100317Intellasia Finance Vietnam · VIGroup invests in Congnhadat.net 35 SMEs get support to participate in public procurement market 36 Vietnam, Australia strengthen livestock breeding

10 March 2017

finance & business news

FINANCE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1Basel II inevitable for Vietnamese banks 1Interest rates to remain stable in 2017 2Is it the time to raise USD deposit rates? 3Banks achieve good credit growth right from the first months

of the year 5Housing credit grows impressively 6Politburo approves restructuring project of five banks this year 7PM Phuc: Private sector needs AIIB aid 8Vietcombank provides loan worth $1.3b to health sector 8Customers complain about HSBC Vietnam's service 9Schools and stores told to embrace e-payments 10Global Fintech matchmaker Opportunity Network eyes Vietnam 10NA vice Chair receives US-Asean Business Council delegation 12Vietnam contributes to UN high-level meeting on transit,

trade facilitation 13Vietnam unfazed by economic challenges: seminar 13India suspends imports of six Vietnamese agri-products 15Vietnam runs over $2b trade deficit in Feb 15Production improves, trade unbalanced: MoIT 152017 wood & wooden product exports tipped to reach $8 billion 16Nghi Son Economic Zone to be expanded 17Petroleum products worth $433m imported in 2 months 18Cigarette smuggling causes huge tax losses 18Real estate market sees slow decline in inventories 18Agriculture minister explains new regulations to US firms 19Milk price rules to be issued 19Stronger fight against smuggling, trade fraud 20VET conference hears of 2017 economic prospects 21China seen becoming Vietnam's largest tra fish importer 21Hanoi justifies reports of expensive-as-gold rapid buses 22Vietnam wants China to permit more rice exporters 23Vietnamese fish, seafood segment isn't 'cashing in' with

Walmart 24Dak Lak strives to gain global recognition for 'Buon Ma Thuot

Coffee' 25

BIZ NEWS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25Business Briefs March 10, 2017 25Stock market capitalisation hits record high 26VN Index ends four-day rally 26VN Index down, HNX-Index up 27VietJet taking off on HOSE runway 27Derivatives market coming in May or June 29F&N looks to buy 21.7 million more Vinamilk shares 30Finance-banking sector lifts local markets 30Vietnam Rubber Group to offer 25pct capital in Q2 IPO 31PV Oil to sell 40pct stake to investors 31ACV yet to sell stake to ADP 32Budget airline and Air France agree on spare parts and

accessories 32EVN to gauge consumer satisfaction 33ACV prepares 5-year investment plan 33SASCO: Duty-free sales profit up 20-fold in 2016 34Wood processors: Export prospect bright 35VIGroup invests in Congnhadat.net 35SMEs get support to participate in public procurement market 36Vietnam, Australia strengthen livestock breeding ties 36Two foreign firms interested in steel sector consultation 37Auto sales slide 13pct due to low post-holiday demand 37Workshop spotlights sustainable seaweed cultivation 38Coffee fair attracts 234 domestic, foreign exhibitors 38Pepper growers stop selling on price fall 39New progammes support tourism startups in Mekong region 39Belgian experts help HCM City to create special beef stock 39Workshop promotes Mekong Delta's agricultural product sales 40Get set for the largest natural, organic foods expo in Vietnam 40Get set for the largest natural, organic foods expo in Vietnam 40Vincom Retail: Platinum closures done per contract 41Savills Vietnam to sell Kosmo Tay Ho apartments 41Tour operators no longer troubled by inspections 42Vietnam preps for possible pickup in Chinese arrivals 43IFC, Loc Troi help farmers with sustainable rice farming 44

FINANCE
FINANCEBasel II inevitable for Vietnamese banks
10/MAR/2017 INTELLASIA | VIR

As Vietnam becomes more integrated into the world economy, banks looking to improve competitiveness and governance, especially in risk management, should apply Basel II standards.Ten to pilot, all to followAt the beginning of the year, the State Bank of Vietnam (SBV) issued Directive No. 01/CT-NHNN on implementing monetary policies and ensuring safe and effective banking op-erations. One of the focuses of the directive is that in 2017, the project to restructure finan-cial institutions and deal with impaired loans in the period from 2016 to 2020 will be

Intellasia No. 21, lane 173/63/17, Ngoc Ha Ward, Ba Dinh Dist, Hanoi © All Rights Reserved

Tel: +844 2213 2244Fax: +844 3759 2034

Email: [email protected]: www.Intellasia.Net www.TriTueAChau.com

FIN

AN

CE

Vietnam finance & business 10 March 2017

conducted, in the framework of which Basel II will be researched and applied to bring banks closer to meeting international standards.According to the directive, the whole banking system, not just the ten banks named in February 2016, will have to apply Basel II standards soon.General director of Orient Commercial Joint Stock Bank (OCB) Nguyen Dinh Tung stated that the application of Basel II standards is important to integrate with the glo-bal banking system, protect customers, and reduce risks and mistakes."However, Basel II proscribes strict criteria for legislation, database management, cap-ital adequacy, and so on, so its application is challenging," he shared. To deal with this, the OCB prepared a database and funds as the two pillars of risk management. By No-vember 2016, OCB had completed the first stage in its Anti-Money Laundering (AML) project. The bank is completing the final stages to officially apply Basel II in the third quarter of this year.The only way to reduce risk.Basel II is a set of international banking regulations put forth by the Basel Committee on Bank Supervision (BCBS), which sets minimum capital requirements for banks and requires banks to apply risk management methods.In Vietnam, to apply Basel II, banks must deal with expenditures on investment and technology, human resources, and historical transaction data, among others.In the project draft to restructure the economy from 2016 to 2020, prepared by the Min-istry of Planning and Investment, some goals are set, such as cutting back non-per-forming loans, reducing the number of weak banks, and assuring 70 per cent of banks apply Basel II in 2020.Dr Nguyen Tri Hieu, a financial specialist, believed that the application of internation-al standards is necessary for risk management and to reduce the probability of default, creating trust among depositors.Dr Nguyen Van Thuan, head of the Finance and Banking Department of HCM City Open University, said that the difficulty lies in enhancing Vietnamese banks' capital resources, especially for small banks.http://www.vir.com.vn/basel-ii-inevitable-for-vietnamese-banks.html

Interest rates to remain stable in 2017

10/MAR/2017 INTELLASIA | DAU TU CHUNG KHOAN

The goal of stabilising the monetary market as well as the effort to cut down on deposit rates to reduce lending rates in the banking sector seems to be facing certain challenges as the US Federal Reserve is likely to raise interest rates in US dollar right in the meet-ing this March, thereby putting pressure on the dong/US dollar exchange rate and make it difficult for interest rates in dong to decrease.Savings rates in the market are still trending up. In which, interest rates for deposits from one year or more as listed by some banks hit eight percent per annum. In addi-tion, some banks also issued deposit rate certificate with the highest competitive inter-est rate of eight percent per annum.Interbank interest rates also increased sharply due to recent liquidity pressure. Bao Viet Securities Company (BVSC) commented interbank rates have increased again with the range of 0.82-1.28 percent per annum. Of which, the average interest rates in-creased 1.28 percent per annum for overnight term, to 4.01 percent per annum; 1.14 percent/annum for one-week term, to 4.13 percent per annum; 0.82 percent per annum for two-week term, to 4.02 percent per annum.As per Saigon Securities Inc. (SSI), with increased US dollar interest rates and domestic inflation pressure, it will be very difficult to reduce deposit rates in the near future.Another important reason for increased interest rates, especially in long term, as per the assessment of Dr Nguyen Tri Hieu - a financial expert, is that banks are having to restructure their capital to meet the regulation on reduction of short-term capital for medium and long-term loans from 60 percent to 50 percent since the beginning of 2017 as stipulated in Circular 06/2016/TT-NHNN. So, not only for small and medium banks, even large banks are also racing to offer promotional programmes and gifts in order to compete to attract idle money in the population.

Intellasia 10 March 2017 2 / 44

FIN

AN

CE


"In general, deposit rates tend to increase under deposit competition pressure, despite the fact that many banking leaders used to affirm that current liquidity is very good", Hieu said.Not only long term but interest rates for short terms i.e. six months or less are also showing signs of going up. Medium and small-sized banks apply the interest rate of seven percent per annum for six-month term compared to 5-5.5 percent per annum in large banks. That input interest rates are unlikely to fall, according to an experienced leader in the banking sector, is due to the recent appreciation of the US dollar, as well as the expected increase in the near future.With the above mentioned pressures, many experts in the industry said interest rates will be difficult to reduce this year, especially after the State Bank of Vietnam (SBV) is-sued Circular 39/2017/TT-NHNN on removal of interest ceiling for medium to long term lending rates. Many financial analysts said it is important to keep the lending rate ceiling to prevent lending at too high interest rate (up to a few dozen percent) as it used to happen in the past.Nguyen Dinh Long, deputy general director of OBC said if deposit rates continue to increase, lending rates will also swell. Therefore, it is necessary to have a clear interest rate hierarchy by maturity, type of customers, type of collaterals according to classifi-cation criteria regulated in Circular 41/2016/NHNN (under Basel II standard)."If this is realised, despite no increase in deposit rates, lending rates for each client seg-ment, each type of collaterals are still very attractive to customers", Long said.Meanwhile, as per the State Bank of Vietnam, the increase in interest rates only occurs in a number of small-scale commercial joint stock banks and does not reflect the gen-eral trend of the whole market. At present, deposit rates are commonly at 0.8-1 percent per annum for non-term and less than one-month deposits, 4.5-5.4 percent per annum for deposits from one month to less than six months and 5.4-6.5 percent per annum for deposits from six months to less than 12 months, while fluctuating at 6.4-7.2 percent per annum for terms of more than 12 months.The central bank also said the lending rates are currently ranging around 6-7 percent per annum for priority sectors, lending rates for normal manufacturing and business sectors stand at 6.8-9 percent per annum for short terms; 9.3-11 percent per annum for medium and long terms. For good customer groups, having a healthy and transparent financial situation, short-term lending rates are only 4-5 percent per annum.Accordingly, the total money supply this year is expected to hike about 16-18 percent; the credit growth is estimated to improve 18 percent over the previous year, with suit-able adjustments with the actual situation. In the coming time, the State Bank of Viet-nam (SBV) will continue running monetary policy instruments synchronously to regulate liquidity reasonably and manage interest rates in line with macroeconomic developments in order to stabilise interest rates.At the same time, credit institutions are asked to balance capital, keep deposit rates sta-ble, reduce costs and improve business efficiency so as to have conditions to reduce lending rates and share difficulties with customers.

Is it the time to raise USD deposit rates?

10/MAR/2017 INTELLASIA | PHAP LUAT TP HCM

The February economic report published by the National Financial Supervisory Com-mission (NFSC) showed that the dong/US dollar exchange rate followed an upward trend in the first two months of 2017, due to the 46 million US dollar trade deficit re-corded in this period. In the same period of the previous years, the trade balance often surged. In 2016, 2014, and 2013 the trade surplus reached respectively 865 million US dollars, 61 million US dollars, 244 million US dollars, and 1.67 million US dollars.Nguyen Hoang Minh, deputy director of the State Bank of Vietnam (SBV) Hochiminh city branch said that the exchange rate in the previous months, especially after the US President Donald Trump took office, soared at times. There are three main reasons. The first reason was the appreciation of US dollars, which negatively affected other strong currencies in the world, including dong. The second reason is the interest rate raise by the US Federal Reserve (Fed) in December 2016 and Fed's message to further


FIN

AN

CE


increase interest rates of the greenback in 2017. The last reason was the sharp increase of the import and export payment needs in the last months of 2016, and the return of trade deficit in the early months of 2017.Despite the exchange rate rise, there was no foreign currency tension recorded in the domestic. The legitimate needs of enterprises and economic sectors were all fully met. SBV is still in control of exchange rate while ensuring the objectives of monetary poli-cies and macroeconomic balance. Minh confirmed that the most important thing is that the difference between official and unofficial exchange rates remains small. Hence, the exchange rate market has been kept stable.Dr Nguyen Tri Hieu, a banking and finance expert evaluated that in the early months of the year, trade deficit has recurred and affected the psychology of foreign exchange investors, because the increase of trade deficit also means that the demand for foreign currency goes up and investors tend to think about the shortage of US dollar supply. Thus, the speculation psychology on foreign exchange market is likely to be stimulat-ed. In addition, for many times, the US dollar has often appreciated when there was forecast about Fed's interest rate raise. Dr Hieu analysed that since the exchange rate is sensitive to all fluctuations of the economy, the strong appreciation of exchange rate in the recent time is absolutely explainable.Financial expert Phan Dung Khanh commented that the possibility that the Fed pulls up interest rates in 2017, and even in March 2017 is very high. There have been numer-ous forecasts by many organisations about the Fed making this move in March with probability of up to 70-80 percent. The Fed has gradually been changing its view and statement, and increased the frequency of interest rate increase. The agency has chosen to actively control the situation as the policies of President Trump are hard to forecast and they may accelerate inflation. In the last two years, the Fed only increased interest rate once a year. If this year, interest rates are raised in the first quarter of 2017, the fre-quency would surely be more than one in 2017.The stronger greenback will make the value of real estate, securities or the assets priced in US dollars to become more expensive. Particularly, if the prices of these assets go up in the same direction with the US dollar, the price will be several times higher if com-pared to other assets or securities of other countries which are priced in the currencies which depreciate against the US dollar. These assets, at that time, will be much more expensive than usual, and that may increase investors' hesitance in relevant markets. The move to lock profits for expensive assets by investors will thus be seen stronger, negatively affecting other markets.According to Khanh, since the Fed has realised this point, the agency has started to raise the possibility of interest rate rise to reduce capital flows, curb inflation, partly cool down the hot cash flows, and prevent the system collapse like in 2008. With the financial and economic cycle which occurs every 10 years, the faster moves of Fed are understandable.In Dr Hieu's point of view, it is very difficult to predict the developments of foreign exchange market. The pressure on exchange rate from external factors will become greater from now until the end of the year compared to the pressure recorded from the beginning of the year until now. Dr Hieu predicted that the exchange rate may rise by about three percent by the end of 2017. He added that it is time for the management authorities to consider raising the US dollar deposit rates as well as key tax policies, in order to create a standard and attractive commercial investment environment in order to retain foreign investment flows. The Foreign Direct Investment inflows are very im-portant, because the remittances declined in 2016 and may continue to fall this year, said Dr Hieu.

Banks achieve good credit growth right from the first months of the year

10/MAR/2017 INTELLASIA | DAU TU CHUNG KHOAN

As of the end of February, credit growth reached approximately two percent, equal to 5,010 trillion dong, a senior official of the State Bank of Vietnam (SBV) told reporters of Dau Tu Chung Khoan (or Securities Investment). This figure is quite unexpected compared to the previous years, but not so special at the present time, because the


FIN

AN

CE


credit of the banking system has been achieved good growth right from the first months of the year.Nguyen Dinh Tung, general director of OCB, said that as of the end of February, OCB's credit growth of was two percent, equivalent to 800 billion dong - one trillion dong out of the total estimated outstanding debt as of December 31, 2017 at 40 trillion dong.Nghiem Xuan Thanh, Chair of Vietcombank, said that as of the end of January 2017, Vietcombank's credit growth was four percent, focusing on priority areas, effective businesses, and good projects.The National Financial Supervisory Commission (NFSC)'s February 2017 economic re-port showed that, as of January 31, 2017, lending to economic organisations and indi-viduals rose one percent from the beginning of the year, the best growth in January over the past five years.Regarding credit structure: First, the term-based credit structure continued to remain stable since December 2014, of which short-term credit accounted for 45 percent of the total credit, medium and long term credit reckoned for 55 percent; Second, credit struc-ture by currency: credit in dong continued to make up more than 91 percent of the total credit (90.8 percent in the same period of 2016), credit in dong rose 1.6 percent while credit in foreign currency swelled 1.2 percent (1.1 percent and -3.5 percent respectively in the same period of 2016)."The total capital supplied to the economy as of January 31, 2017 was about 8,730 tril-lion dong, up 3.7 percent at the end of 2016. The banking sector continued to be a major source of capital, representing 61.5 percent of total capital supply from financial mar-ket", said a senior executive of NFSC.The Forecasting and Statistics Department (under the State Bank)'s recent survey re-sults on business trend of credit organisations showed that outstanding loans of the entire banking system are expected to grow 4.1 percent (up 4.29 percent in dong, 4.52 percent in foreign currency) in Q1/2017 compared to the previous quarter; up 19.12 percent (up 20.19 percent in dong, up 10.01 percent in foreign currency) in 2017.Commenting about the good credit growth right from the beginning of 2017, CEO of a joint stock commercial bank said in fact, the credit growth in 2016 would exceed 19.1 percent compared to the end of 2015 if SBV did not refrain from signing and disbursing contracts. Therefore, part of the reasons for the increase in credit growth in the first month of this year is in the new year, banks are "untied".However, as per this CEO, this also came from the rapid movement of credit institu-tions right from the first month of the year, as banks repeatedly pledged, disbursed loans, as well as implemented lending packages for businesses.NFSC said, regarding the capital mobilisation from economic organisations and the people (market 1), the deposit rates in February did not fluctuate much compared to January. However, some commercial banks recorded the phenomenon that deposit rates increased slightly by 0.1-0.2 percent per annum compared to the period before the Lunar New Year (Tet), partly because of the impact of the regulation on reduction of the ratio of short-term capital for medium and long term loans to 50 percent appli-cable since January 1, 2017.Meanwhile, as of December 31, 2016, this ratio of the whole system was only about 35 percent and some credit organisations still exceeded this regulation of the State Bank and the need to balance the source before Tet. Meanwhile, lending rates continued to be stable.The non-performing loan (NPL) ratio, as reported by SBV, reached about 2.7 percent (2.9 percent in 2015). However, 2017 is expected to have improvement in the regulato-ry framework to facilitate the bad debt settlement and restructuring at some ailing banks, thereby supporting the objective of stabilising interest rates.Out of the bad debt settled during 2012-2015 (about 500 trillion dong), credit institu-tions self-handled 55.4 percent, the rest was sold to Vietnam Asset Management Com-pany (VAMC). However, the modest settlement of the bad debt sold to VAMC was also one of the reasons why medium and long term interest rates have not reduced much in the past year despite macro factors such as stable inflation, exchange rate pos-


FIN

AN

CE


itively supported.As per the State Bank, as of December 31, 2016, the debt that still had to be settled at VAMC was about 190 trillion dong; the outstanding debt at the stage of execution as of September 30, 2016 was about 58.998 trillion dong. In 2017, VAMC aims to handle 33 trillion dong of bad debt.The settlement of bad debt at VAMC is having positive signs, with more concrete and clearer steps. That is the SBV's proposal to develop Law on credit institution restruc-turing support and bad debt settlement, including a number of separate mechanisms for VAMC and commercial banks in dealing with bad debts. At the same time, credit institutions have been more active in solving bad debts. Typically, Vietcombank re-ceived all the bad debts sold to VAMC and VietinBank set a similar target in 2017.TS. Nguyen Tri Hieu, finance and banking expert, said "The good settlement of bad debts will play an important role in boosting credit growth".

