Stock market

VN Index adds 6.5 points 03/May/2017 Intellasia| The Saigon Times

Local stocks made nice gains on April 26 as investors turned optimistic given a mild recovery on Tuesday, with the VN Index surging by 6.49 points, or 0.91 percent, to close at 716.53.

Turnover on the HCM City market sharply improved with more than 187 million shares worth VND4.1 trillion traded, in which 6.8 million SBT shares in bloc deals contributed VND155.5 billion.

Blue chips maintained growth momentum as the VN30 basket saw 20 stocks advancing, eight falling and two moving sideways, lifting the VND30-Index up 1.16 percent at 681.36 points.

VNM was the key market driver. Despite its seesaw trading during the morning, VNM rose steadily in the afternoon, and closed the session up 1.8 percent at an intraday high of VND146,500 a share with total matching volume of nearly 1.2 million shares.

GAS was also a big gainer as it added 2.4 percent with over one million shares changing hands. VIC increased for a third straight session, rising 1.2 percent on trading volume of over 500,000 shares.

In the banking sector, STB jumped 4.6 percent to VND12,400 a share with trading volume soaring to 11.4 million shares. Foreigners strongly offloaded VCB shares, sending it down 0.57 percent to VND34,850 a share.

Among small and medium caps, OGC went up to the upper limit with matching volume amounting to nearly 5.5 million shares after announcing positive results in the January-March period. DLG hovered around the reference price in the morning phase but it shot up to the ceiling level of nearly VND3,400 a share in the afternoon, buoyed by high demand, and its matching volume totalled 14.1 million shares.

The Hanoi market also gained ground with 103 stocks making gains and 63 edging lower, with the HNX-Index adding 0,86 percent to 89.32 points. There were 56.8 million shares worth VND570 billion traded, including meager put-through transactions worth VND17.3 billion.

The petroleum and securities sectors strongly supported the uptrend. SHB again was the most actively traded stock with over 20 million shares traded, rising 1.4 percent to VND7,500 per share.

Foreigners net bought nearly VND107 billion of shares on the southern bourse and VND13.6 billion of shares on the northern exchange.

On the HCM City market, they focused on FPT with a net buying value of VND55.3 billion, followed by VNM with VND40.1 billion and GAS with VND39.7 billion. On the other hand, they net sold VCB, DCM and SSI with VND67.2 billion, VND19.8 billion and VND5.9 billion respectively.

Stock experts said on the vietstock.vn website that positive signs came back on April 27 as most sectors advanced and turnover improved. However, as investors may reduce trading in the lead up to the long national holiday, the market is expected to seesaw in a narrow range on April 28.

http://english.thesaigontimes.vn/53689/VN Index-adds-65-points.html

Shares rise on investor optimism 03/May/2017 Intellasia| VNA

Shares rose for a second day in the two local markets on April 27 on investor optimism that the market will return to a positive trend soon.

The benchmark VN Index on the HCM Stock Exchange advanced 0.91 percent to end at 716.53 points. Vietnam's key index has gained 1.3 percent in the last two days.

The smaller HNX Index on the Hanoi Stock Exchange added 0.86 percent to finish at 89.32 points, a two-day increase of 1.7 percent.

More than 274 million shares were traded on both local bourses, worth nearly 4.68 trillion VND (207.8 million USD).

Market trading liquidity increased from April 26 on both local bourses with an increase of 41 percent in volume and 16.3 percent in value.

Gains were seen in 17 of the 20 industries in the stock market with shares of energy producers, property developers, food and beverage companies, and construction firms leading the way.

Foreign investors remained net buyers with a total net buy value of 124.8 billion VND, focusing on PetroVietnam Technical Services (PVS), information technology group FPT Corp (FPT), PetroVietnam Gas (GAS) and dairy producer Vinamilk (VNM).

PVS surged 5.4 percent, FPT gained 1.1 percent, GAS added 2.4 percent and VNM rose 1.8 percent. Gains by PVS and GAS were the major factors that pushed the energy industry forwards, followed by

PetroVietnam Coating (PVB), which jumped 4 percent. Other stocks that had strong gains included sugar producers Thanh Thanh Cong Tay Ninh (SBT) and

Bien Hoa Sugar (BHS), which soared 5.6 percent and 3.3 percent. The two largest sugar producers in the country have announced they will discuss a merger between the

two firms at their coming annual shareholder meetings. If the deal is sealed, it will create a sugar company with total chartered capital of 5 trillion VND.

Higher market trading liquidity in the last two sessions proved investors were optimistic that the stock market would continue to grow in the short term, Bao Viet Securities (BVSC) said in its report.

The next test for the VN Index would be the level of 720 points, BVSC said, adding that the benchmark index would face a big challenge to surpass this level.

http://en.vietnamplus.vn/shares-rise-on-investor-optimism/110944.vnp

SSI to issue bonds worth 300 billion VND again 03/May/2017 Intellasia| VNA

Saigon Securities Incorporation (SSI) has decided to issue bonds worth 300 billion VND (13.3 million USD) to financial and credit institutions.

The company will issue 600 two-year bonds at a par value of 500 million VND each. This is a type of non-convertible bond with secured property and priority payment as other secured debts, issued and paid in VNĐ, and issued in the form of book entries.

The interest rate is calculated on the basis of one-year interests for individual customers of five banks Vietcombank, Vietinbank, BIDV, Agribank and VIB plus amplitude. The amplitude in the first 12 months is 1 percent annually; and from the 13th to the 24th month it is 1.2 percent. Bonds will be paid only once, at the time of maturity of the bonds; bond interest will be paid once a year.

The 300 billion VND mobilised capital is expected to be used for underwriting, investing in listed bonds, and increasing the capital for SSI's activities, but excludes other investments and stock trading.

This is the second time in 2017 that SSI has issued bonds, increasing the total value of bonds issued after both sessions to 600 billion VND.

In January, SSI had issued bonds worth of 300 billion VND to individuals and non-financial investors for diversifying mobilised funds and raising medium-term capital in its capital structure.

At its annual shareholders' meeting on April 21, SSI reported that the company's business earnings for 2016 reached 2.312 trillion VND, exceeding 60 percent of the target and up 28 percent against 2015. Its pre-tax profit was 1.056 trillion VND, 11.24 percent higher than the target.

For 2017, SSI plans a consolidated revenue target of 2.108 trillion VND and consolidated profit before tax of 1.058 trillion VND.

http://en.vietnamplus.vn/ssi-to-issue-bonds-worth-300 billion-vnd-again/111063.vnp

Kido to acquire Vocarimex's controlling stakes 03/May/2017 Intellasia| VNS

Foodstuff producer Kido Group (KDC) has decided to acquire a controlling stake in Vietnam Vegetable Oil Industry Corporation (Vocarimex) in a deal worth nearly VND1 trillion (US$44 million).

In a filing to the State Securities Commission on Wednesday, Kido registered to purchase nearly 32.9 million shares in Vocarimex to increase its holding there from 24 per cent to 51 per cent.

The purchase will be conducted through negotiations from May 4 to June 2. Vocarimex's shares (VOC) are traded on the Unlisted Public Market Company (UPCoM) for about

VND30,000 (US$1.32) each. At this price, Kido is estimated to spend almost VND987 billion ($43.5 million) for the deal.

After the announcement, VOC shares increased 8.5 per cent in the last two sessions. The shares have increased 5.2 per cent this year.

In January this year, the vegetable oil producer approved Kido raising its stake, bypassing the obligation of making a public bid to purchase shares.

On Monday, VP Bank Securities Co (VPBS) announced it sold its entire holding of 9.74 million VOC shares, equivalent to 8 per cent of Vocarimex's capital.

Apart from Kido, the State Capital Investment Corporation (SCIC) is the second biggest shareholder with a 36.3 per cent.

Vocarimex is one of the largest local vegetable oil firms, with Kido aiming to seize a controlling stake to penetrate deeper in vegetable oil market after its withdrawal from the confectionery sector.

Besides Vocarimex, in November 2016, Kido spent more than VND1 trillion to buy a 65 per cent stake in Tuong An Vegetable Oil Joint Stock Company (TAC). This acquisition is reportedly boosting Kido's performance.

The company announced its first-quarter consolidated revenues soared 217.4 per cent year-on-year, totalling VND1.25 trillion, after acquisition of Tuong An Vegetable Oil. Its after-tax profit rose 9.4 per cent to VND30.1 billion.

However, revenues of the parent company Kido Group declined 74 per cent from VND162.7 billion in 2016's first quarter to just VND42.3 billion in the first three months of this year.

Kido attributed the decline to the group's business model transformation in which it gives more autonomy for subsidiary and affiliate firms in doing business while the parent company plays key role in planning strategic development, risk management and brand marketing.

http://bizhub.vn/markets/kido-to-acquire-vocarimexs-controlling-stakes_285841.html

PJICO to sell shares to Korean non-insurance firm 03/May/2017 Intellasia| VNS

Petrolimex Insurance Joint Stock Company (PJICO), with code PGI on the HCM Stock Exchange, will sell 20 per cent of its charter capital to Samsung Fire&Marine Insurance.

This plan was released at PJICO's annual shareholder meeting in Hanoi on Wednesday The company will offer 17,743,555 shares, equivalent to 20 per cent of its charter capital, to Samsung

Fire&Marine Insurance Co Ltd, a leading non-insurance company of South Korea. Offer price will be not lower than the minimum price that was proposed in an advisory report on fixing

corporate value of VP Bank Securities Co Ltd (VPBS) and the price that was traded on the stock exchange on October 20, 2015.

The company plans to issue the shares this year after the Ministry of Finance approves in principle to change PJICO's charter capital and the State Securities Commission also approves PJICO sale of shares to the South Korean partner, cafef.vn reported.

After issuing the shares, PJICO's shares owned by the Vietnam National Petroleum Group (Petrolimex) will reduce from 51.18 per cent to 40.95 per cent, while PJICO's shares owned by Vietcombank will drop from 10.04 per cent to 8.03 per cent, according to PJICO's management board.

Meanwhile, at PJICO, shares held by Vietnam Re-insurance Corporation will fall from 8.79 per cent to 7.03 per cent and those owned by Hanel Co Ltd will decline from one per cent to 0.8 per cent.

Samsung Fire&Marine Insurance holds 20 per cent of PJICO's charter capital. Also at the shareholder meeting on April 26, PJICO's management board submitted to shareholders the

business plan for this year. This year, the company expects to achieve insurance revenue of VND2.5 trillion (US$109.6 million),

excluding revenue from insurance of fishing boats, a year-on-year increase of 6.7 per cent. Its pre-tax profit will reach VND140 billion, an increase of 11.6 per cent against the same period last

year. The company announced its target of minimum dividend of 10 per cent for this year. In 2016, PJICO's total insurance revenue reached VND2.48 trillion, a year-on-year growth of 11.4 per

cent. Its pre-tax profit reached VND125.4 billion, a year-on-year surge of five per cent. Its dividend for 2016 was 11 per cent, one per cent higher than the plan approved by the shareholder

meeting in 2015. http://bizhub.vn/markets/pjico-to-sell-shares-to-korean-non-insurance-firm_285827.html

Vingroup targets 40pct revenue growth, lower net income 03/May/2017 Intellasia| VNA

Leading business conglomerate Vingroup, one of the nation's largest real estate developers and a retail sector giant, targets higher revenues but lower net profit this year.

At the group's annual shareholders meeting held recently in Hanoi, the board of shareholders approved a total revenue target of 80 trillion VND (3.5 billion USD) for the year, and a post-tax income of 3 trillion VND (134.2 million USD).

In 2016, the company earned net revenues of 57.61 trillion VND (2.57 billion USD), up 69 percent over 2015, and a post-tax income of 3.51 trillion VND (157 million USD).

The group's 2017 targets show a year-on-year drop of 15 percent in post-tax income, but a 40 percent increase in revenues.

The value of real estate transactions was 83 trillion VND (3.7 billion USD), with 15,000 apartments, villas, townhouses and hotel condos sold.

Vingroup Chair Pham Nhat Vuong said that increase in revenues do not necessarily mean an equally high increase in profits, because of changing market conditions.

Vingroup paid 6.18 trillion VND (276 million USD) in taxes in 2016. The group informed its shareholders that it would continue to issue new shares and intensify focus on its

retail sector operations. The group's stocks are publicly traded on the HCM Stock Exchange under the stock code of VIC. On

April 27, VIC stock stood at 40,900 VND per share. Announcing its audited, consolidated earning results for 2016, the group said net profit attributable to the

shareholders was 2.43 trillion VND or 1,178 VND per basic and diluted share compared to 1.21 trillion VND or 558 VND per basic and diluted share the year before.

All of Vingroup's core businesses grew and secured significant market shares last year, the meeting heard.

The retail sector showed the most significant growth last year, as its supermarket chains, convenience stores and other retail outlets posted a 115 percent increase over 2015, earning total revenues of 9.24 trillion VND (413.4 million USD).

Three years after it entered the sector, the group now operates more than 1,000 retail stores across the country, serving more than 56 million customers.

Other areas earning high returns in 2016 included the hotel, travel and recreation business with 4.25 trillion VND (190 million USD) for a 49 percent increase from 2015's figure; the health and medical care service sector with 1.09 trillion VND (48.77 million USD) for a 42 percent rise; and the education sector with 713 billion VND (31.9 million USD), a 39 percent increase.

Vingroup opened two new hotels and 10 new shopping malls in 2016, bringing the total to nine hotels and 32 malls.

The board's decisions and future business plans received near unanimous approval of 96 to 100 percent from shareholders.

http://en.vietnamplus.vn/vingroup-targets-40-percent-revenue-growth-lower-net-income/111058.vnp

Shares inch up after holidays 04/May/2017 Intellasia| VNS

Shares inched up on the main bourse in HCM City during the first session after the National Reunification and International Labour holidays.

The benchmark VN Index was up 0.1 per cent at 718.3 points. Financial stocks such as banks, insurers and securities companies were among the major supporters. They

included Bao Viet Holdings (BVH), Vietinbank (CTG), Military Bank (MBB), Vietcombank (VCB), Sacombank (STB), Saigon Securities Inc (SSI) and HCM Securities Corp (HCM).

On the defense side, oil and gas stocks slumped with the downward movement of global oil. Major listed energy shares such as PV Gas (GAS), PetroVietnam Drillings and Well Service (PVD),

PetroVietnam Drilling Mud (PVC) and PetroVietnam Technical Service (PVS) declined between 0.5 per cent and 5.1 per cent.

On the Hanoi Stock Exchange, the HNX-Index edged down 0.2 per cent at 89.4 points. A total of nearly 139 million shares worth VND2.4 trillion (US$105.3 million) were traded in the two

markets. The afternoon session starts at 1pm. http://bizhub.vn/markets/shares-inch-up-after-holidays_285860.html

VN Index nears 720 points 04/May/2017 Intellasia| VN Economic Times

HNX30-Index loses ground as VN Index heads in right direction on May 3. The HNX30-Index was the only main index on Vietnam's stock market to close lower on May 3. On HSX, the VN Index increased 1.81 points (0.25 per cent) and the VN30-Index 4.5 points (0.66 per

cent). On HNX, the HNX-Index rose 0.29 points (0.32 per cent) while the HNX30-Index shed 0.13 points (0.08

per cent) and the UPCoM Index 0.02 points (0.04 per cent). Liquidity on HSX reached VND3.8 trillion ($176.1 million), 12 per cent higher than the previous day's

trade last Friday, and on HNX was VND510 billion ($22.4 million), 3 per cent lower. The VN Index opened at 717.72 points and rose to 719 points early on before falling to its bottom of the

day of 716.8 points mid-session then recovering to close at 718.3 points. In the afternoon session, it increased slightly before dipping to 717.8 points then gradually increased to finish the day at 719.54 points.

Among large caps in food and beverages, SBT and VNM increased 3.3 per cent and 0.2 per cent, respectively, SAB closed at its opening price, and KDC fell 1 per cent, BHN 0.7 per cent, and MSN 0.3 per cent.

In banking, MBB increased 6.3 per cent and CTG and STB 0.9 per cent. BID closed at its opening session and EIB lost 0.5 per cent.

In energy, PGD and CNG rose 2.2 per cent and 0.3 per cent, respectively, and GAS lost 0.5 per cent. In real estate, KBC increased 2.7 per cent, KDH closed at its opening price, and FLC fell 2.5 per cent,

VIC 1 per cent, NVK 0.9 per cent, and DXG 0.2 per cent. Among other large caps, VJC increased 0.2 per cent while HPG and ROS shed 1 per cent and 0.9 per

cent, respectively. ROS saw the highest liquidity on HSX, with VND1.2 trillion ($52.7 million), followed by REE with

VND135 billion ($6 million) and VNM with VND130 billion ($5.7 million). On HNX, ACB rose 2.2 per cent and PHP 0.7 per cent. SHB closed at its opening price while PVI lost

3.3 per cent, PVS 2.9 per cent, VCS 1.5 per cent, NTP 0.7 per cent, and VCG 0.6 per cent. Foreign investors net sold on HSX by VND264 billion ($11.6 million) and net bought on HNX by

VND1.4 billion ($61,572). http://vneconomictimes.com/article/banking-finance/vn-index-nears-720-points-1

Market predicted to move flat in May 04/May/2017 Intellasia| The Saigon Times

The local stock market has seen several sessions of deep correction after a long winning streak since early this week, so the VN Index is expected to move sideways on low turnover in May, said some securities experts.

After stumbling at the start, the VN Index underwent three straight days of gains to end last week up 0.17 percent at 717.73. However, the market closed April down 0.6 percent for its first losing month of the year.

Chau Thien Truc Quynh, brokerage director of Viet Capital Securities Company, predicted dismal trading this month but some sectors are expected to strongly attract cash flow. These include enterprises with specific information on business strategies and annual general meetings, positive results in the first quarter and promising restructuring activities.

However, interests will differ within a sector. For instance, investors will pay attention to VCB and ACB in the banking sector and HPG and HSG in the steel industry, while others in such industries may see lukewarm responses, Quynh said in an interview with Dau Tu Chung Khoan website.

Large caps such as VNM, GAS, VCB and VIC were key market drivers during the latest uptrend, suggesting that investors focused on stocks with good fundamentals while reducing investment in speculative stocks. This good signal will help strengthen market stability.

In addition, investors may fix their eyes on some over-the-counter (OTC) stocks that have announced specific listing schedules. In fact, investors have gained big profits from outstanding OTC stocks like VJC of VietJet Air and PLX of Petrolimex. At present, investors are expecting listing information of VPBank, resulting in bustling trading of the bank on the market.

Lastly, stocks possibly added to portfolios of exchange traded funds in the second rebalancing period will see active trading at the end of this month, Quynh added.

Phan Dung Khanh, head of investment advisory at Maybank Kim Eng Securities Company, forecast a gloomy outlook for May if turnover fails to improve.

The market is currently influenced by psychological factors, especially after a long rising streak, while risks turn visible given a high ratio of margin trading. Besides, the nation has seen economic growth slowing down with inflation and bank interest rates rising, causing bad impacts on the stock market.

If the factors do not improve and the VN Index plunges to below 700 points, the market may face downturn risks in the short term. In case the supporting level at 700 points is breached, small caps may attract attention due to low prices and strong fluctuations, Khanh predicted.

http://english.thesaigontimes.vn/53732/Market-predicted-to-move-flat-in-May.html

Listed businesses few in quantity, poor in quality 04/May/2017 Intellasia| TTXVN

As per Vietnam Business Annual Report 2016/2017 released recently by Vietnam Chamber of Commerce and Industry (VCCI), the number of listed businesses in Vietnam only account for about 0.1 percent of the total number of active businesses.

Not only being few in quantity, the corporate governance quality of these businesses is also poor compared to the regional and world level.

Also as per this report, as of December 15, 2016, the number of public companies in Vietnam reached nearly 1,830 units. Of which, 319 companies were listed on Hochiminh City Stock Exchange (STC); 374 companies were listed on Hanoi Stock Exchange (HNX); 319 companies registered trading on the system of unlisted public companies (Upcom) and 745 companies had not listed or registered for trading.

Thus, the number of listed companies in Vietnam only account for about 0.1 percent of the total number of operating businesses.

With the encouragement of management bodies, in several recent years, the corporate governance in listed companies received much more attention but the corporate governance following international standards still has not improved significantly.

Even in large listed businesses on the stock market which are considered as leaders in corporate governance in Vietnam, the good corporate governance in line with international standards is only at the early stage.

The reality shows that there are many reasons for the poor management of listed companies in the stock market. First of all, the awareness of improvement in the management board of many listed companies is not high.

The corporate management in a "nepotism" style also hampers the effective corporate management when the board of directors is mostly family members who assume corporate executive positions.

Vu Chi Dung, Head of the International Cooperation Department under the State Securities Commission (SSC) said the corporate governance in Vietnam has such challenges as public companies, especially small and medium size companies lack awareness, knowledge and experience in corporate governance.

Companies tend to only comply with minimal requirements on corporate governance as required by the law and do not have much incentive to apply good corporate governance practice. The enforcement of corporate governance rules remains weak.

Though the Ministry of Finance's Circulars No. 121/2012/TT-BTC dated July 26, 2013 classified into public companies and listed companies to set higher standards on corporate governance, these regulations are mainly to recommend businesses to apply but are not mandatory and do not impose specific sanctions.

Vu Bang, Chair of the State Securities Commission (SSC) said SSC has implemented many solutions to enhance the corporate governance quality in listed businesses.

Recently, the Ministry of Finance, SSC have submitted to the government a separate decree on corporate management to further improve the legality of this issue for better compliance.

On April 20, 2017, the International Finance Organisation (IFC) cooperated with SSC to establish "National Advisory Council on corporate governance". This is an effort of all parties, from management company, regulatory authorities to private sector, professional associations, research experts and teachers at home and abroad, etc. to coordinate actions targeting at further promoting the corporate governance in Vietnam, said Bang.

In 2017, the Council will focus on developing and issuing the Code of Conduct about corporate management and has now had the first draft. This is very necessary.

Businesses can base on this Code of Conduct to practice applying. It is expected that this Code of Conduct will be issued this year. This demonstrates the strong commitment of management agencies in promoting good governance in listed businesses.

The Corporate management's Code of Conduct will guide listed businesses the way to apply good corporate management practices in the world to strengthen the competitiveness of Vietnamese listed businesses, helping them integrate better into capital market of Asean countries and the world.

The Advisory board is also expected to carry out many other important contents such as establishing Corporate Management Score Cards, organising Corporate Management Forum and forming a corporate management institute to enhance training and policy advisory about this issue in Vietnam, said Bang.

