finance & business news 2 March 2017

FINANCE ...... 1 European F&B enterprises sound out opportunities in 26 Under pressure to increase capital, banks hunger for foreign funds 1 HCM City aims for high-quality low-cost housing 27 Many organisations race to divest from small banks 3 BIZ NEWS ...... 28 Reference exchange rate goes up 9 VND 3 Business Briefs March 01, 2017 28 G-bonds set record in 2016 4 Raising capital expected to become a hot topic in 2017 AGM Assets of credit institutions rise 16pct in 2016 4 season 28 Maritime event to take place this month 5 Dividend payment schedule of listed businesses during Bao Viet signs cooperation agreement with SeABank 5 March 1-10 29 Financial leasing companies hard-pressed for foreign capital 6 Strong selling hits large caps and blue chips 30 Vietnam's PMI reaches 54.2 points in March 2017 7 Mobile World Congress debuts cool stuff 30 Official: Vietnam's initiatives help Apec keep right track 8 Shares fall on investor caution 30 Official: Vietnam makes practical contributions to Apec issues 8 Nearly 400 million new shares listed 31 All preparations done for first Apec Senior Officials Meeting 10 E-commerce businesses struggle for profits 31 February trade deficit put at $1.2 billion 10 March gas price down 33 Industrial production index sees low increase 11 Vinalines signs $565 million insurance contract 33 PM repeats request for strong actions to reach 6.7pct Vietnam's PV Oil to sell 49 pct stake, plans IPO for June 33 growth rate 11 More than 14,000 enterprises established in two months 34 Vietnam to suspend imports of five agricultural commodities from Vietlott reports huge revenue 34 India 12 Vinalines tipped to become leading maritime firm 35 Retail sales, service revenue increase over 7 per cent 12 Construction of steel plant begins at Yen Bai 35 Seafood export value estimated at 844 million USD early 2017 13 Japanese-funded plant inaugurated in Ha Nam 36 February price index in HCM City up 0.5pct 13 Dak Lak avocado targets world market 36 CPI up 0.23pct in February 13 promotes beef in Vietnam 36 VCCI points out best and worst regulations 14 Danang accommodation market achieves explosive growth 37 Nationwide economic survey starts from March 1 15 Local firms optimistic on 2016's business results 37 Vietnam-India economic cooperation grows strongly 15 Ton Poh Fund invests $11mn in Vietnam's leading mobile retailer 38 Deputy PM wants more international integration 16 Hi-tech medicinal herb processing complex to be built in Gia Lai 39 Real estate sees strong interest from foreign, local investors 17 Opportunity arises for orange exports to 39 Vietnam's super-rich population is growing faster than Panasonic Vietnam doubles production capacity 39 anywhere else 18 After Netflix, another foreign video streaming provider Automakers struggle to keep Vietnam production amid Asean connects in Vietnam 40 tariff cuts 18 Foreign investors keen on retail sector 40 Wood product exporters ready to expand global market share 19 Online movie service of iflix enters Vietnam 41 Pharmaceutical M&A on the horizon 20 Vietnam Railways Corporation has new chair 41 Vietnam's small businesses outperform regional counterparts 21 Quang Ninh becomes new centre of resort real estate market 41 The steps toward 2025's logistics transformation 22 Hotel oversupply perils overblown 23 FINANCE FINANCE Under pressure to 02/MAR/2017 INTELLASIA | NHIP CAU DAU TU increase capital, banks The Head of Vietnamese government, in an announcement earlier this year, said that the hunger for foreign government will strive to increase banking ownership cap for foreign investors in 2017 funds from the current limit of 30 percent. This information has once again made waves in the banking market. Banks are perhaps most looking forward to this move, especially when the deadline for applying Basel II at 10 pilot banks is approaching (September 1st 2017). Banks expect that foreign capital will be poured stronger, thanks to the loosening owner- ship limit, thereby helping them eliminate the pressure to increase charter capital under the Basel II regulations.

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The Commercial Joint Stock Bank for Foreign Trade of Vietnam (Vietcombank, code: VCB) received good news as the bank's after-tax profit growth in 2016 was finalised at 24 percent. However, Vietcombank has sadly not yet been able to complete the capital raising deal worth 400 million US dollars with the Singaporean investor - GIC. This deal is expected to be the first model in the sector to solve the problem of calling for foreign capital as required by the Basel II. Earlier, in August 2016, Vietcombank announced the agreement to sell more than 308 million VCB shares to GIC, equivalent to 7.7 percent ownership rate when the bank starts to increase its capital. Nevertheless, in the beginning of 2017, the government has announced that this deal will be postponed as the offered price is not yet a good one. At that time, the stock price of Vietcombank was 55,000 dong per share, and it is now 35,000 dong per share. This price reduction occurred because Vietcombank distributed dividends and bonus shares at 35 percent ratio. There were rumours that the deal can hardly be completed because the overly high price will cause concerns to the partner. Meanwhile, Chair of Vietcombank Nghiem Xuan Thanh shared that Vietcombank FINANCE strongly hopes for the decline of VCB share price in order to sell out its stake. At the conference on implementing business tasks held in early February 2017, Thanh said that foreign investors are still queuing due to the failure of the price negotiation, and Vietcombank is waiting for solution from the State Bank of Vietnam (SBV). Banks of Vietnam remain very attractive in the eyes of foreign investors. Most recently, according to Chair of Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank), a foreign investor is willing to spend one billion US dollars to buy Sacombank's shares, after the bank was named in the list of bank to focus on restructuring in early 2017. It is not difficult to explain the interest of foreign investors in Sacombank, because the bank owns an extensive network and strong brand in the private banking group. How- ever, if the one billion US dollar number is real, it is really impressive because that is 20 percent larger than Sacombank's current capital size. More than anyone else, banks themselves are eagerly expecting the expansion of for- eign ownership in order to strengthen their resources. Among these banks, the Com- mercial Joint Stock Bank for Industry and Trade of Vietnam (VietinBank) perhaps might feel impatient because its foreign ownership rate has already reached the ceiling limit. In contrast, the Commercial Joint Stock Bank for Investment and Development of Vietnam (BIDV) is yet to have a foreign partner, and the ownership rate of foreign investors at Vietcombank is only 15 percent. However, the level of expansion is the issue that needs careful consideration. In the shareholders meeting season last year, banks recommended to increase foreign own- ership room to about 35-40 percent, including VietinBank, BIDV and Vietcombank. It might be more flexible for private banks, and ownership rate can reach up to 100 per- cent depending on the case. It is noteworthy that under the Law on Enterprises, share- holders owning more than 35 percent of shares are eligible to veto policies in an enterprise. If a foreign investor holds dominant shareholding in a bank, there will probably be conflict in benefits as large banks sometimes also perform market regula- tion function as directed by the management authority. In fact, raising ceiling ownership limit does not ensure the ability that banks can suc- cessfully find share buyers. In 2014, Global Petro Bank (GPBank) failed to complete the acquisition deal proposed by United Overseas Bank (UOB). This also implies that SBV, despite having strong expectation, will not sell banks at low prices. Other opinions mentioned that the management authorities are waiting for banks to be healthier - which means that their assets will be recovered to a certain level -- in order to sell for good prices, thereby gathering more revenue for the State budget. In 2016, banks themselves had conflict related to the State budget issue as VietinBank and BIDV proposed to retain dividends to increase charter capital instead of paying divi- dends in cash. Currently, SBV seems to be moderate with buying offers. Although the deadline to in- crease capital is close, it is worth to remember that the management authority has sev- eral times postponed the deadlines for policy application.

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Many organisations 02/MAR/2017 INTELLASIA | NDH race to divest from In 2015, it was not easy for organisations holding shares of such small banks as AB- small banks Bank, OCB, Maritime Bank, Saigon Bank, etc. to divest capital and they broke their promises to shareholders about the divestment progress. However, the vibrancy and warming of the stock market in 2016 helped these businesses escape from the struggle to divest from small banks. In Q3 and Q4/2016, about 31.26 million SaigonBank shares of Saigontourist and Viet- inbank, Tan Thuan Industrial Development Co., Ltd were successfully auctioned. Of which, the average successful bid price for 10,754,228 shares of SaigonBank owned by Saigontourist reached 14,797 dong/share compared to 12,500 dong per share for 16.875 million shares owned by VietinBank and 10,000 dong per shares for 3,261,941 IPC shares. Similarly, in Q3/2016, Vinamilk successfully divested the entire more than two million shares of An Binh Bank (ABBank).

FINANCE Shares of SaigonBank used to be offered below the face value. Meanwhile, the fair val- ue of ABBank shares was recorded by Vinamilk at about 4,300 dong per share at the end of Q1/2016. The average bid price from 10,000 dong per share to 14,797 dong per share for Saigo- nBank and the successful divestment of ABBank shares by Vinamilk showed good sign about the future of small banks' stocks in the near future. Recently, Vietnam Post and Telecommunication (VNPT) registered to auction 71,577,141 shares of Maritime Joint Stock Commercial Bank - Maritime Bank at starting price of 11,900 dong per share. The auction time will be on March 10, 2017. Reportedly, on March 28, 2016, VNPT was holding 71,577,141 MBS shares, equal to 6.09 percent stake in MaritimeBank. Maritime Bank's capital divestment purpose is in line with stipulations in the government's Resolution No.25/2016/ND-CP. Similarly, most recently, the Bank for Agriculture and Rural Development -- Agrib- ank -- announced to auction their entire 390,665 shares in Orient Joint Stock Commer- cial Bank -- OCB at starting price of 10,200 dong per share. The auction time will be in mid-March 2017. In 2015, Ben Thanh Group also had to divest capital from OCB but until the end of 2016, the company still could not complete the task. The company's Q2/2016's financial report showed that the Group was discounting accumulated risks for OCB shares at 13.6 percent. Though "it is hard to expect much progress on bad debt in 2017 and provisions will continue eroding profits, especially unlisted banks", as per Viet Capital Securities Company, but "not all are bad" and there will have a wave in which small banks must list stocks on the bourse. In addition, also as per Viet Capital Securities, "the valuation of the stock market may return to the average of many years", with the P/E at about nearly 16, and the warming up of the stock market within the past one year has pulled investors back to the market. The aforementioned factors may help stocks of small banks to increase liquidity in the near future. Therefore, with the pressure to divest non-core investments, it is expected that many businesses and organisations will have to enlist to withdraw capital from banks.

Reference exchange 02/MAR/2017 INTELLASIA | VNA rate goes up 9 VND The daily reference exchange rate was set at 22,241 VND per USD on March 2, up 9 VND from the day before. With the current trading band of/- 3 percent, the ceiling rate applied to commercial banks on the day is 22,908 VND and the floor rate, 21,574 VND per USD. The opening hour rates listed at commercial banks saw slight increases from the day before. Vietcombank listed its buying/selling rates at 22,770 VND/22,840 VND per USD, re- spectively, both up 30 VND. The buying rate at BIDV was revised up by 55 VND to 22,765 VND and the selling rate

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was increased by 25 VND to 22,835 VND per USD. Techcombank listed its buying rate at 22,720 VND, up 20 VND, and the selling rate at 22,850 VND per USD, up 10 VND.

G-bonds set record in 02/MAR/2017 INTELLASIA | THE SAIGON TIMES 2016 VND281.75 trillion worth of G-bonds was sold in 2016, meeting 98.3 percent of the plan, with 91 percent of this volume having a term of five years or longer. The above figures were published by the Ministry of Finance at a press meeting on "the bond market in 2016 and orientations for development in the coming years" held in Hanoi on February 28. With such results, the target of 70 percent of the issued volume having a term of five years or longer set by the National Assembly was beat. Also, for the first time, G-bonds with a 30-year maturity were successfully launched to foreign investors in 2016. After restructuring, the G-bond portfolio displayed a remarkable improvement in

FINANCE terms of size, maturity and cost, the finance ministry said. Specifically, G-bonds stood at 27.3 percent of GDP last year, versus 16.2 percent in 2015. The average term of the bonds sold was 8.71 years, 1.73 years longer than in 2015, which extended the average maturity of the government debt portfolio by the end of 2016 to 5.98 years, up 1.54 years against late 2015. The average coupon was 6.49 per- cent, down 22 to 50 basis points across the board. Investors' appetite underwent a positive change with a rise in the holding of long-term bonds such as social insurance, deposit insurance and bonds issued by insurers (from 23 percent in 2015 to 44.6 percent in 2016), while the holding of bonds launched by banks dipped (from 77 percent to 55.4 percent). On the secondary market, the trading volume sharply surged against 2015, reaching VND6.3 trillion per session on average, up 72 percent compared to the preceding year, contributing to the significant improvement of the market liquidity. Bonds guaranteed by the government and local G-bonds in 2016 basically met the re- quirements for capital mobilisation of policy banks to carry out the credit programmes initiated by the State and local authorities targeting the essential and urgent projects. However, the finance ministry did not reveal the specific figures. As for corporate bonds, the volume sold last year was more than VND129.63 trillion, a spectacular increase of 203.1 percent from 2015, said the ministry. Despite the above results, bond markets remain small, accounting for 36.9 percent of GDP. The corporate bond market is underdeveloped, representing only 5.27 percent of GDP by the end of last year, and enterprises are still mainly raising capital from banks, said the ministry. http://english.thesaigontimes.vn/52608/G-bonds-set-record-in-2016.html

Assets of credit 02/MAR/2017 INTELLASIA | VNS institutions rise 16pct The total assets of Vietnamese credit institutions rose more than 16 per cent by Decem- in 2016 ber 2016 to VN8.5 quadrillion (US$374 billion), when compared with early 2016, the State Bank of Vit Nam reported. According to the report, assets of all kinds of credit institutions in September rose, of which finance companies posted the highest growth of 30 per cent in the year to VN114.37 trillion. The central bank attributed the rise in the assets of the finance com- panies to an acceleration in consumer lending and the establishment of many finance companies last year. State-owned commercial banks and joint stock commercial banks both reported a growth of 17 per cent in assets to VN3.86 quadrillion and VN3.42 quadrillion. Assets of joint venture and foreign banks in the year also rose nearly 10 per cent to VN828.322 trillion. However, among the total assets, State-owned commercial banks accounted for the largest amount with more than 45 per cent. Joint stock commercial banks followed with more than 40 per cent.

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Besides assets, the charter capital of all credit institutions also rose more than 6 per cent to VN488.4 trillion. By the end of 2016, the capital adequacy ratio (CAR) of State-owned banks was under 10 per cent while the rate of joint stock commercial banks was 11.8 per cent. Joint ven- ture and foreign banks had the highest CAR at 33 per cent. The ratio regulated by the central bank is 9 per cent. The ratio of short-term funds used for medium- and long-term loans of the entire cred- it institution system was nearly 35 per cent on average, of which the ratio at State- owned commercial banks was 37 per cent, joint stock commercial banks was 40 per cent and finance companies was 45 per cent. http://vietnamnews.vn/economy/371923/assets-of-credit-institutions-rose-16-in- 2016.html

Maritime event to take 02/MAR/2017 INTELLASIA | VNS

FINANCE place this month The sixth edition of INMEX Vietnam, a marine and offshore exhibition, will open its doors to the maritime community at the Saigon Exhibition and Convention Centre, HCM City from March 29 to 31. This year, the event features some 300 exhibitors from , Germany, Holland, Ko- rea, Norway, , the UK, the US, and others. INMEX Vietnam has established itself as the premier maritime event for industry play- ers and leading brands to showcase their latest products, services and technology. Visitors can find out more information and pre-register on the INMEX Vietnam web- site to get free lunch coupons and wine. 4 http://bizhub.vn/events/maritime-event-to-take-place-this-month_284482.html

Bao Viet signs 02/MAR/2017 INTELLASIA | VNS cooperation Bao Viet Insurance Corporation (Bao Viet) and the Southeast Asia Commercial Joint agreement with Stock Bank (SeABank) signed a comprehensive cooperation agreement in Hanoi on SeABank Monday. Leaders of the bank and the corporation said the agreement, which was signed by Vi- etnam's two leading financial and insurance institutions, aimed at strengthening the partnership and making the most of the two parties' advantages, experience and pro- fessional capacity. Under the agreement, the two sides will carry out insurance partnership programmes, prioritising the use their products among customers while enhancing cross-selling products and services and developing cooperation in marketing. Also under the deal, the firms will soon introduce SeACar Care, an integrated package comprising of SeaBank's lending services applicable for auto products, along with Bao Viet's insurance services to provide customers with a new financing insurance solu- tion. In 2016, Bo Vit saw a growth rate of above 12 per cent against the previous year. Its 2016 revenue was estimated to reach VND6.8 trillion (US$297 million), accounting for nearly 20 per cent of the total insurance market share. SeABank is currently a strategic partner providing financial, banking and lending services for many leading auto brands, such as Mercedes-Benz, Thaco Truong Hai, Hy- undai Thanh Cong and Kia, as well as Mazda and Toyota. http://bizhub.vn/banking/bao-viet-signs-cooperation-agreement-with- seabank_284471.html

Financial leasing 02/MAR/2017 INTELLASIA | VIR companies hard- Up to two thirds of domestic financial leasing companies operate at a loss and are rid- pressed for foreign dled with inefficiencies. capital BIDV breaks path for new trend The State Bank of Vietnam (SBV) have issued a document approving a transition of BIDV Financial Leasing Company. More specifically, it transferred from a subsidiary of Joint Stock Commercial Bank for Investment and Development of Vietnam to a joint