Housing credit grows impressively

10/MAR/2017 INTELLASIA | INFOMONEY

Nguyen Hoang Minh, deputy director of the State Bank of Vietnam (SBV) Hochiminh city branch said that by the end of February 2017, the total outstanding loans of local banks reached nearly 1,500 trillion dong. In particular, the housing credit support pro-gramme recorded an accumulated disbursement value of 7.375 trillion dong.Previously, according to information of the National Financial Supervisory Commis-sion (NFSC), real estate lending developed by 12 percent in 2016 (28 percent in 2015) while consumer credit grew by nearly 40 percent, half of which involved residential housing purchase.This shows the huge and constantly increasing capital demand for home loans and home repair loans of customers. That is also the reason why banks focus on boosting this credit segment.Deputy general director of Orient Commercial Joint Stock Bank (OCB) Truong Dinh Long said that the bank offers very attractive interest rates (even zero percent per an-num) for customers buying houses and apartments of the projects in which OCB have partnership with the investors. In addition, for customers buying separate town hous-es, OCB has launched a promotion with interest rates from only 5.99 percent per an-num. OCB, in 2016, recorded impressive growth in outstanding home loans of more than 30 percent compared to 2015. The bank aimed to further accelerate housing pack-ages in order to meet the increasing needs of homebuyers, said Long.OCB's representative believed that home loans will continue to grow strongly as the demand of middle and upper middle-income people remains fairly great.According to assessment of OCB's leader, the housing demand will continue to signif-icantly increase in 2017, especially medium and low-cost housing segment. This is a potential market segment which OCB plans to exploit in 2017.Leader of Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank) shared that the real estate market is forecasted to develop strongly on middle-class houses and apartments, and real estate companies are concentrating resources on small and medi-um-sized apartment segment with the goal of implementing priority for residential home buyers.Since the middle-class housing segment is a sustainable and core segment of the real estate market and accounts for more than 50 percent of Vietnam's population, credit institutions are moving towards this direction and have introduced many preferential credit policies to attract borrowers, said the leader of Sacombank. He added that the personal housing loans of Sacombank as of late 2016 accounted for about 15 percent of the total personal loans of Sacombank, with overdue debts being well-controlled. In early 2017, Sacombank has offered two promotional credit packages for individual home buyers with the lowest interest rate of 8.5 percent per annum.Meanwhile, the home loan applications at Asia Commercial Joint Stock Bank (ACB) enjoy favourable interest rates from 7.5 percent per annum. The bank's deputy general director Tu Tien Phat said that the total credit limit of the bank's preferential lending packages reaches up to six trillion dong. In 2016, the demand for home loans at ACB


FIN

AN

CE


did not increase sharply in 2016, and individual customers accounted for about 55 per-cent of ACB's outstanding credit, said Phat. It is expected that the outstanding housing credit would see positive growth this year.However, interest rate is always the top concern of home buyers. Notably, since banks are having to restructure the short-term fund used for medium and long-term lending as required by SBV in Circular 06/2016/TT-NHNN, that will partly limit the accelera-tion of home lending, because home loans are mainly on medium and long terms. On the other hand, the mobilisation interest rates are still moving upward, making it dif-ficult for banks to keep lending rates unchanged, especially for personal loans.According to OCB's deputy general director, if deposit rates continue to inch up this year, lending rates will also increase. Meanwhile, leader of Sacombank predicted that there will not be major changes in the lending interest rate level in 2017.

Politburo approves restructuring project of five banks this year

10/MAR/2017 INTELLASIA | SGGP

Governor of the State Bank of Vietnam (SBV) Le Minh Hung says that the Politburo has approved a restructuring project to this year handle five banks comprising three banks purchased at zero dong by SBV, DongA Bank and Sacombank after merger to ensure the safety of the banking system in the upcoming time.The Politburo has made detailed handling conclusions in the project comprising spe-cific sub-projects for each bank. Basing on that, SBV has completed and submitted the project to the government and the prime minister to decide at the soonest.That is part of the second phase of the banking system restructuring project in 2016-2020 which SBV is improving as per requirement by the government to report to the Politburo.In the first phase of the project, SBV has handled nine weak join stock banks through mergers and acquisitions (M&A). Of these it had to buy three banks at zero dong be-cause of long loss-making situation including OceanBank, CB and GPBank and put DongA Bank under special surveillance.So far, merged banks have operated stably with ensured liquidity and not negatively affected the banking system. SBV has assigned large state commercial banks to assist the zero dong banks to reorganise with some positive changes.After two years of the purchase deal, CB has become a stated owned bank with the as-sistance from Vietcombank. Last year, CB officially returned the market and was al-lowed to perform sufficient activities of a retail bank.Deep debt handling effectiveness has been improved. Of these, CB has sold VND500 billion (US$21.93 million) to Vietnam Asset Management Company and tackled nearly VND3 trillion ($132 million) related to loans of Phuong Trang Transport Company.Vietinbank has assigned personnel to manage GP Bank which capital mobilisation has posted a year-on-year increase of 8.7 percent by the end of 2016 and outstanding loan has moved up since April this year.Oceanbank has gained profitable trading activities in two consecutive years 2015-2016, contributing in solving losses in the past.DongA Bank has operated stably and ensured liquidity. Its affordability was 20.1 per-cent by the end of last year, 10 percent higher than regulation. The bank reclaimed VND4,192 billion ($184 milion) deep debts last year after the special surveillance start-ed on August 13, 2015.The second phase of the banking restructuring project will focus on cleaning weak banks through M&A activities with the likely deal this year being the merger of PG-Bank into Vietinbank. The two banks' shareholders meetings have approved the plan since April 2015.Vietinbank has so far supported PGBank to complete a restructuring project and sub-mit to SBV and the government for approval.At a conference to carry out missions in 2017, the chair of Vietinbank's boards of direc-tors affirmed that the bank will carry out the financial ability improvement project for commercial banks on schedule comprising the PGBank merger.Financial banking expert Can Van Luc claimed that three zero dong banks should be


FIN

AN

CE


merged into commercial banks which are assisting them to restructure. However this needs tools and mechanisms for the state commercial banks to accept the merger.Previously, Asian Development Bank and a domestic private partner revealed a plan to purchase one of weak commercial banks of Vietnam via M&A. They have not made clear which bank. There are many small banks with legal capital of VND3 trillion ($132 million) or a bit higher such as VietA Bank, OCB, SaigonBank, BacA Bank, VietCapital Bank.According to experts, many small banks do not want to merge and have built plans to improve financial potential for self-restructuring but implementation is unlikely easy.The fact shows that many banks intending to raise chartered capital have yet to be suc-cessful because their shares have no longer been attractive to investors. Weak manage-ment and years long profit fall has made merger the best solution.http://english.vietnamnet.vn/fms/business/174172/politburo-approves-restructuring-project-of-five-banks-this-year.html

PM Phuc: Private sector needs AIIB aid

10/MAR/2017 INTELLASIA | THE SAIGON TIMES

Prime minister Nguyen Xuan Phuc has proposed the Asia Infrastructure Investment Bank (AIIB) support the domestic private sector to get involved in infrastructure projects.Phuc was speaking at his meeting at the government Office in Hanoi on March 7 with AIIB President Jin Liqun, who is in Vietnam for a visit, the government news site re-ports.He said the government had assigned the State Bank of Vietnam, which has experience in working with international financial institutions like the World Bank, Asian Devel-opment Bank (ADB) and International Monetary Fund (IMF), to represent Vietnam at AIIB. Vietnam has taken out ODA and commercial loans to fund its infrastructure projects, he said, expressing appreciation of AIIB's policy to provide low-cost loans without government guarantees. Vietnam now needs huge finances for infrastructure development, so it attaches great importance to its cooperation with AIIB.Vietnam, Phuc said, pays attention to attracting private sector investment, including of foreign investors. In addition to the public sector, AIIB should provide loans for the private sector to participate in infrastructure projects in Vietnam, he said.Vietnam will be AIIB's reliable and responsible partner, fulfill its membership obliga-tions and expect more support from AIIB and its president.He said he expected AIIB would fund a project in Vietnam this year.President Jin Liqun said Vietnam was holding high growth potential and AIIB would assist Vietnam to gain access to capital to meet its demand.Jin said that aside from government-level cooperation, AIIB would promote lending to the private sector committed to infrastructure projects in Vietnam.http://english.thesaigontimes.vn/52778/PM-Phuc-Private-sector-needs-AIIB-aid.html

Vietcombank provides loan worth $1.3b to health sector

10/MAR/2017 INTELLASIA | VNS

The Bank for Foreign Trade of Vietnam (Vietcombank) on Wednesday committed to setting aside a preferential credit package worth VND30 trillion (US$1.3 billion) for the health sector.The loans will help the sector improve its facilities and service quality.The commitment was part of a comprehensive cooperation agreement inked between Vietcombank and the Ministry of Health to create favourable conditions for hospitals and health check-up establishments to use financial and banking services and contrib-ute to the development of the health sector.Under the agreement, Vietcombank will provide medium and long-term loans with preferential interest rates to hospitals and health establishments to buy modern health equipment and upgrade medical facilities to better serve people's demand for health check-ups and special disease treatment.The credit package, which will be disbursed until 2019, will also be offered for hospital expansion to help solve the patient overcrowding problem faced by health establish-


FIN

AN

CE


ments nationwide.The lending term could last for 20 years.Vietcombank chair Nghiem Xuan Thanh said the bank would actively support invest-ment projects of the health sector. He pledged to simplify lending procedures and sup-ply loans at reasonable interest rates.By signing the agreement with the ministry, Vietcombank affirmed its corporate social responsibility toward communities through practical actions, Thanh added.Deputy minister of Health Pham Le Tuan hailed Vietcombank's credit package as an important source of funds amidst the limited State budget allocation to the sector.With the financial assistance from the bank, hospitals would be able to carry out their action programmes and projects, the deputy minister said, calling for hospitals to use the loans efficiently.The same day, several cooperation agreements were also signed between Vietcom-bank branches and hospitals such as Vietcombank Nam Hanoi and Vietnam National Hospital of Pediatrics; Vietcombank Tay Ho and Friendship Hospital; and Vietcom-bank Sai Thanh, Vietcombank HCM City and Cho Ray Hospital.Besides the credit package, Vietcombank will also provide financial solutions to health establishments, such as non-cash payment services, salary payment, installing ATMs and POS (point of sale) machines at cashier counters.http://bizhub.vn/banking/vietcombank-provides-loan-worth-13b-to-health-sector_284664.html

Customers complain about HSBC Vietnam's service

10/MAR/2017 INTELLASIA | INFOMONEY

K.V, a cardholder of HSBC said due to the urgent need for credit card statement in Sep-tember 2016 (her email did not receive the statement sent by the bank), on March 6, 2017 she called HSBC Vietnam's operator to request assistance.After many calls to approach the operator, V was surprised to hear that she had to pay 110,000 dong printing fee for a two-page statement and could only receive it after two working days.As per InfoMoney.vn, currently, for the service of printing credit card statement, most domestic banks support customers immediately with very low fee (5,000 dong each) or free-of-charge."Once I asked Vietcombank to print statements during six years, which were very thick, the total cost was only 55,000 dong", said V.As per the explanation from HSBC staff, the reason the bank charges 110,000 dong/statement is to encourage customers to use online searching service.However, as per many customers, not only statement printing service but also other services of HSBC are the most expensive compared to other banks. For example, the bank's annual fee ranges from 350,000 dong to 1.2 million dong per month, and the fee for foreign currency transactions amounts to four percent each (compared to the nor-mal fee at 2.5 percent in other banks), and the lending rates through card is 27.8-31.2 percent/annum.Besides high fees, the most unsatisfactory thing is the quality of service and the atti-tude of the bank's staffs.As per Thu Hoai, a "former cardholder" of HSBC, every time when there are problems with the card, customers have to try hard to reach the operator. Even when the opera-tor is connected, customers also have to dial multiple times to meet the right person, which costs a lot of time and money. Many customers are worried because in case of losing the card and the operator cannot be connected, there will have very high risk of losing money.Many unpredictable events have also happened to HSBC cardholders. V. said, previ-ously HSBC sent statement to her home so she knew when to make payment. After a while, she did not see the bank sending statement home but asked an employee to call her to ask for debt repayment. Until August 2016 when V. requested to send statement, she was taken aback discovering that the bank had sent the credit card statement to a stranger with the same name for five years.


FIN

AN

CE


"Being a global bank but it seems the service quality and security is not equal to do-mestic banks", said V.Another customer said she used to fall into bad jokes when a person who introduced himself as the bank's debt collector mistakenly asked her for repayment.This is not the first time HSBC is complained about service quality. Last year, a cus-tomer of this bank - Lam Viet Vuong Quoc (District 1, HCM City) lost his HSBC credit card and the evildoer withdrew more than 19 million dong. However, when reporting to HSBC, the bank's staff told him "things will go nowhere". Eleven days later, the bank still did not answer, he had to come to the bank directly and the bank promised him to resolve soon. That night, he received an email from HSBC saying the bank would re-gret not handling this case, not filing a complaint to the international visa organisation and advising him to contact the police to deal with the loss."From the receptionist, the teller to the customer complaint department, all of them had no supportive attitude and no move to protect customers. HSBC did not bother to investigate. I wonder if you continue to use the bank's service and when the card is lost, you will realise how risky using HSBC Vietnam's credit card. And then, it would be too late to realise that", warned Vuong Quoc.

