Stock market

Stocks to keep rising on investor confidence 22/May/2017 Intellasia| VNS Vietnamese stock indices are expected to remain upbeat during upcoming trading sessions thanks to strong investor confidence and a shift in investment among local stocks. On Friday, the benchmark VN Index on the HCM Stock Exchange gained 0.94 per cent to finish at 733.82 points and set a fresh nine-year high. The HNX Index on the Hanoi Stock Exchange advanced 0.78 per cent to close at 92.18 points. Compared to the previous week's closing levels, the VN Index notched up a weekly gain of 1.2 per cent and the HNX Index rose 2 per cent. Daily average trading volume fell 36 per cent week on week, with more than 173.5 million shares traded in each session, while trading value halved to VND2.87 trillion (US$127.5 million). Local stock indices are expected to continue rising this week on the return of investment flow to large- cap stocks after it had focused on speculative ones, boosting those shares over previous weeks. Last week, there was a big shift in investment from speculative stocks to large-cap stocks as investors took profits from strong gains in those speculative shares. "It's normal for investors to take profits from the speculative stocks, especially those that have made significant gains in the last one or two months," said Ngo Thế Hiển, analyst at Sai Gon-Ha Nội Securities (SHS). "A strong investment flow has boosted low-priced and speculative stocks, some of which have surged between 50 per cent and 100 per cent," Hien said. Money is flowing out from speculative stocks and returning to large-cap stocks, which will help boost shares of large-cap companies and have a combined effect on other shares in the market, according to Hiển. In its latest weekly report, SHS forecasts that the increased investment in large-cap shares will help the VN Index rise further, towards the 740 point level. The shift in investment helped shares of brokerages, banks and energy producers become the biggest gainers last week. Among the nine listed banks, Vietcombank (VCB) rallied total 1.9 per cent after the last three sessions, Bank for Investment and Development of Vietnam (BID) made a two-day gain of 3 per cent, while MBBank (MBB) made a three-day jump of 7.6 per cent. The brokerage sector was driven up by investor expectations for positive earnings among local securities firms, which benefited from high trading liquidity in the market. Most notable brokerage shares included Sai Gon Securities (SSI), HCM City Securities (HCM), Sai Gon- Hanoi Securities (SHS) and VNDirect Securities (VND). SSI surged 9.7 per cent and HCM soared nearly 13 per cent in the last three days, SHS increased by 8.7 per cent and VND rose by 3.2 per cent. Meanwhile, energy stocks such as PetroVietnam Gas (GAS) and PetroVietnam Technical Services (PVS) benefited from higher oil prices. The growth of those companies' shares had been supported by their positive earnings in the first quarter of 2017, Tran Duc Anh, analyst at Bao Viet Securities (BVS) said. That would strengthen the prospect of the stock market at the moment, Anh said, adding that a market correction remained highly possible, but the drop would not be too much. http://vietnamnews.vn/economy/376810/stocks-to-keep-rising-on-investor-confidence.html

VN Index hits fresh nine-year high 22/May/2017 Intellasia| VNA Shares rose on both local exchanges on May 19, boosted by big gains for brokerage and energy companies. The benchmark VN Index on the HCM Stock Exchange gained 0.94 percent to close at 733.82 points, setting a fresh nine-year high. The HNX Index on the Hanoi Stock Exchange advanced 0.78 percent to end at 92.18 points. The northern market index bounced back from the 0.5 percent loss on May 18 The VN Index has posted a weekly gain of 1.2 percent compared to the previous trading week, and the HNX Index has gained 2 percent. More than 281.6 million shares were traded on both local bourses, worth 6.11 trillion VND (271.58 million USD). The stock market was driven up by strong gains of brokerages and energy companies, which saw their sector indices up 5.4 percent and 0.8 percent, respectively, according to vietstock.vn. Among securities companies, HCM City Securities (HCM), Saigon Securities (SSI), Saigon-Hanoi Securities (SHS) and VNDirect Securities (VND) were the strongest gainers. Of those four companies, HCM and SHS hit their daily trading limit of 6.9 percent and 9.6 percent, respectively. HCM City Securities on Friday officially erased the limit of foreign ownership in its capital, allowing foreign investors to purchase up to 100 percent of its shares. Its shares have jumped 12.4 percent in the last three sessions. Shares of Saigon-Hanoi Securities have soared nearly 12 percent since May16, after the company announced it will pay an 8 percent dividend in cash for 2016 performance and the list of beneficiary shareholders will be finalised on May 26. A three-day rally of oil prices in the Asian trading session also helped bolster investor confidence in local energy stocks. Brent crude gained 1.1 percent to trade at more than $53 a barrel, totalling a three-day increase of 2.8 percent. It has made a 9 percent increase since May 9. Among local energy stocks, PetroVietnam Gas (GAS) gained 2.2 percent, PetroVietnam Coating (PVB) added 2 percent, and PetroVietnam Technical Services (PVS) edged up 0.6 percent. Other sectors that also posted good gains included banks, agriculture firms, rubber producers and construction corporations. The main force behind the market gains on May 19 was the shift of investment flow from property developers, which have seen their share prices increase strongly recently, to large-cap companies, improving investor confidence and put the VN Index at its fresh nine-year high, BIDV Securities (BSC) said in its report. The market condition will remain positive, with the VN Index targeting the short-term peak of 740 points and liquidity increasing strongly and firmly, BSC said. http://en.vietnamplus.vn/vn-index-hits-fresh-nineyear-high/112002.vnp

VN Index breaks 730-point barrier 22/May/2017 Intellasia| VN Economic Times Index closes at nine-year high on May 19. All main indexes on Vietnam's stock market gained ground on May 19, with the VN Index closing at over 730 points; its highest in over nine years. On HSX, the VN Index increased 6.83 points (0.94 per cent) and the VN30-Index 6.73 points (0.97 per cent). On HNX, the HNX-Index closed up 0.72 points (0.78 per cent), the HNX30-Index 1.82 points (1.06 per cent), and the UPCoM-Index 0.03 points (0.05 per cent). Liquidity on HSX reached VND5 trillion ($220.3 million), 11 per cent higher than yesterday, and on HNX was VND720 billion ($31.7 million), more or less the same as yesterday. The VN Index opened at 726.99 points and quickly rose to 728.7 points early on before easing to 727 points mid-session then increasing sharply to close the morning at 731.4 points. In the afternoon, it rose throughout the session and closed the day's trade at 733.82 points. Most large caps in food and beverage increased: SBT by 4 per cent, BHN 2.1 per cent, KDC 1.7 per cent, VNM 1.3 per cent, and SAB 0.1 per cent. MSN fell by 1.2 per cent. In banking, MBB rose 3.2 per cent, BID 2.4 per cent, CTG 1.4 per cent, and VCB 1.1 per cent. EIB closed at its opening price while STB lost 0.4 per cent. In energy, GAS increased 2.2 per cent, PGD closed at its opening price, and CNG shed 0.6 per cent. In real estate, QCG reached it ceiling in rising 6.8 per cent and FLC increased 3 per cent and NVL 1 per cent. KBC closed at its opening price and KDH and VIC lost 2.7 per cent and 1 per cent, respectively. Among other large caps, PLX hit its ceiling in increasing 6.9 per cent and MWG and VJC rose 0.7 per cent and 0.6 per cent, respectively. BVH closed at its opening price while ROS fell 1.7 per cent. ROS saw the highest liquidity on HSX, with VND1.4 trillion ($61.7 million), followed by PLX with VND244 billion ($10.7 million) and SSI with VND240 billion ($10.5 million). The largest cap, VNM, saw VND119 billion ($5.3 million) change hands. On HNX, PVI increased 2.1 per cent, ACB 0.8 per cent, NTP 0.7 per cent, and PVS 0.6 per cent. VCG and SHB closed at their opening price while PHP lost 2.6 per cent, VNR 0.4 per cent, and VCS 0.3 per cent. Foreign investors net bought on HSX by VND173 billion ($7.6 million) and on HNX by VND15 billion ($660,750). http://vneconomictimes.com/article/banking-finance/vn-index-breaks-730-point-barrier

Selling pressure sinks VN Index 22/May/2017 Intellasia| The Saigon Times The local stock market resumed sideways movements after just one session of recovery on May 18 as sellers took the upper hand for most trading time. Meanwhile, large caps saved the main index from making a steep decline. The VN Index closed the session at 726.99, losing a slight 0.21 point, or 0.03 percent, against the previous day. PLX, MBB, SAB, CTG and GAS lifted the main index up over 0.43 percent, in which financial and banking stocks MBB, CTG, VCB, BID and SSI contributed 0.17 percent. MBB jumped 3.9 percent to VND17,200 a share on matching volume of 4.7 million shares. SSI saw its trading volume soaring to 10.3 million shares, the highest since December 2015, closing up 1.7 percent to VND24,500 a share. In the oil and gas group, PLX was the key market driver for adding 3.9 percent at VND53,000 per share on volume of three million shares. Meanwhile, ROS, VNM, HPG and VJC were the main drag, pulling the VN Index down 0,25 percent. Mid and small caps BHS, DHA, DMC and GMD also succumbed to strong selling after a long winning streak. Among key laggards, ROS lost 2.2 percent to VND157,100 a share with nearly 6.9 million shares exchanged. HPG also fell 1.9 percent at VND28,500 per share on volume of 3.9 million shares. Most real estate and construction stocks lost ground but some firms still managed strong rises. HQC jumped 3.4 percent to VND3,000 a share and led the HCM City market for liquidity with 20.8 million shares traded. QCG went up to the ceiling price for the 16th straight session, ending at VND18,500 a share on volume of 3.3 million shares. For decliners, FLC dropped 2.3 percent to over VND7,700 a share with 16.3 million shares traded while SCR plunged to the floor price of VND12,100 a share with 8.6 million shares. Active sellers, however, raised turnover on the southern market, with volume and value improving 6.3 percent versus Wednesday to 219.6 million shares worth VND5 trillion. The put-through market was bustling with nearly 12 million shares worth VND530 billion traded, including large deals of GMD, NVL and MBB. The HNX-Index fell 0.44 point, or 0.48 percent, at 91.46 as decliners far outnumbered advancers by 116 to 60. Turnover on the Hanoi market slightly increased with 68.7 million shares worth VND736 billion changing hands, including modest bloc deals worth more than VND8 billion. Many blue chips dropped sharply. SHB, the volume leader, fell 1.4 percent to VND6,900 a share with 16.6 million shares traded, while VCG lost 2.1 percent to VND18,300 per share on trade of 4.5 million shares. Among gainers, ACB rose 0.4 percent to VND24,500 a share on volume of 4.4 million shares. SHB also went up 1.1 percent to VND9,400 per share with 1.7 million shares traded. http://english.thesaigontimes.vn/54030/Selling-pressure-sinks-VN Index.html

VNDIRECT holds derivatives market conferences 22/May/2017 Intellasia| VN Economic Times Conferences in Hanoi and HCM City to introduce investors to Vietnam's derivatives market, which will be launched in June. The VNDIRECT Securities Joint Stock Company (VNDIRECT) held a conference on derivatives on May 20 in Hanoi for investors who wish to take part in the new market. A similar conference is to be held in HCM City on May 21. Nguyen Hoang Giang, CEO of VNDIRECT, told the gathering he believes a derivatives market would bring a range of attractive investment opportunities to investors and be a highlight for investors along with the stock market. "Many new derivatives products, such as futures or warranties, are tools to help investors manage risk in their existing portfolio and increase profits," Giang said. Nguyen Tuan Cuong, director of Structured Products at VNDIRECT, told VET that although Vietnam's stock market has developed for 17 years, its products remain traditional. "A derivatives market would be a new tool in preventing risk when the stock market falls," he believes. Giang, however, also warned that derivatives are a complex commodity, so investors should be aware of the risks arising from such products. VNDIRECT and leading experts with many years of investment experience in the market will lead investors at the conferences to conquer initial difficulties, from the organisation of the stock market in Vietnam to actual trading. In addition, to minimise the investment cost for customers, VNDIRECT has launched a "Free Transaction" programme for all customers who open derivatives accounts at VNDIRECT from June 2 to September 2. VNDIRECT and the State Securities Commission, the Hanoi Stock Exchange (HNX), and the Ho Chi Minh Stock Exchange (HSX) will operate in a trading system to meet investment demand when the derivatives market is launched in June. VNDIRECT has also invested in additional systems to ensure the best derivative products are offered and will hold training sessions to ensure that investors are fully informed about derivatives and investments in Vietnam's stock market. http://vneconomictimes.com/article/banking-finance/vndirect-holds-derivatives-market-conferences

Frontier status: is Vietnam closer to an emerging market? 22/May/2017 Intellasia| Vietnamnet "Vietnam is working with MSCI (Morgan Stanley Capital International) on the Vietnamese stock market upgrading. They have criteria and if we can satisfy the criteria, our stock market will be upgraded into an emerging market," Nguyen Son, chair of the board of directors of the Vietnam Securities Depository centre (VSD), has said. As the Vietnamese stock market has been thriving in recent months with the VN Index growing by 10 percent in the first quarter, investors have one more reason to believe in the prospect of the stock market upgrading. According to Son, Vietnam is working with MSCI in the upgrading. MSCI has set up many criteria, including 3-4 major criteria. Vietnam can satisfy criteria on the market scale, the number of businesses with capitalisation value of billions of dollars and market liquidity. Regarding the requirement on market transparency, Vietnam still needs to deal with some problems, including information exposure in English. Vietnam has been improving the problem, guiding some businesses, especially ones in VN30 group, to help foreign investors better access information. The government has issued a decree on corporate governance which helps shareholders and businesses' board of directors operate more effectively. The openness of the market will also be a decisive factor to determine if the market can be upgraded into an emerging market. As for businesses operating in the fields where the state does need to set limitations, shareholders' general meetings can make decisions on how to open to investors. In the banking sector, the foreign portfolio investment (FPI) flow to Vietnam is strong, but there are still obstacles for the outflow. "I don't mean the weakness in the capital flow, but there still exist obstacles," Son said. Commenting about the prospect of the Vietnamese stock market upgrading, Nguyen Tri Hieu, a banking expert, said, like other experts, he is optimistic about the stock market, but 'cautiously optimistic'. "The VN Index increased very rapidly in 2016 and increased by 10 percent just in the first quarter of the year," Hieu said on Bizlive. "If this continues, I think the VN Index can reach the 740 point threshold or even higher. The capitalisation value of the Vietnamese stock market had reached $72 billion by the end of 2016 and I think the figure is $100 billion now," Hieu said. According to Finance Plus, the VN Index closed at 716.29 points on March 6, a 10-year high. The HNX Index closed at 86.55 points. The market capitalisation value had reached VND2.26 trillion, or 50.3 percent of GDP, the highest level since market establishment. http://english.vietnamnet.vn/fms/business/178494/frontier-status--is-vietnam-closer-to-an-emerging- market-.html

Dung Quat Refinery plans for IPO 22/May/2017 Intellasia| VNS Vietnam's first oil refinery operator Binh Son Refinery and Petrochemical Co Ltd (BSR) has planned its domestic initial public offering (IPO) with 5-6 per cent of its capital in the fourth quarter of the year. The information was announced on Thursday. BSR, which owns the $3 billion Dung Quat Oil Refinery, added that the remaining shares would be offered to strategic investors. Tran Ngoc Nguyen, BSR's general director, said it has selected a consultancy firm to carry out divestment plans at the three capital contribution units of PV Building, PMS and PVOS to prepare for the IPO. Answering a question on the modest rate of the IPO, Nguyen said BSR had carefully considered the number of offered shares and taken note of recommendations from the consultancy firm. Nguyen added that all information on business value and offered price would be announced next week after receiving approval from the Ministry of Industry and Trade. The IPO will be divided into two periods. During the first period, BSR will be transferred into a privatisation model, offering shares to its staff and an IPO which is set to be completed in 2017. It will complete the offering to strategic investors in the next 12 months. He expected BSR to sell up to 36 per cent of its shares to strategic investors with strong financial resources and experience in the refinery sector. Sharing the idea, Nguyen Hoai Giang, BSR's chair, said the privatisation model had been under consideration since 2013. Giang affirmed the determination for privatisation despite the unfavourable conditions of the financial market and decreasing oil prices, which had affected investors' confidence. He expected BSR would be privatised at the earliest to attract strategic investors to participate in the refinery's expansion and development in the future. Since its operations in 2009, the refinery's total revenue is VND834 trillion and profit is VND13 trillion. In the first five months of the year, its revenue reached VND35 trillion, representing an increase of 18 per cent from the set target. Temporarily closed for overall maintenance Dung Quat Oil Refinery in central Quang Ngai Province will be temporarily closed to undergo a nearly two-month full maintenance process. The general director said the third overall maintenance will start on June 5 and continue for 52 days. "Some 4,000 specialists, architects and workers, with special equipment and thousands of machines will participate in the maintenance. The maintenance aims to help the refinery run stably and safely and extend its operation time after 3-4 years," he said. The maintenance will be divided into seven main packages. Three foreign contractors from Singapore, Malaysia and South Korea will participate in the maintenance. However, BSR will take measures to shorten the scheduled time of 5-7 days. It is estimated that the refinery could increase revenue by VND250 billion and contribute VND30 billion per day if the maintenance time is shortened, he added. Dung Quat, the first-ever oil refinery of Vietnam, opened in 2009 with capacity of 6.5 million tonnes of crude oil annually, or 140 thousand barrels per day. The refinery was put into official operation in 2009 and has undergone overall maintenance twice in 2011 and 2014. http://www.vir.com.vn/dung-quat-refinery-plans-for-ipo.html

Cuu Long Petro Gas ServiceTransportation strives to satisfy shareholders 22/May/2017 Intellasia| VIR With the season of annual shareholders' meeting coming in, the leaders of hundreds of companies are working to organise a successful meeting. Cuu Long Petro Gas Service-Transportation is no different. Each season, there are companies that spend a lot of money on holding their annual shareholders' meetings (ASM). Some are forced to organise a second or even a third meeting. After checking off all the requirements for an ASM to be held, actually moderating a meeting is still difficult because some shareholders are not aware of their rights and obligations. At the 2017 ASM of Cuu Long Petro Gas Service-Transportation Joint Stock Company (HNX: PERCENT) held on May 18, though the company has met all targets set by its shareholders for the fifth consecutive year now, there were still disgruntled shareholders and the meeting lasted from 8 AM to 6 PM. According to the audited 2016 business results, the company earned a revenue of VND955.41 billion ($41.1 million), with a pre-tax profit of VND26.55 billion ($1.17 million), beating the target by a full 40 per cent. PERCENT submitted VND20.41 billion ($900,000) to the state budget, equal to 46 per cent of the target. These are positive results in the context that PERCENT has gone through significant difficulties in its core business in the past year: its taxi business was subject to heavy competition from Uber and Grab, its office car business saw a big drop in revenue and 60 per cent in profit, because PetroVietnam Transportation Corporation (PVTrans), a big shareholder of PERCENT, asked the previous leadership board to transfer most of the transportation orders to a subsidiary of PVTrans. PERCENT meets the same challenges at its ASM as most other companies. Some shareholders disregarded the rules of the meeting and spoke out of turn, interfering with orderly conduct through sheer power of voice. A shareholder asked the organiser to let shareholders vote by a show of hands instead of using the voter papers as specified by the event rules. Despite these difficulties, the company showed that it respected all opinions and acknowledged all shareholders. After a 10-hour meeting without a lunch break, the shareholders ratified the meeting minutes and the resolution at 6 PM. The chair of the meeting emphasised that due to the company leadership's great effort, PERCENT successfully divested its taxi business last year, keeping the office car business alive and expanding to water transportation by investing in a 9,000-tonne barge specifically built to transport coal and other goods. The chair added that if the company decided to sell the barge, it would make significant profit. PERCENT also made successful investment in the bond market. Regarding the incident when former leaders illegally transferred PERCENT assets to another entity, the company has filed a police report and mitigated part of the damage. The new board of director and the new company leaders promised to abide by the law, to build and carry out measures necessary to help PERCENT produce strong growth, and to serve the benefits of customers and protect the rights of shareholders and employees. The company is going to celebrate its tenth anniversary in June 2017. http://www.vir.com.vn/cuu-long-petro-gas-service-transportation-strives-to-satisfy-shareholders.html

Quoc Cuong Gia Lai plans paying 8.6pct dividend 22/May/2017 Intellasia| VNS Property developer Quoc Cuong Gia Lai JSC is planning to make an 8.6 per cent in-cash advance dividend payment to shareholders for 2017's business performance. This would be the first dividend payment that the company has made in the last six years. The first dividend payment was made in 2011, one year after the firm was listed on the HCM Stock Exchange, at a rate of 5 per cent. The expected dividend payment will be discussed at the company's upcoming annual shareholder meeting, which has been organised to sum up the firm's performance in 2016 and discuss business plans for 2017. Quoc Cuong Gia Lai will finalise the list of shareholders that are eligible to attend the annual shareholder meeting on June 2. The schedule and venue for the meeting will be published later. Shares of Quoc Cuong Gia Lai JSC, under code QCG, soared 4.5 times to close on Friday at VND19,750 per share from their all-time low range of VND4,300 per share, hit on March 21. Following the first three months of 2017, Quoc Cuong Gia Lai recorded VND269 billion in its first- quarter net combined revenue, triple the revenue recorded a year ago. However, its net profit was only VND2.5 billion as the company suffered from rising costs of goods sold and double lending interest. Quoc Cuong Gia Lai has been warned by the HCM Stock Exchange on a national scale as the company violated the market regulation on information disclosure at least three times in one year. http://bizhub.vn/markets/quoc-cuong-gia-lai-plans-paying-86-dividend_286272.html

Blue chips push up VN Index 23/May/2017 Intellasia| VNS The benchmark VN Index rose 1.2 per cent to 742.63 points on Monday morning as large-cap stocks continued their rise, giving the market solid momentum. Financial, realty and food-beverage stocks all rose, including big names such as BIDV (BID), Vietcombank (VCB), Vietinbank (CTG), Vinamilk (VNM), Masan Group (MSN), Saigon Securities Inc (SSI), VinGroup (VIC) and Kido Group (KDC). Inexpensive shares such as Hoang Quan Consulting-Trading-Service Real Estate (HQC), Ninh Van Bay Travel Real Estate (NVT), Quang Binh Import & Export (QBS) and Ha Long Investment & Consulting (HID) also attracted money inflow. HQC, NVT and QBS all hit their daily maximum rise of 7 per cent, while HID grew 4.3 per cent. On the Hanoi Stock Exchange, the HNX Index was up 0.6 per cent at 92.71 points. Around 210.4 million shares worth roughly VND4.1 trillion (US$182 million) were traded in the two markets. The afternoon session starts at 1pm. http://www.vir.com.vn/blue-chips-push-up-vn-index.html

NA action on debt pushes market up 23/May/2017 Intellasia| VNS Shares advanced on Monday on strong support from the banking sector, following a new National Assembly resolution to resolve bad debt. The benchmark VN Index on the HCM Stock Exchange edged up 1.40 per cent to close at 744.10 points. On the smaller Hanoi Stock Exchange, the HNX-Index increased 0.58 per cent to end at 92.71 points. Bank stocks were the biggest gainer on Monday, as eight of nine listed lenders advanced and one remained unchanged. The sector index recorded an average daily growth of 3.64 per cent, vietstock.vn data showed. BIDV (BID) hit the maximum rise of 7 per cent capped for a single trade on the HCM City's bourse. Other big banks including Vietcombank (VCB), Vietinbank (CTG) and Military Bank (MBB) increased 2- 5 per cent. Two banks on the northern Hanoi's exchange, Asia Commercial Bank (ACB) and Sai Gon-Hanoi Bank (SHB), leapt 1.6 per cent and 2.9 per cent, respectively. The entire banking system settled over VND610 trillion (roughly $27 billion) worth of non-performing loans (NPLs) in the 2012-16 period. Of the total, over 56 per cent were recovered by credit institutions, and the remaining were sold to the Vietnam Asset Management Company (VAMC), a government report released at the National Assembly's meeting on Monday showed. According to the report, the ratio of bad debts on balance sheet and unsolved bad debts sold to VAMC accounted for 5.8 per cent of total outstanding debts and investment of the banking system in the economy. This ratio would be over 10 per cent with hidden debts included. The government has submitted a new resolution on NPLs to the National Assembly for approval, including having domestic and foreign investors involving in this process. This resolution is expected to help remove bottlenecks in solving bad debts. "Stock market movement today reflected high investor expectations about this issue, as bank stocks surged and led the market," Tran Hai Yen, a stock analyst at Bao Viet Securities Co, wrote on a Monday's report. If approved by the National Assembly in this meeting session, the bad debt settlement resolution would be enacted shortly and helped speed up the bad debt solving process, Yen said. The market was bustling on Monday, with a total of nearly VND6.9 trillion ($304 million) flowing in the two exchanges while nearly 366 million shares were changed hands, over two-fold increases over the daily average volume and value seen last week. Foreign investors lifted their trades with a combined net buy value of nearly VND480 billion in the two markets following the information US-based MSCI Frontier Markets 100 Index raised the proportion of Vietnamese shares in the basket from 8.01 per cent to 12.63 per cent. It is expected this exchange-traded fund will pour about $27.8 million in the Vietnamese market in the coming months. http://vietnamnews.vn/economy/376901/na-action-on-debt-pushes-market-up.html

Experts: Correction risk seen rising this week 23/May/2017 Intellasia| The Saigon Times The stock market is facing rising correction risk this week as speculative stocks may come under strong selling pressure after their recent gains, according to securities experts. Ngo The Hien, deputy head of analysis at SHB Securities Company, said that cash flow has run strongly into penny and speculative stocks, sending them up even by 50-100 percent. Therefore, it is certain that investors will rush to lock in some profit. "We had seen rising selling pressure at penny and speculative stocks. However, the market saw cash flow shifting to large caps, then mid and small caps last week, putting penny stocks at the risk of correction this week," he said. Vu Minh Duc from Viet Capital Securities Company said that many speculative stocks have increased strongly. Earlier, only enterprises having good fundamentals or project transfer plans such as DXG, VPH, PDR and QCG received high cash flow, but now stocks with weaker fundamentals or having no supporting information have also seen active trading. However, these stocks will not see an immediate slump but facing gradual selling pressure in the near future, Duc predicted in the stock market news website tinnhanhchungkhoan.vn. Tran Duc Anh from the analysis department of Bao Viet Securities Company said that the VN Index has made nice rise since early this year but speculative stocks such as DLG, HQC, ITA and MCG has just advanced in the past one or two months. Stocks with good fundamentals have increased strongly given the main index surge, so they become less attractive. Therefore, all eyes are on speculative stocks, especially those with drastic developments in the past, Anh explained. Although some speculative stocks do have positive improvements in key business operations, the stocks of most firms in this group increase because they are favourites of investors at the moment. As a result, their rise is short-lived. In general, speculative stocks are facing correction risk. Investors should not buy stocks at high prices unless positive information related to their core business is confirmed, the expert added. Hien from SHB Securities Company said that the VN Index has reported a four-week winning streak with matching volume averaging out at over 200 million shares a session in the past two weeks. These are positive signs for the market outlook. Last Friday, the VN Index jumped to 733.82, higher than the previous peak at 732.87 recorded on April 12. Therefore, the market now has the nearest supporting threshold at 730 points, and the farther zone at 725-728 points. This week, the VN Index may not test the 725-point level but sliding mildly to the nearest supporting level of 730 points before bouncing back. Investors may consider buying stocks, especially blue chips during falling sessions, Hien said. http://english.thesaigontimes.vn/54064/-Experts-Correction-risk-seen-rising-this-week.html

Is thermometer of the economy deviating? 23/May/2017 Intellasia| NDH The stock market is about to go half way through 2017. The VN Index is still showing strong growth expectations with an increase of more than nine percent since the beginning of the year. The market is still receiving positive views when the liquidity increases to nearly five trillion dong per session. However, the market growth from the beginning of this year shows that the momentum of stocks in the market is clearly polarised. Of which, the real estate group becomes the bright star in the market with unprecedented price increases in recent years. Many stocks doubles, triples the price at the end of 2016. For example, DXG, PDR have nearly doubled compared to the beginning of the year. DIG stock of Development Investment Construction Corporation also swelled more than 50 percent, LDG stock of LDG Investment Joint Stock Company surged 230 percent, QCG stock of Quoc Cuong Gia Lai Joint Stock Company more than tripled. In the opposite position, in the agriculture, manufacturing and technology groups, which are capable of generating profits, creating jobs and paying regular dividends to shareholders, shares either fall or only rise modestly. For example, CSM of Caosumina, DQC of Dien Quang Lamp, NSC of Central Seed Corporation, DPM of Phu My Fertiliser, CSV of South Basic Chemicals, ELC of Elcom Telecom, GIL of Gilmex, VGG of Viet Tien Garment, DBC of Dabaco, FMC of Sao Ta Food, etc. It is worth saying that the government is looking to direct the cash flow into the manufacturing and business group in order to achieve sustainable growth and avoid the occurrence of asset bubbles as in the period of 2008. However, stock prices in the market are reflecting the reverse. *Manufacturing businesses are cautious The stock price increase or decrease in the market in a period cannot answer the aforementioned question because there are many stories behind the rise or fall of stock prices. Of which, there are also difficulties faced by each business, or unexpected increase in profits, or even inflation, price squeeze to obtain stocks. However, with much information received during this year's shareholders meeting, we can see the cautiousness of manufacturing businesses though many businesses are still doing business very well. One of the typical examples is Duc Thanh Wood (GDT), a household wood processing business for export whose business grows steadily, only targets the average growth rate of 10 percent per year. With the plenty of cash, many shareholders expect the company's management board to be more ambitious by investing in the expansion. However, GDT Chair of the Board Le Hai Lieu said that investment in the plant is fixed cost and the time to recover capital is slow, so the expansion must always have thorough and timely analyses but cannot rush. A business in technology sector is ELCOM (ELC). Despite a successful business year in 2016, the company still makes low business plan. This year, ELC targets to attain the revenue of 1.350 trillion dong, the profit after tax of 108 billion dong, growing four percent and 15 percent respectively over the same period last year. However, this plan, as per the analysis of BVSC, is relatively cautious compared with the ability to carry out. Gilimex the company with leading margin in the textile and apparel industry only target to earn 1.4 trillion dong revenue and 75-85 billion dong after-tax profit, increasing in sales and decreasing in profitability compared to the revenue of 1.290 trillion dong revenue and nearly 81 billion dong after-tax profit that Gilimex attained in 2016. The figure that GIL gives is much lower than the forecast of MB Securities at 1.549 trillion dong revenue and 107 billion dong profit after tax. For fertiliser business sector, although the results were not satisfactory in 2016, large businesses in the industry are still having relatively high return on investment. However, with the increasing competition from imports, most businesses in this sector have set very careful business plans. While Binh Dien (BFC) sets the profit target of just being equal to the previous year, DPM plans to lower its target by nearly 30 percent compared to last year. Or other well-known businesses in the manufacturing market such as Dien Quang Lamp (DQC) or CaMumia (CSM) have also made poor plans with the fear of competition particularly the competition from Chinese goods. *Real estate businesses confident with growth plan While manufacturing, agriculture and technology businesses are still rather cautious in their business plans, businesses in real estate sector are quite confident. Just recovering from the crisis, not to say completely healthy, now many real estate companies are continuing to draw ambitious plans. One of the worth noticing names is Green Land (DXG). In 2017, DXG sets a strong growth plan with the net profit of 3.3 trillion dong and the after-tax profit of 700 billion dong. Even DXG sets the target that from 2017, the company will start expanding the scale of investment and developing projects whose scale range from five to 20 hectares (before 2017, only projects with the scale of 2- 3 hectares were carried out). In 2015-2016, DXG reported a sharp increase in profits. However, one problem for DXG is that receivables skyrocket following revenue and profit. Short-term receivables as of the end of the first quarter were 2.616 trillion dong, of which, other receivables of DXG as of the end of Q1 were 2.075 trillion dong, up nearly 700 billion dong compared to the beginning of this year. Another name that is creating winds on the market is Phat Dat. As of the end of Q1/2017, the company is still holding the debt of nearly seven trillion dong. Of which, short-term and long-term loans amounted to approximately 3.2 trillion dong; short-term and long-term interest as of the end of Q1 reached 2.370 trillion dong, up 21 billion dong compared with December 31, 2016. Nevertheless, the company is still confident with its revenue plan of two trillion dong, and the after-tax profit of 336 billion dong in 2017, up 34 percent and 39 percent respectively from 2016. At the same time, this company is also confident with the plan to expand operations, focusing on implementing BT projects to get more land. Another case is DIG. This year, this company plans to earn 1.4 trillion dong revenue (up 22 percent year- on-year) and 128 billion dong profit after tax (up 94 percent). In addition, DIG also expects the investment in 2017 at 1.183 trillion dong. However, DIG has never been able to accomplish any of the plans that the Board of directors has made so far. Meanwhile, with negative cash flow for many years, this business has had to continuously borrow to finance. DIG's 2017 audited financial statement shows that the Corporation is borrowing nearly 1.740 trillion dong. These are just a few illustrations showing that investors seem to be expecting too much in the market, real estate stocks that neglect the manufacturing and business sector, which is the birthplace of the stable cash flow for the economy. And if considering the stock market as a thermometer of the economy, whether the economy is still growing by the heat of the real estate market while the manufacturing and agricultural sectors are facing with many difficulties?

Habeco targets 9 per cent increase in revenue 23/May/2017 Intellasia| VNS Hanoi Beer Alcohol and Beverage Joint Stock Corporation (Habeco) targets total revenue of over VND8.8 trillion (US$390 million) in 2017, up 9.1 per cent year-on-year. The brewer plans to earn pre-tax profit of VND1 trillion this year, up slightly from 2016, and dividends are projected at 20 per cent. The company's revenue in 2016 grew by 8 per cent to reach VND8.1 trillion. Pre-tax profit reached VND997.3 billion, up 0.6 per cent year-on-year. With this result, the dividend rate was adjusted upwards to 18 per cent, equivalent to VND417 billion. The company paid 10 per cent dividend in 2015. The Ministry of Industry and Trade (MOIT), Habeco's biggest stakeholder with 81.79 per cent capital, is expected to collect VND341 billion. At its 2017 annual general meeting of shareholders held last week, two members of the board of directors were dismissed, including Nguyen Thi Nga representing the Ministry of Industry and Trade and Tayfun Uner, CEO of Carlsberg Vietnam, which currently holds a 17.08 percent stake of Habeco. Do Xuan Ha was appointed to replace Nguyen Thi Nga from May 11 until the Ministry of Industry and Trade has made a decision on personnel. Habeco only elected one new member to the board, namely Soren Ravn, Business Development manager of the Carlsberg Group. With this change, Habeco temporarily has just four board members. Headquartered in Hanoi, Habeco is the largest beer producer in the North and the third-largest beer company in Vietnam, with popular brands such as Hanoi Beer and Truc Bach Beer. It owns 17 subsidiaries and nine affiliated companies. http://bizhub.vn/markets/habeco-targets-9-per-cent-increase-in-revenue_286276.html

Difficulties forecast for IPO of Dung Quat refinery operator 23/May/2017 Intellasia| The Saigon Times Binh Son Refining and Petrochemical Co Ltd (BSR), the operator of Dung Quat Oil Refinery, will conduct its IPO in the fourth quarter with 5-6 percent of shares to be offered, but certain difficulties are in sight, said BSR board chair Nguyen Hoai Giang. At a press conference at the company headquarters last Friday, Giang said his firm would send a evaluation report to the Ministry of Industry and Trade in the following week. The government will deliberate over the plan for equitising BSR next month, and hopefully approve it in July or August. "BSR is the largest State-owned enterprise to carry out the IPO over the past few years. We believe everything will go smoothly since the company's business indicators are very good," said Giang. Since its trial run to this May, Dung Quat has met 40 percent of the nation's fuel demand, with total revenue of $40 billion and tax payments of $6 billion for the State budget, said BSR general director Tran Ngoc Nguyen. "Thus, up to this point, BSR's contribution to the State budget has doubled the total investment of about $3 billion in the refinery," he said. The facility's total profit after tax has amounted to some VND13.4 trillion, he added. The rates of return in the first four months of 2017 were very positive, with return on equity (ROE) reaching 8.67 percent, return on assets at 4.81 percent and capital conservation coefficient 1.091, Nguyen said. Besides the request of Russia's Gazprom Neft, BSR has received proposals for cooperation from many foreign oil and gas companies, international financial institutions and banks, he added. "Our business is thriving because when the oil price goes down, the final downstream stage (refinery) is the most effective (compared with the upstream stage)," Nguyen said. The project for expansion of Dung Quat refinery will be handed over a cleared site late this June and is expected to be completed by the end of 2021. Some $1.2 billion, or 70 percent of the capital needed, will be borrowed for the project, Nguyen said. When the expanded refinery comes into operation, its processing capacity will be 8.5 million tonnes of crude oil per year, instead of 6.5 million tonnes, meeting 50-60 percent of the fuel demand nationwide. Difficulties However, when the refinery was built in 2009, it was designed to produce gasoline meeting euro 2 emission standards. In 2011, the government mapped out a schedule for adoption of euro 4 emission standards starting in 2017. Chair Nguyen Hoai Giang admitted such limitation, saying, "The facility's equipment system can only meet euro 2 emission standards. It is very complicated to apply euro 4-5 standards now. We have to rebuild the industrial workshops, modify the assembly lines, and add technological lines." "We cannot suspend (the refinery), still have to make euro 2 gasoline. Sometimes our desires cannot meet objective requirements," he added. Giang described the policy of using euro 4 gasoline as suitable, but it is necessary to have a roadmap and it is not until 2022-2024 will Dung Quat refinery be able to meet the requirements. On the prospects of the upcoming IPO, the chair deemed it also difficult compared to the IPO plan that BSR prepared in 2013. "Now (IPO) is much tougher than in 2013. Poor financial market, public debt, and scandals of oil and gas companies are bad waves, affecting the trust of investors," he said. "Moreover, with the downward trend in the price of crude oil, whether we have enough finance to expand the refinery or not is a big problem." However, Giang insisted: "We believe the IPO will be successful." http://english.thesaigontimes.vn/54048/Difficulties-forecast-for-IPO-of-Dung-Quat-refinery- operator.html

TTC Group seeks to take over HAGL's sugar business 23/May/2017 Intellasia| VIR Bien Hoa Sugar Joint Stock Company and Tay Ninh Sugar Joint Stock Company, two subsidiaries of TTC Group, will take over the sugar operation of Hoang Anh Gia Lai in a bid to make TTC Group the biggest sugar producer in Vietnam in terms of output. The boards of directors of Bien Hoa Sugar (HoSE: BHS) and Tay Ninh Sugar (HoSE: SBT), the two biggest sugar producers under TTC Group, have just approved the strategic investment in Hoang Anh Gia Lai Cane Sugar Limited Company. The two companies are going to hold extraordinary shareholders' meetings at the end of May in order to ratify the merger. Specifically, BHS is going to buy 60 per cent of HAGL Sugar from Hoang Anh Gia Lai Agricultural Joint Stock Company (HoSE: HNG). The long-term financial investment contract has a value of VND798 billion ($35.1 million) and will be carried out by the end of 2017. TTC Tay Ninh Sugar will buy 40 per cent of HAGL Sugar from HNG and an individual shareholder. Though the investment has only been announced just now, HNG already assigned management positions and the right to operate the sugar factory, the sugar cane farm, and related assets to SBT. Nguyen Quoc Viet, key personnel at TTC Group, has been assigned as the general director of HNG. He is currently also the deputy general director of BHS. HAGL Sugar was established in Vietnam. It owns 100 per cent of Hoang Anh Attapeu Cane Sugar Limited Company, which owns a factory and a farm in Laos. The parent company HNG reported a net profit of VND7.16 billion ($315,500) in the first quarter of 2017, down 92 per cent on-year. The profit broke a three-quarter loss streak for the company. http://www.vir.com.vn/ttc-group-seeks-to-take-over-hagls-sugar-business.html

Finance

Reference exchange rate goes down 2 VND 22/May/2017 Intellasia| VNA The State Bank of Vietnam set the reference VND/USD exchange rate at 22,191 VND per USD on the morning of January 23, down 2 VND from the end of last week. With the current +/- 3 percent VND/USD trading band, the ceiling exchange rate is 22,856 VND per USD and the floor rate is 21,526 VND per USD. Meanwhile, Vietcombank bought one USD for 22,530 VND, and sold one USD for 22,600 VND, unchanged from the end of last week. BIDV listed the buying rate at 22,520 VND per USD and the selling rate at 22,590 VND per USD, down 10 VND. In Eximbank, the buying rate was 22,510 VND per USD, while the selling rate was set at 22,600 VND per USD, down 10 VND. http://en.vietnamplus.vn/reference-exchange-rate-goes-down-2-vnd/106275.vnp

Fitch revises outlook for Vietnam to positive 22/May/2017 Intellasia| VNS Containers loaded at Sai Gon Port. Fitch has revised outlook for Vietnam to positive from stable.Photo baodautu.vn Fitch Ratings has revised its outlook on Vietnam's long-term foreign and local currency issuer default ratings (IDR) to Positive from Stable and affirmed the ratings at "BB-." This was stated by the credit rating agency in a press release published on its website on Thursday. The credit rating agency said Vietnam's ratings reflected strong growth performance and prospects, persistent current account surpluses, manageable debt service costs and sustained foreign direct investment inflow. However, the ratings also reflected a high public debt ratio, low foreign-exchange reserve buffers, macro-prudential and banking sector risks and some structural indicators being weaker than those of peers, including per capita income and human development standards. The policy-making focused on macroeconomic stability had supported strong levels of foreign direct investment (FDI) and helped maintain robust economic growth, Fitch said. It cited statistics showing that Vietnam's real GDP expanded at 6.2 per cent in 2016, supported by the country's export-oriented manufacturing sector and steady expansion in services, despite weakness in the mining and quarrying sectors from ongoing oil and gas industry downturn. Fitch forecast that real GDP growth would improve gradually to 6.3 per cent in 2017 and 6.4 per cent in 2018, fuelled by continued FDI inflow into the manufacturing sector and strong private consumption expenditure. Vietnam's foreign-exchange reserves also continued to improve to reach $37 billion by the end of 2016, from $28.5 billion in 2015. Government debt continued to rise. Based on preliminary estimate of authorities, government debt to GDP rose from 50.1 per cent at the end of 2015 to 53.4 per cent at the end of 2016. If explicit government guarantees were included, overall public debt reached 63.7 per cent, just short of the official 65 per cent debt ceiling. Fitch expected that Vietnam would avoid breaching the debt ceiling as the government reaffirmed its commitment to remain within the ceiling through fiscal measures and limits on guarantee issuance. Fiscal deficit was expected to remain close to 5.7 per cent of GDP in 2017-18. Although Fitch's banking sector outlook for Vietnam is stable, some challenges remain. The agency believes the large stock of non-performing loans (NPLs) is likely to take time to resolve due to legal impediments and the 2.5 per cent reported system NPL ratio at the end of 2016 understates actual asset quality issues. "While improving economic performance is likely to support lower NPL formation, a rapid and sustained increase in credit growth poses a risk to financial stability in the medium term," Fitch said in the press release. Overall credit growth at the end of 2016 was some 18 per cent and the official credit growth target for this year has been capped at 18 per cent. Moody's Investors Service late last month also affirmed the government of Vietnam's B1 issuer and senior unsecured debt ratings and revised the outlook to positive from stable. http://vietnamnews.vn/economy/376726/fitch-revises-outlook-for-viet-nam-to- positive.html#5fBRdgc4hQVvldR8.97

VN financial inclusion focuses on tech 22/May/2017 Intellasia| VNS Financial inclusion has been an accelerating global phenomenon recently, with financial services being provided at affordable costs to disadvantaged and low-income segments to increase earnings, alternate social capital flow and promote economic growth, a conference heard on May 19 in HCM City. Speaking at 'Digital technology the great engine of accelerating financial inclusion in Vietnam,' Assoc Prof Nguyen Kim Anh, deputy governor of the State Bank of Vietnam, said: "Financial inclusion will contribute to implementing 7 out of 17 sustainable development goals by 2030 and poor countries might achieve breakthroughs in financial inclusion. "Digital technology will help banks accelerate financial inclusion, expanding their financial services to remote and rural areas, saving expenditure and developing sustainably." Nguyen Thi Hoa, deputy head of the central bank's Banking Strategy Institute, said: "Good financial inclusion is able to promote economic growth, create more jobs and contribute to poverty reduction and hunger elimination." She attributed three achievements to Vietnamese banking inclusion. She said the ability to approach financial services is increasing thanks to development of representative offices as well as modern baking service styles. "Banking service products are more and more plentiful, the quality is getting better and better, and many services can be provided 24 hours a day, especially with internet banking and mobile banking services." A large number of people, even poor, can benefit from banking activities, she said. "Vietnam does not have any national policy to develop financial inclusion and has only a limited legal framework for banking activities and a shortage of database for individual and organisational clients. "All these have hindered financial inclusion." She said promoting the role of digital technology to develop financial inclusion requires expanding internet banking and mobile banking, banking services, providing information and increasing understanding of banking services, completing the legal framework, and completing the financial and telecom infrastructure. "Having a young population with up-to-date technology, a high rate of mobile phone and internet use and financial institutions using modern technology are favourable conditions for Vietnam to speed up financial inclusion." Ivan Mortimer Schutts of the World Bank said: "It is important for the financial sector to be well protected and overseen by regulators to preserve its integrity and stability. "It is also important that the State Bank of Vietnam takes interest in promoting financial inclusion and makes sure efforts expended on technology innovation do not undermine the stability of the market and or contribute to risks that happen to the economy or consumers." Cấn Van Lực, a banking expert, spoke about the current situation of financial inclusion in Vietnam. He said financial inclusion is not nationally synchronised and enforcement of norms is weak, the level of financial coverage is low, the network of financial institutions is unevenly distributed and mainly in urban areas only 10 per cent of rural communes have banks' transaction points, which in turn account for only 10 per cent of transaction points nationwide micro-finance institutions operate in an ad-hoc manner and the informal financial system involving family, friends, black credit, pawn shops and others is not properly regulated. "Credit to SMEs accounts for around 22 per cent of total outstanding loans, and access to finance is still difficult. "Digital technology will reduce 80 90 per cent of transaction and management costs, minimise the need to establish physical branches, increase access to finance for people in rural, mountainous areas." Besides, digital technology will use various distribution channels like mobile and internet banking, ATMs, points of sales, social networks and Internet of Things, diversify products and services and meet customer needs. "Digital finance could boost the GDP of emerging economies by $3.7 trillion by 2025." Lực also suggested that credit institutions should consistently carry out the decrees on non-cash payment and increasing access to banking services and microfinance development, and enhance payment risk and technological risk management. At the first parallel discussion titled "Strengthening information security in the digital world towards advancing financial inclusion", an official from the State Bank of Vietnam's informatics technology department presented information security strategies for banks in the digital age. Financial and banking experts spoke about the digital technology applications required for accelerating financial inclusion in Vietnam such as identity and access management solutions for online banking transactions, block chain technology to improve the efficiency of banking operations and information security solutions for mobile banking. The second session with theme "Developing digital banking services & payment innovation towards accelerating financial access" focused on orientation and solutions to accelerate financial inclusion in Vietnam in 2016 20, orientation to develop digital banking and financial services at commercial banks and encouraging non-cash paymetns to increase financial literacy. IT enterprises spoke about digital solutions for accelerating financial inclusion in Vietnam like mobile wallets and virtual customer care centres. Banking Vietnam is an annual ICT event organised by the State Bank of Vietnam and IDG Vietnam to exhibit and introduce the latest technologies and IT applications for creating new banking products and services. http://vietnamnews.vn/economy/376742/vn-financial-inclusion-focuses-on-tech.html

Digital banks expected to fill the gap between Vietnam and formal financial institutions 22/May/2017 Intellasia| Dau Tu BDS In Vietnam, the number of adults having accounts at formal financial institutions have increased significantly but are still much lower than in regional countries. In this context, digital banks are expected to quickly fill this gap. Financial Inclusion is the provision of appropriate and convenient financial services, especially for low- income and vulnerable people, to enhance the accessibility to finance, helping to generate livelihood opportunities, capital inflows and savings in society, thereby promoting the economic growth. Regarding the ratio of deposits/GDP and credit/GDP, Vietnam is achieving relatively high level in terms of the scale of the financial system (compared to GDP). Specifically, as of December 31, 2016, the total deposits of economic organisations and residents in the banking system reached 5.998 trillion dong (equivalent to 134 percent of GDP). The total outstanding loans for the economy was 5.505 trillion dong (equivalent to 123 percent of GDP). The growth rate of deposits and outstanding loans to the economy usually maintained at more than 10 percent to 17-18 percent per year. However, the survey by the World Bank (WB) in 2014 (Findex 2014) showed that the proportion of mature adults having bank accounts in Vietnam was 31 percent. According to calculations of the Payment Department (under the State Bank), this index was 39.8 percent in 2016. Nguyen Thi Hoa, deputy director of the Banking Strategy Institute (SBV), said that despite the increase, the proportion of adults with bank accounts in Vietnam is generally still low compared to other countries in the region. In 2014, this index in China reached 78.3 percent, compared to 80.7 percent in Malaysia, 78.1 percent in Thailand, and 52.8 percent in India. "In terms of the proportion of adult borrowers and adults who have savings deposits at licensed financial institutions, there is a difference. If the proportion of people with savings deposits in Vietnam is much lower than in other countries, the proportion of people having loans is higher", said Hoa. This problem, according to experts, is also partly because the income of a large number of people is still low so the ability to accumulate is not high. In addition, the "coverage" of the banking network in agriculturerural areas is quite thin, especially in remote, rural areas. Meanwhile, these areas now account for over 70 percent of Vietnam's population. So far, Agribank and the system of People Credit Funds are still playing leading role in providing financial services to the agricultural and rural sectors. While many other joint stock commercial banks are still hesitant to develop the system to these areas. The total outstanding loans of credit institutions to agriculture and rural areas have not reached 25 percent. To Thi Dieu Loan from LienVietPostBank shares specific examples from India, a country with 60 percent of the population living in rural areas. According to a 2006 World Bank report, the proportion of people living below the international poverty line in India was 42 percentthe largest percentage in the world. This is also the country whose underground economy (including corruption, smuggling, black credit, tax evasion...) contributes as much as 19 percent of GDP (World Bank report 2010). The illiteracy rate in India is very high, at 25.96 percent in 2011, of which the illiteracy rate is 34.54 percent for women and 17.86 percent for men. With the aforementioned economic characteristics, financial inclusion is always a priority in India. Accordingly, the Bank of India (RBI) had a series of policies that promoted the development of technology infrastructure, providing an environment for the development of the ecosystem of payment services. Specifically, the Mobile Banking policy officially issued in October 2008 and the regulations on electronic money issued in 2009 are an important legal precondition. Or mobile network operators (MNOs) can become bank agents and provide prepaid payment services (PPIs). In 2014, RBI is expected to license "payment banks" which is an upgrade form of PPIs. This would increase restrictions relating to banks' liability and payments. As a result, the number of bank accounts in India have risen to around 100 million between 2011 and 2013. As of 2014, more than 50 percent of adults in India had accounts of a financial institution (compared to nearly 70 percent of adults in other BRICS economies). For Aadhaar personal ID programme, as of the end of Q1/2014, there were 650 million participants, an average of one million participants a day, most of whom were low income people, and street children. "Especially, from 2010 to 2012, the number of mobile banking users here increased 277.68 percent (from 5.96 million to 22.51 million users) and the transaction value had a breakthrough growth of 875.6 percent (from 6.14 billion rupees to 59.9 billion rupees). However, as of 2014, the proportion of customers using mobile banking services is still low (only 22 million customers out of 350-500 million customers having mobile phones)", she added. As per Hoa, it is necessary to expand the system of service providing channel in a diversified direction, especially focusing on new and highly effective channels such as internet banking and mobile banking. The emergence of new service delivery models such as banks with telecommunications companies, financial technology companies, or agent bank model shows a large number of potential development directions in the service supply channel. In addition, it is necessary to develop financial products and services in line with the demand of consumers. The healthy competition among credit institutions is the most important motivation for the creation and development of a customer-oriented product system. Therefore, the legal system and management measures need to be finalised in order to promote healthy competition in the market. Apart from creating a creative and competitive space, appropriate consumer protection measures should also be paid attention to and there needs to have regulations to ensure the liability of the financial service provider. However, on the part of users, in order to improve the accessibility to services, it is necessary to base on the improvement of knowledge and financial skills of the people so that they can understand and use provided services. An important factor that Hoa mentioned is the financial infrastructure (especially payment infrastructure) and telecommunication infrastructure. Service providers can only provide service to customers quickly, smoothly and securely on the basis of infrastructure elements that are guaranteed to operate safely and smoothly. Therefore, the completion of financial infrastructure and telecommunications infrastructure must be focused and invested with appropriate resources. "The provision of financial services, especially modern financial services, can only take place on the basis of a clear and transparent legal framework, which specifies operational ways, rights and obligations of involving parties. Therefore, it is required to gradually complete legal framework for the provision of financial services, and adopt appropriate management policies for service delivery organisations, and develop a legal framework for protection of legitimate interests of customers using financial services. The supervisory and management capacity of direct management agencies such as the State Bank (for banking services), the Ministry of Finance (for insurance services) also needs to be improved", emphasised Hoa.