Covered warrants trading to start in September

04/May/2017 Intellasia| VNS

Covered warrants, a new investment tool, will be allowed to start trading on the HCM Stock Exchange this September. The launch of this product is considered the first step to introducing more option products in the future.

This will be the fourth product traded on the HCM City's bourse, together with stocks, bonds and fund certificates.

The new product is expected to provide investors with more investment and hedge options, while helping draw foreign investments as there is no cap on foreign ownership of this product.

Covered warrants, issued by a securities company, allow the holder to buy (call warrant) or sell (put warrant) the underlying stock (including shares, bonds or other securities) at a specific price on or before a pre-determined date.

At a meeting last week, Nguyen Dich Thanh, deputy director for the product research and development division at the HCM Stock Exchange, said the bourse had launched a trial in late April.

In the next four months, the exchange would complete the legal framework for support issuers (securities firms) in testing the trading system and issuing documents, Thanh said.

Covered warrants, just like other options products, have potential larger capital gains/losses because of the difference between the exercise price and the stock price. However, investors must also take certain risks of default from issuers if they suffer financial stress.

To mitigate risks, Circular 107 on the sale and trading of covered warrants by the Ministry of Finance, which took effect January 1 this year, set conditions under which an underlying security may have warrants and responsibilities of the issuance organisation.

The underlying stocks must be listed on a stock exchange and meet criteria in terms of market capitalisation, liquidity, free float and business performance of the issuer. The stocks must also not be under "special control", "suspended from trading" or "soon to be delisted".

Securities companies which want to issue covered warrants must satisfy conditions including charter capital and equity capital of at least VND1 trillion (roughly $44 million), no cumulative losses and fully licensed securities operations. They are not being suspended and in the process of consolidation, merger or dissolution and their audit financial statements has no exceptions.

The development of covered warrants is designed to prepare investors and derivatives market for more complicated products, including options.

http://www.vir.com.vn/covered-warrants-trading-to-start-in-september.html

Listed companies see low number, poor management 04/May/2017 Intellasia| VNA

Listed companies account for just 0.1 percent of the total number of operating enterprises and see poor corporate administration, an annual business report released by the Vietnam Chamber of Commerce and Industry (VCCI) showed.

By December 15, 2016, Vietnam had close to 1,830 public companies, with 693 firms listed on the Hanoi Stock Exchange (HNX) and the Ho Chi Minh Stock Exchange (HOSE) and 391 others trading shares on the Unlisted Public Company (UPCoM) market.

According to the report, with the encouragement of management agencies, listed companies have paid attention to corporate administration, but they still failed to meet international standards.

Vu Chi Dung, director of the International Cooperation Department of the State Securities Commission (SSC), said Vietnamese public companies, particularly small- and medium-sized firms, lack knowledge and expertise in corporate management and they just strive to satisfy minimum requirements as regulated.

The finance ministry's Circular No 121/2012/TT-BTC classifies public companies and listed enterprises to set out higher standards for corporate administration. However, these regulations are seen as recommendations rather than obligations.

SSC Chair Vu Bang said his agency has implemented a wide range of measures to enhance business management in listed companies. The finance ministry and the SSC have submitted to the government a decree on corporate administration, he added.

On April 20, the SSC and the International Finance Corporate (IFC) established a national advisory council on company management, which is expected to issue specific regulations for businesses to follow.

http://en.vietnamplus.vn/listed-companies-see-low-number-poor-management/111122.vnp

Vinalines holds workshop before IPO 04/May/2017 Intellasia| VIR

Ahead of its long-awaited initial public offering, state-run Vietnam National Shipping Lines, which is the country's largest shipping company, last week held a workshop in Singapore to seek foreign strategic investors to serve its future development.

The event, as part of the sixth Sea Asia 2017 in Singapore a premier maritime conference and exhibition attracted businesses and companies operating in the fields of marine transport, navigation services, and banking.

This year, Vietnam National Shipping Lines (Vinalines) attended the event for the first time, together with more than 420 powerful businesses and groups in the industry, including those from Singapore, China, Japan, South Korea, the UAE, the UK, the Netherlands, and Norway.

Le Quang Trung, head of Vinalines' Market Development Department, said that Vinalines is implementing equitisation and is set to launch its initial public offering (IPO) in December 2017, with the chartered capital of $550 million.

"The state will hold 65 per cent of the chartered capital at the parent company while strategic investors will have an opportunity to hold up to 17.25 per cent of the chartered capital," Trung said.

Currently, the shipping giant owns a shipping fleet with a total load capacity of over two million tonnes, accounting for around 25 per cent of Vietnam's national shipping fleet. This enables Vinalines to meet requirements of shippers and contribute to the country's expanded trading network.

Vinalines is also famous for shipping services and logistics in Vietnam, with a wide network of warehouses and modern inland container depots in many cities and along the country's influential seaports.

Vinalines also operates 15 seaports with a total capacity of 75 million tonnes a year, making up 23.53 per cent of the country's total number of piers, and 30.37 per cent of the country's total length of piers. Vinalines' seaports are located in strategically important locations for goods trading as well as regional economic development.

Last year, the shipping giant reported better business performance. It earned a pre-tax profit of VND923 billion ($41.95 million) and VND1.139 trillion ($51.77 million) in port operations and maritime services, respectively.

The volume of goods shipped via Vinalines' ports rose 17 per cent year-on-year during 2016, of which container throughput ascended by an estimated 22 per cent, compared to the country's aggregate shipping figures of 7 per cent and 11 per cent, respectively.

Vinalines has four foreign joint-venture ports, including CMIT, SP-PSA, SSIT, and CICT. All of them reported better performance results in 2016, signalling an upward trend.

These are positive result as 2016 was a year of extreme difficulties for the global shipping industry, with many leading shipping lines in the world incurred big losses. Meanwhile, many others went bankrupt or had to merge to survive.

http://www.vir.com.vn/vinalines-holds-workshop-before-ipo.html

Viglacera to auction 120 million shares in May 04/May/2017 Intellasia| VNS

Ceramic maker Viglacera Corporation (VGC) will put up 120 million shares for sale, equivalent to 39 per cent of total outstanding shares, on the Hanoi Stock Exchange on May 29.

The starting price is set at VND12,300 (54 US cents) per share. Viglacera is expected to collect nearly VND1.5 trillion ($65.8 million) from the public sale, which will

be mainly used to invest in the expansion of the Yen Phong Industrial Park and develop the ultra-white float glass manufacturing factory and sanitary ware plant Viglacera My Xuan in Ba Ria-Vung Tau Province.

Viglacera has 307 million outstanding shares, equivalent to charter capital of VND3.07 trillion. The company's charter capital will increase to nearly VND4.73 trillion following the sale.

It is listing 65 million shares on the Hanoi Stock Exchange, some 39 per cent of its total outstanding shares, at a price of some VND15,500 per share.

Viglacera holds 40 per cent of the market share of building glass, 12 per cent of sanitary ware, 5 per cent of ceramic tiles and 3 per cent of bricks, according to a report by the Bao Viet Securities Joint Stock Company (BVSC).

The construction materials company owns some 390ha of urban land and 10 industrial parks with total area of 3,560ha in six provinces, mainly in the north, which have attracted 200 enterprises.

There could be a possible dilution of the share price after the sale in the short term, but this will be offset by the company's strong potential for growth following investment, BVSC's report said.

Viglacera reported profit of VND242 billion in the first quarter, surpassing its quarterly target by 69 per cent. It aims to earn total pre-tax profit of VND888 billion this year, a rise of 16 per cent year-on-year.

http://bizhub.vn/markets/viglacera-to-auction-120 million-shares-in-may_285886.html

VN Index rises to near 720 points 05/May/2017 Intellasia| The Saigon Times

The local stock market extended its rising streak to the third consecutive session on May 3 as blue chips came back strong after a long national holiday, lifting the VN Index up 1.81 points, or 0.25%, at 719.54.

Active put-through transactions with the total value of more than VND855 billion spurred turnover on the HCM City market, including large deals of FIT and QCG. Overall, there were 229.5 million shares worth VND4.7 trillion traded, up 20.4 percent and 6 percent against the previous session respectively.

The VN30 basket saw 16 rising stocks versus 12 others closing in the red, allowing the VN30-Index to gain 4.5 points, or 0.66%, at 684.99, with REE giving significant support to the increase.

According to the website tinnhanhchungkhoan.vn, REE shot up to the ceiling price for the first time since July 2015 after posting up a record high in quarterly profit result in the January-March period of 2017. The firm closed the session at VND29,700 with trading volume soaring to 4.6 million shares.

Notably, four banking and financial stocks MBB, VCB, CTG and BVH added nearly 0.26 percent to the main index's rise. MBB jumped 6.3 percent at VND16,800 per share with 4.1 million shares exchanged, extending its winning streak on high volume to the fourth straight session.

The sugar sector also reported strong rises, with LSS and BHS hitting the ceiling prices and SBT up 3.3%.

Meanwhile, the oil and gas industry performed poorly due to oil price slide. GAS ended the day with a 0.54 percent fall while PVD plunged to the floor price given high selling pressure from local and international investors, closing at VND16,500 per share on trading volume of 6.1 million shares.

Speculative stocks FIT, QCG, TSC and HHS also went up to the upper limits. HHS saw its profit tumbling in the first quarter but its chair Do Huu Ha just acquired 10 million HHS shares, allowing the stock to jump 6.8 percent at nearly VND4,400 a share on matching volume of 8.8 million shares.

The HNX-Index rose 0.29 point, or 0.32%, at 89.82, with turnover improving to VND511 billion. ACB and SHB remained in the spotlight for leading the market for liquidity.

While SHB ended at the reference price of VND7,500 per share with 18 million shares changing hands, ACB advanced 2.6 percent to VND23,800 a share on volume of 2.6 million shares. Other large caps like HUT, CEO and MAS and securities stocks BVS, VND and MBS were among biggest gainers.

Like the southern counterpart, the northern exchange reported gloomy trading at petroleum stocks over oil price decline, with PVS, PVC, PGS and PVB losing between 1.9 percent and 5.5 percent each.

http://english.thesaigontimes.vn/53756/VN Index-rises-to-near-720-points.html

Shares extend gains on growth of bank stocks 05/May/2017 Intellasia| VNS

Shares extended their rise on Thursday morning, backed by strong growth of banks. The benchmark VN Index on the HCM Stock Exchange was up 0.4 per cent at 722.5 points. On the Hanoi Stock Exchange, the HNX-Index inched up 0.04 per cent to 89.9 points. Six of nine listed banks advanced following positive business reports in the first quarter of this year. The three largest lenders BIDV (BID), Vietcombank (VCB), Vietinbank (CTG) increased between 1.8

per cent and 2.5 per cent each. Pre-tax profits of these banks all surpassed VND2 trillion (US$88 million) in the first quarter. Smaller banks such as Sacombank (STB) and Eximbank (EIB) also advanced thanks to impressive profit

growth in the first three months.

Only Military Bank (MBB) and Sai Gon-Hanoi Bank (SHB) declined 0.6 per cent and 2.7 per cent, respectively.

On the defensive side, oil and gas stocks continued their slump, such as PV Gas (GAS), PetroVietnam Drillings and Well Service (PVD) and PetroVietnam Technical Services (PVS).

Liquidity remained positive with total 258 million shares worth over VND2.8 trillion ($123.3 million) being traded on the two markets.

Afternoon trade starts at 1pm. http://bizhub.vn/markets/shares-extend-gains-on-growth-of-bank-stocks_285905.html

Sabeco reports 18pct rise in profit 05/May/2017 Intellasia| VNS

Sai Gon Beer, Alcohol and Beverage Corporation (Sabeco) announced its net profit in the first quarter of 2017 rose 18.8 per cent year-on-year to VND1.12 trillion (US$49.78 million).

Sabeco also reported its total revenue increased by 4.9 per cent yearly to VND7.48 trillion, with pre-tax profit up 18.2 per cent to VND1.45 trillion.

By the end of March 31, Sabeco's total assets reached value of VND18.75 trillion, a decline of 2.3 per cent from the beginning of this year with the biggest proportion bank deposits, which reached value of VND6.64 trillion.

Sabeco said in the quarterly financial report released last week that revenue increased sharply because selling prices rose in the first quarter, making the percentage of total selling cost in the company's revenue decrease significantly.

In the first quarter, Sabeco sold its entire 0.46 per cent stake in the Vietnam Export Import Commercial Joint Stock Bank (Eximbank), which was recorded at VND36.6 billion on January 1.

The divestment helped increased Sabeco's financial income by 1.5 times to VND145 billion. Sabeco remained the shareholder of nine other companies, including some financial and banking

institutions that are the Orient Commercial Joint Stock Bank (OCB), DongA Bank, PVI Southern Insurance Company and Sabeco Packaging Joint Stock Company.

Among those companies, the biggest investments are in the OCB and DongA Bank with initial values of VND216 billion and VND136 billion, respectively.

Sabeco is listed on the HCM Stock Exchange under code SAB. The company's shares ended Wednesday at VND199,900 per share.

New director arranged Minister of Industry and Trade Tran Tuan Anh has approved Nguyen Thanh Nam becoming the general

director of Sabeco, representing the ministry in managing the use of the State capital in the brewer. Nam is now the deputy general director of Sabeco and also a member of the company's management

board. He was elected to his current position during Sabeco's extraordinary shareholder meeting held in February.

Nam will take the responsibility from Le Hong Xanh, another deputy general director that has been the acting general director at Sabeco since August 2016 and managed the company's board of directors.

After the decision comes into effect in May, Xanh will remain as a deputy general director at Sabeco and will retire in July.

http://bizhub.vn/markets/sabeco-reports-18-rise-in-profit_285889.html

Finance

Banks still yearn for long-term capital 03/May/2017 Intellasia| DTCK

Though banks said they have gradually restructured and balanced the capital structure in accordance with regulations in Circular No. 06/2016/TT-NHNN on reducing the proportion of short-term capital for medium and long-term loans from 60 percent to 50 percent since the beginning of this year, some banks have still raised their interest rates for long-term deposits, along with preferential programmes and promotions to attract capital.

Currently, the deposit rates for long terms of 12 months and above being applied at medium and small scaled banks are about 7.5-8 percent/annum.

Besides, in order to attract capital, some banks add the interest rate ranging from 0.5 percent/annum to one percent/annum for customers depositing from one billion dong or above with terms of 13-15 months.

Specifically, at NCB, the interest rate for 12-month term is 7.6 percent/annum for individuals and 7.7 percent/annum for 13-month term. The terms of more than 18 months have the interest rate of 7.8 percent/annum, or even eight percent/annum for 24-month term.

Similarly, VietABank is also applying the interest rate of 7.7 percent/annum for 13-month term and 7.9 percent/annum for 15-36 month terms. These interest rates are applicable to online savings products and products whose interests are paid at the end of the term.

For conventional savings, the interest rate is about one percent/annum lower depending on the term, but the highest rate is still 7.8 percent/annum for long-term deposits.

Apart from VietABank, NCB, other small and medium banks such as Viet Capital Bank, VietBank, CBBank, SaigonBank, etc. are also applying competitive interest rates.

In Viet Capital Bank, despite a slight reduction in interest rates compared to the beginning of the year, the interest rate for 18-month term remains at 7.8 percent/annum. VietBank applies the highest interest rate of 7.9 percent/annum for 13-month term but only for the savings value of 500 billion dong or more.

Besides long-term deposits, short-term savings rate of less than one year are also applied by small banks at relatively high level, about 5.5-6.7 percent/annum. Along with that are promotions, gifts, and added interest margin if the deposit value is large.

Not to mention, not long ago, to restructure capital under the provisions of Circular 06, many banks have accelerated the issuance of long-term deposit certificates with nearly nine percent/annum interest rate in order to attract idle money from the people in which VPBank's interest rate is nine percent/annum and Sacombank's interest rate is 8.88 percent/annum for 7-year term.

As per the State Bank of Vietnam, it is normal for commercial banks to raise or lower interest rates, depending on their business strategies and market conditions. In fact, the liquidity of the banking system is still rather abundant. There is no pressure to raise interest rates.

However, according to the weekly monetary market report released recently by Saigon Securities Inc. (SSI), interbank interest rates continued to stay high with overnight rates to increase 35 basis points, restoring all falls in the previous week and the highest level in the week was 4.6 percent. The 1-week term also rose 30 basis points to 4.7 percent/annum.

Thus, after a short period of cooling down, interbank interest rates returned to the 4.6 percent-4.9 percent/annum established since March. Not only the interbank market, interest rates on Market 1 also swelled in short terms.

As noted by SSI, interest rates for short terms under six months increased 20 basis points. Specifically, the interest rate for one-month term swelled to 4.7 percent/annum and the interest rate for three-month term improved to 5.7 percent/annum. Meanwhile, the interest rate for long terms remained stable at high level.

In 2017, the proportion of short-term capital for medium and long-term loans for banks is 50 percent instead of 60 percent as in 2016. Therefore, it is understandable for banks to apply long-term interest rate at high level. Also in Q1/2017, according to reports of some credit organisations in HCM City, deposit rates increased 0.07-0.2 percent/annum for terms of over 12 months and medium and long term lending rates inched up about 0.03 percent-0.1 percent/annum from the end of last year.

This slight adjustment is aimed at restructuring the capital source as well as using capital in line with market developments, ensuring capital adequacy ratios in the operation of credit organisations.

Bank leaders say they are gradually lowering the proportion of short-term capital for medium and long-term loans.

For example, in Eximbank, Le Van Quyet, CEO of the bank said, as of March 31, 2017, the proportion of short-term capital for medium and long term loans reduced from 55 percent to 45 percent, lower than the level required by the State Bank. The capital mobilisation grew 7.7 percent compared to the end of 2016, fulfilling half of the annual plan.

Not just Eximbank, the credit growth target of many banks in this year is to promote short-term loans and gradually restructure the capital source to meet the roadmap that at the beginning of 2018, the proportion of short-term capital for medium and long-term loans goes down to 40 percent as prescribed. This is one of the reasons for the increase in deposit rates in recent months.

Besides, as per experts in the banking sector, another reason for deposit rates to increase slightly is that banks need to prepare liquidity well to meet the improving credit demand. Accordingly, credit of the banking sector as of the end of March 2017 swelled more than four percent from the beginning of the year. Banks need to be prepared to meet the capital needs of businesses.

In this context, some argue that, the adjustment of deposit rates will lead to the upward trend of lending rates, going against the target of lowering interest rates to support the production and business activities of businesses.

However, financial expert Huynh Trung Minh said because of having to compete intensely to keep the credit market share, banks will be difficult to raise output rates. Instead, when mobilising, banks need to calculate how to use this capital source effectively.

As per the information about the industry's activity in March 2017 which was recently released by the State Bank, in the first three months of 2017, this agency continued to alleviating operating interest rates through reasonable liquidity regulation to support credit organisations stabilise interest rates; directing credit organisations to cut costs and enhance business effectiveness to strive to reduce lending rates. The market interest rates in Q1/2017 were relatively stable.

Currently, deposit rates are popularly 4.8-5.4 percent/annum for less than 6-month terms; 5.6-6.7 percent/annum for six months to less than 12-month terms; 6.7 percent-7.4 percent/annum for more than 12-month terms. Besides, lending rates are 6-9 percent/annum for short terms and range at 9-11 percent/annum for medium and long terms.

Banks simultaneously report large profits

03/May/2017 Intellasia| Vnexpress

A series of banks have just released Q1/2017 business results with profits ranging from a few hundred billion to trillions of dong.

As per Q1/2017's consolidated financial statement released recently by Vietcombank, the bank recorded the after-tax profit of 2.209 trillion dong, up 20 percent year-on-year.

Another large bank i.e. Vietinbank also recorded relatively positive consolidated business result with 2.544 trillion dong pre-tax profit (equal to a year-on-year increase of 5.8 percent) and 2.039 trillion dong after-tax profit.

At the end of the first quarter, BIDV's total pre-tax and after-tax profit was 2.277 trillion dong and 1.848 trillion dong respectively, up more than nine percent over the same period last year.

Recording the trillions of dong profits in the first quarter of the year, it is worth noticing that bank "giants" are strongly increasing their operating and provisioning expenses. For example, as the operating cost improved 33 percent (about 3.149 trillion dong), Vietcombank's pre-provisioning net profit only swelled 14.8 percent, reaching 4.137 trillion dong.

Similarly, Vietinbank's operating expenses in the period was more than 3.114 trillion dong (up nearly 470 billion dong compared to the same period last year), mainly thanks to the increase in allowances and assets. The bank's credit risk provision in the period was more than 2.064 trillion dong, up 623 billion dong compared to the first three months of 2016.

In the opposite direction, joint stock commercial banks have been minimising costs. Therefore, the attained profits surged over the same period.

Two among joint stock banks that have announced the first quarter business results with impressive figures are Eximbank and Sacombank.

At the end of the first quarter, Eximbank recorded 170 billion dong pre-tax profits, five times more than the same period and the after-tax profit remained at 136 billion dong. This was because the bank sharply reduced operating costs by about 20 percent (to 531 billion dong) and the risk provisioning costs dropped as much as 60 percent (133 billion dong).

Also thanks to the maximal reduction of operating and provisioning costs that Sacombank's pre-tax profit hiked 1.5 times over the same period, hitting 309 billion dong. The after-tax profit was 210 billion dong.

VIB also recorded the increase in profits over the same period when attaining 157 billion dong pre-tax profits (up 11 percent) and 125 billion dong after-tax profit.

As per the Statistical Forecasting Department (under the State Bank of Vietnam), the capital mobilisation of the entire banking system rose an average of 4.5 percent in Q1/2017, mainly the mobilisation of dong while the foreign currency mobilisation only swelled slightly (less than one percent). The outstanding credit of the entire system is expected to increase only about 4.1 percent.

With positive profit figures in the first quarter of the year, a leader of a joint stock bank said the increasing trend of outstanding credit will continue and is one of the factors to forecast a brighter profit picture of banks in 2017.

However, he also noted that, it is impossible to ignore the hidden bad debts. "Although many banks have declared the acquisition of debts from Vietnam Asset Management Company (VAMC) in the past year, it is

not the reason to ignore measures to prevent future liabilities. Once it comes back, the bad debt settlement will cost a lot more money", he warned.

Shareholders long for transparent banks

03/May/2017 Intellasia| DTCK

Talking with small shareholders at the recently held general meetings of commercial joint stock banks, Dau Tu Chung Khoan noted that the top concern of shareholders at the moment is not really the dividend payment in cash or in shares. Instead, that is the expectation of a transparent bank that has clear solutions to handle problems.

