic hub of HCM City, said Trinh Ngoc Thanh, deputy general director of the carrier. Since 2012, Vietnam Airlines has operated nine domestic and 14 international flights from/to Da Nang airport to bolster trade, cultural and economic links, meeting the increasing demand of local people and tourists. http://en.vietnamplus.vn/vietnam-airlines-celebrates-10000th-intl-flight-to-da-nang/111522.vnp

NganLuong.vn launches online payment service 12/May/2017 Intellasia| The Saigon Times Ngan Luong JSC (NganLuong.vn) on Tuesday launched an automatic payment service called Alepay Tokenisation like Uber and Amazon payment services. Alepay Tokenisation service through a website at www.alepay.vn allows buyers to link their bank accounts to the sellers' websites for automatic payments for their transactions. The service is expected to provide consumers with a simple and convenient payment solution and boost sales on websites and apps in Vietnam. A meaningless character string called Token will be sent to the merchant's website or app after the first successful transaction. Merchants' websites or apps with a Token code connected with Alepay service will automatically deduct money from customers' accounts. The service is beneficial to small merchants or startup enterprises because they do not need security infrastructure meeting strict standards of banks. Alepay Tokenisation is useful to services with periodic charges such as gymnastics, telecommunications, domain hosting, cloud computing service, online sales and online ticket sales. According to a study by Business Intelligence, the total value of unfinished online shopping orders in 2016 amounted to $4.6 trillion, with 46 percent of the deals cancelled at the payment step and 39 percent at the information provision step. This study shows that buyers are afraid of spending too much time providing information, so websites and apps need to simplify the process. Typically, Amazon's 1-Click Checkout service allows customers to save delivery and payment information for next purchases with a single click, similar to Uber's online payment service, which also facilitates customers because it is time-saving. http://english.thesaigontimes.vn/53872/NganLuongvn-launches-online-payment-service.html

VN's 1st Sakura Park adds value to the complex Phu My Hung Midtown 12/May/2017 Intellasia| Bizhub Public areas are the key factor in improving the quality of life for residents in a housing project. They also play a big role in bringing value to their house. Thus, location and good public spaces are the main factors based on which people decide to buy housing whether for living or as an investment. Public area pushes housing prices In 2011 Phu My Hung Development Corporation developed The Crescent area in its Phu My Hung City Centre. When it was finished, it gave a fillip to the housing market in the area. Since then it has steadily pushed up the prices of housing in the surrounding areas, where the transaction rates are always high. The Crescent has not only brought an international-standard living area to Phu My Hung City Centre but also become a popular destination for people all over HCM City. For years, for many families in the city, The Crescent has been the place of choice for rest and amusement during weekends. Residential projects to be built by Sakura Park After the success of The Crescent, Phu My Hung Development Corporation recently launched a new project, Phu My Hung Midtown. The first phase of the project has been sold out, with 98 per cent being snapped up in just three hours on the day sales opened. One of the factors behind this is that the project is developed with a Sakura Park in the complex. Sakura Park, the first park of its kind to be built in Vietnam, will come up on an area of 11,600sq.m along the Ca Cam River. When complete, the park and the entire project will be provided security by Phu My Hung Development Corporation, which is famous for keeping its Phu My Hung City Centre the safest place in HCM City for more than 20 years now. Furthermore, Phu My Hung Development Corporation is famous for its maintenance services after handing over houses to residents. The maintenance services also include upgrades to the surrounding landscapes and buildings. Beauty, safety and well-maintenance will make Sakura Park another ideal place for HCM City's people after the successful Crescent area developed by the company. The Symphony An event to introduce Phu My Hung Midtown's second phase through the opening of The Symphony's show houses attracted more than 600 prospective customers thanks to the value it promises to offer investors because of its amenities. Phu My Hung said: "This is a symphony connecting buildings with each other in the project. It is also an architectural symphony between people and nature." With this concept, the company and its three Japanese partners have decided to build four towers. They will be in two rows of two, ensuring every home gets natural air and light. The condos will measure from 56sq.m to 237sq.m and have one to four bedrooms. Uniquely, The Symphony will have a "guest house" for people visiting residents to rest or stay. Thanks to these amenities, The Symphony is like a five-star resort, enabling residents to enjoy all the trappings of one without having to travel far for a holiday. http://bizhub.vn/property/vns-1st-sakura-park-adds-value-to-the-complex-phu-my-hung- midtown_286062.html

Urban rail faces another delay as debt grows 12/May/2017 Intellasia| VNS Despite several setbacks, investors pledged in February to put the capital city's first elevated railway to trial operations in October. However, financial constraints have once again casted a pall over the project's prospects. Trieu Khac Dung, deputy head of the general Department of Transport Construction and Quality Management under the Ministry of Transport (MoT), said that construction for the Cat Linh Ha Dong metro project is basically finished; the remaining components are installing and fine-tuning machines, as well as trial runs of trains. "However, if the capital for the project does not come through, then it's going to be hard to be on schedule," he said, during a recent conference reviewing the progress of the metro line. According to the project management board, the project's debt to the subcontractor is some VND600 billion (US$26.4 million). They did not respond well to this. The budget 'blockage' has caused machinery installation, which was expected to start in March, to be delayed indefinitely. The metro line was originally slated to start running by the end of 2016, but it was postponed multiple times due to slow progress. The project's cost overruns also attracted public concerns. Although it was approved by the MoT with initial total capital of VND8.8 trillion ($553 million) in 2008, the costs climbed to $868 million in 2016 an additional of $315 million, or a 156 per cent increase. The $419 million initial preferential credit loans from China had risen to some $670 million last year an addition of some $250 million or a 160 per cent increase. The Vietnamese counterpart funds had also increased by $64.5 million (from $134 million to $198 million). The additional loan worth $250 million has not been approved for disbursement by the Export-Import Bank of China (Eximbank), which partly caused the financial shortage, said Dưong Hong, managing director of the project from the general contractor China Railway No. 6 Engineering Group. The overruns were mostly caused by inflation due to the slow progression of the project, MoT representatives said. With the lowest interest rate of 3 per cent per year, each year Vietnam will have to pay some VND442 billion ($19.5 million) of interest if the metro line's operation day continues to be pushed back. It is an equivalent of VND1.2 billion ($5,300) of interest per day, not including the interest arising from the $198 million counterpart funds from the government's budget. Deputy Transport minister Nguyen Hong Trưong has requested the concerned parties to solve the capital issues and speed up subcontractor payments to ensure that the metro line will start operation within the second quarter of 2018. Messy progress Five months before the much-awaited trials, many components of the project are still unfinished which could be partly understandable but, accompanying this state of incompleteness is the fact that safety standards are not being observed, Lao Dong (Labour) newspaper reported. For instance, the haphazard and perfunctory manner with which the stairs leading up to the stations is raising eyebrows. There are no warning signboards, no clear separators between a construction zone and the busy street right beside and there are raw construction materials spilling right into traffic all a recipe for accidents. Hoang Thị Lan, a resident near the La Khe station in the outlying district of Ha Dong, said many people want barriers put up around staircases leading up stations to prevent children from walking up the stairs or elderly people from tripping over raw materials lying scattered around the staircases. In addition, these staircases are quite steep. Watching the construction of the staircases right from the beginning, many local residents in Ha Dong District said an escalator or an elevator would be ideal, since such automatic transportation would certainly welcomed by elderly people or the disabled. Overlapping routes Even if investors find a way to secure enough capital to move on with the remaining components, some experts argue that the inefficiency of the project might make it hard to recuperate the swelling costs. Vice Chair of the Association of Science and Technology of Vietnam, Nguyen Ngọc Long, said that the elevated railway is aimed at mass transport of large number of passengers, which requires a network of connected routes, built in tandem with other urban planning for public transportation. However, with just one route like this, then in its initial phase, efficiency is heavily curtailed, Long said, adding that the whole system must be done faster. Nguyen Xuan Thuỷ, former director of the Transport Publisher, warned that if the linkages between routes and stations, as well as the coordination work, are not handled well, then the ridership will suffer. "Initially, many people might get on the metro, out of curiosity, but over time, inconvenience will deter them." Thuỷ said he also submitted suggestions to the management board regarding the need for escalators and elevators, and the management board responded that elevators will be exclusively reserved for the disabled, escalators are not yet done, and due to the steepness of the staircases, they were made longer. According to the planning, BRT system and metro line has some overlapping sections but they are not connected in any way, experts argue that this lack of interconnectedness have reduced the effectiveness of both the systems. http://www.vir.com.vn/urban-rail-faces-another-delay-as-debt-grows.html

Japan's FamilyMart may limit investment in Vietnam following losses 12/May/2017 Intellasia| VN Express 'We cannot continue to pour in resources,' its president says of business in the Southeast Asian market. Japan's second largest convenience store chain FamilyMart plans to stay focused on domestic market as it reported losses in several Southeast Asian economies including Vietnam. Koji Takayanagi, the chain president, said the firm is reviewing loss-making businesses in Indonesia, Thailand and Vietnam. "If we can get them to rally we will, but we cannot continue to pour in resources," he was quoted by Reuters as saying Tuesday. The Japanese franchise has forecast operating profit to grow by more than twice to 1,000 billion yen ($8.79 billion) in four years from 412 billion yen in the current fiscal year. But as the business is profitable in China and Taiwan, it is not doing well elsewhere. FamilyMart came to Vietnam in 2010 and had expected to open 300 stores in collaboration with local distributor Phu Thai Group. But the partnership ended in 2013, with the distributor taking over 42 FamilyMart stores and turning them into B's Mart in collaboration with Thailand's Beri Jucker Plc. The brand made a comeback in July 2013 and is now operating 130 stores in HCM City, the nearby resort town of Vung Tau and in Binh Duong Province, aiming to expand to 150 by the end of this year. Takayanagi said he finds it easier to achieve results at home, where worsening labour shortage is leaving convenience stores scrambling to find workers. "We know what to do," he told Reuters, adding that the chain is ready to offer items with added value to serve its aging population. He also said his company is considering starting a new business with Hong Kong-based investment holding company CITIC Ltd and Thailand's largest private conglomerate Charoen Pokphand. Details are not revealed, but he said the companies are looking at a range of opportunities beyond convenience stores. The chain's diversion comes as its rival Seven & i Holdings, which owns Japan's largest convenience store chain 7-Eleven, keeps expanding overseas, most recently in the US Nikkei last August said the first 7-Eleven store will open in Vietnam in February 2018, adding heat to the convenience store boom with entry and expansion from many local and foreign retailers in recent years. Vietnam's retail market is listed in the top five in Southeast Asia and ranked 11th globally in terms of growth rate, based on the A.T. Kearny 2016 Global Retail Development Index. Vietnam's trade ministry has projected the country's retail market to hit $179 billion by 2020, a jump of 52 percent from last year, with foreign convenience store operators already holding a 70-percent market share. The sector has a lot room to grow in Vietnam, where more than half of a population of nearly 92 million are young and the annual average income expected to increase very fast, the ministry said. http://e.vnexpress.net/news/business/japan-s-familymart-may-limit-investment-in-vietnam-following- losses-3583060.html

Festival tourism market now being tapped 12/May/2017 Intellasia| Vietnamnet While other Asian countries have national festivals to attract foreign travellers, Vietnam has only a few that have been marketed well. Festivals take place throughout the year in different localities, but they are not organised in a professional way to achieve international stature. Meanwhile, tourism sites do not pay appropriate attention to festival tourism, though they can see the number of tourists increases in festival seasons. Da Nang, with one of the most beautiful beaches on the planet, is a rendezvous for travellers thanks to the Da Nang International Firework Competition (DIFC). However, as Huynh Van Hung, director of the Da Nang City Culture & Sports Department, said, since DIFC is a competition, letting off fireworks is the only activity of the event, while there was no extra activity on the occasion. DIFC only lasted two days and is organised once every two years. According to Ngo Quang Vinh, director of the Da Nang Tourism Department, a survey in 2015 found that after a firework competition, the Han Market's management board reported a twofold increase in revenue. Da Nang has changed its approach. Having realised the great potential of festival tourism, the city's authorities decided to turn DIFC into DIFF (Da Nang International Firework Festival) this year, which lasts from April 30 to June 24. As such, Vietnam, for the first time has a festival lasting throughout the summer. This is the biggest firework festival in SE Asia with five places for firework performances and a series of associated events, which all have made Da Nang busy throughout the summer. Da Nang hopes it would become an attractive destination point for about 2 million travellers in summer thanks to the 'firework city' brand. Among tourism complexes, Sun World Ba Na Hills can best exploit the potential of festivals to attract travellers. Visitors to the leading resort in Vietnam in any season can enjoy the festive atmosphere. In spring, Ba Na is brilliant with the colors of hundreds of flowers in Spring Flower Festival. In summer, the Wine Festival and beer- B'Festival are held. In autumn and winter, visitors will be able to enjoy the Halloween Festival and Christmas season. In 2016, the resort received 2 million visitors. http://www.vir.com.vn/festival-tourism-market-now-being-tapped.html

Vietnam province fears 'another Formosa' as paper mill raises environmental concerns 12/May/2017 Intellasia| Tuoitre News With the fish death disaster caused by wastewater dumped by a steel plant into the waters off central Vietnam still fresh in the minds of citizens, administrators in a province housing a paper mill are worried about giving history the opportunity to repeat itself. The administration of the central province of Quang Ngai has called on the Ministry of Natural Resources and Environment to provide more detailed guidance on how to ensure the VNT19 pulp mill in Binh Son District will not become 'another Formosa.' The Formosa scandal refers to last year's disaster in which more than 100 metric tonnes of fish were killed, severely affecting the environment, jobs, and economies of four provinces along Vietnam's central coast, all thanks to poorly treated wastewater from the namesake steel mill in Ha Tinh Province. Taiwan's Formosa Plastics Group later took responsibility for the disaster and agreed to pay $500 million in damages to the government. In a dispatch sent to the Ministry of Natural Resources and Environment on April 3, Quang Ngai chair Tran Ngoc Cang demanded that the ministry confirm that the VNT19 wastewater discharge system installed under the water's surface is in line with legal regulations. The system raised concerns when it was publicised that it is the same system as that used at Formosa Ha Tinh. The VNT19 complex, developed by the eponymous company, consists of a pulp making plant, a wastewater treatment system capable of treating 73,000 cubic meters of water per 24-hour period, and a 5.2km discharge pipeline. The developer wants to discharge wastewater through Le Ninh River to the Viet Thanh Bay, about 500m to 1,000m away from the Le Thuy beach in the East Vietnam Sea. More than 2,000 residents living near the pulp mill earn their livelihood from the sea, so the community was understandably on edge after hearing the mill will discharge its water into the ocean. The Quang Ngai administration has every reason to fear that the VNT19 plant will follow in Formosa's footsteps. Ignoring requests VNT19, located on a 117-hectare plot in the Dung Quat Economic Zone, received its investment license in 2011 for its first-phase operation to run at a capacity to produce 250,000 metric tonnes of products per year. When licensing the project, Quang Ngai insisted that the developer use advanced technology and brand new machinery and equipment for the facility. In 2014, the developer asked to increase the capacity to 350,000 metric tonnes a year. Quang Ngai approved the request under the condition that the developer ensure the project will be pollution-free. In September 2015, the Ministry of Natural Resources and Environment approved the developer's environmental impact assessment for the facility, reiterating that it must use 100 percent new machines. However, after VNT19's first shipment of equipment and machinery arrived at Dung Quat port in 2015, authorities discovered that the imports were used machines from a dismantled pulp mill in Norway, a clear violation of the company's commitment to use brand new hardware. The discovery came after Quang Ngai had already reclaimed more than 87 hectares of land, including 50 hectares of mangrove palm plantations from local residents to make space for a water supply reservoir for VNT19. In 2017, the Quang Ngai administration asked the developer to hire an independent agency to assess the plant's technology. VNT19 then contracted Da Nang-based A Viet Co. for the job, but the Quang Ngai technology department quickly detected that the company had not been certified as an assessment firm by the Ministry of Science and Technology. In January 2016, the Dung Quat Economic Zone suggested that the Quang Ngai construction department ask VNT19 to relocate their discharge pipeline to Le Thuy beach. "Dumping the [treated] wastewater directly into the sea leaves a smaller environmental impact," the economic zone's deputy manager Dam Minh Le explained. But local residents do not seem to agree, citing the fact that the pipeline is underground as a difficulty in authorities supervising the wastewater discharge. Quang Ngai authorities have demanded that the developer build a reservoir to hold the treated wastewater while administrators and locals oversee the treatment quality before the water is released into the sea. Le insisted that no solution is better than having the pulp mill discharge its wastewater into the sea. "It does not really matter where the wastewater is released," Le said. "What's more important is that we ensure there is no environmental disaster." Le said the environment ministry will soon send a team of experts to examine the VNT19 project. http://tuoitrenews.vn/business/40929/vietnam-province-fears-another-formosa-as-paper-mill-raises- environmental-concerns