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venture company named BIDV- SuMi TRUST Leasing Limited Company with 49 per cent charter capital held by Sumitomo Mitsui (Sumitomo Mitsui Trust Bank - SMTB) and 1 per cent capital held by Sun Group. Being one of the four largest leasing companies in the market but BIDV Leasing Com- pany's performance has not been positive recently. Therefore, the participation of SMTB -- the largest trust bank -- is expected to turn the company up-side down in terms of capital, customer base, experience, and business operation. The parties signed a cooperation agreement in financial leasing in 2016. According to this agreement, BIDV will transfer 49 per cent of the chartered capital of BIDV Finan- cial Leasing Company to SMTB, renaming it BIDV-SuMi TRUST Leasing Limited Company. At the same time, the company's chartered capital will increase from VND448 to 896 billion ($19.6 to 39 million). This will turn BIDV Financial Leasing Company into the second largest financial leasing company in the market. After the successful capital transfer, BIDV-SuMi TRUST Leasing Limited Company will be the first joint venture company between a domestic commercial bank and a for- FINANCE eign financial institution. There is a chance that other financial leasing companies would follow BIDV-SuMi TRUST Leasing Limited Company's model to increase their capital and restructure themselves. This trend has been used by some financial companies with relative suc- cess. Banking specialists believed that with tight capital and limited operations, cooperation with foreign institutions would be the best way for these companies to recover. Dr Dang Thanh Dan from Ho Chi Minh University of Banking stated that cooperation will help financial companies strengthen their financial capacity, as well as help them gath- er experience and competitive advantages. Transform or go bankrupt Financial companies and financial leasing companies have been in the focus of restruc- turing efforts at the State Bank of Vietnam in recent years. Nguyen Van Hung, deputy chief inspector, said that the SBV will classify them to propose restructuring plans for each specific type. According to SBV statistics, there are 11 financial leasing compa- nies, including three ones wholly-owned by foreign institutions, seven wholly-owned subsidiaries of domestic commercial banks, and Vinashin Financial Company. Two thirds of financial leasing companies are operating with deficit, shouldering a high proportion of bad debts and low capital adequacy rate. One of financial leasing companies is on the verge of bankruptcy. VietinBank Leasing is one of the few finan- cial leasing companies which operate effectively. Pham Ngoc Long, general director of VietinBank Leasing, said that the company's 2016 pre-tax profit was more than VND107.6 billion ($4.7 million), while its total assets and liabilities reached VND1.930 trillion ($84.5 million), increasing by 15 per cent on-year. Bad debts were only 1.87 per cent. One of the factors blamed for the inefficient operation of financial leasing companies is their small scale. Eight out of 11 financial leasing companies on the market have a chartered capital from VND200 to 300 billion ($8.7-13 million). The three companies with chartered capital above VND500 billion ($21.9 million) are Chailease (VND580 billion, $25.4 million), Vietcombank Leasing (VND500 billion, $21.9 million), and Viet- inbank Leasing (VND1 trillion, $43.8 million). After the capital assignment for SMTB, BIDV will be in the second position with approximately VND900 billion ($39.4 mil- lion). In addition to their small scale, financial leasing companies are confronted by a lack of capital due to high interest rates and low credit limit to lend to customers. As a result, banking specialists believe that SBV should encourage capital assignments with for- eign institutions and issue suitable legislation for these companies. The development of this model will allocate and utilise capital more effectively as well as support small and medium-size enterprises better. http://english.vov.vn/economy/financial-leasing-companies-hardpressed-for-foreign- capital-344527.vov

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Vietnam's PMI 02/MAR/2017 INTELLASIA | NDH reaches 54.2 points in On March 1, Nikkei announced Vietnam Manufacturing Purchasing managers' Index March 2017 or PMI which rose to a 21-month high of 54.2 points in February compared to 51.9 points in January. Nikkei said Vietnam's business conditions have strongly improved since May 2015. The health of the manufacturing sector has been enhanced during the last 15 months. Specifically, Vietnam's manufacturing sector regained growth momentum in February with productivity and quantity of new orders to swell faster and companies increased inventories at record high speed. Meanwhile, the level of business optimism has been significantly improved. The input price growth rate has slowed down slightly but the recent sharp increase in cost burden has made companies to raise output price faster. Manufacturing sector's input hiked for the fourth consecutive month when there are reports showing that the number of new orders increased. Moreover, the output growth has been faster. The output increased in the areas of consumer goods, interme-

FINANCE diate goods and basic investment goods. The total number of new orders rose faster in February with the strongest growth rate since May 2015. The number of new export orders also increased more rapidly in the month as companies reported improved demand from international customers. The increased number of new orders results in the backlog to swell for the second con- secutive month. However, the growth rate was modest and was slower than in Janu- ary. The increase of new orders also helped improve the number of jobs in February. The latest increase was stronger and faster than the average in the long term. The number of employees inched up over the last 11 months. The optimism in business significantly improved and reached a high level in a year. The optimism was based on the company's development plan along with the expecta- tion that customers' demand continued to rise. This optimism was reflected in the at- titude of manufacturers for inventory policy in February. Purchased item inventory rose at the fastest pace in the survey history i.e. six years amid goods purchases were strong and fast. Inventories of finished goods also rose at the fastest pace since May 2015 in the context of stronger growth in output. Increased input costs remained substantial in February, despite having slowed down slightly compared to early 2017. Members of survey team said rising raw materials and falling price of dong against US dollar have increased the price of imported goods. In order to cope with rising input costs, companies raised output prices and the increase was the largest in three months. Commenting on the survey data about Vietnam's PMI, the survey result collector Markit said: "Some aspects in the report about the latest PMI of Vietnam show that the manufacturing sector's health has improved at the highest level since May 2015. The increase in the number of new orders was faster, thereby supporting faster productiv- ity growth. Meanwhile, the optimism about the prospects in one coming year has led to increased purchased goods inventory while the number of new orders and purchas- ing activity put pressure on productivity on both manufacturers and their suppliers". The survey team hopes that this may lead to the increase in hiring employees in the upcoming months when companies adjust their operational capacity to suit the work- load to be performed. The health of the manufacturing sector will have to create thrust for the entire economy.

Official: Vietnam's 02/MAR/2017 INTELLASIA | VNA initiatives help Apec The Asia-Pacific Economic Cooperation (Apec) Forum should have a long-term vision keep right track and Vietnam has put forth various initiatives to help the forum keep its right track, an Apec official said on March 1. Dr Alan Bollard, Executive director of the Apec Secretariat, made the remarks at a press conference which was held on the threshold of the first Apec Senior Officials Meeting (SOM1) in city, central Khanh Hoa province. During the conference, Dr Bollard and Dr Denis Hew, director of the Apec Policy Sup- port Unit (PSU), shared the views on the context for SOM1 and discussed the outlook

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for policy collaboration between Vietnam and other Apec economies. Dr Bollard said the Apec committees and working groups have just finished almost 60 technical meetings on a wide range of fields, including trade, investment and policy, and SOM1 will make a final decision on Vietnam's proposed priorities for Apec Year 2017. He told the participants that Vietnam has proposed four priorities: promoting sustain- able, innovative and inclusive growth; deepening regional economic integration; strengthening micro-, small- and medium-sized enterprises (MSMEs)' competitive- ness and innovation in the digital age; and enhancing food security and sustainable ag- riculture in response to climate change. Regarding the host country's preparations for the SOM1 and related meetings, Dr Bol- lard stressed that Vietnam has made great efforts to organise these events. With 21 members, including both developed and developing economies, Vietnam has spent a lot of time discussing issues of concern raised by Apec members, he said. On Vietnam's proposed priorities, including the assistance to MSMEs, PSU director Dr FINANCE Hew noted Apec has carried out many programmes to support MSMEs and this year, Apec is planning to continue helping these enterprises gain easier access to technology and markets. Apec will also assist MSMEs by promoting trade and policy reform through opera- tions of Apec working groups and committees such as the Committee on Trade and Investment (CTI) and the Economic Committee (EC), he added. As scheduled, the SOM1 will convene in Nha Trang on March 2-3, where senior offi- cials from the Apec member economies will decide on Vietnam's proposals and con- sider the outcomes of committees' and working groups' meetings. The Apec forum includes 21 members - , , Canada, , China, (China), Indonesia, , the Republic of Korea, , , New Zea- land, , , the , , Singapore, , , the US and Vietnam. http://en.vietnamplus.vn/official-vietnams-initiatives-help-apec-keep-right-track/ 108014.vnp

Official: Vietnam 02/MAR/2017 INTELLASIA | VIR makes practical The first Apec Senior Officials Meeting (SOM1) and related meetings in Nha Trang are contributions to Apec of significance, opening the Apec Vietnam 2017 and kick-starting preparations for the issues Apec Economic Leaders' Week scheduled for city in November, a high-rank- ing official has said. In an exclusive interview granted to the Vietnam News Agency (VNA), Permanent deputy Foreign minister, Apec 2017 SOM Chair Bui Thanh Son said as many as 60 events of Apec committees, working groups and sub-committees were held within the framework of SOM1 and related meetings, covering a range of fields such as trade and investment, business facilitation, services, tourism, food security, seas and oceans, re- sponse to climate change, standards and conformance, healthcare, life science and in- novation and anti-corruption. In the context that the regional and world situation has witnessed profound changes; the world economy and global trade have seen slower-than-expected growth; and populism and protectionism have posed challenges to the globalisation results, the outcomes of SOM1 are crucial to Apec cooperation orientations throughout the year and contribute to the deployment of the Apec 2017 theme of "Creating new dynamism, fostering a shared future", promoting trade and investment liberalisation, strengthen- ing regional economic connectivity and generating a new momentum for the growth in Asia -- Pacific and each regional economy, Son elaborated. Regarding Vietnam's proposed priorities for Apec 2017, Son said the Apec members supported and reached high consensus on the four priorities, namely promoting sus- tainable, innovative and inclusive growth; deepening regional economic integration; strengthening micro-, small- and medium-sized enterprises (MSMEs)' competitive- ness and innovation in the digital age; and enhancing food security and sustainable ag-

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riculture in response to climate change. At the meetings, workshops and dialogues, delegates enthusiastically discussed and proposed initiatives as well as practical and specific measures to carry out the AEPC 2017 priorities. These initiatives and measures will be submitted to SOM1 for consid- eration and approval. According to the deputy minister, Apec members also proposed projects and pro- grammes on enhancing capacity to create favourable conditions for the members, es- pecially developing economies, participate in and take full advantage of Apec cooperation opportunities. In the freshly-ended meetings, Vietnam's delegation comprising of officials from rele- vant ministries, sectors and agencies, actively joined in and made practical contribu- tions to regional issues of common concern such as promoting regional economic connectivity, creating optimal conditions for micro-, small- and medium-sized enter- prises (MSMEs) to expand business, investment and participate in the global value chains, and developing human resources. FINANCE The Vietnamese delegates deliberated practical issues closely connected to the lives of people and localities, including disease prevention and control, food hygiene and safe- ty, at the Health Working Group (HWG) Meeting. They also shared experience and measures in response to natural disasters at the Emergency Preparedness Working Group (EPWG) Meeting. Leaders, officials, businesspeople and people of Khanh Hoa province have actively joined in preparing for the meetings and taken this occasion to promote economic, in- vestment and tourism potentials of Nha Trang city, Khanh Hoa province and the south central region as well. In regard to Vietnam's preparations, Son said the hosting of the Apec Year 2017 is the focus in the country's foreign policy from now to 2020. Based on Vietnam's improved position and strength after 30 years of reform and international integration and its ex- perience in organising international events, since late 2014, ministries, sectors and lo- calities, especially the Ministry for Foreign Affairs, have actively made preparations with the hope of ensuring the success of the Apec Year 2017 in all aspects. Vietnam has coordinated closely with international organisations and research insti- tutes to timely grasp the region and world's common trends and issues of interest. The country has also conducted consultations with other Apec members to ensure that the outcomes of the Apec Year 2017 will benefit people and businesses in all Apec econo- mies. Vietnam has accumulated experience in hosting events of Apec committees and work- ing groups by attending Apec activities in 2015 and 2016. The hosting of the Apec Year 2017 has offered a valuable chance for staff in charge of multilateral cooperation to im- prove their qualifications to serve the country's international integration in the new pe- riod. The successful hosting of SOM1 and related meetings will lay a firm foundation for the implementation of following activities within the framework of the Apec Year 2017 and at the same time, leave a good impression on international delegates and friends about Nha Trang city and a beautiful, hospitable, dynamic Vietnam -- an attractive destination for foreign investors and tourists, Son concluded. http://www.vir.com.vn/official-vietnam-makes-practical-contributions-to-apec-is- sues.html

All preparations done 02/MAR/2017 INTELLASIA | VIR for first Apec Senior All necessary preparations for the first Apec Senior Officials Meeting (SOM1) have Officials Meeting been completed after the SOM Steering Committee on ECOTECH (SCE), the SOM Friends of the Chair (FoTC) on Connectivity and the Policy Support Unit (PSU) con- cluded their final meetings on March 1. As the first event with the attendance of Apec senior officials, the FoTC meeting up- dated the progress of implementing initiatives to deploy the Apec Connectivity Blue- print. The delegates also discussed the implementation of the long-term plan on

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infrastructure investment and development as well as the Apec Services Competitive- ness Roadmap. In his opening speech, Vietnamese Permanent deputy Foreign minister, Apec 2017 Chair Bui Thanh Son stressed that enhancing connectivity will help create new dyna- mism for economic growth, promote inclusive development, strengthen regional eco- nomic links and bring Apec economies closer. Today, SCE heard a report on the Apec work plan presented by Executive director of the Apec Secretariat Alan Bollard. On this basis, the committee re-examined and made recommendations to the work plans in 2017 of its subordinate working groups. At its meeting, PSU re-examined the unit's operations in the past year and underway projects. In 2016, PSU conducted 18 publications and reports. A number of researches implemented by PSU focus on structural reform, regional economic trend, promoting digital trade to serve inclusive growth and industry support policy. Also on March 1, Executive director of the Apec Secretariat Alan Bollard held a meet- ing with the media to share the views on the context for SOM1 and discuss the outlook FINANCE for policy collaboration between Vietnam and other Apec economies. Vietnam's delegation continued making contributions to Apec activities by chairing the FoTC and PSU Meetings. On March 2, the most important event - SOM1 -- will begin its two-day gathering. http://www.vir.com.vn/all-preparations-done-for-first-apec-senior-officials-meet- ing.html

February trade deficit 02/MAR/2017 INTELLASIA | THE SAIGON TIMES put at $1.2 billion The general Statistical Office predicted Vietnam obtained export revenue of $13 billion in February but spent $14.2 billion on imports, resulting in a trade deficit of $1.2 billion. The deficit, according to the office, was due to a significant increase in imports to serve domestic production which normally surges after the Lunar New Year holiday. Do- mestic companies were responsible for a deficit of $2.12 billion in February while the foreign direct investment (FDI) sector generated a trade surplus of $925 million. According to the statistics office, Vietnam's February exports were up 28.6 percent against last year but down 9.4 percent against January due to lower outbound sales of major commodities, such as apparel which contracted 30.4 percent, footwear which shrank by 23 percent, vehicles and spare parts that were down by 25 percent; wood and wooden products which fell by 34.3 percent; and seafood which edged down by 18.8 percent. Imports in the month increased 39.2 percent compared to January, with growth of 49.6 percent for domestic companies and 33.1 percent for FDI firms, due to increasing im- ports of products like phones and components rising by 7.8 percent, steel products by 13.5 percent, textiles by 13.3 percent, and plastics by 12.9 percent. The nation earned a trade surplus of $1.15 billion in January, sending its trade deficit down to $50 million in the first two months of this year. Of that, domestic firms suf- fered a trade deficit of $3.48 billion while FDI enterprises gained a trade surplus of $3.43 billion. Particularly, export revenue in the two-month period was estimated at $27.34 billion, while imports reached $27.38 billion. China remained the top supplier of Vietnam with $8 billion worth of commodities in the first two month of the year, up 23.8 percent year-on-year. came second with $5.6 billion, up 35 percent. Imports from Asean countries reached $3.6 billion, up 11 percent; from Japan at $2 bil- lion, down 0.2 percent; from the European Union $1.7 billion, up 24.6 percent; and from the US some $1.4 billion, down 31.4 percent. Meanwhile, the US has remained Vietnam's biggest importer with $6 billion worth of products in the past two months, up 18.9 percent against last year. The EU came next with $5.4 billion, up 132 percent, China with $3.3 billion, up 36.4 percent, Asean with $2.9 billion, up 15.9 percent, Japan with $2.3 billion, up 15.3 percent, and Korea with $1.9 billion, up 31.9 percent. HCM City exports rise 12 percent in first two months

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HCM City saw its total export turnover in the first two months of 2017 reach $4.8 bil- lion, up 11.7 percent over the same period last year. According to a report on the socio-economic conditions delivered at a meeting of the HCM City government on Monday, February's exports increased 24.3 percent against January. From the beginning of the year, exports to some countries increased sharply. Exports to Germany rose nearly 153 percent, Australia nearly 97 percent, South Korea some 45 percent, the US 40 percent, and the Philippines nearly 40 percent. Meanwhile, imports from some markets also increased steeply, at 130 percent from It- aly, 62 percent from the US, over 38 percent from Hong Kong, and nearly 28 percent from Malaysia. The city mainly imports equipment and materials for domestic pro- duction. http://english.thesaigontimes.vn/52621/February-trade-deficit-put-at-US$12 bil- lion.html FINANCE Industrial production 02/MAR/2017 INTELLASIA | VNA index sees low The national index of industrial production (IIP) rose by 2.4 percent year-on-year in the increase first two months of 2017, according to the latest report of the general Statistical Office. The electricity production and distribution saw a growth of 9.3 percent while process- ing and manufacturing sector registered a 6.6 percent increase. The water supply and waste treatment sector also expanded by 6.6 percent, but the mining industry suffered a strong drop of 13.5 percent. Several main industrial products achieved good growth, such as rolled steel (35.4 per- cent), television (16.7 percent), automobiles (15.2 percent) and apparels (14.3 percent). Products that saw reductions in output included artificial fiber (1 percent), coal (6.3 percent) and liquefied petroleum gas (LPG) by 8.5 percent. In the reviewed period, several localities with large-scale industrial production report- ed growth, such as Hai Phong (17.2 percent), Thai Nguyen (10.1 percent), Da Nang (9.6 percent), Hai Duong (9.4 percent), Binh Duong and Dong Nai 5.9 percent, HCM City 5.8 percent, Hanoi 5.1 percent and Can Tho 4.9 percent. The inventory index of the manufacturing and processing sector as of February 1 in- creased by 13.3 percent from the same period last year. Some sectors with surges in in- ventory index included paper and paper-products with a 106.9 percent rise, beverage 66.6 percent; electronic products, computers and optical products 61.3 percent, and non-ferrous mineral products by 43.7 percent. As of February 1, the number of workers at industrial enterprises rose 2.5 percent from one year ago. The private sector saw a 1 percent expansion in its workforce, the for- eign-invested sector reported a 4.4 percent growth, while the state-owned sector saw its workforce shrink 1.9 percent. http://en.vietnamplus.vn/industrial-production-index-sees-low-increase/108031.vnp

PM repeats request for 02/MAR/2017 INTELLASIA | VNA strong actions to reach Prime minister Nguyen Xuan Phuc urged government members to take drastic meas- 6.7pct growth rate ures to attain the targeted growth rate of 6.7 percent this year at the Cabinet's February meeting in Hanoi on March 1. Although Vietnam's economy has maintained good growth, no foreign organisations have forecast 6.7-percent growth for the country in 2017, showing the challenge facing the government, he said. He noted the stable macro-economy, 2.2 billion USD of foreign direct investment, an increase in the number of new businesses, and controlled inflation with consumer price index expansion of 0.23 percent in February as positive signs. However, the international situation remains volatile with protectionism resurgence and increasing prices of crude oil and basic materials. He asked government members to assess the domestic and global situation to make appropriate moves to promote growth, macro-economic stability, and the economy's competitiveness.