On March 17/2014, the State Bank of Vietnam (SBV) issued Document No.1601/NHNN-TTGSNH regulating the selection of 10 banks to pilot complying with Basel II with two expected compliance timelines including 2015 (for standard method) and 2018 (for advanced method).

Accordingly, the 10 banks are piloting to apply Basel II standards and guidelines in 2008-2020 besides a number of banks that were not selected to pilot but are pro-active in implementing it.

What shareholders are concerned about is that if being implemented and applied properly, Basel II will help local banks operate more safely, improve their capital use effectiveness and allocate better sources to appropriate risk assets in order to benefit banks and improve shareholders' returns.

Besides, Basel II will help improve transparency by setting requirements on disclosure of information such as risk profiles and risk management policies. This will allow shareholders and investors to have more accurate assessments about banks' operation.

To meet these requirements, commercial banks have had positive developments in actively assessing real-world disparities with Basel's requirements to develop implementation roadmap and have in reality implemented some projects under the roadmap. However, a shareholder shared "the implementation of Basel II of some banks seems to be more about promoting their image rather than implementing intrinsically".

A senior leader of BIDV said "It is not easy to let every division in a bank to understand the Basel II implementation and cooperate in the implementation. Therefore, the process may not be as expected".

Regarding this issue, Nguyen Thuy Duong, deputy CEO of EY Vietnam said "Due to many factors, comparing with the original plan, it is clear that the implementation of Basel II is significantly slower than expected. This delay is partly due to the fact that Basel II implementation faces more difficulties than the original thinking and requires more positive moves from both commercial banks and the State Bank".

At the 2017 annual general meeting, ACB CEO Do Minh Toan said regarding loans from six companies related to the former Chair Kien, so far, the bad debt after putting for provision is 1.5 trillion dong

In 2016, the bank collected three trillion dong of debt and put 1.115 trillion dong for provision. Earlier, as per information from ACB's management board, as of December 31, 2015, the total bad debts of these six groups of companies were nearly 5.8 trillion dong, of which the outstanding loans was nearly 1.9 trillion dong, the balance of bonds was 2.7 trillion dong and other receivables were nearly 1.2 trillion dong.

As per a leader of a fund management company, ACB's activities will have limitations as long as bad debts are not fully resolved.

A similar case is Sacombank related to the merger with Phuong Nam Commercial Joint Stock Bank (PNB). Sacombank's business result and asset quality in 2016 were still negatively affected by the acquisition of PNB especially the bad debt issue after merger. The NPL ratio was 5.4 percent at the end of 2016, the highest level in the group of listed banks in the stock market and higher than the system's average.

Or in Eximbank, the NPL ratio is also concerned by shareholders when soaring from 1.86 percent at the end of 2015 to 2.95 percent at the end of 2016.

Besides, a story that shareholders are concerned about is bank profits still rely heavily on credit, including large banks such as BIDV or Vietcombank. For small banks, interest from credit segment may account for 80-90 percent, even off-setting other business losses.

This shows that the income from non-credit activities of banks is very modest while profits from credit is potentially very risky, especially when interest rates suffer from increasing pressure as the current moment.

M&A in insurance sector still ongoing

03/May/2017 Intellasia| DTCK

Along with the tendency to acquire shares to transform into 100 percent foreign-owned or domestic insurance companies which is taking place in life insurance join ventures, the insurance market of Vietnam is said to further witness brand transfers in the near future.

"Mergers and acquisitions (M&A) in insurance industry, for both life and non-life segments, is not only a trend of the foreign market, it will spread to the market of Vietnam", said an expert.

Meanwhile, in the forecasts on the insurance market in 2017, experts in the industry also assessed that M&A remain an important target, as insurance companies are looking for other directions to develop.

According to an expert, there has recently been some information about M&A of major insurance brands in the European insurance market. However, the information given is only in the form of rumours with an aim to probe the reaction of the market. However, the need to conduct M&A for expansion exists and not only large insurance corporations in the Europe but the Asian market is also identified as a destination for this trend.

This expert also mentioned that there are different forms to carry out M&A deals in insurance industry, and one of that is to consider entering new market by setting up a subsidiary and participating in a joint venture with local partners. In addition, raising the limits of Foreign Direct Investment (FDI) in markets such as China and India will also encourage M&A in insurance sector.

A few years ago, entering the insurance market by joining into joint ventures with local partners, particularly for banks and multinational corporations, is one of the most prominent trends of the Vietnam's insurance industry, mainly life insurance. However, the current reality shows that the Vietnam's emerging insurance market has also created new foreign insurers new "turns."

For example, the new trend is that foreign insurers initially contribute capital and acquire all the stake of local partners to become a 100 percent foreign-owned firm. The insurance market in the recent time has witnessed some of the M&A deals like this, such as the deal of Sun Life Vietnam, which has recently become Aviva, etc.

Experts recognised that this trend has not stopped in the insurance market of Vietnam. There is currently some information about a Thai insurance financial group negotiating to buy shares of its partners which are insurance firms in Vietnam.

Certainly, apart from acquiring stake of partners, there will be M&A deals carried out at corporate or regional levels. These deals will have a certain impact on the development strategies of insurance firms in local markets, including Vietnam.

"Acquiring brands with limited market share and poor growth to later invest in brand renewal and wait for the opportunity to resell is a new direction of some financial corporations. This trend will occur in many markets, not just the insurance market of Vietnam", said an expert.

Sharing about the M&A trend in the insurance industry in the near future, CEO of an insurance firm said that if there are M&A deals to be carried out in life insurance market of Vietnam, the trend of acquiring to own 100 percent stake will be given priority over the trend of forming joint ventures like in the past. This is due to many factors, in which the typical one is the fairly faint development of the life insurance joint ventures in Vietnam, which caused this M&A form of participating in joint ventures to be not popularly chosen by financial groups.

Meanwhile, for non-life insurance sector, large financial corporations in the world still want to further pour capital into the firms holding large market share in Vietnam. If foreign investments are made, local non-life insurers will have additional business capital and technical support.

The big players in the fintech market

03/May/2017 Intellasia| Vietnamnet

In 2007, the State Bank began testing intermediary payment services. Nine pioneers in the market received licenses to provide services. By February 2017, the number of service providers had reached 20, each of which targeted specific groups of clients.

Vietnam's fintech market has attracted many investors, both foreign and domestic. Chinese Gobi Partners invested in OnOnPay, South Korean UTC Investment in VNPTPay, while funds of Exprerian, Kusto Tiger and Unitus Impact and the bank of Sumitomo invested in Mobivi. Meanwhile, Viettel injected money into BankPlus and MobiFone into Vimo.

Pham Thanh Duc, CEO of MoMo, said with the current technology development, Vietnam should have had 20 million mobile payment users and transaction value of $25 million, if referring to the Chinese market.

While banks have mobile banking apps that connect users (with bank accounts) and bank services, MoMo allows clients to do the same thing without bank accounts.

MoMo identifies accounts via user's phone numbers. Users can cash in from MoMo's outlets or through banks. This money is used for money transfer or payment for services and goods.

In Vietnam, it is a $35 billion market with each remittance of less than VND5 million, according to MoMo survey of post offices, a UN report and Smartlink.

MoMo, besides the online transaction system, is also running a physical trading system with 4,000 transaction points in 45 provinces and cities.

Like MoMo, Payoo joined the market very early and has made heavy investment in the transaction network, but unlike MoMo, it focuses on providing payment services for electricity, water and TV bills.

According to Ngo Trung Linh, CEO of VietUnion, the company now has 5,000 transaction points throughout the country. In 2016, total revenue from electricity, water and cable TV bills in large cities was $1 billion, or 10 percent of the market share.

Another difference of Payoo is that it doesn't focus on mobile apps, because online services are not enough to attract the majority of internet users, and it also provides internet banking and mobile banking services to partners.

Internet service groups have also jumped on the bandwagon. In late 2016, ZaloPay wallet of Zion, a subsidiary of VNG, was launched, though it had 123pay payment

portal. Integrated with the community of 70 million Zalo chat users, ZaloPay appearsto follow the same way as Tencent with WeChat Pay in China.

Two 'unicorns' in SE Garena (game service) and Grab both have joined the payment service market. Garena's Vietnam branch Vietnam eSports in March 2016 launched TopPay e-wallet. Meanwhile, Grab has tried to attract more users to GrabPay.

http://english.vietnamnet.vn/fms/business/177285/the-big-players-in-the-fintech-market.html

Banker defends ATM fees 03/May/2017 Intellasia| DTI News

The general Secretary of the Vietnam Banks' Association Nguyen Toan Thang unsurprisingly defended Vietnamese banks charging ATM collecting fees after public complaints about 25 kinds of under-the-counter fees.

It has been said that there are about 25 kinds of fees for basic ATM services that consumers aren't informed about. Why do the banks think have the right to impose so many fees?

The banks have upgraded technology and provided more varied services to customers. Each service has its own fee that has been calculated carefully. The banks are collecting fees to offset their investment. However, customers don't have to pay for services that they don't use.

The ATM users normally only have to pay the fees for using the machines and transferring money. Many people have raised concerns about the security and quality of ATM services. For example, ATMs

often run out of money, give damaged banknotes or have technical problems during holidays. Is the ATM upgrading process really going to improve service quality and security?

The government and the State Bank of Vietnam have repeatedly told banks to improve their banking services including ATM services. The security problem was also discussed during the annual meeting of Vietnam Bank Card Association. The technology is constantly invested in and upgraded.

The bank card market in Vietnam has improved. What do you think is the biggest achievements? When Vietcombank issued its first credit cards in 1996, there were only a few ATMs installed for some

few hundred card holders. Now there are over 100 banks cards have been issued by 53 facilities. Vietnam has over 17,000 ATMs installed and customers can use the ATMs for inter-banking transactions too. The cards have become a common and familiar means of payment to the public.

What should the banks do to further improve their services and technology, especially for the card holders?

Policies and legal frameworks for non-cash payments must be more detailed and completed to meet increasing demands from the customers. The banks must focus on building the technology infrastructure and have security measures to make their services faster and safer.

http://www.dtinews.vn/en/news/018/50644/banker-defends-atm-fees.html

Vietcombank plans to divest from some banks 03/May/2017 Intellasia| Infonet

At the recently held annual general meeting (AGM) of the Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank), the bank announced plan to divest part of its investment in other banks.

The capital divestment was mentioned at the bank's AGM in 2016 but due to market conditions, this plan still has not been implemented. In 2017, although the specific roadmap still has not been announced, Vietcombank had a clearer plan for investments in other banks.

Specifically, the bank plans to retain its stake in Military Joint Stock Commercial Bank (MBB). Currently, its ownership rate at MBB is 7.16 percent, and the investment value is 1.243 trillion dong.

Meanwhile, the bank is considering to withdraw investment from Eximbank with 8.18 percent stake and investment value of 582 billion dong; Orient Commercial Joint Stock Bank with 4.72 percent stake and investment value of 144.8 billion dong; SaigonBank with 4.3 percent stake and investment value of 123.5 billion dong; Cement Finance Joint Stock Company with 10.91 percent stake and investment value of 79.95 billion dong.

Vietcombank estimates to earn about 700 billion dong profits from the capital divestment from MBB and Eximbank. However, as there has not had a specific plan, these figures are still estimates only.

The meeting approved the plan on separate issuance of 10 percent in 2017 as the issuance proposal to GIC last year was not approved by authorities. The reason was the asking price was lower than the market price. This year, the bank's management board sought approval from shareholders for a similar approach with some adjustments, i.e. Vietcombank will focus on capital increase in the form of separate issuance. In case of arising unexpected difficulties, the public offering option can be an alternative.

In case of separate issuance, Vietcombank will continue seeking 10 potential investors. The asking price is not less than the valuation from independent consulting unit and is not lower than the market price but also depends on the approval of authorities. The issuance time is expected to take place in 2017-2018.

After the issuance of 359.77 million shares, Vietcombank's charter capital will swell to more than 39.575 trillion dong and the Capital Adequacy Ratio (CAR) is estimated at nine percent, up significantly compared to the current level of 6-7 percent (under Basel 2 standard). As per Circulars No.36 and 06, Vietcombank's CAR was 11.13 percent at the end of 2016.

Also at the meeting, Vietcombank announced Q1/2017's business result with the pre-tax profit to hike 19 percent year-on-year, reaching 2.737 trillion dong, thanks to the 8.4 percent increase in credit from the beginning of the year.

Vietcombank set to up capital to $1.74 billion

03/May/2017 Intellasia| VNS

Vietcombank (VCB) shareholders approved the lender's plan to issue an additional 360 million shares, equivalent to 10 per cent of its capital, to expand its charter capital to almost VND39.6 trillion (US$1.74 billion).

The shares will be sold either to the public or offered to no more than 10 investors (including existing shareholders) in a private placement in late 2017 or next year.

The selling price will not be lower than the price chosen by a valuation institution and its closing price on the HCM Stock Exchange on the trading day preceding the issuing date.

Vietcombank plans to use about VND3 trillion of the proceeds from the issuance to expand lending and other business activities, as well as fund possible mergers and acquisitions (M&As).

At the bank's annual shareholders' meeting on Friday, its chair Nghiem Xuan Thanh said M&As would be a long-term strategy and should ensure that Vietcombank expands its network and accesses new markets.

Regarding this criteria, Thanh said Vietcombank has not yet found suitable partners. Vietcombank has two major stakeholders, of which the State Bank of Vietnam owns 77.11 per cent and

Mizuho Bank 15 per cent. Mizuho is the only foreign strategic investor of Vietcombank. In August last year, Vietcombank and Singapore sovereign wealth fund GIC signed an agreement for

GIC to acquire a 7.73 per cent stake, equivalent to 305.8 million new shares in the bank's planned private placement of nearly 360 million new share issue.

The transaction, subject to approval by the prime minister and the State Bank of Vietnam, has not taken place as by the end of last year GIC's offer was considerably lower than market value. Thanh said Vietcombank would re-negotiate with GIC for a better price.

Vietcombank is the most expensive bank on the stock exchange with a share price ranging around VND35,000 ($1.54) a share. It is also the biggest listed lender with market capitalisation at VND126.3 trillion ($5.6 billion) on Friday.

Divestment from other banks Vietcombank holds capital in five other credit institutions, three more than allowed by the State Bank of

Vietnam. Chair Nghiem Xuan Thanh said the bank would divest from the banks in which its stakes were not high,

including Orient Commercial Joint Stock bank (5.07 per cent), SaigonBank (4.3 per cent) and Cement Finance Joint Stock Company (10.9 per cent) for a combined value of about VND300 billion.

Vietcombank sought to offload stakes in these institutions last year but failed due to low market liquidity. The lender plans to retain its holding in Military Bank (7.16 per cent) given the bank's positive

performance and stable dividend payout. However, it will seek the central bank's approval to divest 8.19 per cent of capital from Eximbank (EIB).

Vietcombank's shareholders also approved the 2017 business targets, including growing pre-tax profit by 8 per cent year-on-year to VND9.2 trillion and increasing total assets 11 per cent to VND874.6 trillion.

The dividend rate will remain at 8 per cent this year. The bank expects to expand its credit outstanding by 15 per cent to VND547.1 trillion, total capitalisation

up 14 per cent to VND684.8 trillion and keep the bad debt ratio below 2 per cent. In the first quarter of this year, the bank reported pre-tax profits of nearly VND2.65 trillion, up 15 per

cent year-on-year. Last year, it earned pre-tax profits of over VND8.5 trillion, up 25 per cent year-on-year. http://bizhub.vn/banking/vietcombank-set-to-up-capital-to-174 billion_285828.html

NCB to raise total assets to $4.2 billion 03/May/2017 Intellasia| VNS

The National Citizen Joint Stock Commercial Bank (NCB) will raise total value of its assets to VND95 trillion (US$4.2 billion) in 2017, up nearly 40 per cent from last year.

This was stated at its shareholders meeting on Thursday. The bank's net revenue is expected to reach VND350 billion, up 60 per cent against the previous year.

Bad debt rate has been kept at below three per cent. This year, NCB will focus on improving its business model, enhancing risk management capacity and

expanding customer and partner ecosystems. It will select foreign strategic shareholders among its partners, who are interested in adding VND3

trillion more to NCB's charter capital. In 2016, NCB introduced a development strategy for the 2016-20 period and performed impressively. The State Bank has approved NCB's plan to open six more transaction points. NCB's report showed that the bank's total assets were valued at VND70 trillion ($3.1 billion) in 2016,

registering a growth of 43 per cent against 2015. Capital mobilisation and lending recorded high growth, hitting over VND18.5 trillion and VND8.9

trillion, respectively. The bank's 2016 revenue reached VND211 billion, 91 per cent higher than 2015. The quality of the

balance sheet improved and the rate of bad debt stood at below three per cent. NCB, established in 1995, started off as a bank for the agricultural sector before transforming into a

commercial bank in 2014. http://bizhub.vn/banking/ncb-to-raise-total-assets-to-42 billion_285818.html

AIA delivers record new business performance for Q1 03/May/2017 Intellasia| VOV

AIA Group Limited (stock code: 1299) today (April 28) announces record growth of 55 per cent in value of new business (VONB) on constant exchange rates (CER) for the first quarter ended 28 February 2017.

Mark Tucker, AIA's Group Chief Executive and President said,"We are pleased to report that AIA has made an excellent start to the year with record VONB growth of 55 percent to $884 million. This is also the highest quarterly VONB result since our IPO in 2010.

"AIA continues to deliver a strong track record of year-on-year growth andour dedicated teams remain highly focused on building a high-quality, sustainable business for the long term. Today's headline figures reflect our robust operating performance and the consistent execution of our growth strategy over time.

"I have said many times that the powerful and structural economic, social and demographic changes taking place across Asia present an unparalleled opportunity for AIA. The alignment of AIA's significant competitive advantages developed over its long history in the region with these long-term structural trends

means that the Group is exceptionally well-placed to help customers meet their substantial needs for financial protection, long-term savings and private healthcare provision through insurance.

"We were delighted to announce on 13 March that Keng Hooi will succeed me as Group Chief Executive and President upon my retirement from the Group. Keng Hooi has an outstanding track record of operational execution and strong leadership throughout his extensive experience in Asia.

"Since the announcement, Keng Hooi and I have been working very closely together to ensure a smooth and orderly transition and I am pleased to report that this process will be completed ahead of plan. As a result, we have announced today that Keng Hooi will formally assume his new role effective from 1 June 2017. I will remain a director of AIA Group Limited, in a non-executive capacity, from then until 31 August 2017.

"It has been a great privilege to lead AIA and I am enormously proud of the Group's achievements since IPO. AIA is an extraordinary business and I am highly confident that the Group will continue its success under Keng Hooi's leadership."

http://english.vov.vn/economy/aia-delivers-record-new-business-performance-for-q1-348583.vov

Reference exchange rate goes up 6 VND 04/May/2017 Intellasia| VNA

The daily reference exchange rate for VND/USD was set at 22,355 VND per USD on May 4, up 6 VND from the previous day.

With the current trading band of +/-3 percent, the ceiling rate applied to commercial banks during the day is 23,025 VND and the floor rate 21,685 VND per USD.

The opening hour rates at commercial banks also went up slightly. Vietcombank raised both its listed rates by 15 VND, to 22,710 VND (buying) and 22,780 VND (selling) for one USD.

The buying rate at Techcombank was increased by 15 VND to 22,700 VND and the selling rate increased by 25 VND to 22,800 VND.

At BIDV, the buying rate was listed at 22,705 VND and the selling rate 22,775 VND, both up 10 VND from May 3.

http://en.vietnamplus.vn/reference-exchange-rate-goes-up-6-vnd/111152.vnp

Unusual exchange rate moves 04/May/2017 Intellasia| Thoi Dai

The exchange rate was applied at commercial banks at 22,739 VND/USD on April 29th. This rate was only 0.1 percent higher than December 31st 2016.

If comparing to other currencies in the region and the world, it can be seen that except for the PHP exchange rate of the Philippines, the dong experiences the least volatility, or is the most stable among these currencies.

What contributed to this stability? First of all, contrary to the previous major instabilities, the stability of the VND/USD exchange rate in

the recent time is apparently thanks to a decisive and objective favourability - the significant weakening of the USD against other currencies, which also means the considerable appreciation of other currencies against the USD.

The reversal and appreciation of other currencies against the USD has made it easier for the State Bank of Vietnam (SBV) to "tie" the VND to the USD. The agency no longer has to struggle against the devaluation pressure of VND to on one hand maintain the competitiveness of Vietnamese exported goods, and on the other hand to protect the local market from the sharp rise of imports from the countries of which currencies depreciated against the USD as before.

However, things are not just that. A very notable point is that the reference exchange rate in the recent time has quite frequently adjusted. Closing the last week, the central rate of SBV increased by 11 VND to 22,350 VND/USD compared to the beginning of the week, the highest level so far. Four months ago, as of December 31st 2016, the central rate was 22,159 VND/USD. Thus, it has risen by 0.86 percent in the past four months.

In the context when the VND/USD exchange rate applied at banks has been fairly stable and sometimes declined (VND appreciated), the raise of central exchange rate by SBV seems to be a reverse move a puzzling issue. Previously, SBV only increased the reference exchange rate (or the interbank exchange rate in the past) when it was in a checkmate.

However, if considering some other factors, the recent central rate increase of SBV is no longer paradoxical. Firstly, the economic growth in the first quarter has slowed down and recorded the lowest level in the same period of the last three years. Secondly, the trade deficit has constantly risen in the past four months, currently reaching 2.74 billion USD, a "shocking" level as called by a newspaper. Meanwhile, the lending rates remain high and even under the pressure to increase, and inflation has only cooled down recently as the Consumer Price Index (CPI) in April was unchanged compared to March, after accelerating in the first quarter of the year compared to the same period of the last few years.

In such context, SBV would have to be very cautious in loosening the money supply to lower interest rates in order to boost growth, because it may lead to inflation rise. Increasing the money supply to lower interest rates also means to expand the aggregate demand, resulting in an undesirable consequence that imports will continue to increase (if the exchange rate remains stable), and thus the trade deficit will go up.

Facing this difficult situation, the doable move with the least macro loss for SBV is to signal or directly make intervention to weaken the VND against the USD, escaping from the currently stable condition. The depreciation of VND will also make the goals to promote growth and reduce trade deficit to be achievable at the same time. And if SBV weakens the VND without having to inject more VND into the market, this weakening of VND will not increase the inflationary pressure.