Chinese traders' requests for pork cuts limits sales of Vietnamese pork 12/May/2017 Intellasia| Vietnamnet China consumes 144,000 tonnes of pork a day, according to FAO, but Vietnamese farmers cant sell their pork to the country because of demands made by Chinese traders. This comes at a time when there is a pork oversupply in Vietnam, with prices plummeting. Dat Viet quoted a FAO's report as showing that China needs 53 million tonnes of pork a year. At the time when China began reform in 1979, pork accounted for 92.1 percent of the 'meat basket' of China. The figure has fallen in recent years, but still accounts for 65.1 percent of the total demand for meat. According to USDA, in 2012-2016, China's pork consumption increased by 6.1 percent, while beef consumption increased by 11.5 percent. Regarding the selling price, FAO reported that pork is sold at $4.96 per kilo, or VND110,000 in cities. China is the world's biggest pork importer. In 2010, the country imported 200,000 tonnes, while the figure increased by twofold in 2011 and reached a record high of 778,000 tonnes in 2015. In 2016, it imported approximately 1 million tonnes, or 2 percent of the domestic pork output. Vietnam's pork exports through official channels remain modest, while the exports across the border gates are much higher. Live pork is exported mostly through the Chi Ma and That Khe border gates in Lang Son province, and Bac Phong Sinh Mong Cai in Quang Ninh province. China has high demand for pork, while Vietnam has big supply of pork. However, Vietnam now still suffers from a pork oversupply. Dan Viet newspaper reported that in late April, two Chinese businesspeople came to Binh Duong province and said they wanted to buy 2,000 pigs a day at the price of VND30,000 per kilo, which was nearly twice as much as the current price in the domestic market. However, Vietnamese farmers said they could not satisfy the order. The problem was that the Chinese businesspeople wanted the slaughtered and cut meat to be delivered in frozen containers. The director of a livestock company in the south said after hearing about the demand from Chinese partners, he contacted slaughterhouses in Tay Ninh province for cooperation. One of the slaughterhouses has the capacity of 2,000 pigs a day and has a HACCP certificate. However, it has only the slaughter line and nothing more. Meanwhile, Chinese clients require other utilities as well, from meat cutting, coiling, freezing to storage units. The other slaughterhouse in Cu Chi district in HCM City was even worse. Though it had higher capacity of 4,000 pigs a day, all the work there was done manually. Meanwhile, the Ministry of Agriculture and Rural Development (MARD) warns that the Chinese market is unstable. Sometimes it imports meat in large quantities, but it suddenly stops imports later. http://english.vietnamnet.vn/fms/business/177973/chinese-traders--requests-for-pork-cuts-limits-sales-of- vietnamese-pork.html

Video ads a menace to brand safety in Vietnam report 12/May/2017 Intellasia| Vnexpress Regional rankings place Vietnam as the second-most at risk country from harmful content in Southeast Asia. Video advertisements in Vietnam, mostly on YouTube, are a serious threat to brand safety, and the second most dangerous in Southeast Asia after Indonesia, according to global technology and data company Integral Ad Science (IAS). Indonesia's video ads were at the highest risk, with 15.3 percent of ad impressions flagged for appearing alongside content deemed unsafe, while its display ad risk was second highest in the region at 5 percent after Malaysia, Marketing Magazine reported, citing IAS data on brand risk in the online environment during the second half of 2016. Following closely behind Indonesia for video brand safety risks was Vietnam, with 13.2 percent of video ads dubbed as a risk to brand safety, while its display ad risk was relatively low at 4.2 percent, the report said. Malaysia's brand safety risk was the highest for display ads at 6.7 percent, while its brand safety risk for video ads was also relatively high at 7.1 percent. Thailand's online environment posed the lowest threat to brand safety in Southeast Asia, with only 1.6 percent of display and 2.2 percent of video ads appearing on unsafe websites. Singapore had the second safest online environment after Thailand, with only 2.7 percent of its display ads and 4.6 percent of its video ads featuring in unsafe environments. In February, Vietnam's Ministry of Information and Communications found more than 8,000 videos containing distorted historical facts about the country on YouTube. These videos featured advertisements for several major Vietnamese brands but the companies in question said they did not control where there ads appeared. The government subsequently called on all companies doing business in the country to stop advertising on YouTube, Facebook and other social media until they find a way to halt the publication of "toxic" anti- government information. "We withdrew our ads from YouTube as soon as we were being warned by the authorities. We do not want our brands to appear alongside toxic content," Nguyen Tran Hung Long, senior media manager at Masan Group Corporation, told VnExpress. These warnings have reminded businesses to pay more attention to brand safety on the internet, said Vinamilk marketing manager Pham Minh Tien. Nearly 49 million people in Vietnam, or more than half of the country's population, are online. A Nielsen survey released last September found that 92 percent of them watch online videos at least once a week, and 64 percent are daily viewers. YouTube and Facebook account for two-thirds of the digital media market share in Vietnam, according to Nguyen Khoa Hong Thanh, operations director at digital marketing agency Isobar Vietnam. http://e.vnexpress.net/news/business/companies/video-ads-a-menace-to-brand-safety-in-vietnam-report- 3583106.html

Many Korean firms come knocking 12/May/2017 Intellasia| The Saigon Times As many as 107 South Korean companies active in the fields of environment and energy technology are coming to Vietnam to look for partners and explore the market through a specialised exhibition that will open today in HCM City. Jaehan Shin, exhibition team manager of Bexco, a Korean firm joining the International Exhibition for Environment and Energy Technology (Entech Vietnam 2017), told reporters on May 10 that they were the largest delegation of environment and energy technology of the country coming to sound out business opportunities in Vietnam. The exhibition is taking place at the Saigon Exhibition and Convention centre (SECC) in District 7. This event has been held eight times in a row in Hanoi. This is the first time it will take place in HCM City, attracting the attention of many Korean technology companies who see great growth potential in the domestic market. Shin said Korean businesses were interested in the Vietnamese market and if SECC could offer more space, the number of Korean enterprises participating in this exhibition might be up to 200. The prominent technologies of Korean firms to be introduced at Entech 2017 involve power generation, wastewater treatment and renewable energy. Most of Korea's major companies operating in these areas are present in Vietnam. Participants in this event are mainly small- and medium-sized enterprises with technology suitable for domestic producers, said Shin. Entech 2016 in Hanoi allowed Korean businesses to cut deals with more than 270 Vietnamese customers and those from other countries in Southeast Asia, with a total value of over $35 million. This time, Shin hopes the total contract value could increase to about $37 million. Through the Korea Trade and Investment Promotion Agency (Kotra), businesses from this Northeast Asian nation have invited about 300 Vietnamese enterprises that are buyers or importers to attend this event. Entech Vietnam 2017 in HCM City will last until this Saturday, featuring 260 booths of 150 companies from South Korea, Japan, Taiwan, China and Vietnam. This year, Entech Vietnam takes place alongside the Eco Products International Fair 2017 (EPIF), organised by the Asian Productivity Organisation (APO). Together the exhibition, there will be an international forum on environment and economy called "Action for the future towards sustainable development", a meeting between enterprises and leaders of the Ministry of Natural Resources and Environment, a workshop on "Applying environmentally friendly technology in waste disposal", the Vietnam-Korea Environmental Industry Cooperation Forum, and a workshop on "Policy dialogue on low carbon technology and Vietnam's own contributions." http://english.thesaigontimes.vn/53877/Many-Korean-firms-come-knocking.html

Central city to host Intl Start-up Conference and Exhibition 12/May/2017 Intellasia| VNS More than 1,000 participants including local and foreign investors, start-up businesses and investment funds will attend the second International Start-up Conference and Exhibition in Da Nang on July 21-22. Chair of Da Nang's Co-ordination Council for the Business Start-up Network, Vo Duy Khuong made the reveal at a press conference yesterday, stating that the event, entitled Surf-the start-up wave 2017, would include 80 pavilions from start-up projects and businesses, institutes, colleges and sponsors in panel discussions, roundtables, pitching competitions, and exhibitions. Khuong said the event's organising committee had invited motivational speaker Jeff Hoffman, who is cofounder of Priceline.com and cofounder of ColorJar, to join the two-day event focusing on the start-up ecosystem, support policies and investment as well as sharing experience and technology. The event aims to boost Da Nang as an innovation hub of central Vietnam and the region. The event is sponsored by the Asian Development Bank, the Mekong Business Initiative, Swiss EP and the Innovation Partnership Programme in Vietnam. Last month, the central city's Song Han Incubator launched a tourism start-up programme with the sponsorship of the Vietnam Mentors Initiative, I-Angel, Women's Initiative for Start-up Enterprise and Swiss SP. http://vietnamnews.vn/bizhub/376240/central-city-to-host-intl-start-up-conference-and-exhibition.html

HCM City: Eco-Products International Fair promotes green growth 12/May/2017 Intellasia| VNA The Eco-Products International Fair 2017 (EPIF) opened at the Saigon Exhibition and Convention Centre in HCM City on May 11 with theme "Green Technologies and Products: Actions for the Future". The event is co-held by the Asian Productivity Organisation (APO), the Vietnam Environment Administration (VEA), and the Vietnam Chamber of Commerce (VCCI). Addressing the opening ceremony, deputy minister of Science and Technology Tran Viet Thanh said the EPIF 2017 is an important event that reflects directions of Vietnam's economic development. It also aims to raise public awareness of sustainable development through production and consumption of eco-friendly products, services and technologies, he noted. Thanh emphasized that as sustainable growth is a vital strategic direction for the national development, the government's policies and regulations have been improved to facilitate the private sector producing green products. Local firms should shift their focus on developing eco-friendly products and services in order to meet the increasing demand of consumers and strict requirements of the global supply chain, he suggested. VCCI vice President Hoang Quang Phong said the event provides an opportunity for not only enterprises to show off their latest green products and services and seek partnership but also policymakers to identify needs and solutions for green growth in Vietnam. Hajime Bada, Chairperson of the Japan-based Green Productivity Advisory Committee, described the fair as a bridge for firms to set up cooperation and transfer of green production and renewable energy technologies. The EPIF was initiated by the APO in 2004 and is organised in rotation between the APO members. This year is the second time Vietnam has hosted the event which runs through May 13. http://en.vietnamplus.vn/hcm-city-ecoproducts-intl-fair-promotes-green-growth/111543.vnp

Vietnam eTrade Conference 2017 organised in Hanoi 12/May/2017 Intellasia| VNS The Vietnam eTrade Conference 2017 (VETC) will be held in Hanoi on May 16, according to the Vietnam E-commerce Association (VECOM). According to chief officer of VECOM Tran Van Trong, the conference is the first of its kind to be organised in Vietnam, and is an opportunity for agencies, organisations and businesses to exchange and share experiences on the trend in online import and export and discuss actions to develop this area. The conference will focus on three topics online public service or online transaction between government and businesses (G2B), opportunities to develop export from e-trade exchange following the model of business to business (B2B), and the trend and methods to develop the model of business to business to customer (B2B2C). "It is a chance for businesses to learn about e-trade exchange and the trend of online retail to foreign customers. Enterprises can also propose to the State to provide online public services for import and export," said Chair of VECOM Nguyen Thanh Hung said. http://bizhub.vn/events/vietnam-etrade-conference-2017-organised-in-ha-noi_286083.html

Conference highlights investment opportunities for Belgian firms 12/May/2017 Intellasia| VNS Vietnam's economic development and advantages in attracting investment were introduced to Belgian enterprises at a conference in Belgium's southern Mons City on May 10. Participants at the event highlighted the positive impact of the Vietnam-EU free trade agreement (EVFTA) and proposed measures to expand import-export activities between the two sides. Nguyen Canh Cuong, Vietnamese trade counsellor in Belgium, noted that the country has maintained stable development with GDP growth of 6-8 percent, while exports and imports have risen 20-30 per cent each in recent years. He stressed that abundant business opportunities are available in many areas for potential investors, adding that prospects are bright as the Vietnamese government is in the process of signing the EVFTA. Meanwhile, Frauker Sommer, who is in charge of the European Union's bilateral trade with Vietnam, introduced the EVFTA and gave her assessment on benefits in tariff and import-export brought by the deal as well as comparative advantages for each side and ways for businesses to expand their import-export activities. She underlined that EVFTA is the best free trade agreement that EU has reached with a developing country. Speaking to a Vietnam News Agency correspondent in Belgium, Hainaut Province Governor Tommy Leclercq said the province, the largest locality in Belgium's Wallonia French-speaking region, hopes to promote economic ties with Vietnam in various areas, especially in import-export. He said following the conference, the province would hold a number of business seminars focusing on fields important to Vietnam and attractive to Belgian investors. The governor also revealed that the province has plans to send a delegation to Vietnam in September or October this year to discuss cooperation possibilities with potential partners. General director of Delaunoit group Jaques Delaunoit said with the support of the European Commission, he has realised feasible investment opportunities in Vietnam. According to chair of the Belgium-Vietnam Chamber of Commerce Huynh Trang Long, several Belgian businesses are keen on seeking partnership with Vietnam for stronger economic ties. http://bizhub.vn/news/conference-highlights-investment-opportunities-for-belgian-firms_286080.html

Vice President attends Vietnam-Japan business forum 12/May/2017 Intellasia| VNA Japanese firms are welcome to invest in Vietnam, particularly in the support industry, manufacturing, energy saving and hi-tech agriculture, vice President Dang Thi Ngoc Thinh said at a Vietnam-Japan business meeting in Tokyo on May 11. Addressing an audience of about 300 Vietnamese and Japanese firms at the meeting, the vice President, who is on a week-long visit to Japan, said that the Vietnam-Japan partnership is growing strongly in all fields, including politics, diplomacy, economy, culture and tourism. She highlighted Vietnam's consistent policy of treasuring relations with Japan and considering the country as an important partner and a close, long-standing friend. Thinh held that the forum is a good chance for businesses of both sides to meet and seek partnership opportunities, while updating information of policies related to business and investment of the two countries. Vietnam will create optimal conditions for Japanese enterprises in investing in Vietnam, contributing to strengthening the bilateral friendship, she stated. In his welcome speech, President of the Japan Chamber of Commerce and Industry Akio Mimura said that the Vietnam-Japan relationship is thriving in various fields. Currently, more than 1,600 Japanese enterprises are operating in Vietnam, he noted, adding that 740,000 Japanese tourists visited Vietnam in 2016. According to Mimura, the JCCI has sent many delegations to Vietnam for fact-finding tours. He noted that Vietnamese officials have demonstrated the Vietnamese government's encouragement for Japanese businesses and expectation for stronger Vietnam-Japan economic partnership. Thai Huong, CEO of TH Group, said her group sees big investment opportunities in Japan, as Japan's demand for safe farm produces is rising and Japanese customers are interest in tropical agriculture products. However, she underlined that Japan's strict regulations on food safety pose a challenge for Vietnamese firms. At the event, Vietnamese and Japanese businesses also discussed in groups to find out each other's cooperation interest. http://en.vietnamplus.vn/vice-president-attends-vietnamjapan-business-forum/111534.vnp

Top Thai-branded products displayed in HCM City 12/May/2017 Intellasia| VNA More than 150 Thai businesses are showcasing their best products at the annual fair Top Thai Brands 2017 that kicked off in HCM City on May 11. Those products include food, beverage, apparel, cosmetics, household appliances, and automobile and motorbike components and spare parts. This year's fair, which will run through May 14, also features booths promoting Thai tourism and providing advice about franchising and study opportunities in Thailand. Pitinun Samanvorawong, minister Counsellor of the Thai Trade Centre at the Consulate general of Thailand in HCM City, said Top Thai Brands 2017 also includes a business-to-business programme with about 1,500 scheduled appointments, aiming to help Vietnamese and Thai firms seek distributors and franchisees. Le Ngoc Trung, deputy director of the South Agency of the Ministry of Industry and Trade, said the annual fair provides a platform for investors and enterprises of Vietnam and Thailand to share experience and expand partnerships. This year's event gathers a number of major companies and strong brands from Thailand, promising chances for stronger trade with and investment in Vietnam. The two countries target bilateral trade at 20 billion USD by 2020. Thailand is currently the 10th biggest foreign investor in Vietnam with nearly 500 projects worth about 10 billion USD. http://en.vietnamplus.vn/top-thaibranded-products-displayed-in-hcm-city/111530.vnp

HCM City pedestrian mall introduces new street shows 12/May/2017 Intellasia| VN Economic Times Visitors to Nguyen Hue pedestrian mall in downtown HCM City will have the chance to enjoy different street and traditional Vietnamese art every weekend, starting this Saturday. A new programme entitled "HCM City Street Show" will get underway on May 13 and then be scheduled weekly from 8pm to 9pm every Saturday and Sunday night along the mall, according to the city's tourism department. With new and various themes every week, the six different stages along the pedestrian mall designed in the city's typical street style will have different performances at the same time. The theme of the first is "Welcome to HCM City". The highlight of the "HCM City Street Show" will be a number of "fusion" performances, combining international modern street arts with traditional Vietnamese folk culture, according to the tourism department. The weekend shows will not only feature common street arts like magic and singing but also traditional arts such as folk songs and gong dancing. Besides regular performances, after every six months, a festival of international street art will be organised as part of the show. Street art competitions are also expected, in preparation for the larger ambition of organising an international street art festival. The programme is also to introduce and add to the itineraries of tour operators as well as appear in social media and regular media. "We expect the programme to become something that holds both cultural and entertainment value, helping to increase the appeal of HCM City as a tourism destination," Bui Ta Hoang Vu, director of the tourism department, said. "The programme will also give local residents a new venue to relax over the weekends." http://www.vir.com.vn/hcm-city-pedestrian-mall-introduces-new-street-shows.html