Schools and stores told to embrace e-payments


Schools, three wholesale markets and Saigon Co.op's retail stores in HCM City will ac-cept customers' electronic payments, instead of cash.HCM City vice chair Tran Vinh Tuyen has requested Hitachi Asia Co Ltd in Vietnam to install devices that make electronic payments possible at the canteens of some schools, 100 retail stores of Saigon Co.op and Hoc Mon, Thu Duc and Binh Dien whole-sale markets.In the coming time, commuters can use bank cards to pay for water taxi, water bus and metro services.Tran Vinh Ky Son, head of IT at Hitachi Asia in Vietnam, proposed using bank cards or mobile phone apps to buy metro or bus tickets or goods at vending machines, and pay parking and toll fees.Cash-based transactions remain popular in Vietnam, leaving huge negative impact on e-commerce enterprises. In recent years, online shopping websites have mushroomed but shoppers still prefer paying by cash on delivery.The E-Commerce and Information Technology Agency under the Ministry of Industry and Trade said electronic payments still make up a small fraction. In 2014, 64 percent of online shoppers chose to pay by cash. A small number of buyers used international credit cards such as VISA, MasterCard, JCB and AMEX, debit cards or digital wallets to pay for goods and services.http://english.thesaigontimes.vn/52781/Schools-and-stores-told-to-embrace-e-pay-ments.html

Global Fintech matchmaker Opportunity Network eyes Vietnam

10/MAR/2017 INTELLASIA | VIR

UK Fintech digitalising global matchmaking Opportunity Network eyes Vietnam's marketUK-based Opportunity Network is striving to set a firm niche in Vietnam by cooper-ating with local banks. Nisami Namazov, vice president of Channel Sales, and Ly Nguyen, country managing director of FinTech, spoke with VIR's Thanh Tung about this.What sets Opportunity Network apart from other rivals?Opportunity Network is a UK-based FinTech company providing a digital business matchmaking platform where members can find trustworthy counterparts for any deal above $1 million and which allows banks to grow their market share.Members and key decision-makers selected by financial institutions from all over the world post opportunities anonymously that vary from mergers and acquisitions (M&A), commercial partnerships, and investments to joint ventures.Opportunity Network, backed by The Boston Consulting Group, has now a valuation


FIN

AN

CE


of around $180 million and is in on-going partnerships with top financial institutions like London Stock Exchange Group, CaixaBank, and Intesa Sanpaolo, Citizens Bank, and YPO - the largest global CEO network.You ask me what makes Opportunity Network different from our Vietnamese rivals. In general, there is no company in the world that does something similar to Opportu-nity Network. So what makes us different from other disruptors is that we take the "trust factor" in business very seriously. We believe that when we trust each other, we can successfully cooperate with each other. For us, "trust" is the most important thing in doing business.Via the "trust factor," we enable banks to better serve their corporate clients by under-standing their current needs and by giving the clients access to quality deal flows from around the world.What we offer is to make the cooperation process much faster and much more efficient, while at the same time ensuring the "trust."You say "the trust factor" separates Opportunity Network from other rivals in Viet-nam. But what about product quality as a factor?We start with the idea that each company is worth as it has its own products and serv-ices. If they do not have these, they will not be able to compete and seize opportunities, and expand their cooperation network either.Our business strategy ensures that only the highest-quality products and services come to be on offer, building up the "trust factor" in our business. That's why there are 13,500 companies on our platform today, at lower costs than other platform providers.How important is the Vietnamese market to Opportunity Network?Vietnam is one of the most dynamic economies not only in Southeast Asia but around the world. The Vietnamese economy has grown at an average of over 6 per cent over the past many years, which is far higher than in many economies. Vietnam is also a very export-oriented economy, with double-digit annual export turnover growth rate year after year.In addition, Vietnam is now seeing remarkable M&A activity in many sectors, such as aviation (Vietnam Airlines, for example) and banking and retail (supermarket chains), with the appearance of many new foreign firms. This has made Vietnam attractive to foreign firms, including Opportunity Network.Moreover, the banking sector is also attractive. We have met with several commercial banks and many small- and medium-sized enterprises (SMEs). We see many opportu-nities for cooperation, as the Vietnamese government is trying to create a more accom-modating business climate, so that the number of private enterprises in Vietnam can double from the existing 500,000 to about 1 million by 2020.Why do local firms and banks need Opportunity Network?I would like to stress that Opportunity Network has a very impressive track record. Currently, it serves thousands of companies across 128 countries and has hosted over $38 billion in opportunity deal flow. Hundreds of connections have been made on Op-portunity Network's platform, making a key contribution to sustaining global eco-nomic development.Opportunity Network is a bank - FinTech collaboration platform digitalising deal matchmaking on a global scale by working with leading financial institutions world-wide and leveraging digital tools as strategic enablers for banking transformation.We are helping banks leverage financial technology to deliver more value and create a better experience for their corporate clients, especially the SMEs who are looking for trustworthy partners to expand their growth both domestically and internationally and gain market share while saving time, money, and effort. This is absolutely in line with the Vietnamese government's policy line to promote the growth of the private sector with a strong focus on SMEs, and facilitate trade, investment flows and M&A opportunities.Connections on Opportunity Network generate business deals between members that banks can then serve and benefit from. Opportunity Network acts as a deal origination tool for clients and banks alike. Opportunity Network also acts as a tool that helps


FIN

AN

CE


achieve key performance indicators in risk management by targeting the right client at the right moment and the right products.You say the Vietnamese market is full of potential for Opportunity Network. What will the firm do in the years to come in Vietnam?We will continue working with the domestic banking industry. We will further our co-operation with local banks to help enterprises, especially SMEs. Opportunity Network has been effectively supporting companies in 128 countries and we consider Vietnam a very important one of them.What about Opportunity Network's FinTech solutions, what are the benefits for Viet-namese banks and partners?Our FinTech solution is a business-to-business digital platform supporting local busi-nesses. It is in line with the development policies endorsed by the Vietnamese govern-ment. In this regards, we will continue working with the government and local banks, and other stakeholders as well.FinTech can play a fundamental role in preserving banks' supremacy in the financial services industry. The rapid evolution of financial services technology and the poten-tial for disruptive entrants to the market should spur banks to develop their own tech-nologies. While innovation in banking is always difficult - according to studies, 96 per cent of bankers agree that the industry is evolving towards a digital ecosystem, how-ever, 87 per cent say their core banking systems cannot support it - FinTech companies are pushing the boundaries of customer experience and digitalisation and we are see-ing obvious trends in payments and lending.There is a wide scope of imaginative new approaches through which FinTech may serve to strengthen banks' quality and deepen their relationship with their clients - the core competitive advantage in the banking sector/industry.Partnering with FinTech companies, with a focus on collaboration and client relation-ships, and harnessing the respective strengths of each partner, could be the smartest way to gain leadership in the Fourth Industrial Revolution.http://www.vir.com.vn/global-fintech-matchmaker-opportunity-network-eyes-viet-nam.html

NA vice Chair receives US-Asean Business Council delegation

10/MAR/2017 INTELLASIA | VNA

Vietnam always considers the US a one of the county's leading trade partner, NA vice Chair Phung Quoc Hien told vice President and CEO of the US-Asean Business Coun-cil Michael W.Michalak in Hanoi on March 9.Hien appreciated the vital role played by the US business community in Vietnam and contributions of US firms to Vietnam's economic development in recent time, affirm-ing that enhancing trade links is always crucial to promoting the relations between the two countries.The Vietnamese National Assembly is willing to create favourable conditions for for-eign firms, including those from the US, to expand investment in the country, he said, adding that it has been perfecting the legal mechanism in the direction of transparency and publicity, including laws related to market economy mechanism.US firms operating in Vietnam should pay attention to protecting the environment and raising social responsibility while enhancing cooperation with Vietnam in human re-sources training and technology transferring, Hien said.For his part, Michael W.Michalak said US enterprises hope to boost links with Vietnam across fields through dialogues and experience sharing.He suggested the Vietnamese side accelerate the simplification of administrative pro-cedures and tax policy reform in order to facilitate US firms' production and business in the country.http://en.vietnamplus.vn/na-vice-chair-receives-usasean-business-council-delega-tion/108438.vnp


FIN

AN

CE


Vietnam contributes to UN high-level meeting on transit, trade facilitation


Vietnam actively contributed to common initiatives and efforts of the international community at the United Nations High-Level Meeting for the euro-Asia Region on Im-proving Cooperation on Transit, Trade Facilitation and the 2030 Agenda for Sustaina-ble Development held in Hanoi on March 7-9.Co-hosted by the Vietnamese Foreign Ministry and the UN Office of the High Repre-sentative for the Least Developed Countries, Landlocked Developing Countries and the Small Island Developing States, the meeting attracted ministers and high-ranking representatives from transit, least developed, small island and landlocked developing countries in Asia and Europe, and leaders from the UN, the World Bank, the Asian De-velopment Bank and the World Customs Organisation.As one of the initiatives to accelerate the implementation of the 2030 Agenda - the US's most comprehensive action-oriented document for national and global-scale sustaina-ble development, the meeting discussed and proposed specific measures to realise the Vienna Programme of Action for Landlocked Developing Countries for the 2014-2024 period.Participants underscored the need to incorporate the Vienna Programme of Action and the 2030 Agenda into national plans, strategies and State budget as well as the im-portance of increased connectivity and cooperation to trade facilitation.They also called for further support of the international community for bilateral and regional cooperation initiatives of transit and landlocked developing countries during the process of fulfilling the Vienna Programme of Action and the Agenda 2030 goals.The event reflected Vietnam's active, proactive and responsible contributions to UN activities and marked a milestone in Vietnam-UN ties, especially in the context that Vi-etnam celebrates the 40th anniversary of its UN membership this year and successfully assumes its role as a member of the UN Economic and Social Council for the 2017-2019 tenure.Speaking at the event, deputy prime minister and Foreign minister Pham Binh Minh said through experience of over 30 years of reform and international integration, Viet-nam has come to fully appreciate that trade and investment facilitation is critical to economic growth and poverty alleviation."Vietnam's membership in the WTO, Asean, Apec and our participation in various Free Trade Agreements, including the WTO Trade Facilitation Agreement, have given our goods better and easier access to global markets. This contributed immensely to the achievement of our socio-economic goals and most Millennium Development Goals", he statedhttp://en.vietnamplus.vn/vietnam-contributes-to-un-highlevel-meeting-on-transit-trade-facilitation/108443.vnp

Vietnam unfazed by economic challenges: seminar


Despite facing challenges, Vietnam has great opportunities to sustain its high econom-ic growth rate, a seminar heard in HCM City on Thursday.Dinh La Thang, Secretary of the City Party Committee told the Vietnam Economic Sce-nario 2017- Business-Investment in a Changing World seminar that the global econo-my continues to be volatile and hard-to-predict with the rise of populism.A slower than forecast recovery of the world economy, a reduction in global trade growth and a slowdown in the commodity market have adversely affected export-driven economies, including Vietnam, he said.The country also faces challenges at home, including complicated weather patterns and climate change as well as slow growth in labour productivity and enterprises' ca-pacity, he said."We should not be discouraged when looking at a somewhat gloomy general picture, but we accept the reality."Because our economy also has many golden opportunities to retain its high growth rates and even achieve a big breakthrough."He said the basis for his optimism include the government's programme to restructure


FIN

AN

CE


the economy and renovate its growth model, its determination to act as a constructive, truthful government to serve the people and consider the private sector an important driving force of the economy.These have significantly supported enterprises' development and motivated innova-tive start-up programmes, he said.The desire to develop the agricultural sector using high-technology would help raise its competitiveness in the global market, he added.Other delegates said since the end of last year the country's economy has seen both ad-vantages and difficulties.The government has implemented many measures to resolve the difficulties faced by companies, improve the business environment and support start-ups, they said.These policies have yielded positive signs like investment by the private sector increas-ing by 9.4 per cent and the number of new businesses going up by 110,000 last year.FDI flows reduced globally last year, but Vietnam's share increased by 9 per cent.Economist Vo Tri Thanh said despite facing difficulties in exports and attracting for-eign investment, Vietnam still has certain advantages, including geographic and polit-ical.Furthermore, Vietnam is not only a promising market of more than 90 million increas-ingly affluent people, but also a gateway for foreign investors and businesses to access markets that have free trade agreements with Vietnam, he said.Talking about promising sectors for investment, he listed processing, real estate, fi-nance-banking, and even agriculture.Don Lam, CEO and founding partner of VinaCapital, said: "Beyond our traditional fo-cus on companies participating in the domestic consumption story, we see potential investment opportunities in areas such as infrastructure and perhaps the banking sec-tor, which are among the top priorities for the government."Hospitality is another sector with great promise. Tourism numbers reached records in 2016 and are expected to continue to rise this year. At the same time, our tourism industry remains undeveloped compared with neighbours such as Thailand and Ma-laysia, so the prospect for growth is tremendous."Delegates said if Vietnam wants to achieve economic growth of 6 per cent or more this year, its economic policies must be steady and flexible and restructuring has to be speeded up, especially that of the banking and financial systems and State-owned en-terprises.Thanh said: "Vietnam needs to provide a new impetus for reforms as well as 'quality resources' for development. The interaction between domestic reforms and integration become much more important."Nguyen Tu Anh, deputy head of the State Bank of Vietnam's Monetary Policy Depart-ment, said the central bank would track economic and monetary development to adopt appropriate monetary policy tools to balance inflation and economic growth.It would meanwhile make efforts to keep the monetary and foreign exchange markets stable, he assured.Thang said HCM City leaders understand the challenges and are determined to over-come them to retain the city's position as the country's leading economy and aim for higher targets.The city is implementing seven breakthrough programmes based on its strengths and potential, and attaches great importance to reforming the investment environment, motivating entrepreneurs and creating conditions for establishing and developing businesses, he said.The seminar, organised by the Vietnam Economic Times, was attended by more than 300 delegates, including Vietnamese and foreign business executives.http://bizhub.vn/news/viet-nam-unfazed-by-economic-challenges-seminar_284678.html


FIN

AN

CE


India suspends imports of six Vietnamese agri-products

10/MAR/2017 INTELLASIA | VNEXPRESS

The move comes after the Vietnamese government's decision to halt five commodities from India.India has suspended the import of six commodities from Vietnam, including coffee beans and black pepper, citing pest infections, India's agriculture ministry said.This came only days after Hanoi took a similar action against five agri-products from India.India's suspension, which came into effect March 7, also targets bamboo, cinnamon, cassia and dragon fruit "in view of the repeated interception of quarantine pests," In-dia's Ministry of Agriculture and Farmers Welfare said in a letter sent to Vietnam's Plant Protection Department March 6 and seen by VnExpress International on Wednesday.Vietnam is the world's largest exporter of robusta coffee and black pepper.India is home to the world's third-fastest growing retail coffee market after Indonesia and Turkey, according to Mintel, a global market intelligence agency. The country also ranks the third-largest importer of Vietnamese pepper after the United States and the United Arab Emirates.In the same letter, India has also requested the Vietnamese agency "not to issue phy-tosanitary certificates for these six commodities for export to India."It did not say when the suspension would be lifted or specify which type of pest had been found in shipments from Vietnam.An official at the Hanoi-based Plant Protection Department confirmed the receipt of the letter from India.India's move against Vietnamese commodities came after the Vietnamese government published a directive earlier this month, saying it will suspend the import of India's five agricultural commodities in 60 days starting March 1, citing the infection of pea-nut beetle.India spent $79.4 million to import 46,000 tonnes of coffee from Vietnam in 2016, a tiny fraction of the country's total export volume last year of 1.78 million tonnes, based on Vietnam's customs data.India also bought 11,000 tonnes of Vietnamese pepper at $84.2 million last year, or 6 percent of the Southeast Asian nation's total export volume of the spice.http://e.vnexpress.net/news/business/india-suspends-imports-of-six-vietnamese-agri-products-3552370.html

Vietnam runs over $2b trade deficit in Feb

10/MAR/2017 INTELLASIA | NHIP CAU DAU TU

According to the latest preliminary statistics of the general Department of Customs, in the second half of February (February 15 - February 28), Vietnam's export turnover reached $7.21 billion, while import turnover hit $6.83 billion. Thus, in this period, the country ran a surplus of $390 million.For the whole month, export turnover arrived at $13.11 billion, down 8.6 percent year-on-year. Import turnover touched $15.15 billion, up 14.9 percent.Vietnam's trade balance posted $2.04 billion deficit in February. Cumulatively, in Jan-uary-February, Vietnam's trade deficit was $800 million.After the first two months of the year, Vietnam's total import-export turnover was more than $55.66 billion, up 19.5 percent, of which exports were $27.43 billion, up 15.8 percent while imports stood at $28.23 billion, up 23.3 percent.

Production improves, trade unbalanced: MoIT


Production and business results improved in the first two months of this year, but trade was unbalanced with strong growth in auto and mobile phone imports, the Min-istry of Industry and Trade reported.The ministry said in the first two months, export value grew 15.4 per cent to $27.3 bil-lion, including $7.6 billion from wholly State-owned enterprises, up 12.2 per cent, and $19.7 billion from foreign invested firms, up by 16.8 per cent against the same period last year.


FIN

AN

CE


Notably, the processing industry achieved a year-on-year surge of 15.5 per cent in ex-port value to $22 billion, accounting for 80.6 per cent of the total national export value. Meanwhile, farming, forestry and fishery export value reached $3.2 billion, 9.9 per cent higher than the same period last year, accounting for 11.4 per cent of the total value.The high export value growth in the first two months of 2017 is particularly significant given the relatively low 2 per cent growth during the same period last year and failure to reach a two-digit value growth rate in 2016, the ministry said.Moreover, average export prices increased sharply during the first two months, in-cluding coal (115.5 per cent), rubber (81 per cent), crude oil (61.9 per cent), coffee (31.9 per cent) and cashew (20.3 per cent). However, the export prices of farming, forestry and fishery products dropped.The increase in export prices contributed to a surge of $736 million in total export value during the two months against the same period last year, the ministry's representative said. Export value of textiles and garments in the first two months also rose by 12.2 per cent to $3.66 billion year-on-year.Le Tien Truong, general director of Vietnam Textile and Garment Group (Vinatex), said many Vinatex businesses had obtained stable long-term orders for the second quarter and beyond.Total export value of textile and garments this year was expected to increase by 6.5-7 per cent to $30 billion, Trng said, with US and Japan its major markets.Auto and telephone importsThe ministry said the imports of some products experienced strong growth during the first two months of this year.The import growth of products such as under-nine-seater vehicles, mobile phones, vegetables and fruits, could impact the general trade balance.In the first two months, Vietnam spent $153 million to import 9,500 complete-built-units of under-nine-seater vehicles, a year-on-year increase of 139.6 per cent, while im-port value surged by 129 per cent for mobile phones and 129.8 per cent for vegetables and fruits.These imports partly contributed to a 20 per cent increase in total import value to $27.4 billion in the two months, the ministry said.The nation had a trade deficit of $46 million in the first two months, it said, $3.5 billion for local enterprises and $3.4 billion for foreign companies.Minister of Industry and Trade Tran Tuan Anh praised the high export growth, but urged enterprises to focus on sustainable export development, vietnamplus.vn report-ed.He said enterprises should focus on diversifying export products and markets to avoid dependence on products which have the advantage of cheap labour and on markets which we have the benefit of free trade deals."We must re-organise production to ensure competition, especially which is based on adding value factors, such as technology and labour productivity," minister Tuan Anh said.To limit the trade deficit and control imports, the ministry said the State should have solutions to control the fast-growing import of such products as mobile phones, scrap steel, under-nine-seater automobiles and precious metals, as well as vegetables and fruits.http://bizhub.vn/news/production-improves-trade-unbalanced-moit_284658.html

2017 wood & wooden product exports tipped to reach $8 billion

10/MAR/2017 INTELLASIA | VNECONOMIC TIMES

Exports tipped to rise this year after poor 2016.Export turnover of wood and wooden products in Vietnam is expected to reach $8 bil-lion this year. Huynh Van Hanh, vice President of the Handicraft and Wood Industry Association (HAWA), believes export turnover will increase given the development of wood processing enterprises in recent times.Proof of potential is the example of the Thinh Viet Manufacturing Co., which saw no