Thus, the central exchange rate hike made by SBV and the increase of USD selling price to 23,001 VND by SBV's Operations centre on April 28th were the signals showing that the management authority expected to let the VND to weaken directly by supplying USD in the role of the last supply source to the market at a price higher than the market price.

This interference to the exchange rate will not increase the pressure on inflation because the VND supply is not raised. Certainly, this move will have little effect on the exchange rate as long as the foreign exchange market continues to self-balance between supply and demand without having to rely on the USD supply from the SBV.

However, if the trade deficit continues to increase in the near future, USD will become scarcer on the foreign exchange market, and banks will have to look for the USD supply from SBV at higher price, thereby increasing the VND/USD exchange rate on the foreign exchange market. As a result, imports will cool down and imports will receive an additional push to grow stronger, thus further improving the economic growth.

In summary, the recent exchange rate operation of SBV is on the right track. It can be considered as the only option in the context of many difficulties and multiple targets. It is also possible to see that SBV will continue to let the exchange rate increase in the near future, regardless of the general weakening of USD, if the growth continues to slow down and trade deficit still increases.

Concerned about NPL increase, banks tighten credit granting for real estate

04/May/2017 Intellasia| DTCK

Contrary to the trend of growing lending for individual home buyers and more focusing on this segment, banks are increasingly cautious in funding real estate investors. In particular, many banks no longer have policy to grant credit to real estate investors even though credit room for this segment is still available.

A representative of a big commercial bank says that despite the bank's large credit room for real estate, the direction of the Board of directors (BOD) and Board of managers (BOM) is to focus on real estate for individuals having housing needs, not for business. Especially, this bank always says "no" to real estate project owners.

This representative added that this funding is only limited to the projects that the bank have relationship with and promise good output to avoid the risk of NPLs. As a result, in the first 3 months of the year, the bank's credit growth for real estate was merely 30%, decreasing compared with the same period last year.

In order to achieve 2017 plan of over 2.2 trillion dong profit, ACB plans to focus on lending for only individuals and SMEs, increasing the proportion of low-cost capital and profit from services, especially e-bank and NPLs recovery, etc. In particular, for individuals, ACB concentrates on home loans. Credit application during this period gets preferential interest rate of 7.5 percent per annum.

According to Tu Tien Phat, deputy CEO of ACB, the total amount for this programme is up to 6 trillion dong, in which the expected credit balance for individuals accounts for 55 percent of the total balance.

He also believes that the growth rate of home loans will not increase significantly this year, just slightly higher than 2016. In fact, credit demand and limit of recent loans for individuals fluctuates between only 0.8 and 1 billion dong. The bank also plans to control high-end real estate projects carefully and focus more on home loans for individual clients.

According to Pham Manh Thang, deputy CEO of Vietcombank, the bank promotes only home loans for individuals and the lending rate is quite competitive compared to the general level of the market. The bank has not focused on lending for real estate projects for long due to the stricter risk appetite of NPLs.

Le Van Quyet, CEO of Eximbank says that after difficulties and challenges in 2016, BOD and BOM of Eximbank are now focusing on stabilising the Bank, settling NPLs and maintaining NPL rate of under 3%, etc.

In particular, the bank plans to increase the credit balance, adjust credit portfolio to a healthier one which reduces risk, control credit risk in real estate sector, BOT transportation projects and promote short-term credit for manufacturing and potential fields...

In fact, with the current situation of the real estate market, not only senior banking managers but also shareholders become more cautious in funding real estate investors.

For example, at HDBank, a shareholder asked whether the disbursement of the bank to a real estate project owner in Nha Be district (HCM City) was risky and potential for a NPL in the future. In response to this question, HDBank said that the bank still complies with SBV's lending rate. Moreover, this is just a small-scale project and the bank still ensures all the requirements of risk management.

From the perspective of the regulator, SBV representative said that the agency would monitor closely credit institutions which perform in some risky areas such as lending to large corporate customers, investment credit, real estate business, and BOT, BT transport projects, etc.

Therefore, according to managers of many banks, when bad debts have not been resolved thoroughly, capital pouring to real estate investors will have to gradually be limited. Instead, home loans for individuals should be focused.

Banks seek new way to increase deposit rates

04/May/2017 Intellasia| Nguoi Lao Dong

Many banks have launched new types of capital mobilisation with higher interest rates than normal savings rates to attract more capital and ensure the capital adequacy ratio following regulations.

The two hundred million dong online savings at a joint stock bank has just come to maturity; Le Minh Nguyet (District 9, HCM City) received a phone call from bank staff advising her the way to renew it to gain higher interest rates. Accordingly, with the normal way of depositing, Nguyet only receives 4.8%/annum for one-month term but if participating in the promotional programme, the interest rate will increase to 5.5%/annum.

At Vietnam Export Import Joint Stock Commercial Bank (Eximbank), HCM City branch, we are advised about the promotional programme namely "Mua vang gui tien, nhan ngan qua tang" (or Golden season for depositing with thousands of gifts).

Accordingly, people who deposited at Eximbank's counter or through its internet banking, mobile banking will be entitled to enjoy higher interest rates if participating in this programme. Specifically, interest rates are 5.5%/annum for 1-3 month terms (touching the ceiling rate regulated by the State Bank); 6.6%/annum for 6-month term; 6.9%/annum for 12-month term.

Eximbank's staff said if customers sell 10 taels of gold that the bank is holding or sell $10,000 and then deposit, they will also be added the interest rate of 0.2-0.6%/annum compared to the normal deposit method.

As noted at some other joint stock commercial banks, though the interest rate for less than six month term is not raised to the ceiling, it attracts customers by a series of attractive promotional programmes, instant gifts and end-of-the-term sweepstakes whose value amounts to billions of dong.

Representative of a commercial bank explains in order to comply with the government's direction about no interest rate increase while striving to lower lending rates, promoting credit right from the beginning months of the year, this bank applied appropriate interest rates to attract depositors and not to put pressure on interest rate increase in the market.

Deputy CEO of a joint stock bank in HCM City said credit growth has been quite high since the beginning of this year. Therefore, the demand for attracting deposits at some banks is real. The credit growth, according to the statistics of the State Bank, reached 4.03 percent in January-March 2017, quite high compared to the same period of the previous years.

In HCM City alone, the credit in the first four months of the year swelled 6.25 percent while the capital mobilisation improved more than 1.77%. The credit demand from the market is forecasted to increase sharply in the near future. Therefore, it is understandable that commercial banks prepare input capital sources.

Meanwhile, interest rates in interbank market are also quite high. As per the statistics of the State Bank, by mid-April 2017, the average interbank interest rate was 4.62%/annum for overnight term; 4.75%/annum for one-week term and 5.15%/annum for 6-month term.

However, as per some banks, not all banks having demand for mobilised capital can borrow on interbank market because they must have to meet conditions of valuable papers, prestige and loan terms are normally short.

Some banks that need capital have strengthened the capital mobilisation from the population through promotional programmes but must meet regulations on ceiling rates of the State Bank, including gifts and sweepstakes.

Talking with reporters of Nguoi Lao Dong (or Labourer) newspaper, Nguyen Hoang Minh, deputy CEO of the State Bank's HCM City branch said there will have inspections of commercial bank's interest rate increase for short terms to the ceiling rate through promotional programmes.

Though this does not violate the regulation on interest rate cap, it may affect interest rates and create an interest rate race among commercial banks in attracting capital from the population.

The proportion of short-term capital for medium and long-term loans is currently 50 percent (as prescribed for 2017 compared to 40 percent in 2018) but many bank leaders admit that the entire system must strengthen the mobilisation of both short-term and long-term capital. As the input capital increases, the use of short-term capital will decrease, helping banks meet long-term capital demand of businesses.

This explains why some banks have designed many capital mobilisation programmes in several months to attract more capital and have not raised interest rates in the regular savings list in order to avoid affecting the target of stabilising interest rates.

Meanwhile, as per the state bank, the deposit rates in dong are commonly 4.5%-5.4%/annum for deposits of one-month to less than six-month terms; 5.4%-6.5%/annum for deposits of six-month to less than 12-month terms; and 6.4-7.2%/annum for more than 12-month terms.

Particularly, the common lending rates for priority areas are 6-7%/annum for short-term; 9-10%/annum for medium and long terms. For good customer group with healthy and transparent financial situation, short-term lending rates are 4-5%/annum.

Interest rates for normal production and business sectors are 6.8-9%/annum for short terms; 9.3-11%/annum for medium and long terms. Thus, compared to the beginning of April 2017, the interest rate market fluctuated negligibly. Especially, interest rates for home loans remained stable at 9-11%/annum.

As per many businesses, lending rates have remained quite stable since the beginning of the year and have had no sign of increasing though deposit rates have been adjusted upwards for many times.

Banks rush to set up subsidiaries due to credit tightening

04/May/2017 Intellasia| Bao Dau Tu

As the State Bank of Vietnam (SBV) is tightening credit growth, many commercial banks have had to consider establishing subsidiaries, boosting their services to offset the deficit from the core business segment.

Since the beginning of this year, at least three international organisations have advised SBV about the overheating credit growth after Q1/2017's credit has reached the highest level over the past six years. Facing this situation, SBV is moving to halt the credit growth rate.

The credit growth target that SBV set at the beginning of this year was 18 percent but the source of Bao Dau Tu (Investment Review) said the central bank lowered this growth rate to 16 percent and communicated across the system.

Unlike every year, this is a fixed figure but is not flexibly adjusted as in the previous year. Therefore, many banks had been forced to lower the credit growth target. This directly influences the "budget" of banks because currently, 70 percent of the bank's revenue comes from credit.

This is also the reason why at this year's annual general meeting, a series of banks planned to set up or put into operation subsidiaries to increase non-credit income.

Nghiem Xuan Thanh, Vietcombank's CEO said the Capital Adequacy Ratio (CAR) of the bank is at the "flickering" threshold. If credit continues to rise, the CAR will decrease and there is even a risk of being lower.

That is not to mention, too much credit growth can cause future bad debt risks. Therefore, this year the bank sets the credit growth target at 15 percent only, compared to 19 percent last year. Along with that, Vietcombank also aims at increasing revenue from non-credit segment.

In Q1/2017, Vietcombank's net interest income from service rose more than 20%, the net interest from forex trading improved 14%, the net interest from investment securities swelled more than twice from the same period last year.

Apart from Vietcombank, many other large banks are also racing to reform their service structure, products to reduce the dependence on credit.

CEO of VietinBank Le Duc Tho said in 2016, Vietinbank's profit structure reduced its dependence on profits. Instead, revenue from service was pushed higher. For the first time, the proportion of non-interest income from Vietinbank's service reached 20%.

Obviously, there are three areas that banks are targeting at: remittances, consumer credit and recently debt trading.

At the recent shareholder meeting, Vietcombank announced to set up Remittance Company (which has now been approved by SBV), Consumer Credit Company and debt trading company.

OCB also plans to establish or acquire finance company, debt Management Company, etc. Earlier, in 2016, many other banks such as BacABank, OCB were also licensed to establish companies operating in the field of remittance.

In several recent years, banks have been racing to establish companies in the field of remittance and consumer credit as the room of this market is rather large and potential.

Do Quang Hien, Chair of SHB said SHB Consumer Finance Company will come into operation from Q3/2017 but will bring about the profit of 100 billion dong right in this year. This profit will continue increasing sharply in 2018.

Another potential area that many banks will target in the near future is the debt trading. It is expected that the National Assembly will quickly issue a separate law on bad debt settlement along with mechanisms to protect creditors in the handling of collaterals, making this sector a potential market.

At the recent shareholder meeting, VIB leaders submitted shareholders to approve the debt purchase policy of other credit organisations under market mechanism to exploit business in VIB system. The total value of debt purchase contract does not exceed six trillion dong.

The establishment of subsidiaries and expansion of services and investments, etc. is a positive sign of banks in changing their income structure, thereby reducing their dependence in credit and bad debt risks.

Banks and their delayed listing plans

04/May/2017 Intellasia| Bao Dau Tu

Despite making a lot of noise about listing on the stock market, only one bank has been newly listed on the floor in the past three years. This can be understandable if looking at the stock prices of banks on the Over the counter (OTC) market.

In the shareholders' meeting season this year, numerous banks submitted shareholders the plan to be listed on the Unlisted Public Company Market (UPCoM) in 2017, such as VietABank, TPBank, HDBank, ABBank, and Kienlongbank. Previously, many banks received approval from their shareholders to the listing plans, such as Techcombank, MaritimeBank, OCB, and VPBank, etc.

The Vietnam Securities Depository (VSD) has even granted securities and securities code registration certificates to Kienlongbank, VPBank and Techcombank. OCB and Maritime Bank have also finalised the list of shareholders to carry out the centralised securities registration.

Thus, after three years being quiet, more than ten banks are again thinking about getting listed on the stock market. However, except for VIB which was officially listed on the UPCoM on January 9th, no more banks have get listed.

Explaining the reason for not choosing a particular time to conduct the listing for HDBank, the bank's Standing deputy Chair of the Board of directors Nguyen Thi Phuong Thao said that it is not really a negative point when the stock is not yet listed, because if getting listed in the current time, the stock price will not best reflect the bank value. "HDBank has met the criteria to be listed on the HOSE, and it takes just two weeks to complete the procedures if needed", Thao confirmed.

According to the direction of the prime minister, all banks must be listed on the stock exchange, in order to improve transparency in stock trading as well in financial statements. Thus, whether like it or not, many banks will have to conduct the listing on the UPCoM this year.

According to leaders of securities companies, the listing of banks will make the data more transparent and investors can be easier to identify the financial situation of banks. However, only well-performing banks are attractive to investors, such as VIB, or Techcombank and VPBank in the near future. Their stock

value is very high when trading on the OTC market. In reverse, the listing will reveal the negative points of weak banks, in which NCB is a typical example.

In fact, of the nine stocks of banks listed on the two stock exchanges, only the stocks of some large banks with relatively efficient business performance such as Vietcombank, BIDV, VietinBank, and ACB are attractive. The prices of the remaining stocks are all low, even below par value, typically Eximbank.

According to experts, there are many reasons causing bank stocks in general to be unlikely interested by investors in the near future. First of all, the banking sector remains in restructuring and bad debt handling process. In addition, most banks are under the pressure to increase capital, and thus the ability to pay high dividends to shareholders will be impossible for many coming years.

In the context when the banking sector still has many internal problems and the dividend payment is low, bank shares can hardly regain the top position.

Banks raise up dividend thanks to high profit achievement

04/May/2017 Intellasia| Nhip Cau Dau Tu

The dividend in this year's Annual general Meeting (AGM) season has more or less differed from last year after one year thanks to banks' good business results.

Dividend rise slightly Over the past 10 years, shareholders of Saigon Commercial Joint Stock Bank (SCB) have not felt that

they has had the actual dividend. Of course, it is expected that in the next two years of the approved restructuring, the same is the case.

The fact that SCB cannot pay dividends is understandable. M&A between the Bank and 3 weak banks in the past is still in the process of grappling with bad debt. Vo Tan Hoang, general director of SCB, says that the bank has "recovered" 77 percent of the amount that the inspection team recommended in 2015..

Like SCB, many other banks continue to ask for owing shareholders, such as Maritime Bank, Sacombank or Eximbank. Even Techcombank last year recorded a much higher profit than two years ago, but the Board retains the view of retaining profits to expand its business.

It can be seen that every year there are shareholders standing up claiming the right to receive dividends, or demanding the distribution of cash instead of stock. In fact, over the past three years, the State Bank has controlled the story of cash dividends at banks, forcing bankers to take full responsibility for the full provision of bad loans. Not only small banks, large banks are in the same situation.

However, some banks with good business results in the past year have also proved "more generous" with shareholders. VIB, for example, expects to pay a dividend of 44.6%, which may include cash at 5 percent (subject to approval by the State Bank of Vietnam) and the rest will be bonus shares. This rate is much higher than the 25 percent in the previous year.

Another case is VPBank with a dividend payout ratio up to nearly 31.2 percent (last year was 13 percent in shares). LienVietPostBank adjusted its profit margin from 8 percent to 10 percent (4.5 percent last year), of which 4 percent was paid in cash, the rest was stock.

Similarly, some large banks have also adjusted their dividend payout ratio which is better than they has planned for the year such as ACB or Military Bank. The dividend payout, though adjusted slightly, is a bit higher than the plan, but these numbers are a bit warmer as they show that the bank continues to go up rather than down.

On the whole, high returns have allowed some banks to adjust their dividend levels, albeit mainly in the form of stock. Profit before tax of LienVietPostBank increased 3.2 times, VPBank increased 59%, ACB increased 27%.

Contrary to the picture above, state-owned commercial banks are "more conservative". Vietcombank's dividend payout ratio is 8 percent (previously planned at 10%) in cash, despite a 25 percent increase in pre-tax profit and being the second-highest profitability bank in the system. Similarly, VietinBank offered 7 percent cash dividend (equivalent to previous year) and BIDV expects 7 percent (lower than the previous period of 8.5%) and undecided. Form of cash or stock.

Focus on raising capital In the private sector, despite the high dividend payout ratio, dividend is still mostly in shares. Last year,

VPBank recorded a record profit, but bank leaders still suggested that shareholders would continue to receive shares instead of cash, as banks are in dire need of capital to expand their businesses this year. Similarly, VIB also has big plans for their own.

The pressure to increase charter capital not only comes from the need to expand business, but also from the need of meeting new safety standards. In this respect, the group of state-owned banks are under more

pressure. Vietcombank also reduced its dividend payout ratio, but added that by the end of last year, the bank increased its charter capital by issuing bonus shares to shareholders at the rate of 35%.

Last year, VietinBank and BIDV also "struggled" to keep cash and pay dividends in share but failed. This year VietinBank's plan is to pay dividends in cash, while BIDV still has the ability to divide by shares in the submission of profit distribution plan.

For the private banking sector, bank share prices have fallen sharply and business results have been slow to improve amid persistent bad debt dispositions that make investors frustrated, especially in small banks. And unlisted. Therefore, a favourable point for shareholders this year is the public private banks are planning to list on the floor according to the regulations of the regulator.

Listing on the floor creates liquidity for stocks and helps shareholders who cannot be more patient with bank stocks. However, business results this year are likely to be more positive. A survey by the Department of Statistics, State Bank of Vietnam at the end of the first quarter 2017 shows that 90.4 percent of credit institutions expect profit before tax will increase compared to 2016. VPBank this year set goal of profit before tax of 6,800 billion dong, increasing by nearly 38%. This year, Techcombank targets a pre-tax profit of 520 billion dong, increasing by 26 percent year to year.

More than 1.1 billion USD worth of G-bonds raised in April

04/May/2017 Intellasia| VNA

The Hanoi Stock Exchange (HNX) raised 25.083 trillion VND (1.103 billion USD) worth of government bonds, down 23.9 percent from March during 18 bidding sessions last month.

The five-year bonds offer an annual interest rate of 5.1-5.22 percent while seven-year ones yield 5.43-5.48 percent, up 0.12 percent and 0.05 percent from March, respectively.

The others with 10-year, 15-year, 20-year and 30-year maturity have respective coupon rates of 5.99 percent, 6.74-6.79 percent, 7.1-7.36 percent, 7.63-7.85 percent, marking month-on-month decreases of 0.06 percent, 0.11 percent, 0.35 percent and 0.27 percent.

On the secondary market, the total volume of outright trading topped 640 million bonds, or 67.6 trillion VND (2.97 million USD), down 16.5 percent in value over last month.

The trading volume through repurchase agreements (repos) was more than 883 million bonds, equivalent to 85.9 trillion VND (3.77 billion USD), down 2.6 percent month-on-month.

Foreign investors made outright trading worth in excess of 5 trillion VND (220 million USD) in purchase value and 4.3 trillion VND (189.2 million USD) in sales value. They also made repos selling of upwards 190 billion VND (8.36 million USD) and had no repos purchase during the month.

http://en.vietnamplus.vn/more-than-11 billion-usd-worth-of-gbonds-raised-in-Apr/111148.vnp

VND66 trillion G-bond sale plan set for Q2 04/May/2017 Intellasia| The Saigon Times

A minimum of VND66 trillion is the volume of government bonds to be offered by the State Treasury under the Ministry of Finance this quarter.

Deputy general director Tran Kim Van of the State Treasury on April 25 signed Official Letter 1653 announcing the plan for government bond issuance in the second quarter of 2017 to raise funds for the State budget and for investment and development.

The volume on offer for each maturity is as follow: VND20 trillion for five-year term, VND10 trillion for seven-year, VND8 trillion for 10-year, VND10 trillion for 15-year, VND8 trillion for 20-year and VND10 trillion for 30-year term.

The plan does not include the volume of government bonds issued to Vietnam Social Security. The total government bond release by the Ministry of Finance for 2017 is set at VND183.3 trillion. Government bond auctions have been less lively than last year as the demand for five-year bonds has

weakened. Still, the sales of longer terms remain healthy. The winning interest rate last week fell sharply. In the most recent session on April 26, at the Hanoi Stock Exchange (HNX), the State Treasury called for

total bids of VND6.5 trillion for five maturities: five-year (VND1.5 trillion), seven-year (VND1 trillion), 15-year (VND1.5 trillion), 20-year (VND1 trillion) and 30-year (VND1.5 trillion).

Five-year bonds attracted 10 participants. In the end, VND1 trillion worth of this maturity was sold with a winning interest rate of 5.22 percent per annum, 0.1 point higher than on the previous session (April 19).

Meanwhile, seven-year bonds lured participants and fetched VND810 billion with a winning rate of 5.48%, 0.05 point higher than in the preceding session (April 12).

The terms of 15 years, 20 years and 30 years brought in VND1.5 trillion, VND930 billion and nearly VND1.5 trillion respectively, with coupons of 6.74%, 7.1 percent and 7.63 percent a year.

Since the beginning of 2017, the State Treasury has successfully mobilised around VND81.58 trillion via the HNX, as per the data of this stock exchange.

On the secondary government bond market, liquidity is stable at average level. Credit institutions forecast that with the recent developments of the banking system's liquidity, the government bond market will not produce any positive impacts yet.

As of end-March, the total outstanding value of government bonds, government-guaranteed bonds and local government bonds in circulation had been over VND949.53 trillion, according to the Vietnam Bond Market Association.