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Solutions should be devised to address problems like low agricultural product prices in the domestic market and low labour productivity, especially in agriculture and rural areas. PM Phuc told authorities at all levels to pay attention to material prices and USD in- terest rates to keep inflation below 4 percent this year -- a target that, according to for- eign experts, will not be easy to realise. Therefore, close coordination among ministries and sectors, and appropriate solutions are necessary, he added. He applauded central and local agencies which immediately got down to business af- ter the week-long Lunar New Year holiday. During the morning session, the government discussed law-making issues with a draft revised law on public debt management the first to be tabled. http://en.vietnamplus.vn/pm-repeats-request-for-strong-actions-to-reach-67percent- growth-rate/107998.vnp FINANCE Vietnam to suspend 02/MAR/2017 INTELLASIA | VNA imports of five Vietnam is to suspend import of five agricultural commodities from India, which are agricultural peanuts, cassia alata seeds, cocoa seeds, French bean seeds and tamarind from India commodities from due to the high risk of them containing insects. India The decision was made by Ministry of Agriculture and Rural Development on March 1 as it found that the products are likely to be contaminated with the insect Caryedon serratus Olivier which is subject to Vietnam's plant quarantine. The suspension will take effect after 60 days since March 1. The ministry assigned the Plant Protection Department to closely supervise the import of the above-mentioned products during the time pending enforcement of the deci- sion. It will also notify Indian relevant agencies of the issue for thorough remedies. The Plant Protection Department is responsible for examining, verifying and reporting India's solutions to the Ministry. http://en.vietnamplus.vn/vietnam-to-suspend-imports-of-five-agricultural-commodi- ties-from-india/108028.vnp

Retail sales, service 02/MAR/2017 INTELLASIA | VNS revenue increase over Hanoi's retail and service revenue in the first two months of 2017 amounted to 7 per cent VND365 trillion (US$16.4 billion), an increase of 7.1 per cent from the same period last year, according to the Hanoi Statistics Office. In February alone, the figure was VND179 trillion, down 3.9 per cent from January. According to the department, Hanoi's consumer price index in February increased slightly against the previous month, citing that prices this year changed little due to the early opening of supermarkets and commercial centres, which stopped the typical post-Tet scarcity of goods. The department said that more and more Vietnamese goods are on sale in supermar- kets and commercial centres. In terms of exports, Hanoi's export value in the first two months of 2017 was $1.6 bil- lion, up 13.1 per cent. The industrial production index for the two months posted a year-on-year increase of 5.1 per cent, the department added. http://bizhub.vn/news/retail-sales-service-revenue-increase-over-7-per- cent_284475.html

Seafood export value 02/MAR/2017 INTELLASIA | VNA estimated at 844 The value of seafood exports in the first two months of 2017 was estimated at 844 mil- million USD early lion USD, representing a year-on-year decline of 3.1 percent, according to the Ministry 2017 of Agriculture and Rural Development (MARD). In February, the export value was 351 million USD. In the two months, Vietnam imported seafood worth 196 million USD, an increase of

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19.1 percent from 2016. Seafood import value in February was 99 million USD. According to the MARD, seafood output in the first two months was 389,000 tonnes, up 1.5 percent, with tuna and anchovy producing the highest output. http://en.vietnamplus.vn/seafood-export-value-estimated-at-844 million-usd-early- 2017/108002.vnp

February price index 02/MAR/2017 INTELLASIA | VIETNAMPLUS in HCM City up 0.5pct The Consumer Price Index (CPI) in HCM City increased by 0.5 percent on a monthly basis in February. The HCM City's Statistics Office said on February 28 that compared to the same period last year, the February CPI has grown 5.79 percent. Among 11 categories in the commodity basket, nine saw price increases from January. The biggest increase (0.97 percent) was seen in the group of cultural, entertainment and tourism products.

FINANCE Meanwhile, post and telecom prices were down by 0.16 percent, and education goods stayed stable in the month. In the same period, gold prices in the city gained 1.42 percent, and that of US dollar dropped by 0.54 percent from January. The national CPI in February also went up 0.23 percent month-on-month and 5.02 per- cent year-on-year./. http://en.vietnamplus.vn/february-price-index-in-hcm-city-up-05-percent/107983.vnp

CPI up 0.23pct in 02/MAR/2017 INTELLASIA | THE SAIGON TIMES February The consumer price index (CPI) in February picked up 0.23 percent against the previ- ous month as seven of 11 groups of items in the basket of commodities used for CPI calculation have marked up. Data of the general Statistical Office shows the group of housing, electricity, water, and construction materials recorded the highest rise of 0.77 percent against a month earlier, instead of the usual group of food and eating-out service after the previous Lunar New Year holiday (or Tet). This was due to a cooking gas price hike of VND28,000 (US$1.2) per 12-kilo container. Besides, hot weather drove up the demand for electricity and water. The transport group picked up 0.56 percent month-on-month as fuel and fare prices were adjusted up following the fuel price and passenger transport charge rises in the post-Tet travel season. A high-weighted group in the commodity basket being food and catering services saw a mere increase of 0.11 percent, with foodstuffs up 0.25 percent, eating out up 1.02 per- cent and food down 0.28 percent. The remaining groups were medicine and health care with an increase of 0.22 percent; culture, entertainment and tourism 0.15 percent; other goods and services 0.14 percent; and household appliances and goods 0.05 percent. Meanwhile, three groups of goods registered price falls, including beverages and cig- arettes 0.01 percent; apparel, headwear and footwear 0.05 percent; and postal services and telecommunication 0.07 percent. The education group remained unchanged. Overall, last month's CPI inched up 0.23 percent over January and 5.02 percent year- on-year. CPI in the first two months had expanded 5.12 percent compared to the same period last year. Core inflation based on the CPI excluding food and foodstuff, energy and commodi- ties managed by the State including healthcare services and education had grown 0.2 percent against January and 1.51 percent year-on-year. The CPI in cities had been higher than in rural areas, with respective rises of 0.32 per- cent and 0.16 percent. All provinces and cities had experienced mild price increases. Most localities had seen their CPI below the country's level while consumer prices in HCM City and Can Tho

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had surged above the country's average, rising over 0.5 percent against January. Vietnam's total retail sales of goods and services last month amounted to an estimated VND309.3 trillion (US$13.5 billion), down 6.5 percent against a month earlier and up 7.2 percent over the same period last year. The figure for the first two months of this year was forecast at VND640 trillion (US$20.1 billion), a year-on-year rise of 8.7 percent. If the inflation factor was excluded, the growth would be 5.6 percent, way below 7.6 percent last year. http://english.thesaigontimes.vn/52601/CPI-up-023-in-February.html

VCCI points out best 02/MAR/2017 INTELLASIA | THE SAIGON TIMES and worst regulations The Vietnam Chamber of Commerce and Industry (VCCI) on February 28 announced a list of the 30 best and 30 worst business regulations based on a survey of enterprises. Launched in December 2015, the survey found a total of 60 best and worst business regulations compared to 20 regulations planned previously. VCCI picked the 60 best

FINANCE and worst regulations from more than 9,200 suggestions for relevant legal documents and laws. Dau Anh Tuan, head of the Legal Department at VCCI, said the organisation was un- der pressure when compiling the final list from the suggestions. "We neither attack an- yone nor criticise any agency. We want to reflect how businesses look at regulations." Economic expert Pham Chi Lan said that despite objections, the fact that VCCI was able to announce the list showed a change of mindset on the part of State agencies as they had accepted comments on what are classified as good and bad rules. Lan suggested VCCI only sort out the worst regulations to make the final list shorter. She added the National Assembly, the government, ministries and agencies should is- sue viable regulations as "this is their task and responsibility." VCCI stressed the worst regulations were listed at random. They include Term 2 of Ar- ticle 26 in the law on trade unions which regulates firms to make financial contribu- tions equivalent to 2 percent of their salary funds to the unions as a basis for social insurance payments for employees. VCCI explained trade unions represent the rights of employees, not employers, so it is not rational when employers are told to contribute financially to the unions to sustain their operations. On top of that, 2 percent of total salary funds is high, especially for firms which have large numbers of workers, and increasing other fees have also weighed on businesses. The purpose of the Ministry of Industry and Trade's Circular 20/2011 imposing condi- tions on importers of nine-seat cars or smaller vehicles is seen as unclear, affecting the legitimate trading rights of importers and sparking unhealthy competition on the do- mestic market. The regulation is said to force local consumers to buy imported cars at higher prices than those they should enjoy, and give the privilege to certain importers. It is hard to enforce a regulation in Circular 57/2015 of the Ministry of Public Security requiring fire extinguishers to be equipped on automobiles as owners said the equip- ment might explode when their cars are parked under direct sunlight. A report of VCCI said the total social cost of 3.5 million cars in operation in Vietnam would be much higher than the benefit they got if all have the fire extinguishers. Other worst regulations are the Ministry of Science and Technology's Circular 15/2015 requiring the approval of producers, importers and suppliers of equipment for the re- pair of fuel measurement tools at gas stations, and a rule forcing firms to obtain busi- ness certificates for their indirect cash payments. It is not reasonable if wholly foreign- owned companies and firms with foreign ownership of more than 51 percent are not allowed to use their own vehicles to transport goods but must hire vehicles of other businesses. A Ministry of Information and Communications regulation also costs leaders of print- ing enterprises dearly as they must have either graduated from the printing faculty at college or higher educational institution or obtained a printing certificate issued by the ministry. They must pay VND5 million each and complete a course on printing if they want to get the certificate.

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Nationwide economic 02/MAR/2017 INTELLASIA | VNA survey starts from The general Statistical Office (GSO) is conducting a nationwide economic survey from March 1 March 1 to evaluate the performance of economic and administrative units from grass- roots to central levels. The move aims to examine the efficiency of business operation, the application of in- formation and technology, and the structure of manufacturing agencies and distribu- tion of workers in each locality and economic sector, said director of the GSO Nguyen Bich Lam in a recent interview with Vietnam News Agency. The GSO will devise statistics criteria in 2016 -- the first year of the socio-economic development strategy through 2020 and the national gross domestic product and gross regional domestic product targets, and update a database on businesses. A new point of this year's survey is collecting data on foreign non-governmental or- ganisations in Vietnam to fully assess manufacturing activities of all economic organ- isations and individuals, he said.

FINANCE The agency will also use information from the taxation sector, the State treasury, and other State management agencies on health, education-training, culture-sports, and in- formation-communication as references. The survey will be carried out in two periods, with the first running from March 1 for businesses and administrative units, and the second from July 1 for individual manu- facturing facilities and religious organisations. The statistics sector will work with relevant ministries and sectors from central to local levels to carry out the vital economic inspection, Lam said. Basic information collected from the survey will reveal the operational efficiency of State-run and non-State enterprises as well as foreign-invested companies, small-and medium-sized enterprises, and cooperatives, he said. Additionally, data on how processing, manufacturing and assembling businesses ac- cess capital and new technologies will evaluate their competitiveness and economic in- tegration, he added. Such information is valuable to reflect the state of the economy in 2016, thus helping devise policies to boost economic growth, he noted. http://en.vietnamplus.vn/nationwide-economic-survey-starts-from-march-1/ 107994.vnp

Vietnam-India 02/MAR/2017 INTELLASIA | VNA economic cooperation Vietnam and India witnessed remarkable strides in their relations in 2016, especially grows strongly in economics, Vietnamese Ambassador to India Ton Sinh Thanh has said. He made the remark at a session within the framework of the fourth business conclave between India and four Asean countries, namely , , and Vi- etnam (CLMV), in Jaipur city, the Indian state of Rajasthan, on February 28. The diplomat said despites global economic downturns, Vietnam and India are still listed among the most dynamic economies. India is likely to enjoy higher economic growth in the coming years thanks to various renewal measures, including the "Make in India" and "Skill India" initiatives, goods and service taxation reforms, and new monetary policies, he said. Meanwhile, Vietnam is pushing ahead with the economic restructuring plan to im- prove infrastructure, human resources, and the business environment, he added. Vietnam always considers India a reliable friend and partner, he said, noting that dur- ing the historical visit to Vietnam by Indian prime minister Narendra Modi in 2016, the two countries elevated their relations to comprehensive strategic partnership and de- fined economics as a strategic cooperative field. Solid political rapport allowed Vietnam and India to boost trade, investment and tour- ism, he said. He noted that Vietnam highly valued the Indian government's $300 million credit package to promote bilateral trade activities. The Ambassador suggested both enact measures to realise two-way trade target of $15 billion in the future. He welcomed more Indian businesses to invest in Vietnam, espe-

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cially in renewable energy, oil and gas, and garment-textile. He hailed the Indian government for establishing a CLMV development fund to sup- port Indian firms having investment projects in Vietnam. The launch of the direct air route between Hanoi and New Delhi in July will make it easier for the two countries' people to travel around, he added. Official statistics showed that India ran a trade surplus of $2.5 billion with CLMV in 2014. Vietnam was the biggest importer of India among the four countries, accounting for 83.5 percent of India's goods exports to CLMV in 2015. India mainly exported fish, shrimps, cottons, automobiles, coffee, tea and spice to Vi- etnam while importing electric equipment, coffee, tea, and rubber from the market. Indian companies are investing in energy, mining, sugar and chemicals production, in- formation technology, and farm produce processing in Vietnam. http://english.vov.vn/economy/vietnamindia-economic-cooperation-grows-strongly- 344576.vov FINANCE Deputy PM wants 02/MAR/2017 INTELLASIA | VNS more international Deputy prime minister Vuong Dinh Hue has asked the Inter-Sectoral Steering Com- integration mittee for Economic Integration to improve studies and forecasts of integration devel- opments, especially negotiations of free trade agreements (FTAs), in order to devise appropriate policies. Issues which need to be addressed included impacts of trade protectionism in Asia-Pa- cific, the US' withdrawal from the Trans-Pacific Partnership (TPP), the focus of the Asean Economic Community (AEC), non-tariff barriers and trade facilitation in Asean and policy recommendations for Vietnam, Hue said at the steering committee's meet- ing on Tuesday. Hue added that trade with Middle East and African markets must be promoted in an effort to diversify export markets. In addition, Hue asked the steering committee to study trade defence policies to con- tribute to drafting the Law on Foreign Trade Management. Hue also stressed the importance of creating a favourable business and investment cli- mate for both domestic and foreign firms and enhancing the national competitiveness amid rapid international integration. He said that specialised checks on import and ex- port products were burdening firms, adding that those regulations must be amended. "Vietnam has integrated with the world with economic integration the focus. Co-ordi- nation among relevant agencies, local authorities and firms must be promoted to ac- celerate international integration," Hue said. According to the Multilateral Trade Policy Department under the Ministry of Industry and Trade, Vietnam made careful preparations in negotiating FTAs, thus, the country was benefiting significantly from the trade deals, such as the Vietnam -- Korea and Vietnam -- Chile FTAs. The department answered the deputy prime minister's question in September last year about exports of Vietnam to Asean falling despite the AEC already being formed. The department said that the capacity of Vietnamese firms in grasping opportunities from a single market remained low, adding that only 30 per cent of firms could take advantage from the single market. This was because domestic firms did not target Asean markets to expand exports, according to the department. In addition, trade barriers were increasing among Asean countries and firms needed support to overcome them, the department said. According to a government report to the National Assembly at the end of last year, to date, Vietnam has signed 12 bilateral and multilateral trade deals, 10 of which have come into force. The two yet to come into force are EU-Vietnam FTA and TPP with the former expected to take effect in 2018 while the later is uncertain after the US withdrawal. Four other FTAs are under negotiation, including the Regional Comprehensive Eco- nomic Partnership, Asean -- Hong Kong FTA, FTA with Israel and with European Free Trade Association.

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Real estate sees strong 02/MAR/2017 INTELLASIA | VNA interest from foreign, The real estate market in Vietnam has witnessed a burst of activity with interest from local investors both foreign and local investors. In the last quarter of 2016, one of the contractors for HCM City's first metro line, Mae- da, partnered with Thien Duc, a local developer, to develop a 30 million-USD high-end residential project, Waterine Suites, according to Savills Vietnam. The project is the first property investment by the Japan-based company after almost two decades in Vietnam. In the hotel sector, the global private equity investment firm, Warburg Pincus, joined hands with VinaCapital to build a 300 million-USD hotel, aiming to become a leading hospitality platform in Vietnam and South East Asia. Shortly after its foundation, the joint venture acquired a 50-percent stake in the Sofitel Legend Metropole Hanoi, a five-star hotel in the heart of the capital, from Vietnam Op- portunity Fund under VinaCapital, for approximately 100 million USD.