FIN

AN

CE


growth in 2016 but has taken significant orders in the first two months of the new year."The decline in demand in Europe following Brexit saw Vietnam's wooden exports grow poorly in 2016," said Le Xuan Bac, Chair of Thinh Viet Manufacturing. "Without trying to find new markets, Thinh Viet could not avoid seeing a downturn last year."The Scansia Pacific Co., which is headquartered at the Tan Tao Industrial Park in Binh Tan district, HCM City, is also running at full capacity this year. general director Nguyen Chien Thang believes that "new orders should come soon, especially after the upcoming Vifa Expo 2017." Hanh added that most wood manufacture enterprises headquartered in Binh Duong and Dong Nai provinces have exhibited positive signs this year."Vietnamese enterprises are expected to increase productivity by 20 to 25 per cent this year, but in my opinion that is still a modest figure," he said.Scansia Pacific and Thinh Viet have invested in improving their equipment to handle more orders. Manufacturing lines costing from $200,000 to $500,000 are still being sought by some businesses to improve production capacity. Hanh also said that potential comes from stable growth in the sector and added value of 40 per cent. Vietnam has a range of opportunities to boost its manufacturing after signing a host of free trade agreements (FTAs). Global demand for wooden furniture is increasing and international customers are paying greater attention to Vietnam's furniture rather than products from Singapore and the Philippines, boosting revenue for wooden manufacturing enterprises in the country."The possibility of a breakthrough for wooden exports in Vietnam in 2017 is high," he said.http://vneconomictimes.com/article/business/2017-wood-wooden-product-exports-tipped-to-reach-8 billion

Nghi Son Economic Zone to be expanded


Prime minister Nguyen Xuan Phuc has approved the expansion of the Nghi Son Eco-nomic Zone (EZ) in the central province of Thanh Hoa through 2035, with a vision to 2050.The zone will cover 106,000 hectares, encompassing the entire area of the old Nghi Son EZ, the remainder area of Tinh Gia district and several communes of Nong Cong and Nhu Thanh districts.The expansion aims to make Nghi Son EZ a dynamic economic development area in the south of the Northern Key Economic Zone.The Nghi Son EZ is also expected to be an attractive destination for investment and a regional transit centre, ensuring economic development and national security.It is hoped to become a multi-sector industrial complex focusing on petrochemical re-fineries and basic industries as well as building deep seaports and a human resources training centre.The main goals from now to 2025 include improving the investment environment and constructing socio-economic infrastructure to attract investors.After 2025, the EZ will develop industry, services, trade, finance, culture and society, eco-tourism and resorts, and green urban models.The PM called for clear assessment of the role, position, potential, and development of the EZ.The planning scheme is built in accordance with government Decree No/44/2015/ND-CP dated May 6, 2015 on construction planning.The Nghi Son EZ, established in mid-2006, is about 200 kilometres to the south of the capital city of Hanoi.It also houses the Nghi Son seaport and the Nghi Son Oil Refinery and Petrochemical Complex - the largest of its kind in Southeast Asiahttp://en.vietnamplus.vn/nghi-son-economic-zone-to-be-expanded/108399.vnp


FIN

AN

CE


Petroleum products worth $433m imported in 2 months


Vietnam spent $927 million on importing 1.66 million tonnes of petroleum products over the past two months, surging 2 per cent in volume against the same period last year.Up to 750,000 tonnes of petroleum products, worth $433 million, were shipped to Vi-etnam in February alone, according to statistics from the Ministry of Industry and Trade.During the two-month period, petroleum shipments from Singapore to Vietnam hit more than 610,000 tonnes, valued at $304.7 million, making Singapore Vietnam's lead-ing supplier for petroleum products.South Korea came second with 428,300 tonnes, worth more than $263 million, followed by Malaysia with above 300,000 tonnes, or equivalent to $138 million, and Thailand with 180,000 tonnes, valued at $73 million.In two months, Vietnam also imported petroleum from China and Russia, amounting to 123,000 tonnes, worth $66.2 million, and 5,300 tonnes, worth $3.24 million, respec-tively.Earlier this week, local petroleum retailers lowered the price of petroleum by VND76 per litre and E5 bio-fuel by VND58 per litre to VND18,022 (80 US cents) and VND17,760 per litre.This marks the first time this year that the ministries of Industry and Trade and Fi-nance reduced the price of petroleum.http://bizhub.vn/news/petroleum-products-worth-433m-imported-in-2-months_284680.html

Cigarette smuggling causes huge tax losses


The Vietnam Tobacco Association has sent the government a report saying that ciga-rette smuggling caused tax losses of VND8 trillion (US$350.8 million) last year.Illegal trading and transportation of cigarettes are forecast to increase by 10 percent against 2015, Tien Phong newspaper quoted the association as saying.The association has sent seven measures to the government, ministries and agencies to step up the fight against cigarette smuggling.The association has sought approval from the government for destroying all smuggled cigarettes which have been confiscated and building a cigarette incinerator for envi-ronmental protection.The government, according to the association, should provide modern equipment for law enforcement to deal with cigarette smugglers.The association proposing filing criminal charges against those smuggling 500 packs of cigarette or above.The association ascribed the increase in cigarette smuggling to lax law enforcement.http://english.thesaigontimes.vn/52786/Cigarette-smuggling-causes-huge-tax-loss-es.html

Real estate market sees slow decline in inventories


The real estate sector reported a reduction of 1.45 trillion VND (63.6 million USD) in inventory in February from December, 2016 to an estimated 29.6 trillion VND (1.3 bil-lion USD), according to the Department of Housing and Real Estate Management un-der the Ministry of Construction.Most of the inventory is residential land for projects located far from cities with insuf-ficient infrastructure. This land totalled more than 3.5 million square metres, worth some 13.6 trillion VND (596.5 million USD).This was followed by town houses with 3,726 units worth 8.1 trillion VND (355.3 mil-lion USD). Unsold apartments stood at 3,613 units, equivalent to 5.2 trillion VND (228 million USD). Inventory in commercial land was nearly 697,000 square metres valued at 2.6 trillion VND (114 million USD).Unsold properties in Hanoi were estimated at 5.538 trillion VND (242.89 million USD) while HCM City saw total inventory value of 5.518 trillion VND (242.02 million USD).


FIN

AN

CE


To ensure transparency in the market, the two cities have announced property projects qualified to sell property. From September, 2015 to February, 2017, some 54,512 apart-ments were available in Hanoi while 32,420 units were eligible in HCM City.The Department also said that transaction prices were stable in the two cities thanks to abundant supply.http://en.vietnamplus.vn/real-estate-market-sees-slow-decline-in-inventories/108393.vnp

Agriculture minister explains new regulations to US firms


Minister of Agriculture and Rural Development Nguyen Xuan Cuong explained sev-eral new regulations regarding agriculture during a working session in Hanoi on March 8 with Senior vice President of the US-Asean Business Council Michael Micha-lak.At the session, a representative from the US's Cargill Corporation said while the com-pany fully supports the removal of antibiotics as growth promoters starting January 2018, Circular 06/2016/TT-BNNPTNT includes a limited list of antibiotics and guide-lines for use that under its current form will severely limit the capacity of farmers to prevent, treat and cure diseases.The corporation asked the MARD to provide clarity to the industry with regards to next steps as time is running short, or if needed, a further extension to Circular 26 that delays the implementation of the new antibiotics guidelines from January to July 2017, in consideration of the amount of work that yet remains to be done between MARD and stakeholders in the industry to carry out a Risk-based approach framework to sup-port the responsible use of antibiotics in animal feeds.Minister Cuong said the abuse of antibiotics in both human and livestock is posing a rising threat of drug resistance, hence the need for a legal framework to prevent it. He added that Vietnam will work with related firms in this matter, with a view to choos-ing a comprehensive solution for animal husbandry rather than using antibiotics.Discussing the new regulation that requires the spraying of chemicals on distiller's dried grains (DDGS) from the US before being exported to Vietnam as from April 2017, the minister said it is normal that the two sides proposed different chemicals to be used in the procedure.About the halted registration of imported plant protection drugs, especially those for rice, Cuong said Vietnam is shifting to eco-friendly fertilisers, particularly organic and micro-organic ones, together with technological application in production.Vietnam pays attention to environment protection and needs to review such process for better control, he said.The minister welcomed Microsoft's intention to cooperate with the ministry's Depart-ment of Science and Technology, especially amid the fourth industrial revolution in the world. He instructed the Department of Science and Technology and Department of International Cooperation to discuss the cooperation in details with the US group.Michael Michalak, for his part, thanked Cuong for his response to the US businesses' questions and proposals, noting that the best way to address the problems is to create a framework for Vietnamese and US experts to work together in handling them.http://english.vov.vn/economy/agriculture-minister-explains-new-regulations-to-us-firms-345068.vov

Milk price rules to be issued


The Ministry of Industry and Trade (MoIT) will shortly issue a circular with specific guidance to manage prices of milk products for children under six years old, according to information posted Wednesday on the ministry's website.According to this circular, enterprises and cooperatives producing and importing milk products will have the responsibility to register or declare retail prices for milk and supplement products with the MoIT. They will also announce their distribution sys-tem to the ministry and the ministry's authorised offices will supervise to ensure milk products are sold at the informed prices in the local market.


FIN

AN

CE


After considering acceptability of prices registered, the MoIT will announce those pric-es and information about the distribution system of each enterprise and cooperative to local management offices to cooperate with the ministry in supervising prices at the retail stage.The prices of dairy products being sold at the enterprises and cooperatives' distribu-tion systems must not be higher than the registered prices and under control of the lo-cal industry and trade departments, market watch department, and inspection and taxation offices.The ministry's Domestic Market Department said this mode of management will help State offices determine origin of goods and control quality and price of dairy and sup-plement products in case of problems in quality. They can also withdraw those prod-ucts from the market.Regulations under this circular will be applicable for all traders in Vietnam as well as relevant State offices.Subjects to the new circular will be domestic producers, importers, distributors and re-tailers of milk and supplement products containing milk.According to a November 11, 2016 decree, enacted by the government to supplement and revise some articles of a previous directive, the management of milk prices for children under six years old will be the responsibility of the MoIT in 2017 instead of the Ministry of Finance (MoF).At present, the country has 877 registered formula products for children below six years old. Their registered and maximum prices are published on the portals of the MoF and local financial departments.Since June 2014, baby formulas have been placed on the list of subsidised products, with a cap on ceiling prices of 600 products, since a range of solutions, including price registration and announcement, did not prove effective. The difference between retail and wholesale prices did not exceed 15 per cent.The management of the milk prices was based on regulations of the Law on Price, the government's Decree 177, issued on November 4, 2014, and Decree 149, issued on No-vember 11, 2016, on specific regulations on managing milk prices for children under six years old.The MoF also issued Circular 233 on adding and amending some articles of its Circular 56, dated April 28, 2014, on guiding implementation of Decree 177.Based on Circular 233 and other existing regulations related to management of milk prices, the MoIT will shortly issue a new circular with specific guidance on the man-agement of milk prices for children under six years old.

Stronger fight against smuggling, trade fraud

10/MAR/2017 INTELLASIA | VOV

Deputy prime minister Truong Hoa Binh chaired on March 9 an online meeting of the National Steering Committee on the Prevention and Control of Smuggling, Trade Fraud, and Counterfeit Goods and its branches in 63 provinces and cities throughout the nation. Deputy prime minister Truong Hoa Binh who is also head of the National Steering Committee on the Prevention and Control of Smuggling, Trade Fraud and Counterfeit Goods (Steering Committee 389) affirmed that the government will take tougher measures to combat smuggling, trade fraud, and fake goods and strengthen disciplines to prevent corruption and punish officials colluding with smugglers.The committee, ministries, agencies and localities were also asked to intensify inspec-tion and clearly determine responsibilities of top leaders in each area in case of any vi-olation, Binh said.He also underscored the need to review and fine-tune legal regulations and fix over-lapping management during the fight.Deputy minister of Industry and Trade Do Thang Hai said, "We suggest the govern-ment instruct ministries, sectors, and localities to strengthen inspection to prevent goods from being smuggled into Vietnam at the borders."As many as 211,559 violations were discovered last year, up 2.55 percent year-on-year and brought to court 1,560 cases involving 1,863 people, according to the committee.


FIN

AN

CE


VET conference hears of 2017 economic prospects


Vietnam will continue to confront challenges despite seeing plenty of opportunities for economic growth in 2017, VET conference on March 9 told.Speaking at the 10th "Vietnam Economic Scenario 2017: Business and Investment in a Changing World" conference held by Vietnam Economic Times and the Central Eco-nomic Commission on March 9 in HCM City, Dinh La Thang, Politburo member and Secretary of the HCM City Party Committee, stressed that Vietnam's economy has many opportunities to maintain high growth due to positive changes in State policies on economic restructuring, According to Dr Tran Dinh Thien, director of the Vietnam Institute of Economics, unpredictable variables in the global economy have a signifi-cant effect on Vietnam's business and investment environment. He said that global trade may see some disorder this year as messages from US President Donald Trump on trade policies remain mixed and the prospect of a "hard Brexit" is also increasingly evident, with the EU economy exhibiting decline and risks last year. At the same time, Japan has also seen slow economic movement for a decade.However, experts say that advantages for Vietnam's economy in 2017 will come from free trade agreements (FTAs) and economic growth being enhanced by the govern-ment's commitments to institutional reforms and improvements in the investment en-vironment to facilitate the business community. Exports, real estate and the securities markets are all expected to enjoy stable growth."In the next three years, Vietnam's economy will continue to grow at over 6 per cent," said economic expert Nguyen Tri Hieu. "This is a sound growth rate compared to other countries in the region, but is not expected to reach 6.7-6.8 per cent." This is because Vietnam will face a range of global issues in the years ahead, but it can nonetheless be cautiously optimistic about growth exceeding 6 per cent with inflation kept under the set target.According to Vo Tri Thanh, former deputy director of the Central Institute for Eco-nomic Management (CIEM), there are two scenarios for Vietnam's economy in 2017. In the first, the national economy continues to maintain sustainable growth, with the ef-fectiveness of domestic investment continuing to improve. Economic growth would stay at 6.44 per cent and inflation 5 per cent.The second scenario includes assumptions made in the first, with the economy also uti-lising opportunities from economic development through global integration. An effec-tive economic structure will be enhanced, with growth forecast at 6.72 per cent and inflation 6 per cent.Regardless, the recovery in the global economy remains weak and unequal. Global trade has been growing slowly in recent years, at a rate even less than global economic growth. In such a global context, Vietnam will have to prepare its own scenarios, where its global trade relationship becomes harder and macro-economic policies more complex, Thanh added.renovating the growth model, and improving the business en-vironment.http://vneconomictimes.com/article/vietnam-today/vet-conference-hears-of-2017-eco-nomic-prospects

China seen becoming Vietnam's largest tra fish importer


There is a high possibility that China could overtake the US as the biggest importer of Vietnamese tra (pangasius) fish this year, heard a seminar on agricultural and aquatic products in the Mekong Delta city of Can Tho on Tuesday.The Chinese market has recently accelerated imports of rice, shrimp and pangasius from Vietnam, said Vo Hung Dung, director of the Vietnam Chamber of Commerce and Industry in Can Tho City and general secretary of the Vietnam Pangasius Associ-ation.Pangasius shipments to the northern neighbour accounted for a slight 3-5 percent of the sector's total before 2014 but the ratio shot up to 10 percent in 2015 and 18 percent last year, resulting in China overtaking the European Union as Vietnam's second larg-est importer of the fish after the US


FIN

AN

CE


"Given the strong demand, I think China could possibly surpass the US to become Vi-etnam's biggest tra fish buyer this year," he said.China has huge demand for not only pangasius but also farm goods like rice, sweet po-tato and shrimp, said Pham Minh Thien, executive director of Co May Trading & Serv-ices Co Ltd in Dong Thap Province.However, uncertainly is what characterises the Chinese market as Chinese traders can place big orders one day but walk away the next day. This is why Thien's company limits tra fish sales to the northern neighbour at 30-40 percent to reduce risk.Vietnamese economic expert Le Dang Doanh, who is member of the United Nations Committee for Development Policy, said China is a big market with a population of 1.4 billion people, and may replace the US as the world's largest economy.However, he noted, exporting Vietnam's agricultural and aquatic goods to China is like travelling on a bumpy road.Vietnam's shipments to the northern nation are subject to tariffs of 13 percent to 17 per-cent. Doanh said they should range from zero to 5 percent as stated in the commitment to the Asean-China Free Trade Area, of which Vietnam is a member.He added other risks include a lack of information, language barrier, payment meth-ods and verification of partners' capacity.Vietnam should have experts with a good command of the Chinese language and a good understanding of rules and policies. "All deals with Chinese traders must have contracts with clear terms on transaction, payment and dispute settlement in line with international practices," he stressed.http://english.thesaigontimes.vn/52773/China-seen-becoming-Vietnam's-largest-tra-fish-importer.html