Banking services and opportunities from digital technology 22/May/2017 Intellasia| Vneconomy Digital technology has changed the performance of traditional financial institutions and promoted consumption. Digital technology solution has created an evolution on the financial market and the method of providing products and services. Compared with traditional banking, digital technology-based services make a huge difference, reducing banks' cost and easing customers' access to banking products and services. More opportunities from digital banking With the internet growth rate of nine percent/ year, ranking 15th in the world, it is said that Vietnam has a good basis for building a digital banking system. A recent survey has shown that about 28.5 million Vietnamese people (roughly 30 percent of the population) are using smartphones and 52 percent of the population are using the Internet. Banking expert, Can Van Luc, director of the BIDV Training School, says that the explosion of information technology has led to the development of digital banking and Vietnam is not out of the trend. In fact, the proportion of digital banking users in the total number of banking service users in Vietnam is constantly increasing. In 2011, the proportion was only seven percent, but increased to 44 percent in 2014. This number is expected to continue rising in the coming years. Besides, the booming of technology has helped banks accelerate the application of digital technology into their business through the development of a wide range of products and services satisfying the needs of non-cash payment in the economy. These products and services include: e-customs clearance, tax payment via the Internet, collection of electricity bills via Internet/ Mobile Banking/ POS channels of the bank or payment intermediary's e- wallets, payment for train and air tickets through online payment system or bank cards, payment for tuition fees, hospital fees through e-banking channels. According to many experts, digital technology-based services are creating benefits for the bank, especially in terms of reducing costs. In addition, digitisation of financial services also helps service providers increase the profitability needed to serve the growing clientele. At the workshop entitled " Digital technology the great engine of accelerating financial inclusion in Vietnam", organised by the State Bank of Vietnam and International Data Group (IDG) in the event of Banking Vietnam 2017 in HCM City on May 18th and 19th, Lee J. Volante, Head of Strategic Engagement, Asia Pacific of Temenos, said that banks could cut costs by 25 percent by adopting digital technology into their business. Along with reducing cost, Lee J.Volante insisted that investing in digital technology would also help banks increase their profits. The data quoted by Lee J.Vonlante from McKinsey's analysis shows that digital technology can contribute up to 45 percent to net income of retail banking at digital technology leading banks. Can Van Luc forecasts that by 2020 about 40 percent of sales revenue of banks will be from mobile and mobile network and about two thirds of banking operations will be undertaken by IT systems. Supporting the aforementioned comments, deputy CEO of Vietcombank, Dao Minh Tuan believes that in the context of decreasing income from credit activities, focusing on digital technology based products and services to increase proportion of service revenue in the total revenue is a necessity. Creating value-added services for customers With digital banking, customers can make transactions anytime, anywhere, as long as they have an Internet connection, there is no need to go to the bank. Sharing at the workshop, Sathish N, vice President of Product Development- SunTec Business Solutions, said that what customers need was that service providers provide them a comprehensive package of real- time solutions that helps simplify their daily life. "In order to satisfy customers' expectations in the digitisation period, banks are required to study and innovate to add values to their customers' lifecycle and maximise value on the digital ecosystem," Sathish N emphasised. In Vietnam, in order to better meet the needs of customers, besides the development of digital products and services, banks also actively cooperate with Fintech companies payment intermediaries, especially in payment and lending. Statistics show that there are about 40 active Fintech companies, most of which focus on payment. More than half of Fintech startup businesses in Vietnam are providing consumers with online payment tools, or providing a POS/mPOS digital payment solutions. Others operate in other areas such as capital-raising, online lending, personal financial data management, digital banking, etc. From the perspective of banks, Dao Minh Tuan said that both banks and Fintech have their own advantages and can exploit each other. Specifically, the advantages of the bank are: long-standing relationships with customers, specific and strict legal corridors, experience in risk management, liquidity, anti-money laundering, etc. For Fintech, using latest technology to build user-friendly interfaces is their competitive advantage. Moreover, due to not owing basic financial infrastructure facilities, Fintech outperforms banks in capturing core customer values from large amounts of data to provide better and faster services. On that basis, Dao Minh Tuan says that banks and Fintech need to "cooperate" to create added value for each service and product provided to customers. Being aware of that advantage, Vietcombank also cooperated actively with Fintech companies. So far this bank has cooperated with 10 Fintech partners in developing products and services meeting the needs of consumers. Strict adherence to risk management regulations The benefits from using digital technology in banking operations are huge, but digital banking development is also accompanied by many information security risks. Furthermore, if IT projects are either delayed or exceed budget or are of poor quality, this will negatively affect customer transactions as well as bank performance. Therefore, to ensure the safety of banking transactions, Can Van Luc strongly advises banks to strictly adhere to regulations on technology risk management, data protection, security, customer information confidentiality, etc. Besides, there should have a consistent commitment of banks' leaders when developing digital banking. From the perspective of banks, Dao Minh Tuan said that not only banks but also businesses are concerned about confidentiality. For banks, information security is always a top priority because information is the property of banks. Therefore, whatever products and services are developed, traditional and core products must be remained and secured. It is not possible to develop digital banking but abandon core banking applications, which will not be safe for banking transactions. Thus, opportunities always go hand in hand with risks. In order to grasp the potential opportunities that digital finance can bring, Ms Nguyen Thi Hoa, Institute of Banking Strategy (State Bank of Vietnam) believes that the government, banks as well as the private sector should aim at building a diversified, stable and sustainable financial service market. In addition, the regulatory corridor should be able to manage market risk for the whole system, and create a mechanism and space for service providers to innovate and compete fairly. Besides, it is necessary to develop a highly competitive market and stimulate suppliers to develop advanced financial products and services. When all elements of the financial and technology ecosystem operate in a coordinated fashion, access to financial services is accelerating, digital finance will be an important factor to drive financial inclusion in Vietnam.

Banks compete strongly in bancassurance 22/May/2017 Intellasia| Tri Thuc Tre Developing credit at a high rate and for a long time has left severe consequences for Vietnam's banking system in the period of 2007-2012. After five years of restructuring and settling bad debt, the bad debt in the balance sheet and off the balance sheet of the whole banking system still amounted to 8.86 percent as of December 31, 2016, according to the data released by the State Bank of Vietnam (SBV). The G-12's data show that the Net Interest Income (NII) still accounts for 80-85 percent of the total operating income (TOI), much higher than the figure of 65-70 percent of regional banks such as Thailand and Indonesia or the 55 percent of US commercial banks. Facing this situation, many banks have taken strategic steps to increase their Net Fee Income (NFI). Traditional products, which generate a large portion of income from service fee for banks, such as payment and money transfer, account management, or consulting and guarantee. However, in the context of the intense competition among banks, the fee revenue from the aforementioned services is on the downward trend as banks often have to carry out marketing programmes by exempting fees or reducing service fee to a very low level to maintain relationships with customers. For example, some banks exempt entire inter-bank transfer fees or some banks waived entire money withdrawal fee from ATMs of all banks in the system. As a result, the NFI/TOI of some banks did not decrease but tended to increase. This is why it is very difficult for Vietnamese banks to improve their ratings over the past several years. Many large financial corporations in the region and in the world have established life insurance companies alongside banks to carry out strategies to increase revenues from service fees as well as capital with low costs. However, in Vietnam, not many corporations can do the same thing due to different reasons such as capital, management level or legal regulations. Instead, banks have now actively cooperated with Life insurance companies to increase their income from selling additional insurance products to their existing customers. That is Bancassurance. The insurance market in general and life insurance market in particular in Vietnam are recording an average annual growth rate of up to 20 percent. This is considered as a fertile land for insurance companies to exploit. The current life insurance market mainly focuses on three major companies, including Bao Viet, Prudential and Manulife. Because of the widespread network of branches and the extensive database of existing clients, insurance companies are often willing to pay huge commissions to banks. The maximum commission rate can be equal to the full charge of customers during the first year of the contract. Given the huge potential of the market and the aggressiveness of insurance companies, Bancassurance will witness an intense competition among local banks in the near future.

Interbank interest rates continue to decline 22/May/2017 Intellasia| Tri Thuc Tre As per the report of Bao Viet Securities Company (BVSC), interbank interest rates last week tended to decrease (0.23 percent0.37 percent) for all terms. Specifically, the average overnight interest rate fell 0.23 percent to 4.55 percent per annum; the 1-week average interest rate decreased 0.37 percent to 4.41 percent per annum and the 2-week average interest rate lessened 0.3 percent to 4.45 percent per annum. Also in the past week, the State Bank newly injected 6.540 trillion dong through OMO while the amount of money matured in the week reached seven trillion dong. "Thus, 460 billion dong was net withdrawn via this channel. Meanwhile, SBV did not issue treasury bills for all maturities, suggesting that the liquidity of the banking system has gradually returned to redundancy state", said BVSC.

Tentative banks slow hi-tech agricultural credit package 22/May/2017 Intellasia| VIR There is a VND130-140 trillion ($5.72-$6.16 billion) credit package for hi-tech agricultural projects, however, few firms have been able to access it due to cautious banks. Difference between lending criteria of MARD and banks The guidance on the VND100 trillion ($4.4 billion) credit package for hi-tech agricultural projects was issued by the Ministry of Agriculture and Rural Development (MARD) and the State Bank of Vietnam (SBV). With the participation of nearly a dozen banks, the credit package's value has increased to VND130-140 trillion ($5.72-$6.16 billion). However, according to a source of VIR, only a handful of firms can get disbursement from this credit package. Agribank is the leading lending, having provided loans for 18 firms and hi-tech agricultural projects. Many firms said that the banks' lending procedures are strict, although MARD's criteria are quite simple. Responding to firms' complaints, many banks said that they wish to provide capital for hi-tech agricultural projects, but only a few applicants meet their criteria. Talking with VIR's reporters, Nguyen Thi Phuong, deputy general director of Agribank, said that, "When agreeing to finance a firm's project, banks become project investors. Thus, banks have a vested interest in ensuring that the firms themselves are efficient and the projects feasible and capable of recovering the investment capital in the future." Similarly, Nguyen Duc Huong, senior advisor of LienVietPostBank, said that banks have surplus capital and are looking for good projects. If firms have feasible projects with a high likelihood capacity of recovering capital, then garnering investment capital is a simple problem. Feasibility is key What firms usually complain about the most when submitting application for loans is the collateral for their projects, because agricultural lands have low value, while the assets on these lands and factories are not considered collateral. Nevertheless, many banks insist that if the projects are feasible enough, they do not ask for collateral. "We do not require collateral, we just look at the projects' feasibility and risks involved during all stages of investment, manufacturing, consumption, and the capacity to recover capital," Phuong said. Previously, many hi-tech agriculture projects, such as the hi-tech egg processing plant of DTK Phu Tho Co., Ltd, and Ba Huan Co., Ltd, have borrowed hundreds of billion VND from banks without collateral. To approach these loans, firms have to be transparent and publicise all relevant information, as well as invite banks to participate in the project from the beginning, from the stage of planning, to supervising the projects' construction, cash flows management, and selling the products. Nguyen Duy Hung, chair of The PAN Group, said that if a project has capital but fails to determine the products and market, the possibility of failure is high. "The foundation for an investment decision in hi-tech agricultural projects is market demand, and only high-value agricultural products can apply hi-technology to the production, as the production cost for these products is much higher than usual," Hung said. It is rumoured that many firms are racing to carry out hi-tech agriculture projects with the aim of borrowing from the credit package, although the feasibility of recovering capital is not verified. The market for agricultural products is not stable, while hi-tech agricultural products usually have high selling price, thus, it is more difficult for firms to sell their products. Therefore, if banks decide to lend too easily, it may lead to huge consequences for firms and banks. http://www.vir.com.vn/tentative-banks-slow-hi-tech-agricultural-credit-package.html

Banks required to intensify market stabilisation loaning programme 22/May/2017 Intellasia| SGGP News The Governor of the State Bank of Vietnam (SBV) has sent a document asking credit institutions and SBV branches to intensify the market stabilisation loaning programme. According to the requirement, SBV branches in provinces and cities should be proactive to grasp information and consult provincial and municipal people's committees on measures to carry out the programme efficiently. They should coordinate with local agencies to choose necessary commodities produced domestically with good quality, food safety and reasonable prices to attend the programme and encourage businesses to join hands. Credit institutions have been asked to provide the programme with loans at suitable interest rates and combine it with Bank-Business Connectivity Programme, broaden the list of borrowers covering distributors, traders of subsidised goods, businesses from priority fields, those attending regional connectivity models, value chains, hi-tech applied agriculture and clean farm produce production. http://sggpnews.org.vn/business/banks-required-to-intensify-market-stabilisation-loaning-programme- 66896.html

Vietinbank appoints new deputy general director 22/May/2017 Intellasia| VNS Vietnam Joint Stock Commercial Bank for Industry and Trade's (VietinBank) board of directors has appointed Hiroshi Yamaguchi as the new deputy general director of the bank from May 15. Hiroshi Yamaguchi was born in 1966 in Japan. He was previously working for the Bank of Tokyo- Mitsubishi UFJ (BTMU), which owns 19.73 per cent of Vietinbank. He had many years of experience in the banking industry since 1990 by holding key positions at BTMU, such as head of industry research, head of corporate banking and head of the Asian corporate banking division in New York. Hiroshi Yamaguchi has replaced Hiroyuki Nagata, who was dismissed as a member of the board of director's during Vietinbank's annual shareholders meeting in April 17. http://bizhub.vn/banking/vietinbank-appoints-new-deputy-general-director_286257.html

Top Apec finance officials review priorities 22/May/2017 Intellasia| VNS Senior financial officials of the 21-nation Pacific Rim Apec grouping reviewed the progress of their recent cooperation activities and will submit the outcome of their talks to the Finance ministers Meeting in October. The officials' two-day meeting which ends today in Ninh Binh focuses on the priorities initiated by Vietnam and approved at the Apec Finance and Central Bank Deputies Meeting in Nha Trang City in February. The four cooperation priorities include long-term investment in infrastructure; disaster risk financing and insurance (DRFI); tax avoidance through base erosion and profit shifting (BEPS); and cooperation in the financial field. "This is an important mid-term meeting that reviews the progress of cooperation activities and proposes deliverables to the Finance ministers Meeting in October," said Vu Nhu Thang, director of the International Cooperation Department under the Ministry of Finance, who is also Senior Financial Officials Meeting (SFOM) Chair 2017, in his opening remarks. On the first day of the meeting, officials reviewed the global and regional economic and financial outlooks, discussing risks that the Asia-Pacific region is facing, as well as forecasting regional prospects. Apec member economies and international organisations (International Monetary Fund, World bank and Asian Development Bank) shared the view that the global and regional economic growth was stable with positive growth momentum that proved supportive to the policy setting in each member economy. The meeting recommended Apec member economies maintain the current fiscal policy stance, increase investment, especially in human and infrastructure development, while intensifying cooperation in multilateral frameworks. Thursday's meeting also reviewed the implementation of the policy priorities including long-term investment in infrastructure and base erosion and profit shifting. In the discussion on long-term investment in infrastructure and risk allocation mechanism in public- private partnership (PPP) projects for which Vietnam and other developing economics have growing demand, delegates exchanged views and experience on the formulation of appropriate risk-sharing schemes between the State and investors, on diversifying financing sources for infrastructure investment and effective risk mitigation instruments in projects in specific sectors as expressways, ports and airports. In the initiative on anti-BEPS cooperation, senior officials discussed regulations and best practices in coping with base erosion and profit shifting, especially by multinational corporations, which often led tax losses. The meeting welcomed valuable support offered by international organisations in promoting compliance by developing rules and standards, especially minimum standards such as country by country reports, transfer pricing documentation, multilateral instruments. "BEPS is a global issue that needs an overall solution based on multilateral cooperation, while the current prevention of BEPS through unilateral and bilateral measures is infeasible due to the rising number of major multilateral companies with increasingly complex transactions," Thang told Vietnam News Agency. The discussion of BEPS minimum standards at Apec meetings would allow Vietnam and other developing economies to learn from developed economies how to apply policy tools and receive direct technical assistance, he added. On the second day of the meeting, officials will review other two cooperation priorities including disaster risk finance and insurance and financial inclusion. The first discussion is expected to help promote Apec economies' resilience and response to disaster risks, improve their capacity of solving disaster consequences, and reduce the burden of budget spending and risks to public asset. The comprehensive finance priority looks to discuss and share experience in finance for agriculture and rural areas where micro-finance has not truly developed and access to financial products still faces obstacles since the price and design of micro-financial products have yet to meet low-income earners' diverse demand. In addition, to strengthen cross-sectoral cooperation with other Apec forums, the meeting also convened a joint discussion with the Life Science Innovation Forum and the Apec Health Working Group on the fiscal and economic impact of ill health, and with the Apec Economic Commission on financial aspects of the Apec Infrastructure Reform and Development. http://bizhub.vn/banking/top-apec-finance-officials-review-priorities_286245.html

Reference exchange rate remains unchanged 23/May/2017 Intellasia| VNA The State Bank of Vietnam announced its reference VND/USD exchange rate at 22,375 VND/USD on May 23, the same as the previous day's rate. With the current +/- 3 percent VND/USD trading band, the ceiling exchange rate is 23,046 VND per USD and the floor rate is 21,704 VND per USD. Rates offered by major commercial banks fluctuated slightly. Vietcombank listed its buying rate at 22,655 VND/USD and its selling rate at 22,725 VND/USD, down 5 VND in both from May 22. BIDV also maintained its buying and selling rates at 22,655 VND and 22,725 VND, a decrease of 5 VND. Techcombank made no change to its buying rate of 22,640 VND and reduce its selling rate by 5 VND to 22,735 VND. http://en.vietnamplus.vn/reference-exchange-rate-remains-unchanged/112133.vnp

SBV aims at flexible exchange rate adjustment to avoid shock 23/May/2017 Intellasia| Bao Dau Tu After several falls over the weekend, State Bank of Vietnam (SBV) has increased the central rate by nine dong after the US dollar price soared when a Fed official said that US dollar interest rates should be raised soon. Although the Fed has no official statement, investors believe that Fed's interest rate increase will take place in June. In the country, trade deficit is at a high level, with $2.8 billion in the first four months. As per the National Financial Supervisory Commission (NFSC), trade deficit is the biggest pressure on exchange rate in 2017. NFSC forecasts that this year, the trade deficit may be 3.5 percent of the total export turnover. Another factor that is "threatening" exchange rate is the devaluation trend of the Chinese Yuan (CNY), especially when Vietnam's trade deficit with China is on the upward trend, from $23.7 billion in 2013 to $28 billion in 2016. In long term, NFSC believes that with the Fed's plan to raise interest rates for many more times in the coming years with the aim of raising to three percent by the end of 2019, the exchange rate could be put under bigger pressure. As usual, whenever the exchange rate tends to increase, the speculative factor occurs, causing the dollar supply to decrease and the demand to increase. SBV governor, Le Minh Hung, also says that strong fluctuations in the international financial market after the Brexit and the election of US President, new policies of US President Donald Trump, Fed's interest rate raising have made management of the exchange rate in 2016 and early months of this year become more difficult. "In the country, the less favourable supply and demand of foreign currencies, large trade deficit, the increasing trend of the US dollar price in the international market has led to increased speculative factors, and expectations", the Governor shared. It can be seen that from the beginning of the year, SBV has been very cautious in managing the exchange rate, with the highest goal of stabilising the rate. As a result, the exchange rate only increased by 1.1 percent. Is this stability sufficient to withstand external shocks as well as the pressure from the trade deficit? It can be observed on the market that SBV has gradually raised the buying and selling prices of US dollar. Daily exchange rates are also flexible and unpredictable. This shows that "the SBV has step by step adjusted the exchange rate in order to avoid shocks from the upcoming exchange rate policy," according to the NFSC. In addition, according to experts, it should not be so serious with the Fed's rate raising. In short term, it is difficult for the exchange rate to get the big shock, because the difference between dong and US dollar interest rates is still in favour of holding dong. Besides, Can Van Luc, an economist, says that when the Federal Reserve raised interest rates in March 2017, the US dollar in the country dropped and foreign investment in Vietnam has remained quite well. With China, the trade deficit pressure of our country is very large, but the possibility of a deepening devaluation of the domestic currency will not occur because the policy of the Chinese government is to focus on domestic development, not on exports as before. Most experts forecast that the domestic exchange rate this year will increase by two to three percent, similar to the increase in recent years and in the endurance of the economy, so it does not affect business much. Regarding the exchange rate management policy in the remaining months of the year, the SBV Governor commits that "In the coming time, with the step by step anti-dollarisation in the economy, the SBV will continue to control the exchange rate stably, flexibly and will not let exchange fluctuations to happen which causes market volatility, ensuring the harmony between the interests of exporters and importers and the repayment of foreign loans by businesses and the government".

Credit institutions required to boost lending programme 23/May/2017 Intellasia| VNS The State Bank of Vietnam (SBV) last week instructed credit institutions to continuously boost the lending programme for market stabilisation. Under Document No. 3522/NHNN-TD, the central bank asked credit institutions to broaden the list of borrowers participating in the programme. The lists cover distributors, traders of subsidised goods, businesses from priority fields and those attending regional connectivity models, as well as value chains, hi-tech applied agriculture and clean farm produce production. The credit institutions have been told to map out lending programmes with reasonable interest rates to the enterprises besides cutting operation costs and enhancing business performance to be able to further cut the rates. In addition, they need to revamp and simplify lending procedures while still ensuring safety. It is also necessary to create favourable conditions and timely remove difficulties so that the enterprises can gain access to loans easily. The central bank also required credit institutions to combine this programme with the Bank-Business Connectivity Programme to make it more effective. A close link between producers and traders of goods taking part in the programme must be built to ensure the stabilisation of goods supply and demand sources for the market, the central bank stated. Under the document, SBV branches in provinces and cities should be proactive in grasping information and consulting provincial and municipal People's committees on measures to carry out the programme efficiently. They should co-ordinate with local agencies to choose necessary commodities produced domestically with good quality, food safety and reasonable prices to participate in the programme and encourage businesses to join hands. The lending programme for market stabilisation, which was launched in 2015 and combined with the "Vietnamese people give priority to using Vietnamese products" campaign, is aimed at stabilising the macro economy and controlling inflation according to the government's instruction. With the price stabilisation, especially for necessary goods, the programme has achieved good results, especially in large cities during the country's end of the year holidays. In Hanoi alone, which contributes 15-16 per cent to Vietnam's total retail sales revenue of goods and services, 11 credit institutions provided loans totalling VND10.3 trillion (US$451.75 million) for businesses participating in the programme last year, according to Hanoi Industry and Trade Department deputy director Tran Thi Phuong Lan. The programme was implemented throughout the capital last year with more than 12,200 points of sale, 711 of which were based in traditional markets, 379 in supermarkets, 160 in convenience stores, 612 in groceries and 452 in canteens. http://vietnamnews.vn/economy/376864/credit-institutions-required-to-boost-lending-programme.html

Bad debts at $7b until March 31 23/May/2017 Intellasia| VNS Total non-performing loans (NPLs) of the entire credit institutions (CI) system until March 31, 2017 were VND160 trillion (US$7 billion). This was stated in a government report released today at the National Assembly (NA)'s meeting. The number, which was exclusively NPLs sold to the Vietnam Asset Management Company (VAMC), was equal to 2.56 per cent of the institutions' total outstanding loans. According to the report, the entire system of CIs recovered NPLs valued at more than VND610 trillion in the 2012-16 period. Of the total, over 56 per cent were settled by the institutions themselves and the remaining were sold to VAMC and other individuals and institutions. However, the restructuring of ailing CIs and settlement of bad debts still faced difficulties. At this NA meeting, the government submitted a resolution on bad debt settlement for approval. Following the approval, the government will instruct relevant ministries and agencies to streamline legal regulations on restructuring ailing CIs so that settlement of bad debts is more effective. As per the State Bank of Vietnam's (SBV) reports, after four years of implementing a project on restructuring the CIs system in 2011-15, there have been achievements, such as restructuring of a number of ailing banks and safety of the banking system and assets of the State and the people. However, because of inadequate legal regulations, there remain obstacles to speeding up the restructuring of ailing banks and settlement of bad debts. While dealing with weak CIs, SBV found the current regulations to be inadequate. According to the central bank, the process of recovery and restructuring of weak CIs is difficult because there is no legal basis for applying solutions suitable to the situation. Also, there is no effective financial support to help weak CIs recover. The law on the handling of mortgaged assets to recover debts still has many inadequacies related to the confiscation of mortgaged assets, especially land, which limits the progress and effectiveness of debt settlement. http://vietnamnews.vn/economy/376888/bad-debts-at-7b-until-march-31.html#KGE1V0ucjQjdqg12.97

Interest rate standing behind exchange rate and inflation 23/May/2017 Intellasia| TBKTSG As per treasury officers at banks, the amount of capital injected through OMO channel meets only 70-80 percent of the actual demand. The winning rate has consistently reached 100 percent in the last two months. It is noteworthy that such an activity of the State Bank of Vietnam (SBV) has taken place in the context of low liquidity of the banking system. Interest rate on the interbank market has continued to remain high at just under five percent per year, equal to the purchase price on OMO from early 2017 till now. This trend contrasts with that of many years ago, in which liquidity was usually high for the first months of the year. Due to facing difficulties in liquidity, many small banks intend to raise mobilising rates on market 1 (between banks and businesses and the people). These banks have anchored deposit rates close to the ceiling (5.5 percent per annum for deposits with terms of less than six months), which has increased by 0.35 percent compared to end of 2016. It will be difficult to give the exact answer for SBV's moves in the recent period. If SBV increased money supply through OMO, rates on the interbank market would immediately drop, thereby indirectly reducing the pressure on mobilising rates on market 1. Reducing interest rates to create a driving force for high economic growth is considered a top priority of the government these days. So why does not the SBV choose such a solution? The answer may be that the SBV is sacrificing interest rates to stabilise exchange rates and control inflation. This is considered to be the two leading factors for companies and international financial institutions to decide whether or not to invest or finance Vietnamese businesses. Therefore, the government has made efforts to maintain the stability of these two indices since the end of 2015. Increasing money supply may lead to foreign currency speculation over the whole system if there is no real foreign currency inflows to the economy from outside such as FDI or FII, especially in the context that the exchange rate between US dollar and dong is facing pressure of increase (dong devaluation). This pressure results from the fact that the U.S Federal Reserve (Fed) is expected to have one or two more rate hikes in the remaining months of 2017. According to data from Bloomberg polls for financial experts, the possibility that the Federal Reserve raises interest rates during the June 14th 2017 meeting has reached 97 percent and the increase is expected to be 0.25 basis points (bps). Besides, there are some other bad signals from the trade balance, namely trade deficit in the first four months of 2017 which was $1.9 billion as opposed to the surplus of $1.6 billion in the same period of 2016. Finally, FDI inflow is likely to slow down after reaching a record level in 2016 due to the negative impact of the new US administration's decision to withdraw from the Trans-Pacific Partnership (TPP) agreement. On the other hand, if the SBV increases money supply, it will immediately put pressure on inflation (CPI), which will directly put pressure on mobilising rate increase on market 1. Despite a sharp drop in price of food products since the beginning of the year, the adjustment of prices of public services such as electricity and medical services will always be potential factors for CPI increase in the upcoming time. In addition, a very important and noteworthy factor is the lack of link between interest rates on market 1 and market 2 (interbank market). Accordingly, the increase of interest rate on the interbank market has almost no impact on the interest rate on market 1. This completely contrasts with that of other banking systems in the world such as the U.S, Thailand and Indonesia. This is one of the most notable conclusions in the Central Economic Commission's 2017 Annual Report. At the present, there is no assertion about the effectiveness of SBV's policy management. However, it has delivered a message that monetary policy management will only be effective when it focuses on a specific goal instead of a multi-pronged goals like many years ago. Stabilising inflation, exchange rate and maintaining a low interest rate to promote high economic growth is impossible. The government might be forced to choose one specific goal for a specific period. At the same time, in order to achieve such a goal, there should have a combination between fiscal and monetary policies and other macro ones.

Mobile banking and internet banking prone to cybercrime 23/May/2017 Intellasia| BizLive An almost unprotected and unprofessional information technology platform in Vietnam is one of the main reasons that high tech criminals have attacked easily and carried out successful cash withdrawals by stealing card holders' information in the recent time. More than half of businesses and organisations in Vietnam do not have information security procedures and 45 percent of businesses are infected with the with the virus that spreads malicious code, according to PricewaterhouseCoopers (PwC). As per Kaspersky, Vietnam ranks 4th in the world, with nearly 50 percent of users at risk of being infected with malicious code when using the Internet on their PC, leading the world with nearly 70 percent of vulnerable PCs, local malware via USB, memory card, etc., and ranking the third in the world on the danger of surfing with 35 percent of users having been attacked. Meanwhile, the Vietnam Information Security Association (VNISA) warned that most businesses and organisations in Vietnam allow mobile phones and tablets to access to the network at work, but 47 percent of the devices do not have any information security measure. In fact, the search for information of prospective customers in Vietnam, such as in the finance and banking sector or high-income VIP customers, has become easier and easier when such kind of information is offered via e-mail or posted on the website. Therefore, the trend of malicious attacks will continue to be strong and will even boom by the growth of e-commerce (online payment, e-wallet, etc.), the growing smartphone market and the wide use of mobile banking and internet banking services. Currently, Vietnam has 4.8 million broadband internet subscribers and 15.7 million 3G subscribers. The number of Internet users in Vietnam are about 31 million people (34 percent of the population), with 8.5 million Facebook users. By 2018, the percentage of smartphone subscribers in Vietnam will surge to about 70 percent, 4G users in Vietnam will improve by 10 percent in the total number of phone users. By 2021, the number of smartphone subscribers in Vietnam will more than triple compared to 2015, the rate of mobile broadband subscribers will reach nearly 40 percent, according to Ericsson. Dr Nguyen Danh Luong, deputy CEO of Vietcombank, said mobile banking is considered as the most explosive channel in the modern banking transaction channels which overwhelms internet banking. As per a report by KPMG, the number of people using mobile banking globally was only 0.6 billion in 2013, and will reach one billion by the end of 2017 and 1.8 billion by the end of 2019. In Vietnam, the percentage of smartphones on the population in 2016 was 60 percent, this percentage of internet is estimated to be 70 percent in 2020. It is forecast that bank transactions via mobile devices will face many MITM attacks in the upcoming time (attacking as an eavesdropper, retrieving information, defying transactions between parties). Financial and banking systems have been the primary target of high-tech offenders when the number of cybercriminals rose from 39 percent in 2014 to 49 percent in 2016 and is among the top five t of world economic crimes.

Seafood companies struggling with bank loans 23/May/2017 Intellasia| NDH According to experts, there are many reasons leading to the hard time of seafood sector in recent years. Some of them are technical barriers, trade protection and quality control regulations of import markets, raw materials for processing, etc. Some believe that the competitiveness of products in the industry is declining. The dong/US dollar exchange rate which was adjusted to be much lower than that of other exporting countries has made Vietnam's agricultural and seafood products of the same kind become more expensive. However, these are part of the cause for the decline of the fishery group. Financial reports of many seafood businesses on the stock market are showing a painful situation that debt and bank loans "have eaten up" these businesses' profits. For investors, a business will be appreciated when it knows how to use external resources effectively. In particular, the mobilisation and use of bank loans showed the sharpness and management capacity of the leadership. This can be shown in a high ROE. However, that theory does not seem appropriate to the Vietnamese market because of unpredictable interest rates. The risk is huge when the business plan is diverted. It is noteworthy that most seafood businesses have been stranded due to rising interest rates since the economic crisis associated with asset bubbles in 2008. Lending rates in those periods were sometimes over 20-25 percent, causing swings in loans to manufacturing firms. For example, Ca Mau Frozen Seafood Processing Import Export Corporation (CMX), known as the "ecological shrimp king", had experience its golden age since 2007. However, from 2011 onwards, the sharply-increasing interest payment made this business fall into difficulties. In 2011, CMX had to pay financial expenses of more than 100 billion dong, of which interest was 77 billion dong, resulting in profit falling from 44 billion dong to four billion dong in 2011. CMX's report of the first quarter 2017 showed that with both short and long-term loans of up to 450 billion dong at banks, CMX made one dong of profit, the bank would also earn one dong. Similar to CMX, An Giang Fisheries Import Export Joint Stock Company (AGF) has also been in debt for many years. Despite the revenue of approximately three trillion dong per year, the financial expense of more than one hundred billion dong in 2011 made AGF fall into difficulty. AGF's debt did not reduce but doubled compared to five years ago while revenue did not increase, which led to losses. Even for the industry leaders which have much capital advantage and invest heavily in the value chain, the situation is not very good. The most typical evidence is the case of Hung Vuong Corporation (HVG), considered as "King of pangasius" in Vietnam after a series of M & A. Hung Vuong almost finished the closed chain from the seed, food, private farming areas, processing plants and cold storage systems, etc. However, with the debt burden of over eight trillion dong, HVG's interest has increased over the years. In 2016, the company's financial expenses amounted to 577 billion dong, of which 480 billion dong was interest, leading to a loss of 49 billion dong. Obviously, quick or slow repayment of loans is highly dependent on business operations. If the market is not favourable, the pressure from bank loans and loans to Hung Vuong is not small. Even for Minh Phu shrimp king could not breathe easily in the period from 2015 to now. With the debt of up to 6.355 trillion dong, 2.8 times higher than equity, Minh Phu's financial expense in 2015 was 440 billion dong, accounting for 41 percent of gross profit. The profit after tax was 32 billion dong, which was a very small amount compared to the revenue of 12.5 trillion dong. According to the 2017 semi-annual financial report of Hung Hau Agricultural Corporation (SJ1), the interest of the corporation is higher than the profit. On the other words, the company made 10 billion dong of profit, banks got 17 billion dong. It can be seen that businesses that invested in expansion by borrowing instead of equity have become the No.1 slaves for banks in the period of high interest rate. However, it can be seen that if these businesses had been more cautious in financial planning, they might not have fallen into such a situation because an export business with a good business situation, solid asset structure and low leverage, banks are more likely to lend at favourable rates. The evidence shows that businesses in the same industry which have less debt is living healthily, even with good growth. For example, the case of Vinh Hoan Corporation (VHC), which is smaller in size than Minh Phu and Hung Vuong, shows the firmness of a business that chooses a slow path. Except for the profit slump in 2011, VHC's revenue and profit have continued to grow in recent years, despite the industry's overall difficulties. In 2016, VHC got 7.303 trillion dong in revenue and 567 billion dong in profit after tax, the highest in the fisheries sector. VHC expects revenue of 12 trillion dong in 2019 with an annual average growth of 15 percent and after-tax profit of one trillion dong in 2019. Ben Tre Aquaproduct Import Export Joint Stock Company (ABT) and Sao Ta Foods Joint Stock Company (FMC) did not have a strong growth such as VHC but still maintained a good profit in recent years thanks to borrowing with low interest rates.

Agriculture firms receive government funds 23/May/2017 Intellasia| VNS State credit institutions will offer enterprises developing national agricultural products 70 per cent of investment capital support, said the Ministry of Planning and Investment (MPI). MPI has finalised a draft decree on policies encouraging enterprises to invest in agriculture and rural areas to submit to the prime minister, saying that one of the main points of the draft is supporting the development of national key agricultural products. The support capital will not exceed VND8 billion (US$351,000) per project, focusing on assisting firms in infrastructure development including transportation, electricity, water, factories and equipment. The projects eligible for the support must satisfy certain regulations. For coffee processing projects, the minimum processing capacity must be 2,000 tonnes per year for wet coffee, 20,000 tonnes per year for coffee beans using drying method, 4,000 tonnes per year for coffee powder or instant coffee. For rice, the minimum processing capacity is 50,000 tonnes per year for regular white rice products and 3,000 tonnes per year for premium white rice products, whose export prices are one and a half times higher than regular products. The figure is 1,000 tonnes of per year for pepper, 5,000 tonnes per year for cashew nut, 10,000 tonnes per year for vegetables and fruits (including canned vegetables and fruits). For aquatic and marine products, the minimum capacity is 1,000 tonnes per year for shrimp and 5,000 tonnes per year for pangasius and other seafood. Projects that provide seeds for key agricultural products will also receive 70 per cent investment capital support, with a maximum level of VND2 billion per project. The MPI will also focus on supporting projects that process wood exploited from plantation forests, it said. According to MPI's plan, enterprises processing wood harvested from plantation forests or bamboo processing in the northwest provinces, the Central Highlands provinces or provinces with poor districts, as regulated in the government Resolution No 30a/2008/NQ-CP dated December 27, 2008, will be supported by the State budget. Firms producing MDF (Medium-Density Fibreboard) wood with capacity of at least 30,000cu.m per year or those who have plywood factory with capacity of at least 100,000cu.m will be given a financial aid worth VND20 billion per factory. Businesses who process particle board, bamboo and industrial laminated wood with minimum capacity of 20,000cu.m will receive capital of VND10 billion per factory. http://vietnamnews.vn/economy/376877/agriculture-firms-receive-govt-funds.html

Insurers speed up plans to increase capital for 2017 23/May/2017 Intellasia| DTCK Originating from various needs, both life and non-life insurance companies are speeding up plans to increase charter capital for 2017. Through the separate issuance of 20 percent of charter capital to strategic partner i.e. Samsung Fire and Marine, PJICO is expected to complete the capital increase from 709.7 billion dong to 887.1 billion dong right in this year. Earlier, in mid-April 2017, Bao Long Insurance also completed the charter capital increase from 500 billion dong to 600 billion dong. In the life insurance sector, a small-scale insurance company said it is waiting for capital from the foreign parent company to increase the financial capacity, although it is not certain because the capital increase plan of the parent company depends on many factors such as internal capacity, current as well as future business results to convince the parent company to pour capital. In 2016, after nine years of operation, Dai-ichi Life Vietnam was trusted by the parent company to provide an additional funding to reach the current capital level of $100 million. On the whole market scale, in 2016, as per the Insurance Management and Supervision Department (Ministry of Finance), the significant charter capital increase helped strengthen the financial capacity of Vietnamese insurers. Ten life insurers and four non-life insurers raised their charter capital by over 5.403 trillion dong; one insurer reduced its charter capital to 80 billion dong. Due to the fact that most businesses in life insurance sector are foreign ones (except for Bao Viet Life Insurance), large capital is not only the key resource to achieve positive business results but also shows long-term commitment for insurance business in Vietnam. Meanwhile, for non-life insurance sector, mobilising a large amount of capital is essential to enhance competitiveness and investment in projects serving business operations because in fact, the small amount of capital is causing businesses in this sector to face difficulties in bidding for major projects. As per Dinh Thai Huong, Chair of PJICO, in the general development trend of non-life insurance market, the development of business capital is an important factor. "With small capital scale, PJICO is having difficulties in bidding for projects as well as accessing large customers because of not meeting the investor's requirement on minimum charter capital. That is not to mention, small capital also limits the competitiveness with competitors in the market. The charter capital increase will help us improve our financial capability, have the opportunity to participate in major insurance contracts, especially bidding in insurance", said Dao Nam Hai, PJICO's general director. That is not to mention, for non-life insurance businesses, the capital increase also aims to retaining premiums, which is of great importance to effective insurance business services because under current regulations, insurers are only allowed to retain maximum 10 percent of equity per risk or individual loss. As a result of the charter capital increase, there will have a capital surplus, the increase in the equity of insurers will help them increase the retaining for effective insurance contracts, thereby improving profits. At ABIC, Dinh Viet Dong, Chair of the Board also admitted that the company's financial capacity is low as the current charter capital is only 380 billion dong (excluding the number of treasury stocks). Therefore, ABIC is only allowed to retain no more than 10 percent/risk unit and the risk obligation treaty contract should also be no more than 400 billion dong. The remaining that must be arranged temporarily in the market caused the delay in the negotiating process to arrange insurance contracts for customers. "In addition, ABIC's equity scale is currently low (reaching 601.75 billion dong as of December 31, 2016) so the company is forced to leave the undistributed profit (38.1 billion dong) to increase its financial capacity", said ABIC Chair. A common point for both insurance sectors when supplementing charter capital is it helps insurance businesses invest in expanding their network, developing information technology as well as investing in finance. "With the new capital of 600 billion dong and the growth of premium income, Bao Long Insurance's investment portfolio will increase from 906 billion dong (as of January 1, 2017) to one trillion dong (as of December 31, 2017), of which the investment from equity was 600 billion dong and the investment from the insurance reserve fund was 400 billion dong. At the same time, the estimated profit from the entire portfolio in 2017 was 82 billion dong, equivalent to the average ROE of 8.2 percent/annum", said Nguyen Thanh Long, Chair of Bao Long Insurance.