In particular, the value of government bonds had reached nearly VND784.3 trillion, accounting for 82.6%, while government-guaranteed bonds and local government bonds had amounted to some VND143.98 trillion and VND21.25 trillion respectively, making up 15.16 percent and 2.24%.

http://english.thesaigontimes.vn/53725/VND66 trillion-G-bond-sale-plan-set-for-Q2.html

Diversified remuneration of banks' big bosses 04/May/2017 Intellasia| Infonet

In the shareholders' meeting season, the salary and remuneration that banks have paid to members of the Board of directors (BOD) and Board of Supervisors (BOS) is also a hot issue.

LienVietPostBank is the most "roisterer" that has submitted to the shareholder meeting in March the remuneration of 40 billion dong for its BOD in 2017. At present, its BOD has only 8 members. Thus, on average, each member will receive 5 billion dong.

While its managers get high remuneration, the shareholders received a dividend of only 10 percent for year 2016, of which 4 percent was cash payment and 6 percent was share payment. This rate, however, was 2 percent higher than the rate approved by the general Meeting of Shareholders in early 2016.

Some banks do not give a fixed figure but a percentage of the profit of the year. Vietcombank is an example. At the Annual general Meeting (AGM) of Shareholders of Vietcombank in 2017, the AGM approved remuneration of BOD and BOS in 2017 at 0.35 percent of profit after tax.

In 2016, Vietcombank also paid remuneration to members of BOD and BOS at this rate. Accordingly, the total remuneration for BOD and BOS in 2016 was 23.979 billion dong. With 7 members of BOD and 4 members of BOS, each member got an average remuneration of 2.17 billion dong.

Meanwhile, at the AGM of BIDV, shareholders voted to approve the remuneration of members of BIDV's Board of directors in 2017 at 0.44 percent of profit after tax. The remuneration is equivalent to 2016. In 2016, BIDV achieved an after-tax profit of over 6,229 billion dong. The remuneration of members of BOD and BOS (13 persons) in 2016 was 27.4 billion dong.

According to the report on remuneration in 2016 and proposed remuneration in 2017 of ABBank, the remuneration budget for BOD and BOS in 2016 was 10 billion dong. In fact, this figure has arisen. Up to 10,455 billion dong has been paid to Board members as remuneration for part-time job.

"Withdrawing experience" from the overpayment in 2016, ABBank has proposed to the AGM the remuneration for members of BOD and BOS in 2017 of up to 15 billion dong. In addition, if the pre-tax profit exceeds the target set by the 2017 AGM, the BOD and BOS will get more 5 percent of the profit margin.

ABBank has 7 members of BOD and 3 members of BOS. If the Bank does not exceed the profit plan, each member will get as much as 1.5 billion dong in 2017.

The most notorious remuneration story is at Eximbank. The annual shareholders' meeting in 2017 has just approved to recover the overpayment of 51.885 billion dong for the BOD for the period 2013-2015. According to Eximbank's regulations, maximum remuneration for members of the Board is equal to 1.5 percent of profit after tax, equivalent to 11.32 billion dong in the period. However, Eximbank had paid to the Board 93.88 billion dong, equivalent to 9.03 percent of total net profit for the period 2013-2015. Thus, the overpaid amount was 82.56 billion dong.

However, the BOD has also asked shareholders to approve a minimum of 14 billion dong for the BOD and BOS for 2013-2015, equivalent to 42 billion dong for 3 years. Accordingly, the total overpaid amount to be recovered from the BOD and BOS is 51.88 billion dong. However, there is a raising question of whether the former managers can pay back the overpayment and what the EIB will do if the overpaid amount could not be recovered.

Eximbank's shareholders say that while the bank has not operated effectively and has not yet had any profit to pay dividends to its shareholders, the remuneration of BOD for each new term equivalent to 1 percent profit before tax is reasonable. However, the general Assembly of Shareholders has approved the total remuneration of the BOD in 2016 including 9 members of 10 billion dong. The remuneration for BOD approved in 2017 is 2 percent of profit before tax but not lower than 12 billion. In addition, the BOD members will receive an operating budget of 5.5 billion dong for 2017, including travel, reception, telephone fees, health insurance and liability insurance.

According to Le Minh Quoc, Chair of Eximbank, the expenses for BOD include different items. The operating cost of Eximbank's BOD in 2016 was 3.8 billion dong. Tran Le Quyet, Head of Supervisory Board, told that in 2016, Eximbank spent only 555 million dong, equivalent to 92 percent of the fund to its BOS.

Non-life insurers set cautious business targets for 2017

04/May/2017 Intellasia| VN Economic Times

The first three months of 2017 saw major losses for non-life insurance companies in Vietnam stemming from a number of serious incidents: a fire at the Truong Hai Auto Corporation (Thaco)'s factory in central Quang Nam province, which caused $11 million in damage, another fire at the Agriculture Printing & Packing JSC's factory in northern Hung Yen province, and the pirate attack on Vinashin's Giang Hai cargo ship off the coast of the Philippines.

In the latest incident, a blaze hit the Kwong Lung Meko garment factory in the Mekong Delta's Can Tho city on March 24, damaging facilities and causing losses of up to $13 million.

The company, fortunately, had taken out insurance coverage of more than $24 million. The incidents have triggered concern among non-life insurance companies about the rising level of

payouts over the last few years. Payouts are at high levels, estimated at 34.6 per cent of revenue in 2016, 43.3 per cent in 2015, 39.4 per

cent in 2014, and 44.3 per cent in 2013. Such figures, together with other negative signs early in the year, may make the non-life insurance

companies involved reconsider their business targets, including profits and dividends, for the year. Cautious targets The non-life insurance sector, though receiving support from new government policies that will create the

factors necessary for developing the market, remains cautious about high growth targets out of a fear of the tough nature of the market.

In talking about business targets for this year, Tran Hoai An, CEO of BIDV Insurance Corporation (BIC), said its goal is 13.7 per cent growth in premium revenue in 2017, against the 13 per cent recorded in 2016.

Post & Telecommunications Insurance (PTI), meanwhile, has set a target for this year of around 10 per cent, in which motor vehicle insurance is to be $87.8 million, or 60 per cent of total premium revenue, with pre-tax profit of $8.4 million and a dividend of 12 per cent.

It also aims to focus on increasing premium revenue in different sales channels where the company possesses advantages, including VNPost, bancassurance, and telesales.

According to Le Van Thanh, CEO of Bao Minh Insurance, non-life insurers should consider their growth targets carefully due to the market's current circumstances. "Bao Minh's growth in 2016 was 10 per cent," he said.

"Traditional products, including motor vehicle, technical, and construction insurance still account for 90 per cent of the company's total premium revenue."

He also revealed the company's goal for 2017 was 12 to 13 per cent growth in premium revenue. 2017 is expected to exhibit a range of factors that will affect business strategies. The Petrolimex Joint Stock Insurance Company (PJICO) has lowered its targets this year, to growth of

5.5 per cent from premium sales of $109 million along with a decline in pre-tax profit by 11.5 per cent. PJICO last year recorded positive business results, including 11.2 per cent growth in total premium

revenue and pre-tax profit of $5.7 million, up 13 per cent. According to some industry insiders, non-life insurance companies being cautious in constructing

business criteria for 2017 and looking at sales channels is completely understandable. One commented that companies, when preparing business strategies, must base them on many elements,

for example growth in the economy and forecasts of possible difficulties.

"This is the proper time for non-life insurance companies to concentrate on continuing their restructuring and enhancing their competitiveness, customer services, and administrative management," he said.

In 2016, revenue from non-life insurance premiums was estimated at $1.6 billion, up 14 per cent against 2015.

In terms of business lines, motor vehicle insurance led, with revenue of $515.7 million and growth of 21.1 per cent, accounting for 32.3 per cent of total premiums.

Health insurance was $415.6 million, up 24.3 per cent, and accounting for 26 per cent, according to figures from the Insurance Association of Vietnam (IAV).

Top 5 companies in non-life insurance market Assets and loss insurance was $237 million, down 9.6 per cent and accounting for 14.9 per cent, fire

insurance reached $145 million, up 14.3 per cent and accounting for 9.1 per cent, and cargo insurance was $97 million, down 4.3 per cent and accounting for 6.1 per cent.

Motor vehicle and health insurance have accounted for the largest parts of non-life insurance because of the highest payout rates.

As a result, this year is forecast to be a tougher year for non-life insurers because of government increases to hospital and pharmaceutical costs.

Last year marked the first time the Bao Viet Group was the leading finance and insurance company in Vietnam, earning revenues of $1 billion.

PVI retained the leading position in insurance, with $297.6 million, up 5.03 per cent for a market share of 18.65 per cent.

The remaining four leaders were Bao Viet, with $278 million, up 8.65 per cent for a market share of 17.41 per cent, Bao Minh, with 133 million, up 7.5 per cent for a market share of 8.3 per cent, PTI, with $132.5 million, up 22.7 per cent for a market share of 8.3 per cent, and PJICO, with $108.2 million, up 10.6 per cent for a market share of 6.8 per cent.

Slow growth Figures from the Insurance Supervisory Authority (ISA) under the Ministry of Finance, show that

insurance premiums totalled around $3.78 billion last year, representing a rise of 22.6 per cent over 2015. Non-life premiums were estimated at around $1.6 billion, up just 14 per cent over 2015 and much lower

than the growth rate in life insurance premiums of 29.8 per cent and in total market growth. Moreover, last year's growth slowed from the 17.2 per cent recorded in 2015. The slowdown is said to have come from negative growth in assets and loss insurance, which was down

9.6 per cent against 2015. This is the fourth consecutive year the business line has fallen since 2013, when it was down 11 per cent,

then 7.9 per cent in 2014 and 3.9 per cent in 2015. The decline also comes from shutdowns at a number of large factories, which led to less demand for non-

life insurance. Assets and loss insurance should have significant potential but only accounted for 14.9 per cent of

premium revenue last year. Cargo insurance also saw negative growth in 2015 and 2016, with premiums of $97 million last year,

down 4.3 per cent, for a market share of 6.1 per cent. The declines came at a time when import and export turnover have increased. Premiums and payouts, by year Motor vehicle insurance, especially for motor cars, has continually recorded the highest growth and

market share in the non-life insurance market over recent years. Growth was an impressive 32.3 per cent in 2016. The figures raise the question of why Vietnamese people focus on insuring their motor car but no other

assets. Some insurance companies have been pioneering apartment insurance for more than five years, including

BIC, Bao Minh, PTI, and a number of foreign insurers, after recognising the demand and potential of the segment.

The product is yet to become widely popular, however, due to high premiums and conditions, so has been unable to attract a large number of customers, according to BIC.

Competition in Vietnam's non-life insurance sector has been described as happening quietly but fiercely. Maintaining their position in the marketplace has been a goal for survival by almost all non-life insurance

companies, through broader sales channels and taking advantage of lesser rivals.

According to PJICO, the non-life insurance market this year still faces a host of challenges from the fierce competition in acquiring market share along with insurance premiums and the terms and conditions of products launched into the market.

"We will make drastic changes in product and service quality, to bring more added value to our customers," a company representative told VET.

Bao Minh's development targets this year have been focusing on promoting its sales network together with introducing two new types of products that relate to medical health and assets insurance.

PTI, meanwhile, will continue to maintain its stable growth by expanding into products with potential in the market, in combination with diversifying its distribution channels via telesales, online sales, and bancassurance, according to Bui Xuan Thu, CEO of PTI.

According to Phung Ngoc Khanh, director of the ISA, Vietnam's economy is forecast to continue to post high economic growth of around 6.5 per cent this year.

The government also plans to focus resources on boosting the services sector, including the insurance market.

"There is much room for growth in the insurance market, such as in agriculture," he said. At the same time, demand for insurance products continues to rise amid the country's rapid international integration, coupled with improved awareness about the role of insurance.

Phan Kim Bang, Chair of the IAV, said that insurance companies expect the government's policies to create a framework for the development of new products, such as insurance for public assets and disease.

The framework is expected to be unveiled soon. The insurance market is poised for strong growth, he added, with increases expected at more than 14 per cent for non-life insurance this year.

http://english.vietnamnet.vn/fms/business/177656/non-life-insurers-set-cautious-business-targets-for-2017.html

Sumitomo Mitsui encouraged to invest in Vietnam's infrastructure

04/May/2017 Intellasia| VNA

Deputy prime minister Vuong Dinh Hue has suggested the Sumitomo Mitsui Banking Corporation (SMBC) invest in infrastructure construction in Vietnam while meeting with an executive of the Japanese bank.

Sumitomo Mitsui is currently holding 15 percent of the charter capital of the Vietnam Export-Import Commercial Joint Stock Bank (Eximbank) and used to support Japanese and Vietnamese businesses with capital and financial services.

It has expressed the intention of expanding operations in small- and medium-sized enterprises development and infrastructure building in the country.

At the meeting in Hanoi on May 3, deputy PM Hue applauded Sumitomo Mitsui's investment and business partnership in Vietnam.

He said about 700km of a north-south expressway is set to be built in the country from now to 2020, and the construction will cost some 200 trillion VND (8.8 billion USD). SMBC and other investors from Vietnam and other countries can make investment in the form of public-private partnership.

Hue also voiced his hope that with its experience in financial management, SMBC will help turn Eximbank into a strong credit organisation and further take part in the equitisation and restructuring of State-owned enterprises in Vietnam.

For his part, SMBC Managing director Ryuji Nishisaki said his firm is interested in the restructuring of credit organisations in Vietnam and will keep working to successfully restructure Eximbank in the near future.

He also highly valued Vietnam's development of the derivatives market and the bond market to diversify capital mobilisation channels.

SMBC is ready to send its affiliates working in securities to enter the derivatives market of Vietnam, he added.

http://en.vietnamplus.vn/sumitomo-mitsui-encouraged-to-invest-in-vietnams-infrastructure/111144.vnp

Vietinbank Q1 profit at $89.7mn 04/May/2017 Intellasia| VN Economic Times

Higher risk provision expenses put dent in bank's after-tax profit in first quarter.

A surge in risk provision expenses of 43 per cent year-on-year resulted in Vietinbank's after-tax profit recording modest growth of just 6 per cent year-on-year to VND2.04 trillion ($89.7 million) in the first quarter, the bank's consolidated financial statement for the period shows.

As at March 31, Vietinbank's total assets stood at VND987.4 trillion ($43.4 billion), up 4 per cent year-on-year. Total customer lending rose 5.4 per cent to VND690.3 trillion ($30.36 billion) and customer deposits 1.7 per cent to VND666.3 trillion ($29.3 billion).

Its bad debt ratio went up from 1.02 per cent as at the end of 2016 to 1.13 per cent as at March 31. Total debts in Group 3, 4 and 5 - substandard debt, doubtful debt and potentially irrecoverable debt - increased VND1.17 trillion ($51.5 million) in the quarter to VND7.92 trillion ($348.3 million).

Net profit from operating activities before credit provision expenses saw strong growth of 20 per cent year-on-year to VND4.61 trillion ($202.7 million). However, due to the 43 per cent year-on-year increase in credit provision expenses, the bank's after-tax profit came in at only VND2.04 trillion ($89.7 million), up 6 per cent year-on-year and equivalent to 29 per cent of the annual plan.

Within the bank's revenue structure, interest income rose 15 per cent year-on-year to VND6.16 trillion ($270.9 million), net profit from foreign currency trading surged 20 per cent, and services and securities trading both increased 36 per cent.

On top of that, net profit from other activities rose 64 per cent year-on-year from VND400 billion ($17.6 million) in the first quarter of 2016 to VND655 billion ($28.8 million) as at March 31. Only securities investment activities saw a loss, of nearly VND18 billion ($791,640), against a profit of VND31.5 billion ($1.4 million) a year ago.

During the bank's annual general meeting (AGM) last month, CEO Le Duc Tho said the bank would improve its super-micro customer and small- and medium-sized enterprise segments this year.

Vietinbank expects to increase its total assets by 14 per cent year-on-year in 2017 to more than VND1,086 trillion ($47.84 billion), raise its pre-tax profit by 3 per cent to VND8.8 trillion ($387 million) and pay a 5-7 per cent dividend.

Vietinbank has not yet completed its acquisition of PG Bank, as the two sides have not finished all necessary procedures to obtain approval from authorities. Chair Nguyen Van Thang told the AGM that all documents relating to the merger of the two banks were submitted to the central bank in 2016.

After reviewing the documents, the central bank asked Vietinbank to review and update the result of an assessment of PG Bank's share price and re-calculate and discuss the conversion ratio between the two banks' shares, Thang said. Vietinbank has engaged auditors Deloitte Vietnam to re-assess the price of PG Bank's shares and re-calculate the ratio for converting PG Bank shares into Vietinbank shares, he said, adding that the two banks are in talks to finalise and submit the results to the central bank.

Under the previous agreement that was approved by the shareholders of the two banks in 2015, the ratio was set at 1:0.9, with each PG Bank share equal to 0.9 Vietinbank shares.

Based on that ratio, Vietinbank would issue an additional 270 million shares in exchange for 300 million PG Bank shares. Another 30 million shares would be issued to Vietinbank's current shareholders.

http://vneconomictimes.com/article/banking-finance/vietinbank-q1-profit-at-89-7mn

BIDV's Q1 profit at $80mn, bad debts at 2.14pct 04/May/2017 Intellasia| VN Economic Times

Consolidated financial report for first quarter reveals host of positive indicators, except for securities investment activities.

BIDV's after-tax profit rose 10 per cent year-on-year to VND1.82 trillion ($80 million) in the first quarter of this year while its bad debts increased slightly to 2.14 per cent, the bank's consolidated financial statement for the period shows.

As at March 31, its total assets were up 2 per cent to VND1,026 trillion ($45.1 billion). Customer lending rose 4.7 per cent to VND747 trillion ($32.85 billion) and deposits 5 per cent to VND762.4 trillion ($33.53 billion).

Net profit from operating activities stood at VND4.6 trillion ($202.3 million), equivalent to 114 per cent of the amount a year ago. Risk provision costs surged 18 per cent year-on-year to VND2.35 trillion ($103.35 million). After-tax profit, therefore, came in at VND1.82 trillion ($80 million), up 10 per cent year-on-year.

Within a 20.7 per cent year-on-year rise in interest income from VND5.64 trillion ($248 million) to VND6.8 trillion ($299 million), foreign currency trading was up 36 per cent to VND122.4 billion ($5.4

million) while securities trading rose 28.4 per cent to VND104 billion ($4.6 million). Income from services, meanwhile, increased 14 per cent year-on-year to VND574 billion ($25.2 million).

Notably, only securities investment activities continued to record losses, of VND67 billion ($2.95 million), a 56 per cent rise compared to VND43 billion ($1.9 million) in the first quarter of last year.

Its bad debt ratio rose from 1.99 per cent as at the end of 2016 to 2.14 per cent at the close of the first quarter. Total debts from Group 3 to Group 5 (sub-standard debts, doubtful debts, and potentially irrecoverable debts) increased by VND1.8 trillion ($79 million) from VND14.4 trillion ($633.3 million) as at December 31 to VND16.25 trillion ($714.7 million) as at March 31.

During the bank's annual general meeting on April 22, it secured shareholders' approval for its plan to pay a 7 per cent cash dividend for 2016, to be paid in the second quarter.

With the State, via the central bank, holding a stake of up to 95.28 per cent in BIDV, the Ministry of Finance is expected to receive more than VND2.2 trillion ($96.8 million) in cash from the dividend payout. Last year, BIDV paid an 8.5 per cent cash dividend to shareholders, with the State receiving VND2.7 trillion ($118.7 million).

According to its plan, BIDV will increase its charter capital from the current VND34.2 trillion ($1.5 billion) to VN38.6 trillion ($1.7 billion) during this year, in three stages.

Last month, prime minister Nguyen Xuan Phuc asked BIDV to continue its pioneering role in supporting business investment abroad, especially in Laos and Cambodia, and becoming a leading commercial bank in the region.

He urged the bank to engage in the reform of credit institutions, whose focus is settling bad debts and banks with poor performance, as the largest joint stock commercial bank in the country.

At the same time, the bank should continue renovating and improving its financial management, operational effectiveness, and competitiveness, thus entering the list of the Top 25 largest commercial banks in Asean.

http://vneconomictimes.com/article/banking-finance/bidv-s-q1-profit-at-80mn-bad-debts-at-2-14

LienVietPostBank signs $50m loan 04/May/2017 Intellasia| VNS

Lien Viet Post Joint Stock Commercial Bank (LienVietPostBank) has signed a $50 million syndicated loan agreement with Taiwanese banks to supplement mid-and-long term foreign resources for local firms.

The loan was led by Taiwanese Cathay United Bank, along with seven lenders, including Hua Nan Commercial Bank, E.Sun Commercial Bank, Chang Hwa Commercial Bank, First Commercial Bank, Taichung Commercial Bank, Sunny Bank and Jih Sun International Bank. The Bank for Foreign Trade of Vietnam (Vietcombank) provided the guarantee for the loan.

The three-year term loan will assist in increasing LienVietPostBank's restructuring of its capital mobilisation, while improving its position in financial markets, both inside and outside the country.

"The loan will help LienVietPostBank to deeply integrate into the international financial market," said Nguyen Anh Van, the bank's deputy general director.

By the end of last year, the bank's total assets reached more than VND141 trillion, its capital mobilisation was VND116 trillion, while its total debt balance was VND83 trillion.

The bank's pre-tax profit last year saw a breakthrough to reach VND1.35 trillion, thus increasing its dividend payment from 8 to 10 per cent.

In the first quarter of the year, its pre-tax profit reached some VND470 billion. http://bizhub.vn/banking/lienvietpostbank-signs-50m-loan_285852.html

NCB looks to foreign investors to double capital 04/May/2017 Intellasia| VN Economic Times

National Citizen Bank met with foreign partners already in bid to raise charter capital. The Hanoi-based National Citizen Bank (NCB), one of the smaller lenders in Vietnam, is looking for

injections of capital from foreign investors to double its registered capital to VND6.01 trillion ($264.7 million) next year, its annual general meeting last month heard.

This year the bank will focus on improving its business model, enhancing its risk management capacity, and expanding its customer and partner ecosystems. It will select foreign strategic investors among its partners that are interested in adding VND3 trillion ($131.9 million) to its charter capital.

The bank's net profit from operating activities is expected to reach VND350 billion ($15.4 million) this year, a 60 per cent increase against 2016, while its bad debt ratio is to be kept at less than 3 per cent. The State Bank of Vietnam (SBV) has approved the bank's plan to open six more transaction points.