Economy

WEF-Asean a chance for Vietnam to assert its role in SEA region 10/May/2017 Intellasia| VNA The upcoming World Economic Forum on Asean (WEF-Asean) is expected to be a chance for Vietnam to affirm its role in and responsibility towards the Asean and the region and to promote the country's growing cooperation with the WEF. Prime minister Nguyen Xuan Phuc will lead a Vietnamese delegation to the WEF-Asean in Phnom Penh, Cambodia, on May 11-12 at the invitation of the Cambodian prime minister Samdech Techo Hun Sen and WEF Executive Chair Klaus Schwab. The WEF is a prestigious and efficient global forum attracting leaders of almost all major countries, international organisations, and businesses from around the world. It holds a number of forums at international and regional levels each year to discuss economic-development issues and other global affairs. Besides the most important WEF event which is the annual meeting in Davos, Switzerland, other regional WEF events include the WEF on East Asia, the WEF on Latin America, and the WEF on the Middle East, are also held every year to assess and analyse development issues of the respective regions. Vietnam and the WEF began their cooperative relationship in 1989. Senior leaders of Vietnam have regularly attended the WEF Annual Meeting in Davos and the WEF on East Asia. WEF Managing director Philipp Roesler visited the country in November 2014, July 2015 and April 2016. After nearly three decades, the WEF has become an important dialogue forum between Vietnamese government leaders and the world's leading enterprises. Aside from the attendance in WEF meetings, Vietnam and the WEF have expanded their cooperation to other spheres such as national competitiveness improvement, agriculture and industry. The country also initiated the organisation of the WEF on the Mekong Region so as to popularise the Greater Mekong Sub-region to major businesses around the globe. The event in October 2016 drew nearly 200 delegates, including leaders and economic ministers of the Greater Mekong Sub-region nations and over 100 representatives of WEF member businesses and regional enterprises. There are 11 Vietnamese businesses which are members of the WEF, including military-run telecommunications group Viettel, FPT Corporation, VinGroup, VinaCapital, the Vietnam Posts and Telecommunications Group (VNPT), the Join Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank), and Saigon Invest Group. The WEF-Asean 2017, themed "Youth, Technology and Growth: Securing Asean's Digital and Demographic Dividends", takes place amid the 50th founding anniversary of Asean. It is set to attract more than 600 delegates, including the prime ministers of Cambodia, Laos and Vietnam, and the President of the Philippines. The event will focus on assessing Asean's development and integration and problems the bloc will face in the time ahead. Other issues on the agenda are Asean's position in the new global geopolitical and economic context, the prospect of the Asean Economic Community, and impacts of the Fourth Industrial Revolution on Asean countries. At the event, Cambodia will hand over the hosting of the WEF-Asean 2018 to Vietnam. http://en.vietnamplus.vn/wefasean-a-chance-for-vietnam-to-assert-its-role-in-sea-region/111438.vnp

Apec delegates debate export certificates, role in facilitating trade 10/May/2017 Intellasia| VNA Export certificates and their role in facilitating trade in safe food products in the Apec region was the main topic of a workshop which opened in Hanoi on May 9 as part of the second Apec Senior Officials Meeting (SOM 2) and related meetings. The two-day workshop was co-organised by the Sub-Committee on Standards and Conformance (SCSC), the Food Safety Cooperation Forum (FSCF) and the Partnership Training Institute Network (PTIN). On the first day of the workshop, delegates from 21 Apec member economies focused discussion on a range of topics such as developing baseline assessments and self-reports of the Apec economies in the implementation of principles for certification set forth by the Codex Committee on Food Import and Export Inspection and Certification Systems (CCFICS). They identified gaps and challenges in implementing CCFICS principles: risk-based criteria for products that require certification, practical implementation of model certificates, least burdensome measures to achieve the appropriate level of protection and the use of Good Regulatory Practices (GRPs). The panels continued dialogues on using innovative options to improve communication and information flow related to export certificates and discussed the past deliverables that are included in the Apec Export Certificate Toolbox and suggested possible updates and additions. They were provided with information on useful tools when considering export certificate regulations, including the use of good regulatory practices; using Codex guidance to determine if or not when an export certificate may be necessary, ways to streamline requirements, appropriate use of technology and elimination of unnecessary certificates such as in the case of low risk products. On the second working day, the delegates are scheduled to discuss issues related to the Codex guidance on generic official certificates, the benefits of and challenges when using the model and essential information needed to provide the acceptable level of protection for the importing economy. They will also share experience in implementing the Generic Model Official Certificate (GMOC) in the Apec region. Apec groups 21 member economies, Australia, Brunei, Canada, Chile, China, Hong Kong (China), Indonesia, Japan, the Republic of Korea, Malaysia, Mexico, New Zealand, Papua New Guinea, Peru, the Philippines, Russia, Singapore, Chinese Taipei, Thailand, the US and Vietnam, which together account for 39 percent of the world's population and contribute 59 percent of the global GDP and 48 percent of the global trade by November 2016. http://en.vietnamplus.vn/apec-delegates-debate-export-certificates-role-in-facilitating-trade/111410.vnp

Policies take effect in May 10/May/2017 Intellasia| VGP From May 5, acts of delivering advertisement brochures, if causing negative impacts on social and traffic order and safety, shall be fined from VND 200,000 to VND 500,000. The government on March 20, 2017 issued Decree No. 28/2017/ND-CP on amendments to Decree No. 131/2013/ND-CP on penalties for administrative violation against copyrights and related rights and Decree No. 158/2013/ND-CP on penalties for administrative violations against regulations on culture, sports, tourism and advertising. Under the new Decree, acts of delivering advertisement brochures, if causing negative impacts on social and traffic order and safety, shall be fined from VND 200,000 to VND 500,000. A fine from VND 5-10 million shall also be applied to individuals whose products are printed on the aforesaid advertisement brochures (only if the delivery of such brochures cause negative impacts on social and traffic order and safety). The Decree will come into effect since May 5. According to Decree No. 33/2017/ND-CP, the government will impose fines ranging from VND250 million (US$11,125) to VND2 billion (US$89,000) on administrative violations in mineral and water resource sectors. Administrative violations in the water resource sector involve violations in inspection, planning, surveying, exploitation and use of water resources; violation in reservoirs and reservoir operations; and violations in water resources protection among others. Violations in the minerals sector include breaking regulations related to surveying and exploring minerals, mineral exploitation auction, using geological inspection information and violations of benefits to localities and residents where minerals are exploited. Offenders can be slapped with additional penalties, depending on the scale of violation. The additional penalties include the withdrawal of licenses on surveying, exploitation and use of minerals and water resources from between one and 24 months; suspension of project operations from one to 12 months; and confiscation of exhibits and mineral specimen. Culprits will also have to take measures to undo the effects of the violations on pollution and environment. The Decree will take effect since May 20. The use of any banned substance in animal husbandry and aquaculture shall be fined from VND70 million to VND 100 million, according to government's Decree No. 41/2017/ND-CP scheduled to take effect since May 20. Individuals and organisations using banned substances in animal husbandry and aquaculture shall also be subjected to 6-12 month suspension instead of the current 1-3 month suspension. The transport, trading, collection, storage, processing of animal products containing banned substances shall be fined between VND 40 million to VND 50 million. http://www.vir.com.vn/policies-take-effect-in-may.html

New decree gets tough on banned substances in husbandry 10/May/2017 Intellasia| The Saigon Times Those using banned substances in the production, processing and trading of animal feed shall be fined up to VND100 million, according to a new government decree. With effect from May 20, Decree No. 41/2017/ND-CP on administrative penalties for violations in the fields of aquaculture, veterinary, and animal feed slaps a penalty of VND50 million to VND70 million on those using banned substances in animal farming and aquaculture. Even for antibiotics that are not banned, anyone found to use such substances without declarations or not in line with such declarations is also fined VND20 million to VND30 million. Violators shall also be subject to a 6-12 month suspension of production, processing and trading, and forced to destroy or change the use of animal feed containing banned substances. Farms whose animals test positive for banned substances will have to continue raising the animals until the residues of such banned substances are not present. If the violators use the banned substances again, they shall be forced to cull the animals. Decree 41 also regulates penalties for the import of poor quality feed. Accordingly, importers will be fined from VND70 million to VND100 million for importing animal feed containing banned substances. A fine from VND40 million to VND50 million will be imposed on imports of feed that are not on the list of animal feed allowed for circulation in Vietnam or without permission by authorities. The remedial measures for this violation such as reprocessing or changing the use of products or even re-exporting or destroying products will be applied. According to the latest news from the Ministry of Agriculture and Rural Development, the animal health agencies in 11 provinces took 973 urine samples and 52 meat samples at slaughterhouses for testing to detect Salbutamol, a banned substance popular in breeding in Vietnam in the recent past. No samples were positive for Salbutamol, however. http://english.thesaigontimes.vn/53820/New-decree-gets-tough-on-banned-substances-in-husbandry.html

Energy an ongoing challenge 10/May/2017 Intellasia| VN Economic Times Vietnam's high growth means a greater reliance on coal to meet its rising energy demand. More than $400 million was spent during the first quarter of this year on importing coal, newly-published figures from the Vietnam Industry and Trade Information centre (VITIC) reveal. Volume increased 1.6 per cent year-on-year and price 90.6 per cent. Australia remained the largest provider of imports, with nearly 1.3 million tonnes worth $157.2 million (up 11.6 per cent and 136.8 per cent year-on-year), followed by Indonesia with nearly 1.1 million tonnes worth $77.2 million (up 127 per cent and 260 per cent). Vietnam also imported 555,568 tonnes of coal worth $60 million from Russia, 232,890 tonnes worth $52.5 million from China, and 53,385 tonnes worth $3 million from Malaysia. Historically, Vietnam has been self-sufficient in coal but this has now changed. It is now transitioning from exporting to importing energy. "Vietnam imported nearly 10 million tonnes of coal in 2016 and purchased 5 billion kWh of electricity from China in the peak period," deputy minister of Industry and Trade Hoang Quoc Vuong told a recent energy conference. "While the amount of imported electricity from China is declining, it still stands at around 1 billion kWh," he added. "Vietnam will also need to import an estimated 17 million tonnes of coal, equivalent to 31 per cent of demand, to generate electricity to 2020, with the amount to subsequently head further upwards." Coal-fired power, while having environmental impacts, is still the necessary power source for Vietnam to meet its growth demand, deputy minister Vuong explained, adding that Vietnam will not sacrifice the environment for economic development. "In the time to come, the supervision process and environmental standards applied on coal-fired power plants will be stricter. Investors will also have to come up with eco- friendly solutions for coal ash handling." Last November, after years of mulling over costs, feasibility, foreign cooperation, and safety issues, Vietnam pulled away from nuclear power. The two nuclear reactors still on the drawing board would have added 40,000 MW to the national grid but the estimated price tag of $27 billion was too high for a country with a public debt now touching 65 per cent of GDP. A pressing need to expand its energy generation capacity without burning a hole in the country's State budget forced Vietnam to turn to what it already had: coal. The country's annual power consumption is about 162 billion kWh, according to estimates by Electricity of Vietnam (EVN). It has some 20 coal-fired plants and plans to increase that number to 32 by 2020 and 51 by 2030. This means that, by 2020, the country's coal plants will be producing 49 per cent of its electricity output by burning 63 million tonnes of coal. This would then reach 129 million tonnes by the time it has all 51 plants in operation. Its revised National Power Development Plan for 2011-2020 (PDP XII) makes it clear that thermal power will be the mainstay of its energy mix. In the opinion of Eric Sidgwick, Country director of the Asian Development Bank (ADB), energy sources need to be diversified, and the government needs to reduce its reliance on coal and provide for renewable energy to be a substitute. "As far as we understand, the Vietnamese government is eager to have more renewable energy, but the cost, while coming down, is still relatively high," he told VET. "The issue for Vietnam is that because it is growing so quickly, it will need to use and access more energy." Last month, prime minister Nguyen Xuan Phuc issued a long-awaited decision approving the mechanism on the development of solar power projects, Decision No.11/2017, introducing a tariff of $0.0935 per kWh for the purchase of electricity from grid-connected solar power plants. This is higher than the tariff applied to onshore wind power projects of $0.078 per kWh. http://vneconomictimes.com/article/vietnam-today/energy-an-ongoing-challenge

MPI proposals to hit 2017 growth target 10/May/2017 Intellasia| VIR To reach the 6.7 per cent growth target by the end of the year, Vietnam's Gross Domestic Product (GDP) must grow by 7.1 per cent during the last nine months. Given the current situation of the economy, this goal seems to be a tall order. Three-quarter action plan At the monthly government meeting on May 4, the Ministry of Planning and Investment (MPI) presented a report on the growth scenarios for the Vietnamese economy in 2017. Specifically, according to MPI's estimates, to reach the 6.7 per cent growth target by year end, the GDP must grow by 7.1 per cent during the last nine months, which is high compared to the same periods between 2011 and 2016. 7.1 per cent is higher than the 6.4 per cent GDP growth during the last nine months of 2016, as well as the rates of 6.8, 6.2, 5.6, 5.4 and 6.3 per cent during the same periods of 2015 going back to 2011. Meanwhile, the economy is facing a few challenges. MPI told the government that even though in April 2017 the economy showed positive signs, it still faces several difficulties. For example, the growth rate of industrial production during the first four months was better than in the first quarter (5.1 against 4.1 per cent), but fell short of the 7.4 per cent of the same period last year. As of April 1, 2017, the total inventory of the manufacturing sector was also at a high level after rising by 12.7 per cent, higher than the 8.9 per cent increase at the same time last year. Meanwhile, the agricultural sector that has just recovered in the first quarter has already run into new problems as it entered the second quarter. The biggest problem is a sharp plunge in pork prices due to oversupply, pushing prices below cost and causing losses to farmers. A testament to the problem's severity are the rumours of a potential bail-out. In addition, according to MPI, exports continued to increase, with volume reaching $61.34 billion during the past four months (up 15.4 per cent from the same period of 2016, which in turn was up 6.5 per cent from the same period of 2015). However, because imports increased at an even faster rate, trade deficit remains large. The trade deficit in the first four months was 4.47 per cent of the total export turnover, higher than the 3.5 per cent target approved by the National Assembly. A large trade deficit will not only affect growth, but also threaten macro-economic stability and exchange rates. To tackle these issues, MPI is targeting a GDP growth of 6.26 per cent in the second quarter, 7.29 per cent in the third, and 7.49 per cent in the fourth. This way the nine-month growth would meet the 7.1 per cent goal. However, this growth scenario has several assumptions: (1) economy-wide investment would make up 35 per cent of the GDP, (2) Samsung would meet its growth target of 20 per cent for output and exports, and (3) all conditions remain favourable, including the world economy and weather. A tall order Meeting the 6.7 per cent growth target is a tall order. This plan can only be attained if the assumptions outlined in the MPI report hold true. The good news is that the export volume from all Samsung factories in Vietnam is expected to increase by 20 per cent compared to 2016, to reach $50 billion, the company said in a report presented during a visit by deputy prime minister Trinh Dinh Dung to Samsung's Thai Nguyen factory in northern Vietnam. "This will be a considerable contribution to the growth of the manufacturing sector, exports, and the overall GDP. Therefore, ministries and government agencies should closely follow Samsung's 2017 business plan to provide support," MPI said. Besides, to boost short-term economic growth, MPI also proposed several solutions to the government. For example, MPI suggested raising oil production to at least 1 million tonnes to directly add to GDP growth and avoid a downfall of resource mining industries. Ministries and government agencies should proactively follow the business progress of companies and work with them to remove obstacles and reduce the inventory to last year's levels. Meanwhile, all completed plants that have not started production should be examined and obstacles should be removed to allow factories to begin operation and contribute to GDP growth. Besides, related government agencies should review all registered private and foreign direct investment projects to see if they are facing any difficulties and then take steps to remove the difficulties so these projects can move ahead. MPI will also push for investment in major projects such as the North-South Highway and Long Thanh International Airport in order to boost investment and growth. MPI also said that at a time when the world economy is at an uncertain place, Vietnam, as an emerging and increasingly integrated economy, needs to foresee scenarios and make appropriate plans. For example, one scenario might see more globalisation, and increasing economic interdependence. On the other hand, globalisation might slow down due to protectionism and global trade might face more hurdles, prompting national economies to adjust. Even more, the world economy might slow down and require each economy to find ground-breaking solutions. http://www.vir.com.vn/mpi-proposals-to-hit-2017-growth-target.html

VN eyes fruit, vegetable exports to UAE 10/May/2017 Intellasia| VNS Vietnam is witnessing the potential for fruit and vegetable exports to the United Arab Emirates (UAE). The UAE has banned the import of certain fruits and vegetables from five countries in the Middle East, according to the Department of Africa, West Asia and South Asia Markets under the Ministry of Industry and Trade. According to the ban authorised by the UAE's Ministry of Climate Change and Environment, imports from Egypt, Oman, Jordan, Lebanon and Yemen will be stopped from May 15 over concerns about the high level of pesticides. The list of banned items includes all varieties of pepper from Egypt; peppers, cabbage, cauliflower, lettuce, squash, beans and aubergines from Jordan; apples from Lebanon; melons, carrots and watercress from Oman; and all types of fruit from Yemen. Due to unfavourable natural environment and weather conditions for agricultural production, the UAE has to depend on fruit and vegetable imports to meet its local consumption demand, the department said. The country imported $3.2 billion worth of fruits and vegetable in 2014. The figures were $2.6 billion in 2015 and over $2.5 billion in 2016, the department said, quoting statistics from the International Trade Centre. Meanwhile, a report from the Vietnam general Department of Customs revealed that Vietnamese fruit and vegetable exports to the UAE reached $14.2 million in 2014, $16.2 million in 2015 and $22.8 million in 2016, accounting for a modest part of the UAE's annual import turnover of this commodity group. The department called on Vietnamese fruit and vegetable exporters to improve their understanding of the Middle East country's rules on food hygiene and safety to effectively tap into the lucrative market. http://bizhub.vn/news/vn-eyes-fruit-vegetable-exports-to-uae_286021.html