Corporate

EU to inspect VN seafood exporters 22/May/2017 Intellasia| VNS The European Union (EU) will send a delegation to Vietnam in June to inspect the country's food safety control system for seafood products exported to the EU. The Ministry of Agriculture and Rural Development said that during the visit, scheduled from June 20 to 29, the delegation will inspect all steps involved with food safety in seafood production and business chains, including fishing vessels, fishing ports, aquaculture facilities, wholesale markets, and purchasing, pre-processing, preservation and processing facilities. This will involve the legal system, and the organisational structure and ability of authorities who control seafood production chain from initial phases of production to final phaseexport to the EU, such as the National Agro, Forestry, Fisheries Quality Assurance Department (Nafiqad), the directorate of Fisheries, the Department of Animal Health, and the provincial agriculture and rural development departments. Additionally, the delegation will assess the State offices' implementation of commitments and recommendations made by the EU delegation during the 2012 inspection, and its solutions for batches of Vietnamese seafood that received warning from the EU from 2015 to date, reported baohaiquan.vn. Nafiqad director Nguyen Nhu Tiep said the EU is one of the major export markets for Vietnamese seafood products. The results of the inspection will have a direct impact on seafood production and business of many enterprises, and the country's seafood export value to the EU as well as to other countries. Maintaining the reputation and quality of Vietnamese seafood products in the EU market is of utmost importance even for other countries to accept Vietnamese seafood products and open their markets for them, Tiep said. Tiep advised that those who will be inspected should make careful preparations as per the requirements of the inspection delegation and provide sufficient and accurate information to them. Enterprises that process and export seafood products to the EU must resolve issues related to food safety and quality that were found by Nafiqad, inspect food safety conditions of their material suppliers, and archive information about the material. http://vietnamnews.vn/economy/376694/eu-to-inspect-vn-seafood- exporters.html#F1axiWKSDb0hHgi0.97

Vietnam urges Australia to remove ban on uncooked shrimp 22/May/2017 Intellasia| VNA The Ministry of Industry and Trade (MoIT), in coordination with the Ministry of Agriculture and Rural Development, is working with Australia's relevant agencies towards the early lift of Australia's ban on the import of shrimp and uncooked shelled shrimp. On January 7, the Australian Department of Agriculture and Natural Resources announced the suspension of prawn and uncooked shelled shrimp imports from Asian nations in fear of white spot disease outbreaks in Australia. The ban took effect on January 9 and will last for six months. The MoIT has raised the issue at all bilateral meetings with the Australian side after the issue of the ban, expressing Vietnam's concerns and asking Australia to consider removing the ban or replacing it with other measures with less negative impacts. Minister of Trade Tran Tuan Anh sent a public letter to the minister of Trade, Tourism and Investment and the minister of Agriculture and Water Resources in February of Australia on the matter in February. According to the MoIT, the minister of Agriculture and Water Resources and the minister of Trade, Tourism and Investment of Australia sent their replies on March 8 and April 30, respectively, explaining that the ban was based on regulations of biosecurity. They added that the Department of Agriculture and Water Resources is working on the matter, including reviewing import conditions for products targeted by the ban, in order to make necessary decisions for the resumption of safe trading activities of shrimp products soon. The Australian ministers affirmed that Australia attaches importance to bilateral trade with Vietnam, including trading in agricultural products. They said Australia is willing to cooperate with Vietnam to review risk assessment measures. http://en.vietnamplus.vn/vietnam-urges-australia-to-remove-ban-on-uncooked-shrimp/111996.vnp

Australia reconsiders Vietnamese prawn import ban 22/May/2017 Intellasia| SGGP News Australian Ministries for Agriculture and Water Resources and for Trade, Tourism and Investment have responded to Vietnam's requirement to abolish the temporary ban on Vietnamese raw prawn products that the country is reconsidering the ban. The Vietnamese Ministry of Industry and Trade on Friday said that the respond came after Vietnam sent a letter to Australian authorised agencies about the ban. Australia has been willing to work with the Vietnamese side to review risk estimation measures to facilitate restart of safe trade activities on prawn and raw prawn products. At present, the country is focusing on handling biological safety issues as soon as possible, reviewing import conditions to affected items and making necessary decisions to reestablish prawn trade activities in line with duties of a WTO member. The Vietnamese Ministry of Industry and Trade together with the Ministry of Agriculture and Rural Development have continued working with Australian authorised agencies to soon remove the temporary ban. http://sggpnews.org.vn/business/australia-reconsiders-vietnamese-prawn-import-ban-66897.html

Shrimp export: Ca Mau seeks to earn $2b 22/May/2017 Intellasia| VNS Southernmost Ca Mau Province is striving to earn $2 billion from shrimp exports by 2020, nearly doubling last year's export revenue. Under a project to boost the shrimp industry, the province aimed at expanding shrimp raising farms to 280,000ha by 2020, with total output of 280,000 tonnes. By 2030, the shrimp raising areas would no longer be expanded, but productivity would be improved from one tonne per hectare per year to 1.48 tonnes, which would help boost total output to 415,000 tonnes. Shrimp export revenue was expected to reach $3 billion by 2030. According to Nguyen Tien Hai, chair of the provincial People's Committee, Ca Mau Province had great potential to boost shrimp production due to an intertwined river system. However, shrimp production in Ca Mau Province was heavily dependent on the weather, and there were insufficient measures to mitigate the negative impact of national disasters, especially droughts, flood tides and landslides, which were becoming more severe due to climate change, Hai said. In addition, shrimp production remained scattered and lacked comprehensive planning, and the province faced a shortage of funds for investing in infrastructure. The province plans to encourage farmers to apply modern and environmentally-friendly farming technologies in raising shrimps and enhancing links with firms to increase value. Ca Mau is the largest shrimp producer in Vietnam with output of more than 145,000 tonnes last year, accounting for 23 per cent of the country's total shrimp output and 32 per cent of the Cuu Long (Mekong) River Delta's production. The province has 34 processing plants with total capacity of 150,000 tonnes per yearCa Mau's shrimp export was estimated at more than $167 million in the first quarter of this year. Vietnam's shrimp export value reached $3.1 billion in 2016 and was expected to touch $3.4 billion this year. Vietnam planned to boost shrimp export revenue by $10 billion by 2025. http://vietnamnews.vn/economy/376719/shrimp-export-ca-mau-seeks-to-earn- 2b.html#hqsTJ64tyYLB1Vcp.97

Forum updates Indonesian firms on Vietnam's business climate 22/May/2017 Intellasia| VNA A Vietnam-Indonesia forum on trade, business and investment promotion has been held in Surabaya city, the capital of Indonesia's East Java province to update local firms on the business climate in Vietnam. The event saw the attendance of about 100 representatives from local enterprises operating in the fields of food, beverage, pharmaceuticals, cosmetics and steel-iron. This was the first Vietnam-Indonesia business forum held in Surabaya, the second largest city of Indonesia after Jakarta, which possesses great potential for development of investment, trade and services. Addressing the forum, head of the Vietnamese Trade Office in Indonesia Le Hong Minh gave the attendees a brief overview of the Vietnamese market and its policies on taxation, wages, office rental as well as investment incentives offered by some cities and provinces. He also estimated the difference in costs for operating a business in Vietnam in comparison with other markets such as Thailand, Hong Kong, China, New Zealand and Australia. During the event, Vietnamese Ambassador to Indonesia Hoang Anh Tuan and representatives of the Vietnamese Trade Office answered enquiries raised by participating enterprises on Vietnam's laws and regulations regarding quarantine, trade barriers, import-export, and anti-dumping duty on steel products. East Java province is Vietnam's biggest trade partner in Indonesia, Tuan told Vietnam News Agency reporters, expressing his hope that similar forums would be held to attract investors from Surabaya and Indonesia as a whole to Vietnam. Vice President of the Chamber of Commerce and Industry (Kadin) in East Java Johan Suryadarmar said Kadin has maintained a good contact channel with the Vietnamese Embassy to further enhance business cooperation between the two countries. Leny Surya from Arrayana food company said the forum provided Indonesian firms with better understanding about the Vietnamese market and hoped to have an opportunity to do business in Vietnam. http://en.vietnamplus.vn/forum-updates-indonesian-firms-on-vietnams-business-climate/111982.vnp

Indonesia coffeee discounts narrow post holiday; Vietnam quiet 22/May/2017 Intellasia| Tuoitre News Coffee market in Vietnam was slow as bid-ask spreads were wide, resulting in several unmatched orders, while discounts in Indonesia narrowed after a holiday, traders said on Thursday. Exporters quoted the 5 percent black and broken grade 2 robusta in Vietnam, the world's top robusta maker, at $20-$40 premium a tonne to London's ICE July contract, up from $10-20 premiums last week, traders said. "At this price, buyers and sellers' offers don't match... so the market is very quiet," said Phan Hung Anh, deputy director of Anh Minh Co, a coffee-trading firm based in Dak Lak, Vietnam's largest coffee-growing province. Importers, who seem to have enough beans in stock and have been bearing large financial costs due to recent price hikes in London market, are offering at a $10-$20 premium to the London price, Vietnamese traders said. Local prices quoted by Vietnamese farmers on Thursday remained unchanged from last week at VND44,000($1.94) to VND44,500 ($1.96) per kilogram, which traders said, make export quotes higher than import offers. "Farmers do not have much beans left, so they don't really care to lower their prices too much," said a HCM City-based trader. In Indonesia, Vietnam's major coffee competitor, traders quoted the robusta grade 4 defect 80 at a $20 discount to the London's July contract, compared to $40-$80 two weeks earlier. "Flow of coffee beans from farmers tends to be slow (in the past week) due to heavy rain fall...(so) drying process was delayed," said a trader. http://tuoitrenews.vn/business/41068/asia-coffeeindonesia-discounts-narrow-post-holiday-vietnam-quiet

Vietnam vows to reorganise coffee production 22/May/2017 Intellasia| Vietnamnet Vietnam's coffee productivity is three times higher than the average level globally, but the profit that coffee growers pocket is low because of poor competitiveness and unstable output. With export volume of 1.8 million tonnes and export turnover of $3.35 billion, coffee was the biggest farm export item in 2016. However, experts have pointed out that Vietnam's coffee industry is facing big challenges which make development unsustainable. There are 645,380 hectares of coffee growing area, which is 7.57 percent higher than the area planned for 2020. In the Central Highlands alone, there are 581,000 hectares. While the coffee growing area has been increasing rapidly, the quality remains questionable. The Ministry of Agriculture & Rural Development (MARD) said it is necessary to find solutions to keep the coffee cultivation area stable at 600,000 hectares. What Vietnam needs to do now is not to expand the cultivation area, but to improve quality. The area of old coffee plants which bring low yield has reached 140,000-160,000 hectares, accounting for 21.7-24.8 percent. While Robusta accounts for 92.9 percent of coffee growing area, Arabica only accounts for several percent. The area for growing new varieties of coffee just accounts for 20 percent, while the other 80 percent is for old varieties with low yield and low quality. Mentioning solutions, Hoang Thanh Tiem, deputy director of the National centre for Agricultural Expansion Encouragement (CAEE), said it is necessary to carry out plans on intensive farming, re- cultivation and shifting to new selective varieties. He also urged to stop using fertiliser unreasonably, abusing plant protection chemicals and harvesting ripe and unripe coffee beans at the same time. The problems lead to low coffee quality, thus weakening Vietnam product competitiveness in the world market. According to MARD, Vietnam's coffee industry will strive to apply sustainable production process on 80 percent of growing area, to obtain yield of 2.7 tonnes per hectare, output of 1.6 million tonnes a year and export turnover of $3.8-4.2 billion a year. The coffee production in Vietnam is on a small scale, with household-run coffee production accounting for 84.8-89.7 percent. Since households use many different varieties and different cultivation processes, the quality is unstable. In recent years, Vietnamese coffee growers have suffered from unfavourable weather conditions. The prolonged drought and the decrease in underground water level caused drought in many coffee production areas in the Central Highlands. Over 116,000 hectares of coffee were affected in 2016, of which 6,854 hectares were lost. Tran Van Khoi from CAEE believes that only when cooperation among scientists, the state, businesses and producers can be strengthened will problems be settled. http://english.vietnamnet.vn/fms/business/178490/vietnam-vows-to-reorganise-coffee-production.html

VN beauty industry targets Cambodia, Burma 22/May/2017 Intellasia| VNS There is significant opportunity for Vietnamese firms to invest in the beauty sector in Cambodia and Myanmar as well as export beauty products to the two markets, participants at an HCM City conference said on Thursday. Leong Ann Suan Jeremy, the editorial director of Beauty Cosmedica magazine, told the road show to introduce Beauty Connect Expo in Cambodia and Myanmar that Cambodia's economic growth is steady and would remain so. With a population of 52 million, of which 39 per cent are aged 25-54, it is a promising market for skincare products, he said. Ha Thị Thanh Binh, general secretary of the Associations of Vietnamese Investors in Myanmar, Cambodia and Laos, said there are not many spas and hair salons in Cambodia, and it is a good opportunity for Vietnamese firms to open them there. The number of foreign visitors to Myanmar has increased significantly in recent time, she said. While most large global hotel brands are present in Myanmar, not many five-star hotels offer spa services, and Vietnamese firms can tie up with hotels to provide high-class spa services, she said. The market also has a high demand for detergents, soaps, shampoos and anti-sunburn products, she said. She said Vietnamese firms could collaborate with Myanmarese businesses to open shops or distribution centres to introduce beauty products in the country since foreign firms are not allowed to sell directly. Jeremy said Vietnamese companies should also look for local agents or partners in Cambodia since business registration, taxation and regulations are best handled by locals. He and Binh agreed that enterprises should focus on quality and competitive pricing when trying to enter these markets. "Cambodia Beauty Connect Expo will be the best place for you to exhibit and find your agents/distributors or even local partners," Jeremy said. Binh said Burmese and Cambodians like Vietnamese products. Trade fairs are a key promotion channel since they enable companies to access a market and understand local consumers' tastes quickly, she said. Beauty Connect Expo Cambodia and Myanmar, to be held in the Cambodian capital Phnom Penh in September and in Yangon in December, would offer Vietnamese firms a good opportunity to understand more about those markets and explore business and investment opportunities, they said. The two expos are expected to attract 55-80 exhibitors each and 3,000 trade visitors, according to Minh Vi Exhibition and Advertisement Services Co Ltd, the organiser. Some large Vietnamese firms took part last year and the number is expected to be higher this year, it said. Besides showcasing the latest beauty products, technologies and equipment, the exhibitions also have business matching sessions to connect local buyers and distributors with international companies, seminars and stage performances. http://vietnamnews.vn/economy/376699/vn-beauty-industry-targets-cambodia- myanmar.html#qqdmIEXuEewHvvHX.97

Game industry targets $1 billion in revenue 22/May/2017 Intellasia| VNA The Vietnamese game industry is expected to earn annual revenue of $1 billion within 10 years, according to experts. Last year, Vietnamese game studios launched 150 games, which attracted 36 million players, earning turnover of $300 million. With this figure, Vietnam became the top game market in Asean, which is the sixth biggest market in Asia. Le Hong Minh, CEO of VNG Corporation was quoted as saying in Dau Tu (Investment Review) that he believed strongly that the domestic game industry would reach $1 billion before 2027, thanks to young talents like Nguyen Ha Dong, who created the international sensation Flappy Bird several years ago. He added that Vietnamese game studios had designed many games that meet international standards. Even so, the game market is still dominated by foreign games. Minh said that turnover earned by Vietnamese game studios this year could be up to $40 million, and up to $80 million if including other places like the AppStore. The figures show that most of the turnover in the country has been earned from foreign games. The domestic game industry has lagged behind many years as it started later than in other countries, such as the US, China and the Republic of Korea. Last year, Vietnamese games were not listed among the top 10 online games in the country. To reach the target of $1 billion in annual revenue within 10 years, Minh suggested that the industry head to the international market and not just focus on the domestic scene. Minh said that his company's game studios had developed wells thanks to this strategy. He said the company stopped developing games for PCs and began developing online games beginning in 2013. This decision was made at the time when the studio was earning VND160 billion (US$7 million) per year from PC games. Minh said that last year the company made decision of targeting foreign markets. He said that Vietnamese studios should design more games that meet international standards and develop world-class studios if they want the industry to earn an annual $1 billion by 2027. Positive signs The trend of making international games in Vietnam took off after the famous Flappy Bird by Nguyen Ha Dong gained international success, according to a report in Dau Tu. In March, a game called Sky Garden: Farm in Paradise, a Vietnamese game for mobile phones, was honoured at the 13th IMGA Global Awards for mobile games held in the US. The game also won the People's Choice Award, with over 7,000 voters. In 2016, three games developed by Pine Entertainment were listed among the top 50 games in US app stores. Politaire last year was selected by Apple as one of 10 games having the best name. In March, VTC Mobile launched Au Mobile in Indonesia, following First Blood, which was also launched in Indonesia. Dao Quang Tuan, director of Entertainment and Sport at VTC Mobile, said that Indonesia was a market with high potential in Asean, attracting many pioneers in the field. VTC Mobile has shown that the gold mine that games represent is wide open to Vietnamese companies. They just need to become more active and invest in foreign markets to take advantage of the opportunities. http://english.vov.vn/economy/game-industry-targets-us1 billion-in-revenue-349972.vov

Why a salary report matters for VN businesses 22/May/2017 Intellasia| VN Economic Times Recently, more and more companies have been participating and using salary surveys as a credible source of information in planning their total rewards strategy. However, only a full data remuneration survey used on-time following business plans can help companies stand out from their competitors in the market and set a winning strategy for their people agenda. During these information-driven times, insightful salary survey reports together with a total remuneration strategy are the cornerstone for building sustainable business goals. Why a salary report matters When most businesses decided on the solution of cutting down operation costs to break the barriers of low efficiency, it is a top priority to optimise their human resources (HR), which entails a regular efficiency and compensation budget review. According to the exclusive salary report provider in Vietnam, Talentnet Corporation, the number of companies purchasing its salary report has continually increased in recent years. The latest Mercer Salary Survey, in 2016, saw a 30 per cent rise in survey participation by Vietnamese companies, proving that more and more local business leaders have recognised the benefits of having a qualified salary report together with other HR management tools. Since compensation is directly tied to the business bottom line, securing reliable salary reports is a crucial need for any company, helping them to benchmark their total remuneration rewards with their competitors before deciding to adjust their pay scheme. This is also why salary reports are conducted annually, to keep data updated and best reflect market trends. "As more and more business leaders consider HR a strategic partner that helps drive business performance in the long run, salary reports are playing an impactful role in offering comprehensive data and analysis on the market, industry, job function, and benefit scheme," said Hoa Nguyen, Senior director of Talentnet's Mercer Remuneration Surveys & HR Consulting Department. "This information not only serves as a valuable reference but also offers critical solutions for organisations to rejuvenate their compensation and benefit strategies, making them a winning package for both employer and staff. Forty-six per cent of the 2016 survey participants wanted to review their benefits scheme to ensure their competitiveness in the market, which means that enterprises are proactively observing the market and continuously reevaluating their offers." In the latest MercerTalentnet salary report, the top priority was given to base salary increments and the second priority to training and development as well as recruitment. Short-term incentives are the next focus of budget allocations for HR in 2017. In the end, a salary report with trusted and valuable data is the solution for effective salary systems and opening the door to talent engagement and retention. The trap of similar salary reports A government report on the acceleration of international economic integration indicates that Vietnam has signed ten free trade agreements (FTAs), concluded negotiations over two more, and is in talks over four others. Business leaders are therefore starting to build interconnected ecosystems and collaborating across industry platforms like never before. Obviously, in this emerging age, one of the top concerns that keeps CEOs awake at night is how to retain and engage talent amid such global competition, when fair and competitive salaries and rewards are the top priority. Possessing a comprehensive salary report can be considered a cutting-edge tool for companies to become aware of emerging HR trends and global ground rules. Regional comparison of executive level salary However, once considering to use salary reports for reference, business should bear in mind the following. First, data should be validated carefully and weighted the same way to ensure the consistency of results. This means all your data provided should be treated under a standard methodolog, otherwise the information released will not be comparable. In positions and levels for example, it is important to look at job duties and level of responsibilities rather than job titles themselves. Second, not all companies need the same salary reports since business scope, size, and goals always vary from one to another. For instance, small and medium-sized enterprises may need to acquire a customised salary report with focused data at certain levels and areas while big companies need a broader source of data. Third, salary reports are an information reference, not an "action plan". Therefore, businesses may need to revisit their strategic goals, plan their tentative roadmap, and decide how to follow or adapt cost and benefits practices in the market. To be a proactive player in the labour market, enterprises need to make sure they have full information on the total compensation package that provides thorough benchmarking and overviews. Without a comprehensive and credible reference source, business leaders may reach incorrect assumptions about their total remuneration offers, which could mislead their compensation and benefits strategies. The bottom line is what matters in creating a winning compensation package. It's not about how much you pay, but how you pay. http://english.vietnamnet.vn/fms/business/178732/why-a-salary-report-matters-for-vn-businesses.html

Private sector struggling to grow 22/May/2017 Intellasia| Vietnamnet Why can't the private economic sector grow more quickly, even though more policies and resolutions on developing private businesses have been created recently? The President of Phu Thai Group Pham Dinh Doan said he finally decided to give up a project that he and his friends pursued for a decade. In 2007, when Vietnam joined WTO, Phu Thai Group, together with Satra, Hapro and Saigon Co-op all large retail chains planned to set up VDA, a distribution network development joint stock company. The four distributors wanted to build up a retail chain powerful enough to compete with foreign investors when Vietnam's commitments open its retail market. However, the project failed because of problems in land access, complicated procedures and other obstacles. "We had been trying to create a 'Vietnamese pillar' in the distribution field in the last decade, but it is so difficult to do this. VDA could not do anything," Doan said at a workshop held recently discussing solutions to promote the private economic sector. "Policymakers say they are closer to businesses. But do they understand what we businesspeople need?" he said. Nguyen Dinh Cung, head of CIEM, estimates that the stockholder equity of the 10 biggest Vietnamese private businesses is VND15.3 trillion, a small figure compared with the VND95.2 trillion worth of capital of thev10 biggest state-owned enterprises. Meanwhile, the revenue of the 10 biggest private businesses is VND33.3 trillion, very small compared with the revenue of VND135.4 trillion of the 10 biggest state-owned enterprises. The estimates were made based on 2015's figures released by GSO and Vietnam Report. "They cannot grow even if they want," Cung commented. According to VCCI's Secretary general Pham Thu Hang, the number of Vietnam's businesses had increased sharply from 63,000 in 2002 to 550,000 by the end of 2016. However, the problem is that the number of small and very small businesses is on the rise. Two thirds of Vietnam's businesses are small and very small with less than 10 workers. "They don't want to grow," Hang said. A VCCI survey showed that only 24 percent of adults in Vietnam want to start up their business in the next three years, a low proportion compared with the 45 percent proportion in other countries with the same development level. Though the government has many policies to encourage the entrepreneurial spirit, the tendency of businesses leaving the market is still growing. At least 31,000 businesses withdrew from the market in the first four months, while the figure was 60,000 last year. http://english.vietnamnet.vn/fms/business/178408/private-sector-struggling-to-grow.html

M&A abuzz in real estate market 22/May/2017 Intellasia| VIR Recently, the real estate market in southern Vietnam witnessed a new wave of M&A. Especially enterprises with an advantage in financial capacity are constantly expanding their scales. Recent real estate M&A transactions Recently, Quoc Cuong Gia Lai Joint Stock Company's stock price has been on a constant increase, propelling it from under VND4,000 ($0.18) to VND14,200 ($0.62) on May 12 (ticker QCG on HoSE). One of the reasons for this galloping rise was mentioned in the firm's audited consolidated financial statement. In particular, QCG had received $50 million of deposit in order to transfer 100 per cent of its ownership in the Phuoc Kien project (Nha Be, HCM City) to Sunny Island Investment. This deposit helped QCG to pay off a VND1.352 trillion ($59.5 million) debt to the Bank of Investment and Development of Vietnam (BIDV). Phuoc Kien is a sizable residential project on a 93-hectare area. Nguyen Thi Nhu Loan, chair of QCG, said that the firm has put a lot of effort and placed high expectations on this project. However, up till now, the project has not finished paying land use fees and site clearance compensation. Thus, the project is not qualified to be transferred, so it is not clear how the deal has been struck between the parties. Sunny Island Investment, the partner of QCG, is a newbie on the market. This company was established on February 16, 2017 with VND250 billion ($11 million) of chartered capital, and it is headquartered in Van Thinh Phat Office Building at 8 Nguyen Hue Street, District 1, HCM City. It is rumoured that Sunny Island Investment's owner is a rich businessperson in the real estate market who has recently become well-known for a wide range of acquisitions. Apart from Phuoc Kien, QCG has previously transferred some other projects as well, such as the project at 39 Ben Van Don Street, District 4, HCM City to Novaland Group. The project has since been renamed The Tresor. Recently, in HCM City, there have been rumours of Phat Dat Real Estate Development Corporation transferring River City (District 7) to Van Thinh Phat Investment Group Corporation, the developer of the $6 billion Saigon Peninsula located right beside River City. In the recent annual shareholders' meeting, Nguyen Van Dat, chair of Phat Dat, declined the rumour. Nevertheless, Phat Dat has recently cancelled the apartment sale and purchase agreements already made with some customers in River City and duly paid compensation to them. Also, it stopped the sale announcements and sales activities of apartments in the project. River City has a total investment fund of $500 billion and is developed by Phat Dat in cooperation with An Gia Investment and Development Corporation, which specialises in investing and developing residential properties in HCM City, and Creed Group, a Japanese real estate firm specialising in principal investment and property development. Recently, Phat Dat has transferred a part of its ownership in the VND1 trillion ($44 million) Cam Ranh Mystery Villas in Northern Cam Ranh Peninsula to real estate firm Hung Thinh Corporation. Hung Thinh declined to disclose the exact value of the transaction, however, it is promoting the project's development. Previously, Hung Thinh had plenty of successful real estate M&A transactions. Its most recent successes were the acquisition of two real estate projects in Binh Tan district, HCM City from Binh Chanh Construction Investment Shareholding Company (BCCI). Another firm, called Dream House Investment Corporation (DRH), is expanding its scale by real estate M&A transactions. Since 2016, DRH has been constantly publicising its purchases of numerous real estate projects, such as D-VELA on Huynh Tan Phat Street, a high rise apartment project on Ben Binh Dong Street, and Loc An Resort in the southern province of Ba Ria-Vung Tau. Most recently, DRH has spent hundreds of billions of VND on purchasing two real estate projects called Terracotta Hill and Metro Valley. In particular, Terracotta Hill has an acreage of 26,745 square metres with about 140 detached houses, each with an average acreage of 105sq.m, and four 210sq.m villas. The total investment for this project is VND195.6 billion ($8.6 million). DRH's low-rise apartment project in District 9, HCM City has a total acreage of 3.47 hectares with a total investment of VND640 billion ($28.16 million). Besides, many other real estate firms in southern Vietnam have also been revving up M&A activities, such as Novaland, Greenland, and Thu Duc House Under theme "Seeking a big push," Vietnam M&A Forum 2017 will be the place to exchange suggestions and introduce opportunities as well as share experiences to create a breakthrough in the market. Slated to take place on Thursday, August 10, 2017 at GEM Centre in HCM City, the 9th Vietnam M&A Forum will feature the following activities: • A specialised conference on M&A activities in Vietnam; • A Deal Awards ceremony to honour the best M&A deals of 2016-2017; • The issuance of Vietnam M&A Outlook 2017 Special Publication; • A post-conference master class on M&A strategy. We are delighted to invite your organisation to become part of the forum by jointly organising and sponsoring the event, promoting your image, and presenting your business and projects at the forum and in its related publications. Potential real estate market Expert opinion says that HCM City with its 13 million population has great potential for development. However, as the population is growing and available land plots are drying up, firms with greater land banks will have more chances to develop. Thus, real estate M&A is a tool for firms wishing to develop rapidly. According to Luong Si Khoa, vice chair of An Gia Company, M&A is the shortest way to acquiring clean land funds for projects. By M&A, firms can save up time spent on implementing prescribed procedures, as well as time for dealing with compensation for site clearance. "If a firm implements a brand new project, it may take the developer up to one year to cover these stages. Firms should seize the chance and introduce their projects soon, while the market is at a strong place," Khoa said. According to Nguyen Dinh Trung, chair of Hung Thinh Corporation, M&A for long-delayed projects also benefits all parties and the Vietnamese market. "The increase in real estate M&A will help stabilise the real estate market and the economy. As current M&A transactions take projects out of the hands of firms with no demand for them, or those lacking professionalism, and shift them to the more financially-capable and professional firms, they facilitate project implementation and prevent long-delayed projects and inventories from piling up," Trung said and added that Hung Thinh has so far developed about 30 real estate projects, most of them originating from M&A transactions. Le Hoang Chau, chair of the Ho Chi Minh Real Estate Association (HoREA), said that at present, there are numerous projects left abandoned, waiting to be rescued. In the period of 2009-2013, there were over 14,000 apartments and hundreds of real estate projects in HCM City that were left abandoned, so many firms had to transfer their projects to achieve financial balance. "Without professional firms, there will be no beautiful urban areas or modern projects constructed professionally," Chau said. Also, he added that recent M&A transactions have increased market liquidity, decreased inventories, and recovered consumers' confidence. http://www.vir.com.vn/ma-abuzz-in-real-estate-market.html

Thanh Hoa enthusiastic over fated investments 22/May/2017 Intellasia| VIR Nguyen Dinh Xung, vice Secretary of the provincial Party Committee and Chair of Thanh Hoa People's Committee, seeks to promote the province as a top tier destination for investors. Thanh Hoa invites local and foreign investors to the province and is committed to offering them the best conditions to operate their businesses. The province aims to, by 2020, be among the localities taking the lead in three aspects: having a comprehensive infrastructure system to satisfy investors' needs; giving investors most competitive land rental and labour cost; and always tackling investors' proposals in a timely manner. This is the key message for investors and will be presented at the upcoming Thanh Hoa national investment promotion forum, the second of its kind, slated to take place late this week in the province. An attractive investor spot Thanh Hoa provides a gateway linking the northern and the central region. It is about 150 kilometres from Hanoi, and a key northern economic zone, featuring a 192 kilometre border line and 102km coastal stretch. With over 3.5 million residents and 27 administrative units (including two cities and one town), Thanh Hoa is the third most populous province in Vietnam, behind Hanoi and HCM City. The province consists of diverse terrain and ecosystems with plentiful natural resources, coupled with a favourable climate, conducive for crop farming serving domestic and export demands, such as rice, sugarcane, rubber, and raising cattle and aquaculture. In addition, Thanh Hoa is abound with mineral resources, including large deposits of granite and marble (2-3 billion cubic metres of reserves), limestone (more than 370 million tonnes), clay for cement production (85 million tonnes), and chrome (about 21 million tonnes). These are favourable for industrial uses, particularly for cement works, building materials, power, petrochemical, and oil refinery industries. Thanh Hoa also has an abundant human resource and currently stands at a golden demographic structure era, with 2.3 million labourers. It is one of four localities nationwide taking the lead in the number of students winning national and international awards. Trained labourers held 58 per cent of the province's total labour force last year. Throughout Vietnam's four-thousand year history as a nation, Thanh Hoa has always played an important role politically, militarily, economically, and culturally. Even today, the province is still home to numerous sites of historical and archaeological value, such as Do mountain cultural relic from the Stone Age, Ba Trieu Temple, Lam Kinh relic; and well-known natural attractions such as Sam Son beach, Ben En national park, Xuan Lien, Pu Hu and Pu Luong nature reserve sites, and Ho Dynasty Citadel world cultural heritage site. All these sites have great potential for tourism development, particularly hi-end tours. Complete infrastructure, convenient transport Thanh Hoa is easily accessible via land, railway, waterway and airway. It shares an international border crossing with Laos, and also accommodates Nghi Son deep-water port which can be accessible to 100,000 deadweight tonne ships. This is also the largest gateway to the sea in the whole northern and north central region. The distance from Thanh Hoa to other dynamic development centres in the country has been significantly reduced through the opening of Tho Xuan airport and launching of Thanh Hoa-HCM City air route in early 2013. New routes will be launched from Thanh Hoa to other big cities, such as Danang and Can Tho, and to Thailand and other countries in the future. Up until now, Thanh Hoa has eight IPs covering 2,036 hectares in total space, of which five IPs report a rather comprehensive infrastructure. Thanh Hoa has also made the development planning of 57 industrial clusters (ICs) over 1,647ha space. The building of technical infrastructure now takes place at 40 ICs covering 1,156ha. Notably, Thanh Hoa is home to the 106,000ha Nghi Son Economic Zone (EZ), one of five pivotal EZs in Vietnam which enjoys the top investment incentives under government provisions. With convenient access by road, waterway and railway, particularly the presence of Nghi Son deep-water port, Nghi Son EZ is a diversified EZ with emphasis on heavy and fundamental industries. Besides, Thanh Hoa also has developed banking and financial services, and a good post and telecommunications, IT, transport, education and training, healthcare, culture, and sport system. The province also has 26 banks and credit institutions with diversified products and services, and over 400 businesses operating in the information communication technology field. The provincial authorities are working on establishing a modern e-government model and developing smart city services for 2017-2020. Lucrative investment incentives When conducting business in Thanh Hoa, the investors in Nghi Son EZ and other IPs can expect big land and tax incentives. In fact, Thanh Hoa has been named a top location attracting foreign investment in Vietnam for many consecutive years. Besides existing investment incentives, the province has also had policies to stimulate craft, trade and industrial development, as well as calling private investment into agriculture and large-scale cattle breeding. To support investors and businesses to quickly address administrative procedures, the province is accelerating the establishment of public administrative centres at provincial and district levels, and assigns the leaders of diverse state management agencies to directly work on tackling investor proposals. Periodically, on the 21st day monthly, the provincial chair directly meets with firms' leaders to help them unclog difficulties. Numerous past projects have ramped up expansion, such as Nghi Son Cement with current capacity reaching 4.3 million tonnes, Cong Thanh Cement of five million tonnes, Long Son Cement of five million tonnes, Vietnam-Taiwan enzyme production and sugar processing plant, and the 600 megawatt ( MW) Nghi Son 1 thermal power plant. A slew of important projects are under construction, such as the $9.3 billion Nghi Son petrochemical and refinery complex, Trung Son hydropower, Hoi Xuan hydropower, Nghi Son steel plant with annual capacity of one million tonnes of steel billets, and the 1,200MW Nghi Son 2 thermal power. To reach the target of becoming an affluent location by 2020, and a modern province with high industrial development level by 2030, Thanh Hoa will prioritise development in five following potential fields as processing industry, manufacturing, agriculture, tourism, healthcare, infrastructure and urban development. The province will continually strive for stronger reforms across the board to further improve its investment climate, and also seek to reduce market entry costs for investors and businesses, while maintaining social order and security. These are aimed at making investors feel at ease when doing business in the province. http://www.vir.com.vn/thanh-hoa-enthusiastic-over-fated-investments.html

Great potential for adventure travel untapped 22/May/2017 Intellasia| Vietnamnet Adventure travel accounts for example only 10 percent of all types of tourism in Vietnam. Ngo Hoai Chung, deputy general director of the Vietnam National Administration of Tourism (VNAT), said that Vietnam has great potential to develop adventure tourism. Of many different types of tourism, adventure travel is now witnessing the highest growth rate. Meanwhile, Vietnam has great potential to satisfy travellers' demand for exploring unusual, exotic, remote and wilderness destinations. Three quarters of Vietnam territory is made up of mountainous and hilly regions. Vietnam has limestone mountains, karst areas, beautiful caves, tropical primary forests, nature reserves, large national parks and over 3,000 km of coastline. Many areas in Vietnam have favourable conditions for jogging, mountain climbing, car racing, sea diving, rafting, sailing, windsurfing, parachuting and parasailing. However, despite great natural advantages, Vietnam's adventure tourism still has not developed. Chung said that not many localities and businesses had invested in the segment. Travel firms now have adventure tours to travellers, but they do this with no long-term development strategy. Some firms open tours without asking for permission from agencies, provide low-quality tours and bring travellers to areas with poor facilities. As they ignore many requirements, travellers' safety is also threatened. Local newspapers have discovered that some travel firms have brought travellers to unlicensed destinations to avoid control from state management agencies. These led to tragic accidents, including the one in which travellers and a tour guide died at the Hang Cop Waterfall on February 23. Soon after the accident occurred, the Lam Dong provincial Department of Culture, Sports and Tourism suspended domestic travel services of the Gold Dream Company, which sold the tour. The company did not register to provide adventure travel and did not have the function of receiving foreign travellers. Prior to that, on February 26, 2016, three British travellers died because they lost their footing at Datanla Waterfall in Da Lat City. Chung said in the two cases at Datanla and Hang Cop Waterfalls, the travel firm used unlicensed tour guides. Nguyen Trung Thanh, director of Goldent Travel, pointed out that the Tourism Law still does not define this type of tourism. There is no legal document with detailed regulations on adventure tourism. According to Thanh, in other countries, travellers must prove they can take adventure tours, while in Vietnam, anyone can book adventure tours. http://english.vietnamnet.vn/fms/business/178493/great-potential-for-adventure-travel-untapped.html

Business Briefs May 22, 2017 22/May/2017 Intellasia | * Southeast Asia Commercial Bank, or SeABank, has announced a resolution of the 2017 annual general meeting approving a plan to raise its chartered capital to a maximum VND8.9 trillion. Shareholders also approved the bank's listing on the stock market in 2017 or 2018. This year, SeABank will continue procedures to establish Southeast Asia Fund Management Co Ltd Besides, it is going to launch a consumer finance company in the near future. * Tan Tao University has bought over 6.2 million shares of Tan Tao Investment and Industry Corporation (ITA) to raise its holding to 39.2 million shares, or a 4.18 percent stake. Tan Tao Group is now the biggest shareholder at ITA with a 14.72 percent stake, or over l38 million shares. * Quoc Cuong Gia Lai Company CQCG) made a consolidated net profit ofVND2.4 billion in the first quarter of this year, up 59.4 percent over the same period last year. Its revenue jumped 3.2 fold to VND268.8 billion in the quarter. The firm's short-term debts dropped 2.78 percent from the end of 2016 to VND4.0 1 trillion at the end of March, said Viet Capital Securities Company. * One institutional investor and 21 individual ones have registered to buy nearly 8.4 million shares of Vietnam general Agricultural Materials Corporation (Vigecam) at an auction at the Hanoi Stock Exchange today. Vigecam will offer 6.35 million shares, or a 28.87 percent stake, at the starting price of VNDI0,100 each. After going public, the enterprise will have a chartered capital ofVND220 billion. * TNG Trade and Investment Company (TNG) will issue over 6.8 million shares to pay a 2016 dividend for shareholders in the second quarter of this year. In the first quarter, TNG saw its revenue rising 12 percent year-on-year to VND402 billion while its net profit was over VND 14 billion, equivalent to last year's result. The enterprise fulfilled 18 percent and 12 percent of 2017's revenue and net profit goals respectively. * Quang Ninh Construction & Cement Company (QNC) will float an additional 6.7 million shares on the Hanoi market on May 22, raising the total outstanding volume to 25.1 million shares. * Hung Hau Development Joint Stock Company has registered to sell over 1.3 million shares of Safoco Foodstuff Company (SAP), or a 17.5 percent stake in the enterprise.

Vietnam's crude offers condensate; Asia-Pacific market awaits tender results 22/May/2017 Intellasia| Tuoitre News Trade for July-loading regional cargoes remains sluggish as traders adopt a wait-and-see approach ahead of various regional sell tenders that are due to be awarded in the coming days. July premiums are expected to be steady to slightly firmer than June-loading cargoes that traded last month as demand from Asian refiners is expected to resume after coming out of the seasonal spring maintenance period, traders said. But lacklustre refining margins and ample supplies could cap gains, they cautioned. Naphtha refining margins fell to $56.90 per tonne on May 18, the lowest since mid-December. Vietnam's Nam Con Son condensate PV Oil is offering three 25,000-barrel cargoes of the Vietnamese condensate grade for loading in July, August-September and November-December via tender. The grade is usually bought by domestic end-users because of the small cargo size that make it logistically and economically hard for traders to export, traders said. PV Oil is due to award the two tenders next week, which is later than usual. The regional market often uses these tenders as a barometer of market sentiment. Malaysia's Petronas is likely to have awarded its tender for the 300,000-barrel cargo to a trader at a premium around $2 per barrel to dated Brent, although exact details remain unclear. The cargo is understood to have traded at levels steady from a month earlier. Trade for the grade remains muted even as a record 11 cargoes are available in July. Three market participants surveyed by Reuters indicated that they saw value for the grade between $1.50-2.00 per barrel to dated Brent. Woodside sold its July-loading Pluto and North West Shelf condensate cargoes to Shell at a premium of around $1.70 per barrel to dated Brent, traders said. The two grades were sold together and are due to be co-loaded, they added. Brent's premium to Dubai swaps was at $0.85 per barrel, up 7 cents for July. Vietnam's 130,000 barrel-per-day (bpd) Dung Quat refinery will be shut for maintenance as planned from June, the country's government said in a statement late on Thursday. After the first OPEC oil production cut in eight years took effect in January, oil traders from Houston to Singapore started emptying millions of barrels of crude from storage tanks. Russia's Rosneft, the world's top listed oil company by output, is working to be ready to compete on global oil markets after the deal with OPEC on oil curbs expires, Chief Executive Igor Sechin said on Thursday. Halliburton Co, the No. 2 oilfield service provider, expects to raise prices at least 10 percent and in some cases 20 percent or more this year, higher increases than many customers expect but ones that company executives said were crucial to fuel the oil industry's nascent growth. An OPEC panel reviewing scenarios for next week's policy-setting meeting is looking at the option of deepening and extending an OPEC-led deal to reduce oil output, OPEC sources said on Friday. Is the oil market getting tired of OPEC's verbal intervention? The price swings of recent months suggest market players want a big surprise from the Organisation of the Petroleum Exporting Countries (OPEC) when it meets on May 25 in Vienna for oil to break above a very tight range around $50 per barrel. For crude prices, oil product cracks and refining margins, please click on the RICs below. Fuel oil crack Gasoil crack Naphtha crack Complex refining margins http://tuoitrenews.vn/business/41072/vietnam-s-crude-offers-condensate-asiapacific-market-awaits- tender-results

Coffee output forecast to fall 22/May/2017 Intellasia| The Saigon Times The 2017-2018 coffee crop is forecast to yield around 1.4 million tonnes, slightly lower than in the previous crop, according to the Vietnam Coffee and Cocoa Association. The association's vice chair, Nguyen Nam Hai, said Vietnamese farmers often harvest coffee in October and November and that if weather is favourable, the Central Highlands provinces, which are responsible for over 90 percent of the country's coffee acreage, would be able to produce around 1.3 million tonnes. Farmers have faced no problems with irrigation given no severe drought this year. However, the country's coffee production is being affected by an increasing number of old coffee trees. Hai said the coffee price has been in decline. For instance, it sold for VND43,200-43,700 per kilogram on May 18, up a mere VND700 against the previous day, while it was as high as VND47,000 in January. Vietnam had shipped more than 960,000 tonnes of coffee abroad as of late last month. If things go well, Vietnam's coffee exports could reach 1.4-1.5 million tonnes this year, he said. The country exported 1.79 million tonnes of coffee worth $3.36 billion last year, up nearly 34 percent in volume and some 26 percent in value against 2015. The export price averaged out at $1,872 per tonne, a 6 percent decline, according to the Ministry of Agriculture and Rural Development. However, the first quarter of this year saw the average coffee export price improving to $2,267 per tonne, up a staggering 33 percent over the year-ago period. Around 592,000 tonnes worth $1.34 billion was exported, down 11 percent in volume but up 19 percent in value. http://english.thesaigontimes.vn/54040/Coffee-output-forecast-to-fall.html

Businesses prepare for fourth industrial revolution 22/May/2017 Intellasia| VNA A conference on innovative business models in the context of the fourth industrial revolution was held in HCM City on May 18, with experts from Vietnam and the Republic of Korea (RoK) attending. Topics discussed included the role of innovation in small and medium-sized enterprises and start-ups, funds for sci-tech development and firms collaborating with research institutes and universities. Kim Eung Jin, an adviser at Nemo Partners Innovation Consulting Group, said the RoK firms had focused on technology advancement to welcome the fourth industrial revolution since 2010. He said the country will have 4,000 smart manufacturing plants this year and 10,000 in 2020, adding that the Korean government has built 18 innovative centres to support start-ups. Nguyen Tuan Thanh, who oversees the fund for sci-tech development of the Saigon Transportation Mechanical Corporation, noted innovation relies on businesses, but requires State assistance. Firms discussed collaboration between their community and research institutes/universities, but stressed that cooperation outcomes fall short of potential. They attributed part of the problem to impractical studies, which are incompatible with reality. A Nhat Tinh Company representative suggested the government identify key products, markets and scientific sectors to fully tap domestic strengths. http://en.vietnamplus.vn/businesses-prepare-for-fourth-industrial-revolution/111955.vnp

Too many high-end apartments in Hanoi, HCM City: analysts 22/May/2017 Intellasia| Vetnamnet The supply of high-end apartments has been increasing rapidly in Hanoi and HCM City, but sales have not been brisk. Tien Phong has quoted analysts warning about a 'bubble' in the high-end apartment market segment, with more and more apartment projects put up for sale recently. From central business to new districts, investors and brokers are struggling to boost sales. High-end apartments are in a two-year slump. The Hanoi Landmark 51 on Van Phuc Road in Ha Dong district in Hanoi, hoped to be a new centre of the Ha Dong area, has not turned out to be very attractive. According to the Hoang Vuong real estate trading floor, the distributor of the project, only one-third of the project's total apartments have been sold (at the price of VND23 million per square metre) in the last two years. The apartments at The Legend on Nguyen Tuan Road of Thanh Xuan district in Hanoi are believed to have competitive price of VND32 million per square metre. However, The Legend has to compete with dozens of projects with several thousand apartments in the same area. Bidhomes' The Garden Hill in Nam Tu Liem district has seen sales going slowly after scandals between the investor and clients. Nguyen Van Dinh, deputy chair of the Vietnam Real Estate Brokers Association, cited a report as saying that there were 18,338 transactions made at the association's member trading floors in the first quarter of 2017, lower than in the fourth quarter of 2016. In HCM City, high-end apartment sale have been slow, while the sale of mid-end apartments accounts for the biggest proportion of total transactions. In Hanoi, the transactions have been stable with average-level apartments selling slightly better than mid-end products. In Da Nang City, land was the busiest market segment with more than 1,000 transactions made. Dinh said in Hanoi, 3,624 apartments, mostly high-end and mid-end ones, with 312,300 square meters were transacted in the first quarter of 2017 via real estate trading floors. "Hanoi doesn't have more low-cost apartment projects, while there are very few new house and villa projects," Dinh explained. A lot of apartment projects in the western part of Hanoi were for sale in March, including Hanoi Paragon, La Casa Villa, Garden Hill My Dinh, Anland Complex, Xuan Mai Complex, Golden Field My Dinh, Pandora and Park Riverside. In the southern part of Hanoi, the productsfor sale were mostly mid-end apartments, including Eco Green Tower, Eco-Lake View,Sunshine Palace, Gelexia Reverside, Smile Building and The Golden Star. At a meeting with the Vietnam Real Estate Association, the minister of Construction Pham Hong Ha warned that the high-end apartment market segment may see oversupply by mid-2017 if all projects are implemented as planned. http://english.vietnamnet.vn/fms/business/178600/too-many-high-end-apartments-in-hanoi--hcm-city-- analysts.html

Proposal to make alcohol firms pay health tax 22/May/2017 Intellasia| DTI News It has been proposed that companies which produce and import alcohol and beer products should pay VND360 billion (USD16.36 million) annually for health services. This is among contents mentioned in a draft law on alcohol that the Ministry of Health is finalising for submission to the National Assembly. Under the draft law, the Ministry of Health considers the establishment of the public health improvement fund. The fund would be based on compulsory financial contributions from alcohol and tobacco importers and producers as well as voluntary donations from individuals and organisations inside and outside the country. According to the Ministry of Health, the fund would partially help to save the state budget in public health care activities and is also expected to reduce the alcohol and tobacco consumption as well as to raise the public awareness about the harm caused by alcohol and tobacco. The ministry added that to date more than 20 countries, including Austria, Australia, Mongolia, South Korea, Switzerland and Thailand, have set up this fund. Vietnam now ranks second in Southeast Asia, 10th in Asia and 29th in the world in terms of the alcohol consumption. More than 77 percent of adult males and 11 percent of women said they had drunk alcohol in the past 30 days. Nearly half of men had engaged in heavy episodic drinking. http://dtinews.vn/en/news/018/50949/proposal-to-make-alcohol-firms-pay-health-tax.html

Transnationals dominate Vietnam personal care market 22/May/2017 Intellasia| VOV Large transnational companies have rapidly taken control of the manufacturing and retail beauty and personal care segments of the Vietnam economy, say leading market analysts. At a recent conference in HCM City, the analysts said the reason is in large part due to lack of investment by domestic sector companies in research and development as well as the latest technologies among other things. Deputy chair of the Vietnam Essential Oils, Aromatherapy and Cosmetics Association, Nguyen Van Minh said the domestic sector has only a 10 percent market share though they could easily compete with transnationals in terms of quality but for the lack of equity or debt capital. Minh said there are only 14 domestic sector manufactures operating in the country. He noted that Korean transnationals hold a 30 percent market share followed by those from the EU (23 percent), Japan (17 percent) and Thailand (13 percent). The US and other countries account for the remaining 7 percent, he added, but the market is dynamic and market shares can change quickly. According to the latest estimates by market research company Mintel, the personal care retail market in Vietnam is thought to be worth $1.78 billion, a figure that should grow to $2.35 billion in the near term. Although the market is not large by international standards, its rapid expansion is creating opportunities in most personal care categories including body care, colour cosmetics, facial care, soap, fragrances, bath, hair care and sun care. The growing demand for organic personal care items such as those for natural hair care, skin care and cosmetic products is expected to ignite growth in the personal care market over the short term. Increasing consumer disposable incomes coupled with changing lifestyles has contributed to the rising demand for chemical-free skin and hair care products by Vietnamese consumers, other analysts at the conference noted. Consumers are aware of the ability of natural ingredients to provide anti-oxidation properties and improve skin immunity and now with more money in their pockets that is a major factor fuelling market growth. Consumers are moving away from petroleum based products in favour of natural products, said Huynh Ky Tran, director of Lan Hao-Thorakao Cosmetic Company, noting that this gives domestic companies an advantage over foreign competitors. Vietnam agriculture produces many plants that are perfect for the manufacturing segment such as aloe, citronella, saffron, grapefruit and soapberry that his company uses to make their personal care products. Transnationals have much higher manufacturing and transportation costs than we have in Vietnam, said Tran. The fact that we can buy natural products locally at favourable prices and our manufacturing costs are not as high gives us a competitive advantage in the local market. Where the 14 companies comprising the domestic sector come up short is in terms of equity or debt capital for investing in research and development as well as modernised machinery and equipment incorporating the latest technological advances. The domestic sector companies also skimp on marketing expenses and as a result lose out on sales. Consequently, most of the domestic sector manufacturers produce facial and hand cleansers that are targeted at low income consumers who base their purchasing decisions almost entirely on cost. A siseable proportion of domestic manufacturers products, probably around 60 percent, said Tran, are also exported to poor African countries and low income markets in Laos and Cambodia. http://english.vov.vn/economy/transnationals-dominate-vietnam-personal-care-market-349429.vov