Last year, it successfully implemented changes to its core banking system, which is a prerequisite for modernisation. The system has helped the bank improve its ability to offer multiple services, simplifying and closely controlling professionals as well as managing customers' information. It has oriented towards a strategy of becoming a friendly financial consultant that accompanies individual customers and businesses and provides products for each particular customer. It has continued to improve its operational model as well as diversify its loan portfolio and mobilisation to ensure reasonable, stable, safe and effective costs.

Its latest financial report shows that total assets were VND70 trillion ($3.1 billion) as at the end of 2016, for growth of 43 per cent against 2015. Capital mobilisation and lending also recorded high growth, hitting over VND18.5 trillion ($813.26 million) and VND8.9 trillion ($391.24 million), respectively.

2016 revenue totalled VND211 billion ($9.3 million); 91 per cent higher than in 2015. Net profit was VND10.84 billion ($480,000), up 67 per cent. The quality of its balance sheet improved and the ratio of bad debts was less than 3 per cent.

Nguyen Thi Mai, a member of NCB's board and its director of Finance, said the bank had held talks with a number of partners from Japan and South Korea that have expressed interest in becoming strategic investors.

According to independent board member Le Xuan Nghia, the ambitious capital hike plan is feasible and the bank hopes to find suitable strategic partners this year.

NCB has signed a deal with a large US bank, which will advise it on finding strategic shareholders, Nghia said, adding that four or five foreign firms have conducted due diligence.

The Hanoi Stock Exchange-listed NCB, formerly known as Navibank, was once identified as one of the weakest banks in Vietnam and is still in the middle of a restructuring plan.

The Vietnamese government curbs foreign holdings in a local bank at 30 per cent. A foreign strategic investor is allowed to own up to 20 per cent.

http://vneconomictimes.com/article/banking-finance/ncb-looks-to-foreign-investors-to-double-capital

Manulife offers services on Zalo 04/May/2017 Intellasia| VNS

Health insurer Manulife Vietnam said it has become the first company to provide information and services over smart phone application Zalo.

Customers can contact Manulife Vietnam on Zalo for consultancy, answers to queries and information about lifestyle, health, finance, and planning.

They can also buy Manulife products on the app. Paul Nguyen, CEO of Manulife Vietnam, said using high-tech has brought the company closer to

customers and enables it to meet their demands quickly. Last year the company unveiled a series of digital aids to help customers access its their products and

services, including a website at www.baohiemonline.manulife.com.vn and an application named Manu-Ipro.

It also has a payment system available at 1,000 places like supermarkets, convenience stores and apartment buildings.

The 100 per cent foreign-invested company has been in the country since 1999, and has 54 offices in 39 provinces and cities.

http://bizhub.vn/corporate-news/manulife-offers-services-on-zalo_285878.html

Reference exchange rate drops 1 VND 05/May/2017 Intellasia| VNA

The State Bank of Vietnam adjusted the reference VND/USD exchange rate down by 2 VND from the day before to 22,349 VND/USD on May 5.

With the current/- 3 percent VND/USD trading band, the ceiling exchange rate is 23,022 VND per USD and the floor rate is 21,683 VND per USD.

The opening hour rates at commercial banks' rates saw slight fluctuations. Vietcombank listed the buying rate at 22,700 VND/USD and the selling rate at 22,770 VND/USD, down

10 VND.

Techcombank kept its buying rate unchanged at 22.700 VND per USD and cut its selling rate by 5 VND to 22,795 VND per USD

BIDV listed its buying and selling rates at 22,700 VND and 22,770 VND, per USD, down 10 VND. http://en.vietnamplus.vn/reference-exchange-rate-drops-1-vnd/111215.vnp

Interbank interest rates continue to anchor at high level 05/May/2017 Intellasia| Tri Thuc Tre/SSI

In the last week of April, the overnight interest rate on the interbank market fell only seven basis points, to 4.53%/annum while 1-week and 1-month interest rates rose slightly by one point and six points respectively, closing at 4.71%/annum and 4.8%/annum, according to the monetary market report released recently by Saigon Securities Incorporation (SSI).

On the Open Market Operation (OMO), the State Bank of Vietnam (SBV) used 14-day term for the first time since the Traditional Lunar New Year to stabilise liquidity.

For the whole week, SBV poured 31 trillion dong, including 18 trillion dong of 14-day term and 13 trillion dong of 7-day term.

The amount of matured OMO was 38 trillion dong, equal to SBV's net withdrawal of seven trillion dong from the system.

The amount of OMO in circulation at the end of April 2017 was 31 trillion dong, 19.4 trillion dong higher than the same period of 2016.

Also according to SSI's report, in the week, the State Treasury auctioned 5-year, 7-year, 15-year and 20-year tenor bonds with the total value of 7.7 trillion dong.

The 20-year, 30-year terms were still successfully issued with bid winning interest rate to decrease 10 points for 20-year term and five points for 30-year term.

It is worth mentioning that the registration rate for these terms has relatively decreased compared to the previous week.

For 5-year term, the lowest bid rate increased sharply by 10 points to 5.15%, the highest level since January 18, 2017.

The State Treasury must push the bid winning interest rate to 5.22%, seven basis points higher than the lowest bid and 10 points higher than the previous session but only one trillion dong/1.5 trillion dong bonds were issued.

The State Treasury often accepts the winning interest rate to be 2-17 basis points higher than the lowest bid.

After four months, the State Treasury issued a total of 81.3 trillion dong bonds, completing 44.3 percent of the 2017 plan. More than 50 percent of more-than-seven-year terms were issued, while 5-year term alone has only completed 20.3 percent of the whole year target.

Moody's affirms ratings of eight Vietnamese banks

05/May/2017 Intellasia| VIR Moody's Investors Service on May 3 affirmed the long-term and short-term deposit and, where

applicable, issuer and senior debt ratings of eight banks in Vietnam (B1 positive), as well as revised the outlooks for the local currency deposit and local and foreign currency issuer ratings of these institutions to positive from stable.

The baseline credit assessments (BCAs), adjusted BCAs and counterparty risk assessments assigned to the eight banks are unaffected by today's rating actions.

The credit ratings, assessments and outlooks assigned to the other seven Moody's-rated banks in Vietnam are unaffected by the outlook change on the Vietnam sovereign rating. These seven unaffected banks are: (1) HCM City Development JSC Bank (B2 stable), (2) Saigon Hanoi Commercial Joint Stock Bank (B2 stable), (3) Saigon Thuong Tin Commercial Joint-Stock Bank (Sacombank, B3 negative), (4) Tien Phong Commercial Joint Stock Bank (B2 stable), (5) Vietnam Maritime Commercial Joint Stock Bank (B3 positive), (6) Vietnam Prosperity JSC Bank (B3 stable) and (7) Orient Commercial Joint Stock Bank (B2 stable).

Today's rating actions on the eight Vietnamese banks are driven by Moody's affirmation on April 28 of Vietnam's B1 sovereign rating, and the change in the country's rating outlook to positive from stable on the same date.

Vietnam's sovereign credit strength is a key input in Moody's deposit and issuer ratings for Vietnamese banks, because the country's credit strength affects Moody's assessment of the government's capacity to provide support to the banks in times of stress.

Moody's revision of the outlook on Vietnam's B1 sovereign rating to positive from stable signals the government's potentially higher capacity to provide such support to the banks.

The positive outlook on the Vietnamese government rating is based on Moody's expectations that strong foreign direct investment inflows, fostered by ongoing economic reform, will continue to diversify the economy and enhance economic performance when compared to rating peers; macroeconomic and external stability will be maintained; and the resulting strong growth and stable macroeconomic environment will help stabilise government debt around current levels.

The B2 foreign currency deposit ratings of the eight Vietnamese banks were affirmed with stable outlooks, because these ratings are constrained by the B2 foreign currency deposit ceiling for Vietnam.

If the B1 rating on the Vietnamese government is upgraded, Moody's will likely upgrade the long-term ratings of the eight Vietnamese banks stated above, by incorporating additional notches of public support uplift.

The long-term ratings of the eight Vietnamese banks could be downgraded if there is a severe deterioration in their credit fundamentals, and Moody's assesses that government support for the banks has weakened.

http://www.vir.com.vn/moodys-affirms-ratings-of-eight-vietnamese-banks.html

Over 32tr dong capital expected to be poured into banking sector 05/May/2017 Intellasia| Tri Thuc Tre

The 2017 Annual general Meeting (AGM) season of banks has ended with the exception of Sacombank that will hold the AGM at the end of May due to the inability to finalise personnel following the original plan and PVcomBank that has not had any move.

One common point of this year's AGM season is the strong capital raising plan of banks from small to large, from private to public.

Our statistics show that the 14 banks including BIDV, Vietcombank, MB, OCB, NCB, VPBank, Techcombank, ACB, SCB, HDBank, LienVietPostBank, SHB, VIB and Nam A Bank plan to increase chartered capital by total of more than 32 trillion dong.

Of which, Techcombank and VPBank are the most ambitious as both want to increase capital by about five trillion dong, followed by the two state-owned commercial banks i.e. BIDV and Vietcombank with the capital increase target of 4.445 trillion dong and 3.598 trillion dong respectively.

ACB, MB also plan to increase capital by one trillion dong this year. SCB wants to increase its capital by more than 1.7 trillion dong to scale it up to 16 trillion dong. HDBank also plans to increase capital by 567 billion dong while VIB was approved by shareholders to increase capital by more than 2.5 trillion dong.

In the small bank group, NCB plans to raise another three trillion dong charter capital, to six trillion dong. Nam A Bank wishes to increase its capital by nearly two trillion dong to five trillion dong and OCB wants to have an additional of one trillion dong in its chartered capital.

All banks have clear reasons for the capital increase. They are to supplement their financial capacity to build offices, expand branches and invest in information technology system, etc. and especially to ensure the Capital Adequacy Ratio (CAR) following Basel II standard.

The source of money that banks look to increase capital is through the share issuance to make dividend payment, separate issuance or sale of shares to strategic partners at home and abroad.

If the above mentioned capital increase plan of banks was successful, the banking picture at the end of 2017 will have important changes in the ranking of banks in Vietnam. Vietinbank had no plans on capital in this year and if it cannot merge PGBank, the No.1 position will fall in the hands of Vietcombank with more than 39 trillion dong.

In the private joint stock group, Sacombank has not left open any possibility but on the books, the No.1 position of this bank with more than 18.850 trillion dong cannot be surpassed though other joint stock banks increase capital. The farther future is uncertain when MB will have 18.155 trillion dong capital at the end of the year. SCB with the plan to increase capital to 16 trillion dong is expected to continue holding the third position.

As Eximbank, SHB and ACB have rather modest capital increase plan while VPBank and Techcombank plan to inject as much as five trillion dong, they are going to occupy the positions of top five banks having the largest chartered capital in the private banking group along with Sacombank, MB and SCB.

In the group of small banks, the booming of NamA Bank and OCB, if successful, will also drive them out of the "tiny" group to the same group having more than five trillion dong charter capital.

However, all the above mentioned figures are just expectations and no one knows for sure what will happen. In the previous years, many banks used to make "splendid" capital increase plan but finally failed. Therefore, whether the banking picture can change or not still has to wait for eight more months.

Banks report high profits in first quarter

05/May/2017 Intellasia| VNS Many commercial banks posted positive business performances in the first quarter of the year, earning

high profits. Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) recorded post-tax profit of

more than VND2.2 trillion (US$97 million), up 20.1 per cent against the same period last year. The figure made the bank top the list in terms of profits in the first quarter.

Vietnam Bank for Industry and Trade (Vietinbank) made pre-tax profit of VND2.54 trillion ($111.9 million), up 5.8 per cent year-on-year, and post-tax profit of VND2.04 trillion ($89.7 million). This is the strongest growth the bank has recorded since 2011, according to Vietinbank's chair of the management board Nguyen Van Thang.

Bank for Investment and Development of Vietnam (BIDV) earned nearly VND2.3 trillion ($100.1 million) and VND1.85 trillion ($81.3 million) in pre and post-tax profits, respectively, up over 9 per cent year-on-year.

Similarly, Vietnam Technological and Commercial Joint Stock Bank's (Techcombank) total pre- and post-tax profits were VND1.32 trillion ($58.2 million), double the figure of the same period last year, and VND1.06 trillion ($46.6 million), respectively.

Meanwhile, Military Bank (MB) recorded a year-on-year increase of 22 per cent to VND1.06 trillion ($46.4 million) in pre-tax profit, or 25 per cent of the yearly plan. The bank hopes to post over VND4.5 trillion ($199.4 million) in pre-tax profit this year.

Also during the reviewed period, Sai Gon Thuong Tin Commercial Joint Stock Bank (Sacombank) showed impressive performance with pre and post-profits hitting VND309 billion ($13.6 million), and VND210 ($9.24 million), up 50 per cent and 30 per cent, respectively.

Export-Import Bank (Eximbank) recorded a five-time increase to VND170 billion ($7.48 million) in pre-tax profit and VND136 billion ($5.98 million) in post-tax profit.

According to the Department of Statistics and Forecasting under the State Bank of Vietnam, the banking system's average growth is expected to rise by 13.4 per cent, higher than the percentage in 2016.

http://bizhub.vn/banking/banks-report-high-profits-in-first-quarter_285910.html

Shifting nature of bank bad debts 05/May/2017 Intellasia| VN Economic Times Figures from ten Vietnamese banks reveal the cumulative bad debt ratio has increased from 1.87 per cent

at the end of 2016 to 1.9 per cent as at March 31. Total bad debts increased 6 per cent to VND50.7 trillion ($2.23 billion), mainly in the form of Group 1,

standard debt, which was up 13 per cent during the first quarter to VND15.75 trillion ($692.7 million), and Group 2, debt needing special attention, which was up 18 per cent to VND7.94 trillion ($349.2 million).

Notably, Group 5 debt, potentially irrecoverable debt, fell 0.1 per cent during the period but still represents the majority of the total, standing at VND27 trillion ($1.2 billion) as at March 31.

Four out of six banks saw a lower bad debt ratio at the end of the first quarter: Sacombank, Vietnam International Bank (VIB), Vietcombank, and Kienlongbank.

Sacombank's bad debt ratio fell from 5.35 per cent at the end of 2016 to 4.88 per cent as at March 31, but remains the highest of the ten banks.

Its total bad debts reached a record high of VND10.1 trillion ($444.2 million) as at the end of the first quarter. This excludes the VND37.76 trillion ($1.66 billion) in debts sold to the Vietnam Asset Management Company (VAMC), Vietnam's debt bank.

Together, the amount of bad debts at Sacombank reached as much as VND47.84 trillion ($2.1 billion). On the positive side, the bank's potentially irrecoverable debts were down 7 per cent during the first

quarter, standing at VND6.6 trillion ($290.3 million) as at March 31.

Eximbank, meanwhile, saw its bad debt ratio approach the 3 per cent threshold during the quarter, totalling VND2.59 trillion ($114 million) as at the end of March.

Potentially irrecoverable debts amounted to VND1.26 trillion ($55.4 million), up 11 per cent. BIDV, the leading bank in terms of total assets, followed, with bad debts surging from 1.99 per cent as at

the end of 2016 to 2.14 per cent as at March 31. Its total bad debts during the first quarter rose 13 per cent to VND16.25 trillion ($714.7 million). Fourth on the list was VIB, with a bad debt ratio of 1.96 per cent as at March 31, significantly down from

the 2.58 per cent on December 31. Its total bad debts have fallen by the largest amount within the ten banks, standing at VND1.25 trillion

($55 million) as at the end of the first quarter. Potentially irrecoverable debt fell 13 per cent to VND1.17 trillion ($51.5 million). Techcombank's bad debt ratio rose from 1.58 per cent to 1.89 per cent during the first quarter, reaching

VND2.6 trillion ($114.35 million) as at March 31, up 16 per cent quarter-on-quarter. Its potentially irrecoverable debt amounted to VND1.5 trillion ($66 million), up 10 per cent compared to

the end of 2016. Military Bank (MBB) recorded a bad debt ratio as at the end of the first quarter of 1.35 per cent, with

potentially irrecoverable debt rising nearly 40 per cent during the period to VND854 billion ($37.6 million), while debt needing special attention rose by 50 per cent to VND730 billion ($32.1 million) as standard debt fell by half, to VND435 billion ($19.1 million) as at March 31.

Vietinbank, the leading bank in terms of stockholder equity, saw its bad debt ratio rise by 17 per cent to VND7.92 trillion ($348.3 million) as at March 31.

This was mainly due to an increase in standard debt of 70 per cent to VND3.6 trillion ($158.3 million). Potentially irrecoverable debt, meanwhile, fell 9 per cent during the period to VND3.5 trillion ($154 million).

Its first quarter consolidated financial statement did not reveal how much bad debt has been parked at VAMC, but the bank, however, has a plan to buy back its debt from the debt bank this year.

As at the end of March, Vietinbank's bad debt had surged from 1.02 per cent as at December 31 to 1.13 per cent.

At Vietcombank, its bad debt ratio as at the end of the first quarter was lower than at BIDV and Vietinbank, at 1.48 per cent against 1.51 per cent as at December 31.

Total bad debts stood at VND7.4 trillion ($325.4 million), up 6 per cent quarter-on-quarter, in which irrecoverable debt was up 3 per cent to VND4.4 trillion ($193.5 million) and debt needing special attention had increased 40 per cent to VND1.9 trillion ($83.5 million).

Kienlongbank and Bac A Bank are the two banks that kept their bad debt ratios below 1 per cent, standing at 0.96 per cent and 0.82 per cent, respectively, as at March 31.

http://english.vietnamnet.vn/fms/business/177736/shifting-nature-of-bank-bad-debts.html

Right mix for consumer loans to flourish: experts 05/May/2017 Intellasia| VNS Consumer lending has the potential for explosive growth in Vietnam, but this can only happen with

significant improvements in consumer satisfaction with credit institutions and loan conditions, experts say. They say that tapping this growth potential will boost national spending and economic growth. "Within the decade, market demand for unsecured loans has grown to adapt to the current financial scene

in Vietnam, with an increasing amount of retail lenders and personal borrowers," Hoang Van Hai, director of the School of Business Administration (SBA), Vietnam National University of Economics and Business, said at a conference last week.

He said the growth can be attributed to favourable legal and socio-economic conditions that have fostered changes in income and spending habits.

At present, consumer loans in Vietnam range in value from VND1 million to VND60 million ($44.6 to $2680). The application process and repayment schedule are fairly simple, and the rate of interest is reasonable at between1.49 per cent to 1.6 per cent per month, with the occasional zero per cent for smaller loans.

In 2016, consumer credit was mostly used for purchasing household goods and travel expenses, with a focus on mobile devices, vehicles and personal computers under $2000. Sometimes, depending on the borrower's credit history, capital is given directly (instead of paying purchase invoices).

Vietnamese consumers are reaching a spending over earnings ratio of 67 per cent, and this is set to rise further as the economy picks up.

Hai said that Vietnam will soon reach a purchasing market worth about $15 billion per year, with 30 million people in the 20 to 59 age bracket.

This means more and more people in the middle income group are demanding capital to fund their immediate spending, without the hassle going through bank loans for smaller purchases.

Underdeveloped sector However, the central bank sees current retail lending as underdeveloped, given the modest number of

credit institutions giving out consumer loans as also the overall demand for such loans. The central bank estimates that consumer loans account for just five to ten per cent of total lending in the

country, as opposed to the average 40 to 50 per cent in developed nations. Can Van Luc, a senior advisor to the Chair of the Joint Stock Commercial Bank for Investment and

Development of Vietnam (BIDV), said at an online conference in March that Vietnamese credit institutions granting consumer loans have a mere $1.78 billion in capital, about 0.7 per cent of the credit sector's total.

This is due to the fact that these institutions are not allowed to take deposits like commercial banks, having to rely instead on bonds.

The lack of capital, coupled with the reluctance among a majority of consumers to borrow, has lead to interest rates higher than the commercial banks' average of 0.9 to 1.2 per cent per month, said Luc.

However, consumer lending carries rich potential, especially among the population segment that does not qualify for bank loans. This segment can access this capital instead of being beholden to black market loans controlled by loan sharks.

While the central bank is positive about growth in this credit segment, there are still regulatory issues that need to be resolved.

In 2016, the SBV and the Ministry of Industry and Trade, received a large number of complaints from borrowers.

The Vietnam Competition Authority (VCA) released a report last year in which they detailed several major problems faced by consumers buying common household and electronic items.

A chief complaint from borrowers was that cumulative calculation of interest rates made the loan repayment untenable in just three to six months. They also said that the credit institutions did not show "decent conduct" while trying to recover loans.

The VCA advised consumers to have a clear understanding of the loan contracts before signing and reevaluate their own disposable income before taking out a loan, no matter how small.

Meanwhile, the SBV has simplified procedures and increased transparency for consumer loans through Circulars 39 and 43 issued in 2016 and 2017 respectively.

At present, the SBV considers a loan to be a consumer loan if it is made in Vietnamese Dong, the borrower is an individual, not an institution, the purpose of the loan is to meet personal spending needs, and the total amount borrowed does not exceed VND100 million ($4468).

http://bizhub.vn/news/right-mix-for-consumer-loans-to-flourish-experts_285891.html

Central bank reaps dividends of $270mn from three banks 05/May/2017 Intellasia| VN Economic Times The State Bank of Vietnam (SBV) has received significant dividend payments for 2016 from BIDV,

Vietcombank, and VietinBank, totalling VND6.17 trillion ($271.375 million). The SBV is the dominant shareholder in the three banks and also Agribank, and as such is responsible for

their operations. With solid credit growth last year, the three banks provided large dividends to the State coffers.

Vietcombank recorded profit growth of 25 per cent and VietinBank 17 per cent. BIDV's profit, meanwhile, fell more than 2.5 per cent. Agribank is yet to release its financial statement for 2016.

The three banks held their annual general meetings at the end of April, where dividend plans were approved. Under the direction of the Ministry of Finance, the three banks will pay a cash dividend of 7 or 8 per cent.

With a shareholding of 95.28 per cent in BIDV, the bank provided the SBV with the highest dividend, of VND2.28 trillion ($100.228 million), despite its dividend being 7 per cent and it recording falling profits last year.

Vietcombank followed, with a dividend of 8 per cent totalling VND2.219 trillion ($97.596 million). VietinBank's dividend rate was 7 per cent, with the SBV to receive some VND1.680 trillion ($73.889 million).

The VND6.179 trillion ($271.764 million) the SBV will receive is down by VND324 billion (14.249 million), or 5 per cent, compared to the dividend payment for 2015.