April sale of cars down 10/May/2017 Intellasia| VNS Sale of cars in April was reportedly down 18 per cent to touch 21,942 units in comparison with the previous month. This was despite carmakers and businesses launching several promotional programmes and lowering prices to accelerate consumption. In particular, sales of special-purpose vehicles and passenger cars fell by six per cent and 36 per cent, respectively, to 1,675 units and 10,705 units. Meanwhile, the sale of commercial cars rose 15 per cent to 1,562 units. According to a report issued by the Vietnam Automobile Manufacturers' Association on Monday, the market saw a decline in both locally-assembled and imported cars, which decreased by 10 per cent and 35 per cent to 16,453 units and 5,489 units, respectively. Insiders said the fall in the April sale of cars was understandable because many consumers were delaying their plan to buy new cars until early 2018 when import tax on cars from Asean countries became zero per cent. Once the new regulation came into effect, they would not only enjoy lower prices but also have a selection of more imported cars to choose from. http://bizhub.vn/wheels/april-sale-of-cars-down_286022.html

Vietnam phone exports bounce back in April after Q1 slip 10/May/2017 Intellasia| The Saigon Times Exports of phones and phone components increased sharply in April after a strong decline in the first quarter of 2017, according to data of the general Statistical Office. Exports of phones and phone components in April brought an estimated $3.6 billion, up 17.4 percent over the previous month, taking the total in the first four months to $11.374 billion, up 0.3 percent year-on- year. This is considered a positive result as in the first three months, total exports of phones and phone components fell by 10.7 percent compared to the same period last year. As a result, phones and phone components continued to be the leading export earner in January-April, while other commodities such as textiles and garments trailed far behind with $7.474 billion, up 9.1 percent year-on-year, and computers and electronic components with $7.27 billion, up 44.3 percent year- on-year. Analysts forecast Vietnam's phones and phone components exports will continue to grow in the coming months. The main reason for the growth is that Samsung as the top exporter has introduced two new smartphone models, Galaxy S8 and S8 Plus, and received many orders from markets around the world. Since Vietnam is one of Samsung's major phone production bases, the country will greatly benefit from the high consumption of Galaxy S8 and S8 Plus smartphones. According to the general Statistical Office, phones manufactured in Vietnam are shipped worldwide, including the United Arab Emirates, Asean and the EU. http://english.thesaigontimes.vn/53825/-Vietnam-phone-exports-bounce-back-in-April-after-Q1-slip.html

PM calls for further investment from New Zealand 10/May/2017 Intellasia| VGP PM Nguyen Xuan Phuc called on New Zealand businesses to invest more in Vietnam at a reception for visiting Trade minister of New Zealand Todd McClay in Hanoi on May 8. The PM expressed delight at the finely growing multifaceted cooperative relations between Vietnam and New Zealand, voicing his hope that the minister's visit would contribute to accelerating bilateral trade ties in the time ahead. He suggested the two economies continue their close and effective coordination to promote common interests within the Asia-Pacific Economic Cooperation (Apec) and other multilateral economic links, thus contributing to the success of the Apec ministers Responsible for Trade Meeting slated for May 20-21 in Hanoi and other related ministerial meetings. The government leader stressed the need for both sides to recommend practical measures in order increase two-way trade revenue in the future. In regards to the Trans-Pacific Partnership (TPP), he urged the two sides to continue discussing towards trade liberalisation and mutual benefits. He spoke highly of the agreement's role in promoting trade liberalisation in the region and the world and bringing benefits to participating countries. He welcomed and appreciated New Zealand's active and regular speeches on respecting the international law, particularly the 1982 United Nations Convention on the Law of the Sea (UNCLOS), in addressing the East Sea-related issues, contributing to maintaining peace, stability and development in the region. On behalf of the Vietnamese government, PM Phuc thanked the New Zealand government for supporting Vietnam in training human resources and expected that New Zealand will continue its assistance in the field. For his part, minister Todd McClay voiced his pleasure at the growing cooperative relations between Vietnam and New Zealand, while conveying the New Zealand prime minister's greetings and wish for a successful Apec Year 2017 in Vietnam to Vietnamese PM Nguyen Xuan Phuc. Bilateral trade ties are growing finely and are supplementary to each other, he said, underlining that the two sides should strive towards doubling the bilateral trade value in the future. http://www.vir.com.vn/pm-calls-for-further-investment-from-new-zealand.html

Vietnam faces severe sand shortage 10/May/2017 Intellasia| VNA Poor planning and management of sand mining has led to a stunning but unsurprising warning: Vietnam is very likely to run out of sand in less than 15 years. A report by the Department of Construction Materials (DoCM) of the Ministry of Construction says the demand for sand in 2015 stood at 92 million cubic metres, and will surge by some 40 percent to about 130 million in 2020. The driving force behind the increase is the construction frenzy across Vietnam, a developing nation pouring more and more cash into infrastructure investment, especially in cities. But legally licensed sand mining can only meet some 60 to 65 percent of the need of big cities, according to the DoCM. The gap, consequently, was filled with the sand exploited illegally from several rivers under the eyes of local authorities for years. They refused to tighten their grip on the sand mining until a recent crackdown ordered by the central government following an expose by Tuoi tre (Youth) newspaper about illegal sand mined in Vietnam was shipped to Singapore. The crackdown on illegal sand mining, plus a suspension of activity in legal mines for a thorough review of the industry, has further strained sand supplies to the market, resulting in prices immediately shooting over the roof in the following months and showing no signs of stopping. According to Tuoi tre, sand prices in the Cuu Long (Mekong) Delta nearly doubled compared to two months ago. Yellow sand, for example, is sold in Can Tho city at 100,000 VND (4.4 USD) a cubic metre instead of just 65,000 VND back in March. A construction material seller in Vinh Long province, meanwhile, said that the price of the particular sand used for leveling ground increased by about 40 percent in just one day, from 80,000 VND on May 2 to 115,000 VND a cubic metre the following day. He told Tuoi tre that the sand supply was becoming "very scarce" and everything was sold out despite. HCM City the economic hub of the south saw a rocketing three-fold price hike. The yellow sand used for mixing mortar is sold at more or less 600,000 VND a cubic metre, compared to just 180,000 VND a month ago. The Ministry of Natural Resources and Environment has also voiced concerns over the sand resource, warning that there was a real risk of sand running out for construction and alternatives must be seriously considered. One option, according to the natural resources ministry, was to use artificial sand created by crushing rocks. The material was in fact used in some construction, like the Son La and Lai Chau hydropower plants. Hoa Binh Construction and Real Estate Corporation's Supplies Division Head Huynh Nhan Quang suggested looking for factory-produced mortar instead of following the traditional way of mixing sand and cement. "The supply of ready mixed mortar in Vietnam is limited, though, for the demand of the construction market," Quang said. Given the almost total reliance on sand until now, Ha Tien Cement Company, the biggest mortar producer in Vietnam, even decided last year to suspend dry mortar manufacturing, feeling there was insufficient demand, he said. "We hope that (mortar) manufacturers soon reevaluate the market to develop sand alternative products in order to meet the upcoming wave of market demand," he said. http://en.vietnamplus.vn/vietnam-faces-severe-sand-shortage/111435.vnp

Can Tho works to remove institutional barriers for growth 10/May/2017 Intellasia| VNA A symposium was held in the Mekong Delta city of Can Tho on May 9 seeking to remove institutional barriers to spur local socio-economic development during the national industrialisation and modernisation. Vietnam has implemented the renewal process for 30 years, but, its economic development has fallen short of expectation due to economic institutional barriers. Experts pointed to the need to correctly identify economic institutional barriers along with acquiring international experience to realise the nation's goal of industrialisation and modernisation. From the local angle, representatives from the Institute for Socio-economic Development Studies in Can Tho said economic institutional barriers have created "bottlenecks" in the city's economic development, such as the declining investment from 60.26 percent to 50.7 percent in 2006-2010 and 2011-2015. The Incremental Capital-Output Ratio (ICOR) continuously increased from 2.3 in 2002 to 4.5 in 2012, indicating the ineffective use of capital and imbalanced transfer of labour and economic restructuring. The total-factor productivity (TFP) tends to slow down on-year, which stood at 22.94 percent in 2006- 2010 and 24.5 percent in 2011-2015. Other bottlenecks include difficulties in attracting foreign direct investment (FDI), low-quality business environment, weak logistics systems, and small-scale service businesses. To address them, the institute suggested implementing more effectively the Politburo's Resolution 45 on building an industrial city with the Mekong Delta playing the central role and the southern key economic zone playing the leading role. It is also necessary to develop infrastructure, airports, seaports, transport systems, trade services, and start-ups, while joining the global supply chain to expand exports and launching direct air routes to other Asian countries to promote tourism and lure investment. Apart from taking advantages of science-technology centres, Can Tho should focus on investment in high-quality human resources to provide skilled workers for the Mekong Delta and labour exports. Nguyen Minh Toai, director of the Can Tho Department of Industry and Trade voiced concerns about asynchronous legal regulations, causing difficulties for socio-economic activities. http://en.vietnamplus.vn/can-tho-works-to-remove-institutional-barriers-for-growth/111440.vnp

Thua Thien Hue aims to attract $400m in FDI 10/May/2017 Intellasia| VNS The central province of Thua Thien Hue aims to attract around $300-400 million in foreign direct investment (FDI) this year, according to the province's recent investment promotion plan. The central province is calling for investment from both local and foreign groups in all sectors, but with priority given to sectors of the province's strength, such as tourism service, information technology, healthcare, aquaculture, light industries, urban area development and economic zones. Investment promotion from traditional investors like Thailand, Korea, Singapore, Hong Kong, Japan and the US will be stepped up, as well as from countries which would benefit from bilateral and multilateral trade agreements of which Vietnam is a member. The province will work with FLC Group, Vingroup, Bitexco, and Viglacera, as well as foreign investment promotion organisations like the Japan International Cooperation Agency, Korea International Cooperation Agency, and Japan External Trade Organisation. Chair of the provincial People's Committee, Nguyen Van Cao, said that the province wanted to promote investment by connecting with investors' partners such as banks, infrastructure businesses and consultant firms. The locality also planned to forge connectivity via direct dialogues between authorities, investors and investment management and trade counselling agencies, he added. Currently, investors are studying several projects in the province, including an infrastructure project worth VND600 billion ($26.3 million) at a Thien Ha Kameda JSC Industrial Park. The Chan May JSC has registered to pour VND850 billion in capital in building a wharf at the Chan May Port. Phu Quang Spinning JSC poured VND400 billion into a spinning line project. The central province has so far attracted 140 projects with total registered capital of VND64.3 trillion in the first quarter of this year, including 35 foreign-invested projects with total investment of $1.74 billion. http://www.vir.com.vn/thua-thien-hue-aims-to-attract-400m-in-fdi.html

Legal inconsistency hinders social insurance debt lawsuit efforts 10/May/2017 Intellasia| VNS Transferring the right of suing companies for overdue social insurance payment to workplace-based trade unions has not been as effective as lawmakers had expected. During an online round table discussion on the government portal on Monday, Vietnam Social Insurance (VSI) vice general-director Dao Viet Anh said the amount of social insurance debt companies failed to pay currently reached up to some VND14 trillion (US$622.2 million) in the first quarter of 2017, doubling from last year's total of VND7.5 trillion. Worse still, there were only some 235,000 enterprises registered with social insurance, while the database of the tax authorities indicated that nearly 500,000 businesses were operating in Vietnam. "It means that nearly 50 per cent of the enterprises are yet to pay social insurance, or in other words are evading social insurance payment," Anh said. Suing these companies was an option that had proven to be effective, at least in the past. Before transferring the task of suing to trade unions, the VSI was able to file some 8,000 cases in court, half of which were settled, helping it collect VND9.8 trillion in overdue insurance debt. The National Assembly, however, thought it was inappropriate for the VSI to do both inspection and court work, and decided to let trade unions manage the legal procedings by voting through the Law on Social Insurance which came into effect on January 1 last year. The results were, however, minimal. According to Vietnam general Confederation of Labour vice president Mai Duc Chinh, out of 1,177 cases involving overdue social insurance payment that the VSI delivered to the unions, only 77 were filed in court. While majority of these companies agreed to pay the debt upon hearing of the lawsuits, some 17 cases were disappointingly rejected by the court, Chinh said. "One of the reasons was inconsistency in the law," he said. "The Supreme Court argued that social insurance evasion was a banned activity and should be first resolved through administrative penalties by the VSI. If the companies continued to avoid paying the insurance, the case would then be brought to a criminal trial." The Supreme Court's decision was valid, since despite a regulation allowing lawsuits against companies under the social insurance law, the Civil Procedure Code failed to mention the matter, National Assembly's Committee for Social Affairs vice chair Bui Sỹ Lợi said. The draft-amended Penal Code 2015 had regulations on social insurance evasion, however it was still waiting for the National Assembly to pass it through, he said. Lợi believed trade unions themselves also faced a lot of problems while filing lawsuits against the companies. The chairperson and members of a workplace union were all workers of a company and understandably were quite reluctant to go against their employer, he said. Another problem was the requirement to have authorisation from all members of the union to officially initiate a lawsuit, which could require hundreds of visits to the local People's Committee or the notary office. "I think there is a way around this, which is to dismiss the authorisation demand while letting local unions or labour federations file the lawsuit on behalf of workplace unions. They also have more legal resources and consultancy to start and follow a lawsuit compared with workplace unions anyway," Lợi said. http://vietnamnews.vn/society/376084/legal-inconsistency-hinders-social-insurance-debt-lawsuit- efforts.html#MeTQaYA7lTUpxrkJ.97

IMF warns Asia to act early on rapidly-aging population 10/May/2017 Intellasia| VN Express Asia has enjoyed substantial demographic dividends, but the growing number of elderly is set to create a 'tax' on growth. The International Monetary Fund called on Asian economies to learn from Japan's experience and act early to cope with rapidly ageing populations, warning that parts of the region risk "getting old before becoming rich." Asia has enjoyed substantial demographic dividends in the past decades, but the growing number of elderly is set to create a demographic "tax" on growth, the IMF said in its economic outlook report for the Asia-Pacific region on Tuesday. "Adapting to aging could be especially challenging for Asia, as populations living at relatively low per capita income levels in many parts of the region are rapidly becoming old," the report said. "Some countries in Asia are getting old before becoming rich." The population growth rate is projected to fall to zero for Asia by 2050 and the share of working-age people - now at its peak - will decline over the coming decades, the report said. The share of the population aged 65 and older will increase rapidly and reach close to two-and-a-half times the current level by 2050, it said. That means demographics could subtract 0.1 percentage point from annual global growth over the next three decades, it said. In Vietnam, people aged 60 or older currently represent about 10.5 percent of the country's population of over 90 million, according to official data. Vietnam's golden population is estimated to last about 30 years from 2010 to 2040. But due to a lower birthrate and longer life expectancy, Vietnam is aging rapidly and the working-age population is shrinking. Labour officials have warned that Vietnam's working-age population will shrink so quickly that by 2030 one in six Vietnamese will be over 60 years old, and one in four of the population will be 60 or older by 2060. The challenges are particularly huge for Japan, which faces both an ageing and shrinking population. Its labour force shrank by more than 7 percent in the past two decades, the IMF said. The high percentage of its citizens living on pensions may be behind Japan's excess savings and low investment, which are weighing on growth and blamed in part for keeping inflation below the Bank of Japan's 2 percent target, the report said. "Japan's experience highlights how demographic headwinds can adversely impact growth, inflation dynamics and the effectiveness of monetary policy," it said. The IMF called on Asian nations to learn from Japan's experience and deal with demographic headwinds early, such as by introducing credible fiscal consolidation plans, boosting female and elderly labour force participation, and revamping social safety nets. http://e.vnexpress.net/news/business/imf-warns-asia-to-act-early-on-rapidly-aging-population- 3581764.html