Hanoi justifies reports of expensive-as-gold rapid buses

10/MAR/2017 INTELLASIA | TUOITRE NEWS

Hanoi's bus rapid transit (BRT) developer has addressed reports that the system's bus-es cost more than they should, arguing that the allegations were made without a clear understanding of the project's procurement contract.The Hanoi BRT system, consisting of 35 buses, began operating in January 2017 be-tween Yen Nghia Bus Station in the outer district of Ha Dong and Kim Ma Station in Dong Da District.Local newspapers critical of the developer and project's costs have questioned why the system's buses cost an average of VND5.54 billion (US$247,321) each, whereas the most deluxe 47-seater passenger bus fetches no more than VND4.2 billion (US$187,500).Complicating the matter is confusion behind the developer's decision to terminate the original contract to purchase the BRT buses through a tender winner and the launch of a second tender to choose a new supplier."That price includes operations and driver training costs," he explained."The real bus price is only VND4.91 billion [US$219,196] apiece."The Hanoi BRT system is funded by the World Bank, Tuan continued, adding that the creditor approved an additional fund of VND17.7 billion (US$790,179) for signal cable installation and auto-door systems at the BRT stations.In the meantime, Mai Phuoc Nghe, deputy general director of THACO, also said the THACO-Thien Thanh An venture won the BRT procurement contract for VND176.29 billion (US$7.9 million)."Each bus costs VND4.45 billion [US$198,661], excluding taxes," he said.Nghe added that the buses are worth the price, considering they are specifically de-signed to serve the Hanoi project using the most up-to-date technology."The buses can carry up to 90 passengers, compared to 80 passengers on the conven-tional vehicles," he asserted.As for opening the tender offer twice, the PMU said the first contract winner was the Openasia Equipment Limited-Volvo Bus consortium, which won the bid at $11.65 mil-lion.After the contract had been signed, the developer and the contractor were unable to


FIN

AN

CE


see eye to eye on several issues, such as payment and repayment.The PMU said it had obtained approval from the World Bank and the Hanoi adminis-tration to terminate the contract with the Openasia Equipment Limited-Volvo Bus joint venture and offered another tender.This time the THACO-Thien Thanh An won the bid with a much cheaper offer, $7.9 million compared to $11.65 million.http://english.vov.vn/economy/hanoi-justifies-reports-of-expensiveasgold-rapid-bus-es-345156.vov

Vietnam wants China to permit more rice exporters


Many Vietnamese rice exporters are facing difficulties after China authorised only 22 Vietnamese businesses to export rice into the country.Vietnam wants China to permit more rice exporters, vietnam economy, business news, vn news, vietnamnet bridge, english news, Vietnam news, news Vietnam, vietnamnet news, vn news, Vietnam net news, Vietnam latest news, Vietnam breaking newsThe permission was announced by China's general Administration of Quality Super-vision, Inspection and Quarantine (AQSIQ), which allowed 22 firms to export rice and rice products from January 1, counting from the date of departure from the Vietnam-ese border. Any businesses not listed by AQSIQ were banned from exporting to the Chinese market from January 1.This decision has affected many Vietnamese firms which were not in the list but had already signed rice contracts before the date.One such company is Can Tho Food Company, which is not allowed to export rice to China, although it had signed a contract to export 18,000 tonnes of rice to China at the end of last year.Nguyen Van Dung, the company's deputy director, said the delivery would have been completed by early February, but following the new order, it was no longer allowed to export and hence was suffering huge losses."Our contract was canceled cancelled and we have to compensate some VND300 bil-lion for our partner. In addition, we have to bear further costs," Dung told Vietnam Tel-evision.Dung said rice was preserved in the store for quite a long time so the company had to re-process 10,000 tonnes of rice, which raised the cost by VND200-300 per kilogram."I hope the State and relevant sectors create conditions for my company to sell rice, helping us to overcome difficulties. If it is not solved soon, my company will go bank-rupt," Dung said.Tran Thanh Nam, deputy minister of agriculture and rural development (MARD), said the ministry would soon contact China authorities, asking them to send an expert del-egation to Vietnam to assess more businesses which could be eligible for exporting rice to China.China's permission to 22 Vietnamese rice exporters was given after a group of Chinese experts traveled travelled to Vietnam to inspect 31 enterprises that had previously ap-plied to the local ministry for export rights to China last year.According to MARD, China tops the list of Vietnam's rice export with 35.4 per cent of market share in the first three quarters of 2016.Total rice export turnover to the Chinese market touched 1.35 million tonnes, amount-ing to $613.4 million in 2016, down 23 per cent in terms of quantity and 13.9 per cent in terms of value in comparison with the same period in 2015.http://english.vietnamnet.vn/fms/business/174208/vietnam-wants-china-to-permit-more-rice-exporters.html

Vietnamese fish, seafood segment isn't 'cashing in' with Walmart


Nearly one hundred farmers and exporters recently attended a business forum on the ins and outs of contract fish and shrimp farming for US based retail giant Walmart, or-ganised by the Vietnam Association of Seafood Exporters and Producers.Speaking at the forum, Nguyen Hoai Anh, deputy director of Thuan Phuong Compa-


FIN

AN

CE


ny, said that the opportunity to supply millions of fish and seafood products to the 5,000 US Walmart stores under a Vietnamese brand is a dream that is not likely to hap-pen anytime soon.The problems relate to the fact that exporters do not understand the business model of Walmart and currently lack the infrastructure and sophistication to handle replenish-ment needs, logistics, and turnaround times.Anh noted that working as a supplier to Walmart of an independent brand is a full-time round-the-clock job, that requires an undergraduate degree from an accredited university in business administration at a minimum.A master of arts degree in business administration would be preferable and they must be fluent in the English language.Until the segmentupsizes and develops the infrastructure, processing and manage-ment capabilities, the only viable option to consider is licensing fish and seafood prod-ucts to Walmart under its Great Value brand.This approach would at least give the segment time to scale up to meet the needs of Walmart in line with a multi-year sustainable strategy.Understand the true cost of fish and seafood productsIt can be challenging to meet the pricing demands of Walmart, said Anh, which are lower than most retail companies in the US and often so low there are no earnings to be made in selling products at the retailer unless sales are in the millions of products weekly.Anh added that his company has over recent years only been averaging 3-5 million products per year in sales at Walmart and earnings have been miniscule. As part of its long-term plan to scaleup production the company is planning the opening of two processing plants in the southern province of Long An.A representative from the Cuu Long Fish Joint Stock Company in turn talked about the strict requirements of proving financial capacity, production capability, supply chain security and corporate responsibilityto become an independent brand seller at Wal-mart.Lastly, a representative from the Dong Hung Industrial Joint Stock Company noted thatthe earnings at Walmart are minimal and it may not even be worth selling prod-ucts at the chain on a small scale.Selling product at Walmart is all about being an expert at brand building, cutting costs to a minimum, being technically proficient in all the latest technology, having a thor-ough understanding of business administration and selling products on a massive scale, if the segment is to cash in at Walmart, Hung underscored.Walmart Stores, Inc. operates retail stores in various formats around the globe. The company operates its business through three reportable segments: Walmart US, Wal-mart International and Sam's Club.The Walmart US segment includes the company's mass merchant concept in the US, operating under the Walmart or Wal-Mart brand, as well as walmart.com and offers financial services and related products including money orders, prepaid cards, wire transfers, check cashing and bill payment.The Walmart International segment includes numerous formats of retail stores, restau-rants, wholesale clubs, including Sam's Clubs, and various retail websites that operate outside the US.This segment operates units in three major categories: retail, wholesale and other which consists of numerous formats, including discount stores, supermarkets, super-centres, hypermarkets, retail websites, warehouse clubs, restaurants and apparel stores.http://english.vov.vn/trade/vietnamese-fish-seafood-segment-isnt-cashing-in-with-walmart-345012.vov


BU

SIN

ES

SVietnam finance & business 10 March 2017

Dak Lak strives to gain global recognition for 'Buon Ma Thuot Coffee'


Up to 10 countries worldwide have approved trademark protection registration for "Buon Ma Thuot Coffee", a brand in the Central Highlands province of Dak Lak.These countries are the Netherlands, Belgium, Luxembourg, Spain, Germany, Singa-pore, China, Thailand, Canada and Russia.Dak Lak has worked with experts from the European Trade Policy and Investment Support Project to compile documents for geographical indication registration of Buon Ma Thuot coffee in the EU.The province's coffee promotion efforts have increased exports of the product.Local coffee beans harvested from the 2015-2016 crop were shipped to 75 countries and territories across the world.Top consumers of Dak Lak coffee beans in the crop included Japan with some 32,250 tonnes worth nearly 56.6 million USD, Switzerland with over 23,000 tonnes worth 41 million USD, and Germany with 22,000 tonnes worth more than 37.5 million USD.Dak Lak is home to nearly 193,000 hectare of commercial coffee plantations, which produce about 450,000 tonnes of coffee beans a year.http://en.vietnamplus.vn/dak-lak-strives-to-gain-global-recognition-for-buon-ma-thuot-coffee/108395.vnp

BIZ NEWS

Business Briefs March 10, 2017

10/MAR/2017 INTELLASIA |

* Fraser and Neave (F&N) has registered to buy 2l.77 million shares of Vietnam Dairy Products Company (VNM), raising its total ownership in VNM from 17.77 percent to 19.27 percent. This purchase will be done through one of its subsidiaries, F&N Dairy Investments, which currently owns a 15.07 percent stake at VNM. Transaction is ex-pected to take place between March 10 and April 7.* Tan Binh Import-Export Corporation (TIX) has decided to divest capital from Tan Thang Tourism Investment Joint Stock Company, selling 80,000 shares atVND20,OOO each.* Dai Thien Loc Company (DTL) has decided to invest VND158 billion, or a 30 percent stake, in a factory of Dai Thien Loc Steel Company, raising the chartered capital of the affiliate from VND637 billion to VND795 billion.* Tien Trung Investment Construction and Technology Company (TIZ) will float an additionall. 75 million shares on the Hanoi Stock Exchange on March 15, raising its to-tal outstanding volume to seven million shares. The new shares are not transferrable until December 29,2017.* Dabaco Group (DBC) plans to issue 7.53 million shares to pay a share dividend at a lu-for-I ratio for 2016 on the record date of March 15. The issuance will be made In the first quarter of this year. The company targets a net profit ofVND32Q billion on reve-nue ofVND9.26 trillion in 2017.* Hai Duong Pump Manufacturing Company (CTB) is seeking approval from share-holders to raise its capital from VND35 billion to VND86 billion by issuing l. 75 million shares for existing shareholders at the 2: 1 ratio at VNDI0,OOO each and 3.35 million shares via a private placement for MB Fund Management Joint Stock Company (MB Capital) at VND15,600 each, said vietstock.vn. The enterprise targets to earn VND350 billion in revenue and VND21 billion in pre-tax profit, and pay dividend at 15 percent this year.* Pham Van Thanh, chair of Construction Company No.3 (VC3), has registered to buy 500,000 VC3 shares from now to April 5.* Hai Phong Cement Transport and Trading Company (HCT) has an nounced March 23 as the ex-dividend date for shareholders to receive 2015 and 2016 cash dividend at 2 percent and 5 percent. Payments are slated for October 26.

BUSINESS


BU

SIN

ES


Stock market capitalisation hits record high


The stock market capitalisation reached 2,260 trillion VND (101 billion USD), equal to 50.3 percent of the national GDP, up 16 percent from the end of 2016 and is the highest-ever level since the market began operation.Vu Bang, Chair of the State Securities Commission, released the information at a news conference on March 9.As of March 6, the VN Index stood at 716.29 points, the highest level in the past 10 years and up 7.7 percent from the end of 2016. Meanwhile, the HNX Index was at 86.55 points, an increase of 8 percent.At the end of February, a total of 708 stocks and fund certificates were listed on the two stock exchanges and 485 stocks were traded on the UPCoM market with the total listed value reaching nearly 778 trillion VND (35 billion USD), up 7 percent from the end of 2016.The market liquidation has improved with the average transaction value of 7.365 tril-lion VND each session, up 49 percent from the same period last year and 6.6 percent compared with the average level of 2016.In the first two months of 2017, the capital mobilisation on the stock market reached 40.7 trillion VND (1.8 billion USD), a year-on-year reduction of 27 percent but the cap-ital mobilisation in February increased 79 percent from that of January.Relating to new products like derivatives, the SSC chair said the legal framework for the derivative market has been basically put in place and guidelines on listing, trans-acting, membership, and clearing have been completed by the HNX and the Vietnam Securities Depository (VSD).VSD deputy general director Duong Ngoc Tuan said about 10 companies have met re-quirements to join the derivative market.Chair Vu Bang also noted that after some investment funds withdrew capital from Vi-etnam in the last months of 2016 due to expectations of Fed raising interest rate and the US dollar gaining value, since early this year, foreign investors have bought 1.545 tril-lion VND (69 million USD) worth of shares and fund certificates and 5.960 trillion VND (267 million USD) worth of bonds.In the first month of 2017, the total portfolio value of foreign investors reached 18.4 bil-lion USD, the highest-ever level.http://en.vietnamplus.vn/stock-market-capitalisation-hits-record-high/108426.vnp

VN Index ends four-day rally


The benchmark VN Index sank for the first time in the last five sessions on Thursday as oil and gas stocks slumped on the back of global oil losses.On the HCM Stock Exchange, the VN Index edged down 0.11 per cent to close at 715.8 points. The southern market index had gained 1.3 per cent in the past five sessions.Large-cap stocks saw a divergence as major firms like dairy giant Vinamilk (VNM), brewery Sabeco (SAB), insurer Bao Viet Holdings (BVH) and real estate developer Vin-Group (VIC) lost value under high selling pressure.Due to drops in global oil prices, big energy firms such as PV Gas (GAS), PetroVietnam Drilling and Wells Service (PVD), PetroVietnam Technical Service (PVS) and PetroVi-etnam Drilling Mud (PVC) declined between 1.7 per cent and 2.4 per cent.The US West Texas Intermediate (WTI) crude was down 5 per cent on Wednesday to $50.13 per barrel, while Brent crude fell 4.4 per cent to $53.1 a barrel. The heavy losses were attributed to the Energy Information Administration (EIA)'s report showing US crude inventories rose by 8.2 million barrels in the week ending March 3, far exceeding analysts' expectations for an increase of just two million barrels.This lifted total US stockpiles to a record of 528.4 million barrels, excluding its strategic petroleum reserves.However, oil prices slightly increased on Thursday in Asia thanks to positive news concerning the output cut deal of the Organisation of the Petroleum Exporting Coun-tries (OPEC).According to Bao Viet Securities Co, oil prices are unlikely to drop further as the OPEC


BU

SIN

ES


output deal is having an impact. "Oil prices may record a slight recovery in the next sessions," analyst Tran Duc Anh wrote in a report on Thursday.On the bright side, bank stocks performed well and cushioned the market. Out of nine listed banks, only Eximbank (EIB) and Sacombank (STB) slipped; others increased slightly, led by Military Bank (MBB) up 3.2 per cent while Vietcombank (VCB) and Vi-etinbank (CTG) rising by less than 1 per cent.On the Hanoi Stock Exchange, the HNX-Index extended a rally to three consecutive days, up 0.21 per cent to end at 87.72 points, lifting the three-day growth to 1.3 per cent.Liquidity remained high with a total of 238 million shares worth a combined VND4.2 trillion ($184.2 million) traded in the two markets.Foreign investors were net sellers for VND66.3 billion in the HCM City's market on Thursday but they picked up shares worth a net value of VND4.5 billion on the Hanoi exchange.http://bizhub.vn/markets/vn-index-ends-four-day-rally_284682.html

VN Index down, HNX-Index up


Differing fortunes for two markets on March 9.The main indexes on Vietnam stock market had a mixed day on March 9.On HSX, the VN Index lost 0.8 points (0.11 per cent) while the VN30-Index 2.58 in-creased 1.82 points (0.27 per cent). The VNMid-Index fell 2.43 points (0.27 per cent) and the VNSml-Index 1.26 points (0.16 per cent).On HNX, the HNX-Index gained 0.18 points (0.21 per cent) while the HNX30-Index lost 0.2 points (0.13 per cent). The UPCoM-Index increased 0.16 points (0.28 per cent) and the VNALL-Index 0.65 points (0.06 per cent).HSX saw a 114 point increase followed by a 136 point decrease while HNX saw a 135 point increase followed by a 124 point decrease.Liquidity on HSX reached VND3.4 trillion ($150 million), 6 per cent higher than yes-terday, and on HNX was VND357 billion ($15.6 million), 35 per cent lower.The VN Index opened at 716.6 points and fell to 715.4 points before rising to its peak of the day of 718.2 points early in the session then fluctuated and closed at 717.5 points. In the afternoon it fell early on to its bottom of the day of 715.4 points before recovering to finish the day at 715.9 points.MSN was the only food and beverage share to increase, by 0.1 per cent, while KDC and SBT closed at their opening price and BHN lost 1.4 per cent, SAB 1.3 per cent, and VNM 0.1 per cent.In banking, MBB increased 3.2 per cent, BID 1.2 per cent, and CTG and VCB 0.3 per cent.In energy, GAS and CNG fell 1.7 and 1.3 per cent, respectively, while PGD rose 1.2 per cent.No real estate shares closed higher, with NVL and DXG closing at their opening price and FLC losing 6.5 per cent, KBC 2.3 per cent, KDH 1.1 per cent, and VIC 0.7 per cent.Among other large caps on HSX, HPG increased 1.8 per cent, ROS 1.2 per cent, and VJC 0.5 per cent. MWG and BVH fell 0.5 per cent and 0.2 per cent, respectively.ROS was the highest traded share on HSX, with VND686 billion ($30.1 million) chang-ing hands. FLC followed, with VND262 billion ($11.5 million). The largest cap, VNM, saw trade of VND53 billion ($2.32 million).On HNX, VNR and ACB increased 5.7 per cent and ACB 0.4 per cent, respectively. VCG, PVI, SHB and PHP closed at their opening price while NTP lost 2.3 per cent, PVS 1.7 per cent, and VCS 0.4 per cent.Foreign investors net sold on HSX by VND66 million ($2.9 million) and on HNX by VND4.5 billion ($197,370).http://vneconomictimes.com/article/banking-finance/vn-index-down-hnx-index-up