FINANCE Meanwhile, Dubai-based real estate developer Limitless, an affiliate of the Dubai World holding group, resumed work on the 550 million-USD project Ha Long Star in northern Vietnam. The project features about 2,000 villas, townhouses and apartments along with retail outlets, leisure facilities and hotels in Ha Long, Quang Ninh province, one of the most popular tourist destinations in the country. In central Vietnam, VinaCapital and its joint venture partners, Gold Yield Enterprises and Sun City Group, have begun construction of the 4 billion-USD project HOIANA, aiming to turn it into Vietnam's largest integrated resort. The first phase of the project, scheduled for completion in early 2019, features a 685-room New World Hotel, 100- key Rosewood Residences and Resort, Championship Golf Course and the largest ca- sino in Vietnam. CBRE Vietnam announced the launch of the CBRE Hotels Vietnam team earlier this year that offers hotel market research, consulting, valuation and capital markets serv- ices to meet increasing demand from hotel investors, developers, financiers and oth- ers. According to Savills Vietnam, Vietnam's economy is a highlight in South East Asia and the country's property market continues to show resilience, with consistent growth across different sectors despite the ups and downs of the global economy. Major real estate companies, especially local firms, are shifting their focus to low- to mid-end residential developments to attract more buyers, targeting the young work- force which accounts for the majority of the country's population. The trend is towards smaller units in locations with good accessibility, a full range of amenities, competitive pricing and favourable payment terms, the property services provider said. This market movement will to help the real estate sector in Vietnam continue its sus- tainable growth trend moving forward. http://english.vietnamnet.vn/fms/business/173639/real-estate-sees-strong-interest- from-foreign--local-investors.html

Vietnam's super-rich 02/MAR/2017 INTELLASIA | VNEXPRESS population is growing The country now has 200 people with investable assets of at least $30 million. faster than anywhere Vietnam's ultra-rich population is growing faster than any economy in the world, and else is on track to continue leading the growth in the next decade, based on a new interna- tional research. The Wealth Report by the UK's independent real estate consultancy Knight Frank found there are 200 ultra high net worth individuals (UHNWI) in Vietnam, who are defined as people with investable assets of at least $30 million, excluding personal as- sets and property such as a primary residence, collectibles and consumer durables. UHNWIs are the richest people in the world who control a disproportionate amount of global wealth. In Vietnam, this super rich group has grown by 320 percent between 2000 and 2006, the fastest in the world compared to India's 290 percent and China's 281 percent, the

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report said. The number is expected to continue rising to 540, or by 170 percent, in 2026, the highest growth rate in the world. Millionaires in Vietnam are expected Andrew Amoils, Head of Research at the global wealth intelligence and market research firm New World Wealth, highlighted Vietnam as the market whose "stellar" growth rate is set to rein- force "dramatic growth" of the super-rich population in Asia. "We expect Vietnam's millionaire numbers to be boosted by strong growth in the local healthcare, manufacturing and financial services sectors," Amoils was quoted in the re- port as saying. It also cited World Bank remarks as describing Vietnamese economy with "remarka- ble" transformation over the last 25 years, with economic and political reforms trans- lating into higher incomes. The bank has projected Vietnam's average GDP growth of around 6 percent annually until 2020. Knight Frank report reflects considerable variation between UHNWIs growth rates in different regions and countries, due to local factors that underpin wealth creation and FINANCE the mobility of ultra-wealthy people. The number of ultra-wealthy people is predicted to climb by an average of 12 percent over the next decade in Europe, compared with a forecast 91 percent growth in Asia. The number of ultra-wealthy people worldwide, which has grown 42 percent over the past decade, is expected to grow another 43 percent to 275,740 in 2020. to jump to 38,600 from 14,300 over the same period.

Automakers struggle 02/MAR/2017 INTELLASIA | VNEXPRESS to keep Vietnam Vietnam had the world's second fastest growing car market last year. production amid Automobile companies are forced to cut back production in Vietnam following lower Asean tariff cuts tariffs among Southeast Asian countries but said they would maintain operation in the country. Under a regional free trade agreement, tariffs on imported cars from countries in the Association of Southeast Asian Nations (Asean) has been cut to 30 percent this year from 40 percent previously, before being eliminated in 2018. The lower tariffs are putting great pressure on automakers in Vietnam, who are con- cerned over their competitiveness or even cannot survive amid rising inflows of im- ported cars, Dan Tri News quoted Toru Kinoshita, general director of Toyota Vietnam, as saying Tuesday at a meeting with the Ministry of Industry and Trade. Kinoshita said the company has scaled down production, focusing now on four mod- els rather than five in the past. The firm is considering further cuts to two or three mod- els and increase output of each model instead. A Ford Vietnam representative said the firm focus on production of one or two mod- els, which have good sales and can be exported. The lower import duty on Asean cars is threatening the Vietnamese automobile mar- ket, which has lagged behind Southeast Asian peers. Statistics by the International Organisation of Motor Vehicle Manufacturers showed Vietnam produced 50,000 cars in 2015, compared with more than 1.9 million in Thai- land, over one million in Indonesia and 614,000 in Malaysia. The production cost of a vehicle in Vietnam is 20 percent higher than that in neigh- bouring countries due to the scale of the market, which is only equivalent to one-fifth of Thailand or one-sixth of Indonesia, industry players said. Truong Thanh Hoai, a senior trade official, said the authorities were working on solu- tions to promote the automotive industry such as adjusting special consumption taxes on locally-assembled vehicles or strengthening technical berries on domestic markets. Last year, Vietnam ranked the world's second fastest growing car market after expand- ing 27 percent from 2015, according to a study by the UK-based market analysis firm JATO. The country sold a record 304,427 cars in 2016, up 24 percent from the previous year and nearly twice the number in 2009, based on industry reports.

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Wood product 02/MAR/2017 INTELLASIA | VNS exporters ready to The export of wood and wood products is expected to fetch $8 billion this year, up expand global market from $7.3 billion last year. share Huynh Van Hanh, deputy chair of the Handicraft and Wood Industry Association of HCM City (Hawa), said global demand for furniture will continue to increase, so the domestic industry can look forward to doing better. According to preliminary statistics compiled by the Centre for Industrial Studies (CSIL), global furniture consumption is worth more than $460 billion a year. Supply from Vietnam accounts for just 1.65 per cent of this figure, which means there is con- siderable room for Vietnamese firms to increase their market share. China is the world's largest supplier of wooden products, accounting for 37 per cent of the world's total consumption. But the Chinese government cut its overall timber harvesting quotas by nine per cent, equal to 40 million cubic metres of timber, opening up more opportunities for Viet-

FINANCE namese firms to boost their exports, Hanh said. In addition, a series of free trade agreements that the country has signed will offer greater export opportunities for domestic firms, he added. Nguyen Chien Thang, former Hawa chair and director of Scansia Pacific, said all Hawa members enjoyed good growth last year, with more and more foreign buyers coming to place orders. They have invested significantly in technologies to improve product quality and man- agement, and this has increasingly gained customers' trust, he said. "Previously, large customers, especially those from the US, had mainly bought prod- ucts from Taiwanese companies investing in Vietnam, but now more and more US cus- tomers are contacting Vietnamese producers. "This is a good sign," he said. Anticipating a good year for exports, many firms in Binh Duong and Dong Nai invest- ed in new facilities last year to expand production scale, Thang said, adding that his company is also building a new workshop. Cao Duy Tam, director of Vi Dai Co., Ltd, which specialises in supplying machinery, equipment and solutions for the wood processing industry, said sales increased by 50 per cent last year and is expected to be higher this year. Many businesses have invested in new technologies to improve their productivity and quality, solving the problem of labour shortage and getting ready to receive larger ex- port orders, he said. They have invested in automatic, high speed machines and even CNC (computer nu- meric control) machines, he added. Hanh said Vietnamese firms in the past years have accumulated valuable experiences in production, management and market access. In the coming time, the industry needs to access market at a national scale so that for- eign customers know "Vietnam is a nation producing wooden products from legal tim- ber sources," he said. VIFA-EXPO 2017 To further help Vietnamese firms market their products and explore business oppor- tunities, the association has collaborated with the HCM City Department of Industry and Trade and Hawa Corporation to organise the Vietnam International Furniture and Home Accessories Fair 2017 (VIFA-EXPO 2017) in HCM City from March 8-11. It has attracted 313 domestic and foreign exhibitors who will set up 1,532 booths, a cor- responding increase of 23 per cent and 24 per cent from last year, Hanh said. "The increase reflects the strong demand from wooden product manufacturers for trade promotion to boost exports," Hanh said. This year the number of foreign firms registering to join the fair has gone up by 72 per cent over last year, with 100 brands from 14 countries and territories including Singa- pore, , the US, Australia, Canada, China and Italy. The fair will display a wide range of export-oriented indoor and outdoor furniture, handicrafts, and interior furnishing and accessories.

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Hanh said 1,850 visitors from 94 countries and territories had registered as of February 28 to visit the fair. Held at the Sai Gon Exhibition and Convention Centre in District 7, the fair will also feature an awards ceremony for the Hoa Mai Prize, a furniture design competition, and a seminar on wood glue quality. http://bizhub.vn/news/wood-product-exporters-ready-to-expand-global-market- share_284487.html

Pharmaceutical M&A 02/MAR/2017 INTELLASIA | VIR on the horizon Vietnamese pharmaceutical market harbours immense potential, but domestic enter- prises are exploiting only half of this at best. To not lose ground on their home turf, domestic players may increase their scale and capacity through merger and acquisition in order to compete against foreign rivals. Room remains for more

FINANCE According to the Vietnam Pharmaceutical Companies Association, the pharmaceutical industry currently ranks number six among the highest earning industries in the world. Currently, worldwide drug usage is $1.2 trillion per year, 50 per cent ($615-645 billion) of which is patented drugs and these patents can last for 20 years. Meanwhile, off-patent drugs take up 30 per cent ($400-430 billion). Developed and de- veloping countries show a big difference in drug spending ($609 compared to $91). Vi- etnamese people currently spend very little, about $40 a year. Regarding growth, the global pharmaceutical market grows at a rate of 3-6 per cent per year, while the US market 1-4 per cent and developing countries 12-15 per cent. According to Associate Professor, Doctor Le Van Truyen, former deputy minister of Health, the winning factor of pharmaceutical companies is proving the benefits of their products and services. Nowadays the issue for companies in Vietnam is getting affordable medicine to all pa- tient groups. "Selling cheaper drugs to more people will be more profitable than selling expensive drugs to a small portion of patients," he said. The Vietnamese pharmaceutical market is one of the fastest growers in Asia and ranks 17th among the 175 countries in the world with the average growth rate of 17-20 per cent per year between 2010 and 2015. In 2017, the growth rate of this market is expected to be higher than 17 per cent. According to information released at the recent annual shareholders' meeting, Cuu Long Pharmaceutical, State Capital Investment Corporation (SCIC) and other partners are investing a total VND1 trillion ($47 million) in a facility to produce anti-cancer drugs. The construction of the facility is going to start by the end of 2017. The company said it had achieved agreement with parties regarding drug copyright and purchase of equipment. While waiting for the facility to be completed, the company will import the drugs and distribute in Vietnam. Each year Vietnam records an average 126,000 new cases of cancer and 94,000 deaths from cancer. Only for the six most popular types of cancer in Vietnam namely breast, liver, oral, cervical, stomach cancers, treatment expenses already reached VND26 tril- lion ($1.14 billion) in 2012. In Southeast Asia currently there is only one facility in Malaysia producing anti-cancer drugs. Cuu Long Pharmaceutical calculated that after its facility comes into operation, the price of anti-cancer drugs will be cut by 40 per cent compared to the current price. A growing trend Although the pharmaceutical market is considered to have a lot of potential, the cur- rent domestic drug production only meets 45 per cent of demand, while the rest must be imported. The value of imports is increasing by 16 per cent a year. This situation shows that money still mostly flows into the pocket of foreign pharmaceutical giants. Therefore, to not lose ground to foreign competitors, domestic players need to step up their game, inevitably stepping on the path of M&A. The M&A trend in the pharmaceutical industry is showing signs of warming up. The

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most recent action was in early 2017, when Cuu Long Pharmaceutical JSC signed a $7.5 million share purchase agreement with Euvipharm Pharmaceutical JSC from Valeant Pharmaceuticals International, Inc. This deal is expected to be completed within the first quarter, after which Cuu Long Pharmaceutical will own a 90 per cent stake in Eu- vipharm. Nguyen Van Sang, chair of Cuu Long Pharmaceutical, revealed that buying a control- ling share in Euvipharm will help the Vietnamese firm to increase production capacity and develop new medicines by taking advantage of Euvipharm's modern equipment in the southern province of Long An. Additionally, through this deal, Cuu Long Pharmaceutical can push their research and development to create new products, especially to treat cardiovascular diseases, can- cer, and diabetes. Euvipharm Pharmaceutical JSC currently owns a pharmaceutical production plant in Duc Hoa district in Long An Province, with the total investment capital of $17 million. The plant has a large production capacity for common medicines, including antibiotic FINANCE powder products, effervescent, and products that require a special production envi- ronment. Cuu Long Pharmaceutical owns three production plants that meet the GMP-WHO standard. The company supplies medicines, vitamins, medical instruments, syringes, and infusion lines, among others. This is the only unit in Vietnam that produces and supplies capsule products. The acquisition of Euvipharm is only a single affair, but in the future, many other M&A deals of a similar nature are expected, as domestic pharmaceuticals are looking to improve their competitive edge. http://english.vov.vn/trade/pharmaceutical-ma-on-the-horizon-344596.vov

Vietnam's small 02/MAR/2017 INTELLASIA | VIR businesses Vietnam's small businesses are among the fastest growing and most confident in the outperform regional region, according to new survey data released on March 2. counterparts The survey, released by global accounting firm CPA Australia, shows that 89 per cent of small businesses reported growth during the last 12 months and 94 per cent expect to grow in the next 12 months. The results also show that 86 per cent of small business- es expect the local Vietnamese economy to grow in the next 12 months. These very optimistic figures rank Vietnam second of the eight markets surveyed, be- hind only Indonesia and ahead of Malaysia, China, Hong Kong, Singapore, New Zea- land, and Australia. Across the region, the survey found that small businesses experiencing growth are sig- nificantly more likely to be focussing on innovation, e-commerce, social media, train- ing, and exporting. CPA Australia chief executive Alex Malley said small businesses in Vietnam had a strong focus on the drivers of growth. "The Vietnamese economy is growing and small businesses in Vietnam are increasing- ly becoming part of that growth story," he said. "Small businesses in Vietnam are out- ward facing, confident and optimistic. They demonstrate all the hallmarks of a growing sector." The reported growth and confidence are also reflected in employment figures with 54 per cent of small businesses saying they have increased employee numbers in the past year and a considerable 71 per cent expecting to increase in the next 12 months. "There is extraordinary potential for small businesses in Vietnam and I expect that we will see continued growth. It is possible that some of these businesses might grow into the large multinationals of the future," Malley said. Vietnam also performed well in terms of embracing the opportunities of the digital economy, with 86 per cent of respondents earning revenue from online sales and 92 per cent using social media for business purposes. The survey also showed an increase in the number of small businesses that expect to introduce a new product, service or process, with 31 per cent of businesses reporting

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such intentions, up from 26 per cent in the previous survey. "Given their importance to the Vietnamese economy, the government's policy settings are providing the environment needed for small businesses to thrive," Malley said. The CPA Australia Asia-Pacific Small Business survey provides annual insights into the views of small businesses and is conducted across eight markets in the region. This is the seventh year the research has been conducted. http://english.vov.vn/trade/vietnams-small-businesses-outperform-regional-counter- parts-344591.vov

The steps toward 02/MAR/2017 INTELLASIA | VIR 2025's logistics Vietnam has unveiled a new plan to transform the country into a regional logistics hub transformation by 2025. The new plan draws attention to the importance of logistics in Vietnam's positioning as an international trade hub

FINANCE Prime minister Nguyen Xuan Phuc recently sanctioned the action plan to enhance the competitiveness and development of Vietnam's logistics sector through 2025 in Deci- sion No.200/QD-TTg, dated February 14, 2017. The logistics sector is set to contribute between 8 and 10 per cent to Vietnam's gross domestic product (GDP), with annual growth of 15-20 per cent by 2025. The plan also aims to make Vietnam one of the world's 50 leading logistics services providers. To facilitate the targets, the plan recommended improving policies, attracting more in- vestment into infrastructure development, and cementing cooperation between local and foreign logistics firms. The country will develop leading logistics companies, which can be competitive in both domestic and international markets. Under the plan, Vietnam will boost connectivity with neighbouring countries while developing regional and international hubs. The plan calls for building Type I logistic hubs in Hanoi and HCM City, and Type II logistic centres in Lang Son, Lao Cai, Hai Phong, Danang, Quy Nhon, and Can Tho. The initiatives taken by the Vietnamese government to strengthen the logistics indus- try and increase efficiency have been strongly supported by industry insiders. Christoph Matthes, managing director of logistics firm DB Schenker in Vietnam, said, "We strongly support the plan as logistics has become more important than ever be- fore, not only in Vietnam but for the global economy. It is now a true backbone of to- day's globalisation." As well, Vietnamese consumers are increasingly demanding a faster and more reliable way of getting goods delivered. For many Vietnamese customers, logistics is no longer a matter of moving boxes from A to B, but creating a highly efficient and reliable supply chain enabling them to stay competitive in an ever-changing world. At the same time, international trade is growing rapidly for Vietnam -- and as a result there is a need to connect to other markets through excellent air freight, ocean freight, and road freight solutions. Some of the largest export markets for Vietnam include the Asean region and Europe, where Vietnam directly competes with other countries and logistics costs play a vital role. Trade with European countries is expected to increase with the EU-Vietnam Free Trade Agreement (EVFTA) coming into force in 2018. Steps need to be taken to prepare for a smooth implementation of the agreement and to make sure businesses can truly benefit as soon as the treaty comes into force. The commitment of the government to strengthen the logistics sector is an important step towards making this possible. According to Matthes, DB Schenker opened its doors in Vietnam more than 25 years ago and the company continues to invest in expanding its logistics business in the country.