BIDV's falling profits is the main reason for the decline, and its dividend also fell from 8.5 per cent to 7 per cent. Its merger with the Mekong Delta Housing Development Bank (MHB) and its ongoing restructuring greatly affected its performance last year.

The State is planning to divest from businesses and credit institutions. It is expected to cut its stake in BIDV from 95.28 per cent to 65 per cent and to equitise and reduce its ownership in Agribank by 65 per cent during 2016-2020.

These banks are free to seek and select strategic partners, especially foreign partners. http://english.vietnamnet.vn/fms/business/177738/central-bank-reaps-dividends-of--270mn-from-three-

banks.html

M & A of financial companies flourishing 05/May/2017 Intellasia| DTCK

Consumer loan, which is considered as a fertile land, is continuing to attract many banks to explore, through the establishment or acquisition of finance companies.

The Orient Joint Stock Commercial Bank (OCB) said this year, the bank plans to set up a new finance company. This company will operate as a wholly owned subsidiary with the initial charter capital of 500 billion dong (equal to the legal capital of a finance company), conduct consumer credit operations, finance lease and factoring.

In case not, OCB will seek an M&A opportunity with a finance company with the target of owning at least 70 percent of this company's chartered capital. That is also one of the reasons for OCB to raise its chartered capital to five trillion dong this year. Currently, OCB is gradually stepping up retail operations.

ACB also said it is promoting the acquisition or establishment of a finance company, transforming the operation model of ACB Leasing Company into a consumer finance company. At the end of 2016, there was a rumour that ACB "eyed" PTFinance Co. Ltd

ACB's 2016 management report said the bank's management board had a meeting about the plan to acquire this finance company on August 4, 2016. PTFinance is one of Vietnam's first finance companies which was established in October 1998. The company's charter capital was 500 billion dong, fully owned by Vietnam Post and Telecommunication Group (VNPT).

In several recent years, M&A deals between banks and finance companies have continuously been carried out. Most recently, SHB completed the M&A with Vinaconex-Viettel (VFF) after two years pursuing this deal.

After being approved by the State Bank to merge VVF into SHB, the bank announced to establish SHB Consumer Finance Company with the charter capital of one trillion dong. At the same time, SHB disclosed the cooperation with some foreign partners in the near future including the capital contribution.

With the development potential of the consumer finance market, the race to acquire finance companies of banks seems to have not stopped.

Apart from HDBank, VPBank and Techcombank such banks as SHB, MaritimeBank have completed their plans to acquire finance companies. Earlier, many other banks made acquisitions of finance companies and their business performance increased significantly afterwards.

With the acquisition of finance companies, banks may participate in unsecured lending. Despite high risks, the return is much higher than normal lending.

Vietnam consumer finance market has experienced strong growth in three recent years, especially when there is the participation of consumer finance companies and commercial banks' acquisition of finance companies which have gradually stepped up individual capital for consumer loans, home repair, and land and home purchase.

The booming of this kind of credit in the near future is very huge with three main factors showing the market potential including: first, Vietnam ranks 14th among the world's most populous countries with the population scale of about 90 million people; the proportion of young population is rather high so the population entering the working age increases very fast each year; Vietnam is a developing country with a dynamic economy and the people's income grows every year, which is reflected in the world's fastest growing GDP.

Consumer lending still has much room to develop because currently, it only accounts for about 6.5 percent of the total outstanding loan of the economy (compared to about 15-25 percent in other countries).

The development of consumer finance segment has contributed significant revenue and profits to commercial banks. VPBank's 2016 business results show that, FE Credit Finance Company made a great contribution to this bank's consolidated profit at nearly two trillion dong. Or HD Saigon contributed about 300 billion dong to HDBank's total consolidated profit in 2016.

The attractiveness of consumer finance market is drawing foreign investors. Japan investors acquired 49 percent stake of HD Saigon. Meanwhile, VPBank's FE Credit is in negotiating with foreign partner to sell 49 percent stake of finance company directly under this company.

Vietnam's life insurance market faces challenges

05/May/2017 Intellasia| VN Economic Times Twenty-four-year-old Trinh Van Anh, the manager of an international school in Hanoi, does not have a

life insurance policy and hasn't thought about getting one, even though her monthly salary of $1,000 is higher than most of her peers.

"No one recommends I take out a policy," she said. "No one knows what life insurance covers, what it gives the policyholder, or what the benefits are."

Like Anh, many other Vietnamese people remain confused about what life insurance can actually bring. Even though premiums in Vietnam are on track for yet another record year, the gains are coming from a

very low base and foreign insurers have yet to truly crack the market despite dominating. It should take only a few more years, though, for them to make more substantial headway. Foreign insurers' playground 2016 continued to see robust growth in Vietnam's insurance market, with the life insurance segment

reaching a ten-year high. Insurance premiums totalled around VND86.6 trillion ($3.8 billion), representing an increase of 22.74 per

cent against 2015. Total revenue in life insurance was over VND49.2 trillion ($2.2 billion), an increase of 30.5 per cent,

while revenue in non-life insurance was VND36.4 trillion ($1.6 billion), up nearly 12.5 per cent, according to data from the Insurance Supervisory Authority (ISA) under the Ministry of Finance (MoF).

Eighteen life insurers are competing fiercely in the market. Eight of the 18 increased their charter capital in 2016 to improve financial capacity during expansion and business development.

Manulife Vietnam, for example, raised its charter capital to VND1.82 trillion ($80 million), while Chubb Life Vietnam increased its by VND150 billion ($6.5 million) to more than VND1.55 trillion ($69.5 million).

According to an assessment from Vietnam Report, among the five largest life insurers, which hold 86 per cent of the market share, are four foreign companies and only one domestic company, Bao Viet Life, which has a foreign strategic shareholder, Sumitomo Life from Japan.

Prudential Vietnam leads the life insurance market with a share of 29.9 per cent, followed by Bao Viet Life with 25.7 per cent, Manulife 12.1 per cent, AIA Vietnam 9.2 per cent, Dai-ichi Vietnam 9.1 per cent, Chubb Life Vietnam 4.4 per cent, and PVI Sun Life 2.3 per cent.

The remainder share 7 per cent. The five largest life insurers are believed to have posted premium revenue of VND5.8 trillion ($254.7 million) in the opening two months of this year, an increase of 30 per cent year-on-year and accounting for 80 per cent of all revenue, according to the ISA.

Due to market regulations, it is impossible to compete in Vietnam's life insurance market solely by premiums.

All products are subject to close scrutiny from the MoF before being launched and premium levels are set.

There is no way to cut premiums to attract buyers, and players must instead compete in service quality or the provision of value-added packages.

All life insurers have headquarters in Hanoi in the north and HCM City in the south, with most also having branches and representative offices in major cities and provinces.

Dai-ichi has 53 branches and representative offices, Manulife Vietnam 22, Prudential Vietnam 21, and AIA 14.

Bao Viet Life remains the only player to cover all 63 cities and provinces in the country. Most companies over the last ten to 15 years started with agencies and this represents about 90 to 95 per cent of the industry

in Vietnam today, with ISA's figures showing there are currently some 1,000 representative offices and general insurance agencies of life insurers nationwide.

Besides traditional sales methods, life insurers have also started partnering with commercial banks to increase sales and promote products.

The sluggishness in the bancassurance market in Vietnam over the last few years can be attributed to a lack of service and low awareness among customers about the benefits of bancassurance products, with it only contributing 2 per cent to total turnover.

Still, analysts believe that the channel holds great potential, with some 35 commercial banks and financial institutions now cooperating with insurers.

Impediments remain "The penetration rate of life insurance, usually measured as the number of individuals who actually own

life insurance, is still low in Vietnam relative to other Southeast Asian countries," Steve Clark, Country Head of Prudential Vietnam, told VET.

Average insurance premiums stand at only $30 in Vietnam, much lower than the global average of $595 and $74 in Southeast Asia.

Only 7 per cent of Vietnam's 90+ million people have life insurance and the sector contributes a modest 2 per cent to GDP, compared with more than 2.6 per cent in Indonesia and 11-14 per cent in South Korea and Singapore.

The obstacles are many. According to Phung Quoc Khanh, director of the ISA, awareness among Vietnamese people about life insurance may have increased but most still don't think it's worth it.

Almost all Vietnamese people are wary or believe it unnecessary to buy insurance because they don't have a thorough understanding of its importance.

Life insurance products usually involve a long contract term, so many customers are concerned about their ongoing financial capacity.

At the same time, doubts about foreign life insurers' commitment to permanent operations in Vietnam add to the low penetration rate.

Many potential Vietnamese consumers still see insurance as an investment rather than a device to share financial losses caused by poor fortune.

They prefer bank savings or investing in gold or real estate, where they earn a higher rate of return, than buying insurance.

The low penetration rate also comes from the fact that life insurers have only focused their operations in big cities while overlooking the 70 per cent of the population that still live in rural areas.

They are also still separating themselves from the general activities of the sector, missing out on promotional opportunities and not playing a role in trying to increase awareness.

"Life insurers have only focused on building their brand and image and not on activities to promote basic insurance knowledge," Khanh said.

While life insurers focus on implementing their own strategies to gain more market share and sign up more customers, their ambitious plans may fail due to problems relating to human resources.

The rising number of insurance companies in recent years along with a lack of quality insurance training has created a serious shortage of skilled human resources for the sector.

This has led to unfair competition in attracting experienced employees and insurance agents, one insider said.

While acknowledging the increasing number of life insurance products, Khanh believes that these are mainly for high-income earners.

Lower premiums to mid and low-income earners are yet to be introduced, even though they are the majority of the population and are vulnerable to financial incidents.

Potential enormous The penetration rate may well change soon, however. An emerging middle class with more money to spend and a desire to spend that money to improve their

lifestyles are driving a lot of activity in Vietnam. The young middle class and rising wages all round are creating demand for consumer products, credit,

and investment. Soon enough, they will turn to life insurance products, with health now being one of the leading concerns

among Vietnamese people, according to a February report released by global market researchers Nielsen. According to the ISA, life insurers have mainly focused on three of the seven life insurance products in

Vietnam: term life insurance, endowment insurance, and universal life insurance.

This again presents opportunities for others in unit linked and pension insurance products, which can meet the differing requirements of customers.

With Vietnam's stock market now being increasingly stable, the possibility exists for the creation of hybrid products, using an asset-based approach to funding long-term care.

With Vietnam now participating in a host of free trade agreements (FTAs) and bilateral agreements, demand for life insurance is set to be boosted by the growing number of expats in the country.

The arrival of foreign firms seeking to take advantage of preferential policies is also expected to boost demand for goods and services related to property, social security, and health coverage, among others, generating knock-on opportunities for insurers.

A strengthened economy and new innovations from continued FDI should also impact positively on household confidence and future demand for insurance products, according to Phung Dac Loc, former Secretary general of Vietnam Insurance Association (AVI).

In a move to facilitate the growth of the insurance sector in general and life insurance in particular, Decree No.73 came into force on July 1, 2016, prescribing new regulations on the licensing, organisation, and operations of financial institutions, with specific regulations on investment portfolios and ratio and reserves.

This requires that life insurers consider investment strategies to ensure customer benefits together with risk management and liquidation, which hint at greater competitiveness.

Key regional players already eye Vietnam as a potential avenue for growth. The Hong Kong-based FWD Group, for example, which has operations in Macau, Thailand, Indonesia

and the Philippines, broke into Vietnam in November last year. South Korea's Samsung has also expressed an interest in expanding its footprint in the life segment. Last

September, general director of Samsung Vietnam Han Myoung Sup told the Ministry of Information and Communications that two local units, Samsung Life Insurance and Samsung Fire and Marine Insurance, were currently exploring investment plans.

Wilfred Blackburn, CEO of Prudential Vietnam, believes that Vietnam's life insurance market is far from saturated. In fact, he believes there is still time for new companies to enter the country.

"The life insurance market wants new players that are able to grow and bring a fresh approach to the industry," he said.

"This also requires that current players be more dynamic and innovative to expand the scope of the market."

http://english.vietnamnet.vn/fms/business/177658/vietnam-s-life-insurance-market-faces-challenges.html

Senior official keen on SMBC support in Eximbank restructuring 05/May/2017 Intellasia| VN Economic Times Deputy PM Vuong Dinh Hue hopes Sumitomo Mitsui Banking Corporation will play a major role in

bank's restructuring and possibly infrastructure investments in the country. Deputy prime minister Vuong Dinh Hue has expressed a hope that Japanese lender the Sumitomo Mitsui

Banking Corporation (SMBC) will participate in Eximbank's restructuring process and the equitisation and restructuring of State-owned enterprises.

During a May 3 meeting with Ryuji Nishisaki, SMBC's Head of Emerging Markets Business Division, the deputy PM urged the Japanese lender to help with the restructuring and development of Eximbank in the future.

Nishisaki said that SMBC, which currently holds 15 per cent of Eximbank, pays great attention to the restructuring process of Vietnam's credit institutions and will focus on the restructuring of the HCM City-headquartered bank.

He also expressed his appreciation of government efforts in developing a derivatives market and using the bond market as an effective capital mobilisation channel, which helps to diversify the economy. SMBC stands ready to bring its subsidiaries in the securities field to Vietnam's derivatives market, he added.

Deputy PM Hue also suggested that SMBC participate in the development of infrastructure in Vietnam. From now to 2020, Vietnam is seeking capital to build the 700-km North-South Expressway, which is expected to cost more than $10 billion. SMBC and other foreign and domestic investors could invest in the project via a public-private partnership (PPP), the deputy PM believes.

For his part, Nishisaki hopes to expand SBMC's operations in Vietnam by helping small and medium-sized enterprises develop and to also participate in infrastructure development in the country. SMBC now provides financial support for Vietnamese and Japanese enterprises.

At Eximbank's annual general meeting on April 20, SMBC nominated Yutaka Moriwaki, who became deputy CEO of Eximbank last October, as its board member for the 2015-2020 term. On April 21, the move secured approval from the State Bank of Vietnam.

At a press conference held ahead of the AGM, Moriwaki touched on unresolved issues faced by the bank, such as the absence of a sound business strategy and the low staff morale caused by frequent leadership changes.

He and deputy CEO Nguyen Quoc Huong are in charge of the "New Eximbank" plan, which is believed to bring significant changes to its business operations.

Moriwaki said that Eximbank will focus on its core operations, such as lending to exporters, importers, retailers, and automobile buyers, and is confident that SMBC can help it connect with Japanese businesses in Vietnam and provide financial support and trade finance.

Eximbank's profit has been sliding since 2012. In 2011, after-tax profit was about VND3 trillion ($132 million) then plunged to VND2 trillion ($88 million) in 2012 and a mere VND308 billion ($13.5 million) last year.

http://vneconomictimes.com/article/vietnam-today/senior-official-keen-on-smbc-support-in-eximbank-restructuring

Corporate

Vietnam trails behind Burma in investment attractiveness 03/May/2017 Intellasia| The Saigon Times

Vietnam ranks second in Southeast Asia behind Myanmar in terms of attractiveness to foreign investors, shows a just-released survey.

A report on private investment by Grant Thornton Vietnam revealed that 72 percent of respondents agreed that Vietnam is attractive to investors. However, the percentage of respondents evaluating the business environment as "highly attractive" has tumbled to 2 percent, a reduction of seven points against last year.

Myanmar took the lead due to the rapid economic growth rate, infrastructure and new investment law favouring foreign investors. Meanwhile, Vietnam holds the advantages of human resources, low labour costs and a fast-expanding middle class.

However, investors in Vietnam struggle with problems like corruption, bribery, political interference and inconsistent interpretation of laws and regulations. Besides, inadequate infrastructure coupled with bureaucracy and administrative procedures have discouraged investors in the country.

The report also showed that food and beverage and retail are the most attractive sectors to foreign investors.

The lower-than-expected pace of State-owned enterprise restructuring is another obstacle. In 2016, only 55 State-owned enterprises were equitised successfully, compared to 220 enterprises that went public in 2015.

Experts and foreign investors see the equitisation of State-owned enterprises creating lucrative investment opportunities.

http://english.thesaigontimes.vn/53702/Vietnam-trails-behind-Myanmar-in-investment-attractiveness.html

Loss-making SoEs could go bankrupt

03/May/2017 Intellasia| VNS

Loss-making enterprises that are not eligible for privatisation must strictly carry out restructure, merger or bankruptcy.

Minister of Industry and Trade Tran Tuan Anh has promulgated Directive No. 05/CT-BCT on rearrangement and renewal of State-owned enterprises in the 2017-20 period.

Accordingly, the ministry asked its SOEs, corporations, one member limited companies and representative units of State capital to prepare plans and a roadmap for firms' rearrangement and divestment during the period, which must be submitted to the ministry for approval in May.

In particular, four State groups Vietnam National Oil and Gas Group (PetroVietnam), National Coal and Mineral Industry Group (Vinacomin), Vietnam Chemical Group (Vinachem) and Electricity of Vietnam (EVN) are required to submit their restructure plans.

In addition, the groups were asked to carry out privatisation at their member units following approved process and plans as well as current laws and regulations.

The directive also asked the groups to enhance management, supervision and checks to prevent huge loss of State capital and assets in their rearrangement, privatisation and divestment.

"The State-owned enterprises should clarify responsibilities of relevant organisations and individuals in the process of privatisation and divestment. The representatives of State capital at the companies must strictly carry out the rearrangement," it said.

The ministry will also review criteria to classify State-owned firms under Decision 58/2016/QD-TTg, promulgated by the prime minister to build specific plans and a roadmap for the sale of State capital in the 2017-20 period.

In addition, the ministry has been advised to transfer State capital at its businesses to the State Capital Investment Corporation and carry out asset evaluation.

https://m.vietnambreakingnews.com/2017/05/loss-making-soes-could-go-bankrupt/

Loss-making SoEs could go bankrupt 03/May/2017 Intellasia| VNS

Loss-making enterprises that are not eligible for privatisation must strictly carry out restructure, merger or bankruptcy.

Minister of Industry and Trade Tran Tuan Anh has promulgated Directive No. 05/CT-BCT on rearrangement and renewal of State-owned enterprises in the 2017-20 period.

Accordingly, the ministry asked its SOEs, corporations, one member limited companies and representative units of State capital to prepare plans and a roadmap for firms' rearrangement and divestment during the period, which must be submitted to the ministry for approval in May.

In particular, four State groups Vietnam National Oil and Gas Group (PetroVietnam), National Coal and Mineral Industry Group (Vinacomin), Vietnam Chemical Group (Vinachem) and Electricity of Vietnam (EVN) are required to submit their restructure plans.

In addition, the groups were asked to carry out privatisation at their member units following approved process and plans as well as current laws and regulations.

The directive also asked the groups to enhance management, supervision and checks to prevent huge loss of State capital and assets in their rearrangement, privatisation and divestment.

"The State-owned enterprises should clarify responsibilities of relevant organisations and individuals in the process of privatisation and divestment. The representatives of State capital at the companies must strictly carry out the rearrangement," it said.

The ministry will also review criteria to classify State-owned firms under Decision 58/2016/QD-TTg, promulgated by the prime minister to build specific plans and a roadmap for the sale of State capital in the 2017-20 period.

In addition, the ministry has been advised to transfer State capital at its businesses to the State Capital Investment Corporation and carry out asset evaluation.

https://m.vietnambreakingnews.com/2017/05/loss-making-soes-could-go-bankrupt/

Start-up businesses to get funding from VCIC 03/May/2017 Intellasia| VNS

Start-up businesses that focus on green growth will have the opportunity to receive funding and access to comprehensive business development support services from the Vietnam Climate Innovation Centre (VCIC).

The announcement was made by Pham Duc Nghiem, VCIC's deputy director at the launch of a contest named "Proof of Concept", sponsored by the World Bank and Ministry of Science and Technology, held in Hanoi on Friday.

Specifically, start-ups would receive funds amounting to $75,000 for the development, deployment or extension of a product or service, he said.

In addition, sponsored businesses will also receive VCIC's counselling from the initial stage to the market development phase.

Innovative products, services, or business models can be included in VCIC's second contest in the following categories: effective energy, sustainable agriculture, water management and purification, renewable energy technologies, technology information and other technologies related to climate change.

"This is an opportunity for start-up projects to reduce the impact of climate change on the environment, as well as an opportunity to showcase the potential of Vietnamese companies in the field of technology to cope with climate change," Nghiem said.

"These companies are in the best position to provide innovative solutions to fight climate change, because they know better than anyone else about the difficulties, challenges and potential of the locality. It will help them come up with good ideas to improve the local economy and create more jobs," he added.

Climate change is increasingly attracting the interest of the international community. As one of the five countries most vulnerable to climate change, the Vietnamese government has been

implementing a number of policy and action programmes to strengthen national capacities to adapt and respond effectively to climate change and reduce greenhouse gas emission.

The Ministry of Science and Technology expects that VCIC will create the foundation to help businesses identify business models and commercialise their products to cope with climate change.

VCIC will also organise seminars to call for ideas in Hanoi, Da Nang and HCM City to provide more information for businesses who want to join the contest, Nghiem said.

At least 18 enterprises received funding from VCIC in the first contest in 2016. Their projects included a car sharing solution to save costs and help passengers access transportation

services, an automatic unbaked brick molding chain and bio-produce for agriculture. http://bizhub.vn/news/start-up-businesses-to-get-funding-from-vcic_285842.html

OV scholar suggests shifting to overseas venture investment 03/May/2017 Intellasia| VNA

A Vietnamese scholar in the Netherlands suggested Vietnam shift to venture investment abroad rather than relying on developing the intellectual-based economy at home during a seminar recently held in Geneva, Switzerland.

According to Dr Hoang Ngoc Giang, lecturer at Utrecht University of the Netherlands and former independent advisor to several venture investment funds in Switzerland, the Vietnamese economy is focusing on attracting foreign capital to facilitate technology transfer and send experts abroad for studies, and has recently embarked on a plan to develop itself into a start-up nation.

However, he described this approach as unfeasible, reasoning that four major pillars of Vietnam's intellectual-based economy, including education-training, innovation eco-system, information infrastructure, economic climate and social institutions, remain insufficient and weak.

In his suggestion, the top priority should be given to technology because it is the greatest source of added value in the future. In spite of requiring long-term capital (5-10 years) and exposing weak liquidity and high risks, it will bridge development gap and bring strategic interests to Vietnam regarding governance skills and competiveness learnt from the most developed economies.

He proposed that direct outbound investment could be made by sending the most excellent intellectuals abroad to nurture and commercialise inventions, providing aid for successful start-ups to join relevant overseas competitions, and pouring capital into start-up ideas by Vietnamese students and workers in host countries.