What does 'airport overloading' mean for the economy? 10/May/2017 Intellasia| Vietnamnet Everyone complains that airports are getting overloaded, but economists and businesspeople say this is a good sign that the national economy is robust. According to Savills, the number of foreign travellers to Vietnam increased by three times in the last decade and witnessed 26 percent growth rate in 2016 compared with the year before. Meanwhile, airport infrastructure development cannot catch up with the rapid development of the tourism industry. In 2016, about 8.2 million foreign tourists traveled by air, accounting for 80 percent of total travellers. Many airports in large cities have been overloaded for a long time. The airport in HCM City, for example, has to operate at 130 percent of capacity and Nha Trang Airport at 320 percent. The Da Nang Airport now runs at 113 percent of capacity though it was upgraded in 2011 to increase the capacity from 4.5 million passengers to 6 million. Tan Son Nhat Airport plans to increase the capacity from 25 million to 28 million passengers a year. Da Nang Airport, which has the capacity of 9 million passengers, now will be expanded to serve 4-6 million passengers more. Meanwhile, Nha Trang City has been slow with the project on expanding Cam Ranh Airport. However, the expansion project has become out of date: it was planned to receive 2.5 million passengers, while the number of passengers in 2016 reached 4.8 million. Under a government master development plan, $5.6 billion would be spent by 2020 to develop airport infrastructure items. Pham Ngoc Minh, CEO of Vietnam Airlines, the nation's flag air carrier, has complained about the overloading of airports, especially Noi Bai in Hanoi and Tan Son Nhat in HCM City, which seriously affects the operation of air carriers. At Noi Bai, the T1 Terminal, which has capacity of 6 million passengers a year, had to serve 9.5 million passengers in 2010. Airlines complain they cannot provide more flights because of the overloaded infrastructure. At Vinh Airport, there are only four stalls for passengers to check, while seven flights take off or land every day. Since there is no ILS (instrument landing system), airports have to fly to Hanoi and land in Noi Bai Airport in bad weather. While people complain about the poor infrastructure, Nguyen Thi Phuong Thao, CEO of Vietjet Air, can see the 'positive sign' in airport overloading. "Many people express their concern that the overloading will affect tourism and aviation. While they seem to have excessive worry, I think this is a good sign of economic development," Thao said, adding that a deserted country is not the sign of development. Vietnam now has 22 commercial airports, while Singapore only has two. http://english.vietnamnet.vn/fms/business/177800/what-does--airport-overloading--mean-for-the- economy-.html

Vietnam-made cranes shipped to India 10/May/2017 Intellasia| VNS Doosan Heavy Industries Vietnam (Doosan Vina) has shipped its first three ship-to-shore cargo container cranes to the Bharat Mumbai Container Terminals Private Limited (BMCTPL) of India. The company said on Monday that these cranes are a part of a total of twelve ordered by BMCTPL that will be produced and shipped by Doosan Vina over the coming months from Dung Quat Economic Zone. The three 1,400 tonnes, 84m high, 144m long, 26m wide cranes will be loaded and shipped from Doosan Vina's purpose built port in the central province of Quang Ngai before being used at the Jawaharlal Nehru Port in Mumbai, India. CEO and general director of Doosan Vina, Yeon In Jung, said it's a historic achievement for Vietnam and Doosan Vina because these are the largest among the 68 cranes that have been produced in Vietnam and are also some of the largest cranes made anywhere in the world. Since commencing operations here in 2009, Doosan Vina has been a reliable supplier of power plant boilers for projects such as Mong Duong 2, Vinh Tan 4, Song Hau 1, Vinh Tan 4 Extension and has played an important role in localising the mechanical industry in Vietnam. http://bizhub.vn/news/viet-nam-made-cranes-shipped-to-india_286018.html

Can Tho: Thoresen plans investment in logistics, ports 10/May/2017 Intellasia| VNS Thoresen Thai Agencies Public Limited is planning to invest in logistics services and ports in Can Tho City, according to the People's Committee of the city. On May 8, vice chair of the People's Committee of Can Tho City Truong Quang Hoai Nam met Sigmund Stromme, executive vice president for shipping and logistics at Thoresen Thai Agencies Public Limited from Thailand. The Thailand-based company is looking for business opportunities in the local seaport and logistics industry. Speaking at the meeting, Nam said Hoang Dieu Port in Binh Thuy District and Cai Cui Port in Cai Rang District are both located in Can Tho. "Logistics is a key industry of the city," he said, adding that the government had approved Can Tho City's proposal to build a logistics hub for the Mekong Delta, which would cover 242ha in Cai Cui Port, Cai Rang District. The city has proposed to the government the merger of three ports Tan Cang Cai Cui, Vinaline Cai Cui and Cai Cui to make it the largest port in the region with wharf length of some 1,200m. Site clearance for the logistics hub is underway and firms have visited the site to learn about investment opportunities. The city has also suggested merging ports and supporting expansion of business for companies providing logistics services at ports. Nam said Thoresen could buy stake in Vietnam National Shipping Lines (Vinalines) to join the port- merging project, build a new port at another site along the Hau River or invest in the existing warehouse and transport system at Cai Cui Port. For his part, the executive vice president of Thoresen gave Nam an overview of the Thai company, saying the company had been operating in fertiliser production and shipping and logistics in southern Ba Ria-Vung Tau Province. Stromme expressed hope the company could partner with Can Tho City to improve port management and expand local shipping and logistics services with emphasis on container transit service to Phnom Penh (Cambodia) and Singapore. Its investment in logistics services in this city is expected to promote cooperation in logistics activities with southern Ba Ria-Vung Tau Province and support the transport of cargo in the Mekong Delta region. Can Tho has a large potential to develop logistics because of its favourable location in terms of water and land transport, besides having many ports and warehouses, he said. After the meeting concluded, the two sides took a field trip to Cai Cui Port. http://bizhub.vn/news/can-tho-thoresen-plans-investment-in-logistics-ports_286016.html

Da Nang approves first-ever dairy project 10/May/2017 Intellasia| VNS The central city has approved its first-ever dairy farm on 124ha in Hoa Phong commune in Hoa Vang district. Vo Ngoc Sinh, director of Da Nang Diary plant, under the Vietnam dairy Products Joint-Stock Company (Vinamilk), told Vietnam News that the project will be built with an investment of VND600 billion (US$26.5 million). Sinh said the project plans to develop a herd of 4,000 dairy cows in 2017-20 and supply 40 tonnes of fresh cow's milk for the plant each day. He said the project would help boost socio-economic development and income for the poor Da Nang suburbs. It's the third Vinamilk dairy farm in the central region, after Lam Dong in the Central Highlands and Binh Dinh Province. Vinamilk also built a milk-processing plant in Hoa Khanh Industrial Zone. The project will include dairy-farm tours for visitors at the site, a maize and grass fields. Vinamilk has developed 10 dairy farms with a herd of 15,000 dairy cows in Tuyen Quang, Thanh Hoa, Nghe An, Binh Dinh and Lam Dong provinces. http://bizhub.vn/news/da-nang-approves-first-ever-dairy-project_286019.html

Tripartite agreement fuels PJICO's hopes 10/May/2017 Intellasia| VIR The cooperation between PJICO, one of the biggest non-life insurers of Vietnam, its strategic shareholder Vietnam National Petroleum Group (Petrolimex), and Samsung Fire & Marine Insurance Co., Ltd (SFMI) is hoped to strengthen PJICO's position and promote its development in the future. Strength through unity PJICO is expected to issue 17.74 million shares, an equivalent of 20 per cent of its chartered capital, to SFMI via a private placement. This can be considered a perfect cooperation between a domestic insurance firm with a strong foundation and extensive understanding of the domestic market and a foreign insurer with advanced capacity and corporate governance experience. Following the stock purchase agreement between PJICO and SFMI, Petrolimex also signed a cooperation agreement tying together the three parties. PJICO and SFMI teaming up, with the comprehensive support from Petrolimex, is expected to help PJICO prosper in the upcoming period. SFMI is a leading insurance company with a global network and over 60 years of experience in the non- life insurance industry. According to global insurance credit ratings and insurance services company A.M. Best, in 2016, SFMI had a financial strength rating of A++ and long-term issuer credit rating of AA+. Meanwhile, PJICO is one of the biggest non-life insurers in Vietnam with over 20 years of experience. Currently, PJICO has total assets of nearly VND4.3 trillion ($189.2 million) and owners' equity of over VND900 billion ($39.6 million). In 2016, PJICO earned a premium revenue of VND2.48 trillion ($109.3 million), an increase of 11.4 per cent compared to 2015. Also this year, PJICO's gross profit from its insurance businesses was nearly VND336 billion ($14.8 million), before-tax profit was over 125 billion ($5.5 million), and after-tax profit was nearly VND102 billion ($4.49 million). The third partner in this cooperation, Petrolimex, holds 51.18 per cent of PJICO's shares. After PJICO finishes transferring a 20 per cent stake to SFMI, Petrolimex will hold 40.95 per cent, remaining the biggest shareholder. Thus, as a core firm in the Vietnamese economy, Petrolimex will continue to be a foundation for PJICO in the future. PJICO looking at bright prospects Dao Nam Hai, general director of PJICO, said that the strategic cooperation between Petrolimex, PJICO, and SFMI promises to become a huge momentum which will propel PJICO's growth in the upcoming years. In 2017, PJICO set the target revenue of VND2.5 trillion ($110 million), 6.7 per cent higher than in 2016. It is expected that the necessary procedures for raising capital will be completed by September 2017, and PJICO targets a profit of VND120 billion ($5.28 million) in 2017. It is hoped that 2018 may be an outstanding year for PJICO as its total revenue is projected to hit VND2.75 trillion ($121 million) and after-tax profit may be nearly VND148 billion ($6.5 million). Notably, after raising capital, its margin of solvency will sharply increase in the upcoming period. The margin of solvency is an important figure and its sharp growth means PJICO's financial capacity is getting stronger. In 2016, PJICO's margin of solvency was VND673 billion ($29.6 million), which was higher than the minimum stipulated by law (VND502 billion ($22.1 million), but only by 34 per cent. However, after the private placement for SFMI, PJICO's margin of solvency will rise to VND1.237 trillion ($54.4 million), which is as high as 245 per cent of the minimum requirement. http://www.vir.com.vn/tripartite-agreement-fuels-pjicos-hopes.html

Vietsovpetro inaugurates Tho Trang 03 oil rig 10/May/2017 Intellasia| VNA Vietsovpetro, a joint Vietnamese-Russian oil and gas enterprise on May 7 began operating the Tho Trang 03 oil rig (White Rabbit) at well 37P offshore of the southern province of Ba Ria-Vung Tau, 13 days ahead of schedule. The oil rig, designed to accommodate 12 wells, is expected to yield 3,000 tonnes of oil and 1.5 million cu.m of gas per day. Located in a 47m-deep water area in lot 09-1, the construction and installation of the rig began in June 2016. To ensure exploitation of 5 million tonnes of oil in 2017 and maintain stable production in the future, Vietsovpetro has worked hard to increase reserves. Vietsovpetro is striving to pump more than 24.4 million tonnes of crude oil by 2020. Revenue from oil is forecast to stand at 11.6 billion USD by 2020. However, Vietsovpetro is asking for the Vietnam National Oil and Gas Group's support to assure sufficient funds for production, due to financial imbalances spurred by a steep fall in oil prices. http://en.vietnamplus.vn/vietsovpetro-inaugurates-tho-trang-03-oil-rig/111389.vnp

Jetstar's new Melbourne-Vietnam route takes flight 10/May/2017 Intellasia| Travel Weekly Jetstar's new flights to Vietnam will take off for the first time today, giving Aussies the chance to fly on the only low-cost direct flights to the suddenly booming tourist hotspot. The inaugural flight, JQ63, will depart at 3:15pm this afternoon, from Melbourne to HCM City, piloted by Jetstar's Chief Pilot Captain Georgina Sutton. Jetstar Chief Executive Officer Australia & New Zealand, Dean Salter, said the new flights are a major milestone for the airline. "Vietnam is one of the fastest growing holiday destinations in South East Asia, and until now has been the largest country in the region without a low-cost direct link to Australia," Salter said. "There is enormous potential for Vietnam to become one of the most popular destinations for Australian travellers thanks to its wonderful year-round climate and great beaches, food and culture. "We are already the biggest Australian carrier operating into Bali, Phuket and Hawaii Vietnam is the next step in expanding our international network for budget conscious travellers." From HCM City, travellers can fly to 15 other destinations within Vietnam on Jetstar Pacific, one of Vietnam's low-cost carriers. Salter added the new flights will also boost inbound tourism, building on the 21 per cent increase in Vietnamese visitors to Australia in the last 12 months. "Melbourne and Sydney both have large Vietnamese communities, and we expect to see visitors to the two cities increase with the introduction of these low fares," he said. "We're excited to become the only low-cost airline to fly between Australia and Vietnam, offering up to 180,000 passengers the opportunity to travel at a great price." The new flights will operate three times per week from Melbourne and, from tomorrow, four times a week from Sydney. The new routes will be operated by Jetstar's Boeing 787 fleet, with a capacity of 335 passengers per flight, including 21 business seats. And because it's kind of a big deal for the airline, Jetstar is offering sale fares from Sydney and Melbourne to HCM City from $199 and $249 respectively, for select travel dates. Fares are one-way, with checked baggage not included. http://www.travelweekly.com.au/article/jetstars-new-melbourne-vietnam-route-takes-flight/

Samsung: half of S8, S8 Plus smartphones made in Vietnam 10/May/2017 Intellasia| Vietnamnet A representative from Samsung Vietnam said its factories in Vietnam provide 50 percent of all the Galaxy S8/S8 Plus smartphones sold internationally. Samsung is now gathering all of its resources to manufacture Galaxy S8. Prestigious technology websites said that it will help Samsung remain the world's leading smartphone manufacturing group after the Galaxy Note 7 debacle in 2016. Samsung Vietnam said that the Galaxy Note 7 scandal last year only had an impact on the giant for a short time. It also said that the scandal won't have considerable influences on production and business, as well as Samsung Vietnam's export turnover in 2017. The production and export of other models such as S7 Edge Galaxy A and tablets to other markets in 2016 still exists. The export of smartphones in 2016 increased by 10.3 percent compared with 2015. Forty percent of total mobile devices of Samsung are made in Vietnam and are expected that Samsung Vietnam would export $50 billion worth of products this year. Learning the lesson from the catastrophic fire of Galaxy Note 7, Samsung has tightened the production process of Galaxy S8 and S8 Plus. When the device is manufactured in the production line, it will be put under a test run for 72 hours. After that, the product will be re-checked before being packed and launched into the market. In addition, Samsung will randomly select a number of finished products to test the water resistance, durability and the operation stability capability. Some smartphone production phases are being undertaken by robots. The automation level in camera assembling at Samsung Vietnam has reached 30 percent, while the levels are 50 percent for main circuit and 100 percent for the metal frame of the machine. However, there are still the production phases in which robots cannot replace workers. At Samsung Thai Nguyen, there are 62,000 workers. The factory, together with Samsung Bac Ninh, creates many smartphones and tablets, from mid to high end, exported to 78 countries and territories all over the world. The number of Vietnamese enterprises joining Samsung's supply chain has been increasing steadily year after year. To date, 200 Vietnamese enterprises have become the suppliers of Samsung, including 23 first-class suppliers. The figure is expected to increase to 29 within this year. The support to Vietnamese enterprises to help them upgrade the production and product quality has been given by Samsung since 2015. Samsung's factories in Vietnam have been scaled up unceasingly. Therefore, Samsung has been continuously recruiting workers to satisfy the production expansion. SEV Bac Ninh and SEVT in Thai Nguyen now employ 100,000 workers. Samsung is also using 1,500 software engineers in Vietnam for software development. http://english.vov.vn/economy/samsung-half-of-s8-s8-plus-smartphones-made-in-vietnam-349132.vov

EVN frets over electricity exhaustion 10/May/2017 Intellasia| The Saigon Times Although the reserve capacity of the national power system is around 20 percent, Vietnam will still face electricity shortages if there is no strong investment in the sector in the coming years, said Vietnam Electricity Group (EVN). Nguyen Tai Anh, deputy general director of EVN, said the total capacity of the national power system currently stands at 45,000 MW with a reserve capacity of about 20 percent. However, with the annual electricity demand growing 11-12 percent, or 5,000 MW per year, electricity reserves will be exhausted if there is no timely investment. "To ensure sufficient power supply, it is estimated that by 2020, Vietnam will need $7.9 billion in investment capital for power generation projects. EVN can secure 60-65 percent of this funding requirement while the rest must be mobilised from other sources," Anh said. In 2016, the country consumed about 177 billion kWh of electricity, or about 1,700-1,800 kWh per capita. This is lower than the world average of 3,500 kWh, meaning the country must speed up investment in the power sector, especially in the next 5 to 10 years. According to an energy expert, there is a high possibility that Vietnam will run out of power sources as the country's hydropower plants are almost fully tapped. Renewable energy sources such as wind and solar power are underinvested while most coal-fired power plants rely heavily on coal imports and pose environmental pollution risks. The country's annual electricity demand is forecast to reach 506 billion kWh by 2030 and primary energy sources can only meet half of this. Therefore, it is likely that Vietnam will rely heavily on imported energy. http://english.thesaigontimes.vn/53826/-EVN-frets-over-electricity-exhaustion.html