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Recently the firm launched a new cross-border road service from Hanoi to Bangkok, made possible because of the improvement of the road transport network in Asean and the modernisation of customs processes. "The new service demonstrates our commitment in looking for new ways of offering transportation and logistics solutions in Vietnam," he said. "The ultimate goal is to connect markets, and excellent logistics will make this possi- ble." Nestor Scherbey, general director of logistics firm CTRMS Vietnam, said the plan is critical to raising Vietnam's national competitiveness, particularly in light of the most recent developments in global trade. As of now, logistics costs in Vietnam are extraordinarily high. According to Logistics Insight Asia, logistics costs in Vietnam are among the world's highest, at 25 per cent of GDP, which hinders the cost competitiveness of Vietnamese companies. Logistics costs in the US, Europe, and the rest of the world are about 9, 13, and 15 per FINANCE cent, respectively. "The efforts necessary to achieve the national action plan for logistics must be under- taken in co-ordination with diligent efforts by Vietnam to carry out the commitments of the World Trade Organisation Trade Facilitation Agreement (WTO TFA)," Scherbey said. Many of the major commitments of the WTO TFA were contained in the Trans-Pacific Partnership (TPP) and EVFTA. Full implementation of trade facilitation by Vietnam would reduce the country's inter- national trade transaction costs by 20 per cent. This means that implementing the WTO TFA fully would bring twice as much benefit to Vietnam that would be provided by TPP and all other free trade agreements, if all tariffs were to be scrapped. "It is the combination of the benefits of trade facilitation with the benefit of reducing domestic logistics costs that will allow Vietnamese products to become fully competi- tive in global markets," he said. http://english.vietnamnet.vn/fms/business/173560/the-steps-toward-2025-s-logistics- transformation.html

Hotel oversupply 02/MAR/2017 INTELLASIA | VIR perils overblown With infrastructural upgrades and less risk than other investment channels, the resort and second-home real estate market has been developing rapidly. And though experts warn that the breakneck development of projects could lead to oversupply in the com- ing years, all signs point to optimism. Bich Ngoc reports. Increasing supply The resort segment boomed in 2015 and 2016 with domestic developing giants such as Vingroup, Sun Group, and FLC Group leading the charge. These major projects have been established in high potential destinations like Phu Quoc, Danang, Nha Trang, Quang Ninh, Quy Nhon, and Sapa. In 2016, FLC Group supplied the market with around 1,000 second home units and beach villas in Thanh Hoa, Quy Nhon, and Halong Bay. Vingroup has added more than 3,000 condotel units and hundreds of beach villas. While Vingroup is leading in the number of units available at traditional destinations such as Phu Quoc, Nha Trang, and Danang, FLC Group is expanding their portfolios to other highly potential tourism destinations such as Thanh Hoa, Quy Nhon, and Halong Bay. Sun Group, meanwhile, invested into leisure and entertainment facilities containing high-end villas such as Ba Na Hill, Asia Park, and Fantasy Park, all located near Dan- ang, and Sun World Halong Park, found close to Halong Bay. On Phu Quoc island, Sun Group has been dominating with more than 650 condotel and villa units valued at $1-1.5 million each. Other groups have also laid groundwork on major development projects such as CEO

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Group, BIM Group, and Empire Group. Professor Dang Hung Vo, former deputy minister of Natural Resources and Environ- ment, said, "The winners in the real estate market in the past few years are the inves- tors in the resort segment, which is estimated to be worth as much as 500 tonnes of gold." Threat of a resort surplus At a recent seminar on the second-home market held in Hanoi, minister of Construc- tion Pham Hong Ha warned that there may be an oversupply of high-end resorts and second-home villas on the market. "According to our ministry's figures, there are currently thousands of unsold products in stock, not including the thousands of units that are in the pipeline in the coming years," Ha said. The Ministry of Construction is setting up a plan to review the development of the re- sort and second home market in order to ensure this market develops in a sustainable way. "We are discussing with related bodies to issue tighter measures on the high-end sec- FINANCE ond home and resort market in order to avoid the uncontrolled development of this segment at the locality in the near future," said Ha. Optimism from developers Trinh Van Quyet, chair of FLC Group, said that the resort and second-home market from the mountainous to coastal provinces of Vietnam has seen growth in 2016, with absorption of up to 80 per cent in many projects. "There might be a threat of oversupply in the near future, but this segment still has more room to grow," he said. Quyet noted that around 10 years ago, most people considered travelling as a luxury. However, since the 2000s, demand has increased sharply. "The reality is that FLC's ho- tels and resorts were fully occupied during the hot seasons, and the same situation could be seen in facilities as well." Quyet stated that increasing incomes, more young people travelling and spending, and globalisation have opened more opportunities for the development of the resort and second-home segment in Vietnam. "Compared to neighbouring countries such as Thailand, we can see that Vietnam's re- sort development has not yet matured, and there is still more room for development," Quyet said. For a price comparison, the average tourist staying at a resort in Vietnam pays $106 per day, while in Thailand the average tourist staying in similar style pays $160 per day. "Given that more than 10 million international tourists and several million domestic travellers visit the country, if these people paid the same amount as in Thailand, then Vietnam would gain billions of dollars per year," he added. Nguyen Duc Chi, general director of the Champarama Resort & Spa in Nha Trang, also agreed that market saturation is not likely. For example, the Turkish resort city of Antalya receives 12.5 million tourists per year and has more than 1,125 high-end hotels. Nha Trang has a target of hosting seven mil- lion tourists by 2020, and will need to increase to at least double its current 11,000 hotel rooms by then. "In general, Khanh Hoa province and specifically Nha Trang lack in high-end hotels and resorts, as well as other leisure and conference facilities. This shortage cannot be solved in the next few years," Chi told VIR. For other locations, Chi said that an oversupply can occur when the developers cannot offer unique and suitable amenities with their projects. "The important thing is how the developers design their products so that they interest both tourists and property buyers," he said. According to figures released by the G5 Real Estate Association, more than 17,000 con- dotels and beach villas were sold in 2016 from more than 40 projects nationwide. Phuoc Vo, director of valuation and research at Cushman & Wakefield Vietnam, said that there are more and more property projects which have committed to generating increased profit in the market, which gives them an advantage over other investment

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channels which are not as attractive or have potential risks. "Deposit interest rates tend to decrease, gold prices fluctuate, and the stock market is for people who have a certain level of understanding. Profit commitments will help the hotel and resort real estate become one of the safest investment channels, and it is easy to approach. As a result, this realty segment has attracted many investors," Vo said. Moreover, the increase in tourism is one of the main reasons that many real estate de- velopers have jumped into the resort and second-home segment. Last year was a bumper year for Vietnam's tourism sector as the country received a record high of 10 million international visitors, up 26 per cent year-on-year. The sector contributed more than VND400 trillion ($17.7 billion) to the state budget, according to the Vietnam National Administration of Tourism (VNAT). The figure is equivalent to 8.6 per cent of the country's $204.7 billion GDP in 2016. According to VNAT, in order to reach the target of receiving 17-20 million internation- al tourists and 82 million domestic tourists in 2020, hotel and resort facilities must be upgraded. This translates to Vietnam gaining a total turnover from tourism of $35 bil- FINANCE lion by 2020, which is equivalent to the current turnover of Malaysia, or half of Thai- land's turnover. This is actually an opportunity for resort developers who are investing in projects in Vietnam. Towards the future According to experts, the domestic realty groups will continue developing resorts and second homes, with more players joining the market. International developers such as VinaCapital and Indochina Land have projects in the works to bring super high-end units to the Vietnamese market. According to Doan Van Binh, deputy chair of the Vietnam Resort Property Association and chair of the management board of CEO Group, Vietnamese resort properties are upgrading to international standards. At the "Vietnam Investment Professional Forum" held recently on Phu Quoc Island, Binh stated the resort market still has potential. Binh cites three key factors for this potential: Vietnam's integration to the global econ- omy, which will bring international investors to the country; foreign ownership of property in Vietnam; and most importantly, the increasing income of the Vietnamese people, which has allowed them to travel more. Ho Tuan, general director of Tanzanite International, the developer of the $80 million The Hamptons Ho Tram beach resort, said that resort and second-home de- mand comes from many wealthy locals. "Resort and second-home properties are bringing stable income flow for the investors, and can be considered a long-term investment," Tuan said. Looking forward to 2017, there is plenty of optimism in the hospitality market. According to a recent report by Savills Vietnam, Hanoi and HCM City are among the markets where villas and townhouses reached the highest number of successful deals in Asean in 2015 and 2016, with increasing demand from earners of more than $20,000 per year. The number of households in Vietnam which have an income of $20,000 per year and upward is predicted to double to 530,000 by 2020, from the current 250,000. http://www.vir.com.vn/hotel-oversupply-perils-overblown.html

European F&B 02/MAR/2017 INTELLASIA | THE SAIGON TIMES enterprises sound out About 30 food and beverage enterprises from the European Union (EU) on February opportunities in 28 began a trip to Vietnam to explore business opportunities and look for domestic Vietnam partners with an aim to tap into Vietnam's market. According to the EU-Vietnam Business Network (EVBN), these enterprises come from different EU countries including Poland, Italia, Estonia, Greek, Spain, Portugal, France, Iceland, Germany, Hungary, the Czech Republic, Croatia, Holland and Lithua- nia. Their products are diverse, ranging from milk, meat, beer, and canned food to con- fectionery, sausages, olive oil, mineral water and soft drinks.

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Most of the EU enterprises joining this trade promotion programme from February 28 to March 3 in HCM City and Hanoi are first-timers to Vietnam. They will attend sev- eral conferences to meet with potential partners to get to know more about Vietnam's market. At a conference on Vietnam's food and beverage market on February 28, these enter- prises are given essential information like market trends, Vietnamese consumers' be- haviors, challenges and opportunities in the coming five years as well as cultural and legal aspects in Vietnam. They also make field trips to large retail stores and join more than 600 B2B meetings with local enterprises in HCM City and Hanoi. To prepare for the EU-Vietnam Free Trade Agreement (EVFTA) expected to take effect from 2018, EU enterprises look to expand their operations in Vietnam, including in the food and beverage sector. EVFTA is expected to help EU enterprises easily approach Vietnam's potential market. In November 2016, a group of more than 40 EU food and beverage enterprises came to FINANCE Vietnam, showing keen interest in the food and beverage sector. As many local consumers are increasingly concerned about food safety issues, foreign traders see this fact as a good chance to boost their sales in Vietnam. However, EU products sold in Vietnam are fairly expensive due to high transport costs and import tariffs. When the EVFTA concluded in 2015 becomes effective in 2018, Vietnam will eliminate most tariffs for goods imports from the EU. As a result, EU products will have more competitive prices. Foreign enterprises are currently holding a 50 percent market share in Vietnam's food and beverage sector and EU suppliers want to increase their market share via domestic retail system. In 2015, two-way trade between Vietnam and EU reached euro 38.4,billion including euro 29.9 billion worth of goods exported to the EU and 8.4 billion worth imported into Vietnam. Lithuania wants to import vegetables and fruits from Vietnam Lithuanian enterprises expect to import fruits and vegetables from Vietnam to meet the demand in their country, said Mindaugas Kuklierius, agricultural attache of Lithuania in China, South Korea, Vietnam and Mongolia. Speaking at a conference on cooperation opportunities for Vietnam enterprises held in HCM City on Monday, the attache said the cooperation would be beneficial for both countries. Lithuania has high demand for fresh fruits and vegetables and a developed processing industry with five big manufacturers while Vietnam is strong in growing fruits and vegetables, he added. Lithuania also shows interest in catfish imports from Vietnam. Besides, Kuklierius Mindaugas said Lithuania wants to export various farm produce to Vietnam including butter, cheese, beef, chicken, pork, fish, sugar and honey. Lithuania is located in Eastern Europe, bordering the Baltic Sea and between Latvia and Russia. http://english.thesaigontimes.vn/52606/European-FB-enterprises-sound-out-opportu- nities-in-Vietnam.html

HCM City aims for 02/MAR/2017 INTELLASIA | VNA high-quality low-cost Low-cost housing projects planned by the municipal administration should have the housing same quality of construction and infrastructure as their commercial counterparts, Dinh La Thang, Secretary of the HCM City Party Committee, has said. Addressing a conference on February 27 to gather ideas on building economical hous- ing projects in the city, Thang said low-cost social housing did not mean new slums in the city. The social housing areas should have healthcare services, markets and schools, he said. Thang also emphasized that low-cost housing need not mean building smaller houses. New materials and new technologies should be used to cut costs, he added.