Thai firms eye Vietnam market 22/May/2017 Intellasia| The Saigon Times A Thai goods fair was opened in Hanoi on May 17, becoming the sixth such event in Vietnam this year and suggesting that Thai companies are increasingly keen on the Vietnamese market. Another 10 Thai products fairs are planned to take place in Hanoi, HCM City and Can Tho in the rest of the year. Tran Le Anh Thy, director of Ngoc Thien Bao Trading Co Ltd, told the Daily on May 18 that her company has joined multiple Thailand trade fairs, with all expenses covered by her Thai partners. The company is an authorised distributor of some Thai products. Thai firms are aware that Vietnamese consumers prefer Thai goods to those from China given growing concerns about low quality of Chinese products. Therefore, Thai firms are investing heavily in Vietnam to gain a larger market share, Thy said. Distributors like hers are teaming up with Thai partners to run marketing campaigns and expand their distribution systems in the country. She added Thai products are displayed at traditional and modern retail stores and increasingly popular among Vietnamese consumers in urban and rural areas. Vietnam spent more than $2.9 billion importing Thai products, especially fast-moving consumer goods, in the first four months of this year, a rise of $500 million against the same period last year, according to a general Department of Vietnam Customs report. http://english.thesaigontimes.vn/54031/Thai-firms-eye-Vietnam-market.html

Vietnam introduces IT products at tech in Asia 22/May/2017 Intellasia| VNS A Vietnamese delegation led by Hoa Lac Hi-tech Service Centre (HHSC), under Hoa Lac Hi-tech Park's management, was showcasing many IT application products at the Tech in Asia 2017 in Singapore on Wednesday. The aim is to promote the IT development market by introducing and connecting young scientists with the Asian start-up community as well as international businesses and investors. It will also give young Vietnamese scientists the opportunity to exchange experiences and learn about new global IT start-up trends. At the event, Hoang Thang, BioMes Tech team's representative from Da Nang College of Technology, introduced an equipment to support people with leg injuries. Nguyen Khac Bao Trung, Thai Nguyen University's representative, introduced irrigation and fertilisers controllers in agriculture and forestry; information and communication technology in agriculture; and smart learning room. Tech in Asia's signature two-day conferences are held annually in Singapore, Bangalore, Tokyo and Jakarta and see the participation of around 5,000 people. It is among Asia's largest conferences organised for the region's tech ecosystem. The event attracts the attention of the Asian start-up community, including Cashshield, FOMO Pay, AiChat, and VostokV, as well as international groups such as Amazon, Deloitte, Google, FiTech and Investor Cloud. http://www.vir.com.vn/vietnam-introduces-it-products-at-tech-in-asia.html

Petrol prices continue to decrease 22/May/2017 Intellasia| VNA Prices of oil and petrol products continued to decrease from 3:00pm on May 20, according to the latest adjustment of the Ministry of Industry and Trade and the Ministry of Finance the same day. The prices of RON 92 slightly dropped by 211 VND per litre, while that of E5 bio-petrol and diesel oil declined by 197 VND and 343 VND per litre, respectively. Following a joint decision by the ministries, RON 92 and E5 bio-petrol is sold at no more than 17,063 VND (0.75 USD) and 16,871 VND (0.74 USD) per litre, respectively. Meanwhile, the new ceiling prices of diesel 0.05S and kerosene are 13,260 VND (0.58 USD) and 11,792 VND (0.52 USD) per litre. The average global price of RON 92 during the last 15 days to May 20 was at 61,084 USD per barrel, down 1 USD compared to the previous price adjustment. The prices of petrol and oil are adjusted every 15 days by the two ministries depending on changes in the world market. http://en.vietnamplus.vn/petrol-prices-continue-to-decrease/112021.vnp

Vietnam opens first functional food factory that meets European standards 22/May/2017 Intellasia| Vnexpress Officially inaugurated and operated on May 14, the functional food factory, invested by Savipharm Joint- Stock Company, uses dust-free, non-exposure technology, and is controlled using Scada system. The factory, equipped with modern facility, has the capacity of supplying 500 million pills per shift per year, and can produce various forms of medicines, including film-coated tablets, sugar-coated tablets, hard gelatin capsules and effervescent tablet. Savipharm's factory meets all standards to produce healthy functional foods that have the same quality with imported products. According to Savipharm's director, Tuu Tran, the company is willing to cooperate with domestic functional food companies to develop and create high quality products; it is also willing to cooperate and licensing the factory to foreign companies; and it can handle producing and processing functional foods for domestic and foreign companies. Savipharm also aims toward exporting high quality functional food products to the international market. In Vietnam, the functional food industry has been growing strong for the last 15 years, with more than 20,000 approved products and more than 4,000 manufacturing companies. Approximately 50 percent of the urban population use functional foods regularly. Also during this event, Savipharm opened two new assembly lines that will modernise the Pharmaceutical Factory, better manage medicine quality, and better protect workers' health. Earlier, Savipharm had operated pharmaceutical factory that meets the quality standards of GMP Japan and GMP PIC/S. Savipharm was founded on August 2015. It operates in three main sectors: (1) producing medicines and medicine-related products, (2) storing and distributing medicines, and (3) participating in research, development and training. Regarding revenue and quality, Savipharm is one of the top 10 leading pharmaceutical firms in Vietnam. http://english.vov.vn/economy/vietnam-opens-first-functional-food-factory-that-meets-european- standards-349931.vov

Nestle opens new factory in Hung Yen 22/May/2017 Intellasia| VNA A new MILO producing factory of the Nestle Vietnam Group opened in Thang Long II Industrial Park in the northern province of Hung Yen on May 18. The factory will create more than 200 new jobs and many indirect jobs for locals while enabling the firm to develop new innovations and nutritional beverages for Vietnamese consumers, said Nestle Vietnam's Managing director Ganesan Ampalavanar at the event. The inauguration of the factory underlines the company's commitment to developing nutrition in Vietnam and to improving life quality and contributing to a healthier future, he added. Nestle is the world's largest food company, employing more than 328,000 employees worldwide. In Vietnam, it operates six factories with more than 2,000 employees nationwide and total investment of $520 million. http://english.vov.vn/economy/nestle-opens-new-factory-in-hung-yen-349885.vov

Mondelez International invests in cake-making line 22/May/2017 Intellasia| VN Economic Times New line at Hung Yen facility to meet increased demand. Mondelez International is investing in a new cake-making line at its Hung Yen facility to increase its capacity to meet robust market demand. The world-class line is aimed at making Vietnam a key manufacturing country in Asia-Pacific. According to Stephane Gripon, Managing director of Mondelez Kinh Do Vietnam, this investment is a key milestone in the success of Kinh Do's integration with Mondelēz International. "This investment is part of our integration masterplan and will bring our beloved brands to more consumers across Vietnam and Southeast Asia," Gripon told local media. "As the snacks market grows, we aim to increase our production capacity in line with the highest quality standards to systematically anticipate demand in the region. Therefore, we believe it's the right time to invest." The new line follows Mondelez's global quality standards and strictly follows Good Manufacturing Practices (GMP) to produce various brands of sponge cakes. It has also received Halal "A" certification from the Indonesian Council of Ulama (MUI). Its integration with Kinh Do since 2015 has been a game changer for Mondelez in Vietnam, creating a business with an annual revenue of more than $200 million and combining shared values and a passion for brands people love. Mondelēz International completed the acquisition of an 80 per cent stake in Kinh Do in July 2015. First announced in November 2014, the combination brings together Kinh Do's well-loved local snacks, including Kinh Do mooncakes and biscuits, Cosy biscuits, Solite soft cakes, and AFC crackers, with Mondelēz International's iconic global brands such as Oreo cookies, Ritz crackers, and Cadbury chocolate. Mondelez's team has worked hard to renovate their portfolio and innovate in new segments such as premium gifting with brands such as Lu, Cosy, Solite, and AFC. Oreo has also benefited from its strong distribution system in traditional trade channels. Lu La Collection Francaise, the company's new French butter cookies product, found success during the last Lunar New Year (Tet) holidays with very strong demand, and the Kinh Do brand has also been very dynamic across its fresh bread and mooncake offerings. Mondelēz International, Inc. is a global snack powerhouse, with pro-forma 2014 revenue of more than $30 billion. Creating delicious moments of joy in 165 countries, it is a world leader in biscuits, chocolate, gum, candy, and powdered beverages, with billion-dollar brands such as Oreo, LU and Nabisco biscuits, Cadbury, Cadbury Dairy Milk and Milka chocolate, Trident gum, and Tang powdered beverages. http://vneconomictimes.com/article/business/mondelez-international-invests-in-cake-making-line

ROK's CJ attempts to set up 'food empire' in Vietnam 22/May/2017 Intellasia| Vietnamnet Well-known Vietnamese names in the food industry have fallen into the hands of the world's largest conglomerates. The Vietnam food sector is attractive to investors because of its annual growth rate of 12 percent. CJ, an investor from the Republic of Korea (ROK), has step by step been taking over Vietnamese food companies, one after the other. Korea Herald reported that CJ CheilJedang, a subsidiary of CJ Group, has spent $13.44 million to acquire a 64.9 percent stake of Minh Dat Food, considered the biggest Vietnamese private meatball company with revenue of VND270 billion in 2016. The deal reportedly was made in secret in late 2016 and was only wrapped up officially in May 2017. The company has changed its name to Minh Dat CJ Food and it is recruiting workers for the new development stage. CJ buys Minh Dat because it believes that fish and meatballs are popular dishes in SE Asia in general and Vietnam in particular, and that Vietnam is a market with stable growth rate. The group plans to sell ready- made food, including meatballs in SE Asia through Minh Dat. A CJ representative said the policy on penetrating markets through local companies will help CJ minimise the business risks that it may face if using its own brand. That was why CJ collected another 20 percent stake of Cau Tre Export Goods Processing JSC in late April and early May after acquiring a 51 percent stake in the company. Cau Tre, specialising in making frozen food from seafood and meat, and tea products, has a long development history since 1982. However, the company has repeatedly reported losses since 2012. However, it is still attractive in CJ's eyes. Analysts said the large production premises of 80,000 square meters alone would be attractive to any investor. Besides, it also has other advantages. Cau Tre and Hiep Phuoc Industrial Zone JSC signed a contract to develop a project on a food processing complex on an area of 7 hectares, capitalised at VND1.2 trillion. Cau Tre also has a large distribution network and has large export markets. More importantly, Cau Tre is a familiar brand to consumers. To date, CJ has acquired a stake in many Vietnamese food companies, namely Satra, Cau Tre and Minh Dat. CJ is taking full advantage of Satra's sale network to distribute the food products it makes. Its subsidiary, specialising in foodCJ CheilJedang will cooperate with Satra to develop new food products based on the existing products of the two sides. Meanwhile, CJ Freshway, another CJ subsidiary, has officially become Satra's exclusive supplier of South Korean fruits. http://english.vov.vn/economy/roks-cj-attempts-to-set-up-food-empire-in-vietnam-349914.vov

K-Park aims to build 'little Seoul' in Hanoi 22/May/2017 Intellasia| VNS CenInvest Company and Hi Brand Vietnam Company on Wednesday signed a cooperation agreement to develop the K-Park apartment project in Hanoi's Ha Dong District. Speaking at the signing ceremony, Han Seung Mok, deputy general director of Hi Brand Vietnam, said they chose CenInvest as their long-term strategic partner due to its experience in the local real estate market. The K Park will have a green and modern living space with South Korean style apartments suitable for young residents. People can easily reach the city's centre and entertainment areas. Especially, the project is surrounded by two big parks and big lakes. http://bizhub.vn/property/k-park-aims-to-build-little-seoul-in-ha-noi_286249.html

Retail giant Lock & Lock introduces new product line in Vietnam 22/May/2017 Intellasia| VOV Iconic brand Lock & Lock known for its innovative and airtight food containers held a grand opening to introduce its newest product line P&Q (Price and Quality) on May 19 at its store in HCM City, VnExpress has reported. The new line of daily necessities, stationery, fashion accessories, toys and souvenirs are both safe and convenient to use, said Lock & Lock representatives at the grand opening, adding that they have been thoroughly tested and pose absolutely no health hazard to customers. Lock & Lock's movement to go beyond containers, quality cookware and glassware, and now offer daily necessities is our response to Vietnamese growing concern for their health combined with their need for convenience in all facets of daily life. Through this new P&Q lines, we harness technology to be able to create innovative products that can quickly and conveniently create healthy meals as well as lifestyles for the entire Vietnamese family, the representatives shared. http://english.vov.vn/economy/retail-giant-lock-lock-introduces-new-product-line-in-vietnam- 349900.vov

Vinamilk to invest in milch cow farm in Ha Nam 22/May/2017 Intellasia| VNA The northern province of Ha Nam has given nod to a milch cow farming project in Thanh Nguyen commune, Thanh Liem distrtict invested by the Vietnam Dairy Products Joint Stock Company (Vinamilk). At the 73rd meeting of the standing board of the provincial Party Committee on May 19, vice Chair of the provincial People's Committee Truong Minh Hien said the authorities agreed to grant Vinamilk a 40- year lease for a farm covering an area of 150ha with 4,000 heads of cow, and another 500ha for grass and corn cultivation. A station will also be built to purchase fresh milk from local farmers. Vinamilk is eligible for a 10 percent preferential tax, two-year tax waiver and 50 percent tax reduction for the next four years, tax exemption for animal export-import. The province also ensures sufficient infrastructure for the project, offers vocational training support, and pledges to fulfill 10 commitments to investors. Secretary of the provincial Party Committee Nguyen Dinh Khang asked relevant departments and agencies to complete administrative procedures, ensuring that the project meets schedule. http://en.vietnamplus.vn/vinamilk-to-invest-in-milch-cow-farm-in-ha-nam/112000.vnp

Parcelled together 22/May/2017 Intellasia| VN Economic Times The small size of land plots in Vietnam has long curtailed investment in agriculture but a new pilot project is set to change that. Located about 60 km south of Hanoi, Nhan Khang commune in Ly Nhan district, Ha Nam province, is surrounded by green plots of fruit and vegetables with well-planned irrigation and cultivation systems. The commune has been chosen to pilot an agricultural land accumulation policy over recent years, and at the end of last year the Ha Nam High-tech Agricultural Development and Investment JSC kicked off construction of its high-tech agricultural production area based on the agricultural land accumulation model. The land accumulation model has three different types: farmers gathering their land together and planting the same crops with the same inputs (like fertilisers), enterprises negotiating with each farming household individually to buy or lease their land, and local authorities leasing land from farmers and then sub-leasing the land to enterprises. Ha Nam High-tech Agriculture Development and Investment sub-leased land from local authorities and guarantees employment for the farmers the land was originally leased from. Tran Kim Lien, Chairwoman and CEO of the Vietnam National Seed Joint Stock Company (Vinaseed) and also CEO of Ha Nam High-tech Agricultural Development and Investment, said that the most important thing about this model is that it changes old production habits and involves local farmers in the process of land accumulation. "The technology must be extended so that farmers can join the chain," she said. "More than 200 farmers in Nhan Khang will be trained to become professional farmers on their own fields." Welcome news Ha Nam is one of the first provinces to successfully carry out the land accumulation model for large-scale and hi-tech agricultural development. After three years of applying the model, the province secured over 400 ha of agricultural land from farming households in Binh Luc and Ly Nhan districts, which attracted major groups such as Vingroup and Vinaseed as sub-lessors. Prime minister Nguyen Xuan Phuc recently tasked the Ministry of Natural Resources and Environment with quickly identifying solutions to address the limitations inherent in agricultural land ownership to boost land accumulation for large-scale farming and production in the third quarter of this year. This follows a request from the National Assembly (NA) to amend the 2013 Land Law in order to lift land limits. It was good news for domestic and foreign investors involved in Vietnam's agricultural sector. Article 129 of the 2013 Land Law allows each household in the Mekong Delta and southeast provinces a maximum of 3 ha for each type of farminggrowing trees, raising aquatic animals, processing saltwith a total of 9 ha for each household. In other areas of the country, these land plots are limited to 2 ha for each type. Scattered, small-sized land lots have hindered local people and enterprises from making long-term investments in agriculture, according to deputy minister of Agriculture and Rural Development Le Quoc Doanh. "Ninety-six per cent of agricultural land has been assigned to households, which resulted in land being scattered and large-scale production difficult," he said. Land is said to be one of the greatest obstacles facing investors in Vietnam's agriculture sector, which is one reason why foreign investment inflows remain modest. According to the Foreign Investment Agency at the Ministry of Planning and Investment, although 2016 was an impressive breakthrough year for the agriculture sector, foreign direct investment (FDI) into the sector fell short of expectations. The country attracted nearly 550 agriculture FDI projects, including agriculture, forestry and fishery, in the first eleven months of 2016, with total capital of nearly $4 billion, representing just 1.2 per cent of total investment. Average capital per project stood at about $6.7 million. Though recognising the development potential of Vietnam's agriculture sector, Hiroshi Chishima, deputy Chief Representative at the Japan External Trade Organisation (JETRO), said that many Japanese investors do not pour money into the sector because of difficulties in policies, especially land. He emphasised that in order to attract more foreign investment, Vietnam needs to address land issues and accelerate the implementation of administrative procedure reform. In order to encourage land accumulation for large-scale agricultural development, it is necessary to revise the 2013 Land Law by removing or loosening quotas on agricultural land, according to deputy minister Doanh. "The household economy, with scattered and small land lots, no longer meets the need to develop agriculture on a large scale," he said. "Promoting land accumulation and applying advanced technology on large-scale farms would improve the capacity, quality and competitiveness of the agriculture sector in particular and Vietnam's economy in general." Mixed opinions Consideration being given to relaxing limits on individual farmland holdings to boost land accumulation has been largely welcomed by experts despite some misgivings about the social impacts. Agreeing with the policy, former deputy minister of Natural Resources and Environment Dang Hung Vo told the recent Spring Conference on Agriculture 2017 in Hanoi that agricultural land limits have been lifted in developed countries, where farmers were provided favourable conditions to stabilise production and make long-term investments, and he advised Vietnam to do likewise as soon as possible. Le Duc Thinh, deputy director of the Department of Economic Cooperation and Rural Development at the Ministry of Agriculture and Rural Development, gave an overview to those in attendance of the government's efforts to improve agriculture. One of the most positive changes, he said, was that the government has begun prioritising quality of produce over maximising output, which was evidenced by the development of quality standards and sets of good practices. Nevertheless, he also pointed out numerous institutional flaws that hinder the development of agriculture, the most pressing being what he called a wrong attitude towards agricultural land. "Currently, agricultural land is priced at just one-tenth of the market price, and farmer-owners of these lands are unable to capitalise on their sole property, losing hundreds of billions of dong," he explained. Deputy prime minister Trinh Dinh Dung, meanwhile, addressed a conference on boosting land accumulation held in northern Vinh Phuc province on April 14, where he noted that it is necessary to carefully study the impact of land accumulation on society, agriculture, and the environment, especially the relaxation of land limits, to ensure the benefits of the State and of farmers. He urged those present to identify solutions to the conflict between land accumulation and the stability of local livelihoods and to also study effective land accumulation models. Pioneering groups While opinions are mixed, the land accumulation experiment in Ha Nam province has seen positive results. Investors are coordinating with authorities to renovate infrastructure such as canals and roads and to build greenhouses to prepare for the deployment of high-tech agriculture. Farming households that have handed over their land to the province are employed by the new owner on average monthly salaries of about VND3 million ($130) to VND4 million ($175). Local farmers not only earn income from land rentals but also receive vocational training. "Under the high-tech agricultural model, we expect sales to reach VND3 billion ($132,000) per hectare in 2017," said Lien from Ha Nam High-tech Agricultural Development and Investment. "This is certainly a good sign for the agriculture sector in Ha Nam province and a new milestone in the development of high-tech agriculture." Thai Huong, Chairwoman of the TH Group, recently made a bold claim: "If I had enough land, the central highlands would witness tremendous change within three years." It was no idle boast, given her efforts in the north-central province of Nghe An to establish a successful and large-scale dairy farm. She added, though, that it was not all smooth sailing. Unlike industrial projects, in order to carry out agricultural projects, businesses and local governments have to work very hard to convince farmers and households to lease their land. "It was a tiring, time-consuming, expensive process, and required the business to be really persuasive," she was quoted as saying. Vingroup, meanwhile, had to negotiate with over 3,000 households to get hold of just 140 ha of alluvial land in northern Nam Dinh province to establish a farm producing clean vegetables. Not all of them said yes, however, so the local government had to do a lot of "rearranging" to meet the company's demand for large, connected, uninterrupted land areas. http://vneconomictimes.com/article/business/parcelled-together

Insurope & Bao Viet hold multinational pooling workshop 22/May/2017 Intellasia| VN Economic Times Workshop enhanced understanding and cooperation within the insurance network of Insurope in the Asia-Pacific region. Insurope and Bao Viet Insurance hosted a "Multinational Pooling Workshop" in HCM City on May 15 to 17 for members of the Insurope network in the Asia-Pacific (APAC) region. The conference is held annually to enhance understanding and cooperation within the insurance network of Insurope in the APAC region and improve communications between Insurope and its members in providing insurance products and services for the employees of multinational corporations worldwide. Bao Viet Insurance was the sole representative from Vietnam attending the conference, joining Singapore's AXA, Indonesia's Allianz, Japan's Asahi Mutual, Thailand's FWD, and Hong Kong's Manulife. It was a chance for members to review the activities of Insurope's network in 2016, attend technical training, and hear of new programmes in employee benefits, with each country consulted by Insurope's experts on effective and appropriate business strategies. Each network member of Insurope had the chance to learn via the exchange of experiences in regional countries while at the same time having more opportunities to cooperate, expand relationships, and promote their image and prestige in the international insurance market. Insurope network is a network of independent insurance companies that provide employee benefit services to multinational corporations around the world. It offers a range of solutions and services to help multinationals manage their employee benefit programmes in a cost-effective way. Given the ever- increasing global nature of business, companies today need global solutions that are locally focused. Insurope is one of the leading multinational networks in the world and is recognised as a strong multinational pooling network with high service standards, flexible solutions, and strong local network members. Its vision is to be the network of choice for multinationals in managing their employee benefit programmes worldwide. Being the only representative of Vietnam and one of 13 Asian insurance businesses cooperating with Insurope's multinational insurance network, Bao Viet Insurance has provided employee benefit programmes with long term commitments to nearly 100 multinational corporations. The continuous cooperation between Bao Viet and Insurope over the last ten years is confirmation of the tight supportive partnership between the two. Bao Viet was recently named by the London-based Global Brands magazine as "Best Insurance Brand Vietnam 2017", based on its commitment to pursue superior value in initiative, quality, brand activities, the application of technology, risk management, customer service, and business results, to create a dynamic environment for non-life insurers in Vietnam. This demonstrates the relentless efforts of Bao Viet Insurance during its 50 years of operations, during which it has persistently set sustainable development and customer focus as its guiding principles. http://vneconomictimes.com/article/business/insurope-bao-viet-hold-multinational-pooling-workshop

VINAMED receives investment certificate for medical services centre in Thanh Hoa 22/May/2017 Intellasia| VIR Vietnam Medical Equipment Corporation (VINAMED) officially received the investment certificate to develop a high-quality medical services centre at Thanh Hoa general Hospital in the framework of Thanh Hoa Investment Promotion Conference 2017, which took place on May 18. The project has a total investment value of VND739 billion ($32.55 million) by Thanh Hoa general Hospital and VINAMED. The project is a paramount item in the plan of restructuring and developing healthcare services in the central province of Thanh Hoa by 2020 with vision to 2030, and is in line with Vietnam's comprehensive planning for the healthcare sector by 2020 with vision to 2030. Pham Quang Huy, chair of the VINAMED board of directors, said the investment in the high-quality medical service centre at Thanh Hoa general Hospital is a breakthrough for VINAMED after being transformed into a joint stock company. "Investment in hospital and related hospital infrastructure is one of the meaningful social activities VINAMED constantly pursues. We are committed to doing our best to promote public healthcare with the most practical activities at hand," said Huy. This is the second hospital constructed by aid from VINAMED in 2017. Formerly the Department of Basic Materials and Construction under the Ministry of Health (MoH), the company was officially renamed as VINAMED on May 2, 1996 by MoH's Decision No.720/BYT-QD. For nearly 30 years, VINAMED has been training highly responsible and enthusiastic management staff, pharmacists, and engineers. The company's trainees are knowledgeable about medical equipment, and have experience in business, logistics services, as well as equipment repair and installation. On July 12, 2016, VINAMED completed its equitisation and was officially transformed into a joint stock company focusing on medical equipment production and distribution, as well as medical technology building and consultancy, and communication systems (PACS) solutions, and healthcare investment. At Thanh Hoa Investment Promotion Conference 2017, 32 projects came closer to fruition. Some received their investment certificates or in-principle approval and other signed the memorandum of understanding with their hosting localities. The total planned investment for all project licensed and approved at the conference is VND135.3 trillion ($6.1 billion). The banks that joined the conference also committed to provide loans to 10 projects, most of which are in the fields of high-tech agriculture, construction, and port and infrastructure, with a total committed loan amount of VND1.5 trillion ($66 million). http://www.vir.com.vn/vinamed-receives-investment-certificate-for-medical-services-centre-in-thanh- hoa.html

Hoa Binh company expands to the Middle East 22/May/2017 Intellasia| VNA The Hoa Binh Construction & Real Estate Corporation (HBC) signed a cooperation agreement with HOT Engineering & Construction Company of Kuwait in Hanoi on May 19, as part of its strategy to expand into the Middle East. Accordingly, HOT Engineering & Construction will exclusively sponsor HBC in civil construction and infrastructure in Kuwait. The two companies will join biddings for the government and private sector's projects in Kuwait as well as others that HOT won contracts. Following the signing ceremony, they will continue with detailed plans on procedures for concrete projects between now and the next five years and join the Kuwait government's construction projects to materialise the 2035 Vision "Turning Kuwait into a financial and commercial centre in the region". The Kuwait firm also stands ready to help HBC become a major bidder for its construction works. HOT Engineering & Construction is currently one of the largest multi-disciplined engineering construction and maintenance companies in oil and gas, industry, civil infrastructure construction in Kuwait and the Middle East. http://en.vietnamplus.vn/hoa-binh-company-expands-to-the-middle-east/112001.vnp

Work starts on Nha Be garment factory in Soc Trang 22/May/2017 Intellasia| VNA The Nha Be Textile Garment Company (NBC) kicked off construction of a new garment making factory in the Mekong Delta province of Soc Trang on May 19. The factory, with total investment of more than 300 billion VND (13.2 million USD) will generate jobs for 4,000 workers, said Pham Phu Cuong, Chair of the Board of directors of the NBC. The first phase of the factory is scheduled to begin operation in February 2018, employing 2,000 workers, while the second phase of construction will begin in 2019. The factory has a design capacity of 25-30 million products per year, with estimated export turnover reaching 90-100 million USD per year in the first years in ooperation. Tran Van Chuyen, Chair of the provincial People's Committee said the new factory will create jobs for local residents and contribute to socio-economic development. The NBC is one of the leading businesses in Vietnam's textile-garment sector, with 37 affiliated companies and nearly 30,000 workers. Export turnover of the NBC hit 729 million USD in 2016 and expected to reach 820 million USD this year. http://en.vietnamplus.vn/work-starts-on-nha-be-garment-factory-in-soc-trang/111985.vnp

Real estate developers want legal 'identity card' for officetels 22/May/2017 Intellasia| Vietnamnet Though officetels and condotels are selling in the market, they still do not have positions in legal documents. Condotels (condominimum + hotel) and officetels (office + hotel) have been increasing in number in recent years. Officetels is a working office incorporated with a residence. Each office is designed to be self-contained, ensuring both office and residential functions (eating, sleeping and resting). They can be owned by private owners. When developing real estate projects in large cities, investors usually reserve area for officetels. In HCM City alone, since 2008, when the first project with officetels The Manor in Binh Thanh districtwas implemented, tens of thousands of officetels have been sold. However, ownership of them has not been recognised. Condotels exist in many of the resorts in Da Nang, Phu Quoc and Nha Trang. The projects with condotels are in high demand with investors in CocoBay (Da Nang), Aloha (Phan Thiet) and Panorama (Nha Trang). However, the buyers cannot obtain ownership certificate because condotels are not mentioned in legal documents. Nguyen Van Duc, deputy general director of Dat Lanh Real Estate, compared officetels with the child who still cannot get a certificate of birth though he was born years ago. Since officetels have not been legally tecognised, a lot of problems have arisen. Clients are interested in officetels because it can serve both as office and residence. However, there is a conflict between residents in normal apartments and officetel owners because the people pay fees at different levels. A senior official of the HCM City Construction Department said that the city is witnessing an 'officetel boom'. Pham Ngoc Lien from the HCM City Department of Natural Resources and the Environment confirmed that no officetel owner has been granted ownership certificate in the city, saying that the department is still awaiting guidance from the ministry. Meanwhile, a source from the Ministry of Construction's House & Real Estate Market Management Agency said the agency has sent a document to large cities, asking to consider the legitimacy of officetels and condotels. The document said though they are not mentioned in current laws, the type of real estate is in demand. In other countries, they exist in buildings with apartments, supermarkets and offices. The chair of a real estate firm in HCM City commented that the early recognition of the new types of real estate would make it easier for state agencies to manage. The agencies, for example, can control the business registration and tax payments when businesses lease officetels. http://english.vietnamnet.vn/fms/business/178407/real-estate-developers-want-legal--identity-card--for- officetels.html

Refreshing breeze of transparency: a list of ineligible projects 22/May/2017 Intellasia| VIR A list of all housing projects in which foreign organisations and individuals are not allowed to make purchases is being publicised by local authorities at the urgent bidding of the government. This breeze of transparency is considered a positive step towards encouraging foreigners to purchase accommodation and participate in the Vietnamese real estate business. According to the Housing Law 2014, which officially entered into force in 2015, all foreign organisations or individuals with a valid visa are eligible for homeownership in Vietnam. However, foreign ownership is limited in special areas, excluding purchasers from land plots directly related to the army, national defence or national security. The Ministry of Construction (MoC) has stipulated that all information related to foreign homeownership must be made public and posted on the web sites of provincial departments of Construction. MoC also stressed that if any foreign organisation or individual faces problems in the pursuit of owning a house in Vietnam, they can send their concerns to the ministry to receive prompt assistance. Foreigners have applauded the government's active participation and lauded the sentiment to create better conditions for foreign homeownership in Vietnam. According to Stephen Wyatt, country director of JLL Vietnam, in order to attract foreign buyers, the country needs a clear and transparent system with ample information available to the public, preferably via a website. "It is vitally important that all information is updated on a regular basis, not just for existing projects, but also for all new projects as soon as they are launched," Wyatt told VIR. "We always advise foreign buyers looking to invest in Vietnam to carry out full market research and due diligence to ensure the project has all the necessary licences and approvals," he added. Wyatt added that he is seeing considerable interest from buyers from Singapore, Korea, Taiwan, Hong Kong, Malaysia, and China. While the numbers are still relatively low compared to the size of the local market, with a clear and transparent system he expects to see the numbers of foreigners to grow over the coming years. Vietnam, according to Wyatt, offers foreign buyers an opportunity to enter the market with far less capital than they would need in their own countries. For example, a two bedroom apartment in District 2 of HCM City could cost $200,000 whereas a similar apartment in Singapore or Hong Kong can easily cost $1 million and over. http://www.vir.com.vn/refreshing-breeze-of-transparency-a-list-of-ineligible-projects.html

Unsold live pigs total 200,000 tonnes 22/May/2017 Intellasia| The Saigon Times Farms are sitting on about 200,000 tonnes of live pigs weighing 100 to 150 kilogram each that have remained unsold, according to a report by the Department of Livestock Production. At a conference on livestock consumption promotion on Wednesday, the department said live pig prices are on the wane in Mekong Delta, southeastern and northern provinces. Pig prices dipped to VND20,000- 25,000 per kilogram in March and April, the lowest in 10 years. In early May, pigs were sold at VND18,000-20,000 per kilogram. Farmers suffered losses of VND1-1.5 million (US$44.34-66.51) a pig on average. Hoang Thi Bich Hang, chairwoman of the Dong Nai Farmers' Union, told the Daily that 7,000-8,000 pigs are sold daily to major meat processor Vissan, two wholesale markets in HCM City and enterprises, supermarkets and markets in Dong Nai. Thus, buyers have been found for 300,000 pigs in Dong Nai Province. Pig prices in the province now range from VND22,000 to VND30,000 per kilogram. Pork prices at markets and supermarkets have dropped to VND45,000 per kilogram of pig legs and VND70,000 per kilogram of lean pork, Hang added. Supermarkets in HCM City have implemented numerous promotion programmes to boost pork consumption to support farmers. Doan Diep Binh, public relations manager at Lotte Mart, said Lotte Mart supermarkets will launch a non- profit pork sales programme on May 30, with a 30 percent discount offered for all pork products. Vo Hoang Anh, Saigon Co.op marketing director, said shoppers can get 10-20 percent off prices of pork products at Co.opmart supermarkets until May 25. Pork consumption has improved 15-20 percent, helped by discounts. The Co.opmart store chain currently sells about 1,000 tonnes of pork a month, said Anh. Pork prices at traditional wet markets in HCM City are stable as well. http://english.thesaigontimes.vn/54033/Unsold-live-pigs-total-200000-tonnes.html

Phu My Hung Midtown: Buyers intrigued to own condo by Sakura Park 22/May/2017 Intellasia| VIR The new complex in progress Phu My Hung Midtown is inspired by world-famous cosmopolitan vistas like Tokyo Midtown and Midtown Manhattan. Under the development plan, Phu My Hung Midtown will be a self-contained complex proffering residents a myriad of service facilities for convenience. Many domestic and foreign homebuyers have recognised the allure of the complex rising in the heart of the up and coming cosmopolitan district. In fact, Phu My Hung Midtown's first condominium tower known as The Grande has recorded a complete take-up following its launch. The Symphony is the second residential project in the complex which combines elegance and convenience in a prime location, capturing the attention of the market right from the launch of its model condos on April 27. The event showcased these model condos on Tran Van Tra Street in Phu My Hung urban area attracted nearly 600 customers, indicating that The Symphony promises to be hugely attractive to buyers. The complex was successful in capturing customers attention mostly because it has the first ever 11,600- square-metre Sakura Park in Vietnam. According to the developer, Singapore Sakura trees will be planted due to the climate in Vietnam. The park is designed for all age groups, with a recreational area for children, a meeting place inside the sculpture garden, a fountain square, and a quiet place for book-lovers. Featuring hundred Singapore Sakura trees bursting with colour for the viewer's pleasure, Phu My Hung Midtown is to become one of the top flowers viewing spots in the complex, enthralling residents with the ambience of the traditional Japanese spring festival, the Hanami. In addition, the capital value of Phu My Hung Midtown residential projects in general and The Symphony in particular, would increase faster upon reaching full occupation and being connected to the Sakura Park once the complex is completed. It will be an ideal destination for family-oriented homebuyers looking for their place in the sun. Moreover, international buyers focus on the reputation of developers, looking at track record, the development concept, high quality management and future operation. Essentially they are looking for long- term quality and sustainability. Phu My Hung Midtown are well managed in terms of architecture, landscape, and security to ensure the best living standard in the city, meeting the sophisticated needs of successful locals as well as expatriates. Homebuyers with school-age children will be spoilt for choice with many reputable international schools in the vicinity such as the Canadian International School, the Saigon South International School, the Japanese School, the Taipei School and the Korean School. Furthermore, The Symphony provides its future residents with easy access to a wide spectrum of on-site amenities, such as a swimming pool, fitness area, sauna, massage, and a library. There is also a plethora of outdoor facilities for homeowners, ranging from putting green to a beautiful rooftop gardens. Families can also enjoy healthy living environment at The Symphony thanks to the high green coverage ratio in Phu My Hung City Centre urban area. The residential area's towers are developed with different heights to ensure apartments receive abundant natural light and wind from large windows. Above all, Phu My Hung has experienced security contractors offering 24 hour surveillance CCTV coverage to ensure residents' safety. Meanwhile, its property management team will take care of all kinds of maintenance to maximise the value of clients' assets. Hence, Phu My Hung Midtown's 319-unit residential project The Symphony allows homeowners to enjoy the best of cosmopolitan life in HCM City. http://www.vir.com.vn/phu-my-hung-midtown-buyers-intrigued-to-own-condo-by-sakura-park.html

Sales open at high-end Viet Duc Complex 22/May/2017 Intellasia| VN Economic Times Developer holds ceremony to open sales at high-end apartment complex in Hanoi's Thanh Xuan district. The Song DaViet Duc Investment JSC has held a ceremony to open sales at the Viet Duc Complex at 39 Le Van Luong Street, Hanoi, showcasing a model apartment. The high-end apartment project is a joint venture between three companies: the Song DaViet Duc JSC, the Construction and Industrial Equipment Corporation, and the Construction Materials Trading JSC. The owner hopes to bring to customers an ideal, modern and friendly environment with perfect quality and competitive prices. The developer will launch 250 apartments during the opening of sales at prices from VD24.5 million ($1,078) per sq m. It will give also present a special gift (a diamond empire diamond ring worth up to $2,000) to customers purchasing an apartment during the opening. Customers can also access preferential loans for up to 80 per cent of the purchase from reputable banks such as BIDV, MBank, and Vietinbank. According to Nguyen Van Bay, Chair of the Song DaViet Duc Investment JSC, with a construction speed of five to six days per floor, the Viet Duc Complex has seen remarkable progress, with 14 floors completed since construction began early last year, which is one of the fastest rates in Hanoi at the moment. Bay also said the project has fully prepared all resources, applying modern technology such as 3D panels from Germany. "With its construction pace, we pledge that the project will be completed in less than one year," he said. Located in a prime position in the capital on a land area of nearly 1.2 ha, the Viet Duc Complex has 40 per cent of its land area for construction, with the remainder for a green space and public areas. It utilities and services harmonise people and nature. It has a four-seasons swimming pool, a large community space, a nursery school, an outdoor playground, and other facilities such as a coffee shop, a gym, a supermarket, and a shopping centre. The project is designed to be multi-functional and multi-experience and will optimise functions in all rooms. It also boasts the 13-ha Nhan Chinh Lake, which provides a great view and fresh air. The centre of the apartment complex is a green space designed in a scientific manner. In addition to its modern elevator system, each building also has a service elevator for carrying household waste, which helps to ensure hygiene and reduces the risk of fire. At reasonable prices from only VND24.5 million ($1,078) per sq m and superior advantages in infrastructure and facilities, the Viet Duc Complex is a perfect choice for families. http://vneconomictimes.com/article/property/sales-open-at-high-end-viet-duc-complex

New airport terminal in Da Nang officially opens 22/May/2017 Intellasia| VNA After 18 months of construction, Da Nang International Airport officially launched its new terminal at a ceremony held on May 19. The project is a key part of preparations for the Asia-Pacific Economic Cooperation (Apec) Summit, which will be hosted in the city this November. The new terminal, which covers an area of 21,000sq.m, with total investment of 3.5 trillion VND (155 million USD), offers 82 counters for check-in, check-out, migration and immigration, as well as 10 boarding gates that will accommodate six million passengers per year, and serve 1,600 passengers at peak hours. General director of the Da Nang International Terminal Investment and Operation, Le Khac Hong said the introduction of the new terminal would help ease the overloading that occurred at the old terminal. He said that Da Nang Airport is already overloaded with an estimated 6.5 million arrivals per year. "The new terminal will have seven more hangars bringing the total to 21, an upgraded runaway and a landing area for backed-up flights in the near future," Hong said. The city's airport is now the third largest airport in Vietnam, after Noi Bai International Airport in Hanoi and Tan Son Nhat in the southern economic hub of HCM City. It is an important gateway to the central and Central Highlands region. The airport accommodates 150 flight arrivals and departures, 15,000 passengers and about 50 tonnes of cargo every day. An additional cargo terminal is also planned which would add 16,000 tonnes of cargo capacity. Last week, national carrier Vietnam Airlines and budget Jetstar Pacific Airlines began using the new terminal for their international flights. Last year, the government allocated 400 billion VND (17.9 million USD) from the central government budget to support Da Nang's preparations to host the 2017 Apec Summit. Last month, the city also started a countdown to the 2017 Apec Summit in Da Nang. As planned, the city will host heads of state and CEOs from 21 member economies during the week of November 5 to 11. http://en.vietnamplus.vn/new-airport-terminal-in-da-nang-officially-opens/112006.vnp

VNA launches daily HN-Dong Hoi flights 22/May/2017 Intellasia| VNS National flag carrier Vietnam Airlines (VNA) will work with the Vietnam Air Service Company (VASCO) to operate two daily flights connecting Hanoi and Quang Binh Province from May 29, the carrier announced on Thursday. The VNA flights, using Airbus A321s, will take off at 6:30am from Hanoi and 8:30am from Dong Hoi City. Meanwhile, passengers on ATR72 aircraft, operated by VASCO, will leave Hanoi at 2:30pm and Dong Hoi at 4:30pm. Promotional air fares on the route, priced from VND299,000 (US$13.2), are available for flights departing between May 29, 2017 and March 31, 2018. Earlier in March, Vietnam Airlines transferred the Hanoi-Dong Hoi air route to VASCO to operate seven round trips per week, using the 68-seat ATR72 aircraft. The move is part of Vietnam Airlines Corporation's plan to improve operational efficiency of its subordinate airlines Vietnam Airlines, VASCO and Jetstar Pacific Airlines and expand VASCO's business to meet increasing demand. Vietnam Airlines has, so far, transferred the HCM City- Rach Gia-Phu Quoc, HCM City-Phu Quoc-Can Tho and Hanoi-Dien Bien flights to VASCO. Meanwhile, air routes between Hanoi/HCM City-Tuy Hoa and HCM City-Chu Lai were transferred to Jetstar Pacific Airlines. http://vietnamnews.vn/economy/376735/vna-launches-daily-hn-dong-hoi-flights.html

Vietnam Airlines offers cheap tickets to HK 22/May/2017 Intellasia| VNS Vietnam Airlines has launched a special offer on HCM City-Hong Kong flights, with a round-trip ticket costing only VND2.35 million (US$104). Tickets are being sold and valid from now until December 31. The route is operated by Airbus A321 with international fourstar service quality, and is completed in 2 hours and 45 minutes. Being one of the Asia's leading financial and shopping hubs, Hong Kong is known for its dynamism and popular attractions such as the Disneyland, Sky Tower, the Peak and Star Avenue. http://bizhub.vn/news/viet-nam-airlines-offers-cheap-tickets-to-hong-kong_286262.html

CMC launches anti-malware software 22/May/2017 Intellasia| VNS Vietnam-based technology corporation CMC on May 19 released its anti-data encryption software CMC CryptoShield, which offers protection from ransomware. Ransomware is software that blocks access to a computer system until the hackers behind the attack are paid. CMC CryptoShield is designed to prevent all forms of malicious code by applying artificial intelligence. The artificial intelligence system integrated in CMC CryptoShield can recognise all micro-encoded data and block it. Ransomware has become a new global threat and profitable business and with the boom of difficult to trace cryptocurrencies in recent years, most notably Bitcoin, hackers can get ransom without being traced. CMC CryptoShield ensures that all user data will be put into a secure and inviolable area right before it is encrypted, said Vu Lam Bang, director of CMC's Research and Development Centre at the launch ceremony of CMC CryptoShield. Artificial intelligence is a weapon in the fight against hackers and malicious code. It has been integrated in CMC CryptoShield and users just need to turn it on so that all the data on their computer is safe, said Trieu Tran Duc, general director of CMC InfoSec under CMC corporation at the launch. http://vietnamnews.vn/economy/376758/cmc-launches-anti-malware-software.html

Path to EU widened for Vietnamese garments-textiles 23/May/2017 Intellasia| VNA Vietnam's garment-textile sector is expected to expand its markets once the Vietnam-EU Free Trade Agreement (EVFTA) comes into force in early 2018, reducing tax on Vietnamese garments and textiles exported the EU to zero percent over the next seven years. Europe is a promising market for Vietnamese garments and textiles with export turnover reaching $3.5 billion in 2016, just behind the US. Truong Van Cam, vice President of the Vietnam Textile and Apparel Association (VITAS), described rules of origin as the most important thing in the agreement. He said, Vietnamese garment-textile firms must ensure that their products originate from Vietnam or use materials imported from the EU or the bloc's trade partners. The local garment-textile industry is still heavily dependant on imported materials, mostly from China, the Republic of Korea (RoK) and Taiwan (China), with the fabric sector, for example, importing up to 86 percent of materials for production and export. VITAS deputy Secretary general Vu Thi Phuong suggested domestic enterprises review their investment and business strategies to catch up with the transformation from the cut-make-and-trim production model to free-on-board and original design manufacturing (ODM) practices. According to Phuong, apart from strict rules, the agreement also offers an open mechanism to the Vietnamese side, saying that products using materials from the EU's partner countries will also enjoy the tariff breaks. Under the agreement, fabrics from the RoK, which has a free trade agreement with the EU, are considered as having clear product origin and are eligible for the tax reduction. VITAS statistics show that the garment-textile sector spends more than 10 billion USD each year on importing fabric, with more than half from China, about 18 percent from the RoK and 15 percent from Taiwan (China). If Vietnamese firms continue to import materials from China, they will find it hard to benefit from the EVFTA, the association said. European experts proposed local enterprises learn the rules and the roadmap for tariff reductions in order to better access the market. http://english.vov.vn/economy/path-to-eu-widened-for-vietnamese-garmentstextiles-350035.vov

Vietnam urges Australia to ease shrimp trade ban 23/May/2017 Intellasia| VNS Vietnam is working to persuade Australia towards an early lift of its ban on import of Vietnamese shrimp and uncooked shelled shrimp. The Ministry of Industry and Trade (MoIT), in co-ordination with the Ministry of Agriculture and Rural Development, is working with the relevant agencies in Australia in this regard. On January 7, the Australian Department of Agriculture and Natural Resources announced the suspension of prawn and uncooked shelled shrimp imports from Asian nations fearing an outbreak of the white spot disease in Australia. The ban took effect on January 9 and will last for six months. The MoIT has raised the issue of ban at all bilateral meetings with the Australian side, expressing Vietnam's concerns and asking Australia to consider lifting the ban or replacing it with other measures that would have less impact on business. Minister of Industry and Trade Tran Tuan Anh sent a public letter to the minister of Trade, Tourism and Investment and the minister of Agriculture and Water Resources of Australia regarding the matter in February. According to the MoIT, Australia's minister of Agriculture and Water Resources and the minister of Trade, Tourism and Investment sent their replies on March 8 and April 30, respectively, explaining that the ban was based on regulations for bio-security. They added that the Department of Agriculture and Water Resources was working on the matter, including reviewing of the import conditions for products targeted by the ban, to make the decision on resumption of safe trading of shrimps. The Australian ministers affirmed that bilateral trade with Vietnam was important to their country, including trading in agricultural products. They said Australia was willing to cooperate with Vietnam to review the risk assessment measures. http://bizhub.vn/news/viet-nam-urges-australia-to-ease-shrimp-trade-ban_286278.html