VietJet taking off on HOSE runway


Endorsed by a February 28 Hochiminh Stock Exchange (HOSE) decision on listing which marked the first transaction day of Vietjet Aviation Joint Stock Company's VJC


BU

SIN

ES


shares, Vietjet has become the first aviation company to be listed on Vietnam's south-ern bourseVietjet shares listed on HOSEBacked by charter capital of VND3 trillion and a price of VND90,000 per share, Vietjet's capitalisation at the moment of its HOSE listing reached VND27 trillion, or $1.2 billion, accounting for 1.5 percent of HOSE's capitalisation (some VND1.63 million billion by February 15, 2017). That means Vietjet is now among the top-15 of listed firms with the largest capitalisation value on HOSE. Of the 24 international credit institutions having bid for VJC shares are famed investment funds such as GIC, Wellington, Eaton Vance, Morgan Stanley, Dragon Capital and VinaCapital. Foreign investors have so far clinched 24.48 percent of VJC shares versus the 30 percent rate they are allowed to.Statistics show that in 2016, Vietnam's aviation transport market posted a growth rate of 29 percent while the ratio of the population taking a flight rose from 0.5 percent in 2012 to 0.8 percent last year. Vietjet is Vietnam's first private aviation company and is also one of the very few airlines in the world which are able to reap profit immediately in the second year of operation. When 2016 came to an end, Vietjet grossed a total turn-over of more than VND27.53 trillion, profit of almost VND2.4 trillion and Earnings Per Share (EPS) of VND8,762."Sustaining stable and high growth, we strongly believe in a bright future in the air for our passengers, our company and our investors," said Nguyen Thi Phuong Thao, CEO of Vietjet, at the ceremony in celebration of VJC first trading session. "Vietjet is to be-come an airline targeting corporate governance quality and efficiency of listed compa-ny in line with the world's best standards and practices. In addition to new values for passengers, we want to do the same to investors and both domestic and international capital markets."VJC taking offVJC's share price rose to the 20 percent price ceiling during its first trading session, to VND108,000 per share, with only 12,000 shares transferred. Unsuccessful buying or-ders at price ceiling amounted to 3-4 million units. The same happened in the two fol-lowing sessions when a very small number of shared were traded, mainly between foreign investors. In the fourth session, transactions boomed, and the closing price stood at VND132,100 per share. Liquidity was at 2,75 million shares, equivalent to VND395 billion, making up over 12 percent of the market's total transacted value.On the morning session of March 6, despite a hike of almost 50 percent from the initial price, VJC continued its gaining streak of more than 4 percent to soar to VND137,400 per share boosted by foreign demand. Of the total 1.15 million VJC shares traded in or-der matching on the March 6 session, the foreign side bought 524,400 shares, account-ing for almost a half of the total transacted volume. In the entire session, foreign investors net-bought 198,400 VJC shares, marking the fifth consecutive net-buying ses-sion. Given this level, VJC price gained 52.6 percent since its first launch while its cap-italisation reached VND41.2 trillion, surpassing that of Vietnam Airlines (VND39.77 trillion).That said, after five trading sessions, Vietjet's shares have earned profit of 59 percent for individual investors who bought VJC shares in December 2016. However, with more than 4.2 million shares traded in order matching after a week on HOSE, it seems that investors still want to retain their shares waiting for even better prices.Bright prospect forecastsDuring the HOSE gong-beating ceremony for Vietjet, Jasper Reiser, Co-head of Asia Pacific Equity Capital Market of BNP Paribas, said BNP Paribas has participated in the team of international consultants in support of Vietjet's IPO. This event attracted spe-cial interest from both domestic and international investors, said Reiser. The success testifies to the management and business operations of the company's leadership as well as its exponential growth, he added.According to the International Aviation Transport Association, the Asia Pacific region has topped the world's aviation market since 2009.Given Vietnam's young and big population, the disposable income of her citizens post-


BU

SIN

ES


ing the highest rate in the region and the lukewarm development of other transport modes such as overland, railway and waterway, Vietjet and other airlines have favour-able conditions for development in the Vietnamese market.Currently, the remaining cap of foreign ownership ratio for VJC shares is only over 4 percent while foreign investors are continuing to buy them. GIC owned by the Singa-porean government is now the largest foreign investor to hold VJC shares, at 5.48 per-cent. Meanwhile, Dragon Capital has spent nearly VND1 trillion buying the shares. VJC shares also account for almost a half of HSC's propriety trading portfolio. Many foreign investors have managed to buy more or less 50 percent of the volume of VJC shares traded during the last December's issue.Considering big capitalisation, high profit ratio, institutional investors, promising scope of business and so on, VJC shares seem to be so attractive to investors.

Derivatives market coming in May or June


Vietnam's derivatives market will start operating in May or June in hopes it will improve Vietnam's securities market and attract more foreign investment, according to the Chair of the State Securities Commission, Vu Bang.Bang said at a meeting yesterday in Hanoi that the legal framework for the derivatives market has been completed. For example, the finance ministry loosened the regulation on investors' margin deposit accounts, and an amended circular on the matter could be issued this month.Bang added that the Hanoi Stock Exchange (HNX) and the Vietnam Securities Deposi-tory (VSD) had completed developing regulations on the listing, trading, settlement and membership, and those regulations could also go into effect this month.The trading and settlement systems have been tested and they are now stable and ready for market operation, Bang said, adding that there are 16 brokerage companies ready for the derivatives market, but only half of them are licensed to participate in the market.Covered warrants are another product expected to become available in September 2017, allowing holders to buy or sell a specific amount of equities, currency or other financial instruments, usually from or to a bank or a similar financial institution, at a specific price and time.The legal framework for this product has been developed, Bang said. HNX and VSD are developing instructions and criteria to monitor the trading system and the establishment of the covered warrant market.Exchanges' mergerBang said that the SSC had submitted a proposal on the merger of the two local exchang-es to the government and ministries for comments. "It is likely the two local bourses will be merged and a parent company will be founded to manage the two subsidiaries, which are the HCM and Hanoi stock exchanges," Bang said.Merging the two would raise the status of Vietnam's securities market from the frontier level to the emerging level, he said.Other tasks ahead include raising foreign ownership in listed companies, simplifying administrative procedures for foreign investors, and disclosing business information in English.Regarding the English information disclosure, Bang said that the SSC would apply the requirement to large-cap firms first because it was difficult to apply it to all listed com-panies, especially small firms.According to the SSC, at the end of February 2017, 708 companies and fund certificates were listed on the two local exchanges, and 485 stocks were traded on the Unlisted Pub-lic Company Market (UPCoM) with total listing value of nearly VND778 trillion (US$34.57 billion), an increase of 7 per cent from the end of 2016.The securities market's capitalisation reached more than VND2.26 trillion (50.3 per cent of Vietnam's gross domestic product) - the highest since 2000 and an increase of 16 per cent from 2016's end of the year figure.Market trading liquidity also improved, with a daily average trading value of VND7.36 trillion, an increase of 6.6 per cent from last year's average.


BU

SIN

ES


F&N looks to buy 21.7 million more Vinamilk shares


Singapore-based F&N Dairy Investments Pte Ltd (F&N) has registered to buy shares of Vietnam Dairy Products Joint Stock Company (Vinamilk) for the third time, asking for 21.77 million shares, equivalent to a 1.5 per cent stake of the dairy firm's capital.The transaction is expected to take place between March 10 and April 7 via the auction and negotiation methods.F&N also registered to purchase 21.77 million shares during February 6 - March 7 but only picked up 4.11 million, lifting its Vinamilk shares to 218.8 million, an estimated 15.07 per cent of the total shares.The company said it could not buy all the number of shares that it had sought then be-cause of unfavourable market conditions.Vinamilk's price fluctuated between VND126,700 and VND134,100 (US$5.69 and $6.02) per share during the F&N's purchase time, lower than the VND144,000 ($6.47) per share that F&N accepted during the auction hosted by the State Capital and Invest-ment Corporation (SCIC) at the end of 2016.If the upcoming purchase succeeds, F&N will own 240.6 million Vinamilk shares, or 16.57 per cent of the total shares.Vinamilk was established in 1976 and was listed on the stock market in 2006. At the price of VND130,600 a share on Wednesday, the company's market capitalisation is VND189.6 trillion ($8.3 billion).Currently, Vinamilk's foreign ownership stands at 53.68 per cent, of which the F&N group and its subsidairy firm F&N BEV Manufacturing own 17.77 per cent, being Vinamilk's second largest shareholder, after the SCIC.F&N is a subsidiary of Fraser & Neave Corporation, Singapore's largest beverage pro-ducer, and is owned by Thai business tycoon Charoen Sirivadhanabhakdi.http://bizhub.vn/markets/fn-looks-to-buy-217 million-more-vinamilk-shares_284656.html

Finance-banking sector lifts local markets


Shares advanced marginally on Thursday morning in both local markets, driven by fi-nancial-banking stocks.The benchmark VN Index on the HCM Stock Exchange index inched up 0.1 per cent to close at 717.51 points. It has gained 1.3 per cent over the past four days.The HNX Index on the Hanoi Stock Exchange edged up 0.3 per cent to end at 87.78 points, after a two-day rise of 1.1 per cent.Market trading liquidity was moderate with more than 127 million shares worth VND2.31 trillion (US$102.9 million) being traded.The VN30 Index, which tracks the performance of the 30 largest listed companies by market capitalisation, went up 0.6 per cent, while the VNSML Index inched down 0.1 per cent, showing signs that investors were switching from small- and medium-cap stocks to blue chips.Financial-banking stocks were the main factor that lifted the two local exchanges. Among the nine listed banks, Vietcombank (VCB), Asia Commercial Bank (ACB), Bank for Investment and Development of Vietnam (BID), Vietinbank (CTG) and MB-Bank (MBB) gained. Brokerage firms also performed well. HCM City Securities Corp (HCM) and Sai Gon Securities Inc (SSI) led the sector's growth, rising by 2.4 per cent and 2.6 per cent, respectively. The two leading brokers were followed by Sai Gon-Ha-noi Securities Corp (SHS) and VNDirect Securities Corp (VND).In the insurance-finance industry, Vietnam National Reinsurance Corp (VNR) and Bao Viet Holdings (BVH) gained, giving the sector a leg up.http://bizhub.vn/markets/finance-banking-sector-lifts-local-markets_284659.html

Vietnam Rubber Group to offer 25pct capital in Q2 IPO


The Vietnam Rubber Group (VRG) will offer 25 percent of its capital during its upcom-ing initial public offering (IPO), scheduled in the second quarter of 2017, the group has announced.


BU

SIN

ES


The amount of shares, equivalent to 10 trillion VND (438.6 million USD), will be sold to the company's employees, as well as the public.The timetable for the first phase of the equitisation has not been disclosed, but will not occur later than June, as set by the Ministry of Agriculture and Rural Development (MARD).VRG general director Tran Ngoc Thuan said, due to the huge amount of equitised cap-ital, the group's shares would be sold to strategic investors in the second phase, after developing criteria for selecting strategic investors.Important criteria will include financial capability and business areas which should be similar to VRG's operation, Thuan added.He noted that many parties had registered to become strategic investors, but they would be scrutinised by MARD and prime minister Nguyen Xuan Phuc before receiv-ing approval."The list will be disclosed in the future," Thuan said.According to the decision of the prime minister, VRG will have to equitise the group and its 20 member companies.In mid-January, deputy minister of Agriculture and Rural Development Ha Cong Tuan urged VRG to divest by June 2017.Last year, the rubber group successfully sold stakes in two subsidiaries, the Tan Bien and Ba Ria limited companies, as well as divested from 24 non-trade units, collecting more than 2.9 trillion VND.In 2017, VRG has targeted to earn 4.2 trillion VND in pre-tax profits, a year-on-year in-crease of 47 percent, despite industry forecasts of challenges due to the unpredictable impacts of climate change.http://en.vietnamplus.vn/vietnam-rubber-group-to-offer-25-percent-capital-in-q2-ipo/108403.vnp

PV Oil to sell 40pct stake to investors

10/MAR/2017 INTELLASIA | REUTERS

Vietnam's state oil company PetroVietnam Oil Corp (PV Oil) plans to sell a 35-40 per-cent stake to strategic investors and expects to raise at least $270 million, it said on Thursday.The privatisation of PV Oil, Vietnam's only crude oil exporter and its second-biggest oil products retailer, has been highly anticipated by investors as the government tries to open up the oil and gas sector and raise money through the sale of stakes in state firms.Major oil companies from Japan, South Korea, Thailand and the Middle East have ap-plied to buy shares, a company official said in an email to Reuters. It did not identify them.It plans to draw up a list of five potential bidders to submit to the government this month.PV Oil also plans to offer an additional 10-15 percent in an initial public offering in the first half of this year, before or at the same time as the stake sale to strategic investors, it said.It plans to list its shares on the Ho Chi Minh stock exchange.Vietnam, which is slowly opening up its domestic market to considerable investment interest, has completed several major share sales and listings in recent months.PV Oil's biggest rival in the petroleum retail sector, Petrolimex, last week said it ex-pected to list shares on the local stock market next month, potentially giving the firm a valuation of around $2.3 billion.The operator of Vietnam's Dung Quat oil refinery also aims for an initial public offer-ing in the third quarter of 2017, its chief executive told Reuters.http://www.reuters.com/article/pv-oil-ipo-idUSL3N1GM3F8

ACV yet to sell stake to ADP


Airports Corporation of Vietnam (ACV) has not sold a 20 percent stake to French firm Aeroports de Paris (ADP) as the two sides are still in talks.


BU

SIN

ES


In response to media reports that ADP had already acquired the 20 percent stake, ACV on March 8 said the negotiations are still ongoing. The corporation's general director Le Manh Hung told the Daily that the government had allowed ACV to hold talks with ADP over the stake sale and that the two sides have yet to finalise the deal.Minister of Transport Truong Quang Nghia and ADP chair and CEO Augustin de Ro-manet met last Thursday to discuss the stake acquisition and requirements for the French group to become a strategic shareholder of ACV.De Romanet was quoted by the transport ministry's website as saying that the negoti-ation process was near completion as the two parties had agreed on key contract terms and cooperation modes in the future.However, ACV and ADP will need more time to discuss certain Vietnamese govern-ment policies and regulations on the role, rights and functions of ACV when the cor-poration operates as a joint stock company. ADP also wanted to know more about the country's policies applicable to the aviation sector in the future.Nghia said the ministry would create favourable conditions for ADP and ACV to quickly complete the talks and sign a cooperation agreement. They also reached a con-sensus on removing all hurdles to pave the way for the signing of the contract.At ACV's first meeting for shareholders in March last year, shareholders allowed the corporation to sell 166,155,494 shares at a price of at least VND13,100 per share to ADP. The stake will not be transferrable over a period of 10 years.ADP will acquire a 7.4 percent ACV stake worth some VND2.2 trillion if a share is priced at VND13,100.ACV, which operates 22 airports in Vietnam at the moment, reported nearly 81 million passengers went through these airports in 2016, up 28 percent over 2015. Of the total, international passengers accounted for 24 million. It met or beat its revenue, profit and tax payment targets last year.ACV expects the airports to handle 91 million passengers this year, a year-on-year in-crease of 13 percent. The number includes 27 million foreigners.

Budget airline and Air France agree on spare parts and accessories


Low cost carrier Jetstar Pacific Airlines (JPA) has signed a long term deal with Air France Industries KLM Engineering & Maintenance (AFI KLM E&M) to buy spare parts and accessories for its A320 fleet in Vietnam.JPA said in a statement that the March 8 agreement will serve its 14 Airbus A320 air-craft.JPA's general director Nguyen Quoc Phuong, said the deal would help the budget air-line reduce maintenance and repair costs and thus improve its services.AFI KLM E&M's senior deputy president, Fabrice Defrance, said the agreement pro-vides a foothold for the company as a major spare parts and accessories supplier of Airbus A320 in Asia.AFI KLM E&M, which provides spare parts for 2,000 Airbus A320 aircraft of 20 airlines worldwide, will start providing them to JPA this month.Jetstar Pacific has grown from five aircraft in 2013 to 14 today, and flies on 28 domestic and international routes.The two major shareholders of the airline, Vietnam Airlines and the Qantas Group, ex-pect the fleet to grow to 30 aircrafts by 2021.In 2015, JPA and Lufthansa Technik AG signed a three-year comprehensive engine maintenance agreement.Under the terms of the contract, the HCM City-based low-cost carrier will have the V2500 engines of its Airbus A320 family fleet overhauled by Lufthansa Technik.