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However, had the Cement Corporation has pledged tocut rm Korea' leaderwas a"wake-up call". onal data from about 850 Singapore 850Singapore fromabout national onal data s would help cutdown construction costs. r sectors toimprove r province of Helmand attackedacheckpoint were being struck fromthe Company Reis- ents for just 100 ents forjust100 million-200 millionVND ive measures" against North measures"againstNorth Korea, ive includ- id, explaining that "when leasing, thequal- e best way would be to build 15-20sq.m be tobuild15-20sq.m would best way e o NorthKorea linked companies operated was not feasible to build apartments for5 was tobuildapartments not feasible on social housing projects on a non-profit a housing projectson onsocial early yesterday killing 12 policemen and sell 30-35sq.m apartments in 12-15 storied membership, sayingtheuse of chemical Department ofConstruc een real estate developers and between and een realestatedevelopers amonthaftersuspending the entireforce Estate DevelopmentAs City RealEstate Asso City g very cheap social housing, Thang said said Thang housing, g verycheapsocial priced between 350 million VND millionVND (15,300 350 pricedbetween favourable conditions to develop favourable conditions todevelop social ince's determination and creativity, but but andcreativity, ince's determination le. It will cooperate with real estate withrealestate cooperate will le. It ice ofcementused for low-cost social -lowcost-housing/108012.vnp ss official secrets, theDe- a minuscule percentagea minuscule of administration proce-administration ciationsaid thecity sociation, said the the said sociation, tion, said the city city the said tion, 2 March 2017 27 / 41 27 / 2017 2 March 2 March2017 2 BUSINESS Vietnam finance& business Vietnam season 2017 AGM hot topicin expecteda tobecome Raising capital Intellasia meeting planned tobe heldon February 28th shares and paying dividends in shares. For Meanwhile, someother firms only plan to in of 2017. half first inthe ital consulting itssharehol is No VaLandIn firm which giant Another working supplement to used be will capital. part remaining the and Nam, Ha -- 1 phase Park vested in theconstruction and business proj formation oftheultra-whitefloat glassprod porcelainplan Viglacera Xuan struction ofMy industrial zone, Yen Phong project toexpand dong. Ofwhich, 691.69billiondongwillbe According toViglacera, therevenue ofthis from 3.070 trillion dongto4.270 trillion dong. of Viglacera. After completing the issuance, Viglacera's charter capital will be raised The expectedissuancevolume dongper at starting share. price of12,200 millionsharesandsellth firm willissue120 to seek shareholders'planned approval on th Meanwhile, the Vietnam Glass and Cerami by one trillion dong to 3.5trilliondong. HPG will also increase its decide todividendspay in cashor inshares. Depending 30 percent. payment ratioof dend pected revenue targetof 38trillion dong, prof Furthermore, HPGwillalsosubmit sharehol from 8.427 trillion dong impl is plan this If capital. ment working and st iron Quat Dung Phat capital forHoa se the ratio of10:2,startingfrom the at ers willadditi 2017. In addition, the company percentinshares,implem 50 at 2016 cal year share submit to expects HPG In particular, content on chartercapital. increasing Phat JointStockCompany (HPG) has adopte To prepareforthecomingannualshareholde without havingaconvincingoption, firms Many enterprises are toraise planning char 02/MAR/2017 INTELLASIA |DAU TU CHUNGKHOAN rocket yet to be flown, thelaunch announced on company Monday. developmen under aspaceship using year * SpaceXplansto launchtwopayingpassen of aresurgence of anti-Semitism. bomb threatsonMonday, thefift * Jewish community centers and schools inat chiefsaid. fire thelocal em,California, into ahouseonMonday, causing several fire * Three people werekilled and two critically injured when their light aircraft crashed militants fromtheirremaining strong ho main government buildings,major targetoffensive inthea todislodgeState Islamic forces* US-backedIraqiyesterday th battled market. mosque visited by the Tunisian asylum seek * German policeyesterday searched than20propertiesinBerlinmore with linkstoa ders about conductingders aprivate to 15.170 trilliondong. to 15.170 capital contribution at Hoa Phat Steel Joint SteelJoint Stock Company atHoa Phat contribution capital is equivalent to 39.09 percen 39.09 to is equivalent h wave of such threats this year thathave stoked fears ld inthewesternside ofthecity. emented, HPG'scharter capital will increase onally issue 250million shares tosharehold- These shares are notrestricted to transfer. cond quarter of 2017, cond quarter of2017, in order to mobilise holder theplantopaydividends for thefis- t forNASA astronauts and a heavy-lift eel productioncomplexproject and supple- vestment GroupCorporation (NVL) is also ter capital by different methods. However, methods.However, bydifferent ter capital may notreceive approval ofshareholders. gers on a tourist trip around the moon next around themoon trip on atourist gers investedinthe constructionandbusiness cs for Construction Corporation (VGC) Corporation cs forConstruction issuance is expected to reach 1.464 trillion 1.464 reach to isexpected issuance em atpublicauctioninthesecond quarter example, at the 2017 annual shareholders annual example, atthe 2017 ect to construct Dong Van IV Industrial DongVanIVIndustrial ect toconstruct s inaresidentialneighbourhood insouth- uction line, 154.2 billion dong will be in- billion dongwillbe uction line,154.2 ented in the first or the second quarter of second quarter orthe the first ented in er who killed 12 people at a Christmas a Christmas killed 12people at er who eirway towithinfiri crease charter byissuingbonus capital ders thebusiness plan in 2017 with ex- e publicshareissuance.Asexpected, the rs meeting, theBoardof directors ofHoa d a number of key issues, including the including issues, key of number a d 2017, in addition tothesubmission of the companywill situation, on theactual 292 billion dong will be used forthe con- least13 US states reported receiving it target of five tr target it five of t, 310billion dong will bepoured in the placement to raise charter cap- toraise charter placement t of all outstandingshares t of illion dong, and divi- ng range ofMosul's 2 March 2017 28 / 41 28 / 2017 2 March 2 March2017 2 BUSINESS Vietnam finance& business Vietnam chips and blue large caps Strong selling hits March 1-10 businesses during listed schedule of Dividend payment Intellasia 02/MAR/2017 INTELLASIA |THE SAIGON TIMES dividendincash 2016 at four going toadvance(coded is 4 TV4) JSC No. Power Construction 2017, March 10, * On dividend to advance2016 in at cash PostandTelecommunica 2017, 8, * OnMarch vance the first round 2016 dividend in cash to ad- going is MBB) (coded Bank Stock Joint Commercial Military 8,2017, * OnMarch dividendpayment the second 2016 in ca round BinhThuan Book andEqui * OnMarch8,2017, ond dividendpayment in round at 2016 cash Ha Confectionery JS 2017, Hai * OnMarch6, share). ed UIC) dividend is going 2016 to advance * On March JSC (cod- 6, 2017, DevelopmentandInvestment Idico andHousing Urban dividendround ei paymentat incash tomake the second going is Net (coded SFN) JSC * Fishing On March 2017, Saigon 3, dividend paymentin cash at 14 ParkJSC(coded thefinalround2016 DamSenWater * OnMarch DSN) made 2017, 1, 02/MAR/2017 INTELLASIA |VNECONOMY pricebeing price. not much thanmarket lower issuing sustainable foundation,highrate ofcapital In general, shareholdersbu oftenrefuse to investors. appropriate not further selltheunsoldshar DLG attainedin this issuancewas549 billi more than 54.91 million units, accountingfo dongpershare.However,only16shar 10,000 public auction. The offering volume was199 For DucLongGiaLaiJointStockGr example, issuanceplan. or unsuitable market developments had to and someeven find buyers could not In fact, although most enterprises havethe and continue the disbursement of low-cost loans with banks. also aimedto negotiate, sign by charter thetwo using capital above-ment Company (TPP)alsoexpected toreceive shareholders' approval onthe plan toraise profit targetof 30.4 billi revenue target of723billiondong,pre-tax pr shares. ed, followed by HQCwith more than17.6 FLC gained 0.9 percent at nearly VND8,200 the marketHowever, propertystocksbucked lower. slightly and onemillion shares ofeach shares. Around each atVND40,000 while HPGfell0.6percent a CII losta 5.6 atVND35,200 hefty percent threest The VN30 group alsosawjust while BVH, MSN and SABmoved sideways an stocks the leading 10 Among transactions. lion shares worth over VND3.2 trillion trad day previous Turnover to 710.79. on the marketkeptslidingwith192 mil- City HCM The VNIndexclosed attheintradaylow, losi blue chipsencountered str caps and large to near th The local stock tumbled market on dong, theBoardofmanagers PhuPlasticJointStock ofTan medium-term credit limit with preferential interest rates, rates, interest preferential with limit credit medium-term percent (or 400 percent (or400 dong share). per es (144.27 million units) asTP millionunits) es (144.27 percent (or 1,400 percent (or1,400 dong per share). nine percent (or 900 dongper share). ght percent dong share). ght percent (or 800 per ocks winningand 24 others losing. ong selling pressure intheafternoon phase. y shares ofy shares small enterprises which haveun- e 710-pointlevelon February 28 as many on dong. TPP's Board of directors agreedon dong.TPP's to Boardofdirectors share with over 2.2 million changing hands 2.2share withover millionchanging million shares and FIT with 14.5 million 14.5 with FIT million shares and of PVD, SSI, STB and STB were transacted raising, unconvincing capital use plan,and by market cap, only ROSmanaged to rise at six percent (or 600 atsix (or600 dong percent per share). of capital amount Thetotal percent. r 27.57 cases some charter capital, raise needs to in cash at 15 percent (or 1,500 percent(or1,500 dong in cashat 15 per ed, with VND181 billion in put-through put-through in billion VND181 ed, with a sharewithover26.2 ioned methods.In addition, the company cancel the issuance due to unfavourable unfavourable due to issuance cancelthe ng 6.65 points, or 0.93 percent, against the the against percent, points, or0.93 6.65 ng ofit targetof38bill tion Equipment JSC (codedPOT)isgoing JSC tion Equipment .18 million shares atstartingpriceof C (coded HHC) is going to make the sec- the to make going is HHC) (coded C fivepercent(or500 dong per share). oup (DLG)hasreleasedtheresultsof oup its downtrend, helped by high liquidity. liquidity. by high helped downtrend, ontradingvolumeofnearly 2.4million eholders registered tobuyavolume of pment JSC (coded BST) is going tomake sh at sh at six percent (or dongpershare). 600 d VIC,CTGand BID closedin the red. P has not been able to find has notbeenableto P ion dongandafter-tax million sharestrad- 2 March 2017 29 / 41 29 / 2017 2 March 2 March2017 2 BUSINESS Vietnam finance& business Vietnam caution on investor Shares fall stuff Congress debutscool Mobile World Intellasia bizhub.vn/markets/shares-fal The afternoon session starts at 1pm. companies said. levelof poin 720 to resistance break its failed pressure the Indexafter VN selling to bevolatile continue under The marketmay two markets. VND2.2 worth shares million 148.4 Around ashare. (US$5.07) trading VND115,500 on Tuesday, at Budget airline Vietjet hit theceiling rise of however, recovered andcushioned th companiessuchasVi Some Group(HPG). Phat and Hoa (HSG) lender BIDV (BID), Vietinbank (CTG), PVGas(GAS), FPT Corp (FPT), HoaSen Group their defensivestance Blue chipscontinued points. while on theHanoi Stock Exchange, theHNX inched On the Exchange,the Stock VN points, Index down 0.03percent HCM to 710.6 renewed correction. investor cautionabout Sharesmorning on on Wednesday inboth down markets edged 02/MAR/2017 INTELLASIA |VNS year's eventrunningFebruary27-M At this in the business. everyimportant company about This isthe attended second time Viettel has in ontopicssuch as thene to region Spain's Catalonia of professionals industry 100,000 estimated An gress techconference inBarcelona,Spain. and othercoolstuf of Things more Internet Viettel Group has senta delega 02/MAR/2017 INTELLASIA |VOV chips.html http://english.thesaigontimes.vn/52622/St VND4.5 billion of DBC shares and VND1.1billion of PVS shares. agains percent 290 and percent soaring 114 On thenorthern exchange, they net boughtover 358,000shares worth VND8.5 billion, billion,followed VND53.9 net selling VND61.8billion onMonday. ROS Foreigners netboughtVND21.3 billion worth ashar VND5,300 3.9percent at it advanced at their reference prices.SHB, meanwhile, bourse index with VCS, PVI andDBC edging down and ACB, HUTand BVS closing Financial andoil and gas stoc previous session. shares withvaluereaching nearly VND455 and 73othersgainedground. The market's HNX-IndexThe fell aslight 0.03 point,or CDO reported volume of over two million shares each. shares,over 5.7 million of Notably, HBCplunged tothe floorpriceof http://english.vov.vn/economy/mobile-world Distribution ManagementSystem. ing itslatest informationtechnologysolutions xt generation 5Gnetworks. the highest since itsdebut by VNM with VND30.9 billion. with VND30.9 VNM by namilk (VNM), Vietcombank (VCB) and VinGroup (VIC), (VIC), VinGroup and (VCB) Vietcombank (VNM), namilk see these new product launches, dobusiness, see thesenewproduct andweigh l-on-investor-caution_284469.html ks madethe most negativecontribution to thenorthern tion to getan up-close look atall the Android phones, e marketfroma steeper fall. rong-selling-hits-large-caps-and-blue- 0.04 percent, at as stocksdipped 0.04 percent,at 86.83 102 became the biggest support for the index as theindex for the support became biggest 7 per centforthesecondday afteritsdebut at theannualMobileWorldCon- f debuting VND47,300 a share with matching volume share with matching a VND47,300 arrch 2, Viettel has se has arrch 2,Viettel t thesession earlier. They net bought was53.7million tradingvolume total e withnearly12.5million shares traded. the event, which annually attracts just attracts annually the event,which ts intheprevioussessions, somesecurities as manymajorstocksslumped, including the against improvement slight billion, a trillion ($96.5 million) trillion ($96.5 and journalists have and journalists -congress-debuts-cool suchasV-Wallet, was heavily bought by foreigners with of shares on thesouthern bourse after Index dropped by0.7per Index cent to86.2 on themarket.and HID,HCD E-government andits t upaboothshowcas- invadedthe capital were traded inthe were -stuff-344559.vov 2 March 2017 30 / 41 30 / 2017 2 March 2 March2017 2 BUSINESS new shares listed million 400 Nearly finance& business Vietnam for profits struggle businesses E-commerce Intellasia ers. And each of these stages forms signific each oftheseers. And stagesforms Imagine if anorder arises, it must go throug the fear for businesses in this industry? much as43percent of e-commerce market sh segment hadthe operating profitmarginof any investor.As perSlice Intelligence, for problem unsolvable an is cost operating high and margin profit low The industry's ment inTiki.vn (in 2016). 48 billion dong/year ($2 ($2 million/year). dong/year 48 billion billion dong. So, withthree operatingwarehouses, bothcompanies "burn" no less than erating cost of a warehouse inHCMCityof person 300 meterswithabout 4,000square than For example, thewarehouses of Tiki and cost. is logistics First understand. that the company has been bearing the loss of The latest financialstatementof million in2015, $334 of loss nounced a cluding Indonesia, Malaysia,Philippines, Al by acquired being Before still havenotearned profits. it isnot surpri Therefore,years. after 10 The bige-commercecompanies suchasAmaz are stillVietnam persistentlybreaking barriers to attain profits. e-commerce in many companies strongly, is growing e-commerceintheworld While 02/MAR/2017 INTELLASIA |NHIP CAUDAU TU went publicon UPCoM with a reference Ngai Urba Quang million sharesofthe 6.8 ees. were issued individually tostrategic shareholders, and ESOP shares issued toemploy- million However, 1.073 DTG sharesare unde share. ($0.9)per VND20,600 share asTipharco recorded busine positive - stockcodeDTG)listedonUP ny (Tipharco There were 3.4million also shares of the bodia. supplyi and ingenerating investing is tional million)inApril ($16.1 billion VND366.77 pe ($0.46) areferencepriceofVND10,500 with Internati The 36.67millionEVN energy-efficient systems toraise capaci year.hasThe company addeda tank fermenta trillion VND1.58 ($69 capital was Parkincent Industrial Phu Quang the at establ was Ngai Sabeco Quang Sabeco holds 66.56per market. ce on the UPCoM pr a reference BSQ shareshad The 45million anticipated by investors andhad a re The 300 million VJC shares listedon the HCM al (EIC). those ofVietjet Air(stock The stockmarket received nearly 400 mill Host of new shares list on markets on Fe 02/MAR/2017 INTELLASIA |VNECONOMIC TIMES listed http://vneconomictimes.com/article/banking- code VJC),SabecoQuangNgai ibaba in 2015, Lazada Group (ane-commerce in- Group system in2015, Lazada ibaba ished in2005tocarryout a Saigonbeer brewery project VNG -- astart-upVNG pride onal shares alsowent public on theUPCoM market .36 million), .36 with acapacity ference price of VND90,000 ference ($3.95). price ofVND90,000 in 2016, Amazon's North America e-commerce America North Amazon's 2016, in sing when Vietnamese e-commerce companies ty to 130 to130 ty million litresper year. doubling doubling from thesame period of2014. bruary 28, including those of Vietjet Air. bruarythose ofVietjet including 28, ral QuangNgai province. Total investment Tipharco Pharmaceutical Joint StockCompa- Joint Pharmaceutical Tipharco price of VND10,100 price ofVND10,100 Lazada Vietnam in HCM City havemore City inHCM Vietnam Lazada Singapore, Thailandand an- Vietnam) ion new shares onFebruary 28,including ant management coststh n Environment JSC n Environment (stock codeQNU)also JSC 2016. The main activities of EVN Themain ofEVN Interna- 2016. activities ss result in 2016. Its reference price is Its referenceprice in2016. result ss h dozens of stages before reaching custom- before reaching stages h dozensof these twobusinessesis no lessthan one CoM. Investors have paidattention to the three percentthough it accounted foras ng electricity to Vi ice of VND 22,600 ice ofVND22,600 ($0. are costproblem causes What in US the r restricted transfer provisions, which finance/nearly-400 million-new-shares- City Stockexchange (HoSE)are the most on, Alibabaonlystartedtomakeprofits nearly100 billion d nearly100 r share. It adjusted its charter capital to chartercapital Itadjustedits r share. tion system toimprove its quality and nel. It is estimated that themonthly op- that isestimated nel. It nt of its subsidiary's charter capital. (BSQ), andEVNInternation- of Vietnam-- alsoshows of 100 million litres per of100 ($0.44) pershare. etnam, Laos and Cam- ong since its invest- its ong since at only insiders can at only 99) and were listed werelisted 99) and 2 March 2017 31 / 41 31 / 2017 2 March 2 March2017 2 BUSINESS Vietnam finance& business Vietnam Intellasia e-commerce ecosystem wi e-commerce ecosystem ating stages will beswitchedto specialised cordingly, companieswillfocusonthe core commerce systems with good quality and th cost.Inthe th ofoperating future, timisation market sharein tinue investinginexpanding four years, thiscompany became arather famousnameinthefield of e-commerce lo- That emerging. also is el in solution marketing provides PMAX If up". the push market tojointly service units nies still cannot doall. I beli merce hasmany stages suchas delivery, commercial businesses that are expanding is welcoming the wave of market penetrat service ine-commerce sectorsaid, although Le Xuan Long, CEO ofPMAX -- Company future. the near warehouse. This movewill beaccompanied wi thei dict customers'and the quantity demand, to increasinglyhigh cost. In CEO ofTiki.vnsays,theNgoc ThaiSon, Tran of lot a despite Therefore, online. moving toshopping are namese people e-commerce market share accountingfor abou growth, Vietnam isoneofthe 1/30 compared with the billionofthe $120 marketscalewasabout $4 Vietnam's e-commerce seen ine-commerce business". livered anddiscounts have been offered but thatmone is apopularjokethat "the fact to loseorders at 90thminute when having likely arestill businesses so popular