Apec meeting discusses women's role in economy 10/May/2017 Intellasia| VNA The First Policy Partnership on Women and the Economy (PPWE) Meeting opened in Hanoi on May 9 within the framework of the second Apec Senior Officials Meeting (SOM 2) and related meetings. In her opening remark, Hoang Thi Thu Huyen, deputy director of the Gender Equality Department under the Ministry of Labour, Invalids and Social Affairs (MoLISA) who is also PPWE Chair 2017, said 21 Apec economies are currently employing around 600 million women as part of their workforce, with more than 60 percent working in the formal sector, contributing up to 89 billion USD annually to Apec. Apec leaders have continously recognised women's immense contributions to socio-economic development and have maintained support to further mainstream gender equality and women's economic empowerment across Apec work streams, she said. However, Huyen noted that women's potential has not been fully actualised to make more contributions to the region. Therefore, Apec economies are working to remove barriers and obstacles encourtered by women, she said, adding that this is the goal being realised through the efforts and leadership of the PPWE. The meeting aims to ensure the realisation of PPWE outcomes from 2016 and make recommendations on necessary interventions to remove barriers faced by women in the near future, Huyen stressed. Addressing the function, MoLISA deputy minister Doan Mau Diep applauded the role played by the PPWE over the past ten years in reflecting the importance of women in the economy with greater role, position and more concrete activities. The PPWE has contributed to a closer relationship between the public sector and private sector, as well as to better mainstreaming of policies, programmes on women's economic empowerment in Apec activities and fora, he said. However, more need to be done in order to make Apec cooperation more practical and beneficial to all women to ensure that no woman is left behind the social and economic growth, and women can contribute to the economic development of Apec economies, he stressed. Diep expressed his belief that the two-day meeting will be very successful for achievement of its expected outcomes including the discussion of next steps to continue implementing effectively the PPWE Strategic Plan 2015-2018, development of the basic outline of the Guideline on Gender Mainstreaming in Apec as well as the development of the draft ministerial Statement of the Women and the Economy Forum 2017 which will be held in the central city of Hue in September this year. http://en.vietnamplus.vn/apec-meeting-discusses-womens-role-in-economy/111401.vnp

Still tough for foreigners to secure house ownership certificates 10/May/2017 Intellasia| VN Economic Times Granting of certificates of ownership of houses to foreigners who signed purchase contracts after December 10, 2015, suspended in HCM City. It remains no easy task for foreigners to obtain a housing ownership certificate in Vietnam despite the government permitting them to purchase homes. Tuoi Tre (Youth) online recently reported that the HCM City Land Registration Office has suspended the granting of certificates of land use rights and ownership of houses and other land-attached assets to foreigners who signed housing purchase contracts after December 10, 2015 (the effective date of government Decree No.99/2015/ND-CP guiding the Law on Housing). The suspension was due to the unavailability of lists of residential housing projects allowed to be owned by foreigners, which are supposed to be issued by city or provincial-level Departments of Construction, leaving no legal basis for the office to transfer ownership rights to foreigners. Under Decree No.99, foreigners are not allowed to own houses in national defense and security areas in localities specified by the Ministry of Public Security and the Ministry of National Defense. Neither, however, have announced such areas. As a result, city and provincial-level Departments of Construction have no grounds to publicise lists of local housing projects in areas eligible for ownership by foreigners. http://vneconomictimes.com/article/property/still-tough-for-foreigners-to-secure-house-ownership- certificates

Vietnam expects to lure four million Chinese tourists in 2017 10/May/2017 Intellasia| The Saigon Times Vietnam's tourism industry is taking a number of measures to increase service quality to welcome a greater number of Chinese visitors to the country, which is estimated to rise 50 percent to four million this year. The Vietnam National Administration of Tourism is working with some localities that are popular destinations among Chinese tourists such as Quang Ninh, Danang and Khanh Hoa to cope with travel firms providing poor-quality tours to protect the interests of customers. The agency also organises many tourism promotion programmes in China. Particularly, from May 11 to 20, the agency will cooperate with several travel firms to introduce Vietnam's tourism in four Chinese cities, including Nanning, Fuzhou, Nanjing and Hefei. The number of Chinese tourists to Vietnam has increased rapidly and is forecast to set a new record by the end of this year, with four million visitors, compared to 2.7 million in 2016. The most popular Vietnamese destinations chosen by Chinese tourists include Hanoi, Halong, and Ninh Binh in the north; Danang, Hoi An, Hue and Nha Trang in the central region; and HCM City and Phu Quoc in the south. Tour operators have also prepared themselves for the upsurge in Chinese arrivals. "Last year, the number of Chinese visitors increased by 50 percent and we expect strong growth this year. Therefore, we have to prepare hotel rooms in advance to ensure better service for the tourist season at the end of 2017," said Tu Quy Thanh, director of Lien Bang Travel Trading Company Limited (Lien Bang Travelink). Similarly, Chinese tourists account for 60-70 percent of total international arrivals catered to by local tour operator Vietravel, and the company usually receives large orders for groups of tourists all year round. http://english.thesaigontimes.vn/53819/Vietnam-expects-to-lure-four million-Chinese-tourists-in- 2017.html

Customs explains disposal of cancer drug 10/May/2017 Intellasia| The Saigon Times The customs has explained the discard of 20,000 pills for cancer treatment over expiration is not due to its lengthy import procedures, says a press release which the Ministry of Finance issued on May 8. In fact, for humanitarian reasons, the customs office in charge has quickly cleared the shipment one day after a customs declaration was filed. It has complied with the regulations and the opinions of the relevant management agency, namely the Drug Administration of Vietnam, on the remaining shelf life of the drug when it arrived at Vietnam port. On the import drug management policy, the customs says drugs imported into Vietnam must have circulation registration certificates and import permits that are still valid. In addition, they must meet the rules on drug shelf life given in Circular 45/2011/TT-BYT dated December 21, 2011 and Clause 3, Article 2 of Decision 42/QD-TTg dated July 15, 2013 on donated drugs, humanitarian aid, rare drugs, and drugs for treatment needs of hospitals. The drugs whose duration is 24 months or more should have a remaining shelf life of at least 12 months from the date of arrival in Vietnam. In case the drugs are fit for use in less than 24 months, their remaining duration from the date of arrival at a local port must be at least equal to one third of their shelf life. The media has recently reported on the destruction of 20,000 cancer pills. This drug batch is manufactured by Novartis Pharma AG with a 24-month duration (production date: June 2013, expiry date: May 2015). In the press release, the customs states that all the prolonged procedures are due to other agencies, not the customs red tape as assumed by the public. As per the explanation, on July 15, 2013, the HCM City Hospital of Hematology and Blood Transfusion received a letter on drug donation. On November 28, 2013, the hospital sent Official Letter 1639/TMHH- KHTH to the Drug Administration of Vietnam seeking permission to receive the donation from Novartis Pharma AG. Two weeks later, the drug administration wrote to the hospital stating its disapproval due to a lack of necessary papers. Then, on March 10, 2014, or three months later, the HCM City Department of Health wrote to the municipal government asking for permission to receive the aid. It was not until June 24, 2014 that the HCM City government gave the nod for the health department to receive the drug. On July 14, 2014, the Drug Administration of Vietnam issued another letter allowing the HCM City Hospital of Hematology and Blood Transfusion to receive the shipment. It was clearly stated that the remaining shelf life of this shipment shall not be less than 12 months from the date of arrival in Vietnam. According to Bills of Lading No. 740135202-2 and 7401351230, the batch was loaded onto an aircraft for transportation to Vietnam on July 23, 2014. Thus, at the time of its arrival at a Vietnamese port, the remaining duration was under 12 months since the production date is June 2013). On August 1, 2014, the blood transfusion hospital wrote to the HCM City Department of Customs explaining why the remaining shelf life of this shipment was under 12 months and asking for clearance due to humanitarian reasons. Five days later, express delivery company DHL-VNPT on behalf of the hospital made two customs declarations 051586/PMD and 051587/PMD. The courier express division of the HCM City Department of Customs carried out the procedures immediately for the above two declarations, both of which were cleared on August 7, 2014. Given the timelines stated in the letter of explanation, it took more than one year since the donation was announced until the drug shipment reached Vietnam, while it took only a few days to accomplish customs clearance for the batch. http://english.thesaigontimes.vn/53828/Customs-explains-disposal-of-cancer-drug.html

Rescue helicopter launched in HCM City 10/May/2017 Intellasia| VN Economic Times Helicopter route opened in city to allow for emergency rescue or treatment. A helicopter route has been opened in HCM City for emergencies such as rescues, ambulance services, or disasters. Initially, a helicopter will be available at the top of a 36-story building on Nguyen Hue, under the management of the Vietnam Helicopter Corporation. One of the ten tallest in Vietnam, the building is the city's only private premises granted permission by the Ministry of Defense to operate air ambulances. Conventional ambulances are often unable to respond quickly to accidents in the city, where congestion is rife. Vietnam has made efforts address congestion by imposing fines of VND500,000-1.2 million ($22-53) on drivers who refuse to make way for emergency vehicles. But the law is rarely enforced and many argue that during traffic jams there is simply no space to give way to ambulances. Various solutions have been suggested, such as using ambulance motorbikes or having traffic police accompany ambulances to clear a route. http://vneconomictimes.com/article/society/rescue-helicopter-launched-in-hcmc

Pacific Partnership 2017 arrives in Da Nang 10/May/2017 Intellasia| VN Economic Times Partnership the largest annual multilateral humanitarian assistance and disaster relief preparedness mission conducted in the Indo-Asia-Pacific region. The Pacific Partnership 2017 (PP17), the largest annual multilateral humanitarian assistance and disaster relief preparedness mission conducted in the Indo-Asia-Pacific region and aimed at enhancing partnerships with participating nations throughout the region, began a mission in Da Nang on May 8 with the arrival of the US expeditionary fast transport ship US.N.S. Fall River (T-EPF-4). The Da Nang mission stop marks the fourth consecutive year and the eighth time in eleven years that Pacific Partnership missions have occurred in Vietnam's cities and provinces. Personnel from the US, the UK, Australia, and Japan are participating in this year's events in Da Nang. Da Nang collaborated with central government agencies and Pacific Partnership planners to organise the week and a half event with the aim of promoting the comprehensive partnership between the US and Vietnam and collaboration among partner countries. While in Vietnam, Pacific Partnership personnel will work side-by-side with Vietnamese civilian medical officers, pay a courtesy call on leaders at the Da Nang City People's Committee, participate in civil engineering projects, and exchange expertise with military medical staff, as well as participate in community projects. Lt. Cmdr. Greg Dusetzina, the American officer in charge of the Vietnam mission, expects that the multi- national cooperation during the mission stop will continue to build on the progress experienced during previous iterations of Pacific Partnership. "Pacific Partnership includes the traditional humanitarian aid and disaster relief (HA/DR), medical, engineering and community relation projects," he said. "We are excited to work alongside our partner nations to further develop lasting relationships with mutual trust, critical to maintaining peace and stability in the region." In a continuation of the crisis management and response activities from PP16, Pacific Partnership and Vietnamese personnel will conduct an expert exchange at an HA/DR workshop that culminates in a field training exercise. These personnel will also complete renovations at the Hoa Lien Nursery School, the Hoa Hai Medical Clinic, and the Hoa Nhon Community Centre. A Seventh Fleet Band will perform at the Dragon Bridge on the Han River, and Pacific Partnership personnel will provide an English-Music Exchange to Phan Chau Trinh High School students. "Natural disasters don't recognise borders, so Vietnam, the US, and other Pacific nations must be prepared to respond quickly," said US Ambassador to Vietnam, H.E. Ted Osius. "Through the Pacific Partnership, our countries are working and training together so that when disasters strike, we can seamlessly assist those in need. Our collaboration will enhance regional capacity in humanitarian assistance and disaster relief." Pacific Partnership will continue on to Khanh Hoa following its stop in Da Nang. http://vneconomictimes.com/article/vietnam-today/pacific-partnership-2017-arrives-in-da-nang

HCM City considering elevated roadway near Tan Son Nhat 10/May/2017 Intellasia| VN Economic Times New roadway to alleviate localised congestion around airport and be built under the PPP model. HCM City is considering a plan to build an elevated roadway in the area around Tan Son Nhat International Airport with expected investment capital of VND2.6 trillion ($111.4 million), in a bid to alleviate localised congestion. The plan was proposed by a joint venture of three companies: Corporation 319 under the Ministry of National Defense, East Mekong Commerce, Services, Manufacture and Construction Company, and Dong A Infrastructure Corporation. The 3.24-km roadway will be built under the public private partnership (PPP) model. It will start at Terminal T2, travel above Domestic Terminal T1 to Thang Long and Phan Thuc Duyen Streets, cross Hoang Van Thu Park and a nearby intersection, and rejoin regular traffic at Hoang Van Thu and Nguyen Van Troi Streets. "The road will allow motorists leave the airport in the fastest time possible," Hoang Dinh, Project director at the Dong A Infrastructure Corporation, told local media. PPP is a suitable model, he added, given the difficulties facing budget resources and in calling for ODA. Traffic congestion costs the city more than $820 million each year, research from the HCM City University of Technology found. The situation worsens every day due to construction sites and poor land use planning resulting in transport infrastructure failing to meet needs. There have been no effective solutions introduced to deal with the rise in the number of personal vehicles, he added, and bus routes have proven inadequate. According to the city's Department of Transport, it now has more than 7.5 million vehicles (including nearly 7 million motorcycles) on its streets, a year-on-year increase of 6.77 per cent, excluding millions of vehicles registered in other provinces and used in the city every day. HCM City is pushing forward with upgrading and expanding its arterial roads and building elevated roadways and parking lots. It is also accelerating construction of two urban railway lines and one bus rapid transit (BRT) project, along with building new bus terminals in outlying areas. http://vneconomictimes.com/article/vietnam-today/hcmc-considering-elevated-roadway-near-tan-son- nhat

HCM City to pilot bus lanes 10/May/2017 Intellasia| The Saigon Times The HCM City Department of Transport will test setting up bus lanes on Dien Bien Phu and Vo Thi Sau streets. In particular, buses will be given priority to run on the middle lanes of Dien Bien Phu Street (the one-way section from Ngo Gia Tu - Ly Thai To intersection to Dinh Tien Hoang Street) and the entire street of Vo Thi Sau from Dinh Tien Hoang Street to Dan Chu Roundabout. Bus stops, designed the same as those of the Bus Rapid Transit (BRT) routes in Hanoi, will be set up along the middle lanes for people to easily catch the bus. According to the Management and Operation centre for Public Transport of HCM City, the scheme for establishing bus lanes is prepared by the HCM City University of Transport and will be passed around for public comment. In addition to buses, the middle lanes of the streets should be used for ambulances and coaches also. The city earlier had intended to pilot bus lanes on these streets in April 2017. However, the HCM City Department of Transport said the pilot scheme should be carefully studied and reported to the city government before implementation. These priority lanes are aimed at ensuring punctual bus operations and thus attracting more people to travel by bus. If the pilot scheme is successful, it would be expanded to some other streets such as Truong Chinh, Nam Ky Khoi Nghia, Nguyen Van Troi, Hanoi Highway and Pham Van Dong. Pham Sanh, an urban transport expert, suggested the city set up bus lanes on wide roads such as Vo Van Kiet, Pham Van Dong, Dien Bien Phu and Hanoi Highway. Meanwhile, there should not be separate bus lanes on narrow inner-city roads. http://english.thesaigontimes.vn/53822/HCM City-to-pilot-bus-lanes.html

West Lake boat racing club given go-ahead 10/May/2017 Intellasia| VN Economic Times Boat club to hold races and give famed lake an even better appearance. The Hanoi People's Committee has decided to set up a boat racing club at West Lake, as part of plans to promote tourism in the area in particular and the capital in general. The club is expected to attract members and organise regular races to bring more color and ambiance to the lake and the lakeside, from both racers and spectators. The city will invest in renovating the West Lake area in the future to turn it into one of Hanoi's most important tourist destinations. Located to the northwest of the centre of Hanoi, West Lake is the city's largest, with a shore stretching 17 km and covering about 5 sq km. It is the home of many significant sites in the history of Hanoi and Vietnam, such as Tran Quoc Pagoda, the oldest in Vietnam and built in the 6th century on a small island by the shore of the lake, and Quan Thanh Temple, known as one of the four sacred protectors of ancient Hanoi. It is also a popular place for recreation, especially at sunset, with many gardens, hotels, villas, cafes, and beautiful landscapes. http://vneconomictimes.com/article/society/west-lake-boat-racing-club-given-go-ahead

Vietnam, US share supplementary strengths for development 11/May/2017 Intellasia| VNA As members of the Asia-Pacific Economic Cooperation (Apec) Forum, Vietnam and the US have complementary strengths for mutual development, bringing benefits to the two economies. Since the normalisation of ties on July 12, 1995, Vietnam and the US have become comprehensive partners, ranging from politics, economy, diplomacy, education, science-technology to national defence- security. Economic cooperation is a foundation and increasingly important driving force for bilateral ties. Two-way trade, which was a mere 450 million USD in 1995, surged to 21.8 billion USD in 2001 when a bilateral trade agreement took effect on December 10. Since 2005, the US has become Vietnam's largest importer with two-way trade growing 20 percent in recent years, surpassing 45 billion USD in 2015 and nearing 47.2 billion USD in 2016, with Vietnam enjoying a trade surplus. The American Chamber of Commerce in Vietnam estimated the total value of bilateral trade at 80 billion USD by 2020. In investment, the US is among the top 10 countries and territories investing in Vietnam with total registered capital of more than 11 billion USD, not to mention its capital flows via third countries, mostly in hospitality and restaurant services, processing and manufacturing industries, among others. A number of US businesses have been operating for a long time in Vietnam such as Intel, Microsoft, GE, Chevron and Exxon Mobil. About official development assistance, the US has provided more than 100 million USD to Vietnam each year. According to experts, Vietnam-US economic ties are driven by Vietnamese political and economic stability, abundant workforce and natural resources, sound renovation and integration policies and incentives for foreign investors. Vietnam has also made considerable progress in information and law transparency, foreign investment facilitation and creating a pro-business environment. Overall, Vietnam-US ties will see new positive prospects and further develop for the common interests of the two peoples, as well as for peace, stability and development. http://en.vietnamplus.vn/vietnam-us-share-supplementary-strengths-for-development/111459.vnp