Vietnam looks to put rice on Europe's plate 23/May/2017 Intellasia| VNA Up to 100,000 tonnes of Vietnamese rice will be shipped to the EU each year tax-free in 2018 following the Vietnam-EU Free Trade Agreement, helping local rice exporters penetrate the market. However, it remains to be seen if Vietnamese businesses can take advantage of this opportunity as the EU has strict technical barriers which most may struggle to satisfy, according to Lam Tuan Anh, director of Thinh Phat Ltd, Co. Only firms which have their own material areas and can control rice quality from cultivation to processing can access the market, Tuan Anh said, explaining that rice is a sensitive staple that is not included in many other free trade agreements. Despite being the world's third largest rice exporter, Vietnam is still in the early stages of building an image in the EU. Experts said the EU is a promising market because of local consumers' high living standards. Although only a few rice exporting countries compete in the market such as Myanmar, Cambodia and Thailand, they all have good quality rice, experts said, urging Vietnam to create a brand name for its rice. Vietnam's Commercial Affairs Office in Sweden, Norway, Denmark, Finland, Iceland and Latvia, suggested Vietnamese businesses pay more heed to food safety to deliver their rice to Sweden and other Northern European countries. Vietnam's rice exports to the region have remained limited in turnover and varieties, according to the office. Although demand for rice in Northern Europe is not huge, the region could be a promising market for Vietnamese rice if the country receives trade incentives and satisfys locals' taste, a representative from the office said. Vietnam has a huge opportunity to export farm produce like rice, vegetable, fruit and honey to the EU. The Netherlands, Vietnam's third largest rice importer in the EU, just behind Germany and the UK, is expected to serve as a gateway helping Vietnamese products go in other EU countries. Many experts said that the Vietnamese government should look to policy support and trade promotion to boost rice exports to the EU and Northern Europe in particular. Vietnam exported 1.1 million tonnes of rice in the first quarter of this year, down 23 percent in volume and 18 percent in value compared to the same period last year. China remained the largest rice importer in the period at 448,000 tonnes, 41 percent of total rice exports, followed by the Philippines and Africa with 20 percent and 13 percent, respectively. http://en.vietnamplus.vn/vietnam-looks-to-put-rice-on-europes-plate/112063.vnp

Government issues tra fish regulations 23/May/2017 Intellasia| VNA The government has issued a decree on aquaculture management, and tra fish products processing and export, the government Office reported. According to the decree, which will be effective on July 1, 2017, activities involving the farming of commercial tra fish must meet four conditions. Individuals and organisations rearing tra fish must have their locations and area suitable with land use plans of the provincial People's Committee. They must have infrastructure that meets technical conditions for farming commercial tra fish such as water supply system seperating from waste water system and waste treatment area meeting conditions on protecting environment and veterinary hygiene. Aquaculture facilities must meet regulations on food safety and have certificate on identification number for ponds farming tra fish according to existing regulations. The decree also has regulations on commercial tra fish processing conditions. The individuals and organisations farming tra fish must satisfy conditions of investment and business according to the July 1, 2016 decree. They must carry out regulations and technical standards on food safety for seafood processing and have a certificate of eligibility for food safety granted by relevant State offices. They must have a traceability system meeting regulations and ensuring ability of traceability at the facilities. Tra fish products that are exported must be processed at tra fish processing facilities meeting all the conditions mentioned above. If individuals and organisations exporting tra fish products do not have processing facility as per the requirement, they must have contracts on purchasing tra fish products from facilities meeting those conditions or contracts on processing the products from eligible facilities. Decree 55/2017/ND-CP has specific regulations on registering identification number for ponds farming tra fish and regulations on quality and food safety for commercial tra fish products. It also stipulates responsibilities of the Ministry of Agriculture and Rural Development, Ministry of Industry and Trade, Ministry of Foreign Affairs, and Ministry of Finance to carry out this decree, supervise implementation of this decree and solve commercial disputes related with tra fish export products. The people's committees of central-level provinces and cities have been given directions on implementing this decree in their provinces and cities and have land use plans for farming tra fish and reports on farming, processing and exporting of tra fish. http://en.vietnamplus.vn/government-issues-tra-fish-regulations/112098.vnp

Quang Ngai wants $4.25b of investment 23/May/2017 Intellasia| VNS The central province of Quang Ngai aims to lure total investment capital of $4.25 billion by 2020, via an investment promotion programme from 2017-20. Of the sum, $2.5 billion-$3.5 billion is expected to flow into Dung Quat Open Economic Zone and industrial zones (IZs) while the remainder is expected for other locations in the locality, baodautu.vn reported. Prioritised sectors for investment include processing, supporting industry, urban and IZs infrastructure development, sea ports and maritime services in addition to high-tech agriculture, tourism and services. As of March 2017, the province had attracted 41 foreign-invested projects, worth more than $1.1 billion, 30th among 64 localities in foreign investment attraction, the Foreign Investment Agency's revealed. To attract more investment, the province offers investors minimum land rents, equivalent to 0.5 per cent of land prices in a framework stipulated by the government, according to the provincial People's Committee. The province also assists investors with 20 per cent of site clearance costs for some projects and with 50- 90 per cent of infrastructure investments for projects involved in education, healthcare and culture, as well as sport and the environment. It helps investors deal with administrative procedures via a one-stop shop mechanism, while supporting them in trade, promotion and labour training. http://vietnamnews.vn/economy/376875/quang-ngai-wants-425b-of- investment.html#tQ3QqVQCdJcTZ4vB.97

Betting on loans: Vietnam's companies named the biggest risk takers in Southeast Asia 23/May/2017 Intellasia| Vnexpress A report found that Vietnamese corporate borrowers are turning to leveraging for fast expansion, despite poor repayment capacity. Vietnam has been ranked worst in Southeast Asia in a recent corporate health report released by investment bank Natixis, which flagged companies in the country for high leverage and their poor ability to repay debt. According to the latest Asean Corporate Monitor report, Vietnamese businesses seem to be turning back to the old formula for growth: taking risks with borrowed money to pursue projects. They turn to loans to pursue projects hoping to make profits that can exceed the cost of loans. The report showed that, amid the sluggish global economy, Vietnamese companies continued to ramp up investment without any sign of slowing down. "Like any potentially dangerous instrument, leveraging must be handled carefully," said Phuong Pham, an auditor at Ernst & Young Vietnam. "Every firm can use its power to build wealth, but the question is whether the investment could turn into fruitful project," she said. "It's like gambling." Taking the real estate sector as an example, Phuong said if a developer fails to sell its units after taking out huge loans, it's a big problem. Then imagine a scenario where multiple companies in various industries cannot pay their debts and you could see why growth might take a hit, she said. Loans expanded 5.3 percent in the first four months, estimated by the National Finance Supervisor Commission. The central bank is targetting credit growth of around 18 percent this year, after last year's 18.71 percent. http://e.vnexpress.net/news/business/data-speaks/betting-on-loans-vietnam-s-companies-named-the- biggest-risk-takers-in-southeast-asia-3584920.html

Black gold and a bleak future 23/May/2017 Intellasia| VNS Vietnam has 20 thermal power plants now and plans to have more than double that by 2050. Off the cuff, this makes sense. The nation is growing and needs more energy than ever. However, if we look beyond mere numbers and visualise the social and environmental impacts of 51 coal-powered plants in the country, the rosy picture is blackened considerably, literally and otherwise. A study published earlier this year by a group of researchers from Havard University and Greenpeace, an international non-governmental environmental organisation based in Amsterdam, cautions that by 2030, Vietnam and Indonesia will be among the nations worst affected by coal pollution. If this sounds a bit abstract, consider this estimate: Premature mortality rate due to coal plant emissions will cause 188 excess deaths per million in Vietnam, with 85 the corresponding figure for Indonesia. And if this doesn't give us pause, and 2030 and 2050 seem a bit too distant to worry about, imagine this: waste from coal power plants will pollute our land and water, affect crop production, kill marine life, and affect the livelihood of hundreds of thousands of people. Ah, we cannot make omelettes without breaking eggs, goes the usual response. So, let us imagine the impact of this breaking of eggs, if not on us, on our children and succeeding generations, based on evidence we already have from all around the world: more respiratory diseases, congestive heart failures, chronic bronchitis, severe asthma attacks, and so on. Earlier this year, the Cebu leg of a campaign called "The Break Free 2017" commenced with a 60- kilometer "climate walk" tracing the path of existing and proposed coal plants in Cebu province, Philippines. The groups comprising Break Free 2017 argue that the approval of coal projects disregards the health and livelihood impacts on people, especially in the immediate vicinity of the plants. Uncomfortably close to home, northern China was covered in thick, toxic smog in January this year. Experts blamed thermal power plants. The other side of this picture is that China's economic miracle was powered by cheap coal, which still provides 70 per cent of the country's energy. But the country is paying a price that we cannot ignore. More importantly, we cannot afford to repeat this mistake. Soon after one of the worst episodes of air pollution in the country that affected 460 million people, Beijing closed its last coal power plant in March, switching to natural gas. However, there is a long way to go as far as the clean-up operation is concerned, and the monetary bill is hefty: $275 billion (and counting). Economic contingencies While more and more countries are turning their backs on thermal power and opting for more environmentally friendly and sustainable alternatives, why is Vietnam persisting with it? The policymakers' answer is simple: it's more affordable at a time when money is tight. With growing demand for energy (10 per cent annually), coal power seems to be the only choice for the country, particularly when it has just pulled away from nuclear power (last year) because of concerns about economic feasibility and safety. The government has said that the 6,000MW capacity that was supposed to be provided by nuclear power, will now have to be generated from fossil fuels. The national power masterplan clearly envisages thermal power as the main source of energy. This means that by 2020 the country will be burning 63 million tonnes of coal, with the number rising to approximately 129 million tonnes when all of the planned 51 plants begin operations. It is impossible not to be anxious and worried about this when there are places where people have to wear masks whenever they go out, and have to buy clean air packed in cans imported from some European countries. To emphasize, it is not reassuring that at a time when there is greater global focus on renewable energy and alternatives to conventional power sources, Vietnam is planning many more coal power plants. Can we really afford the recently approved Long An Coal Power Plant, just 30km away from crowded HCM City. Do we really have significantly safer ways of producing thermal power? The time for making choices based on the cheapest monetary option is long over. The leadership has been very vocal that the environment will not be sacrificed for economic growth. This rhetoric has to be backed with very tough choices. It is worth mentioning here that the tough choices are a little less so, because the cost of wind and solar energy production has fallen considerably. Making tough choices starts with asking tough questions. Can we wait until we become "richer" to consider shifting firmly to renewable sources like wind and solar energy? Would we ever become rich in the real sense of the word, if we have to compromise our health to do so? We do not have to look elsewhere for examples of extreme hardship caused by environmental pollution. The Vedan and Formosa induced disasters are still fresh in our mind. Vietnam has committed to an 8 per cent cut in greenhouse gas emissions by 2030, saying it can even do better with international support. Can this be done with such a huge reliance on coal power? Obvious answers While we ask tough questions and consider tough choices, there are some things that we absolutely HAVE to do. For already existing coal power plants, the government should apply strict environmental standards and supervise compliance. Investors should apply eco-friendly solutions handling coal ash. A study by Ohio State University in 2013 found a far cleaner way to use coal energy a process called chemical looping that has the potential to reduce or eliminate a wide range of pollutants, including carbon dioxide and smog-forming nitrogen oxides. If we have to burn it, we need to burn it wisely. We should also learn lessons from other countries. Ontario, Canada, has built hundreds of windmills on farmland along the corridor from Windsor to Toronto in a big effort to wean its economy off coal. Chile, a country that has thought for long that it is energy poor, has "discovered" solar power with a vengeance. The World Bank has already identified great potential for harnessing wind energy in Vietnam's south central regions and Mekong Delta. And experts have found great promise in solar power, too. Vietnam needs to incentivise private investors to develop renweable energy. EurocCham vice Chair Tomaso Andreatta once said foreign investors were uncertain about Vietnam as there was neither a consolidated renewable energy law nor sufficient incentives to encourage investment in this area. Where there's a will, there's a way. So, time for another tough question. Will we find that will? PV Power urged to speed up thermal projects Deputy prime minister Trinh Dinh Dung urged PV Power, a member company of the Vietnam Oil and Gas Group (PVN), to accelerate the implementation of electricity projects while addressing the firm's 10th anniversary in Hanoi on Wednesday. PV Power produces nearly 7 per cent of the 42,000MW of electricity generated nationwide. According to the national electricity development plan, power capacity will increase by 1.5 times by 2020 and three times by 2030, with coal and gas-fueled power contributing 60 per cent. With the current uneven distribution of electricity, the south is forecast to suffer from electricity shortages if thermal power projects are not put into operation as scheduled. Therefore, the electricity sector and PV Power have an important task, Dung said. He recognised the company's achievements over the past 10 years and asked it to mobilise all financial and human resources to speed up thermal power projects in the north and south. The deputy PM asked PV Power to operate power plants in the most efficient ways possible while finalising investment procedures for new projects. At the same time, the company should continue restructuring and focus on main manufacturing activities, he added. Director general of the PVN Nguyen Vu Truong Son pledged to support PV Power to carry out electricity projects and carry out existing ones. In 10 years of existence, PV Power has generated 138 billion kWh of electricity and grossed about VND180 trillion (US$8.4 billion) in revenue, earned pre-tax profits of VND9.63 trillion ($423 million) and contributed VND8.83 trillion ($388 million) to the State budget. http://english.vietnamnet.vn/fms/business/178736/black-gold-and-a-bleak-future.html

Vietnam wrestles with contraband cigarettes 23/May/2017 Intellasia| Tuoitre News The tug-of-war between tobacco smugglers and anti-smuggling forces in border localities in Vietnam remains tough despite local authorities' ceaseless efforts. While cigarette smuggling remains rife in provinces bordering Cambodia to the detriment of the state budget as well as people's health, local cigarette producers are concerned that contraband tobacco may get officially circulated in a controversial move proposed by the government. Despite heavier traffic in Chau Doc City in the Mekong Delta of An Giang as the locality has entered its peak tourism season, tobacco smugglers are often spotted carrying their illicit goods and driving their motorcycles with no license plates at high speed on several streets. They typically speed off in small groups every 10 minutes. The 389 National Steering Committee, tasked with combating smuggling, commercial fraud and counterfeiting, disclosed the opposite periphery is currently home to 26 warehouses storing contraband tobacco which can be sneaked into Vietnam any time. Anti-smuggling forces are well aware of their unlawful operations, but have faced immense difficulty in their efforts to break up these rackets. Many traffickers have remained elusive thanks to sophisticated tricks to carry and hide their products, including storing them at smugglers' houses and other locations, as well as constantly changing their means of transport and 'workplaces.' With eyes and ears everywhere, these men are always on high alert and swiftly flee the areas or even leave their wares behind if detected. An increasing volume of cigarettes is also being smuggled into Long An Province, approximately 50 kilometers from HCM City, from Cambodia. They have made a comeback after intensive campaigns to curb trafficking have subsided. Smugglers are mostly spotted sneaking goods along Provincial Highways 8 and 9 from Loc Giang Commune, Duc Hoa District and My Quy Tay Commune in Duc Hue District on their way to HCM City. Conflicting laws Amidst the heat, laws regarding efforts to curb and battle smuggled tobacco remain contradictory. In an official dispatch submitted to the government Office in September 2016, the Ministry of Justice pointed to classifying illegally imported cigarettes as contraband or goods allowed to be traded on certain conditions as one of the difficulties. The legal basis for criminal penalties also remains incoherent regarding whether smugglers will be prosecuted if they deal in 500 packs or 1,500 packs of cigarettes. The 2015 Criminal Code also changed the legal basis from the amount (over 1,500 packs) to the contraband's monetary value (more than VND100 million (US$4,353)), which is equivalent to more than 6,000 packs. This has rendered criminal penalisation virtually impossible, as there are no legal grounds to evaluate contraband cigarettes. The incoherence has left nearly 70 smuggling cases with more than 500 packs of cigarettes seized by policemen in An Giang within the first three months of 2017 insolvable. Relevant agencies in Can Tho City and Long An Province are still struggling to handle dozens of such cases. Meanwhile, the government Office has just sent an official dispatch to the Ministry of Finance, the Ministry of Industry and Trade and the People's Committees in Long An and An Giang to notify them of prime minister Nguyen Xuan Phuc's stance on a proposition to re-export seized tobacco. Contraband will be destroyed if found to be counterfeit items. Higher-quality illicit cigarettes, meanwhile, will be up for auction for domestic consumption or re-export through international border gates on a pilot basis. Concurring with the opinion, Nguyen Xuan Hong, deputy director of the Long An Department of Industry and Trade, said annihilating contraband inadvertently helps consume foreign producers' cigarettes more quickly. Re-export will earn the local sector an average of VND6,000 ($0.3) a pack, which will support anti- smuggling efforts, he argued. By contrast, Saigon Industry Corp. and Khanh Viet Corp., based in the south-central province of Khanh Hoa, have voiced their objections to this proposition. Representatives of these companies raised questions regarding how to assess the quality of illegally transported tobacco. JET and HERO products, which account for approximately 80 percent of the contraband cigarette market in Vietnam, are mostly turned away in other countries,which means a higher possibility for the shipments to return to Vietnam. They also call for different taxes, including special consumption and value-added duties, to be scrapped on local products to ensure fair competition with their smuggled counterparts. Likewise, representatives of the Vietnam Tobacco Association maintained that the proposition would contradict current rules, including the Law on Prevention and Control of Tobacco Harms, which stipulates stringent technical criteria that local producers have strictly conformed to, but are overlooked by contraband makers. Many illicit products breach a number of regulations on tobacco management stipulated by Vietnamese law, the association said. Many brands, such as JET and HERO, are sold without any picture health warning, place and year of manufacture, and expiration date. The toxicity of these products, which contain forbidden substances such as coumarin and cadimi, is also far higher than the rates allowed by the Vietnamese Ministry of Health, according to reports by the Criminal Science Institute under the Ministry of Public Security and the Tobacco Institute. Local experts pointed out that the World Health Organization Framework Convention on Tobacco Control (WHO FCTC), of which Vietnam is a member, stipulates that all seized, smuggled or counterfeit cigarettes and production equipment be destroyed. "Without outlets in other countries, there are good chances that re-exported contraband cigarettes will penetrate the domestic market once again," a pundit from the Ministry of Industry and Trade warned. http://tuoitrenews.vn/business/41089/vietnam-wrestles-with-contraband-cigarettes

Vietnam eyes 7,000 ha of shrimp farming on sandy land by 2025 23/May/2017 Intellasia| VNA Vietnam aims to expand shrimp aquaculture on sandy land to 7,000 hectares by 2025, produce some 110,000 tonnes per crop, and ensure 70 percent of these areas have developed infrastructure, according to the directorate of Fisheries at the Ministry of Agriculture and Rural Development. Shrimp aquaculture on sandy land will help the country use unproductive sandy land along coastal areas to cultivate high-value brackish shrimp, bringing more jobs and economic benefits to local residents, the directorate said. The directorate plans to only raise shrimp in areas with sufficient surface water to reduce the use of ground water, which is limited in central Vietnam. It will also take into account effects of climate change and apply advanced technology to save fresh water. The state agency will encourage private sector investment in shrimp farming on sandy land to develop self-contained shrimp ecosystems. It will formulate a master plan to facilitate shrimp growing on sandy land in central provinces as part of the national action plan to develop the shrimp industry in Vietnam by 2025 and invest to develop infrastructure for areas of large-scale shrimp production. In addition, it will set tight controls on production input such as breeds and feeds environment management, disease prevention, and food safety, and encourage cooperation between shrimp growers, input suppliers and distributors. In 2016, Vietnam had more than 3,700 hectares of shrimp farming on sandy land across 14 central provinces, generating some 41,700 tonnes per crop. Binh Thuan had the most area, accounting for 28 percent of the country's total. It was followed by Ninh Thuan (18 percent), Phu Yen (16 percent) and Thua Thien-Hue (14 percent). Quang Nam produced the highest yield of more than 20 tonnes per hectare, followed by Quang Ngai with 17 tonnes per hectare. http://en.vietnamplus.vn/vietnam-eyes-7000-ha-of-shrimp-farming-on-sandy-land-by-2025/112068.vnp

Asean auto demand predicted to grow in 2017 23/May/2017 Intellasia| VNA Asean auto demand is forecast to continue rising in the rest of this year, despite the saturation of the market, according to a survey by the Financial Times' Confidential Research (FTCR) for the region in the first quarter of this year. In quarter one, the Auto Purchase Index (API), which measures the six-month outlook for auto sales, is positive for Indonesia and Thailand, but negative for Malaysia, the Philippines and Vietnam. Indonesia enjoyed a 6 percent rise year-on-year in auto sales, while Thailand saw a 15.9 percent increase year-on-year. Meanwhile, Vietnam's API fell slightly, mostly because consumers delayed purchases until 2018 when the Asean Free Trade Agreement will eliminate tariffs on imported autos. Sales growth slowed to single digits after soaring by 29.4 percent in 2016 and 56.7 percent in 2015. However, experts said that the index will recover in the second half of 2017 and thrive in 2018. At the same time, Malaysia saw a decrease in API, but enjoyed a 7.3 percent rise in auto sales from the same period last year. In the Philippines, sales rose 23 percent in the first quarter after a 24.6 percent increase in 2016. However, auto demand in the country may start declining this year, said the survey. In the first quarter, the Motorcycle Purchase Index fell in almost all of the above-mentioned Southeast Asian markets except for Malaysia. Experts predicted that sales for the whole region will decline for the year due to the sluggish market in Indonesia, which accounts for half of all sales in the five Asean countries in 2016. FTCR also said that the middle class in the region will help boost auto sales, while the motorcycle market is increasingly saturated. http://english.vov.vn/economy/asean-auto-demand-predicted-to-grow-in-2017-350048.vov

Car market to see changes with new regulations 23/May/2017 Intellasia| Vietnamnet The domestic market will open more widely to foreign cars as enterprises now will not be required to submit as many documents as they did before, as stipulated in Circular No 20/2011. The Ministry of Industry and Trade (MOIT) has opened the draft decree on conditions for automobile trade, manufacturing, assembling, import and maintenance. The most important provision of the draft is the removal of the requirement on manufacturers' authorisation certificates as stipulated in Circular No 20/2011. The circular states that importers of unused cars with nine seats or less, besides performing current import procedures, must be designated or authorised by official carmakers or dealers as their distributors in Vietnam. The circular had been criticised by car dealers, who said it 'distorted' the Vietnamese car market. Car imports will have to get car import codes from MOIT, and in order to do so, will only need to submit business registration certificates, or investment certificates and documents to prove that they have maintenance units that satisfy requirements. Bui Xuan Truong from Anycar Vietnam said since June 2011, when Circular 20 took effects, his company, like many other car dealers, have had to stop business. However, as the requirement on manufacturers' authorisation certificates is removed, Anycar is considering resuming the business. The representative of another car company said that since March 9, MOIT has not required the certificates on car maintenance units granted by the Ministry of Transport. "We will look for different supply sources so as to bring to diverse Vietnamese products to satisfy Vietnamese requirements at reasonable prices," he said, adding that once authorised importers have to compete with other car dealers, they will have to cut car prices and improve services. An analyst commented that the removal of the requirement on manufacturers' authorisation certificates will stop market control by authorised importers. In general, one manufacturer authorises one car import company. If the company does not have to compete with others, it will control car prices and consumers won't have the opportunity to buy cars at low prices. Some government officials have warned that if the requirement is removed, foreign cars will arrive in Vietnam in large numbers, which will do harm to the domestic market. However, Nguyen Thi Hien from Toyota Vietnam, in charge of distributing used cars, does not think so. "If more enterprises are allowed to import cars for domestic sale, car prices will be more competitive, thus bringing more choices to customers," Hien said. Since November 2016, car trading has been listed as a conditional business field. However, to date, management agencies still have not released any document about the conditions. http://english.vietnamnet.vn/fms/business/178594/car-market-to-see-changes-with-new-regulations.html

Candy market experiences shakeup 23/May/2017 Intellasia| VIR Two major state-owned confectionery firms, Huu Nghi and Hai Ha, recently transferring to private ownership is expected to pave the way to becoming market leaders. In late March, four individual investors spent tens of millions of dollars acquiring major stakes Huu Nghi and Hai Ha. This comes after their parent company, the state-owned Vietnam Tobacco Corporation (Vinataba), registered to exit from the firms. Two individual investors, Vu Hai and Nguyen Thi Duyen, became the new major shareholders of Hai Ha Confectionery JSC, with respective ownership stakes of 23.7 percent and 50.9 percent. Meanwhile two others, Nguyen Van Dung and Luu Thanh Tam, acquired a 20 percent and 10 percent stake in Huu Nghi Food JSC. The participation of individual shareholders could now create favourable conditions for the two firms. Sweeping changes on the horizon In 2014, Kinh Do JSC, a major player in the domestic food scene, was acquired by US-based Mondelez International. The duration of the power transfer process was considered an opportunity for smaller local players such as Huu Nghi, Hai Ha, Bibica, Trang An, or Pham Nguyen to take their chance in the market. As state-owned enterprises, these firms were given an opportunity to shorten the development gap with market number one, Kinh Do. However, none of them were able to, least of all Hai Ha and Huu Nghi. When Vinataba unveiled its plan to fully divest from the two confectionery producers, local giants such as Vingroup, Masan, and Hoa Phat expressed interest. They later withdrew interest however, opening the door for individual private investors to take on the major share. Huu Nghi Food chair, Trinh Trung Hieu recalls that rigid state mechanisms had hindered the company's operation. "If owned by a private investor, Huu Nghi could have capital to invest in brand building to reach a higher market position," Hieu told his employees. With the recent move, Huu Nghi is now completely in the hands of individual investors. A company representative said, "We had to set out year-by-year growth, following the state mechanism. The company paid taxes and contributed to the state budget every year, leaving little money for reinvestment. The space is now wide open. There will surely be changes in our growth strategy in the future, focusing on market expansion." "The participation of private investors is important to make use of new development opportunities after the state capital divestment. We are eager to take on the opportunity and have made preparations for future changes," the source unveiled. Present in the market for more than two decades, Huu Nghi is well known for its assortment of quality confectionery products, including mid-autumn cakes. In terms of revenue, the company lies just behind Kinh Do, with revenue reaching VND1.44 trillion (US$65.7 million) in 2016. After Mondelez International bought Kinh Do, Huu Nghi took the lead in revenue among domestic firms, claiming an 8 percent market share. The company's goal is to solidify its position in the local confectionery market behind Kinh Do, and maintain pole position among local firms. A disadvantage is that Huu Nghi has, until now, mainly served the southern market. A company representative recently admitted that winning the northern market has been very challenging due to a different consumption culture. However, it invested in building a modern confectionery plant in the southern province of Binh Duong several years ago. Huu Nghi is also reported to be making sauces (fish sauce, soy sauce and chilli sauce) now. The company has built a sauce production plant in the northern province of Bac Ninh. Huu Nghi is also accelerating exports to China, which generates VND300 billion (US$13.6 million) in annual revenue for the company. The firm is also looking to expand to other Asean countries, the Republic of Korea, Japan, the US, and India. Meanwhile, Hai Ha enjoys strong brand recognition and boasts a 60-year track record. Having been on the verge of going bankrupt several times in its history, the company is now operating well, particularly in the northern market. Despite having established branch offices in the central and southern regions, the company's key market is the north, and some candy products, such as Jelly and Chewy candies have witnessed fast growth rates and become the company's major income earners. To its rivals, Hai Ha is a confectionary heavyweight. However, the company has lagged behind in recent years because it lacked a strong sales network and the human resources required to work towards market expansion. Market analyses also show that Hai Ha has applied copying tactics in the past, trying to make its own versions of successful products. After time, these products disappeared from the market as it reached saturation however. The company is now working to improve its product lines, focusing on high-grade products to boost its market share. Last year, pie products made up 48.7 percent of production and the candy line consumed the remaining 51.3 percent. The company plans to balance these products out in upcoming years. Hai Ha also produces food supplements, teaming up with several large pharmaceutical firms. Growing pressure from imports Vietnam is now home to about 20 large-scale confectionery businesses, and several hundred small enterprises, with some major importers and distribution companies also joining the market. Established brands such as Mondelez, Kinh Do, Bibica, Hai Ha, Huu Nghi, Trang An, Hanobaco, and Pham Nguyen currently hold a 60-65 percent market share. There are also several foreign businesses operating in the field, such as Kraft, Meiji, Glico, Orion, and Lotte. Since January 1, 2015, imported confectionery from Asean countries enjoyed a zero percent tax rate in the Vietnamese market, under the Asean-India Free Trade Agreement (AIFTA). The products from Thailand, Indonesia, Malaysia, and Singapore have therefore inundated the domestic market. According to the market observers, Vietnam's confectionery market still remains very lucrative to foreign players. Mergers and acquisitions (M&A) are expected to take place more frequently in the future, putting significant pressure on local firms like Hai Ha and Huu Nghi. http://english.vov.vn/economy/candy-market-experiences-shakeup-350006.vov

Industrial real estate a promising sector this year 23/May/2017 Intellasia| VN Economic Times Samsung Display received an investment license earlier this year for its $2.5 billion expansion project in northern Bac Ninh province's Yen Phong Industrial Park (IP), increasing its investment in Vietnam to $6.5 billion. It was also the first billion-dollar project in the country this year. A representative from Samsung told VET that the Yen Phong IP meets all its requirements regarding geographic location and transport infrastructure. "The infrastructure outside of the IP, including electricity, telecommunications, and water supply are synchronous and completed," he added. "These are very important factors in raising productivity." Impressive investment Samsung is a major investor in IPs in Vietnam's north. The South Korean technology giant has now invested a total of $17.363 billion countrywide. Its two biggest projects are Samsung Electronics Vietnam (SEV), on a total area of 110 ha at Yen Phong, and Samsung Electronics Vietnam (SEVT), on 170 ha at the Yen Binh Industrial Zone in Thai Nguyen province. Total export value from SEV and SEVT in 2016 was $36.2 billion, up 10.3 per cent compared with 2015's $32.8 billion and representing more than 20 per cent of Vietnam's total export turnover. South Korea's LG Innotek Company, meanwhile, a subsidiary of the LG Group, has been licensed to build a $550 million factory manufacturing camera modules in the northern port city of Hai Phong. A representative from LG Innotek Vietnam said that the company received an investment certificate from local authorities at the Hai Phong Investment Promotion Conference, with operations to commence by the fourth quarter of 2017. The project will be built on an area of about 10 ha at the Trang Due Industrial Park in the Dinh Vu Cat Hai Economic Zone and will produce around 30 million different types of camera modules for major phone makers such as Apple and LG itself. Additionally, LG Display held a breaking ground ceremony in May for the $1.5 billion LG Display Vietnam Hai Phong project, on an area of more than 40 ha at Trang Due. It will manufacture and process certain types of organic light-emitting diode (OLED) display modules for mobile phones, smart watches, tablets, and TVs, with exports to account for 80 to 90 per cent. Figures from the Department for Economic Zones Management (DEZM) at the Ministry of Planning and Investment (MPI) show that southern Binh Duong and Dong Nai provinces have consolidated their positions as industrial centers in the south, with each attracting approximately $1 billion in the processing and manufacturing sector in the first half of 2016. Previously an IP development laggard, the Mekong Delta's Long An province has received increased interest of late, with 16 operating IPs supplying approximately 3,000 ha of leasable land. In the first half of 2016 it received $350 million in registered foreign direct investment (FDI); the highest among Mekong Delta provinces. South Korea's Kolon Industries Inc., a subsidiary of the Kolon Group, is planning to develop a $1 billion plant manufacturing airbags and industrial fabric for automobile tires in Binh Duong province, to capture a larger share of the domestic and international markets. Its first phase, from 2017 to 2018, will see investment of $220 million and the second, from 2018 to 2026, $600 million. The $1 billion mark will be hit sometime after 2026, in the third phase. Duong Tan Thanh, Head of the Foreign Economic Relations Cooperation Division at the Binh Duong Department of Planning and Investment, said that the South Korean investor has selected the Bau Bang Industrial Park for its project. Kolon Industries has also announced it will lease an area of 42 ha from the Investment and Industrial Development Corporation (Becamex IDC) at the expanded IP. By the end of 2016 there was a total of 325 IPs in Vietnam with an occupied area of 94,900 ha and a total leasable area accounting for 67 per cent, according to DEZM. In particular, 220 IPs have been put into operation and 105 are in the process of paying site clearance compensation. IPs and Economic Zones (EZs) attracted 873 FDI projects last year, while 680 projects increased their capital, for a total of $14.9 billion, or 72 per cent of FDI in the country. IPs and EZs account for over 90 per cent of processing and manufacturing FDI. IPs had attracted 7,013 FDI projects as at the end of 2016. Total registered investment stood $111.4 billion, with disbursed capital representing 61 per cent. IPs also attracted 6,504 domestic investment projects with total registered capital of VND710.6 trillion ($323 million), with disbursed capital at 51 per cent. Short of ideal Industrial real estate is an attractive investment channel and can expect continued foreign investment. There are a number of IPs, however, that have not attracted as many tenants as expected, despite having full infrastructure. According to figures from MPI, half of all industrial land for lease in the country is empty. The Dai Tu IP in Long Bien district, Hanoi, is typical. It was considered a symbol of industrialisation when opened, and was the first IP in Hanoi with 100 per cent foreign capital, of $12 million. Last year, however, the government agreed to allow the Hanoi People's Committee to transform the IP into an urban area. Though boasting full infrastructure, only 40 per cent of space had been leased. Hai Phong city, meanwhile, has proven to be a pioneer in Vietnam's north in developing IPs. The Trang Due IP is the most appealing among investors, with comprehensive infrastructure. It was a destination for major investments in the first half of last year, including LG's $1.5 billion and SL Electronics' $425 million manufacturing projects. Nomura and Nam Cau Kien are also successful IPs in the city, with occupancy rates from 90-100 per cent. In a report released in late 2016, Savills noted that Hanoi and neighbouring provinces are strongly supported by Noi Bai International Airport but there are no nearby seaports, and air transport is not necessary for certain industries. The north could become more competitive, it noted, through increased investment in highway networks connecting to China and to Hai Phong's ports. The representative from Samsung said that selecting suitable locations for factories in Vietnam is a key strategy for all its businesses. "With Samsung, the field of electronics is unique in that it requires plants be located close to each other, to serve needs relating to logistics, research and technological development," he said. In the Mekong Delta there were 78 IPs and export processing zones (EPZs) with a total planned area of 14,787 ha as at the first half of 2016. Occupancy, however, is 3,688.47 ha, with more than 11,099 ha lying empty. Greg Ohan, Business Development director at JLL Vietnam, said that infrastructure is the main factor in attracting investment. "Key IPs now provide more than just land," he said. "They also provide integrated solutions, with a combination of ready-built warehousing and factories, as well as land for commercial, retail and even residential uses. Therefore, a lot of new FDI tends to go to IPs that offer fully-integrated services and a one- stop investment shop, while larger, older IPs only provide land." Hiroshi Horaguchi, general director of Nobel Electronics Vietnam, located at Hoa Lac Hi-Tech Park in Hanoi, said that many businesses would continue to invest in Hoa Lac if there were efforts to promote different channels and attract more investment in infrastructure. Another factor and challenge for investors in Vietnam's industrial real estate sector is rental prices. Troy Griffiths, deputy Managing director of Savills Vietnam, told VET that as the domestic economy improves then demand to service local providers will put price pressure on traditional IPs. Although industrial activities in Hai Phong are impressive, average rents in the city's IPs are relatively high due to a lack of incentives for IP developers, according to a Savills report. "This dampens average occupancy at Hai Phong's IPs," the report noted. On the other hand, the reality is that the space you take now as an operator or a manufacturer is going to change over the course of five to ten years, according to Ohan. "Therefore, if you are securing a 50-year land lease, flexibility for a longer-term solution is key," he said. New possibilities Over 75 per cent of FDI to Vietnam is in the manufacturing sector, so there is a growing demand for integrated IPs around the country. The latest JLL report revealed that Vietnam's manufacturing sector has focused primarily on more labour-intensive segments, such as apparel, shoes, agribusiness, and food processing, which account for 37 per cent of the country's GDP; among the highest in Southeast Asia. Griffiths said that labour costs in China have risen substantially over recent years, pressuring labour- intensive industries such as garments and textiles and even processing and manufacturing. China is facing an outbound wave of foreign companies seeking better production factors, especially regarding labour costs. According to JLL figures, manufacturing wages in Vietnam range from $1 to $1.4 per hour. "As a neighbouring economy with convenient waterway and road connectivity to China, Vietnam stands out as an ideal recipient of this wave," said Griffiths. "Supporting factors include Asean membership, FTAs with large export markets, and labour costs at less than half of those in China." Moreover, Vietnam's edge in its young and skilled workforce is likely to continue to drive manufacturing sector growth of 7-8 per cent annually, according to JLL's report. HyunWoo Bang, vice President of Samsung Vietnam, said that compared with the 24 countries that Samsung has research and development (R&D) centers in, Vietnam's workforce ranks extremely highly in terms of potential and skills. According to the World Economic Forum (WEF), the quality of infrastructure, which includes transport, electricity and telephony, in Southeast Asia is still weak. But the situation is improving in Vietnam. Shimizu Corporation from Japan has committed to development support for the country's first urban railway line, while South Korea's Lotte Engineering and Construction is building the first section of the 14.6-km Da Nang Quang Ngai Expressway. Policies also add to Vietnam's appeal. "Vietnam has one of the lowest corporate income taxes rates in the region and will often negotiate further to attract key industries," Griffiths said. "Lengthy front-end tax holidays as well as economic zone privileges can be found." Ha Chan Ho, Strategic Advisor at Samsung, said that provincial leaders have adopted policies to attract businesses supporting Samsung. "When investing in Bac Ninh, we were concerned that no enterprise could meet our needs in high tech electronics when required," he said. "Now, when we need product packaging or plastic coverings, there are many businesses in the area that can supply them." http://english.vietnamnet.vn/fms/business/178840/industrial-real-estate-a-promising-sector-this-year.html

Saigon housing market slows as insiders warn of crash 23/May/2017 Intellasia| VN Express Sales in the first quarter fell 13 percent from late last year with a 47 percent drop in the apartment sector. The residential property market in HCM City has slowed this year, prompting warnings of cautionary investment to prevent a market crash. Real estate consultancy firm Savills said in a new report that sales in the city's residential sector fell 13 percent in the first quarter from a five-year high in the fourth quarter of last year. Transaction volume in the top tier segment slid 50 percent while the middle-range fell 35 percent. Affordable housing, mostly in outlying areas like districts 6, 8, Tan Phu and Binh Tan bucked the trend by rising 10 percent and accounting for 62 percent of sales. A recent report from real estate group CBRE also painted a quiet market in the country's largest city of 12 million people. Figures from the company showed that during the first three months, transaction volume for apartments in the city dropped 47 percent from the previous quarter and 29 percent from the same period last year. According to CBRE, the housing markets in both HCM City and Hanoi are growing, but without caution, could slow down and turn into buyers' markets with oversupply and falling prices, like in Phnom Penh and Singapore. Duong Thuy Dung, director of CBRE Vietnam, said the market in HCM City has shown signs of a slowdown and the question is how long it will be able to maintain a safe distance from crashing. At the same time, the land segment in the southern city has heated up. A report from local real estate firm DKRA showed that land prices in the city have risen on average 10 percent per month this year. However, the HCM City Real Estate Association earlier this month said the land fever was fake and had been fueled by speculators. It has asked government agencies to intervene to prevent the bubble from bursting. http://e.vnexpress.net/news/business/markets/saigon-housing-market-slows-as-insiders-warn-of-crash- 3587722.html

Vietnam's retail market is promising, but there are pitfalls 23/May/2017 Intellasia| Vietnamnet The Vietnamese retail market, which is promising and lucrative, has its problems, as many retail giants have gained big success in other markets, but not in Vietnam. Family Mart has had losses in Vietnam, Thailand and Indonesia. Reuters quoted Koji Takayanag, president of FamilyMart UNY, which now owns the second largest convenience store chain in Japan, as saying that the chain has decided to stop injecting more money into Family Marts in Vietnam. According to Tri Thuc Tre, Parkson reported another loss of VND20 billion in Vietnam in the first quarter of the year, which means a total loss of VND50 billion in the last nine months of the fiscal year. Parkson Retail Asia has two subsidiaries in Vietnam Parkson Hai Phong Co Ltd and Parkson Vietnam Company Ltd The latter has two subsidiaries Parson Vietnam Service Management Company Ltd and Parkson Hanoi Company Ltd Parkson Hanoi which manages two buildings Parkson Keangnam and Parkson Viet Tower. Both shopping malls have shut down (the former in January 2015 and Viet Tower in mid-December 2016). Also in 2016, Parkson Paragon in HCM City also stopped operation. The Malaysian retailer's fiscal year will end in three months, but analysts don't think the business performance of the year will be satisfactory. Parkson's managers have admitted that it is more and more difficult to do business in Vietnam as the market is getting more crowded. Other retailers have left, including Metro Cash & Carry, Best Carings, Wonderbuy, HomeOne and Sapomart. Meanwhile, market analysis firms, in their latest reports, say that Vietnam is a lucrative market. Phap Luat quoted Pham Thanh Cong from Nielsen Vietnam as saying that it is among the top three markets of investors. David Tan, CEO of Abeo Vietnam, said the Vietnamese retail market in 2016 was valued at $118 billion with the 10 percent growth rate. Of this, revenue from food service reached acrecord high of $41 billion. In fact, though the Vietnamese market is attractive, it has become 'cramped' with the presence of many retailers, both foreign and Vietnamese. According to Cong, there are 20 supermarket brands in Vietnam, while other countries have only five. A report of the Ministry of Industry and Trade shows that Vietnam has more than 700 supermarkets, 132 shopping malls and hundreds of convenience stores. By 2020, Vietnam is expected to have 1,200-1,500 supermarkets and 180 shopping malls, while traditional markets still exist. Though FamilyMart has taken a big loss, it will stay in Vietnam. While some retailers have left, others have arrived. Aeon Mall has announced the construction of a second mall in Hanoi. http://english.vietnamnet.vn/fms/business/178673/vietnam-s-retail-market-is-promising--but-there-are- pitfalls.html

Responsible forest sourcing benefits businesses: report 23/May/2017 Intellasia| VNA Retail companies with responsible forest product sourcing policies are seeing numerous tangible business benefits, demonstrating that sustainability makes business sense, according to a new report from the World Wide Fund for Nature (WWF). Vietnam is the fifth largest timber product exporting country in the world, with revenues of 7 billion USD last year. While the luxury furniture segment in Vietnam requires responsibly sourced products, only 230,000ha of forests in the country are Forest Stewardship Council certified. So Vietnam has to import around 4.5 million cu.m of timber every year, the report said. Unable to utilise domestic timber, the country is now largely dependent on other countries, reducing the potential benefits of production. But with responsible products still a new concept for Vietnamese, there is no market for them. "In the next few months, under the Responsible Asia Forestry and Trade project, WWF will promote sustainable forest products in the domestic market," said Dr Le Thien Duc, Forest Practice Lead of WWF- Vietnam. "We aim to raise awareness among domestic consumers of responsible forest products and influence producing companies and retailers to sell responsible products in Vietnam." WWF-Vietnam, through the Global Forest and Trade Network (GFTN), has been working with businesses to promote processing and trading of responsible timber and supporting forest owners to achieve FSC certification. All members of GFTN have to commit to using certified timber and adopting responsible forest management for five years. "Deforestation and forest degradation are one of the leading environmental challenges today, and we need concerted action from across sectors to tackle this issue," Alistair Monument, WWF's Forest Practice Lead, said. "Research overwhelmingly shows that retail chains are positioned to mobilise transformational impacts because of their leverage over product supply chains and influence on consumer choices. We need retailers to take the lead and understand that sustainability is no longer a niche, but the norm." Companies surveyed for the WWF report cited a number of benefits of responsible sourcing: Over 80 per cent reported positive impacts on risk management and brand reputation, and over 60 per cent saw positive impacts on customer satisfaction and stakeholder engagement. More than 70 per cent said sustainability commitments had a positive impact on employee engagement, indicating potential gains from higher employee satisfaction and retention. At Migros, one of the largest retailers in Switzerland, sales of sustainable products increased by more than 30 per cent between 2012 and 2015, demonstrating clearly that customers expect to see responsibly produced products on the shelves. "Companies with genuinely responsible timber sourcing strategies based on clear commitments and public reporting have an opportunity to stand out from the crowd," Monument said. The WWF study surveyed more than 50 retailers in 20 countries and had in-depth interviews with select retail leaders. The companies shared detailed information about their timber sourcing policies, and the perceived costs and benefits. http://en.vietnamplus.vn/responsible-forest-sourcing-benefits-businesses-report/112096.vnp

Price of VN sand rises due to limited supply 23/May/2017 Intellasia| VNS Prices of sand for construction continue increasing in HCM City, following authorities' orders to strictly monitor sand mining sites for illegal activity. Within one month, sand prices rose three times as there is now a glut of sand on the market, local media have reported. According to Thien Long building materials shop on Le Van Luong Street in District 7, sand is selling for VND695,000 (US$30) per cubic metre, up from VND510,000 on April 30, VND320,000 on April 8, and VND220,000 on March 31. The shop's owner said "There's a serious shortage of sand. I used to have seven suppliers, but now I only have two suppliers. The sand comes from Long An and Tien Giang provinces." According to wholesalers, prices have risen as the construction season has begun and monitoring of illegal sand mining has increased. At another shop on Vo Van Kiet Street in District 6, customers must deposit at least 10 per cent of their order's value. They cannot receive delivery until two days later. "The sand can be harvested illegally upon request, but now it is being done at a limited volume," the shop owner said. Phạm Thi Kim Xuan, general director of De Tam Joint Stock Company, said she was concerned that the construction sector could experience a slowdown if sand prices remained high. Many low-cost housing projects are facing challenges due to the price hike, she added. "The authorities should consider re-issuing licences for sand-mining companies, with careful consideration of annual output and environmental impact," she said. The volume of construction sand in HCM City meets only 30-40 per cent of demand, according to the city's Department of Construction. Recently, the department submitted a draft on building materials planning in HCM City until 2020 to the city People's Committee. The department has proposed solutions to ensure a sufficient supply for construction materials, especially sand. Currently, there is no basis for assessing the ratio of licensed to smuggled sand. Although most contractors can show invoices, illegal sand mining activities still exist and have become more difficult to handle, according to the department. Nguyen Ngoc Thanh, head of the Construction Material Division under the Department of Construction, said that provinces were not allowed to sell or transfer natural resources like sand to other provinces. Thanh recommended that the government quick reorganise the main sources of sand supply. Tien Giang, Vinh Long, Dong Nai and Ben Tre provinces and Can Tho have abundant sand mines, according to Thanh. Large sand mines in these provinces would help balance the supply of sand for other localities. Dr Tran Quang Lien, an expert in building materials, said there was still no natural sand substitute for use in construction. The price would be higher for the sand substitute. "The government should examine the volume of sand reserves in the Mekong Delta and other river basins, and provide information on sand harvesting that can be done without affecting locals' livelihoods and the environment," he said. Le Hoang Chau, chair of the HCM City Real Estate Association, said there was a huge demand for sand for construction in HCM City, including projects in District 2, outlying Can Gio District and low-income housing projects in outlying Cu Chi District and District 9. Increased sand prices will also lead to higher construction costs, he said. http://vietnamnews.vn/economy/376857/price-of-vn-sand-rises-due-to-limited-supply.html

Business Briefs May 23, 2017 23/May/2017 Intellasia | * Hoa Binh Construction & Real Estate Corporation (HBC) inked a cooperation deal with Kuwait's HOT Engineering & Construction Company last week as part of its strategy to expand business to the Middle East market. Under the agreement, HOT will be the sole sponsor of HBC in its operations in Kuwait, focusing on civil construction and infrastructure. Both sides will bid for government and private projects in Kuwait and carry out HOT's projects. * Binh Chanh Construction Investment Company (BCI) has decided to take out a VND750 billion loan from Orient Commercial Bank to invest in the expanded Le Minh Xuan Industrial Zone project. The credit has a tenor of60 months and the interest lending rate equals to the lender's 12-month deposit rate plus 3 percent. * Coma 18 Company (CIG) plans to spend VND24 billion establishing Yen Son Hydropower Company to secure an 18 percent stake in the latter. The investment aims to form a consortium to develop Hung Loi 1 and Hung Loi 2 hydropower plants in Tuyen Quang Province. * Le Quoc Binh, general director of HCM City Infrastructure Investment Company (CII), will be selling 2.2 million CII shares to reduce its holding to 0.19 percent, or over 450,000 shares. * Hanoi Beer, Alcohol and Beverage Corporation (BHN) targets a net profit of VND809 billion this year, inching up 0.5 percent versus 2016. Its revenue is expected to increase 9 percent to VND8.8 trillion in 2017 :The company plans to pay a dividend of 20 percent of the par value for 2017 and 18 percent of the par value for 2016. * Nguyen Van Tuan, a relative of a board member of IE Securities Company (VIX), has registered to sell over 3.58 million VIX shares, or a 5.1 percent stake, from now to June 16. * Thai Nguyen Water Company (TNW) will float 16 million shares on the market for unlisted public firms, or UPCoM, on May 26 at the reference price of VND16,OOO each. TNW was founded in 1992 and began its equitisation process in October 2009. The enterprise specialises in alcohol, beverage and mineral water production, railroad and road construction, electricity system installation, water supply and drainage. At present, TNW is running six water plants with the combined output of over 70,700 cubic meters per day.