still is cash in payment Vietnam, in is risk Another ances, technology, etc. Vietnam reduced 50percent of the price of warehouse arate focusing onfashion prod 50 Tiki offered vember 2016, During promotion time, thisproportion amou selling belowthecost from 10 percent to20percent compared tothe market price. want tobenamed,under the growth pressu not doesexpert oneeroded who profits.Asper to leading sure inprice competition, Apart from theaforementioned costpressures, businesses also suffer significant pres- supports the delivery amounts to orders/day,it dong. Withmorethan10,000 shipping policy nati community withfree of dongat the beginning. Meanwhile, Shopee. The system of Chotot.vnalsospent heavily on advertising programmes. and gain market share. Some sources say th Vietnam invests heavily in TV and online ads online invests heavilyinTVand Vietnam In addition, anotherhuge andrisky cost is with about 200employees along with Gi For example,Lazada Vi partners. to major mustpay Tiki and bothLazada Currently, number ofdeliverers an That is nottomention,withtens of thou This isavery huge financialchallengefo d the financial burden isincreasingly high. is giaohangnhanh.vn which was ll also proliferate. difficulties, domestic e-comme 2017,Tiki.vnwillinvestin eve that sooner or later, they also need to have separatethey alsoneed tohavesoonerorlater, eve that percent discount to 100,000 b to100,000 percent discount markets with the fastest growth with thefastest markets billions of dong per month. billions ofdongper sands of orderslarge needs aday,thereof a sands y hasnotbeen received, goods have been de- aohangnhanh, VNPostand Viettel Post. e-commerce ecosystem, another supply mod- r start-upcompanies ine-commerce sector. payment, customer care. Even large compa- customercare.Even payment, onwide for orders worthfor ordersmorethan150,000onwide etnam uses Lex Company (Lazada Express) usesLex etnam (Lazada Company beared allcostsfor theorder process. There ion from customers which are traditional ucts with 50 percent discount; Lazada percentdiscount;Lazada with 50 ucts marketing cost withva Japanese However,interms Japanese market. of is business used to to used business is for their owndelivery team andoutsource into online commerce. Long said "E-com- Longsaid into onlinecommerce. partners to carry out. Since then,partners tocarryout.Since the entire many itemssuch as fashion, home appli- on ad clipswithcomediansworth billions is estimated that the that cost that Shopee.vn is estimated an unit providing optimal advertising advertising optimal providing anunit sale while theaforementioned cost gener- re ofinvestors,many businesses accept it has just been established, theit has company is sector is expected to exist only some e- some only exist to expected is sector is e system may haveadifferent face. Ac- orders canstillbe cancelled can only be the near future. Along thatisthe future. the near with op- current situationis fast r position to classify orders tothenearby classify position to r vn invested indirect tothe marketing at the beginning tora at the nts to 50 percent. For example, in No- th the strategy on expansionof items in t 2.8 percent of the retail market, Viet- the retail percent of t 2.8 billion as of the end of 2016, equal to billion oftheend equal as 2016, technologytoaccurately pre- rce companies will still con- established in 2012. After established in 2012. ook titles; hadasep- Zalora spend $2million/month rateintheworld. With rious forms. Lazada delivery will lead ce to attract users attract ce to 2 March 2017 32 / 41 32 / 2017 2 March 2 March2017 2 BUSINESS Vietnam finance& business Vietnam IPO for June sell 49 pct stake, plans Vietnam's PV Oilto contract million insurance Vinalines signs $565 downMarch gasprice Intellasia for-june-3548683.html e.vnexpress.net/news/busine VND530 billion ($23 million). No gr said its In late December, thecompany 2016. for results financial full its yet to publish is Oil PV coming IPO. It wasnot made immediately clearhow much cent stakeinthecompany. said in aletter sent toinvestors issued in tocompletethesale gic investorsandaims three strate- of maximum to a percentstake and 44 a 20 sell between to expects Oil PV Quat. cr of supplier the only also is It Petrolimex. PV Oil claimstohold around a quarter of the domestic market share behind saying. as statement PetroVietnam a to become strategic investors,PVOil gene asth known fully firm, City-based the HCM Companies fromChina, theMiddle East and for June 2017, parentgroupPetroVietnam said on Wednesday. stake toinvestors,part ofwhich will be made Vietnam's second largest oil productdistribu stakes. PV Oil acquiring Investors from China, theMiddle East and 02/MAR/2017 INTELLASIA |VNEXPRESS http://bizhub.vn/news/vina and export goods inVietnam. ping, bulk cargoandoil carriers. Thefleet Vinalines hasmanagedandexploited a fleet of Insurance. poration andPTI Holdings, as PVI by insurers such sured the millioninsurancecontract, th Under $565 Tuesday. on year inHanoi insu to joint ventureofinsurancecompanies Vietnam NationalShippingLines (Vinalines 02/MAR/2017 INTELLASIA |VNS http://bizhub.vn/news/marc crease inworldgaspriceMarch,do the reasonforadr Accordingdistributors, to canister. tional PetroleumGroup,willfluctuateat JSC, Liquefied Gas Company LimitedVietna The retail price for end consumersfrom largecompanies, such as PetroVietnam Gas said. and retailersinHCMCity ister, distributors can- per 12kg cents) US (20 byVND4,500 priceis down gas cooking Wednesday, From 02/MAR/2017 INTELLASIA |VNS while businesses aregroping foraway to e-commercebenefit of inVietnam."Users of Shopee Vietnamsaidboth However, the future ofe-commerce remains gistics and used tobe proposed lines-signs-565 million-in lines-signs-565 h-gas-price-down_284473.html businesses andconsumersare st ss/vietnam-s-pv-oil-to-sell-49- percent-stake-plans-ipo- by VinEcom (Vingroup) to acquire. to by VinEcom(Vingroup) comparisons for 2015 weregiven. for2015 comparisons He did not name any of the firms. wn by $15 pertonneto$540 per tonne. Bao Viet Holdings, Bao Minh Insurance Cor- some VND330,000 to VND340,000 12kg per toVND340,000 some VND330,000 late December. Thestatewillretain a51per- oss profit in reachedanestimated 2016 have nothave experienced allaboute-commerce ral director Cao HoaiDuong was quoted in create sustainable profits", Pine said. Pine profits", sustainable create annually transports 60per cent ofimport ude oil toVietnam's sole oil refinery, Dung by July 2017, Chair Nguyen Hoang Tuan Chair HoangTuan Nguyen July 2017, by Southeast Asia haveexpressed interest in e PetroVietnamOilCorporation, looking ) reachedaframework agreement with a re itsoff-shore fishin Southeast Asia havealreadyapproached Asia Southeast Na- and Vietnam m, SaigonPetro CoLtd op indomesticMarch gaspricede- the is a bigquestion. Infact, Pine Kyaw, CEO tor PV Oil plans to sell off a 49 percent available at an initial public offering set public offeringset aninitial at available e hullsof76Vinalinesships will in- be various ships, including container ship- container including ships, various of the stake will be onofferattheup- surance-contract_284470.html ill learning about the real the ill learningabout g vessel hullsthis 2 March 2017 33 / 41 33 / 2017 2 March 2 March2017 2 BUSINESS months established in two enterprises More than 14,000 finance& business Vietnam maritime firm become leading Vinalines tipped to revenue Vietlott reports huge Intellasia pany in the 2017-2024 period. pany inthe 2017-2024 in thecentral coast cityof carriednational GatewaySeaportout willbe The project invested by Hai Phong Port CompanyLimitedtobuild a Hai Phong Inter- Huyen International Port complex inth Regarding seaports, Vinalines willberespons areas. in various allowing theen period, 2016-2020 investment,and business developmentand pr lished-in-two-months.html http://www.dtinews.vn/en/news/018/49739 motorcycle repairs andconstruction, among others. processing and manufacturing industry, whol The sectors that attract the participation of tered tosuspendoperations. http://www.dtinews.vn/en/news/018/49730 draw therestweredrawn and from Wednesday to Friday. According tostatistics,53.85 of percent gest prizepaid out so HCM City. JackpotThe prize moneycanbe as an City pot winningticketsare sold inHCM Jack- the of percent 6,85.71 February of As market. biggest Vietlott's is still City HCM City, CanTho, An Giang, DinhDu Currently, Vietlottticketsare being sold was 2016 nearly VND1.6trn. by42percenton increased last is VND378bn, reached VND756bn the company of revenue Vietlott reported positive growth compared increase of 34 percent onlastyear, accordin earnedVND12.8b Vietlott has 02/MAR/2017 INTELLASIA |DTI NEWS billion(US$440,000 VND10 oflessthan tal trillion VND62.2 (US$2.74 than more inFebruaryalone, However, percent increase of29.9 an (US$466,000), The averageregistered capital per ne accordingtotheBu same in2016, period percen 35 and terms ofnumberenterprises ofover VND152.5 capital registered total were enterprises set upin than14,450 More 02/MAR/2017 INTELLASIA |DTI NEWS Deputy prime minister Tri Deputy primeminister inthe sector. enterprise maritime theleading make it Shi to VietnamNational construction projects The governmenthas assigned alarge number 02/MAR/2017 INTELLASIA |THE SAIGON TIMES the sameperiod than of 2016, more including enterpriseswere 2,500 about In the meantime, erations, 7.6percentcompared up to The first twomonthsofthisyearalsosaw andearly February. January late The fallinnumber ofnewly established en uary. 31 perc ofenterprisesand cent inthenumber far was over VND92bn. Danang willbe developed by billion) worth of registered ca of billion)worth nh Dinh DungonMondayissu n (USD562,000) a day inthe n (USD562,000) first an months of2017, two terprise to step up investments in numerous projects projects numerous in upinvestments step to terprise ong, Danang, Hai ong, Danang, w enterprise reached VND10.6 billion the corresponding period last year. e northern coastal cityofHaiPhong. e northern the winningprizes were won on the Sunday 5,400 enterpriseswere siness Registration Management Agency. Management Registration siness at 12provinces and cities including HCM against the same year. against thesame period oflast more than 7,900 enterp more than7,900 trillion (US$6.71 billion) (US$6.71 trillion ) while more than 16, ) whilemore than a large number oflabourersincludethe terprises was due toalongTet holiday in /more-than-14-000-enterprises-estab- /vietlott-reports-huge-revenue.html g toitsreportreleased on February 28. thefirst twomonths of this year, with a (USD33m). The average monthlyincome Theaverage (USD33m). in 2017-2020. In additi In in 2017-2020. d most of the winners are alsoliving in to last year.In thefirsttwomonths, last to ent in registered capital compared to Jan- ent inregistered capitalcomparedto 2,300 enterprises with year. Its revenue from July to December high as VND159.2bn (USD7m). The big- (USD7m). as VND159.2bn high t in terms ofregistered capitalover the dissolved, up 14.9 percent compared to to percent compared 14.9 dissolved,up pping Lines (Vinalines) in aneffort to ible for developing some ports at Lach esale and retail sales, automobile and esale automobile and retailsales, and of port, shippingand logistics services oduction plansoductionthe ofVinalinesduring Phong andHanoi. Danang Port Joint StockCom- pital, a decrease of 39.3 adecreaseof per- pital, 39.3 ed adecisionapprovingthe established, with established, 300 enterprises regis- 300 enterprises rises resume their op- their resume rises , up3.9percentin on, Lien Chieu Port aregistered capi- 2 March 2017 34 / 41 34 / 2017 2 March 2 March2017 2 BUSINESS Vietnam finance& business Vietnam Nam inaugurated inHa Japanese-funded plant plant begins atYen Bai steel Construction of Intellasia http://bizhub.vn/news/construction-of-s northwest regi The project willalsocontributetoward nificantly increase theprovin contribute tosocio-economicdevelopment, he would It province. in the development industrial the highlighted project the said Duy ceremony,At theground-breaking chair of 64,000 tonnesand104,000 tonnes,respectively. and 2020 to be September March completed by of64 annual capacity have an 2018, will The project isdivided into three phases.The per year. (US$26 milli VND1.05 trillion hectares of landinMinh Quan and Bao Hung The plant, which is HSG's fifth steel plant a new steel plantinthe northern Yen Bai Province's Tran Yen District. Gr Sen Hoa steelmaker giant Vietnamese 02/MAR/2017 INTELLASIA |VNS time-firm.html In related news, Vinalines has rules. the prevailing Vinalines hastomapout a detailed investme Duong, and DongNaiprovinces. HCM Can Tho, (Hai Phong),Hanoi,Danang, tainer centers,an depots logistics (ICD), re is Vinalines services, logistics Regarding fleet anddecommissionold vessels. In terms ofshipping,thegovernmenthasas industrial park in the northern province of Ha Nam on March onMarch 1. province HaNam inthe northern of park industrial Japanese-funded NMSInternational Vietnam 02/MAR/2017 INTELLASIA |VNA http://english.thesaigontimes.vn/52602/Vi hand over landat Phu Dongportfordevelopment. Ministry ofTransp suggested the Vinalines and willbe expanded on anareaof40-50hectaresin 2030. According tothe plan ofVinalines,thiscent City. District, Hanoi posed tobe built inPhu Dong porton therightbank of the Duong river in Gia Lam aninland c including centre The logistics northern area. customers inthe create will transport enterprises,thecentre Combined with other transport and logistics logisticsseaports forexport. The centre will alsoserveimport demands. go will thenbe transferred fromtheinlandcontainer depot (IDC)inthecentre to Vinh Phuc,PhuTho, Bac Giang,noi, BacNinh, Besides, the logistics centre will be ahubto services forwaterway import This will be a large-scale centre for customs clearance, providing modern logistics environmental pollution. ern region, helpease overload ofoverland do of demand rising the satisfy will work cent the logistics said ofVinalines A leader system. waterway land toand transportdemands freight to to cater on, Duy said. on, Duy on) and will have thecapaci on) andwill ce's Statebudget revenues. and export, Vietnamplusreports. just proposed buildingalogi just s the overall economic development of the of overall economicdevelopment s the ,000 tonnes.the third The second phases, and d goods distribution centre in Lach Huyen distribution centrein d goods teel-plant-begins-at-yen-bai_284484.html oup (HSG) on Wednesday broke ground for on Wednesdaybrokeground (HSG) oup ontainer depot anda logistics area was pro- mestic container transportation in the north- in containertransportation mestic in the northern region, will be located on 20 be locatedon the northernregion,will in nalines-tipped-to-bec a whole packaged logistics service chain for servicechain logistics packaged whole a transport, and reduce freight cost and cost freight reduce transport, and the provincialPeople ked Vinalines to develop a specialised ship ship specialised a develop to Vinalines ked re together with the inland waterway net- quired to boost investments ininland con- ort work with HanoiCity government to work ort gather cargo fromindustrialzonesin Ha- re willhaveariverfront length of 1,200m nt plan and carry out theseprojectsunder first phase, to becompleted inSeptember from main seaportsintheareaviain- main from City, Bac Ninh, Hau Giang, Gia Lai,Binh Hau Giang,Ninh, Bac City, services of Vinalines as well as other as well services ofVinalinesas communes. It requires communes. It of aninvestment inaugurated aplantatthe Dong VanII lp raisepeople'sincomes as well assig- HungYen, and Ha Nam bywater. Car- 2021, willhaveanannualcapacity of 2021, ty to produce 220,000tonnes ty stics centre inHanoiCity ome-leading-mari- 's Committee's Do Duc 2 March 2017 35 / 41 35 / 2017 2 March 2 March2017 2 BUSINESS Vietnam finance& business Vietnam in Vietnam Canada promotes beef targets worldmarket Dak Lak avocado Intellasia food, soy beans and wheat to Vietnam last year. food, soybeansand wheat toVietnam North American market. Canada saw strong increases in exports of lobster, fish, sea- billion an $2.65 worth exported products isoneof Vietnam since 2014. fromCanada imports for processing produc In addition to beef, Canadian firms introd In additiontobeef,Canadian firms sector. highlighting Canada's contri MacAulay said his business mission would fi ports of qualityfarm produce to thismarket. to launchnegotiations with B including Canada associations inCanada Canada'sprospectof impacting Reimer saidthe Trans-Pacifi fast. growing is the class and middle consumers oftheViet thanthepotential lower much past yearsha over the shipments toVietnam motion event inHanoionFebruary 28that Heinz Reimer, vice chair oftheorganisation cus on beef in this market with more than 90 million people. gation representing agricultural Canadian minister ofAgriculture and Agri 02/MAR/2017 INTELLASIA |THE SAIGON TIMES coffee,beennamed Along withavocadohas households. The firm hassentexperts tothe thetrademark, the growth of To boostthe the biggest avocado in- trademark in Dak Lak. country, the across Each year, the company ships hundreds of supermarkets with along cluding Fivimart, Big C andCoopmart. Cambodia, and China in sold been has Dakado avocado, a trademarkthathasbeen developed byNhonLtdin DaLak,Thu tic and several regional markets. ma US and EU Japanese, the to the locality of Central HighlandsprovinceA firminthe 02/MAR/2017 INTELLASIA |VNA Nam plant inauguratedinHa Japanese-funded http://en.vietnamplus.vn/japanesefunded- Nam. Ha tors in lations, while notingthatlocal agencies shou company tofollowtheHeurged its investment commitmentsand respect localregu- ment ofVietnam's carindustry. Nguyen XuanDongsaidthefacility woul at Speaking the inaugurationceremony, Ch labourers. local 1,000 It employs es for theauto industry. pl sq.m,the5million-USD 7,000 Spanning worth C$15million.Itwillfo CuongMacAulay saidCa inHanoionMonday, Ata meeting with ministerofAgricult others. food, among tomake used cereals and seeds oil pork, ity encouraged theimportation of Cuong saidproducts of Canada and Viet implemented in2008-2014. and food duce Vietnam over a free trade agreement in order to boost ex- order toboost in trade agreement over afree Vietnam c Partnership tradepacthadnot progressed asexpected, llow a project tobuildandc Canada's key trading partners in Asean. In 2016, Vietnam inAsean.In2016, key Canada's trading partners bution to Vietnam's effort to modernise the agricultural tomodernise the toeffort agricultural bution Vietnam's high-quality breeder pigs. selling beeftothisAsean firmstoVietnam topromote theira fo- productswith ure and Rural Development Nguyen Development Xuan andRural ure d spent $389.9 million on imports from the on importsfromthe million $389.9 spent d nam were supplementary and that Vietnam namese market where there are 90 million company haswith worked 100localfarming uced technologyused ant manufactures telecommunication devic- ant manufacturestelecommunication d contribute significantly tothe develop- significantly d contribute plant-inaugurated-in-ha-nam/108019.vnp rkets after successfully entering thedomes- eef have lobbied the Canadian government Canadian the eef lobbied have fresh avocadoabroad, Dakado becoming the North American country's annual beef country's annual the NorthAmerican -Food Lawrence MacAulayhas led adele- Dak Lak plans to bringin avocadogrownDak Lakplansto air of Committee the provincial People's oil products for animal feed, beefandsea- farms togive technical support to farmers. Canadian Beef, told aCanadian beef pro- ts for domestic consumption and export consumption and ts fordomestic d reached 350 tonnes. as a major industrial crop of Dak Lak. of crop industrial major as a ld facilitate operations of foreign inves-facilitate operationsofforeign ld nd ways to strengthen trade with and with trade nd waystostrengthen nada would fund a safe growth projectnada wouldfundasafegrowth ontrol the quality of farm ontrol thequalityoffarm pro- Vietnam has lice has Vietnam market. Therefore,market. business to producehigh-qual- The volume is still 2 March 2017 36 / 41 36 / 2017 2 March 2 March2017 2 nsed lobster BUSINESS explosive growth achieves market accommodation Danang finance& business Vietnam results on 2016's business Local firmsoptimistic Intellasia 5. Vietnam Livestock Corporation Joint Stock Company Trading Corporation Land Him Lam 4. 