Human resources in digital era to be hot topic of Apec meetings 11/May/2017 Intellasia| VNA Apec economies will participate in a high-level policy dialogue on human resources development in the digital era in Hanoi on May 14 and 15, as heard at a press conference by the Ministry of Labour, Invalids and Social Affairs on May 10. The Apec 2017 National Secretariat said the dialogue is considered a highlight of Apec activities this year, as human resources are among key solutions to economic development. The dialogue will focus on the topics of employment and workforce challenges in the digital era; policies and models for vocational training amid the 4th industrial revolution; and social welfare policies that need amendments. Through these issues, cooperation frameworks on job creation, vocational training and social welfare will be tabled. Dao Quang Vinh, director of the Institute of Labour Science and Social Affairs and deputy head of the Apec 2017 National Secretariat, said Vietnam expects to devise an action plan that could provide the groundwork for Apec economies to enhance engagements in the field. On the sideline of the dialogue, a number of meetings were scheduled between May 11 and 15. They consist of two separate conferences on labour market information in the digital era and boosting social welfare in Apec region on May 11 and 12; a conference to review preparations for the dialogue on May 13; and a meeting of the Apec Human Resources Development Working Group on May 14. About 200 Apec activities are set to take place across Vietnam this year. http://en.vietnamplus.vn/human-resources-in-digital-era-to-be-hot-topic-of-apec-meetings/111502.vnp

Private investment up in 2017 11/May/2017 Intellasia| VNS Grant Thornton Vietnam Limited's 16th survey of the Vietnamese private equity sector showed largely positive economic progress and optimism for the country's level of investment attraction. As Vietnam is ranked the second most preferred destination for private investment in Asean, 78 per cent of participants in the survey reported a positive outlook in both the private sector and Vietnamese economy in general, which has increased by 23 per cent from last year. Grant Thornton's survey, released late last month, confirms that private equity investment this year will continue to have an important impact on the economy as a whole, with 72 per cent of surveyed foreign companies saying that they will continue to invest in Vietnam due to the country's abundant, competitive and low cost labour and growing middle class consumption. Newly listed private companies and State owned enterprises expect to yield remarkable opportunities in the private equity sector this year. Eighty-seven per cent of responses show an anticipated increase in investment activity level in 2017; while 70 per cent forecast more buy-side than sell-side activities in the next 12 months, having increased by 14 per cent from 2016. Fifty-two per cent expect state owned enterprise equitisation to be the largest deals source after the government issued Resolution 35/NQ-CP to support enterprises till 2020. Meanwhile 49 per cent expect foreign private equity funding to be the most competitive source of merger and acquisition activities, and 98 per cent believe sector specific opportunities to be the driving force for Vietnam's private equity sector. The food and beverage industry, together with the retail sector, continue to be the country's leading industries in terms of investment attractiveness; 53 and 49 per cent of responses rated them as "very attractive", respectively. Healthcare and pharmaceuticals and transportation and logistics follow at 38 per cent "very attractive" rating. This is due to "the influence of Western lifestyles and increasing disposable incomes," said the report. Oil, gas and natural resources are seen as the least attractive, with 36 per cent of surveyees rating the sector "very unattractive". Investors all agree that transparency in business activity and corporate governance are key factors to be considered when investing in private companies in Vietnam. Additionally, up to 36 per cent of private equity investors consider an initial public offering to be the most preferred exit option, with trade sale at 33 per cent as the second best choice. However, up to 80 per cent of participants expressed concern for 2017 economic growth, due to 2016's market volatility and disturbance in foreign trade and investment, notably China's economic slowdown and the Trans Pacific Partnership Agreement's imminent termination. Fifty-five per cent of respondents claim that the opportunities for new fundraising are limited and challenging. The Vietnamese private equity market will likely experience difficulties in raising new funds because of the shortage of options while a declining new capital flow could be a threat for new and smaller funds, as the State Bank of Vietnam will face challenges in keeping lending rates steady and inflation under the five per cent target rate. The survey also considers corruption, national budget constraints, subpar management standards, infrastructure bottlenecks and a lack of competitiveness in small and medium enterprises to be critical investment obstacles in Vietnam, with 87 per cent of surveyees in agreement, in addition to fiscal difficulties and natural disasters affecting agricultural and tourism contribution to gross domestic product. In 2016, Vietnam's GDP growth rate of 6.21 per cent proved to be lower than the 6.68 per cent in the same period in 2015, marking the first economic slowdown in four years and subsequently missing government target of 6.7 per cent for the fiscal year of 2016. 2016 CPI was at 4.47 per cent, which was under the target of five per cent as well. Established in 1993, Grant Thornton Vietnam Limited is an independent member firm of Grant Thornton International. It is the second international audit, taxation and advisory services firm to operate in Vietnam. http://www.vir.com.vn/private-investment-up-in-2017.html

Vietnam enjoys strong export growth 11/May/2017 Intellasia| VNA Vietnam exported 16.7 billion USD worth of goods in April, raising the total export turnover in four months to 61.3 billion USD, a year-on-year increase of 15.4 percent, according to the general Statistical Office. The outcome surpassed the yearly target of 6-7 percent set for the industry-trade sector. And, all baskets of export products recorded growth of 12-43.6 percent. Since the beginning of this year, the export turnover of the domestic economic sector the main driving force for the nation's economy has continuously surged, nearly equal to the growth level of the foreign invested economic sector (16.1 percent). In January-April, the domestic economic sector recorded 17.3 billion USD in export turnover, up 13.7 percent, an encouraging outcome compared to a slight increase of 3.4 percent in the same period of 2016. Also in the four-month period, trade deficit from China declined, and the Republic of Korea (RoK) took the lead with 7.3 billion USD. Vietnam has integrated extensively and intensively into the global economy and signed a number of free trade agreements with countries and territories. Deputy minister of Industry and Trade Do Thang Hai suggested promoting production and increasing competitiveness of businesses and goods to earn higher export value. He recommended boosting domestic production and creating high-quality and highly-competitive products in an effort to limit the imports of unnecessary products. At the same time, the campaign "Vietnamese prioritise to using Vietnamese goods" should be expanded and products and export markets be diversified, he stressed. Apart from assistance from competent agencies, businesses need to develop such staples as farm produce, forestry and aquatic products, garment-textile, and footwear via developing their quality and building brand names. Experts also noted that the trade deficit currently stands at 4.5 percent, higher than the 3.5 percent target set by the National Assembly. They suggested taking into account the exchange rate policies and import structure to create the best conditions for domestic businesses to develop since foreign enterprises are still making up over 70 percent of the total export revenue. http://en.vietnamplus.vn/vietnam-enjoys-strong-export-growth/111491.vnp

Draft decree opens door wider for rice exporters 11/May/2017 Intellasia| The Saigon Times A forthcoming decree replacing Decree 109 on rice trading and export may remove many regulations seen as barriers to the development of the rice industry, according to a draft released by the Ministry of Industry and Trade. The draft has heaped praise from rice exporters. The draft abolishes Article 18 on criteria for registration of export contracts and Article 19 on the floor export price in Decree 109. With this, the rules on the floor price in rice export operations would no longer apply. The new decree will also open the door for rice exporters by modifying rice export conditions in Paragraph 1 of Article 4 in a way that does not specify the size of storage and milling facilities. Instead, these establishments must meet the general standards promulgated by the Ministry of Agriculture and Rural Development, according to the draft. Currently, rice exporters are required to have at least one specialised warehouse with a minimum storage capacity of 5,000 tonnes of rice, and at least one rice husking and milling plant with a minimum capacity of 10 tonnes per hour in line with the common standards set by the agriculture ministry. Now, the draft only asks them to have a specialised facility for storing, husking and milling rice in line with the common standards defined by the agriculture ministry, satisfy food safety conditions and obtain a food safety certificate in accordance with the Law on Food Safety. The draft orders rice exporters to have a material zone or to cooperate with rice producers in production and consumption, with a written approval by authorities in localities where these material zones are situated or where joint production and consumption take place. For organic, parboiled and medicinal rice, traders are allowed to export unlimited quantities provided that they report on export contracts in accordance with general regulations. Export procedures are carried out at the customs office. The draft nullifies the requirement for registration of export contracts with the Vietnam Food Association (VFA). As per the draft, instead of registering rice export information with VFA, enterprises now need to make reports on their rice export contracts on the portal of Ministry of Industry and Trade at www.moit.gov.vn to facilitate the management of rice export operations. After all necessary information is provided, their rice export contract reports will be automatically transferred to the National Portal (vnsw.gov.vn) as the basis for the implementation of customs procedures according to the law. While it is still unknown when the new decree will come out, certain rice exporters have thrown their support behind the draft rules. Nguyen Van Hung, deputy director of rice exporter Eco Tiger specialising in producing and trading in organic rice, said his company has so far had to ship rice abroad via an intermediary company, which has caused numerous inconveniences, including confidential information about customers. In addition, many companies have to export products via a third party, and due to complicated procedures, such companies have shunned potential markets such as the US "Now the draft decree allows traders to export organic rice without limits and requires no certificates on rice export eligibility... which is good news. We hope this will soon be realised," he said. Pham Thai Binh, director of Trung An Hi-Tech Agriculture Company, said the abolishment of the floor price in rice export contract is a right approach, which will surely help boost rice export. In addition, registering rice export contracts with the Ministry of Industry and Trade via its portal is more convenient than registering with the Vietnam Food Association, he noted. http://english.thesaigontimes.vn/53847/Draft-decree-opens-door-wider-for-rice-exporters.html

Exports to India on the rise 11/May/2017 Intellasia| VOV Exports to India reached $734.6 million in the first quarter of this year, a year-on-year rise of 32.2 percent, according to the general Department of Vietnam Customs. Computers, electronics and components topped among 28 export products to India with $139.4 million (up 142.8 percent), trailed by base metal with $106.2 million (up 87.5 percent) and telephones and components with $100.3 million (up 13.3 percent). In general, most export items in the first 3 months obtained a growth compared to the same period last year, particularly tea which enjoyed a skyrocketed growth of 794 percent although its revenue was just half a million $. Other products saw a high export growth, namely steel (up 337.5 percent), confectionary and cereal products (up 118.7 percent) and garment (up 74.3 percent). Meanwhile, export products which suffered a sharp decline are rattan and bamboo products (down 88.7 percent against the corresponding period last year), rubber (down 59.2 percent) and pepper (down 48 percent). http://english.vov.vn/trade/exports-to-india-on-the-rise-349215.vov

Fuel imports from Korea shoot up 11/May/2017 Intellasia| The Saigon Times Fuel imports from South Korea this year have more than doubled year-on-year to nearly one million tonnes, supported by low import tariffs, according to the general Department of Vietnam Customs. Vietnam spent $604.8 million importing some 986,500 tonnes of petrol from South Korea in the first four months of the year, up over 105 percent from the year-ago period. A source from a southern fuel enterprise told the Daily that fuel imports from South Korea enjoy the most favourable tariffs given the Asean-Korea free trade agreement (AKFTA). Domestic firms are subject to a tariff of 10 percent for fuel imports from South Korea, 10 percentage points lower than from many other markets. Meanwhile, the tariff on diesel is 0 percent, which is equal to other Asean countries but is five percentage points lower than other markets. Fuel importers prefer oil products from the South Korean market to those of Dung Quat Oil Refinery, citing lower cost and plentiful supply. The increase of fuel imports from South Korea also means that imports from other markets went down. Fuel imports from Malaysia and Singapore had dipped 25 percent and nearly 10 percent respectively in the year to April 30. A report of the department showed that import prices of fuels increased sharply in the first four months of the year. The price since early year has averaged out at $538.7 a tonne, up 56 percent over the same period last year. http://english.thesaigontimes.vn/53845/Fuel-imports-from-South-Korea-shoot-up.html

Almost 700 Vietnamese firms lose export licences to US 11/May/2017 Intellasia| VNA The American Food and Drug Administration (FDA) has cancelled the import licences of 679 Vietnamese food and beverage manufactureres that did not re-register with the agency as required, or did so without following current procedures. The Vietnam Trade Office (VTO) in the United States has reminded domestic export firms to check the validity of their business codes before shipping food and beverage products for human and animal consumption into the US. According to recent FDA data, before this re-registration requirement, Vietnam had a total of 1,485 enterprises with valid business numbers provided by the FDA; however, this number has currently dropped to 806. Dao Tran Nhan, head of US-based VTO, said that under US law, all foreign firms exporting food and beverages for people and animals into the US market must re-register every two years. This included registering their manufacturing facilities and representatives in the US so that they could be issued with a new valid business code. This task needed to be completed before the shipment arrives in the US. Since 2017, the FDA has changed the method of verification for issuing new business codes and established further regulations. For example, after being designated by the manufacturing facilities and registered with the FDA, the firm's representatives in the US must send a letter or document to the FDA confirming their authorisation to represent a Vietnamese manufacturing facility in the US. If the FDA does not receive this letter or document, the re-registration is considered incomplete and the business code will be cancelled. Shipments by Vietnamese firms that are unaware that their FDA business codes have been revoked will be refused entry to the port. Further, companies proceeding with goods delivery without valid registration will be considered violating the law and may be subject to criminal or other severe penalties under the United States' Food, Drug and Cosmetic Act. Data provided by the general Department of Vietnam Customs reported that in 2016 the country's export turnover to the US hit 38.5 billion USD, growing 15 percent compared with the previous year and accounting for 22 percent of the country's total import-export turnover. Eight types of product exported to the US earned over 1 billion USD for the country in 2016. Textiles and garment shipments were at the top with an increase of five percent from a year ago to 11.5 billion USD, accounting for nearly 30 percent of Vietnam's total export turnover to the US. http://en.vietnamplus.vn/almost-700-vietnamese-firms-lose-export-licences-to-us/111451.vnp

Binh Duong records four-month trade surplus 11/May/2017 Intellasia| VNA The southern province of Binh Duong posted a trade surplus of more than 2.26 billion USD in the first four month of 2017. The outcome was reached thanks to local exporters' efforts to prepare enough materials for production. According to the provincial Department of Industry and Trade, between January and April, the province's export revenue exceeded 8.51 billion USD, up 16.3 percent from the same period last year. Of the total, 7 billion USD came from the foreign-invested sector, increasing 18.1 percent year-on-year. Key exports such as woodwork, garment and footwear grew at a stable rate. Meanwhile, the province's imports, mostly production materials and machines, were estimated at 6.25 billion USD, an annual increase of 15.2 percent. http://en.vietnamplus.vn/binh-duong-records-fourmonth-trade-surplus/111493.vnp

VN's sugar inventory reaches record high in April 11/May/2017 Intellasia| VNS Total sugar inventory at factories and trading companies by the end of April reached a record high in the history of the local sugar industry, according to the Vietnam Sugar Cane and Sugar Association. Farmers harvest sugar cane in Long An province. By the end of April, total inventory stood at 717,519 tonnes of sugar, including 674,487 tonnes of sugar in factories and 43,032 tonnes in trading companies. By the end of April, total inventory stood at 717,519 tonnes of sugar, including 674,487 tonnes of sugar in factories and 43,032 tonnes in trading companies. That surpassed the record of 701,680 tonnes in April 2014, said the association. The inventory was highest at 235,494 tonnes in the southeast region, followed by the centre with 221,659 tonnes, the north with 153,806 tonnes and the Mekong Delta region with 61,168 tonnes. Nguyen Hai, general secretary of the association, said sugar consumption was slow. In April, the industry consumed 120,636 tonnes of sugar. Meanwhile, 17 factories produced 165,000 tonnes of sugar in the month, higher than demand. In May, those factories expect to add 150,000 tonnes to the market supply. In the first four months, total sugar output reached 1,041,439 tonnes, according to the association. The strong growth in sugar inventory was due to a reduction in demand after Tet festival while sugar exports struggled to compete with Thai sugar exports to China, the association said. Additionally, smuggled sugar and fraudulent sugar entering the local market affected consumption of domestic sugar, causing the sugar inventory to hit the record high. Prices of smuggled and fraudulent sugar products was VND600-1,400 per kilo lower than domestically- produced sugar products, the association said. On May 3, wholesale price of white sugar was VND15,600-16,300 (US$0.690-0.72) per kilo in Hanoi, VND15,000-15,400 in the centre and VND15,600-16,400 in HCM City. The price of smuggled Thai sugar was VND14,000 per kilo in Lao Bao border gate, Quang Tri Province and VND15,000 in HCM City, reported nongnghiep.vn. Smuggled sugar enters the local market via border gates in the Southwest border and border with Laos. Also, sugar has been temporarily imported to Vietnam with the premise of being re-exported to other countries but in fact, a volume of sugar was imported to sell in provinces in the north with lower prices. This volume of sugar has created difficulties in consuming domestic sugar, according to sugar factories. http://english.vietnamnet.vn/fms/business/178086/vn-s-sugar-inventory-reaches-record-high-in-april.html