KOICA helps shape the future 23/May/2017 Intellasia| VIR Vietnam is the first partner country for the Korea International Cooperation Agency (KOICA) in Asia. VIR talks with Kim Jinoh, the newly-appointed country director of KOICA, on his mission and the agency's efforts toward supporting Vietnam's education, healthcare, and green growth sectors. As the newly-appointed country director of KOICA in Vietnam, what impressed you most about Korean ODA-funded projects in Vietnam? Official development assistance (ODA) for Vietnam includes both concessional loans and grants. As a Korean government-funded agency, KOICA is dedicated to providing all kinds of aid programmes. Within the framework of this talk, I will focus on KOICA's grant projects in Vietnam. Vietnam is currently ranked as the first partner country of KOICA in Asia. In 2016, the ODA grant volume for Vietnam consumed 15.6 per cent and 5.87 per cent of KOICA's total budget for the region and the world respectively. It is also likely that this trend will be maintained in the coming years. That explains why KOICA Vietnam receives the highest number of ODA grant projects, and has become the biggest overseas KOICA office in terms of employee numbers. What impressed me regarding Korean ODA grant projects in Vietnam is the wide coverage of the projects throughout the country, and the effectiveness of project formulation and implementation. According to both the Vietnamese and Korean governments' periodical evaluation of KOICA's grant projects, not only do they meet the actual developmental needs of Vietnam mentioned in the Socio- Economic Development Plan (SEDP) but they also fit with sectors where Korea shows strength. That has created advantages for project implementation in the sense that KOICA grants always satisfy grant evaluation criteria such as effectiveness, efficiency, local ownership, sustainability, and integration of cross-cutting issues. Over many years, KOICA has been focusing on supporting Vietnam's education and healthcare sectors. What are some of KOICA's most significant projects here? With regards to education, KOICA's projects in Vietnam are centred on technical and vocational education and training (TVET), which is essential for Vietnam as it experiences the transformation from an agriculture-based economy to an industrialised economy. The Vietnamese economy is seeking more workers who are well-educated and have advanced technical skills in order to catch up with the requirements of foreign investments and ODA support. In just the past five years, significant projects have included the establishment of the Korea-Vietnam College of Technology in Bac Giang province (2010-2013); improvements to the Central Highlands Vocational College for Ethnic Youths in Dak Lak province (2013-2016); and improvements to the Vietnam-Korea Industrial Technology Vocational College in Nghe An province (2014-2016). Regarding healthcare, KOICA's contribution towards enhancing the quality of basic healthcare services is remarkable. As part of the effort, KOICA has initiated Q-Health projects that support previously completed health sector projects in Thua Thien Hue province; Danang (2015-2018); and Quang Nam (2013-2017). KOICA also developed a national volunteer network which is very active in the health and education sectors. Some noteworthy activities include organising Korean language classes in cultural centres and providing nursing and functional recovery services in hospitals and medical clinics. KOICA is a significant partner for Vietnam with regard to green growth efforts and environmental protection. What are the most remarkable KOICA projects in Vietnam to date? Vietnam considers green growth as an inevitable trend and a key force for development in the modern age, with much attention paid to lowering carbon emissions, green production, and promoting environmentally-friendly lifestyles. Given Korea's experience and expertise in this area, a $2 million project for supporting the implementation of a green growth strategy in Vietnam was initiated in 2013. The project has seen positive results in establishing policy framework and the Inter-ministerial Coordinating Board for the implementation of the Vietnam National Green Growth Strategy (VGGS); making contributions to improving the provincial development strategies and promoting human resources in the fields of development, implementation, and evaluation of policy-mixes within the context of the VGGS. Following this project, KOICA continued with the $6.5 million Green City Planning project (2015-2017), another effort to pursue green growth development goals. As a technical assistance project, it aided local government to integrate green growth concerns with urban planning by developing comprehensive planning software that developed and evaluated planning scenarios. The ongoing project has greatly improved the capacity of urban planning staff to date. What are your plans to make KOICA Vietnam a greater success during your term in office? I came to Vietnam in 2008 on a business trip for the Danang IT University project. Returning after nine years, I was amazed to see the incredible changes in Vietnam. I want to promote these significant movements further by improving Korea's development effectiveness in the country. In my role as the country director of KOICA Vietnam, I plan to align KOICA's grant projects more closely with Vietnam's SEDP. We will achieve this through policy discussions and work group meetings with the Vietnamese government during project development stages in order to increase the consistency of policies and projects. In addition, KOICA will be more active in periodical policy dialogue meetings with the Vietnamese government, and share information and discuss cooperation plans with other donors and development platforms, such as Vietnam Development Partnership Forum. The aim of this will be to seek out possible links and synergies among all the development projects in Vietnam. 2017 marks the 25th anniversary of Vietnam South Korea relations, and it is a really great start for me to promise fruitful achievements. I do hope the Vietnam South Korea partnership deepens well into the future. http://www.vir.com.vn/koica-helps-shape-the-future.html

M-commerce key to business success 23/May/2017 Intellasia| VNS Businesses who hope for success need to stay abreast of the latest m-commerce trends in order to retain their competitive edge in the business environment, Nguyen Ngoc Dung, vice president of Vietnam E- commerce Association, said at the Vietnam Mobile Day 2017 event. The event was organised by TopDev with key support from the Vietnam E-commerce Association (VECOM) in HCM City on May 20, with the participation of Facebook, Google and Microsoft. Three key topics, namely Mobile Commerce, Mobile Business and Mobile Technology, and 120 subtopics were discussed at this year's event named "The Revolution of Mobile Industry". E-commerce and m-commerce are significant trends evident in the Vietnamese market, across multiple business sectors and industries. As a useful retail channel in a digital society, m-commerce is quickly gaining in both reputation and revenue. According to the Vietnam Digital Landscape 2017 report by We Are Social, as of January 2017, there were 47.19 million active mobile internet users across the country, accounting for half of the total population. Amongst nearly 95 million Vietnamese people, 39 per cent claimed to have purchased a product or service online and typically 29 per cent claimed to have made at least one online purchase via a mobile device. It is also worth mentioning the total value of the national e-commerce market in Vietnam in 2016 amounted to $1.8 billion. According to the Vietnam Business Index 2017, 45 per cent of businesses claim to have a website but only 19 per cent of these websites are mobile friendly, compared to 26 per cent in 2015. "Choosing a suitable domain name is the very first step towards building a reliable and successful online presence. It is not simply an Internet address. It is something that goes in line with all business activities and brand development something that makes the reputation and credibility of the brand. With friendliness to mobile devices, businesses can ensure they reach a larger audience and enhance their competitiveness in the game," said Dung. "A strong online presence requires a successful website with the right domain name. Especially for businesses with global vision, ".com" has always been trusted thanks to its availability, credibility and high stability for more than 18 years," Huynh Ngoc Duy, CEO of Mat Bao added. Vietnam Mobile Day has been held annually since 2011, aiming to emphasize the importance and benefits of m-commerce and opportunities businesses can leverage through m-commerce. After seven years, the event has been recognised as the largest and most influential domestic mobile event, an extraordinary "tech-feast" for Vietnamese tech-lovers as well as a special occasion for world- leading tech companies to attend, learn and find new opportunities with Vietnam's mobile market. http://bizhub.vn/tech/m-commerce-key-to-business-success_286305.html

Ben Tre's coconut export turnover reaches $ 150mln 23/May/2017 Intellasia| SGGP News The Mekong Delta province of Ben Tre People's Committee yesterday organised the conference themed "Solutions to improve the efficiency of production & competitiveness for Ben Tre's coconut industry". Ben Tre's department of agriculture& rural development said there are 2,000 coconut-processing units and 10 coconut enterprises in the province. The provincial coconut export turnover has reached $ 150million accounting for 21 percent compared total export value. Vo Thanh Hao, Secretary of Ben Tre Party Committee said the provincial's enterprises need change production process, the industry can improve its potential in sustainable development. As if, the province should enhance the connection between local farmers and enterprises in planting, harvesting, processing and exporting. Besides, the enterprises should apply science technology toward clean products. http://sggpnews.org.vn/business/economy/ben-tres-coconut-export-turnover-reaches-us-150mln- 66914.html

Auto imports drop in April 23/May/2017 Intellasia| VNA The quantity and value of imported cars fell by 38 percent and 6 percent respectively in April from March. In the month, Vietnam imported 1,065 cars from China for 41 million USD, up 143 percent in quantity and 153 percent in value. According to the Vietnam Automobile Manufacturers' Association, April's auto sales stood at 21,942 units, down 18 percent from March and 15 percent from last year. The downward trend also hit domestically assembled cars and full car imports, which posted decreases of 10 and 35 percent compared to March. Experts said the reduction was due to customers waiting for auto import tariffs to hit zero percent in early 2018, which will significantly drive down car prices. Fourth-month auto imports and sales, however, grew 15 and 1 percent from the same period last year, respectively. http://en.vietnamplus.vn/auto-imports-drop-in-Apr/112071.vnp euro Auto introduced new BMW without customs clearance 23/May/2017 Intellasia| VIR Although euro Auto's imports do not receive customs clearing since November 2016, recently, the official BMW distributor in Vietnam has introduced a new model and customers are still receiving cars from the company. In the first week of May 2017, euro Auto introduced the BMW 320i sport edition to the list of 3 Series (F30) cars for sale in Vietnam. BMW 3 Series is one of the most successful car brands of the German automaker, selling 6,400 of them in the Vietnamese market. The BMW 320i sport edition will be equipped with more modern and sporty features. No official price has been disclosed yet, but website giaxe.bmw.vn shows that the 320i and 330i are sold at the price of VND1.439 billion ($62,565) and VND1.768 billion, respectively. In addition, Vietnamese customers can choose the special 320i-100 Year Edition at the price of VND1.658 billion. Previously, on February 28, 2017, euro Auto handed over two BMW 520i cars to Movenpick Hanoi. At the end of March 2017, InterContinetal Nha Trang also added two BMW 5 Series to its collection of luxury cars for its luxury shuttle service. The general Department of Vietnam Customs decided to stop clearing euro Auto's imported BMW units from December 1, 2016. According to a source of VIR, euro Auto has been found using fake papers, including contracts, invoices, packing lists, and certificates of quality (C/Q), to import BMW car units to Vietnam. euro Auto also sells and purchases VAT invoices from other companies to evade domestic tax. Besides, while investigating euro Auto's declaration of special consumption tax for domestic consumption in July, August, and September 2016, authorised agencies found that 93 of the 340 cars sold to Performance Motors Vietnam carried the wrong price tag. Accordingly, the cars estimated price contained 7 per cent less consumption tax than the average selling price. This is a violation of Circular No. 130/2016/TT-BTC issued on August 12, 2016 by the Ministry of Finance (MoF). This pricing mistake lead to a special consumption tax fraud of over VND6 billion ($260,870) in damages. On December 20, 2016, the Anti-Smuggling and Investigation Department (General Department of Vietnam Customs) issued Decision No.18/QD-DTCBL to prosecute euro Auto for smuggling. Case File No.03/QD-DTCBL was transferred to the Economic and Corruption Crimes' Police Investigation Department (C46), which belongs to the Ministry of Public Security, for further investigation. On January 11 and 12, 2017, a representative of BMW AG from Germany arrived to Vietnam to join in the investigation and then confirmed with MoF that some of the papers that euro Auto used for customs procedure had not been provided by BMW AG. C46 decided to prosecute three people, and detained two of them, including Nguyen Dang Thao, general director of euro Auto. Since December 1, last year, 470 BMW, 78 MINI, and 56 BMW Motorrad have been awaiting customs clearance. Explaining how the company managed to still introduce a new model and hand over cars to customers, a source of VIR said that the BMW cars were exported from European ports, travelled through Malaysia, and were finally transported to Vietnam. Thus, the question of how Malaysian Sime Darby Group, which holds an 82 per cent stake in euro Auto, is involved in this case raises eyebrows. Recently, BMW AG has sent a senior delegation to Vietnam to solve this problem. In 2013, euro Auto was charged VND80 billion ($3.51 million) in tax arrears by the Department of Customs of HCM City because of discrepancies between the contract it submitted for use in customs procedures and the contract it actually used in its actual transactions through HSBC. However, euro Auto appealed to the HCM City People's Court, which in turn found insufficient grounds for the charge and nullified the decision. The Department of Customs of HCM City said that the post-clearance checks of euro Auto's imported cars between January 1, 2010 and June 29, 2012 showed many fees that should have been included in their import value and should be subject to tax and that euro Auto "forgot" to declare these fees. In addition, euro Auto was accused of not declaring the insurance fees for goods transportation. This case involved Asia Auto Finance Ltd of Hong Kong (AAF), an intermediary between euro Auto and BMW. According to the consultancy and services agreement between euro Auto and AAF, the former pays AAF a monthly $25,000 and every quarter, euro Auto pays a sum equivalent to total revenue of last quarter multiplied with 3 per cent of this total revenue. From January 1, 2010 to June 29, 2012, euro Auto paid AAF $750,000 in monthly fees and $1.395 million in quarterly fees. Recently, authorised agencies have submitted a letter to the Hong Kong Customs and Excise Department asking to verify the existence of Asia Auto Finance Limited Company from 2010 up till now, and its list of shareholders. However, Hong Kong Customs has "not found any import-export figures of AAF, as well as any relevant information on this company." http://www.vir.com.vn/euro-auto-introduced-new-bmw-without-customs-clearance.html

HCM City to hike management fees at wholesale markets 23/May/2017 Intellasia| The Saigon Times The Department of Industry and Trade of HCM City is seeking approval from the city government to revise up management fees at three major wholesale markets, namely Binh Dien, Hoc Mon and Thu Duc, from 2017. The average fee would be VND70,000 (about $3.1) per square metre per month, about three times higher than the current levels. According to a report of the department, there are currently 265 traders in 345 trading booths in Hoc Mon wholesale market, including 257 vegetable trading booths and 89 pork trading booths. The management board of the market said most pork traders agreed with the adjustment of the management fee from VND27,500 to VND66,000 per square metre per month. Vegetable and fruit traders also agreed with the increase of the fee from VND22,000 to VND66,000. Meanwhile, the management board of Thu Duc wholesale market said most traders have agreed with the new fee of VND70,000 per square metre per month (currently VND20,000 per square metre per month). This market has about 949 traders doing business with 1,414 trading booths, including 544 booths of vegetables, 748 booths of fruits, 92 booths of fresh flowers and 30 kiosks serving foods and selling medicines. Some 68 percent of traders in Binh Dien wholesale market agreed with the management fees proposed by the management board of the market which range from VND50,000 to VND80,000 per square metre per month. Binh Dien Market has about 1,439 traders with 1,671 stands. Having collected the opinions of the vendors in these three major wholesale markets, the city's Department of Industry and Trade suggested the municipal government accept the new management fee in 2017 at an average of VND70,000 per square metre per month. The department has also requested the management boards of the three wholesale markets to review and adjust the fees for other services such as vehicle parking. The management boards of major wholesale markets in HCM City earlier complained that low service fees have caused losses for market operators. http://english.thesaigontimes.vn/54057/HCM City-to-hike-managem

Quang Ninh builds high-quality shrimp breeding complex 23/May/2017 Intellasia| VNA The northern province of Quang Ninh has began building a high-quality shrimp breeding and aquatic processing complex in Dam Ha district. The project, worth 500 billion VND (22.03 million USD), was funded by the Vietnam-Australia Corp, a strategic partner of Quang Ninh. The complex covers some 187 hectares in Tan Lap and Dam Ha communes and includes a shrimp breeding area, a food manufacturing plant, a hi-tech intensive shrimp farming greenhouse, and a shrimp processing plant for export. It is expected to produce about 5,800-17,400 tonnes of commercial shrimp per year. The project is divided into two phases, focusing on building technical infrastructure, commercial shrimp breeding areas and waste treatment plants, among others. The Vietnam-Australia Corp aims to use advanced technologies to increase added value and ensure sustainable development for the seafood industry. The project is part of a research cooperation deal between the group and Quang Ninh authorities. It aims to turn Quang Ninh into a shrimp development centre of the north. Chair of the provincial People's Committee Nguyen Duc Long said the project also aims to provide safe and hygienic shrimp varieties for local farmers, as well as northern localities and Chinese border provinces. http://en.vietnamplus.vn/quang-ninh-builds-highquality-shrimp-breeding-complex/112066.vnp

Kien Giang branches out marine economy 23/May/2017 Intellasia| VNA The marine economy has potential for the Mekong Delta province of Kien Giang financially and can contribute to protecting national sea and island sovereignty. According to Chair of the provincial People's Committee Pham Vu Hong, the province has integrated sea economy development with ensuring defence. In addition to fulfilling its potential, the province has cooperated with regional countries to improve seafood management, protection and exploitation. Developing hi-tech fishing teams and constructing sea ports and fish markets in the locality are key goals, he said. To enhance local fish farming efficiency, the province aims to set up strong seafood enterprises, plan marine economic activities and zone off areas for local processing businesses. With 200 kilometres of coast ideal for developing the fisheries sector, the province has seen annual growth of 5.24 percent in seafood exploitation. It produces 200,000 tonnes of seafood in an area of 2,200 hectares and earns $147 million in export revenue every year. http://english.vov.vn/economy/kien-giang-branches-out-marine-economy-350022.vov

Agriculture investors continue to shy away from Hau Giang 23/May/2017 Intellasia| VOV Authorities of the Mekong Delta province of Hau Giang continue to report difficulties in finding investors willing to invest in hi-tech agriculture in the region, reports the Vietnam News Agency. On May 22, provincial leaders met with representatives from a company from the Republic of Korea who is contemplating investing in a 50-hectare pilot banana and pineapple plantation. This is just the latest in a string of meetings with potential investors that has failed to pan out as the province is finding out that investment in hi-tech agriculture is a hard sell to foreigners who prefer to plough their dollars into manufacturing. The Province is attempting to transition away from rice cultivation to other agriculture goods and has been trying to attract foreign investment in hi-tech agriculture to this end, said one official. The province boasts over 130,000ha of arable hectarage but has been hit hard by saline intrusion, which has destroyed the rice farming industry, and is seeking alternative crops and investment to replace rice as the main crop. http://english.vov.vn/investment/agriculture-investors-continue-to-shy-away-from-hau-giang-350033.vov

Phase one of Vinalines Hau Giang port project completed 23/May/2017 Intellasia| The Saigon Times Hau Giang Maritime Service Company (Vinalines Hau Giang) last week inaugurated phase one of Hau Giang Vinalines general port project capable of handling ships of 20,000 dwt after more than 10 months of construction. Speaking at the opening ceremony, Vo Thanh Phong, general director of Vinalines Hau Giang, said the port has a berth of 150 meters, and together with supporting facilities such as warehouses, container yards and other technical infrastructure, phase one allows for maximum throughput of one million tonnes of cargo a year. According to Vinalines Hau Giang, phase one of the project is developed at a cost of nearly VND229 billion (about $10.1 million). The project was designed by the Construction Consultation Joint Stock Company for Maritime Building (CMB), supervised by Thinh Long Corporation and constructed by a consortium comprising An Gia Phat Construction Joint Stock Company and Southern Construction Joint Stock Company. Vinalines Hau Giang general port project covers an area of 87 hectares and requires total investment capital of nearly VND399 billion, including warehouses, workshops, roads and technical infrastructure. With the launch of phase one as well as the whole project in the future, Phong expects Vinalines Hau Giang to better facilitate cargo transport in Hau Giang Province, Can Tho City and the Mekong Delta as a whole. http://english.thesaigontimes.vn/54061/-Phase-one-of-Vinalines-Hau-Giang-port-project-completed.html

USD190m solar power plant to be built in Thanh Hoa 23/May/2017 Intellasia| DTI News Thanh Hoa Province have agreed a USD190m solar power project at a local industrial zone. Thanh Hoa Chair Nguyen Dinh Xung has signed an agreement to build a solar power plant at Nghi Son Industrial Zone, Tinh Gia District. The German BS Heidelberg Solar GmbH Company will be the project's investor. The project will cover 170 hectares and have 100 percent FDI with the expected capacity to produce 190 million kWh a year. Construction will start in the third quarter and is expected to completed in the third quarter of 2018. The BS Heidelberg Solar GmbH Company will directly manage and operate the plant. They are also asked to make a deposit to ensure capital flows and follow procedures about land use and environmental protection. Xung also gave the approval to another USD35.6m solar power project that will be built on a 650,000- square-metre land in Yen Thai Commune, Yen Dinh District. The construction of the 30MW plant will start this third quarter and be completed in 2019. http://dtinews.vn/en/news/018/50993/usd190m-solar-power-plant-to-be-built-in-thanh-hoa.html

France's Decathlon plans supermarket chain in Vietnam 23/May/2017 Intellasia| The Saigon Times French firm Decathlon plans to set up 50 supermarkets across Vietnam in the next two or three years, with the first to go up in HCM City, said Lionel Adenot of Decathlon. At a meeting with HCM City vice chairwoman Nguyen Thi Thu last week, Adenot said Decathlon looks to enter the retail market after over 21 years of manufacturing sports goods in Vietnam. The planned supermarket in HCM City would go up at Rach Chiec National Sports Complex in District 2, he said. Covering 5,000 square meters, the three-floor store would house a retail store and a free sport ground for shoppers. The first floor would be for vehicle parking, the second for retail and the third for the firm's staff. The company is waiting for approval from Vietnamese authorities. Decathlon Vietnam is the second largest manufacturer of Decathlon worldwide with 200 million units a year, creating jobs for 75,000 employees and 300 staff, Adenot noted. Vice chairwoman Thu asked Decathlon to wait until the Rach Chiec National Sports Complex is approved for investment. She told the Departments of Culture, Sports and Tourism, and Planning and Investment and District 2 where the Rach Chiec Sports Complex will be developed to help Decathlon with its investment plan. Decathlon, established in 1976, currently has 1,000 stores around the world. Its 2016 revenue was over 10 billion euros. http://english.thesaigontimes.vn/54056/-France percentE2 percent80 percent99s-Decathlon-plans- supermarket-chain-in-Vietnam.html

FPT's tech and telecom account for most profit 23/May/2017 Intellasia| VNS FPT Corporation recorded a consolidated revenue of nearly VND12.98 trillion (US$569.3 million) in the first four months of this year, a year-on-year increase of 13 per cent that equals 104 per cent of its year-to- date target. Profit before tax reached VND904 billion, up 14 per cent over the same period last year, while the profit after tax rose 18 per cent to VND759 billion. Profit after tax attributable to parent company's shareholders and earnings per share (EPS) both achieved growth rate of 15 per cent year-on-year, to VND581 billion and VND1.26 trillion, respectively. Profit growth of FPT remained driven by the two core businesses including technology and telecom sectors, which accounted for 75 per cent of the consolidated profit before tax of the group. Specifically, profit before tax of the technology and telecom sectors increased by 48 per cent and 20 per cent, respectively. The distribution and retail sector has fulfilled 104 per cent of targets for both revenue and profit before tax for the first four months. Meanwhile, the retail segment continued to perform outstandingly in the first four months, with its revenue up 31 per cent and pre-tax profit up 45 per cent. Overseas markets grew 16 per cent to hit VND1.96 trillion in revenue and 15 per cent to VND284 billion of profit before tax. http://bizhub.vn/tech/fpts-tech-and-telecom-account-for-most-profit_286295.html

Vinatex forecasts 10pct textile export growth 23/May/2017 Intellasia| The Saigon Times The Vietnam National Textile and Garment Group (Vinatex) has projected this year's textile and garment exports would grow 10 percent, or by $3 billion, against 2016. According to Vinatex, the industry's export sales amounted to $6.75 billion in the first quarter of 2017, up 12.4 percent over the same period. Shipments to Russia, a new market for the industry, surged 115 percent in the period while those to Singapore and Cambodia shot up 38 percent and 36 percent respectively. Revenues from other major markets such as the US, the EU, Thailand, Indonesia, Laos, Myanmar and South Korea also rose. Exports of traditional items such as T-shirts and trousers continued positive growth. Some new products with high export growth were swimwear, rainwear and towels. Vinatex general director Le Tien Truong said Vietnamese textile and garment products are facing growing competition with those from other countries because in addition to quality, price and delivery time, domestic exporters have to meet strict environmental protection requirements. Therefore, local manufacturers have had to replace old equipment with new one to meet four criteria productivity, quality, energy saving and environmental protection. Vietnam, one of the five largest textile exporters in the world, fetched $28.3 billion from textile exports in 2016 with a localisation rate of over 50 percent. In 2017, the industry has set an export turnover target of over $30 billion. http://english.thesaigontimes.vn/54060/-Vinatex-forecasts-10-textile-export-growth.html

Cau Tre export goods processing renamed after Korean acquisition 23/May/2017 Intellasia| VNS The annual shareholders meeting of Cau Tre Export Goods Processing JSC on Sunday approved changing the company's name to CJ Cau Tre Food Joint Stock Company. The meeting also approved adding to its scope of business a number of industries such as vegetables and fruit processing and preservation, producing cakes and ready-to-eat foods, and food wholesaling. It doubled the proposed investment in a food processing complex at the Hiep Phuoc Industrial Park in HCM City's Nha Be District to VND1.2 trillion (US$52.8 million). CJ CheilJedang Corporation, a subsidiary of South Korean conglomerate CJ Group, earlier became the largest shareholder in Cau Tre, after gradually buying 71.6 per cent of its stakes. It became a strategic shareholder last December by buying up 47 per cent of the company's shares from investment funds. At that time the State-owned Saigon Trading Corporation (Satra) held a 45 per cent stake. By March CJ increased its ownership to 51.6 per cent. In April Satra auction 20 per cent of Cau Tre shares, which CJ bought up. After this, Satra only holds 25 per cent of the capital, with the remaining 3 per cent being held by other individuals. Cầu Tre has a chartered capital of VND117 billion. The company has a long history since 1982, specialising in frozen seafood and meat and other agricultural products, which were distributed locally and exported to many difficult markets like Japan, South Korea, the Netherlands, and the US. Last April CJ CheilJedang acquired a 64.9 per cent stake in Minh Dat Food, thought to be the biggest Vietnamese private meatball company. A CJ Vietnam spokesperson said food is one of the company's core business sectors, and the deals show that this its long-term plan in Vietnam. http://bizhub.vn/news/cau-tre-export-goods-processing-renamed-after-korean-acquisition_286306.html

Sun Group to boost south Phu Quoc tourism 23/May/2017 Intellasia| VNS If the north of Phu Quoc Island is vibrant, with a line-up of projects nearing completion, the southern part of the island is no less bustling. The area is emerging as a world-class tourism destination, especially with Sun Group all set to announce a new resort project on the beautiful Kem Beach. According to property services firm CBRE, the southern part of Phu Quoc Island with its beautiful white beaches has large potential for a boom in luxury tourism, and resort projects here are expected to attract a large number of both local and foreign tourists. With the improved infrastructure system, a $12 million water supply project, the Phu Quoc International Passenger Port and a 91km road across the island, coupled with easy transport connectivity to the Phu Quoc International Airport, the southern part of the island has witnessed a breakthrough in investment, turning it into a world-class tourism, resort and recreation destination. Tourism on the southern part of the island is being fuelled by Sun Group's $1 billion investment in several projects, notably the five-star JW Marriott Phu Quoc Emerald Bay, the Hon Thom resort complex and the longest across-ocean cable car line that connects An Thoi Commune and Hon Thom. A luxury resort complex is developing rapidly on the southern part of the island and Sun Group, in particular, is forging ahead. The developer is getting set to introduce a new "masterpiece" at Kem Beach Sun Premier Village Kem Beach Resort. "The project will set a new class in the segment of super luxury resort property," Sun Group said. Under the backdrop of the romantic setting of Kem Beach, the world's leading architects will create the lifestyle project offering exclusive luxury resort experiences. Sun Group expects that the southern part of Phu Quoc Island will welcome millions of tourists each year. http://bizhub.vn/property/sun-group-to-boost-south-phu-quoc-tourism_286274.html

Viglacera begins apartments for workers 23/May/2017 Intellasia| VNS State-owned glass and construction ceramic corporation Viglacera started constructing a complex of apartment blocks for workers at Dong Van 4 industrial park in Ha Nam Province on Friday. The project is spread over 16.69 hectares (ha) and can accommodate over 9,100 people. It includes social housing units for sale or rent, a public service centre, a kindergarten, a clinic and green space. It is expected to address the housing problems of workers and experts at the park and help them cut travel cost. Viglacera is the third biggest industrial park builder in Vietnam, having ownership of some 10 industrial parks covering an area of 3,580ha. According to deputy minister of Construction Bui Phạm Khanh, around one million workers in 320 industrial parks nationwide have demanded accommodation. To serve the demand, 167 projects, with combined capacity of about 126,800 apartments, have been executed. Of the total projects, 97 have become operational, offering 38,800 apartments. http://vietnamnews.vn/economy/376820/viglacera-begins-apartments-for- workers.html#s7MpPIqdHZKDOQwG.97

Vissan buys more pigs to support farmers 23/May/2017 Intellasia| VNS To reduce oversupply and help farmers, Vissan Co. Ltd will buy and slaughter an additional 200 to 300 pigs a day, raising the company's additional purchases over the normal number to 500-600 pigs a day. Speaking at a meeting with the media in HCM City last week, Nguyen Ngoc An, the company's general director, said the move had raised the total number of pigs slaughtered at its facilities to 1,600-1,800 a day. The company will use cold warehouses of APT Logistics and SATRA to freeze the additional pork, he said. Nguyen Phuc Khoa, Vissan's chair, said his company had stopped pork imports since February and had increased local purchases. The pigs meet VietGap standards, all are bred under the Livestock Competitiveness and Food Safety Project (Lifsap), and are from farms participating in a HCM City programme to trace their origin. To stimulate demand, Vissan will continue to offer 10-15 per cent discounts on certain pork products at Saigon Co.op's outlets, Vinmart, Vinmart+ and other supermarkets, that sell its pork products. In addition, it will cut prices by 5-10 per cent on some processed food. The price of live pigs has dropped sharply because of oversupply, causing big losses for farmers. http://vietnamnews.vn/economy/376759/vissan-buys-more-pigs-to-support- farmers.html#ljSWctzcTCaiMg4o.97

Local brands offer affordable, high-end children's clothing 23/May/2017 Intellasia| VNS Vietnamese brand names and clothing shops in HCM City are offering new collections for the style- conscious young consumer this summer. Designers for Kim, a brand name owned by designer Phuc Trần, combine simplicity and practicality at their shops in District 3. They offer a new collection titled My Summer for boys and girls aged 10 to 14, using pastel, neon, black and white on cotton, linen and denim. With more than 40 designs this season, Kim's items sell from VND200,000 (US$9) to 500,000 ($22). Limited edition items for children under 12 years old are from Kelly Bui Kids, owned by female designer Bui Minh Trang. Sold in shops in Hanoi and HCM City, they provide a taste of animated Hollywood film characters. Featured clothes are on quality materials like lace, silk and taffeta, printed with Ninja turtles. The designs go with accessories such as belts, sunglasses, gloves and fishnet socks. "Clothes from Kelly Bui are high-end and pricey, over VND1 million ($45) each, but customers with deep pockets are satisfied," said regular customer Trần Anh Tuyet, mother of son and two daughters. "I like clothes by Vietnamese fashion designers like Kelly Bui and Phuc Trần because they give my children a trendy outlook suited to their age," she added. Other fashion shops have also upgraded their goods. Phương Nguyen Silk and Rabity offer ready-to-wear collections for boys and girls. While Phuong Nguyen Silk's popular clothing line starts at VND200,000 ($9), Rabity's customers should be prepared to pay VND300-1.2 million ($25-$100) per item. In their collection called Summer Garden, Rabity uses silk and satin to highlight the innocence of children who look beautiful in white and cream. Phuong Nguyen Silk uses cotton and khaki and embroidery in hot colours, such as pearl blue and lemon green, to launch a trend of simple, high-end styles. A full range of accessories of handbags, scarves, swimwear and jewellery made by local craftspeople are also offered. According to a representative of Kelly Bui, to satisfy the needs of the market in summer, domestic brandnames are also spending more to grab the attention of children and their parents. They have also worked to ensure their services and promotions are the best for customers. "We plan to launch an online service in the near future," she said. Xuan Lan, a member of the second Vietnam Junior Fashion Week 2017 (VJFW)'s organising board, said: "Vietnamese fashion houses, companies and designers have worked to develop their business in children's clothing in recent years." "Our two-day VJFW 2017 in March featured 90 amateur fashion models aged from four to 13, who wore more than 100 designs offered by foreign and domestic brandnames in HCM City," she said. Several thousand parents and children shared their comments on the event's websites and online forums. "We have worked with dozens of foreign and domestic fashion companies to organise the VJFW each year," Land said. Lan owns CA3, an institute of modelling and acting, which offers training courses for fashion modelling, catwalk and photography. "We will seek new talents for the catwalk through the VJFW. We will help them become more professional in their work in the future," she said. http://vietnamnews.vn/life-style/376737/local-brands-offer-affordable-high-end-childrens- clothing.html#VpYKBaX1F33gp0Mq.97

Foreign cafes' struggle in Vietnam 23/May/2017 Intellasia| VNS Australian-owned Gloria Jean's Coffees recently decided to close its last store in Vietnam, ending a 10- year stint in HCM City and Hanoi due to slow expansion, high rents and an unsuitable business model. Gloria Jean's Coffees arrived in the country in 2006 after a local firm signed a franchise contract with it expecting the business would develop well like it did in Thailand and Malaysia. This was based on the fact that the chain served Arabica coffee, a relative novelty in Vietnam where the robusta bean rules. Vietnam, the world's number two coffee producer after Brazil, is known to have one of the fastest growing coffee retail markets, along with Indonesia, Turkey and India. However, the Australian coffeehouse chain was only able to open six outlets in Ho Chi Minh and one in Hanoi in the first six years. Nguyen Phi Van, the first franchisee of Gloria Jean's Coffee in Vietnam, told Vnexpress that the demise was due to the adoption of a business model that had been developed in Australia for the local and regional markets. Later on, even after Gloria Jean's Coffees International allowed its franchise in Vietnam to make some changes to its products to adapt to local people's tastes, the going remained really tough due to many reasons including fiercer competition from both foreign and domestic rivals like Starbucks, The Coffee House, Phuc Long, Urban Station, and Trung Nguyen. Gloria Jean's Coffees is not the only foreign cafe whose business has failed in Vietnam. Last year New York Dessert Cafe (NYDC) said goodbye to its customers in Vietnam via its Facebook page, promising to "return someday." Brought to Vietnam in 2009 by a Singapore Group, NYDC used to be one of the most popular foreign coffee chains in HCM City. It had expected to open 20 outlets in Vietnam. What when wrong for the foreign cafes? Many coffee industry insiders said in the food and drink sector, the coffee area in particular, it is not easy for foreign players in Vietnam even if when they have famous brands. Some foreign coffee chains serve normal customers in their native countries but only affluent ones in Vietnam. Because of this they often choose prime locations in major cities for their shops, meaning very high rents and skyrocketing overheads. Not surprisingly, their prices are often two or three times the prices at local cafes. The attractiveness of foreign coffee products is also affected by their localisation: some beverages are made under foreign formulas but with domestic materials, meaning they do not seem "authentic" and put off foreign customers in Vietnam. However, locals too do not enjoy coffee made using foreign formulas and prefer local cafes. The increasingly fiercer competition is another important factor contributing to the foreign coffee chains' failure. Market observers pointed to the increasing dominance of affordable local coffee chains like Passio Coffee, The Coffee House, Phuc Long, Highlands Coffee, Urban Station, and Trung Nguyen. These have also intensified investment in design and decor to give foreign cafes a run for their money in terms of looks. Besides, customers there can get comfort foods that foreign cafes do not have such as phở (phở), bun (vermicelli soup), bread, hu tieu (rice noodle soup), and rice. But according to analysts, international coffee brands continue to be interested in the Vietnamese market. US chain PJ's Coffee opened its first outlet in HCM City recently and a second within two months. It hopes to have at least 10 additional stores in the next five years. A spokesperson for TRG International, the franchisee of PJ's in Vietnam, said each shop would be different and are based on lessons from the former. This is also seen at Starbucks, where each shop has its own style with a specific group of customers in mind. http://vietnamnews.vn/economy/376802/foreign-cafes-struggle-in-viet- nam.html#yLSOSmhktoOMTtSc.97

Residential apartment complex of the year opens sales 23/May/2017 Intellasia| VIR Locally-owned Song Da-Viet Duc Investment JSC held the official ceremony to open sales at its Viet Duc complex, which has attracted a lot of attention recently. Located in a prime location on Le Van Luong Street, Thanh Xuan district, the high-end apartment complex was identified as a worthy living complex of the year. 40 per cent of the complex's land area was reserved for construction, with the remainder housing ample green space and public areas. Its utilities and services harmonise people and nature. It has a four-season swimming pool, a large community space, a nursery school, an outdoor playground, and other facilities, such as a coffee shop, a gym, a supermarket, and a shopping centre. The project is developed by a consortium including Song Da-Viet Duc JSC, Construction and Industrial Equipment Corporation, and Construction Materials Trading JSC. Also at the ceremony, Nguyen Van Bay, chair of Song Da-Viet Duc management board, said that the project has all resources ready to for deployment and will apply modern technologies, such as 3D panels from Germany. The investors expect to hand over the project to customers in 2018. Homebuyers can enjoy preferential 80-per-cent loans for purchasing apartments from reputable banks, such as BIDV and Vietinbank, among others. At reasonable prices starting from only VND24.5 million ($1,078) per square metre and superior advantages in infrastructure and facilities, Viet Duc complex is a perfect choice for families. http://www.vir.com.vn/residential-apartment-complex-of-the-year-opens-sales.html

Tai Nguyen launches massive housing, mixed-use projects in HCM City 23/May/2017 Intellasia| VNS Housing developer Tai Nguyen Company on Sunday launched two projects in HCM City's Nha Be District worth over $1 billion, New Downtown Kenton Node Hotel Complex and Evergreen. They will be located on a combined area of over 11ha at the junction of Nguyen Van Linh and Nguyen Huu Tho streets in Nha Be District, and be a complex of apartments, condo-tels, hotel, shopping mall, food and beverage area, amusement area, school and clinic. According to the developer, New Downtown Kenton Node Hotel Complex will be a five-star hotel with 288 rooms and 586 condo-tels. It will also have 1,683 condos in sizes ranging from 47sq.m to 142sq.m. There will be a swimming pool, BBQ area and a one-hectare garden. A 1.8km walking street and a basement car park with a capacity to 5,500 vehicles will also be built. The 7.4ha EverGreen will be surrounded by a river. It will contain 42 garden villas in sizes ranging from 680sq.m to 1,200sq.m. and 68 city villas of 180- 250sq.m size. At the projects' launch, the company signed contracts with BIDV and Maritime for over VND1 trillion (US$44 million) to develop Kenton Node. SHB will provide VND500 billion ($22 million) for Evergreen. http://bizhub.vn/property/tai-nguyen-launches-massive-housing-mixed-use-projects-in-hcm- city_286301.html

Saigontourist teams up with Korea's Hanatour 23/May/2017 Intellasia| The Saigon Times Saigontourist Holding Company, the country's leading tourism enterprise, last Thursday signed a memorandum of understanding on tourism development cooperation with Hanatour, South Korea's leading travel agency, at Lottle Seoul Hotel within the framework of a working visit to Korea by a high-level delegation from HCM City from May 15-23. The signing ceremony was attended by Nguyen Thanh Phong, chair of HCM City, Bui Ta Hoang Vu, director of the HCM City Tourism Department, the Vietnamese ambassador to Korea, and senior representatives from tourism enterprises of both Vietnam and Korea. Under the MoU, both sides agreed on strengthening long-term and mutually beneficial relationship in related fields including travel and accommodation businesses, food and entertainment activities. In addition, the two sides pledged to promote tourism by air and sea between Vietnam and Korea, attract more international tourists to both countries and accelerate the sales and marketing activities of major products and services of Saigontourist. Over the past years, Saigontourist and Hanatour have launched some cooperation programmes through organising tours and charter flights taking Vietnamese tourists to Korea and vice versa. Vo Anh Tai, deputy general director of Saigontourist, said the cooperation agreement will contribute to enhancing the presence of Saigontourist in the Korean market in an effort to lure more Korean tourists to buy products and services of the Vietnamese leading hospitality enterprise, and promote tourism images of Vietnam and HCM City to the Northeast Asian country. Saigontourist Holding Company, established in August 1975, currently manages over 100 hotels, resorts, restaurants and travel companies and entertainment parks in different locations nationwide. It serves more than two millions of customers each year and works with over 1,000 leading tourism partners around the globe. Saigontourist Travel Service Co. under the umbrella of Saigontourist is the country's biggest travel firm with fruitful cooperation with the Korean tourism market. Hanatour is the largest travel agency of South Korea with its global network including 17 domestic subsidiaries, 10 overseas branches and 14 representative offices around the world. http://english.thesaigontimes.vn/54069/Saigontourist-teams-up-with-Korea percentE2 percent80 percent99s-Hanatour.html

Giant projects transform the face of Phu Quoc 23/May/2017 Intellasia| Vietnamnet To date, Phu Quoc Vietnam's largest island has attracted $16.7 billion of investment into a range of international-scale projects, which not only give the island a new face, but also attract other projects as well as tourists. Among them, Sun Group's projects in the south of the island are one of the engines of change. Billion-dollar projects taking shape Phu Quoc used to be an almost unknown island, but in recent years, the southern beaches of the island have turned into a worldwide vacation paradise thanks to the investment of many domestic and foreign companies. One of the biggest investor is Sun Group, with up to VND20 trillion ($881 million) of investment capital. At Khem Beach, one of the most beautiful beaches in Phu Quoc, billion-dollar entertainment and resort complexes and real estate projects are taking shape. JW Marriott Phu Quoc Emerald Bay, the first five-star hotel of international standards in Phu Quoc started operation at the end of last year. A representative from JW Marriott said that this is the most beautiful of all five-star hotels JW Marriott is managing all over the world. The resort was designed in a French architectural style by Bill Bensley and it includes 244 rooms, suites, apartments, and villas. It comes with an international-standard area for food and services Besides JW Marriott Phu Quoc Emerald Bay, Sun Group's Premier Village Phu Quoc Resort at MuiOngDoi is being built on 73 hectares. The resort was introduced at the end of 2015 in Hanoi. The super luxury villas have attracted many customers with their unique design. This is the only project with two sides facing the sea. The developer is completing the project in order to hand over the villas to buyers according to schedule. Also in the south of the island, Sun Group is developing a range of resort and entertainment properties. Examples include Premier Residences Phu Quoc Emerald Bay, where the basic construction is finished and the developer is decorating, landscaping, and finishing the amenities, as well as the trans-sea cable system linking An Thoi town with Hon Thom, which carries an investment capital sum of VND4.9 trillion ($215.9 million) in its first phase only, and the Hon Thom sea entertainment complex. At Khem Beach, Sun Group is finishing up a new masterpiece that would help complete the service and amenity system of the south of the island. Sun Group said the project, which is located next to JW Marriott Phu Quoc Emerald Bay, is going to be different from other luxury vacation real estate projects. The architects are going to create custom villas that fit the individuality of each owner. Phu Quoc's changing face With the billion-dollar projects in the south of the island, Sun Group has created a momentum for growth, helping the island change day by day. According to the Phu Quoc Development Management Board, at the moment, there are 24 projects being built on the island with a total investment sum of VND103 trillion ($4.54 billion). These include big infrastructure projects, such as the VND1.7 trillion ($75 million) Duong Dong-An Thoi-Bai Thom Road, the VND600 billion ($26.4 million) Cua Lap-An Thoi Road, and a $12- million water supply project. These will be the key projects that will lend a new face for the southern coast of the island, equipping it with modern infrastructure. When they are finished, the area will be easily connected to other key projects on the island and will elevate the area to a whole new level. The island's authorities are also pushing other key projects, such as the international airport, the first phase of which rides on an investment of VND3 trillion ($132.2 million), the VND1.64 trillion ($72.3 million) Duong Dong Port and the VND3 trillion ($132.2 million) road circling the island. With these projects, Phu Quoc is becoming a more attractive investment and tourism destination. In 2016, Phu Quoc received 1.45 million visitors, up 63 per cent on-year. In 2017, the island expects 25.2 per cent more, 1.8 million tourists altogether. Vacation real estate in Phu Quoc, especially in the south of the island, will have high potential for growth thanks to the modern infrastructure and the big international-standard entertainment zones nearby. http://english.vietnamnet.vn/fms/business/178872/giant-projects-transform-the-face-of-phu-quoc.html

Community space opens for tourists on My Khe beach 23/May/2017 Intellasia| VNS A Space for Community Culture was launched at the central city's East Sea Park yesterday, attracting the participation of 80 pavilions including souvenirs, food courts and folk games. Wedding couples pose for photos at East Sea Park in Son Tra Peninsula, Da Nang. The city's tourism department said the space will last through to the end of this month in order to serve booming tourism in Sơn Tra Peninsula. As scheduled, the space will open from 9am till 10pm each day from May 19 to May 31st. Tourists can sample traditional cuisine and purchase made-in-Da Nang gifts including stone sculptures, organic cosmetics, bamboo crafts, and carved shells. According to the department, a bartending competition will take place with the participation of competitors from Hue, Hoi An, Nha Trang and Da Nang. Live music performances will be on every night, while food courts will serve locals and tourists. My Khe beach, one of the world's most beautiful beaches, also boasts boat rides, as well as jet-ski and kayak rentals. http://www.vir.com.vn/community-space-opens-for-tourists-on-my-khe-beach.html

Traditional festivals promoted as tourist attractions 23/May/2017 Intellasia| VOV Traditional festivals in Vietnam share certain similarities, so it's important to promote each one's uniqueness. The Vietnamese tourism sector has implemented a strategy to promote traditional festivals as tourist attractions. The Vietnam Tourism Development Strategy until 2020 intends to develop typical tourist products for each locality and region in close connection with traditional festivals. The sector has worked out master plans for promoting traditional festivals. Minister of Culture, Sports and Tourism Nguyen Ngoc Thien said, "It's necessary to improve the organisation and management of festivals to promote their traditional value. We need to maintain festivals that are appropriate to the culture, morality, integration, and development of mankind." Vietnam has a rich and diverse culture with 54 ethnic groups whose festivals include cultural, religious, village, and craft festivals. Each one has a great potential for becoming a tourist attraction. Nguyen Van Tuan, general director of the Vietnam National Administration of Tourism, said, "We can create new products or renew old products to make our array of tourist products more attractive. We need to invest in, promote, and establish trademarks to make our tourist products more professional." Promoting traditional festivals as tourist products will help ensure sustainable growth for the tourism sector and increase the sector's competitiveness. It will also help preserve Vietnam's traditional cultural values. http://www.vir.com.vn/traditional-festivals-promoted-as-tourist-attractions.html