EVN to gauge consumer satisfaction


The Electricity of Vietnam Group (EVN) this month has plans to sign an agreement with the Vietnam Chamber of Commerce and Industry (VCCI) to gauge consumer sat-isfaction, the group said.EVN said, in January 2017, it began supplying electricity used for daily life to 20,000


BU

SIN

ES


new customers in urban areas, 45,000 customers in rural areas and for production to over 16,000 customers.In the past two months, EVN's customer care centres have received and dealt with more than 252,700 requests from customers.According to EVN, in March, the system's average transferred electricity output is 536 million kWh per day.In the two months, the group's total electricity output, including purchased power, was 26.56 billion kWh, up 7.4 per cent from the same period last year, of which hydro-electricity accounted for 35.8 per cent, coal-fueled thermal power 39.7 per cent and gas-fuelled turbines 23.3 per cent.Commercial electricity output exceeded 25 billion kWh, an increase of 8.1 perc ent, of which electricity for industry and construction increased by 10.6 per cent, electricity for business and production rose by 6.7 per cent, agriculture climbed by17.9 per cent, and management and consumption was up 4.5 per cent.EVN also worked with the general Department of Irrigation to release 4.67 billion cu.m of water to serve the winter-spring crop agricultural production for the midland and Red River Delta provinces.Online servicesEVN Hanoi also announced that customers in the capital city of Hanoi who want to register for electricity supply from this month can register online instead of visiting the offices.Customers just need to visit the corporation's website or the customer care website where they will be guided on the necessary procedures.Following registration, the company's staff are responsible for receiving, confirming requests and transferring to the online management system for power supply of EVN Hanoi.The procedure will take some three to five days. According to EVN Hanoi, the appli-cation of information technology in providing power has many benefits, such as re-duction in travelling costs and convenience in record storage management.On installation costs, customers do not have to go to the transaction office but can pay via banks. At the same time, after completing the registration for electricity use, cus-tomers can also choose ways of payment for monthly use.EVN Hanoi also recommends customers monitor and send comments through the group's customer care centre switchboard at 19001288 or 04.22222000 to help enhance quality of the new service.http://bizhub.vn/news/evn-to-gauge-consumer-satisfaction_284660.html

ACV prepares 5-year investment plan

10/MAR/2017 INTELLASIA | DTI NEWS

Airports Corporation of Vietnam (ACV) has announced an investment plan for five years (2016-2020) with capital of VND31.6 trillion ($1.4 billion).It will focus investment in airports that have high growth potential for tourism and play an important role in national security. Infrastructure will be upgraded at airports such as Tan Son Nhat International Airport in HCM City, Noi Bai International Airport in Hanoi, and Da Nang International Airport.ACV also plans to expand aircraft aprons and hangars at Tan Son Nhat, Da Nang, Noi Bai, Lien Khuong, Buon Me Thuot, Can Tho, and Con Dao airports.It submitted the plan to the Ministry of Transport and is waiting for approval from the government. Last year it proposed an increase to aviation service charges this year, which would mainly affect passengers of domestic flights leaving or arriving at Tan Son Nhat, Noi Bai, Cam Ranh, Phu Quoc, Vinh and Phu Bai airports. The plan, how-ever, has not yet been approved.The Vietnamese government has recently granted permission to Aeroports de Paris (ADP) to buy 20 per cent of ACV and become its strategic partner. The contract is ex-pected to be finalised shortly.Prime minister Nguyen Xuan Phuc met Augustin de Romanet de Beaune, Chair and CEO of ADP, last week and pledged to create favourable conditions for the strategic


BU

SIN

ES


partnership.ACV needs to raise capital to improve Vietnam's airport infrastructure. It is expected to invest $16 billion in building Long Thanh International Airport in Dong Nai prov-ince over the next decade to ease overloading at Tan Son Nhat. ADP has also expressed interest in investing in the project.ACV's chartered capital stands at VND21.7 trillion ($951 million). It expects to list 2.1 billion shares on the HCM City Stock Exchange (HoSE) later this year.In November last year it entered the Unlisted Public Company (UPCoM) market un-der the code ACV, with a total of 2.18 billion shares and a registered stock value of more than VND21.7 trillion ($976.5 million).ACV is a joint stock company operating under the form of the parent - subsidiary com-pany, with the State holding a majority stake. In October 2015, the government ap-proved its equitisation plan, with State ownership to fall to 75 per cent. In March this year it held its first shareholders meeting.It is the largest enterprise by charter capital on UPCoM and manages 22 airports throughout the country, of which seven are international and 15 domestic, with 21 be-ing directly managed by the corporation, and it also has a range of joint ventures with other companies.http://www.dtinews.vn/en/news/018/49852/acv-prepares-5-year-investment-plan-.html

SASCO: Duty-free sales profit up 20-fold in 2016


Higher sales and other revenue combined with lower costs result in stellar 2016 for SASCO.Profits from duty-free sales at airports increased 20-fold in 2016 compared to 2015, ac-cording to the fourth quarter consolidated financial report from the Southern Airports Services Joint Stock Company (SASCO). SASCO earns VND20 billion ($877,307) in profit each month from duty-free sales and other business activities.Revenue was VND2.08 trillion ($91.5 million) in 2016 as a whole, an increase of 4 per cent against 2015. Revenue from duty-free sales was VND1 trillion ($43.86 million), while revenue from airport shops was VND555 billion ($24.34 million).While revenue increased only slightly, after-tax-profit increased dramatically, reach-ing VND233.9 billion ($10.28 million), which is 20 times higher than its after-tax-profit in 2015. This is the first time SASCO's profit has spiked since it listed on the UPCoM market.Another reason it's profit rose sharply is that financial revenue in 2016 rose from VND110 billion ($4.82 million) in 2015 to VND174 billion ($7.63 million). SASCO re-corded profit from capital transfers and trading in securities of VND101 billion ($4.42 million). However, financial fees rose slightly, to VND56 billion ($2.45 million), or by VND7 billion ($307,020), compared to 2015.Sales costs stood at VND473 billion ($20.73 million), up VND80 billion ($3.5 million) compared to 2015. However, the company cut administrative costs to VND245 billion ($10.74 million), so sales cost came down to VND213 billion ($9.34 million).SASCO was previously the Southern Airport Services Company. It held an initial pub-lic offering (IPO) in 2014. Its strategic partners are three companies belonging to Johnathan Hanh Nguyen. His wife, Le Hong Thuy Tien, is a member of its Board of directors.Airports Corporation of Vietnam (ACV) has sold 1.56 million SASCO shares (stock code SAS), bringing its ownership down from 51 per cent to 49.81 per cent.http://vneconomictimes.com/article/business/sasco-duty-free-sales-profit-up-20-fold-in-2016

Wood processors: Export prospect bright


Many wood processing companies have expressed optimism that exports of wooden goods this year will be much higher than last year.Speaking at the Vietnam International Furniture and Home Accessories Fair (VIFA


BU

SIN

ES


EXPO) 2017, which opened on March 8, Nguyen Sy Hoe, deputy general director of Phu Tai Joint Stock Co (JSC), forecast his company's export turnover could grow 20 percent against 2016.Around 90 percent of the enterprise's wooden products would go to the US and the European Union, and the remainder to Japan, Brazil and the Middle East, he said.He added his firm had received orders which would keep its workers busy until next June or July. To meet growing demand, the company has been developing a wood processing plant in Binh Dinh Province with total capital of around VND140 billion to expand its capacity by 20 percent.David Tai, deputy general director of Lam Hiep Hung JSC, said his firm has mainly exported to the European, American and Australian markets. The company's export volume this year is expected to double last year, and the US is a major market.A&M Flooring Co Ltd also projected the company's export sales would rise 10 percent to 15 percent year-on-year. The majority of its products are shipped to Japan (around 70 percent), South Korea, and Europe.Shipments of wooden products are predicted to go up this year as a number of free trade agreements to which Vietnam is a signatory would give new momentum to wood export growth, said Huynh Van Hanh, vice chair of the Handicraft and Wood Industry Association of HCM City (HAWA).If Vietnamese firms meet a small fraction of the world's demand for furniture, the wood processing sector could obtain $8 billion in export revenue this year, he said.The wooden furniture and handicraft industry has made significant headway in recent years. The export value of wooden products reached nearly $7 billion, making the sec-tor one of the top ten export earners, said Bui Huy Son, head of the Vietnam Trade Pro-motion Agency under the Ministry of Industry and Trade.Vietnam's total export turnover amounted to $176.63 billion last year.Co-held by the HCM City Department of Industry and Trade, HAWA, and Lien Minh Wood Handicrafts Joint Stock Co, the four-day fair is taking place from March 8 to 11 at the Saigon Exhibition and Convention centre in HCM City's District 7, featuring more than 1,500 booths of 313 domestic and international exhibitors, up 24 percent and 23 percent year-on-year respectively.The event features 100 foreign brands, up 72 percent over last year. They come from countries and territories with large woodworking potential and supporting industries such as Singapore, the US, Australia, Canada, Denmark, Italy, Hong Kong, Ireland, South Korea, Luxembourg, Malaysia and New Zealand.http://english.thesaigontimes.vn/52769/Wood-processors-Export-prospect-bright.html

VIGroup invests in Congnhadat.net


Group to pour $2 million Series A funding into real estate platform.The HCM City-based investment firm Vietnam Investment Group (VIGroup) is lead-ing a $2 million Series A funding round in the O2O real estate platform Congnha-dat.net, founder of the realty portal, Vu Lam Chi Duc, told VET.This comes after Do Huy Dung, investment partner at VIGroup, came on board as an angel investor in the company's seed round. Australian real estate service provider Re-alestate.com.au also participated in the latest funding round.The shareholders will pick up 15 per cent of Congnhadat.net upon closing the deal, valuing the company at over $10 million. The new funding will be used to build and train his brokerage team, Duc said.He added that the company had planned Series B fundraising later this year, at a $50 million valuation. "A Vietnamese real estate developer and an international media cor-poration have expressed interest in us," he added.Congnhadat.net is working with leading developers in Vietnam, including Vingroup, Nam Long and Hung Thinh Corp. The real estate e-commerce platform claims to have 1,000 transactions and aims to boost the number to 15,000 by the end of this year.Founded in 2016, Congnhadat.net offers real estate services in seven major cities in Vi-


BU

SIN

ES


etnam, with some 230,000 listings of housing properties, and provides information on financial packages for the real estate sector.VIGroup is one of Vietnam's major private equity firms, having invested in a legion of industries in the country, including manufacturing, transport, hospitality, education, retail, affordable housing, technology, media and entertainment, and finance.It has over $500 million in assets under management and typically targets holding mi-nority stakes in companies over a four- to six-year investment.The resurgence of Vietnam's real estate market over the last year has been a catalyst for tech business in the field. Singapore's PropertyGuru invested an undisclosed sum in Batdongsan.com.vn last October as part of its regional push, with the deal seeing Cy-beragent Ventures exit the Vietnamese real estate portal.A similar platform, called Gachvang.com, raised $500,000 in seed funding last year from a consortium of angel investors.http://vneconomictimes.com/article/banking-finance/vigroup-invests-in-congnhadat-net

SMEs get support to participate in public procurement market


The Public Procurement Agency (PPA) on Wednesday launched a project to improve the skill of its staffs in implementing public procurement and enabling small- and me-dium-sized enterprises (SMEs) to participate.The project, launched in Hanoi by the Ministry of Planning and Investment's PPA, is a cooperation with South Korean Public Procurement Service (PPS), Export-Import Bank of Korea (KEXIM Bank) and WTO's International Centre for Trade (ICT/WTO). It aims to increase Vietnamese investors' and contractors' knowledge about public pro-curement across the world.The South Korean partners will share their experiences in building and developing the public procurement system.Nguyen Dang Truong, director of PPA, said SMEs account for a large portion of Viet-namese business, and the government is focusing on providing support to encourage SMEs to participate in the public procurement market. However, SMEs have limited acknowledge about laws and regulations regarding public procurement. "The project will be useful for SMEs to join the market," Truong said.http://bizhub.vn/news/smes-get-support-to-participate-in-public-procurement-market_284681.html

Vietnam, Australia strengthen livestock breeding ties


The Ministry of Agriculture and Rural Development's Department of Animal Hus-bandry and Meat and Livestock Australia (MLA) have jointly organised a two-day ex-hibition-cum-conference on beef and dairy cattle in HCM City.Speaking at the inauguration on Wednesday, Hoang Thanh Van, head of the Depart-ment of Animal Husbandry, noted that there was strong growth in cattle breeding in Vietnam, with an average annual 7.5 per cent rise in the number of dairy cows and a 3 to 5 per cent increase in beef cattle.The breeding farms have expanded in scale, he said.However, Van said the sector has met only 6.5 per cent of the local demand for beef and 36 per cent of the country's demand for milk, which has led to a sharp rise in im-port of dairy and beef cattle, mostly from Australia.Australian Ambassador to Vietnam Graig Chittick said that Australia and Vietnam had a long-standing cooperation in cattle breeding, in areas such as provision of breed-ing stock, transfer of breeding techniques and expert training.Chittick said the cooperation and trade in this sector between Australia and Vietnam as well as other Asian countries would lay the foundation for maintaining a sustaina-ble supply chain of milk and beef amidst increasingly fierce competition.The event gives Vietnamese management officials, scientists, enterprises and cow-breeding farmers a good opportunity to check out Australia's new products, services and technology in the livestock breeding sector.


BU

SIN

ES


During the two-day event, products related to livestock breeding will be showcased, and various workshops will be held on breeding technologies.http://bizhub.vn/news/viet-nam-australia-strengthen-livestock-breeding-ties_284665.html

Two foreign firms interested in steel sector consultation


Japan's Deloitte and Germany's Roland Berger consulting firms are interested in offer-ing their services to draw up Vietnam's steel sector master plan, the Ministry of Indus-try and Trade said.The ministry's Department of Heavy Industry said that in the end of February, the two consulting firms had sent letters expressing interest. The two foreign firms are eligible to become consultants who can help with the master plan, it said, adding that it has put in place an advisory team to select the suitable agency based on their capabilities.It will be the selected consulting firm's job to determine the development trend of the steel sector in the world and the region. The firm will also have to assess Vietnam's competitiveness in the sector compared to other countries, help choose contractors and technologies and evaluate the environmental impact of implementing the master plan.The department said that before this a foreign consulting firm has not been hired to draw up the master plan. It hopes that an independent overseas company will be able to offer an objective view about the country's steel sector.On December 28, 2016, minister of Industry and Trade Tran Tuan Anh approved the department's draft of the master plan for steel production till 2025, with a vision till 2035.http://bizhub.vn/news/two-foreign-firms-interested-in-steel-sector-consultation_284661.html

Auto sales slide 13pct due to low post-holiday demand


Total automobile sales in February fell 13 percent from a month earlier to 17,621 units, according to Vietnam Automobile Manufacturers' Assocation (VAMA).Out of the total, 10,044 units were passenger cars, down 32 percent; 6,344 units were commercial vehicles, up 24 percent; and 1,233 units were special-purpose vehicles, up 220 percent, VAMA said in a report released on March 8.The February sales of completely-built units (CBUs) were at 14,560, a decrease of 6 per-cent against January, while more than 3,060 complete knock down units (CKD) were sold last month, down 35 percent.Domestic manufacturer Truong Hai Auto Corporation (Thaco) led VAMA members with 7,724 units sold, a year-on-year increase of 85 percent. The car maker and import-er accounted for 45 percent of the country's market share.Thaco was followed by Toyota Vietnam with 3,579 units, up 51 percent year-on-year and representing 21 percent of the market share.Ford Vietnam came third with 1,881 units, up 26 percent year-on-year and accounting for 11 percent of the market share.Total automobile sales in the first two months of 2017 rose 8 percent from the same pe-riod last year to 37,851 units with passenger cars and special-purpose vehicles up 21 percent and 5 percent, respectively, while commercial vehicles dropped 11 percent. The number of CBUs sold expanded 13 percent while CKD slid 5 percent.The contractions in February sales were largely due to lower demand for cars after Tet, the biggest holiday of the year which usually witnesses peak demand for cars.http://en.vietnamplus.vn/auto-sales-slide-13-percent-due-to-low-postholiday-de-mand/108396.vnp

Workshop spotlights sustainable seaweed cultivation


Managers, experts and producers of the seaweed business gathered to discuss growth outlook for the sector at a workshop held by the directorate of Fisheries in Nha Trang city, the south central province of Khanh Hoa, on March 9.According to the aquaculture division, Vietnam is home to over 800 seaweed species,


BU

SIN

ES


with total natural reserves estimated at between 80 and 100 billion tonnes. However, the reserves are declining due to over exploitation and environmental pollution.A representative from the Research Institute for Marine Fisheries said that seaweed harvest must follow right seasons and techniques to improve yield and protect the sources.He proposed building seaweed reserves to protect genetic sources.As heard at the function, seaweed cultivation in the country span over 10,000 hectares, mostly in northern and central coastal areas, and produce more than 101,000 tonnes of fresh seaweed per year.Participants agreed that there is a need to expand the farming area spanning the coast-al line across Vietnam, apply advanced technology in seaweed production, and diver-sify away from current products.Le Nhut, head of the Dai Duong JSC - a company majors on seaweed planting, process-ing and exporting, said the business brings in high profit at low risk, but requires strong investment.He noted that the State should devise policies to support farmers in accessing prefer-ential loans and encourage small-scale producers to work together, forming supply chains.http://en.vietnamplus.vn/workshop-spotlights-sustainable-seaweed-cultivation/108430.vnp

Coffee fair attracts 234 domestic, foreign exhibitors


As many as 234 domestic and foreign enterprises are showcasing their top-quality products at a coffee fair which opened in the Central Highlands province of Dak Lak on March 9.On display at the five-day event, themed "High-quality coffee for public health", are various kinds of coffee, products made from coffee, handicrafts and coffee processing machines.Famous coffee brands like Buon Ma Thuot, Trung Nguyen, Bien Hoa, Nescafe and An Thai, are introducing their new products, which have been favoured by both domestic and foreign markets.Permanent vice Chair of the provincial People's Committee Nguyen Hai Ninh said that the exhibition creates a golden opportunity for enterprises, scientists and farmers to promote trade, investment and technology transfer.Visitors to the fair will have a chance to enjoy coffee products and standout cultural programmes delivered by ethnic minority groups in the region, he added.The fair is being held as part of the activities within the framework of the 6th Buon Ma Thuot Coffee Festival and the Central Highlands Gong Culture Festival 2017, which will open on March 10.With 203,000 hectares of coffee trees producing at least 450,000 tonnes of beans, Dak Lak is known as Vietnam's coffee capital and features the famous Buon Ma Thuot cof-fee brand.Local coffee beans harvested from 2015-2016 crop were shipped to 75 countries and territories worldwide. Top consumers of Dak Lak coffee are Japan, Switzerland and Germany.http://en.vietnamplus.vn/coffee-fair-attracts-234-domestic-foreign-exhibitors/108420.vnp

Pepper growers stop selling on price fall


Pepper prices have plunged to around VND100,000 a kilo in recent days, leading farm-ers to stop selling to wait for better days.Hoang Phuoc Binh, deputy head of the Chu Se Pepper Association in Gia Lai Province, said the current pepper price is much lower than expected, so pepper growers are re-taining their stocks in anticipation of a price rebound.The pepper growing area has been expanded over the years, leading to an oversupply on the market.