3. Nguyen MinhSteel JSC 2. Hanoi Southern CityDevelopment JointStockCompany 1. FPTSoftware Co Ltd 500: Top 10ofFAST 500 ceremony award The FAST perts. and wasdrawnupin ternational standards The list is based onVNR's independent research and assessment. It complies with in- mate change, environmentpollution an Experts saidthis year would see many challe would better supporttheirdevelopment. duction, promoting administrativerefo top 500 businessesexpectedthat FAST The vatisation process. improved also gradually have CAGR ofprivate and FDI sectors sawthe the impactofeconomic crises. Ranking This was 500 revealed intheFAST 02/MAR/2017 INTELLASIA |VNS growth-344548.vov http://english.vov.vn/ec ofthecity the potential the explosiv However, theyalsowarnthat try. Experts saidrealestatemarket development inthecity. real estate The drastically growing demand ofinvestor 20 Some international hotelbrands ha to expected is ing. The city condominium(a hybrid and ofa The condotel those risen tremendously, especially As visitornumbers toDanangincrease, the nu the city. in modation both domestic andforeign visi city The centralcoastal 02/MAR/2017 INTELLASIA |VNA 31.1 percent in the 2010-13 period.Itmeant 2010-13 percent inthe 31.1 periodslightly in revenue in 2011-2014 the showed thattheFAST500's co The survey hance internal resources toward They said they would same sector. 2017, including increasing input material prices, higher labour costs andrivals in the However, the enterprises alsoforecastthat gies. increa services as new well and as products wouldturnover an prioritiseThey growthof firmssaidthat year woul this FAST 500 portant factorsthein forgrowth pastyears. five The survey alsorevealed thatmarket dema year, while over 82 percent expected thisyear's profits would be higher. surveyed firmswereop of 77 percent Nearly and announced by the Vietnam build suitable strategies to reduce negative pressure and and pressure en- negative toreduce strategies suitable build ofDanang has emerged as an attractive tourist destination for 's accommodationmarket. onomy/danang-accommodation-ma have 14,000condotelsby2018. tors in recent years, stimulating rapid growth ofaccom- growth rapid years, stimulating inrecent tors at an average rate of 33 pe rate of33 average an at will be held onApril 12th. Report (VNR) on February28. Report (VNR) sustainable growthtargets. by the beach and alongtheHan River. beach by the ve conductedbusinessinthecity. ve rm and improving the legal environment thelegal improving rm and d open new opportunitiesfor development. d difficulties intrade cooperation. highest growth, while State-owned firms e growth mayresultinoversupply, despite mpounded annual growth rate (CAGR) on growth rate mpounded annual that Vietnamese firms creased by 34 percent in comparison with incomparison percent 34 by creased consultation withdomesticandforeign ex- nd and trends have been the twomostim- there would be difficultiesfor growth in three policies of corporate incometaxre- of three policies sing productivity in their business strate- d profitinthecurrentmarket, introducing List 2017, drawn up up drawn List 2017, s to Danang has pushed up the price of the of price up pushed has s toDanang nges forbusinessesdu timistic abouttheir business results last in Danang is inthecoun- is rapid the most in Danang hotel) market in the coastal city is swell- is city thecoastal in market hotel) mber of hotelsbuiltinthecityhas also rcent together with their pri- their togetherwith rcent rket-achieves-explosive- have largely escaped annually since 2011, 2011, since annually e tocontinuingcli- 2 March 2017 37 / 41 37 / 2017 2 March 2 March2017 2 BUSINESS Vietnam finance& business Vietnam Indonesia orange exportsto Opportunity arises for Gia Lai to bebuiltin complex herb processing Hi-tech medicinal retailer leading mobile Vietnam's$11mn in Ton Poh Fund invests Intellasia gia-lai/108018.vnp http://en.vietnamplus.vn/hitech-medicina three othersannually. The4,000 tonnesare completed inthenext four months with The facilitiesforsupplementary herbal drinks,supplementary fishfeed The complex will feature five manufacturin medicinal herb areas. forgrowing theremaining while facilities forthe of technical billion building VND 300 The projecthasan of500bill investment lands provinceofGia Lai. Da Indust and foodprocessingcomplexatTra The Truong SinhGroup on March 1 started 02/MAR/2017 INTELLASIA |VNA A Thai fundhas bought 1.5 million shares 02/MAR/2017 INTELLASIA |TUOITRENEWS http://english.vov.vn/economy/local-firm 10. DucGiangChemicals and De 9. Truong LongEngineering andAutoJoint Stock Company Company 8. HaiDangJointStock Company JointStock 7. Vietjet Aviation 6. ThePAN Group etnam Trade Office in Indonesia. favour in of oranges havefallenout nesian market Indonesia willbecomeanimportant 02/MAR/2017 INTELLASIA |VNA 344610.vov ing-mobile-retailer-344595.vov http://english.vov.vn/economy/tonne-poh- lion shares to hold a5.92percent st The Thaifund made itsdebu cent. the in reducingitsstake dong-Kien Giang, Prior to the MWGinvestment,The TonPoh shares. of its8millionMWG to 4. company from5.2Vietnamese percent the Lt Mekonginvestor,Another EnterpriseFundII sent controllingshares. not affectthe business plansnor company's An MWG representative saidthe transfer ofshares between foreign investorswould million. $11.16 billion, or decline fromFebruary27,meaningth slight asharebythe closed MWG at VND167,500 million shares it owned inMWG. Bee Ltdhadpreviously annou The CDHElectric shares tothe investor. Thai ferred 1millionMWG shares to TheTon Deposi tothe According Securities Vietnam MWG isthe operator ofretailchains nam Securities hasannounced. Depository shares owners, fromtheirprevious twoothe Bangkok-based T Ton PohFund,runby The one of Vietnam's leadingmobile retailers, t onVietnam's exchange inMarch 2015, buying 2.5 mil- fishfeedandbioorganicfertiliserarescheduledtobe tergent Joint Stock Company Stock tergent Joint ake in realty traderCotecCons. inrealty ake The Gioi DiDongandDienMayXanh. , bio organic fertiliserand bottles. ion VND (over 21.9 million USD), 21.9million ion VND(over including USD), the designed capacitiesof5,000tonnes and Poh Fund, and Dempsey Hill Asia, 500,000 Poh and 500,000 Fund, Dempsey HillAsia, s-optimistic-on-2016s- at a price of more than million. $11 atapriceofmorethan l-herb-processing-complex-to-be-built-in- in Mobile World Inve World in Mobile fund-invests-us11mn-in-vietnams-lead- the domestic market, according to the Vi- g units that produce supplementary foods,g unitsthatproducesupplementary Vietnamese hydrofoil operator to 4.83 per-to 4.83 Vietnamese hydrofoiloperator slated to be operational in early 2018. be operationalinearly to slated e Thai fund had spent more than VND250 fundhadspentmorethanVND250 e Thai end of 28'stradingsession, February a tory, CDHElectric Bee Limited has trans- construction of a hi-tech medicinal herb medicinal construction ofahi-tech policies as the investments did not repre- Fund had sold 300,00 had Fund for Vietnamese orange exportersas Indo- r foreign funds,on February 28, theViet- on Poh Capital, officially received the rial Park in Pleiku city, the Central High- city, the inPleiku Central Park rial 55 percent by offering to sell 1 million to sell1million by offering percent 55 nced1 millionofthe4.72 itwouldsell d, also has plans to reducealsod, itsstakein hasplansto business-results- stment Corp (MWG), 0 sharesofSuper- 2 March 2017 38 / 41 38 / 2017 2 March 2 March2017 2 BUSINESS Vietnam finance& business Vietnam connects in Vietnam streaming provider foreign video After Netflix,another capacity doubles production Panasonic Vietnam Intellasia pacity.html http://english.thesaigontimes.vn/52611/Pa In fiscal2016, Panasonicobta in thesurrounding area for future expansion. It market. inthelocal share market panding The investmentdecision to bu cuit breakers per year. since November 2014, providing53millionun 2014, since November first wiringdevi Panasonic's market and Asia. Southeast Oc in completed The factorytobe cal 2020. http://en.vietnamplus.vn/opportunity-ar worldwide. Indonesia isamongmajor import iflix is now available in eight Asian markets, and its catalog includes both Hollywood bothHollywood includes catalog its and markets, Asian eight in available now is iflix Vietnamese, saidCountry manager HoangTungatthe press conference. subscr its allows also platform The streaming puters, tablets, televisions andsmart phones. inVietnam canwatchiflix Customers on ava offered by Netflix, and could st after a 30-day free trial. This iflix makesitsmoneyfromchargingsubs lix, thischanging. is ofthe video the arrival U.S st Vietnamese havelong consumers enjoyeda Times cited David L.Goldstein, iflix manager in Asia, as saying. new in virtually arestill like iflix services growing a has the country because mainly The streamingvideo provider as seesVietnam streaming platforms. number ofinternet users,making it alu Vietnam iscurrently ranked by Internet Worl conference. at apress onTuesday thecompanysaid population, sizable the country's into tapping of the aim with inVietnam launched has officially iflix startup streaming video Malaysia-based potential. Foreign companies have long been salivating 02/MAR/2017 INTELLASIA |VNEXPRESS an manufacture switches, plugs next toPanasonic'sexisting plantinVietna A factory costing one billion Japaneseyenwi inVietnam. capacity to double thecompany'sproduction to construct a newwiring circui device and Panasonic Eco Solutions Vi 02/MAR/2017 INTELLASIA |THE SAIGON TIMES 107989.vnp Vietnamese frui value is expected to increase to 3billion USD this year. Vietnam's total fruit andvegetables export value reached 2.4 billion USDin 2016. The Vietnamese orange exporterswere recommended to research exporting to Indonesia. kilogramme ofdomesticoranges. forone (1.79USD) rupiahs pay24,000 to have whileconsumers kilogramme per USD) In addition, imported oranges aresold at anges, the office said. their and sweet less are oranges Indonesian ts and vegetables havebeen export etnam Co Ltd (PESVN) annou Ltd (PESVN) Co etnam is about three times less than subscription fees currently is three fees currently about times thansubscription less ce andcircuit breaker factory has been up and running ined revenue ofVND920billion. reaming giant Netflix ayear ago, reaming giant and now Netflix if- Malaysia's ild itsownfactories resulted art a price war between thetwo. d disconnectors, aimingtodo crative proposition in the eyesof foreign ises-for-orange-ex this market, business newspaper the Saigon businessnewspaperthe this market, the competitive price of 28,000 rupiahs (2.09 (2.09 price rupiahs the of 28,000 competitive cribers a monthly fee of VND59,000 ($2.59) cribers amonthlyfeeofVND59,000 nasonic-Vietnam-doub t breaker factory in Binh Duong with an aim in BinhDuongwithan breaker factory t population and fee-based onlinestreaming population and m-Singapore Industrial tober this year will supply the domestic the domestic supply will tober year this ccess tofreeonlinevi also planstoreserve18,000 square meters skins are paler compared with foreign or- foreign with paler compared are skins over the local streaming media market's streaming media local overthe ll be built on a 6,000-square-metre area 6,000-square-metre on a be built ll ibers to select subtitles in English or in riety of devices, including desktop com- of devices, includingdesktop riety d Stats intermsofthe d Stats globally at 18th ahugemarket withenormouspotential ers of Vietnamesefruits and vegetables. its of wiring device its of ed to60 countries andterritories nced a decision on Monday nced adecision ports-to-indonesia/ fromPanasonic's fast-ex- uble itsproduction infis- deos, however, with les-production-ca- s 13million and cir- Park II(VSIP II) to 2 March 2017 39 / 41 39 / 2017 2 March 2 March2017 2 BUSINESS on retail sector Foreign investorskeen finance& business Vietnam of iflix entersVietnamof Online movie service Intellasia provider-connects-in-v Based in Malaysia, iflix aims to focus on developing markets like Vietnam. like markets on to developing focus aims iflix inMalaysia, Based subtitles. multi-language and Hoang Tung,CEO of iflix Vietnam,saiduser provides movies ofHoll and laptop, computer television, and can a Each subscriber canaccessmovieson up ATM providers,or internet and service andthe fee is VND59,000 annual is VND540 a offers iflix more users, attract site. To Users candownload iflix from market. television pay underdeveloped the and movies its holds strongpotential due to Vietnam subs one billion have aimto an with rica Vietnam beforeta to Iflix aimstoexpand scribers. sia, Sri Lanka, Brunei, Maldives andPakist Asia, said that after ayearinoperation inMalaysia, Thailand,the Philippines, Indone- a pressAt conference inHanoiyesterday, David L.Goldstein, iflixrepresentative in has announced its official presence inVi After eightother Asian countries, thecopyrighted onlinemovieservice provider iflix 02/MAR/2017 INTELLASIA |THE SAIGON TIMES strategicof theFivi shareholderbecome a Japanese supermarket chain operator Aeon Company Limitedhasrecently decided to sign and manufacturing company are already present here in the local market. last year. Meanwhile, US-based clothing Gap the firststoreofSpain'sForexample, fash sector. in theretail tunities large numberof The retailsectorhasseen a city ofHanoisome er, announced itwould thefirstopen retail ForHennes &Mauritz(H&M),Swedexample, in Vietnamthecoming years, the Vietnam News Agencyreports. cont will foreign companies that forecast EIU Monday. tail market, according toareport of The A largenumberofforeigninvestors are expres 02/MAR/2017 INTELLASIA |THE SAIGON TIMES localhits contentand inMalaysian, Chines http://e.vnexpress.net/news/ in2015. cured launch than1million more since its subscribers http://english.thesaigontimes.vn/52619/Fore Accordingcapita spendingwill per toEIU, pe 94 million ofarounda population has Local consumer spending is forecast torise sharply in the next five years as Vietnam period. 2012-2016 growth sectoras posted retail it country's It cameas no surprise that foreignenterpri and 2020. between now Group hasmapped out aplan to launcharound60new supermarkets in the country augurated itsfirstshoppingcentreindo Furthermore, Takashimaya,one of Japan's le whose numerousoutlets are currently time thisyear. time ietnam-3548510.html ywood, Asiaand Vietnam. business/after-net Google Play, AppStore or create an account on its web- active in HCM City and Hanoi. and City HCM in active 30-day free trial. After 30 days, the monthly fee days, themonthly 30 trial. After30-day free wntown HCMCity while SouthKorea's Lotte or pre-paid cards inthenear cards or future. pre-paid pping into Myanmar, the Middle Eastand Af- etnam throughthe website http://iflix.com. Economist Intelligence Unit(EIU)issued on cribers worldwideby Goldsteinadded. 2020, ople, one-third ofthem aged under 35. to five devicesincluding smartphone, iPad, ion brand Zara in Vietnam wasinaugurated mart and Citimart, tw large population, high demand for online of a strong 13 percent per year during the year duringper of astrong13percent an, iflix has now attracted three million sub- three now million has attracted an, iflix foreigninvestorscomingtoexplore oppor- ccess simultaneously on twodevices. Iflix ses have paid increasing attentiontothe e and other regional la store on2,000 square meters in the capital rise from $1,450 last year to $1,840 in2021. $1,840 yearto last $1,450 rise from ign-investors-keen- s canchoose either English orVietnamese ,000. Users can pay through credit cards cards credit through pay can Users ,000. ading department store operators, hasin- retailer and Spain's Mango clothing de- Mangoclothing Spain's retailer and inue expanding theirinue businessactivities flix-another-foreig sing their keeninterestinVietnam'sre- en-based multinational clothing retail- on-retail-sector.html o supermarket chains o supermarket n-video-streaming- nguages. It has se- nguages. Ithas 2 March 2017 40 / 41 40 / 2017 2 March 2 March2017 2 BUSINESS chair Corporationnew has Vietnam Railways finance& business Vietnam realmarket estate new centreof resort Quang Ninh becomes Intellasia ern part of BauIsland;VanTien Cai Don VND10.602tr Van -- trillion; HaLong VND7.388 Bridge Dang Bach the trillion; VND6.4 at capitalised north, the in city port These include Ha Long -- HaiPhong, tobe ways, expected completed in 2017-2018. End oping anintegrated resort with casino. Duong Parkof Sungroup hasjustbeen inau end real estate projects.In HaLong,Vinpea A local newspaper commented that QuangNi BIM Group,Tuanand Chau Gelexi capital ofVND3.4 vestment Others havealso joined the 'game' includingFLCwith FLC Ha Long project with in- Quang Ninh. The two big players SungroupandVingroup trillion VND100 of ital pr realestate 100 The provincehasattracted decide topourmoney intoQuangNinh, st development clear authorities' provincial Truong ManhHung, deputy head oftheIn ling between Hanoi and HaLongbyone hour. be completedfromnow to the end of2017, which willhelp reduce thetime for travel- in early2018.The Hanoi -- Ha InternationalDonThe Van Airportispreparin A series of key infrastructure infrastructure. began spendingbigmoneyon authorities only seen ittheirnew strategic All these QuangNinhanattractive ma make many high-end accommodati Ninh's residents is relatively high, just af mestic travellerson a strong rise. Meanwhil Ha Long has great potential in HaLong City, where there is the Analysts havebeguntalking ab the resort realestatemarket.in magnet in oninvestment policy authorities' With big real estate players such as Ving 02/MAR/2017 INTELLASIA |VIETNAMNET designated ofits and outside appropriate purchase usedcarriages from China earlier Thanh's leadership wasalso tainted bythe widely-criticisedas lapses such decision to trillion. ofVND5.53 revenues 2014 the of half just -- million) (US$116 trillion VND2.66 to revenuedown 2015 helm, with VNR inDecember2016whenthecorporat of the postfromTranNgocThanh, Minh took said Ngha. to checkitspassengers The corporationneeds technology a and management ating science acceler- investment, effective on focusing the business, re-organising and structuring at Speaking the conference heldinHanoi, ment Department. Before his new appointment, Minhwasdirect Vietnam Railways Corpor Minister ofTransport Tru 02/MAR/2017 INTELLASIA |VNS over thelast twoyears. ong Quang Nghia VuAnhappointed Minhas the Chair of ation (VNR) on Tuesday. trillion, HD Mon Holdings with Mon Bay VND5 trillion. trillion. VND5 Bay Mon with Holdings Mon HD trillion, to develop withthenumberofforeign do- to develop tourism and projects havebeen develope on projectsin the city. market in the last one to two years, when the provincial provincial the when years, two to one last the in market i Phong -- Ha Long -- Ha Long -- Phong i out a 'resort realwave estateout a'resort mco alsohave there.projects world's naturalheri Bridge and Van Don non-tariffarea. frastructure,new a has become QuangNinh which connects QuangNinh and animportant especially the realestatesector. especially roup, Sungroup and FLC Sungroup theprovincial roup, and ter HCM City. However, there are still not not therearestill City. However, ter HCM Nghia requested theVNR to continue re- functions"the government Inspectorate. by vestment Promotion Committee, saidthePromotion Committee, vestment ojects with total registered investment cap- registeredinvestment total with ojects illion; the 4B Highway; a port in the north- in port a Highway; 4B the illion; e, the average incomeper capitaofQuang rategy was a prerequisite for investors to for investors prerequisite was a rategy who was dismissed from his post as chair his post who wasdismissedfrom this year or estate investments found "in- found yearor investments this estate rl has justbecome operational, while Dai ion's performance became bleak under hisunderion's performancebecamebleak gurated. In Van Don, Sungroup is devel- is Van Don,Sungroup gurated. In pplications toensure railway safety. rket forinvestors.However,they have alone havepoured VND30 trillion into or of the ministry's Enterprise Manage- and freight transport strategies as well, as well, strategies transport and freight g to put the first runway into operation operation thefirst runwayinto g toput nh is agreat construction site ofhigh- Mong Cai highway routes will highway routes Mong Cai tage Ha LongBay. tage d recently, especially high- d recently,especially ' in Quang Ninh,especially Quang ' in 2 March 2017 41 / 41 41 / 2017 2 March 2 March2017 2