Economy

Apec 2017: Innovations boost economic growth 22/May/2017 Intellasia| VOV Members of the Asia-Pacific Economic Cooperation (Apec) forum are urged to create favourable conditions for capital attraction, personnel development, innovations, technology, and cross-border trade while improving competitiveness. Minister of Industry and Trade Tran Tuan Anh made the call at an Apec symposium on trade and innovation, co-held by his ministry and the Vietnam Chamber of Commerce and Industry on May 19 in Hanoi, as part of the 23rd Meeting of Apec ministers Responsible for Trade (MRT 23). "Trade is one of the key factors in designing policy and strategy for innovation. Trading of innovation has helped Apec members bolster their trade relations," Tuan Anh said. Anh noted that the region's average tax rate declined from 11 percent in 1996 to 5.5 percent in 2016, which reflected efforts made by the region and each economy to carry out cooperative activities on trade liberalisation and trade and investment facilitation. The International Monetary Fund's Regional Economic Outlook for Asia and the Pacific estimates growth for the region to increase this year to 5.5 percent from 5.3 percent in 2016, he said. The minister underlined the need for Apec economies to coordinate harmoniously in building a general trade system towards equality and balance, for interests of people and businesses and for prosperity of society. Apec trade ministers discussed how to make use of policies to inspire innovation and the government's role in the commercialisation of innovation in Apec members, especially in developing economies. Regarding the MRT 23, minister Anh said that Vietnam places high priority on major outcomes that need to be reached during the event aiming to coordinate with other Apec economies in building a peaceful, stable, and prosperous Asia-Pacific region. The same day, the Ministry of Industry and Trade held the 3rd Apec Public-Private Dialogue on trade facilitation and supply chain connectivity via the Asia-Pacific model E-port network. http://english.vov.vn/economy/apec-2017-innovations-boost-economic-growth-349911.vov

Apec Senior Finance Officials Meeting wraps up 22/May/2017 Intellasia| VNA The Apec Senior Finance Officials Meeting (SFOM) concluded in the northern province of Ninh Binh on May 19 after two working days. In his closing speech, Vu Nhu Thang, director of the International Cooperation Department under the Ministry of Finance, who doubles as SFOM 2017 Chair, noted the event's important outcomes, requesting officials to continune discussions to prepare the report for the upcoming Apec Finance ministers' Meeting to be held in October. During the course of the meeting, senior officials discussed policies to promote long-term investment in infrastructure, and risk allocation mechanisms in public-private partnership (PPP) projects in particular. They also discussed regulations and best practices in the Apec region in coping with base erosion and profit shifting, especially by multinational corporations which often lead to losses in taxes in related economies. Also on the agenda were policy recommendations on disaster risk management, especially on practical experience in formulation of policy responses in the areas of fiscal contingencies, standby credit schemes, stabilisation funds as well as improvement in disaster forecasting and methodology for disaster risk budgeting. Delegates from 21 Apec member economies also noted the challenges in financial access in rural and agricultural development and discussed orientations for improving financial access in rural areas to support poverty reduction. The meeting received valuable support from international organisations, such as the World Bank (WB), the Asian Development Bank (ADB) and the Organisation for Economic and Cooperation Development (OECD). http://english.vov.vn/economy/apec-senior-finance-officials-meeting-wraps-up-349884.vov

TPP trade deal members seek to move ahead without US 22/May/2017 Intellasia| VN Express Vietnam would want to renegotiate requirements in areas like labour reform and intellectual property rights if TPP were to continue without the US Remaining members of the Trans Pacific Partnership (TPP) free trade agreement are working on a statement to reaffirm their commitment to it despite the withdrawal of the United States, sources close to the discussions said. Talks are happening on the sidelines of an Asia-Pacific Economic Cooperation (Apec) meeting, the biggest trade gathering since US President Donald Trump upended the world order with his "America First" policy. The competing visions are evident at this weekend's Apec meeting of ministers from countries that account for well over 40 percent of world trade. While new US Trade Representative Robert Lighthiser will hold bilateral talks with key countries, China will be pushing its favoured Asian trade agreement as it puts itself forward as a global free trade champion. Meanwhile, Japan is leading the countries that still want to go ahead with a much more comprehensive TPP agreement, a deal Trump ditched in one of his first acts in office and which does not include China. Sources close to the discussions said the so-called TPP-11 statesthe 11 members left after the United States withdrewwere planning a statement for Sunday that would say they were committed to moving ahead with TPP. "There will be two main points: 1. To aim for an early entry into force of the TPP-11, 2. To bear in mind an environment where a signatory country can return," said one source close to the discussions who was not authorised to speak to the media. The agreement is due to come into force next year. Challenges Among the challenges is keeping on board Vietnam and Malaysia, who would have been big beneficiaries from the agreement if it included the United States. Vietnam would want to renegotiate requirements in areas like labour reform and intellectual property rights if it were to continue without US participation, said one Vietnamese official who declined to be identified. Japan is still hopeful that the United States can be brought back to the agreement. But renegotiating the existing North America Free Trade Agreement (NAFTA) is a bigger immediate priority for Washington. In Hanoi, Lighthiser is due to hold bilateral meetings to start making official contact with key trade officials. Nearly all the other 20 members of Apec had requested bilateral meetings, US officials said. Main countries are China, Japan and South Korea, with which Trump wants to renegotiate a free trade deal. Canada and Mexico will be at the Asia-Pacific meetings and are also in the North American trade area. In other talks on the sidelines, China will be driving for progress on its favoured trade deal for Asia: the Regional Comprehensive Economic Partnership. The free trade agreement doesn't cover as many areas as the TPP deal or demand tough conditions for members on issues such as protecting intellectual property, labour rights or the environment. Doubts over TPP have given greater impetus to discussions which members hope to complete by the end of the year. But officials said there remained significant points of disagreement in the talks between Southeast Asian countries, China, India, Australia, New Zealand, Japan and South Korea. The United States has never been part of those discussions. http://e.vnexpress.net/news/business/tpp-trade-deal-members-seek-to-move-ahead-without-us- 3587316.html

Ministers discuss TPP on sidelines of Apec meeting 22/May/2017 Intellasia| VNA Ministers and vice ministers from Australia, Brunei Darussalam, Canada, Chile, Japan, Mexico, New Zealand, Malaysia, Peru, Singapore and Vietnam met in Hanoi on May 21 to discuss the Trans-Pacific Partnership (TPP) Agreement. The meeting was part of sideline activities of the 23rd Meeting of the Asia-Pacific Economic Cooperation (Apec) ministers Responsible for Trade (MRT 23). The ministers reaffirmed the balanced outcome and the strategic and economic significance of the TPP highlighting its principles and high standards as a way to promote regional economic integration, contribute positively to the economic growth prospects of its member countries, and create new opportunities for workers, families, farmers, businesses and consumers. The ministers agreed on the value of realising the TPP's benefits and to that end, they agreed to launch a process to assess options to bring the comprehensive, high quality agreement into force expeditiously, including how to facilitate membership for the original signatories. The ministers tasked their senior trade officials to engage to take forward the preparation of this assessment. The ministers asked for this work to be completed before they meet on the margins of the Apec Economic Leaders Meeting on November 10-11, 2017 in Vietnam's central city of Da Nang. The ministers also underlined their vision for the TPP to expand to include other economies that can accept the high standards of the TPP. These efforts would address the concern about protectionism, contribute to maintaining open markets, strengthening the rules-based international trading system, increasing world trade, and raising living standards. http://english.vov.vn/economy/ministers-discuss-tpp-on-sidelines-of-apec-meeting-349970.vov

Apec ministers Responsible for Trade Meeting concludes 22/May/2017 Intellasia| VNA The 23rd Apec ministers Responsible for Trade Meeting (MRT 23) wrapped up in Hanoi on May 21 after two working days, producing practical outcomes that contribute to boosting the process of realising Apec Year 2017's themes and priorities. MRT 23 has also laid the foundation for the next steps towards the Apec Economic Leaders' Week in November. Tran Tuan Anh, minister of Industry and Trade and MRT 23 Chair made the remarks at a press conference after the closing session of the MRT 23, the first ministerial Meeting of the Apec Year 2017 and the only of its kind held in Hanoi. He said at the meeting, delegates voiced their strong support for the necessity of maintaining Apec's role as a driving force of regional economic growth and connectivity, and an incubator of ideas for regional cooperation and connectivity as well as for the prosperity of Asia-Pacific. Delegates also agreed to continue working for the completion of the Bogor Goals on trade liberalisation and investment in 2020. The minister further said the meeting demonstrates Apec's determination to continue building a sustainable, transparent, multilateral trading system, taking law as an important base and foundation for international trade. It also represents Apec's support of the 11th WTO ministers Meeting to be held in Buenos Aires, Argentina in December this year, he added. The minister also informed that the meeting reviewed the development of several initiatives and priorities during the Apec 2017, including the further implementation of the Lima Declaration on the Asia-Pacific Free Trade Area, the development of a cross-border e-commerce facilitation framework; supporting industry initiatives; the draft of an action plan on economic, financial and social promotion in the Apec region. The ministers also examined the building of the Apec Framework for Human Resource Development in the digital age and the Apec vision for the post-2020 era, which will be submitted to the 29th Apec ministerial Meeting and the 25th Economic Leaders' Meeting for approval. On the sidelines of the meeting, several events were held, including the Apec App Challenge to help SMEs participate more actively in the regional market and an international symposium on the trade and innovation with the participation of ministers and representatives of the business community in the region, he added. The meeting also adopted a Chair Statement, the minister said. http://english.vov.vn/economy/apec-ministers-responsible-for-trade-meeting-concludes-349976.vov

Vietnam attends 23rd Asean-China Senior Officials' Consultation 22/May/2017 Intellasia| VNA Senior officials of Asean and China convened the 23rd consultations in the Chinese province of Guizhou on May 19 to review their cooperation across the fields and outline specific tasks for the near future. The two sides agreed that economic-trade-investment link will continue to be the foundation for bilateral ties, and were committed to effectively carrying out the 2016-2020 Action Plan and soon completing procedures to upgrade the Asean-China Free Trade Area towards lifting two-way trade to 1 trillion USD and the total investment to 150 billion USD by 2020. China pledged to support Asean's central role and help the grouping carry out the Asean Community Vision 2025 and goals on narrowing development gap, building infrastructure, strengthening connectivity and regional integration, especially via effectively utilising joint funds between Asean and China and funding from the Asian Infrastructure Investment Bank. About the Asean-China strategic partnership, countries underscored the need to strengthen regional connectivity, including defining common priorities in China's Belt and Road initiative and the Master Plan on Asean Connectivity. Accordingly, Asean asked China to continue providing support for micro, small and medium-sized enterprises (MSMEs), infrastructure building and sustainable development in the region. Turning to the East Sea issue, participants acknowledged the outcomes of the Asean-China SOM on DOC on May 18, including a consensus on submitting the draft framework of a Code of Conduct in the East Sea (COC) to the Asean-China ministerial Meeting in August for consideration and approval. They affirmed that it is an initial step forward for the next negotiations on the legally-binding COC for the sake of peace and stability in the region. Speaking at the meeting, deputy Foreign minister Nguyen Quoc Dung, head of the Senior Officials' Meeting (SOM) Asean Vietnam, highlighted the East Asia's development prospect in regional and inter- regional connectivity and the role of Asean-China partnership in building the Asean Community. Vietnam will work with other countries to enhance the effectiveness of regional cooperation mechanisms and frameworks as well as the Asean+ 3 (China, the Republic of Korea and Japan) mechanism, he said. On regional and global issues, the deputy FM underscored Vietnam's principles and stance on the East Sea, the Korean Peninsula, and non-traditional security issues such as terrorism and trans-national and cyber crimes. http://en.vietnamplus.vn/vietnam-attends-23rd-aseanchina-senior-officials-consultation/111989.vnp

President shows hope for stronger economic ties with China 22/May/2017 Intellasia| VNA President Tran Dai Quang hosted a reception for Chinese minister of Commerce Zhong Shan in Hanoi on May 20, during which he emphasised that Vietnam attaches importance to expanding and improving the effectiveness of economic, trade and investment cooperation with China. Lauding the positive growth of the Vietnam-China comprehensive strategic partnership, especially in the economy, trade and investment, he noted that China has been the largest trade partner of Vietnam, while Vietnam has become the largest Asean trade partner of China. He said that during his China visit from May 11-15 to attend the "One Belt, One Road" Forum, leaders of the two countries reached important shared perceptions on orientations and major measures to strengthen political trust, foster bilateral friendship and cooperation, and maintain the healthy and stable development of the bilateral ties. He proposed that the two sides actively carry out agreements and common perceptions reached by senior leaders of the two countries, thus promoting economic, trade and investment partnership in a stable, balanced and sustainable manner. The President lauded China's affirmation in opening its market and creating favourable conditions for Vietnam's agro-fisheries and food products, electronics and coal. He suggested that China give more favourable conditions for the clearance of goods at border gates to boost economic growth and improve living conditions for locals in border localities of both sides. The two countries should urge businesses of both sides to promptly deal with current obstacles and problems facing joint projects, he said, adding that both countries should also share ideas in making planning and plans in development strategy connection, improving production capacity and building cross- border economic zones to match the benefit and sustainable growth strategies of both sides. The State leader also spoke highly of China's support and close coordination during the 2017 Apec Year that Vietnam is hosting. He proposed that the two sides continue working closely together to create a new motivation for the sustainable, inclusive and creative growth of the Asia-Pacific region and driving Apec cooperation and connection to 2020 and beyond. He welcomed Chinese President and Party general Secretary Xi Jinping to visit Vietnam and attend the Apec Summit 2017 in Danang. For his part, Zhong Shan affirmed that China highly values the development of ties with Vietnam in a stable and deep fashion. He briefed the host on his activity during his stay in Vietnam, including a working session with Vietnam's minister of Industry and Trade on measures to effectively carry out high-level agreements reached by leaders of the two Parties and State, thus promoting bilateral economic, trade and investment growth. China's Ministry of Commerce is willing to work with Vietnam's relevant agencies to realise the outcomes of the China visit of President Tran Dai Quang, he stated. The Chinese official pointed to high cooperation potential between the two countries, expressing China's hope to import more goods from Vietnam to lift up two-way trade to exceed $100 billion towards balance in bilateral trade. China pledges to open its door wider and creating favourable conditions for Vietnamese goods in the market, he said, adding that the Chinese government has also encouraged local businesses to invest in Vietnam and strengthen partnership with their Vietnamese peers in high technology. http://english.vov.vn/economy/president-shows-hope-for-stronger-economic-ties-with-china-349949.vov

President hails Vietnam- US trade ties 22/May/2017 Intellasia| VNS During his keynote address at yesterday's conference on the future of the VietnamUS commercial relationship, President Tran DaiQuang expressed his faith in the bilateral economic ties between Vietnam and the United States. The conference, titled "The United States and Vietnam in 2017 and Beyond" and jointly hosted by the American Chamber of Commerce in Hanoi (AmCham) and the US Chamber of Commerce with cooperation from the Vietnam Chamber of Commerce and Industry (VCCI), aimed to promote expanded trade and investment through dialogues between government and industry leaders from both countries. During his address, the President said that bilateral growth will be the basis for the comprehensive partnership between the two countries toward sustainability, stability, productivity and mutual benefits. Sharing in the President's belief, Ted Osius, current United States Ambassador to Vietnam, stressed that US firms have significant interest in the Vietnamese market, and he also trusts that trade, economic and investment ties between the two nations will be the foundation of mutual progress. Quang suggested that businesses from both sides play more active roles in investment and trade according to Vietnam's needs and the US' advantages. He urged the United States to become the number one investor in sectors such as energy, oil, infrastructure, education and travel. As an opportunity for business communities from both countries to engage in direct talks, solve remaining problems and share trade and investment experience, the conference featured discussions panels on healthcare, financial technology and market development, as well as innovations in information technology and manufacturing. Participants also discussed the growth of small- and medium-sized enterprises, and they explored ways to improve market access through trade facilitation toward export-driven growth for Vietnam's economy. Vu Tien Loc, VCCI's Chair, asserted that even with the absence of the Trans Pacific Partnership (TPP), Vietnam and US bilateral trade ties will continue to strengthen through other cooperative mechanisms and new trade agreements to replace the TPP. According to AmCham's recent survey, Vietnam is still the number one choice for US companies, as more than 80 per cent of them hope to have higher revenue in 2017, 72 per cent believe the business environment in Vietnam is improving and 40 per cent plan to expand their business here in the next two years. "American companies are excited about opportunities in Vietnam, however they face a number of challenges in the country through market access restrictions and other barriers, for which we are working to find concrete ways to strengthen the bilateral trading relationship, including the possibility of a bilateral free trade agreement," said Tami Overby, Senior vice President for Asia of the US Chamber of Commerce. In response, the government of Vietnam will work continuously to improve the domestic entrepreneurial environment, ensure fair competition and form a green and sustainable market economy through institutional reconstruction, human resource development and infrastructure unification. Towards the end of yesterday's conference, a Memorandum of Understanding, a Framework of Cooperation and a Letter of Collaborative Intent were signed by representatives from government agencies and trade organisations from both sides, namely the VCCI, the general Department of Vietnam Customs and AmCham. US investors now play an important role in Vietnam's economy, as the US ranks 8th amongst countries and territories with direct investment in the country, with a variety of multinational groups from the US turning a profit. However, President Quang expressed his hope that Vietnam will continue to export to the US a wide selection of agricultural products, seafood, textile, electronics and household goods. Trade relations between the two nations are on the rise, having increased from 2008's trade value of $15 billion to 2016's number of $52 billion. Furthermore, the US exports to Vietnam have risen by 43 per cent between 2015 and 2016, proving that bilateral economic ties are the fruits of joint announcements and oriented visions. 'We are confident that the upward growth trend of trade and investment relations between the US and Vietnam will continue, and can strengthen,' said AmCham Executive director Adam Sitkoff. http://vietnamnews.vn/economy/376786/president-hails-viet-nam-us-trade-ties.html

African countries seek cooperation with Vietnamese enterprises 22/May/2017 Intellasia| DTI News African countries are looking to cooperate with Vietnamese enterprises, H.E. Joao Manuel Bernado, Ambassador of The Republic of Angola in Vietnam, told a press conference on May 19 to promote Africa Day on May 25. The Ambassadors of eight other African countries belonging the African Ambassadors Group in Vietnam also believe relations between enterprises from the continent and Vietnam should bolster their cooperation in the future. H.E. Gamilied Munguambe, Ambassador of Mozambique in Vietnam, said there were major Vietnamese groups already investing in African countries, such as Viettel Group's activities in Nigeria. H.E. Mohamed Berrah, Ambassador of Algeria in Vietnam, mentioned the investment by the Vietnam Oil and Gas Group (PetroVietnam) in his country. Ambassador Bernado also spoke of the exchange activities planned to celebrate Africa Day on May 25, including a seminar on "Harnessing the Demographic Dividend Through Investment in Youth in Africa" to be held on May 22 and a celebratory party on May 25 in Hanoi. The seminar will be attended by all African Ambassadors in Vietnam and leaders from the Vietnamese government and local enterprises, with a discussion entitled "Promoting Startups Among Youth in the Globalisation Era: Shared Experiences from Vietnam". Algeria and Vietnam will also celebrate 55 years of diplomatic relations in October. "Therefore, the Embassy of Algeria in Hanoi will organise a photo exhibition, a film week, and a party to promote our history and culture among Vietnamese," Ambassador Berrah said. "Although Vietnam and Africa have a long geographical distance between them, we want to advertise Africa's history and culture and identify investment cooperation with Vietnamese enterprises through these activities," said Ambassador Bernado. http://dtinews.vn/en/news/018/50966/-african-countries-seek-cooperation-with-vietnamese-enterprises- .html

Canadian trade minister visits Vietnam on four-country Asia tour 22/May/2017 Intellasia| Tuoitre News Canadian minister of International Trade Francois-Philippe Champagne is scheduled to attend a meeting in Hanoi today, May 20, as part of a week-long trip to East and Southeast Asia to advance Canada's progressive trade agenda. Minister Champagne is also slated to conduct a forest products trade mission during the May 2026 trip, the Global Affairs Canada said in a press release ahead of the visit. According to his agenda, Champagne will take part in the Asia-Pacific Economic Cooperation ministers Responsible for Trade Meeting in Hanoi on May 20 and 21 to promote Canada's progressive trade approach and advance engagement with Asia Pacific. While in Vietnam, he will also meet with senior government and business leaders to discuss ways to expand Canada's trade, including in Canadian forest products with Vietnam. Champagne will then leave Hanoi for Singapore, where he is scheduled to meet with members of the Canada-Asean Business Council, before heading for Seoul and concluding his trip in Tokyo. The Asia tour takes place in the context that Canada is focusing on stimulating economic growth at home by increasing trade with partners in Asia, and the fast-growing markets in the region offer enormous potential for Canadian businesses and opportunities to create good-paying jobs for Canada's middle class. Speaking to an audience of Canadian business executives in Ottawa earlier this week, the trade minister reiterated the importance of relations between Canada and Asean, as Canada celebrates 40 years of engagement in the region. "Canada is a trading nation, and growing our trade relations with Asia is a top priority," minister Champagne said at the event. "Asia represents significant opportunities for trade and investment with Canada that will create long-term growth, good jobs and an economy that works for the middle class. "I am proud to be in Asia for the second time in a month promoting our world-class forest products." http://tuoitrenews.vn/business/41078/canadian-trade-minister-visits-vietnam-on-fourcountry-asia-tour

China promises profit for One Belt, One Road support 22/May/2017 Intellasia| VIR China's One Belt, One Road initiative is going to be of great importance to this nation's presence in the region, and China is promising that Asean companies, including Vietnamese ones, will enjoy plenty of benefits by deepening their participation in the link between Asia, Africa, and Europe. Infrastructure to be China's signature export It is not a coincidence that the high-speed rail was chosen as the first and main mode of transportation for a press trip regarding China's One Belt, One Road (OBOR) initiative. The 10-day trip included reporters from 10 Asean nations and tours of Hunan and Jiangxi. The distance between Guangzhou and Hunan is 800 kilometres. The high-speed train, at full capacity, can travel 300km per hour and this is not even China's newest high-speed passenger train. At the end of December, China opened the Shanghai-Kunming high-speed rail linking the prosperous east with the disadvantaged southwest. According to CRRC Corporation, the 2,252km long Shanghai-Kunming rail link is one of the longest in the world, passing through the five provinces of Zhejiang, Jiangxi, Hunan, Guizhou, and Yunnan. Its maximum velocity of 330km per hour reduces the journey from Shanghai to Kunming from 34 to 11 hours. The quality and punctuality of China's high-speed rail system is comparable to systems in Europe and Japan. In only one decade, the country has built more than 20,000km of high-speed rail lines, connecting the majority of Chinese urban areas. China's experience in high-speed locomotives has led them to choose it as their national symbol, to be highlighted as a product that the country can export to the rest of world. CSR Zhuzhou Electric Locomotive Co., Ltd, one of the subsidiaries of CRRC, which supplies carriages and locomotives, is targeting Asean members and countries in the OBOR region specifically. The company's first export order was in 1997, and its products are now present in over 30 nations worldwide. In Southeast Asia, the company has built a strong presence in Malaysia. Its success here has helped CRRC to win building contracts for the 350km high-speed rail linking Kuala Lumpur of Malaysia to Singapore. Because the Trans-Asia rail link between Singapore and Kunming passes through Vietnam, it is a market that infrastructure and locomotive companies in China have their eye on. Before Vietnamese President Tran Dai Quang visited China recently, local government agencies received proposals from CRRC, in which the company expressed its desire to help Vietnam finance and solve technical problems in various rail projects specifically the Yen Vien-Pha Lai-Halong-Cai Lan project, the Lao Cai-Hanoi-Hai Phong project, the Saigon-Moc Bai project, and the high-speed North-South railway. These projects can potentially be connected to the Trans-Asia rail system that China and other regional countries are working to build. Promise of win-win Authorities and companies in Hunan and Jiangxi have been preparing for exponential growth when the 21st century Silk Road project is finished. Products that will be transported on this road are mainly pieces of heavy industrial equipment and made in China. Chinese companies and investors in the OBOR region are eligible for preferential financing from the Asian Infrastructure Investment Bank (AIIB). More than a year since its establishment, AIIB, with total capital of $100 billion of which China has contributed $50 billion has lent $1.73 billion to nine projects in the public and private sectors. Countries in the OBOR region expect that the bank will also accelerate lending to investors in the private sector for large infrastructure projects. China confirms that companies from all nations involved will benefit from OBOR, and trade between China and other nations will be balanced and equitable. The Chinese Ambassador in Vietnam, Hong Xiaoyong, said that the OBOR initiative is in line with the aim of the Master Plan on Asean Connectivity 2025, issued by the governments of the Asean members in September 2016. The plan targets a seamless, and comprehensively connected Asean that will promote competitiveness, inclusiveness, and a greater sense of community through physical, institutional, and people-to-people connectivity. "This is what all countries in the region are targeting and is inevitable for sustainable growth," Xiaoyong said. There are Asean companies that have achieved a lot of success in China. Thai company Charoen Pokphand is one of them. As one of the first companies to invest in China's animal feed industry, the company has invested a total of RMB100 billion ($14.5 billion) there, and has built 300 facilities. Vithit Powattanasuk, director of the Information and Public Relations Division of the Asean-China Centre, said the initiative would give Asean companies a chance to access the 1.4 billion people in the Chinese market. "China has policies to support foreign firms that join in the project and it is up to the companies to make the most out of this chance," he said. The OBOR initiative is set to reach 65 countries and 4.4 billion people. These countries account for 30 per cent of global GDP, and constitute one third of all global trade. http://www.vir.com.vn/china-promises-profit-for-one-belt-one-road-support.html

Sustainable productivity key to survival: APO 22/May/2017 Intellasia| VNS Sustainable productivity is the only way for the world to deal with changing business models driven by fast changing technologies, according to the Asian Productivity Organisation. Dr Santhi Kanoktanaporn, APO's secretary-general, said the world has experienced an unprecedented rate of change in every field, including the internet, mobile phones and knowledge. The fast changing and newly emerging technologies today not only attempt to make current products better, but "also disrupt or kill current products or organisations. This kind of innovation we called disruptive innovation." In an interaction with the media in HCM City recently, he said: "One of the technologies coming very fast and that is very important is artificial intelligence. "If you put this box an artificial intelligence into a car then you do not need to drive a car, it will take you to the destination you want. That's why we call it disruptive because if you have a car you drive yourself, in future you cannot sell it." The other emerging disruptive technologies include Fin Tech (financial technology) and hyperloop (a new way to move people and things at aircraft speed for the price of a bus ticket). With Fin Tech, "In the very near future we will not use money any more. The banking industry is very scared of this because it will take away financial transactions." Businesses have to be able to know which ones would be disruptive to survive, he said. A key issue for the APO is to enable member economies to deal with the uncertain global business environment driven by newly emerging technologies that are drastically altering business models and shortening product life cycles. To meet the challenge, he urged member nations to focus on sustainable productivity initiatives. "The key to sustainable productivity lies in the organisation's ability to shape its environment to take advantage of the shifting market environment or risk being shaped by them." He described the five basic steps for any organisation in any country to follow for survival in a rapidly changing situation: "Be trend literate, act in a timely manner, leverage tools for advance notice, manage and combine trends to create value, and shape the future by acting on what we see." To support sustainable productivity, the APO has built a platform using artificial intelligence to monitor emerging global trends, he said. Trap of success Talking about challenges for Vietnamese companies wanting to adopt sustainable productivity, he called the challenges the "trap of success." "Not just in Vietnam but everywhere, if you are working on this area today and are very successful and you think it will be successful for another five years and stick to that business." But businesses need to know what is changing to catch up and remain successful, he said. He cited the examples of Nokia and Kodak, which used to be very successful, asking "where are they now?" According to deputy minister of the Ministry of Science and Technology Tran Viet Thanh, sustainable development is one of the fundamental criteria in reforming Vietnam's model of economic growth as well as its most significant goal. Kanoktanaporn said in preparation for an incoming wave of new technologies prime minister Nguyen Xuan Phuc has issued a directive to strengthen the country's ability to access Industry 4.0. The APO, which was established in 1961, has 20 member countries, including Vietnam. http://vietnamnews.vn/economy/376624/sustainable-productivity-key-to-survival-apo.html

Measures to reach 6.7pct GDP growth target in 2017 22/May/2017 Intellasia| VIR The government will not propose the National Assembly (NA) to adjust the economic growth target in its third session, which is scheduled to take place on May 22, 2017. Dr Nguyen Duc Kien, deputy chair of the National Assembly Economic Commission, told VIR's Manh Bon that if Vietnam focuses on available solutions, and especially, the disbursement of investment capital, the 2017 GDP growth may be closer to the target of 6.7 per cent. Are you satisfied with Vietnam's economic performance in the first four months of 2017? Based on the statistics of the general Statistical Office of Vietnam, the GDP increased by only 5.1 per cent in the first quarter of 2017, the lowest growth rate since the trough of 5.42 per cent in the second quarter of 2014. Thus, to reach the target of 6.7 per cent, for the three remaining quarters of 2017, an average of 7.1 per cent growth needs to be produced. This will be difficult to achieve. Of the three main pillars of the Vietnamese economy, although agriculture, forestry and fishery sectors significantly recovered in the first quarter of 2017, their overall growth rate was a meagre 2.03 per cent, a decrease of 1.23 percentage points compared to the same period in 2016. However, agriculture produced 1.38 per cent of growth, a huge improvement over the negative growth of 2.69 per cent in the same period of 2016. Industrial production grew by 3.85 per cent, the lowest since 2011. The mining industry decreased by 10 per cent, and construction rose by 6.1 per cent only, which is much lower than the 8.6 per cent of the same period in 2016. The only highlight is the services industry, but its growth rate was only 6.52 per cent, only slightly higher than in the same period in 2016. Did the impressive export-import activities during the first four months have no leverage? In 2016, we expected a trade deficit under 5 per cent of the total export turnover, but eventually we witnessed an export surplus of 1.43 per cent, equivalent to $2.52 billion. However, the first four months of 2017 saw a trade deficit of $2.74 billion, an equivalent of 4.5 per cent of the total export turnover. This demonstrates that Vietnam's foreign trade activity is not stable. Exports in the first four months of 2017 increased by 15.4 per cent, but this growth rate is difficult to maintain. Donald Trump's administration is conducting a tax policy with the aim of restricting exports from countries with export surplus into the US. If this policy passes, it will significantly affect the import-export activities, balance of trade, and many other targets of the Vietnamese economy, as the US is the biggest export market bringing in the largest export surplus for us. Besides, if the Federal Reserve System (Fed) continues to raise the US interest rate, it will similarly influence the Vietnamese exchange rate, balance of trade, investment, public debts, overseas remittances, and domestic production and prices. How did the country fare in terms of attracting foreign investment and establishing new companies in this period? The total capital licensed for new projects as well as additional capital, and foreign investments under the forms of capital contribution and share purchases during the first four months of 2017 reached $10.598 million, an increase of 40.5 per cent compared to the same period last year. However, disbursed foreign direct investment (FDI) only grew by 3.2 per cent, to $4.8 billion. Thus we should disburse this foreign investment capital as soon as possible. During the first four months of this year, there has been 39,580 newly established companies, with a total licensed capital and additional capital amount of about VND825.3 trillion ($36.3 billion). Nevertheless, these figures indicate that the investment and business environment as well as the institutional setup have been improved and raised people's confidence to do business. However, they do not have immediate influence on economic growth. Do you suggest any solutions for this situation? It is necessary to continue tackling difficulties facing production and business, reviewing long-delayed FDI projects, and avoiding the increase in new investments, while the disbursement is slow. In addition, we should focus on disbursing public investment. As of May 2017, investment capital from the state budget for basic constructions accounted for 18.8 per cent of the annual estimate. In addition, the state earned VND50 trillion ($2.2 billion) from the sale of government bonds in 2017, which was not disbursed at all. In 2016, VND12 trillion ($528 million) gained from selling government bonds was not been disbursed. During the first four months of 2017, only VND5 trillion ($220 million) of this VND12 trillion was disbursed. I think that we should regularly monitor and tackle difficulties encountered by management agencies to speed up the plan on public capital disbursement, so that this capital reaches the economy, spreads out and contributes to growth. Tourism is developing beyond our expectations and many call to position this "non-smoke industry" to spearhead economic development. Do you think this is a workable proposition? 2016 was the first time that Vietnam lured in over 10 million tourists, an increase of 26 per cent on-year. In the first four months of this year, Vietnam welcomed over 4.2 million tourists, an increase of 30 per cent compared to the same period last year. With this growth rate, tourism is becoming a significant economic sector of the Vietnamese economy. Nevertheless, to turn tourism into a spearhead, we should largely alter our behaviour and point of view. For instance, in terms of the economy, tourists taking part in "VND0 tours" (tours that are free but during which tourists are led through expensive shopping venues to make up for the VND0 price) are similar to other tourists in that they are all subject to the same charges. In essence, they have to pay for accommodation, food, and tickets to visit landscapes. If local authorities think that this kind of tour may badly influence the image of the Vietnamese tourism industry, related agencies should closely manage tourism companies which operate these tours, instead of forbidding them. If local authorities maintain their current behaviour, it will be hard for tourism to become a spearhead economic sector. http://english.vov.vn/economy/measures-to-reach-67-gdp-growth-target-in-2017-349934.vov

$62b earned as export turnover in four months 22/May/2017 Intellasia| VNS Vietnam's export turnover reached $62.09 billion in the first four months of this year, a year-on-year increase of 16.8 per cent, the general Department of Vietnam Customs reported. The country's import turnover was $63.99 billion. The country enjoyed a trade surplus of $186 million in April, which contributed to reducing the trade deficit to $1.9 billion during the period, the customs authority said. Vietnam saw a hike in its trade deficit of more than $9.9 billion with South Korea, making it the market with the highest trade deficit in the country. Vietnam exported goods worth $4.4 billion to South Korea, up 31.5 per cent compared with the same period last year; however, it imported goods from this country worth $14.37 billion, up 52.3 per cent. The customs authority said the main products exported to South Korea were telephones, computers, electronic products and machines, as well as textile and garment products. Meanwhile, the country imported various kinds of fuel, telephones, devices and plastic material. http://bizhub.vn/news/62b-earned-as-export-turnover-in-four-months_286270.html

Customs to cut clearance time 22/May/2017 Intellasia| VNS The customs authority has striven to shorten the time for carrying out customs clearance of goods across borders to 70 hours for export goods and 90 hours for import goods by the end of this year. The general Department of Customs (GDC) on Wednesday said in its report that the authority would continue its renewal and modernisation process while reducing paperwork and cost of administrative procedures to follow government's Resolution No 19-2017/NQ-CP on improving the business environment and enhancing national competitiveness in 2017 and orientation to 2020. Accordingly, the time for customs clearance of goods across the border would be shortened to 60 hours for export goods and 80 hours for import goods by 2020. The set targets were much higher than those of 2016, requiring the sector to make greater efforts. According to the Vietnam Logistics Association's (VLA) statistics in 2016, the time to clear exports is still high up to 108 hours and 138 hours for imported goods. The GDC will also improve all of its online public services to level 3, which allows applicants to fill and submit forms online. Some 70 per cent of its key services would move up to level 4, which allows them to not only submit required forms but also make payments and receive results online. In addition, the authority will continue to complete its Vietnam Automated Cargo and Port Consolidated System/Vietnam Customs Information System (VNACCS/VCIS) and will prepare for the second phase of the system as soon as it receives approval from the Japanese government. It will also submit to the government a proposal for the building of a national one-stop-shop mechanism, Asean one-stop-shop mechanism and special checks to create favourable conditions for import-export products. In the report "Assessing the reform of customs procedures: the satisfaction of enterprises in 2016," conducted by the Vietnam Chamber of Commerce and Industry, some enterprises said the inspection has resulted in too many overlapping legal documents. Further, there was no close coordination between the customs and specialised management agencies and too many licences are required. It was the reason the GDC was cooperating with relevant ministries to promote socialisation of special checks on import-export goods to meet the set targets. http://vietnamnews.vn/economy/376676/customs-to-cut-clearance-time.html

Electricity sector urged to reduce power loss 22/May/2017 Intellasia| VNA The electricity industry must improve its management and technology to reduce losses in the transmission grid as well as eradicate power stealing, which are very serious in rural and remote areas, delegates heard at a recent seminar in Con Dao Island in Ba Ria Vung Tau. Vietnam is ranked 88th of 137 nations for power loss at 8.95 percent, according to the International Energy Agency. "Upgrading technology for the transmission grid and increasing awareness in rural and remote residents about power stealing are two urgent jobs," Nguyen Tan Nghiep from the Southern Power Association told the Sai Gon Giai Phong (Liberated Saigon) newspaper. The Vietnam Electricity Group (EVN) has set the goal to reduce power loss from 8.95 percent to 6.5 percent by 2020 by applying new technical and operational solutions as well as building new electricity plants and transmission grids. During 2016-2020, EVN has invested in 13 electricity projects with total capacity of 6,989 MW. By ensuring electricity supply, power won't need to be transmitted far distances and it will help reduce losses. For the transmission grid, a 500kV and 220kV grid in Hanoi, HCM City and other big and industrial cities and provinces will be developed with modern technology to limit power loss. Lack of supply By 2020, hydropower, renewable and thermal power by gas will only provide 48.3 percent of power demand and fall to 39.9 percent by 2030, but power demand is expected to increase 9 10 percent each year during 2016 -2030. Furthermore, a nuclear power plant in the central province of Ninh Thuan has been stopped by the government, therefore, coal thermal power must be considered for economic efficiency and environmental pollution. "In the context of a 50 percent shortage of power, proper power supply must be carefully chosen," Dr Tran Trong Quyet, vice chair of the Southern Power Association, said. He pointed out that renewable power would ensure environmental protection, but it would require a huge initial investment. "Coal thermal power will require a lot of land, is a big problem for environmental pollution and is a large expenditure, but it still plays a very important role in ensuring national power security," he added. To limit the impact of coal thermal power, Quyet warned that modern technology to deal with coal slag and ensure coal supply must be done carefully. http://english.vov.vn/economy/electricity-sector-urged-to-reduce-power-loss-349979.vov

Getting ready for the age of robots taking over factory jobs 22/May/2017 Intellasia| VOV The prediction of experts at a recent dialogue in Hanoi discussing the fourth industrial revolution is that the factories of tomorrow in Vietnam will be filled with vast armies of robots doing the work once done by humans. Driven by a desire to reduce high labour costs and replace it with inexpensive automation, factories around the globe are already beginning to see a rapid rise in the number of robots on assembly lines, they said. It's a trend most noticeable in China but one that will surely continue to gain ground and take over the industrial and manufacturing landscape of tomorrow, from the emerging economies in Southeast Asia to most the modernised industrial countries such as those in the US and Japan. The point, said one expert, is that one of the comparative advantages of Vietnam is its deep pool of relatively lower labour costs. But with this trend in automation that advantage could likely be wiped out by as early as 2020. One of first unmanned factories in China has reportedly already replaced 600 workers at a mobile phone maker with robots. Out of a total of 660 workers now only 60 jobs remain. That's more than a whopping 90 percent cutback in jobs. Even more startling are the claims by the Chinese mobile phone maker that productivity has increased by 250 percent and product defects have dropped 80 percent. Deputy minister Nguyen Van Thanh of Public Security said this phenomenon has particularly far reaching implications for the clothing, textiles, leather and footwear segments. According to International Labour Organisation figures, Thanh noted that there are 9.2 million Vietnamese workers in these segments and two-thirds of them are at risk of losing their jobs to robots. According to the ILO, jobs for as many as 86 percent of workers in on the clothing segment are threatened, he emphasised. Moreover, the employment of millions of workers in the telecom, banking, insurance and securities segments is threatened as well. Representatives of the Ministry of Labour, Invalids and Social Affairs echoed Thanh's sentiments, noting that robot technology will force many local companies to shutter their doors over the next decade if remedial action isn't successfully undertaken. First, they said, local companies need to focus on increasing labour productivity and automation, particularly in manufacturing. Secondly, they need to raise the investment in human capital to create value. The national plan of Vietnam manufacturing is not to become and stay a low-cost manufacturing hub, which is the low end of the ladder. But rather the end goal is to move up the ladder to high value-added, high-end manufacturing. To transform Vietnam into such a global manufacturing powerhouse in the fourth industrial revolution, Vietnamese factories need to climb the ladder and be at the forefront of automation. Human labour in Vietnam cannot stay as inexpensive as it is today and remain on a level competing with low end rival manufacturing hubs Cambodia, Thailand and Indonesia. Manufacturers in Vietnam must plan to transform their production processes using robotics and automation as well as invest in human capital and innovation on an unprecedented scale. Automation and other innovative technologies must be applied in all manufacturing facilities in the country to maximise efficiency and to carry out every conceivable repetitive task with the end goal of continuously enhancing the quality of products. And through training, said the Ministry representatives, in line with a national strategy, fewer workers can focus on higher value-added elements in the manufacturing process, such as research and development in addition to quality control. As part of the national strategy, manufacturing processes and products will become more technologically advanced with automation playing an all-encompassing role with Vietnam at the vanguard of the fourth industrial revolution. http://english.vov.vn/economy/getting-ready-for-the-age-of-robots-taking-over-factory-jobs-349935.vov

Restructuring SOEs while developing a market economy 22/May/2017 Intellasia| VOV5 Over the past few years, Vietnam has been restructuring its state-owned enterprises (SOEs) in accordance with the market mechanism. A number of enterprises have been equitised, but the equitisation process has been slow and sometimes wasteful. Drastic measures are needed to make it more efficient. Since the renewal process began more than 30 years ago, SOEs have gone through successive periods of restructuring and the number of SOEs in which the state holds 100 percent of the charter capital has dropped from more than 12,000 in the late 1980s to about 620 as of the end of 2015. During the 2011-2015 period, equitisation and divestment retrieved nearly $3.4 billion for the State budget. But the restructuring process has been slow, and the efficiency of SOEs remains low considering the resources they have. That is not to mention that many SOEs have invested outside of their core business, causing waste and inefficiency which has led to capital losses. To address the issue, the Vietnamese government has implemented drastic measures to reorganise and accelerate equitisation of SOEs, with top priority given to improving the capital management of SOEs. The most urgent issue is to choose an appropriate capital management model that keeps the State from having to interfere unduly in the operation of the SOEs. Economist Nguyen Cong Nghiep said, "The model for managing state capital in these enterprises must be appropriate for a market economy. Government intervention into businesses' investment activities needs to be avoided. SOEs currently account for more than 30 percent of national GDP. If the State capital in enterprises is reduced to 10 percent of GDP, management will be simpler." The Vietnamese government is committed to restructuring SOEs for greater efficiency and sustainable development in line with the current international economic integration. To that end, enterprises must be streamlined, productivity improved, costs reduced, and brands built up to increase competitiveness. Nguyen Quang Vinh, deputy Secretary general of the Vietnam Chamber of Commerce and Industry, said, "A sustainable enterprise is sustainable economically, socially, and environmentally. To develop sustainably an enterprise must make a profit, but that profit must be associated with social and environmental progress. A sustainable enterprise should combine technological solutions with stability in social and labour relations." 240 SOEs need to be restructured or equitised between now and 2020. By then, the State will hold 100 percent of charter capital in only 103 SOEs and will make them operate efficiently. http://english.vov.vn/economy/restructuring-soes-while-developing-a-market-economy-349843.vov

VN to facilitate SME growth through funds, incentives 22/May/2017 Intellasia| Bizhub Increased access to funding and new legislations are among the measures being rolled out by the Vietnamese government to support the country's small- and medium-sized enterprises (SMEs). Late last month, the Ministry of Planning and Investment (MPI) announced four preferential loan programmes to be made available to SMEs this year under its SME Development Fund, formed in 2013. Of the VND560 billion (US$24.7 million) set aside for the fund, VND100 billion ($44.1 million) will be extended to companies with a focus on innovation; VND180 billion ($79.4 million) to businesses in the agriculture, forestry and aquaculture sectors; VND180 billion ($79.4 million) to processing and manufacturing firms; and VND100 billion ($44.1 million) to water supply, management and treatment companies. The SMEs will enjoy a 24-month grace period from the time of the original loan approval, though maximum disbursements will vary depending on the programme. The fund aims to fill part of the financing gap left by conventional banks, which have not traditionally extended loans to smaller outfits because of perceived risks, despite these firms contributing roughly 40 per cent to Vietnam's GDP, according to the MPI. Currently, SMEs make up 97 per cent of all companies operating in the Vietnamese economy, and provide employment to more than 50 per cent of the national workforce. Supply chain links While many SMEs will welcome the availability of new lines of credit, the MPI's development fund is limited. Another option for smaller firms is to seek private investment from domestic and foreign companies. Such a route allows enterprises to secure funding by demonstrating viable cash flow and established business connections, rather than having to document hard asset backings, as required by banks. However, the difficulty of achieving such support was brought to light by reports at a seminar hosted by the International Finance Corporation in HCM City last October, which said that only 21 per cent of Vietnamese SMEs are linked with global supply chains. This compares poorly with regional neighbours such as Thailand, where 30 per cent of SMEs have established connections, and Malaysia, at 46 per cent. Virginia Foote, president and CEO of business advisory firm Bay Global Strategies, and board member of the American Chamber of Commerce in Vietnam, echoed this sentiment. "It has been difficult for SMEs to grow business with firms that are 100 per cent foreign-owned, as well as those that operate in industrial parks or manufacturing zones, because smaller firms have struggled to break into the supply chain," she told Oxford Business Group (OBG). Seeking to overcome this difficulty and bolster connections with international markets, around 110 SMEs from Vietnam took part in a conference in Singapore in mid-March, part of a broader effort to seek investment from Vietnam's third-largest foreign investor. Speaking at the event, Nguyen Tien Minh, Vietnam's ambassador to Singapore, said that Vietnamese firms could better serve regional and global markets via business connections with Singapore, which already has more than $38 billion invested locally. Thian Tai Chew, a representative of the Singapore Business Federation, told media at the conference that the Asean region was where Singaporean businesses most wanted to expand their investments, with Vietnam ranking third among South-east Asian nations for targeted investment. Legislating for growth Many of the hardships faced by small businesses in the country could be overcome by a draft law, which was submitted by the MPI in November 2016. Known as the Law on Supporting SMEs, the legislation aims to formalise regulations for smaller companies, as well as their operating environment and support mechanisms. Parliament is expected to vote on the final version of the law later this year. Of the 45 articles contained in the draft, one aims to cut the corporate income tax rate for SMEs by three percentage points to 17 per cent between 2017 and 2020. Some critics have pointed out that this is not a big enough reduction, given that many multinationals are currently subject to a much lower 10 per cent rate on earnings. Nonetheless, Pham Dinh Thi, director of the Tax Policy Department under the Ministry of Finance, said the plan would "ensure that there are thousands of newly established enterprises every year." A proliferation of new small businesses could help offset lower tax earnings and is in line with the government's aim to increase the number of SMEs operating in the country from 600,000 to one million by 2020. http://bizhub.vn/news/vn-to-facilitate-sme-growth-through-funds-incentives_286255.html