Government to investigate improper use of State-owned land 11/May/2017 Intellasia| VN Economic Times Deputy PM to begin reviewing land use purposes at 60 commercial areas. In a move to stem losses to the State budget and assets, the government Inspectorate will investigate real estate projects on State-owned land that have been used for different purposes than originally indicated or appear to violate the Land Law 2013 by imposing inappropriate land use or rental fees. Following a proposal from the Ministry of Finance sent to prime minister Nguyen Xuan Phuc, deputy prime minister Vuong Dinh Hue, via a statement from the Office of the government, agreed to begin reviewing the land use purposes at 60 commercial areas. According to the finance ministry's proposal, from July 1, 2014 to November 30, 2016 there were 60 cases of State-owned enterprises (SOEs) receiving approval to convert land use purposes during their equitisation process, including major projects such as Vincomreal's Riva Park in HCM City and the Vinaconex - PVC Construction Investment JSC's PVV-VinaPharm project in Hanoi, among others. The statement noted that many SOEs undergoing equitisation did not take into account their land use rights, causing losses to the State budget, then used these prime plots of land inadequately or for other purposes post-equitisation. The land valuation process that determines land use or rental fees has also been mainly based on suggestions from consultants, which have in some case been inadequate and have failed to reflect a fair market value. In addition, the land valuation process to determine land use or rental fees at some cities and provinces has not been conducted in accordance with procedures. There have been a number of cases where the city or provincial People's Committees did not consult local People's Councils on land rental fees. In the meantime, the finance ministry has asked the prime minister to suspend the ongoing construction of buildings with inadequate land use purposes in main cities that were also not subject to an auction. Last year, during the divestment of State capital from the Saigon Beer, Alcohol and Beverage Corp. (Sabeco) and the Hanoi Beer Alcohol and Beverage Corp. Habeco, the prime minister noted that "land use rights at these SOEs must be taken into account during the valuation process and there will be no discrimination between foreign and local partners." When asked his opinion on why land use rights are important in the valuation process, Member of the National Assembly's Financial and Budget Commission, Bui Duc Thu, said the inclusion of land use rights during the process is so that investors cannot take over land in prime locations. He believes that if land use rights are not taken into account, then land in cities and provinces that were previously leased at low prices to attract investment would be used for other purposes by the new investor. In such cases, the State would lose its benefits while land assets would fall under the ownership of certain individuals. http://vneconomictimes.com/article/banking-finance/government-to-investigate-improper-use-of-state- owned-land

VND1.4 trillion social insurance debt yet to be settled 11/May/2017 Intellasia| The Saigon Times Some VND1.4 trillion in social insurance debt has been overdue for 10 years and is seen irrecoverable, putting about 194,000 workers at risk of losing their insurance benefits. Social insurance debt and evasion occur mainly in the non-state sector, said Dao Viet Anh, deputy general director of Vietnam Social Security. The main reasons are the low level of compliance with social insurance law by employers, the lack of a sense of responsibility and insufficient attention paid to social insurance for employees, he said at a seminar on "Undoing the bottlenecks in lawsuits against social insurance evasion." The event was held by the government web portal in Hanoi on Monday. "The most worrying thing is about VND1.4 trillion in social insurance is owed by enterprises that have stopped operating, been disbanded, gone bust or taken flight. This sum has been tracked on the book- keeping system for more than 10 years," said Anh. He added that this type of debt was almost irrecoverable and the interests of employees at these firms had not been solved. By 2015, nearly 194,000 workers had been affected by the VND1.4 trillion debt. To strengthen the collection of social insurance debt, grassroots trade unions or their direct superiors (the latter case for units and enterprises which have not set up a trade union) are to file a lawsuit on behalf of workers, according to the Law on Social Insurance and the Trade Union Law. However, the lawsuit must be filed by a grassroots trade union or have written authorisation from employees. This is one of the reasons why lawsuits brought by trade unions are not effective. Although the social insurance agency has transferred more than 1,800 files on insurance debt to trade unions, the number of cases filed by these organisations is small (just 82), said Anh. There are cases in which the files have been returned by court for the lack of employee authorisation or that of a grassroots trade union. In some others, the court has accepted the case and later issued a decision to suspend settlement on the ground that the plaintiff has no right to initiate a lawsuit in accordance with Articles 186 and 187 of the Civil Proceedings Code. Authorisation is not the only problem. Many grassroots trade unions dare not bring a lawsuit or authorise their superiors to do so. Meanwhile, workers dare not authorise a trade union to sue their employers since they need a job. In addition, for a trade union to file a lawsuit and get accepted by the court, the Civil Proceedings Code must be adhered to. Yet, while the Law on Social Insurance took effect on January 1, 2016, the Civil Proceedings Code came into force on July 1, 2016. Not only that, the Penal Code become effective on July 1, 2016, but has been temporarily invalidated waiting for amendments at the next National Assembly sitting. Bui Sy Loi, deputy head of the National Assembly's Committee for Social Affairs, deemed it necessary to review and unify the promulgation of legal regulations. On pending the synchronisation of the legal system, to overcome the current shortcomings, the superior trade unions should be allowed to file a lawsuit for claim of social insurance debt to remove difficulties with authorisation for trade unions. http://english.thesaigontimes.vn/53848/-VND14 trillion-social-insurance-debt-yet-to-be-settled.html

Government tightens regulations on ODA on-lending 12/May/2017 Intellasia| The Saigon Times Local governments wishing to borrow official development assistance (ODA) loans for the implementation of socio-economic development projects will have to meet a number of stricter regulations in the near future. The central government has recently issued Decree No.52/2017/ND-CP governing on-lending of the government's ODA loans to centrally-run provinces and cities, which will take effect in the middle of next month. The decree requires local authorities to satisfy numerous requirements to be eligible for on-lending. First, provincial authorities must have obtained the green light by competent agencies to mobilise loans for socio-economic development. Besides, those projects funded by reciprocal capital from their local budgets must be carried out in public-private partnership (PPP) format and such funds must be covered by provincial budgets in line with local medium-term public investment plans. Total outstanding loans covered by local budgets at the time of appraising investment principles for projects and programmes do not exceed quotas for local budgets as stipulated under the Law on State Budget. Especially, they must have no on-lending debts that are more than 180 days overdue. Besides, annual repayments of local governments for ODA loans do not exceed 10 percent of local budget revenues at the time of considering on-lending requests. Notably, the decree also regulates on-lending proportions of ODA loans for projects whose investment capital is receivable from local budgets. The respective on-lending proportions of 10 percent and 20 percent of ODA loans apply to localities with extra appropriations from the central budget accounting for at least 70 percent, and from 50 percent to below 70 percent of the total budget expenditures of the localities. Localities with extra appropriations from the central budget representing below 50 percent of the local budget expenditures are subject to an on-lending proportion of 30 percent. An on-lending proportion of 50 percent applies to localities which have contributed to the central budget. However, Hanoi and HCM City are eligible for an on-lending proportion of 80 percent. In addition, an on-lending rate of 70 percent shall apply to ODA loans used for public capital contributions to PPP projects. The repayment of principal, on-time interest, capital arrangement and management fees must be in accordance with loan agreements with foreign parties. The Ministry of Finance is assigned to announce on-lending rates of ODA and preferential loans for centrally-run cities and provinces in the 2017-2020 period, prior to mid-June each year. The allocation of ODA loans for projects under national target programmes will be applied in line with the Public Investment Law in which the central and local budgets are used to mitigate impacts of natural disasters. This is beyond the scope of the decree. http://english.thesaigontimes.vn/53874/Gov percentE2 percent80 percent99t-tightens-regulations-on- ODA-on-lending.html

Competition Law needs to be improved: official 12/May/2017 Intellasia| VNS The current Competition Law in Vietnam has yet to come into practise, and it will need further improvement to reach its full potential, said Trinh Anh Tuan, deputy director general of the Vietnam Competition Authority (VCA) of the Ministry of Industry and Trade (MoIT). During his speech at a Vietnam Chamber of Commerce and Industry (VCCI) conference yesterday, Tuan stressed the importance of the national law on competition in pushing economic progress and protecting a fair environment for national competition. The conference introduced several changes in the Competition Law draft to be submitted, with visions toward building a socialist-oriented market economy with in-depth global integration. Dau Anh Tuan, Head of the VCCI's Legal Department, stressed the need for a modified Competition Law, as the current set of laws shows several inadequacies in defining legal breeches in fair entrepreneur competition--including monopolistic behaviours, market domination and market centralisation, while the previous set of conditions for a relevant market is now considered obsolete and unaccommodating in practise. Furthermore, the law on competition is making it difficult to investigate cases of unfair competition. There has yet to be a definite legal framework for the competition authority to obtain proof of unfair competitive practises done by firms, and to assert the level of damage done by these breeching firms in order to prevent and punish such acts. As such, the reviewed and renewed Competition Law is built upon the basis of anti-trust practise and ensures fair competitive actions amongst firms. The law aims to increase Vietnam's economic efficiency and protect the rights and benefits of Vietnamese businesses and consumers. Another objective for the new law is to guarantee fairness and transparency for court decisions in cases regarding unfair competition and affirm the central role of the government in protecting a competitive market economy. Tang Van Nghia, Dean of Postgraduate from Foreign Trade University, also praised the upcoming changes. He advised lawmakers to add an exemption clause in order to grant businesses pricing freedom, as a true market economy gives firms the right to choose their own levels of supply and price. The draft for a revised law on competition is expected to institutionalise and realise the government's policy to construct a fair market without monopoly and unfair competition in the near future. http://bizhub.vn/news/competition-law-needs-to-be-improved-official_286059.html

Vietnam, EU complete VPA negotiations on forest governance 12/May/2017 Intellasia| VNA Vietnam and the EU on May 11 concluded six years of negotiations for a voluntary partnership agreement (VPA) on Forest Law Enforcement, Governance and Trade (FLEGT). The agreement aims to ensure that all timber and timber products destined for the EU market from a partner country comply with the law of that country. It is expected to improve forest management, deter illegal logging, and boost trade of Vietnamese legal timber products with the EU and other markets. Vietnamese deputy minister of Agriculture and Rural Development Ha Cong Tuan and Astrid Schomaker, director for Global Sustainable Development at the European Commission's directorate general for the Environment, have initialled the pact's content, which will undergo further legal examination before being translated into the EU's official languages and Vietnamese. Both sides have agreed on key factors needed in preparation for the implementation of the agreement. Key elements of the VPA include commitments to legal reforms, public disclosure of information and improvements to forest governance; and a framework for overseeing, monitoring and evaluating the implementation of the VPA and its economic, social and environmental impacts. Following the conclusion of negotiations, Vietnam and EU will sign and ratify the VPA so that their commitments will become legally binding. A Vietnam-EU Joint Implementation Committee (JIC) will oversee the implementation of the VPA and respond to concerns as they arise. In order to issue FLEGT licences as required by the VPA, Vietnam will develop a timber legality assurance system (VNTLAS). The country will begin issuing FLEGT licences when the timber legality assurance system has been successfully tested, and when Vietnam and the EU are satisfied that it functions as described in the VPA. Vietnam is among 15 countries negotiating the VPA with the EU. Indonesia was the first Asian country to initial a VPA, with FLEGT licencing beginning on November 15, 2016. http://en.vietnamplus.vn/vietnam-eu-complete-vpa-negotiations-on-forest-governance/111566.vnp

Domestic steel consumption slows down in April 12/May/2017 Intellasia| VNS Domestic steel consumption recorded a modest year-on-year rise of 2.7 per cent in April to some five million tonnes, according to the Vietnam Steel Association (VSA). Last month, the purchase of construction steel products dropped 14 per cent year-on-year to reach more than 635,000 tonnes. As of April 30, the inventory volume of construction steel stood at 720,000 tonnes, much higher than the previous month. Consumption of steel pipes also saw a slight decrease of 5 per cent to some 158,000 tonnes, the association said. According to VSA, 6.23 million tonnes of steel, worth $3.18 billion, were shipped to Vietnam until April 15, marking a yearly slump of 5 per cent in volume but an increase of 22 per cent in value. The association attributed the drop in the quantity of imported steel to the positive impact of Vietnam's safeguard measures, which have resulted in local enterprises having to face less pressure from competition. Earlier, the association predicted the local steel industry would likely enjoy 10-12 per cent growth this year. With expected GDP growth of 6.2 per cent this year and the operation of 10 steel projects in 2017, the sector's growth is expected to expand further, it said. http://bizhub.vn/news/domestic-steel-consumption-slows-down-in-april_286082.html

Vietnam has trade surplus with US, but no need to worry, say analysts 12/May/2017 Intellasia| Vietnamnet Vietnam ranks third among Asian countries which have the biggest trade surpluses with the US. Should this be a concern for Vietnam? The news that US President Donald Trump is arriving in Vietnam to attend the Apec Summit to be held in Da Nang City brings new hope to Vietnam-US trade relations after the US administration announced its withdrawal from TPP. The US trade officials will conduct an investigation into the causes of the US deficit in trade relations with its partners, under a presidential decree released in early April. Of the 16 countries thought to cause the US trade deficit of $500 billion a year, more than half are from Asia. China, Japan, Vietnam and South Korea have the largest bilateral trade surpluses with the US. No official statement has been made, but analysts commented that the major goals for the US are China and Japan, which top the list of the countries with the largest trade surpluses. The number 1 position belongs to China with $347 billion in trade surplus, which is five times higher than Japan's. Analysts think it is highly possible that Washington would force China, Japan and other trade partners to open their markets more widely to goods and services from the largest economy in the world. To date, Vietnam has not been mentioned in the US reports. In most of the lawsuits raised by the US against its trade partners, China was the defendant in 21 cases. The other defendants were Canada, India, South Korea, Mexico and Japan (six cases for each country). Indonesia was sued in four cases, while there were no cases for Thailand, Malaysia and Vietnam. Most of the lawsuits raised by the US against China are related to automobiles, agriculture, microchips, aircraft, metals and intellectual property, while lawsuits against Indonesia are about animal-made products and automobiles. Nhip Cau Dau Tu quoted analysts as saying that the US trade deficit is not entirely due to unfair agreements or fraud, but to US imports of oil. They also believe that Vietnam may bear little impact from the US's new executive command, especially as the Trump administration wants to alleviate concerns about SE Asia being ignored by US. The US President has invited Vietnamese PM Nguyen Xuan Phuc to pay a visit to the US. Meanwhile, vice US President Mike Pence conveyed a reassuring signal to SE Asia countries during his visit to Indonesia. According to Bloomberg, Vietnam's exports to the US have increased by two times since 2010. But Vietnam is one of the fastest growing markets for US goods in Asia. http://english.vietnamnet.vn/fms/business/177979/vietnam-has-trade-surplus-with-us--but-no-need-to- worry--say-analysts.html

Tra fish prices reach 10-year high 12/May/2017 Intellasia| VNS Tra fish (pangasius) prices skyrocketed last month, reaching a 10-year high, but experts warn that export of this seafood product could be unstable this year. They said measures should be taken to restore declining imports to major markets like the US and Europe, counter misinformation about the local seafood industry, and create a national brand with quality products. In the Cuu Long (Mekong) Delta provinces, tra fish prices surged by VND4,000-7,000 (20-27 US cents) per kilo over last year to VND24,000-29,000. At these prices, it is estimated that farmers can earn profits of VND1.5-1.7 million per tonne. Meanwhile, the prices of tra fish breeds climbed to VND50,000-60,000 per kilo in late April and early May, VND20,000 higher than early April, a threefold year-on-year increase. According to the Vietnam Association of Seafood Exporters and Producers (VASEP), tra fish prices in the Asian market averaged $2.3 per kilogram in January and rise $2.7 per kilogram in February, up 17.3 per cent. By April, the prices rose to $2.8-3.00 per kilogram, up 30.4 per cent compared with the beginning of the year. VASEP general secretary Truong Dinh Hoe told Thoi bao Kinh te Vietnam (Vietnam Economic Times) that tra fish prices had started to rise a few months prior to the Lunar New Year festival that fell in January, and reached its peak in April. This was the longest period ever that prices kept increasing, and the trend might continue until the end of 2017, Hoe said. He attributed the surge in purchasing prices to a lack of supply in the market as a result of households abandoning tra fish farming after many consecutive years of losses. Export orders for tra fish in early 2017 rose 10 per cent year-on-year, while tra fish bred for export processing in 2016 fell, Hoe added. In previous years, the US and EU were Vietnam's largest export markets for tra fish, but this has declined in recent years. In Q1 this year, export value of tra fish to the United States was just $61 million, down 24.3 per cent year-on-year, and corresponding figures for the EU and Southeast Asia also dropped sharply, by 21.5 and 10 per cent, respectively. Hoe said anti-dumping tariffs were mainly to blame for the decline. In the US, for instance, Vietnamese exporters had to pay tariffs of $3 per kilo, discouraging them from developing tra fish for export, Hoe said, adding that recent incorrect news broadcasts by overseas media had also hurt exporters. However, tra fish exports to China have shot up since the beginning of this year, surging by 50 per cent over the same period last year. VASEP estimates that China will overtake the US this year as the largest importer of Vietnamese tra fish, with imports of approximately $400 million. This sudden growth poses many risks, Hoe cautioned, without elaborating. He said it is crucial that Vietnam regains its lost market share in the EU and US and promotes the image of tra fish bred in the country. Towards this, the Ministry of Agriculture and Rural Development (MARD), in collaboration with VASEP, has launched a campaign to boost the brand of Vietnam's tra fish. VASEP has suggested that the agriculture ministry re-activate the Market Development Fund established in 2002 by the former Ministry of Fisheries. http://bizhub.vn/news/tra-fish-prices-reach-10-year-high_286064.html

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