BU

SIN

ES


According to the Ministry of Agriculture and Rural Development, the country in the January-February period this year shipped 16,000 tonnes of pepper worth $112 million to foreign markets, down nearly 20 percent in volume and 36 percent in value against the same period last year.The average pepper export price in January stood at $7,492 per tonne, falling 20 per-cent year-on-year.In addition, the Vietnam Pepper Association (VPA) has forecast 2017 would be a diffi-cult year for the country's pepper sector due to price volatility and pepper output in 2016-2017 will amount to 180,000 tonnes.http://english.thesaigontimes.vn/52784/Pepper-growers-stop-selling-on-price-fall.html

New progammes support tourism startups in Mekong region


The Mekong Innovative Startup Tourism (MIST) on March 9 announced two incuba-tion programmes to support innovative firms in tourism in Vietnam, Cambodia, Laos and Myanmar.The tourism startup incubator programme will accept business ideas in tourism tech-nology forms as well as traditional models of startup businesses in the first stage.Representatives of selected startup projects will attend a camp where they develop their business ideas. Best projects of each country will receive MIST awards worth from 7,000 USD to 10,000 USD.Meanwhile, the market access incubator programme is a chance for larger-scaled trav-el firms which are in need of support to access the regional market. Selected project owners will join a fact-finding tour to Mekong River countries to study the market, while being introduced to service providing networks of relevant agencies.Last year, Vietnam welcomed more than 10 million foreign visitors. However, Huynh Kim Tuoc, Executive director of the Saigon Innovation Hub, pointed out that Viet-nam's tourism products remain poor, which should be reformed and diversified to at-tract more tourists.He also underlined the significance of regional connectivity in boosting tourism growth, while suggesting the promotion of advantages of Vietnamese tourism as well as the preservation of the sector's unique characteristics.According to the organising board, the two programmes will receive applications until March 27, 2017. The project owners will have a chance to present their ideas in front of investors and incubators as well as tourism leaders at the Mekong Tourism Forum in June 2017 in Laos and the Apec Economic Leaders' Meeting in November in Vietnam.The MIST is a joint initiative of the Mekong Tourism Coordinating Office and the Me-kong Business Initiative.http://en.vietnamplus.vn/new-progammes-support-tourism-startups-in-mekong-re-gion/108416.vnp

Belgian experts help HCM City to create special beef stock


The Department of Agriculture and Rural Development of HCM City has carried out a programme to improve its beef products by 2020, with a vision to 2030.This information was released at a conference held by the department and the Consu-late of Belgium in the city on March 8.The programme aims to develop high productivity beef stock, improve the quality of beef and provide breeds for other southern provinces.At the conference, several ideas were raised by Belgian experts to improve cow-breed-ing.The programme was launched in accordance of the memorandum of understanding (MoU) between the HCM City People's Committee and East Flanders province of Bel-gium in October 2016 on agricultural cooperation. It will work to improve the value and product quality of high technology agriculture in 2016-2020.The MoU has also offered cooperation opportunities for the city's firms with their Bel-gian peers.


BU

SIN

ES


Workshop promotes Mekong Delta's agricultural product sales


A workshop was held in the Mekong Delta province of An Giang on March 8 to ex-pand markets for regional agricultural and special products.The event is part of the Vietnam High Quality Goods Fair 2017 in An Giang province.Nguyen Lam Vien, Chair and director general of the Vinamit JSC, who is also vice President of the Vietnam Agricultural Enterprise and Farm Association, said Viet-nam's agriculture production remains at a small-scale to meet the expectations of the domestic and international markets, while farmers still use chemical fertilisers and pesticides.Vien suggested shifting to organic farming while developing trademarks and chemical standards for agricultural products to earn trust among consumers.Enterprises should build their own consumption channels, while enhancing their rep-utation to carve out a niche in domestic and international markets.Nguyen Phi Van, Chairwoman of the Retail & Franchise Asia Company, mentioned the market-oriented approaches of international firms, adding that Vietnamese firms should learn from them.Participants also discussed fair competition in the sector and expanding the retail net-work to far-flung areas.http://en.vietnamplus.vn/workshop-promotes-mekong-deltas-agricultural-product-sales/108409.vnp

Get set for the largest natural, organic foods expo in Vietnam


The Phu Tho Stadium in HCM City on July 14-16 will be the site of the largest trade show for the natural health products segment in Vietnam.The expo celebrates the vibrancy of the growing natural products industry by bringing together suppliers and retailers under one roof, say the organisersThis year's expo of natural and organic foods is bound to be an exciting one as it rep-resents the largest show ever. Leading local manufacturers, importers and distributors of natural health products and organics are participating.Several international natural product suppliers from countries such as the UK, China and the US, will be in attendance as well.Not only do health food retailers attend but natural health care practitioners (naturo-paths, homeopaths, holistic practitioners, herbalists, chiropractors, acupuncturists, massage therapists) show up as well because they depend upon the sale of natural health products to generate much of their income.The organisers of this fourth annual edition of the expo are the Vietnam Association of Functional Foods, Asia Trade Fair & Business Promotion and the Asean Alliance of Health Supplement Associations.http://english.vov.vn/economy/get-set-for-the-largest-natural-organic-foods-expo-in-vietnam-345094.vov

Get set for the largest natural, organic foods expo in Vietnam


The Phu Tho Stadium in HCM City on July 14-16 will be the site of the largest trade show for the natural health products segment in Vietnam.The expo celebrates the vibrancy of the growing natural products industry by bringing together suppliers and retailers under one roof, say the organisersThis year's expo of natural and organic foods is bound to be an exciting one as it rep-resents the largest show ever. Leading local manufacturers, importers and distributors of natural health products and organics are participating.Several international natural product suppliers from countries such as the UK, China and the US, will be in attendance as well.Not only do health food retailers attend but natural health care practitioners (naturo-paths, homeopaths, holistic practitioners, herbalists, chiropractors, acupuncturists, massage therapists) show up as well because they depend upon the sale of natural health products to generate much of their income.The organisers of this fourth annual edition of the expo are the Vietnam Association of


BU

SIN

ES


Functional Foods, Asia Trade Fair & Business Promotion and the Asean Alliance of Health Supplement Associations.http://english.vov.vn/economy/get-set-for-the-largest-natural-organic-foods-expo-in-vietnam-345094.vov

Vincom Retail: Platinum closures done per contract


Vincom Retail responds to claim by Platinum Cineplexes that it acted illegally in clos-ing three cineplexes.In response to claims by Multi Vision Plus (MVP) yesterday over the closure of its Plat-inum Cineplexes at three Vincom Retail (VCR) shopping malls in Hanoi, Tran Mai Hoa, general director of VCR today provided VET with documentary evidence that it complied with the terms of the contract and relevant law.Hoa said it was ready to answer any lawsuit instigated by Platinum Cineplex, adding that VCR has also filed a lawsuit against Platinum.If MVP does not voluntarily move its assets away from VCR premises, it said, then it will do so itself. The moving and storage of assets will be witnessed by representatives from authorities and be done in accordance with the contract.On March 1, Vincom forced the closure of Platinum Cineplexes at Vincom Long Bien Plaza, Vincom Mega Mall Times City, and Vincom Mega Mall Royal City.VCR has sent many documents asking MVP to move its assets now the contract has been terminated, but MVP has deliberately delayed moving. On October 15, MVP agreed to move their assets but later asked for extension to February 4. On December 19, MVP once again asked for an extension, this time of 10 to 12 months. On December 20, it requested an extension and permission to operate over the Tet holiday.VCR agreed to an extension to February 24, but MVP has still not moved its assets. On March 1, VCR was forced to seal the premises, in accordance with the contract. It noti-fied MVP of its plans.Sealing the premises is a legal measure and meant to "clean" the premises. It was done and overseen by MVP managers and bailiffs at each location.During their partnership, VCR said, MVP repeatedly violated the terms of the contract, such as not paying rent. Only when VCR repeatedly submitted payment requests did MVP pay rent, but not in full. This violation was sufficient to terminate the contract. The contract was terminated in accordance with the rights of the two parties negotiat-ed and clearly specified in the contract.MVP, meanwhile, said they will bring the matter to the attention of relevant ministries in Vietnam and expects intervention. A representative of VCR, however, noted that the case is a disagreement between the two business partners and should therefore be re-solved on the basis of law and the trade and civil agreement between the parties.http://vneconomictimes.com/article/business/vincom-retail-platinum-closures-done-per-contract

Savills Vietnam to sell Kosmo Tay Ho apartments


Property consultants assigned as official sales agent of new development near Hanoi's West Lake.Savills Vietnam has been appointed as the official sales agent for Kosmo Tay Ho, an apartment and commercial complex developed by West Lake View Real Estate Ltd in cooperation with strategic partners Refico and New Tatco.Kosmo Tay Ho features three towers of 21, 29 and 35 floors with apartments of various layouts from one to four bedrooms (63.2 sq m to 203.8 sq m) that capture views looking over West Lake and the city. The development was designed with an open architecture concept, providing large windows and balconies that provide spacious living with abundant natural light and ventilation.The project covers 10,895 sq m and is located on Xuan La Street in Hanoi's Bac Tu Liem district. It benefits from existing and future infrastructure, including planned metro lines, and has good connectivity to neighbouring areas, being 900 meters from West Lake and approximately 15 minutes from the city centre and Noi Bai International Air-


BU

SIN

ES


port. It is also surrounded by restaurants, high schools, universities, embassies, and diplomatic missions.Kosmo Tay Ho targets young and modern families, by including two heated swim-ming pools, an art garden, a viewing platform, and a sky garden. It is also the first res-idential development in the area with a cinema, complimented by cafes, shops, playgrounds, a gym and a clinic. The project's scope not only offers residents a better quality of life but will improve the surrounding areas.A model apartment is now available for viewing.The project is expected to be completed in the second quarter of 2019.Savills Vietnam is the largest and most experienced real estate practice in Vietnam, with offices in Hanoi and HCM City. It provides comprehensive property services, such as Residential Sales, Commercial Leasing, Residential Leasing, Research & Con-sultancy, Valuation & Feasibility Studies, Banking & Corporate Services, Investment Brokerage & Advisory, Retail Consultancy & Leasing, Property & Asset Management, Tenant Advisory & Representation, Industrial Consultancy & Leasing, and Marketing & Creative services.It won Asia Pacific Property Awards 2015-2016 as "Best Real Estate Agency in Viet-nam" and "Best Property Consultancy in Vietnam". With over 20 years of operations and growth in Vietnam, Savills is proud to be the most established real estate consul-tancy firm in the country, providing the most comprehensive data and insights into the local property market development. It now has over 1,000 experienced and profession-al staff nationwide.http://vneconomictimes.com/article/property/savills-vietnam-to-sell-kosmo-tay-ho-apartments

Tour operators no longer troubled by inspections


Travel companies in HCM City will no longer be bothered by constant inspections as the municipal government has told relevant agencies to get its prior approval for any inspection."Before an inspection is carried out, departments and districts are required to ask the city for permission. I'm the one who will give approval," said city vice chair Tran Vinh Tuyen.He was speaking at a meeting on March 8 on the execution of a Politburo resolution which identifies tourism as an economic spearhead and of a HCM City Party Commit-tee directive for tourism development until 2020.Tuyen said the city government ordered a stop to rampant inspections after it got com-plaints from businesses about numerous inspections by departments. Many of the in-spections overlap in terms of content, costing enterprises a lot of time.Scott Hodgetts, general manager of the Sheraton Saigon Hotel & Towers, said author-ities last year conducted 13 inspections into his hotel. In each check, the hotel had to spend a lot of time making logistical preparations."We look forward to fewer inspections. We'll have more time for doing business," he said.The city will look into the comments given at this meeting and launch a tourism devel-opment plan until 2020.Business executives at the meeting complained about traffic congestion, saying this problem had adversely affected tourism development. Nguyen Quoc Ky, general di-rector of Vietravel, said traffic here in the city was terrible and because of this, many tourists were late for their flights.Duong Thanh Thuy, the owner of the Miss Aodai store chain, said that in addition to growing traffic congestion, parking restrictions on tourist buses had made life difficult for travel firms.The city should develop an all-in-one centre where travellers can shop, tour and dine, and there are large car parks, she suggested.Some businesses expressed concern over the low vertical clearance of bridges and the lack of piers for tourist boats and cruise ships. They proposed relaxing entry proce-


BU

SIN

ES


dures for international visitors to bring more to the city.HCM City Party Secretary Dinh La Thang told Tuyen to consider permitting small cruise ships to come to Nha Rong Wharf and Saigon Port in the centre of the city to create convenience for tourists to take city tours.http://english.thesaigontimes.vn/52783/Tour-operators-no-longer-troubled-by-in-spections.html

Vietnam preps for possible pickup in Chinese arrivals


Travel firms in Vietnam are preparing for a possible upsurge in Chinese tourist arriv-als as news reports said Chinese might be discouraged from travelling to South Korea amid diplomatic tension between China and Korea over the deployment of a US mis-sile defense system in the latter.Korea attracted 16 million foreign tourists last year, with around half of them coming from China.According to Vietnamese tour operators, Chinese travellers may choose nearby littoral countries such as Singapore, Indonesia, Malaysia and Vietnam if the travel restriction applies.The localities which receive chartered flights from China, such as Danang City, Khanh Hoa Province and Phu Quoc Island, might be the first destinations Chinese tourists would choose to go to."It takes two to three months to launch a chartered flight while a scheduled flight re-quires six months to one year to complete paperwork," said Tu Quy Thanh, director of Lien bang Travelink.Speaking to the Daily, travel firms said they had got no news from their Chinese part-ners. Some of them said that would not be good news because they are facing a lack of hotel rooms and Chinese-speaking guides.Nearly 2.7 million Chinese tourists came to Vietnam last year, most of them going to key destinations like Danang City and Nha Trang City, which put enormous pressure on services providers.Nguyen Van Thanh, vice chair of the Nha Trang-Khanh Hoa Tourism Association, said if Chinese tourists came here in droves, that would be both good and bad news as tourism services providers would be overwhelmed.Last year, around 600,000 Chinese visited Khanh Hoa Province, with most of them us-ing chartered flights. The province's Cam Ranh International Airport has become over-whelmed with huge numbers of tourists from China and tourism enterprises have advised their customers to visit Da Lat City instead.Three to five-star hotels are favoured by Chinese tourists, so their average room occu-pancy is near 100 percent."A sudden increase of tourists may put a strain on the tourism sector in the short term but give a boost to tourism development in the long term," Thanh of the Nha Trang-Khanh Hoa Tourism Association.Meanwhile, Tran Chi Cuong, deputy director of the Department of Tourism of Danang City, said the tourism sector was prepared for a sudden rise in Chinese arrivals. Around 400,000 Chinese toured Danang last year.There are 25 air routes connecting Danang and China with 81 flights a week."We can afford to serve a large number of tourists," Cuong said.http://english.thesaigontimes.vn/52776/Vietnam-preps-for-possible-pickup-in-Chi-nese-arrivals.html

IFC, Loc Troi help farmers with sustainable rice farming


Training courses will be organised for around 4,000 farming households to learn new farming practices to grow high-quality rice in a sustainable way.The training is part of an international sustainable rice production programme in Vi-etnam, which is being carried out with the support of International Finance Corpora-tion, an arm of the World Bank Group, Vietnam's Loc Troi Group, the International Rice Research Institute (IRRI) and the International Sustainable Rice Forum with SRP


BU

SIN

ES


(Sustainable Rice Platform).Loc Troi said in a statement that the programme would support farmers to embrace sustainable farming practices in the group's value chain.It will also help Vietnam's agriculture expand its global market share, increase profit-ability and improve farmers' livelihoods, Loc Troi said.In the next two years, the group will get IFC support to show 4,000 farming households how to grow rice in line the Sustainable Rice Platform's agricultural standards and practices. Adopting the SRP standards, farmers would gain many benefits such as ef-fective farming practices and higher income.Chair of Loc Troi Group Huynh Van Thon said he expected the programme would help the group successfully build a high-quality rice brand to compete on international markets.Richard Bale, Canadian consul general in HCM City, said he appreciated the involve-ment of the private sector in promoting sustainable and inclusive economic growth as it would benefit thousands of farmers in the Mekong Delta.Loc Troi Group is building a rice production value chain model in Vietnam with the participation of about 25,000 farming households.http://english.thesaigontimes.vn/52775/IFC-Loc-Troi-help-farmers-with-sustainable-rice-farming.html End


100317Intellasia Finance Vietnam · VIGroup invests in Congnhadat.net 35 SMEs get support to participate in public procurement market 36 Vietnam, Australia strengthen livestock breeding

Documents