CSR holds key to sustainable growth for mining industry 22/May/2017 Intellasia| VNS Sustainability has remained a top priority for the mining industry and the government. The topic has also been much discussed over the years by experts and specialists in the field, including from the Apec Mining Task Force (MTF), which was established in 2007. It was again on the agenda at the Apec Mining Policy public-private dialogue held as part of the second Apec Senior Officials Meeting (SOM 2) in Hanoi recently. One of the questions asked was: Can mining companies change the negative image of their industry as one that leaves social and environmental scars and achieve sustainable growth? The answer is yes if they can communicate the value of mining to targeted communities and optimise socio-economic benefits to boost sustainable community development. One of the ways to do this is through corporate social responsibility (CSR) programmes. The government constantly encourages enterprises to deliver on CSR and make it a key to gain a competitive edge. In his closing speech at the fifth plenary meeting of the 12th Communist Party of Vietnam Central Committee in Hanoi, general Secretary Nguyen Phu Trong had stressed the need to comply with CSR laws. CSR is especially important for mining companies given the industry impacts surroundings and local communities. According to Nguyen Quang Vinh, deputy general secretary of the Vietnam Chamber of Commerce and Industry, CSR programmes are highly beneficial for all companies. If they realise that, then they would be very successful and could achieve sustainable growth, he said. Nguyen Minh Duong, chair of the Vietnam Association of Mineral Processing, said no company can survive without fulfilling its responsibilities to the local community. After realising the importance of CSR, some companies have begun to engage in community development activities. Luu Ngoc Anh of Vietnam Apatit Limited Company said during its 60 years of operation his company has contributed billions of Dong to build new schools and participated in building new-style rural areas. Nguyen Van Chau, deputy director of Bim Son Cement Co, said his company always tries to give back to the community and pays taxes and fees. Another example is Masan Resources which owns the polymetallic Nui Phao Mine in Thai Nguyen Province's Dai Tu District. The mine, which has one of the world's largest identified tungsten reserves of 66 million tonnes, was visited by 21 Apec delegates, including some from the Apec mining task force, after the dialogue meeting. The delegates were impressed most by what Masan has done for the local community. It has provided jobs to people whose lands were acquired. They in fact account for 56 per cent of the company's employees, while nearly 20 per cent are from six ethnic minorities. Vu Hong, deputy general director of Masan Resources, said the company always prioritises locals when hiring staff. "We are committed to providing vocational training to local people." He added that 230 people from families whose lands had been acquired had been trained for 18 months and paid $150 per month during the training. Masan has the highest rate of women employees in the mining sector: 24 per cent. "This is quite high and surprising to me because even in developed countries like Canada and Australia, this rate is usually below 20 per cent," an Apec delegate from the Philippines, who is also a researcher in the mining sector, said during the site visit. The company has established an economic restoration programme to create livelihoods for local people. Under it, six enterprises and cooperatives have been set up, including a packaging firm by Dinh Thi Hai Thuy, a former Nui Phao employee. Last year, her firm, which sells packaging to six mines in the country and exports to Japan and Korea, earned profits of VND9 billion ($396,500). It employs 90 workers. A Papuan delegate was very impressed by her company "This is more than I expected. The size of the business will have a big and positive impact on the community." http://vietnamnews.vn/economy/376695/csr-holds-key-to-sustainable-growth-for-mining- industry.html#6bf501uftvtDEeSB.97

RCEP ministers celebrate progress 23/May/2017 Intellasia| VNS At the third Intersessional ministerial Meeting of the Regional Comprehensive Economic Partnership (RCEP) held on Monday in Hanoi, participants discussed issues such as goods, services, investments and rules in RCEP negotiations, in hope of finalising the agreement by the end of the year. Senior officials and trade representatives from 16 RCEP members voiced their unanimous agreement on the RCEP's potential of bridging economies, creating favourable conditions for interregional goods and facilitating service trade flows. Delivering the opening speech at the meeting, minister of Industry and Trade Tran Tuan Anh affirmed that despite growing trade protectionism, free trade is possible on the basis of the comprehensive balance between the RCEP's negotiated areas of interest. "In the context that protectionism is emerging in a number of major economies in the world, we believe that the conclusion of the RCEP agreement negotiation will convey a clear and consistent message of the opening and economic integration enhancing policy of the countries in the region," said Tuan Anh. Ministers attending the meeting considered the RCEP conclusion to be a concrete and defining achievement for open trade policies and economic integration progress of regional countries, which ultimately will help increase the investment attractiveness of RCEP nations. This trade pact will allow for the construction of a comprehensive, multilevel connectivity mechanism that will bring more tangible benefits to regional enterprises, especially micro, small and medium sized companies that account for more than 90 per cent of firms in the region. In accordance with Tuan Anh, China's minister of Commerce Zhong Shan told Xinhua that his government has proposed to support Asean countries' efforts to expand the RCEP consensus, while working together to conclude the negotiations as soon as possible with respect to the demands of all parties. However, questions were still raised regarding the difference in level of economic development amongst member countries, which require practical and flexible approaches such as concurrent bilateral trade negotiations between countries. This should help RCEP members to commit to opening their own markets without being compromised by foreign competition. Officials suggested they all work together, focusing on issues such as tariff reduction, service coverage, the digital economy and freedom of movement, as flexibility and gradualism are the selling points of the RCEP. After the US announced its withdrawal from the Trans Pacific Partnership (TPP) Agreement, the RCEP talks, which began in 2012, have been given new motivation to push through toward the common goal of regional economies building a powerfully connected Asia Pacific. It expects to create a free trade area of more than 3.5 billion people, bringing together 10 members of Asean and their partners, including Japan, South Korea, China, India, Australia and New Zealand. http://vietnamnews.vn/economy/376897/rcep-ministers-celebrate-progress.html

Vietnam backs finalisation of RCEP in 2017 23/May/2017 Intellasia| VOV Speeding up negotiations to finalise the Regional Comprehensive Economic Partnership (RCEP) was the aim of the third Inter-sessional ministerial Meeting of the Regional Comprehensive Economic Partnership (RCEP) on May 22 in Hanoi. The event was attended by representatives from the 10 Asean nations and their partners, including Australia, China, South Korea, India, Japan, and New Zealand. Minister of Industry and Trade Tran Tuan Anh expressed his belief that the agreement will enable micro, small, and medium regional businesses to operate more efficiently, approach new resources, make the best of their strengths, and better involve in the regional value chain. The minister said Vietnam supports the completion of RCEP negotiations this year and suggested that related parties promote bilateral negotiations on market opening. At the meeting, participants agreed that the finalisation of RCEP negotiations will give a clear message on door-opening policy and economic integration of regional countries, thus helping increase the attraction of RECP economies. http://english.vov.vn/economy/vietnam-backs-finalisation-of-rcep-in-2017-350055.vov

Apec ministers pledge free trade 23/May/2017 Intellasia| VNS Trade representatives of the 21 Pacific Rim countries, meeting this weekend in Hanoi, reaffirmed their commitment to support free and open trade and pledged to fight all forms of protectionism. The trade representatives agreed to make concrete actions to foster the leading role of the Asia-Pacific Economic Cooperation (Apec) forum in promoting global economic growth and regional economic integration for the benefits of people. Taking into account the diverse opinions at the meeting, Apec member economies underscored the importance of ensuring the effective functioning of a rules-based, transparent, non-discriminatory multilateral trading system as embodied in the World Trade Organisation (WTO). "We reaffirm the importance of the WTO's trade monitoring work, which is essential to the functioning of the multilateral trading system, by achieving greater transparency in, and understanding of the trade policies and practices of members," the closing statement of the two-day meeting said. As chair of the meeting, Vietnamese minister of Industry and Trade Tran Tuan Anh said Vietnam, as host of Apec 2017 events, "continues to affirm its determination of deepening international integration, considering the Asia-Pacific region and the regional cooperation mechanism such as Apec Forum a focus of the country's foreign policy." Vietnam's support for Apec and open trade was endorsed by the country's prime minister, Nguyen Xuan Phuc, as he addressed the meeting on the first day. "Apec should step up economic and technical cooperation, experience and information sharing during the process of policy-making and implementation of cooperation programmes to enhance the effectiveness and distinguish Apec cooperation from that of the other organisations and forums in the region and the world," PM Phuc said. He also called on member economies to unite and build trust, political determination and co-ordination to ensure a peaceful environment and security to safeguard the safety for investment and the flows of goods in the region. Fighting protectionism The meeting agreed the global economy is gaining momentum but noted risks, such as tighter global financial conditions and weak productivity that continue to drag on sustainable and inclusive growth. Moreover, in some member economies there are growing doubt about the benefits of globalisation and free trade, spurring protectionist trends that could have strong impacts on global economic recovery and integration, the statement said. "We reaffirm our commitment to keep our markets open and to fight against all forms of protectionism by reaffirming our pledge against protectionism through a standstill commitment that we agreed to extend until the end of 2020 and to roll back protectionist and trade-distorting measures," the statement of the chair said. Chinese vice minister of Commerce Wang Shou Wen said China committed to supporting a global multilateral trade system and making joint efforts to prevent protectionism and reducing trade risk. "China attaches importance to trade growth... We think multilateral trading system is a very effective tool to mitigate risks associated with trade," Wang said. With a combined population of over 2.8 billion people, about 40 per cent of the world population, Apec member economies have significantly expanded and account for roughly 60 per cent of the world GDP and 49 per cent of global trade. Of note, the average regional tariff has been reduced from 17 per cent since its inception in 1989 to 5.5 per cent in 2016, as incomes and living standards have been improved for a large proportion of the region's population. Vietnam officially joined Apec in 1998. Since then, Apec has played an increasingly important role in the country's economic development. Apec member economies have contributed about 78 per cent of the total FDI inflows to Vietnam, 75 per cent of total merchandise trade and 79 per cent of the total number of tourists to the country. Additionally, 13 Apec members have become Vietnam's strategic and comprehensive partners. http://bizhub.vn/news/apec-ministers-pledge-free-trade_286277.html

VN vows to boost Pacific trade 23/May/2017 Intellasia| VNS A seminar "The Pacific Alliance (PA) and Vietnam in the global context" was held in Hanoi on Monday, aiming to support Vietnam's role as the Asean co-ordinator with the alliance. The event also looked to promote cooperation, trade and investment opportunities between the PA and Vietnam. The Pacific Alliance, established in 2011, is a trade bloc comprised of Chile, Columbia, Mexico and Peru. It aims to move towards free movement of goods, services, resources and people; driving growth of the members' economies. Vu Quang Minh, assistant minister of foreign affairs, said that economic and trade relations between Vietnam and the PA's members had increased, with an impressive average annual growth rate of 15-20 per cent. In 2016, trade turnover of Vietnam and the PA reached more than $7 billion, accounting for 50 per cent of the country's total trade volume with Latin America. Vietnam and PA countries also cooperate in fields such as science and technology, climate change, agricultural development, animal husbandry, aquaculture, tourism, public transport and infrastructure. As a co-ordinator between Asean and the Pacific Alliance in 2017, Vietnam agreed to work with Asean and PA members to carry out activities listed in a framework document between the two groups, Minh added. Dinh Xuan Toan, chair of Rabomark a Vietnamese quinoa importer, highlighted the benefits working with the PA brings to local enterprises, for example, tariff cuts of 92 per cent in some cases and easy access to information on suppliers. Vietnam's telecommunications firms also have big opportunities in the PA and Peru in particular through working with big local firms. "Latin America is a potential market for Viettel on the way to reach further, especially in the fierce competition in Peru's telecommunications industry," said Nguyen Viet Dung, deputy general director of Viettel Global Investment Joint Stock Company at the event. Dung said Viettel had 2.5 million subscribers in Peru after two years of operation. In 2016, Viettel accounted for more than 10 per cent of market share in Peru, a year-on-year rise of 7 per cent. Viettel proposed Peru's government and PA authorities support the company's projects with policies, procedures and provide appropriate payment methods for foreign enterprises, Dung said. The event was attended by high-ranking officials from Chile, Columbia, Mexico, Peru and Vietnam, embassies' representatives and Vietnamese enterprises interested in doing business in Latin America. The seminar is part of the Pacific Alliance week held in Hanoi from May 22 to 28. http://vietnamnews.vn/economy/376871/vn-vows-to-boost-pacific-trade.html

In Vietnam, China's favoured trade deal in focus at Asian meeting 23/May/2017 Intellasia| Vnexpress The Regional Comprehensive Economic Partnership 'is the biggest trade agreement being negotiated at the moment.' Disagreements between Asian countries over a China-backed free trade deal surfaced at talks on Monday, raising questions over a target for concluding negotiations by the end of the year. The Regional Comprehensive Economic Partnership (RCEP) would create a free trade area of more than 3.5 billion people, bringing together China, India, Japan, South Korea, Australia and New Zealand as well as Southeast Asian nations. The RCEP talks, which began in 2012, have been given new impetus by the US withdrawal from the Trans-Pacific Partnership (TPP) Agreement. But officials involved in the talks say the target to complete the discussion stage by end of the year may be hard to meet given disagreements over several issues. India in particular is reluctant to give up on tariffs, they say. "They are concerned that major tariff elimination will cut revenue and their competitive position, especially against China," said one official who did not want to be identified as the talks were private. Another official also said India's position posed the biggest challenge in Monday's ministerial talks. The main focus of RCEP is reducing tariffs although not as many would be cut to zero as under the TPP agreement. Coverage of services and the digital economy are more modest than for the other agreement and it would have no protection for labour rights or the environment. Moreover, while it might have provisions for greater freedom of movement, this is one of the potential sticking points in discussions. "We are making progress but there's still a long way to go," New Zealand Trade minister Todd McClay told Reuters. "There is a renewed desire to find a way to a high quality outcome. But it's going to take a lot of hard work to get it done by the end of the year." Monday's meeting in Hanoi followed heated discussions there at the weekend at the first gathering of trade ministers from Asia Pacific Economic Cooperation (Apec) countries since US President Donald Trump's switch to an "America First" agenda. Apec countries failed to come out with their usual joint statement after the United States rejected language on fighting protectionism which Asian countries wanted to include. Members of the TPP trade deal, which does not include China, agreed on the sidelines of the meeting to pursue it despite Trump's decision to abandon the agreement in favour of bilateral arrangements with Asian countries. The RCEP and TPP trade deals are not mutually exclusive and some countries would be members of both. But the US withdrawal has put major doubts over the future of the TPP agreement. RCEP, on the other hand, benefits from the backing of China, whose regional dominance has gained greater momentum with the policy shift in the United States and its own Belt and Road initiative to extend its global influence. China has increasingly positioned itself as a global free trade champion. "We are at the stage where it has become important for all of us to show political willingness to move RCEP discussions forward especially in light of the trend in some parts of the world where the threat of protectionism is really considerable," Philippines trade minister Ramon Lopez said. http://e.vnexpress.net/news/business/in-vietnam-china-s-favoured-trade-deal-in-focus-at-asian-meeting- 3588356.html

TPP members promise to keep trade deal alive 23/May/2017 Intellasia| VNS Eleven signatory countries of Trans-Pacific Partnership (TPP) have shown their unity in pursuing the trade deal without the United States. The United States pulled out of the TPP frequently called a "21st century trade agreement" soon after US President Donald Trump took office in January. Without the United States, 11 countries remain in the trade agreement including Japan, Australia, Canada, Brunei Darussalam, Chile, Mexico, New Zealand, Malaysia, Peru, Singapore and Vietnam. Meeting on the sidelines of the Apec ministers Responsible for Trade Meeting (MRT) in Hanoi on Sunday, the 11 remaining nations agreed to seek ways to move forward with the free trade pact without the United States. The meeting reaffirmed the balanced outcome and the strategic and economic significance of the TPP and highlighted its principles and high standards as a way to promote regional economic integration and contribute positively to the economic growth prospects of its member countries. "The ministers agreed on the value of realising the TPP's benefits and to that end, they agreed to launch a process to assess options to bring the comprehensive, high quality agreement into force expeditiously, including how to facilitate membership for the original signatories," a joint statement after the meeting said. Minister of Industry and Trade Tran Tuan Anh said Vietnam maintained the standpoint that TPP is a free trade pact with high standards and high levels of commitment which would benefit economic and trade growth of both member states and global trade. "It is a pity that a country won't participate in the TPP process because it will affect the balanced outcomes of all nations involved in the negotiation process, as well as the validity and enforcement of the agreement," the minister told reporters after the meeting. He said the remaining nations had continued interests in pursuing the trade pact but cautioned that the next steps must safeguard balanced and harmonised benefits of all participating countries. The minister said this would be an open agreement that would enable other countries to participate at appropriate times and under conditions that can preserve the high standards of the TPP, including the return of the United States. New US Trade Representative Robert Lighthiser said the United States would not consider the return and confirmed bilateral negotiations were better for the United States. But he reaffirmed the country would continue to cooperate with TPP member economies on a bilateral basis. "We're willing to negotiate bilateral agreements with other partners in the world," Lighthiser said, but pledged the United States' commitment to the Asia-Pacific region and said regional trade played an important role in US trade policy. Commenting on the prospects for the TPP, New Zealand minister of Industry and Trade Todd Michael McClay expressed hope that the deal would be deployed, bringing benefits to businesses and people. Twelve countries that border the Pacific Ocean signed up to the TPP in February 2016, representing 40 per cent of the global economy. The pact aimed at deepening economic ties between these nations, cutting tariffs and promoting trade to boost growth. After the United States left the agreement, only Japan and New Zealand have ratified the deal. Following the meeting in Hanoi, eleven countries agreed to engage in work to prepare an assessment of options before they meet on the sidelines of the Apec Economic Leaders Meeting in November in Da Nang. http://vietnamnews.vn/economy/376817/tpp-members-promise-to-keep-trade-deal- alive.html#KxEeWHJDc3gVLfUR.97

In Vietnam, US trade rep says no return to TPP deal and wants bilateral deals in Asia 23/May/2017 Intellasia| Vnexpress 'The US pulled out of the TPP and it's not going to change that decision. That does not mean we will not engage in this region.' US Trade Representative Robert Lighthiser said on Sunday that the United States would not return to the Trans-Pacific Partnership trade deal after 11 remaining countries earlier agreed to look at how they could move ahead without it. He said the US favoured bilateral over multilateral trade deals and he expected a series of agreements in the region, where he is attending a meeting of ministers from Asia-Pacific Economic Cooperation (Apec) countries. "The United States pulled out of the TPP and it's not going to change that decision. That does not mean we will not engage in this region," Lighthiser told a news conference in Hanoi, Vietnam. "The president made a decision, that I certainly agree with, that bilateral negotiations are better for the United States than multilateral negotiations." Asked why the United States was against using language opposing protectionism, he said it favoured free trade, but would defend against unfair trade. http://e.vnexpress.net/news/business/in-vietnam-us-trade-rep-says-no-return-to-tpp-deal-and-wants- bilateral-deals-in-asia-3587960.html

US and Pacific Rim countries at odds in heated trade meeting in Vietnam 23/May/2017 Intellasia| Vnexpress One of the biggest challenges is keeping on board Vietnam and Malaysia, which promised to make major reforms. Japan and other members of the Trans-Pacific Partnership agreed on Sunday to pursue their trade deal without the United States, as the Trump administration's "America First" policy created tension at a meeting of Asia-Pacific countries. Turmoil over global trade negotiations was laid bare at a meeting of the Asia-Pacific Economic Cooperation (Apec) forum, which failed to agree on its usual joint statement after US opposition to wording on free trade and fighting protectionism. The meeting in Hanoi, Vietnam, was the biggest global trade gathering since US President Donald Trump upended the old order, arguing that multilateral free-trade agreements were costing American jobs and that he wanted to cut new deals. On the sidelines of the Asia-Pacific meeting, the 11 remaining countries of the TPP agreed to explore how they could move ahead without erstwhile leader the US partly in the hope that Washington would reconsider leaving. New US Trade Representative Robert Lighthiser said there was no way back. "I believe at some point there will be a series of bilateral agreements with partners in this part of the world," the 69-year-old Reagan-era trade negotiator told a news conference. "Bilateral negotiations are better for the United States." Although the TPP members kept the trade agreement alive, they fell short of a wholehearted commitment to advance immediately with a deal that members also see as a way to contain an increasingly dominant China. "We're focused on how we can move ahead with 11 countries," New Zealand Trade minister Todd McClay said. One of the biggest challenges is keeping on board Vietnam and Malaysia, which signed up for the deal and promised to make major reforms largely to get better US market access. "We will need to ensure that our interests remain protected and the benefits derived from it still outweigh the costs," Malaysian Trade minister Mustapa Mohamed said. The volume of trade between the remaining countries is barely a quarter of the level it would have been if the United States had remained in the TPP. Officials from TPP countries will meet again in Japan in July and bring proposals in November, McClay said. Protectionism Fears of protectionism have grown under the Trump presidency and the failure of the Asia-Pacific countries to agree on their usual joint statement did nothing to quell them. The US was against wording agreed to by the other 20 Apec countries that supported free trade and opposed protectionism, officials at the talks said. A statement from the Vietnamese chair of the talks gave a "commitment to promote trade and investment liberalisation". But the only announcement from all the members was an "Actions Statement" that contained no such commitments. It mentioned topics such as sustainable growth, small businesses and technical cooperation. The wrangling is similar to what has been seen at gatherings of Group of 20 and Group of Seven financial leaders, where statements were toned down to fit with the new US agenda. Explaining US opposition to using the word protectionism, Lighthiser said the term was being confused with the steps that were really needed to promote free trade. "Our view is that we want free trade, we want fair trade, we want a system that leads to greater market efficiency throughout the world," he said. On the sidelines of the Apec meeting, Lighthiser held a series of one-on-one meetings with key partners. Those included China as well as Canada and Mexico, members of the North American Free Trade Agreement which Trump seeks to renegotiate. China, putting itself forward as a global free trade champion in light of the US shift, is pushing an agreement to encompass the vast majority of Asian economies. The Asia trade deal it favours is called the Regional Comprehensive Economic Partnership. http://e.vnexpress.net/news/business/us-and-pacific-rim-countries-at-odds-in-heated-trade-meeting-in- vietnam-3587972.html

Seminar aims to enhance Asean-Pacific Alliance links 23/May/2017 Intellasia| VOV A seminar was held on May 22 in Hanoi to seek ways to support Vietnam's role as coordinator of Asean's relations with the Pacific Alliance (PA). Those in attendance included senior officials of Vietnam and PA members, including Chile, Colombia, Mexico and Peru, along with representatives of 49 embassies and Vietnamese firms, which are interested in Latin American markets. The seminar was part of the PA Week in Hanoi from May 22-28, with a string of activities such as gastronomy, a film festival and a photo and product exhibition. Vu Quang Minh, Assistant the Foreign minister of Vietnam, praised the PA's role in the recent development of the Asian-Pacific region. Established in 2011, the alliance has grown rapidly and impressed the whole world with its regional connectivity process in a broad variety of fields, he said. Minh said economic and trade links between Vietnam and the four PA members have kept growing by 15-20 each year, exceeding $7 billion in 2016 accounting for 50 percent of Vietnam's total trade with the Latin American region. The Southeast Asian nation and the PA countries have also cooperated in many other spheres such as science-technology, response to climate change, social welfares, agriculture, tourism, public transport, urban infrastructure development, culture and education. In his opening speech, Secretary-General of the Pacific Economic Cooperation Council (PECC) Eduardo Pedrosa applauded the goals of the PA, including building a deeply integrated region; promoting growth, development and competitiveness of the member economies; and forming a forum on political cooperation as well as economic and trade integration. At the seminar, participants also touched upon various issues relating to cooperation areas in order to enhance the friendship, cultural exchanges and trade ties between Vietnam and the PA. http://english.vov.vn/economy/seminar-aims-to-enhance-aseanpacific-alliance-links-350052.vov

What has Vietnam gained after 10 years of WTO membership? 23/May/2017 Intellasia| Vietnamnet While foreign experts say that Vietnam gained more than it lost after joining the World Trade Organisation (WTO), some Vietnamese experts say the opposite. Speaking to Tri Thuc Tre on May 15, Pascal Lamy, former director general of WTO, stuck to his opinion that Vietnam has gained more than it lost as a WTO member. Vietnam has been a member of WTO for the last 10 years, during which it has gained great achievements. Lamy said that Vietnam is a success story as it can fully exploit its comparative advantages. The advantages, as Lamy pointed out, are the high quality of the labour force and productivity. The industries where Vietnam has advantages include electronics, textile & garments, and farm produce. Vietnam has been developing strongly thanks to expansion of relationships and reform policies, while the market opening has brought big benefits. Looking back on Lamy's comments in the past to the local press in 2007, when Vietnam officially because a WTO member, and in 2010, he has had a consistent opinion. Huynh The Du from the Fulbright Economics Teaching Programme (FETP), however, commented that in the last 10 years, Vietnam has lost in the home market. The expert thinks that Vietnam has suffered from the so-called Dutch disease. Vietnam does not lack capital as a huge amount of money has been pumped into the economy, but the money has been flowing into property speculation, thus distorting the national economy. The view has been advocated by other experts, including Vo Dai Luoc, former head of the Vietnam Economics Institute. Imports/exports have been increasing but the achievements belong to foreign invested enterprises, not Vietnamese. "Though exports from Vietnam have higher technology content and the products are more diverse, the products' added value remains modest," said Vo Tri Thanh from the Central Institute of Economic Management (CIEM). Regarding the trade deficit, Thanh said the situation has improved after 10 years of WTO membership, but the ratio of trade deficit to GDP and on total import/export turnover remains low. While other WTO member countries can take full advantage of WTO membership to export their goods to Vietnam, Vietnam still cannot fully exploit opportunities to export products to other WTO member countries. "The WTO member status has exposed Vietnam's weak points," Thanh commented. Meanwhile, Le Huy Khoi from the Trade Research Institute, said Vietnam's average GDP growth rate in the last 10 years was lower than that in the pre-WTO period. http://english.vietnamnet.vn/fms/business/178672/what-has-vietnam-gained-after-10-years-of-wto- membership-.html

Vietnam grows strongly after 10 years of joining WTO 23/May/2017 Intellasia| VNA Vietnam has been developing strongly after joining the World Trade Organisation (WTO) 10 years ago thanks to expansion of relations and reform policies. The admission to the WTO opened a wide door for the Southeast Asian country to enter the global playground, experts said. According to the Ministry of Industry and Trade, Vietnam has maintained an annual average economic growth of 6.29 percent since 2007 despite impacts from the global financial and public debt crises. Vietnam's per capita gross domestic product (GDP) increased from just 730 USD in 2006 to 2,228 USD in 2015 and reached 2,445 USD in 2016. The economic structure has shifted towards increasing the proportion of industry and services while reducing the ratio of agriculture. Notably, Vietnam has recorded an annual export growth of 12-14 percent since it became a member of the WTO. In 2016, the country's export turnover increased by 3.5 times against 2006. Moreover, after 10-year membership, Vietnam has attracted over 22,000 foreign direct investment (FDI) projects with a total registered capital of nearly 300 billion USD. Particularly, many global leading groups such as Samsung, LG, Toyota, Honda and Canon have selected Vietnam as a manufacturing base. The country has already signed 12 bilateral and multilateral free trade agreements (FTA) and concluded negotiations on the EU-Vietnam Free Trade Agreement (EUFTA) and the Vietnam-Korea Free Trade Agreement (VKFTA), including new-generation pacts with high commitments such as the Trans-Pacific Partnership (TPP) Agreement. Vietnam is also forging ahead with negotiations on four other FTAs, including the Regional Comprehensive Economic Partnership (RCEP), which is expected to become a century FTA stipulating all trade activities of the whole Asean region. Such agreements are opening up opportunities for Vietnam to develop stronger and have free trade relations with 55 global partners, including those in G7 and 15 out of the G20 members. Former deputy minister of Industry and Trade Luong Van Tu, who was once WTO chief negotiator, said after joining the WTO, Vietnamese businesses have seized opportunities as the flow of FDI into the country surged. They have also accumulated experience and received technologies and management skills from big companies of developed nations such as the US and Japan. The competition pressure also helped domestic enterprises grow stronger. Many firms have proactively sought markets and boost linkages foreign partners to promote exports, he added. Chair of the Board of directors of Tien Phong Plastic Joint Stock Company Tran Dang Phuc said to integrate deeper into the international market, domestic businesses need to draw up investment strategies, develop brand names, competitive edge and production equipment while applying energy-saving and environmentally friendly technologies. Former WTO director-General Pascal Lamy said Vietnam is a successful example of international integration as the country has taken advantages of human resources and labour productivity. Its dominant sectors include electronics, garment-textiles and farm produce. Minister of Industry and Trade Tran Tuan Anh said the 10-year WTO membership is not a long journey but it has brought both opportunities and challenges to Vietnamese enterprises. The proportion of trade and services is kept at 40-45 percent of the nation's GDP, he noted. The admission to the WTO not only marked Vietnam's significant development in global economic integration but also created a foundation for the country to obtain sustainable socio-economic development, he added. Vice President of the Central Institute for Economic Management Vo Tri Thanh said Vietnam needs to adopt policies to help businesses increase competitiveness edge and to pay attention to the supporting industry. To continue developing sustainably, experts said Vietnam also needs breakthrough reforms, especially addressing shortcomings in the one-door mechanism and reforming the State administrative apparatus. In addition, the country is also advised to improve the efficiency of the market inspection and control, and building a healthy business environment. The experts also recommended Vietnam to restructure businesses, developing infrastructure services and green logistics as well as increasing investment in science-technology to create products with high added value for exports. http://en.vietnamplus.vn/vietnam-grows-strongly-after-10-years-of-joining-wto/112089.vnp

Moody's: Strong FDI will continue to help Vietnam diversify its economy and contribute to stabilising the government's debt burden 23/May/2017 Intellasia| Moodys Moody's Investors Service says that Vietnam's B1 rating and positive outlook reflect its expectation that strong foreign direct investment (FDI) inflows will continue to diversify the country's economy when compared with similarly rated peers. Moody's further notes that robust GDP growth continues, along with macroeconomic and external stability, a situation which is favourable for the stabilisation of the government's debt burden. Vietnam's B1 issuer rating incorporates credit strengths, which include the size and diversity of the country's economy relative to similarly rated peers. It has also improved its cross-country assessments of institutional quality over the past four years, particularly in government effectiveness, albeit from low levels. Moody's conclusions are contained in its just-released annual credit analysis of the sovereign, "Government of Vietnam B1 Positive". The report elaborates on Vietnam's credit profile in terms of Economic Strength,, High (-); Institutional Strength, Low (+); Fiscal Strength, Moderate (-); and Susceptibility to Event Risk, High. These are the four main analytic factors in Moody's Sovereign Bond Rating Methodology. However, the banking system remains an important rating constraint, and the recovery of domestic demand since 2015 has coincided with rapid credit growth, challenging a system still encumbered by poor capital adequacy and legacy non-performing loans. Moody's considers that Vietnam's advances in competitiveness and reforms have in part been driven by the country's entry into several free-trade agreements in recent years. The economy has notable strengths in a range of sectors, including soft commodities; traditional labour-intensive manufacturing such as shoes and textiles; and more recently, moderately high value-added manufacturing, which includes mobile phones and other electronics. With economic growth, we project it to increase in coming quarters with full-year 2017 real GDP growth at 6.5 percent, slightly below the government's target of 6.7 percent. The improvement in the external environment has provided a boost for exports, which rose 16.4 percent year-on-year in US dollar terms through the first four months of the year, up from 9.1 percent for the full year in 2016. The country's improving competitiveness and reform impetus have as indicated supported net FDI inflows, which averaged 5.2 percent of GDP between 2014 and 2016, higher than the B1-rated median of 3.6 percent. A risk to Vietnam's outlook for investment, exports, and GDP growth is the rising protectionism from key trading partners; a risk that affects the global trading system more generally. A shift in US policies towards protectionism that significantly and durably lowers growth in global trade would affect Vietnam, given the economy's reliance on trade. Vietnam's 'Moderate -' Fiscal Strength incorporates a debt burden at around 50 percent-55 percent of GDP and high debt affordability. It also incorporates the deterioration in these metrics in recent years. Deficit consolidation is likely to progress only incrementally over the medium term, but sufficiently to prevent a further increase in government debt from the 2016 level. Public debt, which includes debt guaranteed by the government, reached 63.7 percent of GDP in 2016, approaching the government's own 65 percent limit, prompting it to slow the issuance of new guarantees. Finally, Vietnam's 'High' Susceptibility to event risk continues to be driven by banking sector risk, which is considered the most severe among rated countries in the Asia Pacific. However, government liquidity risks are 'Low' because of moderate gross borrowing requirements and relatively low exposure to non-resident ownership of its market debt. Moreover, the government has established access to international markets, having issued several US dollar-denominated bonds over the past decade. https://www.moodys.com/research/Moodys-Strong-FDI-will-continue-to-help-Vietnam-diversify-its-- PR_367089?WT.mc_id=AM~UmV1dGVyc05ld3NfU0JfUmF0aW5nIE5ld3NfQWxs~20170522_PR_3670 89

FDI drives imports of capital goods to record high levels 23/May/2017 Intellasia| VOV The growth in imports of capital goods in the early months of 2017 has outpaced the figures for last year by as much as 40 percent, according to the latest statistics from the general Department of Vietnam Customs. The rise in imports of machinery, equipment, tools and spare parts used in the production of other commercial goods is predominantly driven by foreign sector direct investment in manufacturing, said Department officials. Imports of capital goods accounted for 18 percent of the total imports of the country in the four months leading up to May. The top three suppliers of such goods in descending order of magnitude of dollars were the Republic of Korea, China and Japan. The continued foreign sector investment in manufacturing and capital goods bodes well for overall gross domestic product growth throughout the remainder of the year, noted Department officials. http://english.vov.vn/economy/fdi-drives-imports-of-capital-goods-to-record-high-levels-350028.vov

Vietnamese lawmaker worries growth obsession will foster mining-dependent economy 23/May/2017 Intellasia| Vnexpress The government plans to maintain GDP growth this year by excavating more crude oil. The Vietnamese government expects to hit its growth target for the year despite a slow first quarter by excavating more crude oil, but lawmakers said this would go against a bigger plan to build a sustainable economy which relies less on mining. Deputy prime minister Truong Hoa Binh said at the legislative National Assembly's month-long session which started on Monday that it is determined to hit its GDP growth target of 6.7 percent this year, despite a three-year low of 5.1 percent growth in the first quarter. But Vu Hong Thanh, chair of the assembly's Economic Committee, said that the target will be hard to meet as the economy will have to expand at more than 7 percent over the next three quarters, while a more realistic rate is 6.3-6.5 percent. The government plans to boost growth by increasing crude oil excavation, but Thanh said one reason for the first quarter slowdown was that the economy relied too much on mining and had been unable to identify a fresh growth injection. He said the government needs to "carefully consider" the crude oil plan. Vietnam resorted to the same measure in 2015 when it recorded its highest GDP growth in five years at 6.7 percent. But oil failed to work its magic in 2016 amid global price drops. The economy expanded an estimated 6.21 percent last year, its first slowdown in four years, with the mining sector falling 4 percent on low coal and crude oil prices. Thanh said that economic growth still depends largely on the FDI sector and a small number of conglomerates, which does not guarantee sustainable growth. His committee suggested that it's time the government focuses more on reforming the essence of the economy to ensure stable growth rather than maintaining growth by any means necessary. He also asked the government to watch out for another property bubble, given an 84 percent increase in the number of new businesses opening in 2016. http://e.vnexpress.net/news/business/economy/vietnamese-lawmaker-worries-growth-obsession-will- foster-mining-dependent-economy-3588570.html

Vietnam's 2015 budget overspend tops $3.88bn: audit 23/May/2017 Intellasia| Tuoitre News The Vietnamese government's total expenditure in 2015 was nearly $4 billion more than budget estimates, a state audit has revealed. Last year, the lawmaking National Assembly approved a budget spend of VND1,177 trillion ($51.85 billion), but real government spending actually reached VND1,265 trillion ($55.73 billion), according to the audit's report. The VND88 trillion ($3.88 billion) overspend was attributed to improper budget allocations, haphazard spending and poor management of state capital, the state's auditor said. Ministries, industries and local administrations allocated a combined VND308,853 billion ($13.61 billion) on investment projects, nearly $4 billion more than the original approved estimate of only VND225 trillion ($9.91 billion), according to the report. The assessment, evaluation and approval of these state-invested projects, however, have been poorly executed, leading to excessive allocations of state capital. Some projects had even prepared investment estimates that were higher than the approved budget. For instance, while the project to build new headquarters for the Ministry of Foreign Affairs was initially allocated VND4,022 billion ($177.18 million), the total estimate for construction alone began as high as VND5,952 billion ($262.2 million). After auditing the 1,228 state projects proposed by ministries and central and local agencies, the state's audit suggested that budget estimates for these plans be cut by VND12,399 billion ($546.21 million). A further budget overspend was attributed to profligate spending by local administrations on public assets, such as government cars. For example, the administration of the Central Highlands province of Dak Lak was singled out for its purchase of eight new cars worth a total of VND9 billion ($396,476). The government and state agencies have also overspent on 'regular spending,' or expenditure allowed for essential activities and operations. The approved budget for regular spending by the National Assembly in 2015 was VND777 trillion ($34.23 billion) but the real outgoings were VND788.5 trillion ($34.74 billion). http://tuoitrenews.vn/business/41100/vietnams-2015-budget-overspend-tops-388bn-audit

SOEs told to publicly disclose business information 23/May/2017 Intellasia| VNS The HCM City People's Committee has ordered all State-owned enterprises (SOEs) with 100 per cent charter capital owned by the State to fully publish information about their activities. The request applies to all controlling, parent-subsidiary and sole-member limited liability companies in the city. The move by the city was part of deputy prime minister Vưong Dinh Hue's request to ministries, departments and local authorities to instruct businesses to strictly follow government Decree 81 dated September 2015 on information disclosure for State enterprises. Decree 81 stated that companies must disclose information on: their development strategies; five-year production and business plans; annual production and business plans; annual production and business reports and reports on the previous three years; implementation of CSR, or corporate social responsibility, if appropriate; annual renewal and restructuring; and administration and organisation, as well as financial reports and reports on salary and bonuses. The information will be disclosed on websites of enterprises and agencies representing the state owner and on the enterprise information portal of the Ministry of Planning and Investment (MPI). According to a recent report by MPI, only 241 out of 620 SOEs have sent their reports to the ministry to publicise their information on MPI's business information portal, accounting for 38.8 per cent of the total. http://vietnamnews.vn/economy/376854/soes-told-to-publicly-disclose-business-information.html

Vietnam stands firm with full-year growth target of 6.7pct 23/May/2017 Intellasia| DTI News The Vietnamese government will not revise its growth target for 2017, remaining determined to ensure the economy will grow by 6.7 percent, deputy prime minister Truong Hoa Binh told the National Assembly on May 22. According to the government report, the GDP target must be achieved to ensure other macroeconomic indicators such as budget, public debt, export and import, employment and income are maintained. In addition, a growth rate of 6.7 percent for 2017 will create the foundation for sustainable growth in the following years whilst guaranteeing the growth target of 6.5 percent-7 percent for the 2016-2020 period. Deputy PM Binh outlined a series of measures required to reach that goal, such as continuing to pursue a proactive and flexible macroeconomic policy, channelling credit to prioritised sectors and expediting public investment disbursement. The government report said improvement was seen in many of the economy's sectors in the early months of 2017 when compared with the same period last year. Agriculture rose by 2.03 percent in the January-March period compared with a 1.31 percent contraction in the first quarter of 2016, while the industrial production index in April went up by 7.4 percent, compared with an expansion of 5.5 percent a month earlier and 4.1 percent rise in the previous quarter. Credit grew by 5.75 percent in the first four months of 2017, the highest rate seen during the same period in the last six years. Exports climbed 16.8 percent and foreign direct investment pledges soared 40.5 percent to $10.6 billion. This period also saw the establishment of nearly 40,000 new enterprises with a total registered capital estimated at VND825 trillion (US$36.3 billion). However, GDP growth in the first quarter only reached 5.1 percent, lower than the 5.48 percent rate recorded in the same quarter of 2016, due to a shrinking mining sector, a slowdown in manufacturing and delays in investment allocation and disbursement. http://dtinews.vn/en/news/018/51002/vietnam-stands-firm-with-full-year-growth-target-of-6-7-.html

Shrimp value chain a must: Experts 23/May/2017 Intellasia| VNS Vietnam needs to develop an equitable and sustainable shrimp production chain, Dinh Xuan Lap, deputy director of the International Collaborating Centre for Aquaculture and Fisheries Sustainability (ICAFIS), said. Lap was speaking at a conference, entitled "Consumer Dialogue on Vietnamese Shrimp Value Chain," organised by ICAFIS in partnership with WWF Vietnam and Oxfam Vietnam in Can Tho on Friday. "Developing an equitable and sustainable shrimp production chain will help the domestic shrimp industry achieve international standards," Lap said. According to ICAFIS, the fisheries sector contributes to more than 3 per cent of the country's GDP annually, and its products are exported to 164 countries, of which shrimp is one of the four main export products. The Vietnamese seafood creates jobs for about 700,000 households and has an average growth rate of 6.82 per cent per year. However, in the recent years, there has been a strong fluctuation in shrimp exports. Particularly, requirements for traceability, production chain management, and the application of chain certification systems are increasing. Statistics of the Vietnam Association of Seafood Exporters and Producers (VASEP) revealed that shrimp export market has changed dramatically in recent years. The export value of the shrimp industry increased sharply from $ 2.1 billion in 2010 to $3.95 billion in 2014. However, in 2015, shrimp export revenue not only decreased to $1.02 billion, but the market shrank by more than a third from 150 markets in 2014 to 92 in 2015. The shrimp export market saw the strongest decrease, with the US decreasing its imports by 35.4 per cent, Japan by 22.8 per cent, and the European Union by 18 per cent. ICAFIS experts said that most of the researches on shrimp value chains over the past 10 years pointed towards the shortage and inefficiencies in links between enterprises and shrimp farmers, and the lack of information transparency, which negatively affected the quality, traceability of products and competitiveness of Vietnamese shrimp in the world market. According to ICAFIS' latest research findings in 2015 on value chains in Soc Trang and Ca Mau, 72 per cent of enterprises' capital is spent on raw shrimp, but 79.8 per cent of the company's raw materials are purchased from small farmers and local traders. Besides these, they said that shrimp farming in Vietnam was facing many risks such as decreasing selling price but increasing prices of materials, climate change, as well as restrictions on access to credits, which are barriers for small-scale producers and processors to expand production and comply with regulatory standards, Lap said. Funded by the European Union, Oxfam Vietnam is cooperating with ICAFIS to carry out the project "Sustainable development of shrimp production value chain in Vietnam" for four years from 2016 to 2020. According to ICAFIS, after more than a year of project implementation in Soc Trang, Bạc Lieu and Ca Mau, 54 contracts were signed to link chains from input phase to output phase to ensure quality control in the chain, adoption of sustainable certification practices, and origin traceability application. This helps reduce the input cost by 15 per cent to 20 per cent and increase the selling price by 3 per cent to 5 per cent. The project also promotes the participation and cooperation of domestic and international seafood enterprises in the sustainable shrimp value chain in Vietnam under the public-private partnership (PPP) model. To promote the sustainable shrimp production chains, Huynh Quoc Tinh, programme coordinator of WWF Vietnam, said that the PPP model in fisheries should be encouraged and production plans on regional scale must be built with the involvement of factories and importers. In addition to these, experts at the conference suggested that the government must participate in and support the process of chain management to avoid link breaks as before, and create a mechanism for access to credits, so that farmers and new businesses are financially able to invest in the industry. http://vietnamnews.vn/economy/376821/shrimp-value-chain-a-must- experts.html#PCjaZALb47hJaSV4.97

Local firms learn the importance of cyber security 23/May/2017 Intellasia| VIR Vietnamese firms, especially those in the financial sector, should step up their security immediately to combat Wanna Decryptor and other, more sophisticated cyber attacks in the future. Will Nguyen, head of Cybersecurity, KPMG Vietnam & Cambodia shared his views with VIR's Nam Phuong. Can you give us an update on the Wanna Decryptor cyber attack, also known as WannaCry? How secure is Vietnam's cyberspace in light of this attack? The major WannaCry ransomware attack used the network infection vector Eternal Blue, which exploits vulnerabilities in Microsoft's implementation of the Server Message Block protocol, to spread itself, and there is likely more damage to come. The presence of a 'kill switch' and the low 'turnover' of ransom payments indicates that this attack was possibly testing the waters and may be followed up with something more serious in due course. The group responsible for WannaCry has yet to be identified. However, many researchers conclude that the attack was not very sophisticated and may have used code samples published by other hackers. International peers do not currently consider Vietnam as a safe Internet environment. Due to the high prevalence and adoption rate of new technologies, Vietnam is currently ranked the number-one most- attacked country in the world, with a malware encounter rate of over 40 per cent the global average is 20 per cent. Awareness levels in Vietnam are still low for both the general public and IT professionals, since cyber security issues do not make headlines very often. This view is confirmed by the various engagements that KPMG runs for our clients and the problem areas that we assist our clients with. That said, cyber security has become a growing concern for a lot of organisations in Vietnam after a number of attacks on Vietnamese airports, airlines, and banks in 2016. Speaking of banks, recent scandals on card fraud and identity theft have caused Vietnamese cardholders to worry. What should banks do, and can firms in financial technology (fintech) help? We can see that the banking sector is taking steps to make itself more secure. The State Bank of Vietnam now expects all Vietnamese banks to include a chip in their cards, which promises stronger security features to combat card fraud. Other notable initiatives include more stringent identity verification and card centre operations that inform cardholders about their transactions. Many banks are planning, or already undergoing audits and certifications in line with the Payment Card Industry Data Security Standard, which introduces more than 300 controls that must be present to protect cardholder data and prevent card fraud. We believe that only mature and large fintech companies are in a position to effectively protect customer information or to have their own internal identity verification controls. KPMG works with a number of banks on IT transformation projects, which aim to figure out how fintech can be integrated into the delivery channels and IT architectures securely. It is also important to ensure that fintech companies cannot access sensitive customer information from the banks' database. An emerging standard for data exchange is ISO 20022, in which banks can classify what information to pass on to fintech firms and what to keep private. Likewise, resultant technologies in Format Preserving Encryption and Secure Stateless Tokenisation ensure that banks do not share sensitive customer information with third-party technology partners. Not only banks, but Internet users in Vietnam are vulnerable to losing their personal information in the era of social media and online shopping. How severe is this problem, and what can be done to solve it? It is true that people's online data is being exploited by companies. There are many ways in which people can divulge their personal information, such as through social media or by sending their bank information to various websites, including online shopping sites. Browsing logs, search queries, or content on Facebook can be automatically processed to infer potentially more intrusive details about an individual, such as sexual orientation, political and religious views, race, substance use, intelligence, and personality. Agencies are hired to exploit this information for advertising purposes, or worse, for phishing and other scams. Several social networking sites try to protect the personal information of their subscribers, but many do not. The best control is to discuss Internet privacy in open forums and disseminate information to educate the general public about safe practices. It is also advisable to educate Internet users as early as possible, since children already use such systems and services from an early age. In your opinion, is the current legal framework on cyber security in Vietnam up-to-date? What regulations should be introduced or strengthened? The Vietnamese government has issued several laws and regulations, namely the 2015 Internet. Security Law and Circular No.31/2015/NHNN, which outlines the minimum cyber security controls that every bank in Vietnam must carry out. Having said that, Vietnam can always enjoy benefits from increasing cyber laws and regulations to protect Vietnam's critical infrastructure providers as digital disruption continues to transform businesses and cyber threats are on a rise. As seen from the latest WannaCry attack, once affected, the compromised systems can cause significant chaos or even harm to people or property. Therefore, we believe that this area should be addressed in the near future. http://english.vov.vn/economy/local-firms-learn-the-importance-of-cyber-security-350004.vov

Garment exports enjoy strong growth 23/May/2017 Intellasia| VNA Vietnam earned 6.75 billion USD from garment and textile exports in the first quarter of 2017, up 12.4 percent against last year, according to the Vietnam Textile and Apparel Association (VITAS). Exports to new markets grew strongly, with Russia up 115 percent, Singapore 38 percent, Cambodia 36 percent and Brazil and India 34 percent. Traditional markets like the United States and the European Union saw more humble export growth at 6.3 6.4 percent. The VITAS noted that traditional products grew by 13 17 percent while newer ones, including swimming suits, raincoats and scarves, increased by 18 41 percent. New products and different ways to approach markets have resulted in higher and more stable growth, while helping the industry rely less on traditional partners, the VITAS said. The association forecasted exports to increase by 10 percent in the second quarter of the year based on the recovery of main markets such as the US, the EU and Japan as well as the stability of the global economy and politics. The industry aims of a 10 percent growth to reach 31-32 billion USD in export turnover in 2017. To achieve the goal, businesses have been encouraged to invest in new equipment and enhance competitiveness with new technologies. http://en.vietnamplus.vn/garment-exports-enjoy-strong-growth/112069.vnp

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