Indirect investment could be made by contributing capital to overseas venture investment funds and start-ups, he said.

In order to utilise linkage between overseas venture investment and domestic manufacturing, he called attention to drafting a detailed plan on venture investment abroad, arranging human resources and capital to build a start-up ecosystem, establishing a Vietnam venture investment fund abroad, prioritising agricultural and processing technology projects, and screening relevant start-ups.

http://en.vietnamplus.vn/ov-scholar-suggests-shifting-to-overseas-venture-investment/111081.vnp

SMEs' responsibility for environment management highlighted 03/May/2017 Intellasia| VNA

A workshop on pollution control and corporate social responsibility of Vietnam's small- and medium-sized enterprises (SMEs) took place in Hanoi on April 28.

The event was co-held by the Research Institute for SMEs (RISME) to discuss challenges and opportunities of the country's SMEs in complying with environment protection laws and map out policy- and technology-related measures to help them improve capacity of pollution control and environment protection.

Addressing the workshop, Pham The Hung from the RISME said the SMEs today are demanding more access to environment management information and training courses on environment management to learn about legal environment requirements.

Aside from training courses, associations and research institutes should design other kinds of support for the enterprises in the field, he said.

Hung cited the fact that the enterprises have struggled to ensure the environmental laws are enforced due to a lack of knowledge on the laws and human resources capable of environment management in line with limited funding and outdated technology.

Furthermore, little support from the government and unstable legal regulations in the matter have posed difficulties for the enterprises to act within the law, putting them at risk of being fined or suspended for breach of environment regulations, he added.

Meanwhile, director of the Centre for Environment and Community Research (CECR) pointed out that many firms have not paid enough attention or neglect training courses on pollution control technology and solutions, even though most of which were free. They appeared to prefer those on taxation and customs procedures.

Surveys indicates that big brands or foreign-invested firms, like Vinamilk, Dow and Pepsico, have complied with the laws better and put many efforts in energy saving, waste recycling and wastewater treatment.

The training courses on corporate social responsibility and legal environment management need to provide the SMEs with clear benefits, for example, environment-related benefits that help them enhance power and performance efficiency, save cost and bring better opportunities.

http://en.vietnamplus.vn/smes-responsibility-for-environment-management-highlighted/110977.vnp

Strengthening national trademark 03/May/2017 Intellasia| VOV5

The National Trademark Programme, which focuses on quality, renovation, creativity, and leading capability, intends to promote national images through product brand names.

In global integration, developing a national trademark in the domestic and foreign markets is decisive in competing with foreign products.

The national Trademark Programme has carried out activities to promote trademarks and help enterprises improve business management, enhance marketing, and competitiveness.

International integration and participation in free trade agreements have opened new opportunities for Vietnam's economy.

President Tran Dai Quang told enterprises who won the National Trademarks recognition for 2016: "In order to improve competitiveness in international integration, it's necessary to develop a national trademark.

It requires efforts of the business community to obtain production goals and improve product quality so we can win both the domestic and overseas markets."

Vietnamese enterprises have actively engaged in building their brand names, contributing to promoting Vietnam's trademark. Vu Van Thanh, deputy director of Hoa Sen Group said, "The National Trademark Programme has generated conditions for enterprises to improve their trademarks. Obtaining the national trademark recognition helps us promote our products in the domestic and overseas markets."

In the international market, Vinamilk ranks 20th in the top 300 most dynamic companies in Asia. Trung Nguyen Coffee has over 1,000 facilities in Vietnam and other countries. They have brought Vietnamese products closer to consumers worldwide.

http://english.vov.vn/economy/strengthening-national-trademark-348607.vov

Vietnamese firms urge further cuts to customs red tape 03/May/2017 Intellasia| Vnexpress

'It's not just customs procedures; unofficial fees to complete administrative procedures quickly and conveniently are rife across all sectors.'

Vietnamese companies still have to pay unofficial fees to get through customs procedures, and many are calling for the procedures to be simplified, the Vietnam Chamber of Commerce and Industry (VCCI) said recently.

Customs has made significant reforms to facilitate import-export activities over the past years and is at the forefront of applying information technology to administrative procedures, said Hoang Quang Phong, vice president of VCCI.

A VCCI survey on customs procedures found that 31 percent of businesses had to pay under-the-table payments to clear customs procedures, up from 28 percent in 2016, while nearly a third of respondents said they were treated unfairly if they refused to pay the fee.

The survey, the fourth conducted so far by the VCCI in cooperation with the general Department of Customs, sent questionnaires to 3,500 import-export enterprises nationwide, and more than 1,000 responded.

"It's not just customs procedures; unofficial fees to complete administrative procedures quickly and conveniently are rife across all sectors," said Dau Anh Tuan, head of the VCCI's legal department.

A representative of a business association in Hai Phong City called for amendments to customs policies to be better communicated to businesses that are struggling to keep up with the changes.

As many as 93 percent of firms viewed changes to customs policies and regulations as positive over the past five years, and nearly all respondents expressed satisfaction, saying they could easily find the information they needed on the customs website, according to the report.

However, most firms also said specialised checks were complicated and sometimes overlapping, while eight in 10 firms said the waiting time was too long and put a burden on their firms.

In response, Kim Long Bien, a senior manager at the general Department of Customs, said the customs agency is on track to reducing clearance times and the number of specialised inspections. It is also simplifying administrative procedures while digitising import-export procedures, customs clearance and tax payments for businesses.

"We will take concrete action to make changes happen," Bien said, adding that Vietnam aims to break into the top four countries in Southeast Asia when it comes to customs services.

http://english.vov.vn/economy/vietnamese-firms-urge-further-cuts-to-customs-red-tape-348721.vov

Footwear manufacturers plan comeback to conquer home market 03/May/2017 Intellasia| Vietnamnet

Though only around 10 Vietnamese footwear brands exist in the home market and each holds a modest 2 percent of market share, the products have begun conquering the local consumer market.

With mid-range prices, and a design centre and workshop in Brazil, Vascara has great advantages in the Vietnamese market.

As the brand has become better known to youth in Vietnam, Vascara has opened over 80 shops in large cities and provinces.

More and more 100 percent Vietnamese brands have appeared in the market recently. However, the investors prove to be wise enough to give 'western' names to their brands, such as Dolly, Juno, Sablanca, Bejo, Mirrabella, Hodono and Evashoes, to avoid repeating the mistakes made by predecessors such as Hanh Dung, Hong Thanh and Dong Hai.

The common characteristic of Vietnamese brands is that they target ordinary people with mid-range prices and avoid the high-end market, where small and medium enterprises don't have advantages.

A branding expert commented that Vietnamese brands won't have many opportunities to succeed in the high-end market, because consumers won't pay high prices for Vietnamese brands. High income earners spend big money to show off their class, and Vietnamese brands don't help them do this.

Vietnamese brands have attracted consumers in the mid-end market segment thanks to high quality and reasonable prices. Domestic manufacturers have high skills as they have been doing outsourcing for foreign brands for many years.

However, since most Vietnamese brands target the mid-end market segment, the competition among them is stiff, especially when foreign brands target the market segment that includes Zara, H&M, Top Shop and Uniqlo.

Do Thai Thuc Uyen, manager of Mirrabella, said business performance is satisfactory with the growth rate of 10-15 percent because its holding company does outsourcing for its foreign partner.

The big problem now for Mirrabella is in the development of the distribution network. Since the retail premises rent is high and Mirrabella is just a small brand, it is difficult for them to enter large shopping malls. They have had only three shops after three years of development.

Janny Thuy Tran, director of Vertex Co, said that there was no big difference in the quality and design among Vietnamese brands. The competitive edge lies in financial capability which helps brands advertise their products.

Juno shows the power of financial capability. Juno has been in the market for 10 years, but it became well known only in the last two years after receiving investment from Seedcom in finance and technology.

http://english.vov.vn/economy/footwear-manufacturers-plan-comeback-to-conquer-home-market-348685.vov

Renewable energy will lead the power sector

03/May/2017 Intellasia| The Saigon Times

Renewable energy will lead the energy sector in the next 20 years and the production cost of renewable energy is gradually approaching that of traditional energy, heard a conference on energy solutions for Vietnam held by general Electric Company (GE) in Hanoi on April 27.

Andres Isaza, vice president and chief commercial officer of GE Renewable Energy, said there are three trends in the energy industry: technological change, scattered electricity production and reduction of CO2 emissions.

Digital technology with data analysis software and modern hardware will provide stable power supply at more reasonable costs.

In addition, the trend toward scattered electricity generation, in which power plants are not centralised at certain areas but located near sources of electricity consumption, will also change the energy sector. Consumers have become electricity producers as more and more individuals and organisations install and operate their own power generation units. Therefore, power firms will face many challenges due to profit decreases.

In the third trend, the world's electricity industry is required to slash CO2 emissions by using modern technology. In December 2015, as many as 196 countries signed the COP21 Paris agreement to keep global temperatures in this century at no more than two degrees Celsius above the average in the pre-industrial era.

Vietnam will be directly affected by these changes, said Isaza, and gas power will account for a greater part of the country's power sector and renewable energy will grow faster than traditional energies.

According to Isaza, new technology has helped reduce the cost of renewable energy production and in the next 20 years, renewable energy will contribute 60 percent to growth in the electricity sector.

Wind power is a source of renewable energy in which Vietnam has advantages, but the government needs to issue policy incentives and create favourable conditions for this sector to grow and contribute to the development of the electricity industry.

http://english.thesaigontimes.vn/53688/Renewable-energy-will-lead-the-power-sector.html

Infrastructure attracts investment to north Vietnam 03/May/2017 Intellasia| VNA

The newly established five modal (rail/road/air/river/sea) infrastructure network has brought a great deal of investment to the Red River Delta, especially Hai Phong, delegates told a recent seminar held in HCM City.

Hans Kerstens, international business development manager at Deep C Industrial Zones, said in the last five years, the north has become the most popular investment destination for foreign companies.

Almost 60 billion USD has been invested there since 2011, outperforming the south by nearly 9 billion USD, he said.

Availability of prime industrial land adjacent to the new infrastructure developments in combination with reliable power, water, wastewater treatment and, unconditionally, the best tax package available in Vietnam are some of the reasons why many more investors have decided to come here, he said.

Vu Duy Mat, deputy director of the Cat Bi International Airport in Hai Phong, said the airport, upgraded last year, has been a success story in terms of both passengers and cargo.

In the first quarter of this year passengers and cargo throughput increased by 47 percent and 48 percent year-on-year.

The presence of a second airport (besides Noi Bai Airport in Hanoi) capable of handling cargo via international routes is an imperative to comfort investors in the mobile phone and electronics business, he said.

Pham Hai Manh of the Ministry of Transport's Maritime Project Management Unit said a major game changer in the north has been the construction of the new Hai Phong International Gateway Port (also known as Lach Huyen Port).

Until recently, Hai Phong only had a port with a limited draft of seven metres. The new Lach Huyen Port, which will become operational next year, will allow vessels with a draft of 14 metres or 100,000dwt to berth in Hai Phong, eliminating the need to tranship from places like Singapore or Hong Kong and reducing the time to markets.

Hai Phong in particular has received a lot of interest among foreign investors, Do Trung Thoai, Chair of the Hai Phong Economic Zone Authority, said.

It is home to 490 FDI projects worth almost 14 billion USD by some major players like LG, Bridgestone, Knauf, Regina Miracle, Nipro Pharma, and Flat Glass.

The integrated infrastructure, especially the transport system, has been one of the biggest factors in this. Its investment environment too has greatly improved, especially in terms of administrative procedures,

enabling businesses to get licences and customs and tax declarations faster, he said. He expected the investment wave in the city to strengthen further when large national transport

infrastructure works are completed soon. He hailed the active support offered by local authorities to investors. The province has approved a list of projects requiring FDI investment in 2016-20, with a focus on

environment-friendly ones, he said. Kerstens said investors in the Deep C Industrial Zones can enjoy the convenience of transportation by

sea, road, rail, and air. They have so far attracted over 3 billion USD worth of investments from various countries in 70-odd

projects. The zones support customers by providing an integrated support package in an unconditional and

transparent way to allow them to do business hassle-free, Kerstens said. Nearly 100 business people attended the seminar on "Mega Infrastructures Make Difference in the

North" organised by Beluxcham together with various IP authorities, Deep C Industrial Zones, and KPMG. http://en.vietnamplus.vn/infrastructure-attracts-investment-to-north-vietnam/110964.vnp

Japan injects additional capital in Dong Nai province 03/May/2017 Intellasia| VNA

Japan has affirmed its position as one of the two largest investors in the southern province of Dong Nai by landing further investments in the locality from the outset of this year.

Most of the capital came to the support industry, a field that the province is calling for investment to enhance input material supply capacity for local enterprises and lessen dependence on imports.

Mai Van Nhon, deputy head of the Dong Nai industrial zone management board, said Dong Nai has been an attractive destination for Japanese investors in recent three years, adding that most of the investments are in support industry, electricity, electronics, mechanics and machines.

From the beginning of this year, the province has constantly welcomed Japanese businesses studying and seeking investment opportunities.

Representatives from 22 enterprises in Japan's Sakai city came to Dong Nai province this month to study investment opportunities. They made a fact-finding tour of local industrial parks like Amata and Long Duc.

Meanwhile, Kobelco Eco-Solutions Col., Ltd under the Kobe Steel Group proposed investing in the province's clean water treatment. The company already jumped in investment in waste water treatment at Loteco and Long Duc industrial parks.

Experts said that Vietnam's engagement in new generation free trade deals has brought numerous opportunities to enterprises operating in Vietnam, including those from Japan.

Dong Nai province has seen robust growth of exports to Japan since the Vietnam-Japan free trade agreement took effect. Last year, the locality shipped over 1.5 billion USD worth of products to Japan, up 11 percent year-on-year and Japan was the second largest export market of the province.

In recent years, local businesses have paid much attention to orders from the Japanese market to enjoy tax preferences.

A representative from Mabuchi Motor Vietnam Co., Ltd said that thanks to preferential policies, the company's products become more competitive in the Japanese market and this makes production hike 13 percent each year. The company will enlarge their material production to reduce imports and meet demand from its partners.

According to the provincial Department of Planning and Investment, the province granted investment certificate to 31 foreign direct investment projects worth 314 million USD in the first three months of this year.

The province is currently home to 32 industrial parks. To date 44 countries and territories have invested in the province with over 1,200 investment projects.

http://en.vietnamplus.vn/japan-injects-additional-capital-in-dong-nai-province/110972.vnp

Mekong Delta expands farm land toward large-scale production 03/May/2017 Intellasia| VOV5

Land concentration toward large-scale commodity production is one of the main objectives of Vietnam's agriculture restructuring.

Farm land expansion in the Mekong Delta region has benefitted those involved in large-scale production models.

With 120 ha of farmland, Nguyen Van Khanh of Phu Cuong village is one of the largest individual landowners in Dong Thap province. Until recently his family farmed several small disconnected fields. Khanh has found ways to consolidate his farmland by renting the land from others to create large-scale production areas.

But Khanh says this is a band-aid solution. In the long run, he says, he hopes the government will promulgate a clearer policy on farmland expansion.

Khanh told VOV "With this model, we can mechanise agricultural production to increase efficiency. But we need clearer policies on the expansion of farm land so farmers can feel secure about their production."

In Dong Thap, one of the Mekong Delta's largest farm areas, the average farm household has about 1,440 square meters of farmland, which is usually divided into separated rice fields, making mechanisation unfeasible. But lately some farmers and collectives, in expanding their farmland, have begun to develop larger-scale production models.

Le Minh Hoan, Secretary of the Dong Thap provincial Party Committee, said land expansion is an important lever for boosting production of farm commodities and changing farmers' ways of thinking.

"We should find a way to get farmers to reach a consensus on farmland expansion and indemnify their risks. Dong Thap is trying to persuade farmers to expand their farmland or lease land to create larger-scale paddy fields," said Hoan.

Farmland expansion began earlier in the Mekong Delta than elsewhere in Vietnam, but there have been lots of difficulties in affirming ownership of the land.

Huynh Van Thon, director general of the Loc Troi Group, a leading distributor and manufacturer of crop protection chemicals in Vietnam, said farmland expansion has made it easier to mechanise production and apply modern technology and farming techniques.

Thon said that in recent years a growing number of farm households have joined his group's large-scale rice field model. For the first winter-spring crop of the 2010-2011 period, the model was applied to about 1,000 ha. That figure had grown to more than 90,000 ha by 2015.

He said "I hope the government can convince the National Assembly to increase farmers' land ownership and allow them to expand their fields. That will foster large-scale production and mechanisation and modernise Vietnam's agriculture."

According to the Steering Committee for the Southwest Region, the large-field model has cut production costs 10 percent to 15 percent and increased production values 20 percent to 25 percent, boosting farmers' profits to $330 per hectare.

http://english.vov.vn/economy/mekong-delta-expands-farm-land-toward-largescale-production-348652.vov

Knock-on effects of Can Gio growth

03/May/2017 Intellasia| VIR

An influx of transport and real estate projects planned for Can Gio has created a land fever in this island district. Alongside with expectations of what the turnaround could do for one of poorest areas in HCM

City, many experts have raised concerns about the environmental threats that come with such a development. Gia Huy reports.

The arrival of capital Can Gio is an island district southeast of HCM City, about 50 kilometres away from the city centre. This

is the only district of HCM City that touches the East Sea, and the surrounding river and stream system is populated by a vast mangrove forest one of the most distinct hallmarks of a diversified ecosystem consisting of a wide variety of flora and fauna endemic to coastal Vietnam.

In 2011, the city's management authorities inaugurated the 31km-long Sac Forest road at a total investment capital sum of VND1.56 trillion ($71 million), stretching from the Binh Khanh ferry-landing to the district centre.

The Can Gio real estate market began to warm up in late 2016, after the completion of the 5.8km-long Binh Khanh Bridge which connects Nha Be and Can Gio districts. This is the first bridge linking Can Gio to HCM City's centre, which should help bolster tourism and entertainment activities in Can Gio's seaside areas.

Early last month, the HCM City People's Committee approved a plan to build Can Gio Bridge, which will replace the Binh Khanh ferry-landing. The 40m-wide, six-lane bridge will have a 5.8km-long approach road, with a speed limit of 60km/hour. The total investment capital for this project sits at around VND5.3 trillion ($241 million).

After the plan was made public, a string of real estate development plans were announced. On April 10, Chair of the HCM City People's Committee Nguyen Thanh Phong gave a nod to the Can Tho Urban Tourism JSC, the project's developer, to increase the land area of Can Gio tourism and urban complex from 1,080 to 2,870 hectares. The project received approval for its investment proposal 17 years ago, at an initial area of 600ha. It then incurred delays due to a variety of factors, and now the project is accelerating its pace alongside the expansion of its scope.

Nguyen Thanh Nha, director of the HCM City Department of Planning and Architecture (DPA), said that Can Gio has received many proposals for building resorts and modern trade centres in the district.

In the future, investors might also build a casino in the district to serve visitors. DPA is reviewing the district planning and the projects which are in progress or set to commence construction to report to the prime minister early next year.

HCM City-based real estate developers have recently begun to seek investment opportunities in Can Gio. "When Can Gio Bridge's construction is finalised, the district will turn into a resort property hot spot.

Many other investors will also flock there for project development," said Nguyen Van Hau, general director of realty firm Asian Holding Real Estate JSC.

Real estate projects in the district saw their prices ascend sharply in the past weeks, as many secondary investors flocked there to hoard land for speculative purposes. The transaction price has reportedly increased week after week since early April, after the news on the construction of Can Gio Bridge was released.

One square metre of residential land in an area next to Sac Forest Square fetched VND2.5 million ($113) in early April. By mid-April, that same plot went for VND3.5 million ($159) per sq.m.

"The land price rose the most in coastal areas, which currently average VND13 million ($590) per sq.m. Meanwhile it stood at only about VND10 million ($454) per sq.m last year," said Nguyen Van Cuong, a local real estate investor.

"These inflated prices are driven by speculative investors. The actual price is much softer, at about VND8 million ($363) per sq.m," he added.

Preserving Can Gio's ecosystem To experts, the market's recent movements act as a warning sign. The commitment of HCM City leaders

to turn Can Gio into a tourism hub has long been known, but the recent ascendant land prices are an aberration. Going on little more than rumour, the land prices are rising day by day.

"Without prudence, the real estate market might backslide as it did in 2008, and these inflated land areas might turn into deserted land areas," said Tran Khanh Quang, a real estate consultant.

According to deputy Chair of the Can Gio District People's Committee Truong Tien Trien, the district is home to an important biosphere reserve zone which covers 33,000 square kilometres, nearly half of the district's overall area. If too many investors head there, the land price will increase and the general planning will be disrupted, negatively affecting forested areas as well as the local ecosystem.

A source from the HCM City Real Estate Association said that the Can Gio Bridge construction has yet to be officially approved, and most property developers have just studied investment plans in the district.

The source cautioned that claims of Can Gio quickly becoming a tourism hub are unrealistic, and only facilitate speculation in the area.

Architect Nguyen Van Hung, director of Green Architecture Company, said that besides being a biosphere reserve site, Can Gio is a strategic location for national defense, which adds one additional wrinkle to the planning forecast. Any megaprojects developed in the district must carefully consider their effect on HCM City's buffer zone planning.

http://www.vir.com.vn/knock-on-effects-of-can-gio-growth.html

Numerous low-cost housing projects to be launched in Q2 2017 03/May/2017 Intellasia| DTCK

Dang Hung Vo, former vice minister of National Resources and Environment said that the overall picture of the real estate market of Hochiminh city (HCM City) shows that investors have begun to make changes in project development. In which, reducing the number of high-end projects and developing low to and mid-end projects with large market demand is the optioned chosen by many investors. Particularly, many firms said they would launch low-cost projects in the second quarter.

Data from the Housing and Real Estate Market Management Department under Ministry of Construction pointed out that the total supply of apartments in HCM City reached 14,522 units in 2014, 25,560 units in 2015, and nearly 24,000 units in 2016. Particularly, in 2014, the number of high-end apartments accounted for 45 percent, while low to mid-end units accounted for respectively 28 percent and 27 percent. In 2015, these numbers were respectively 40 percent, 35 percent, and 25 percent. In 2016, high-end apartments accounted for 31 percent, while low and low-end units accounted for respectively 49 percent and 20 percent. Thus, the HCM City real estate market has witnessed a shift as the low-end apartments have constantly accounted for above 20 percent, while high- and mid-end units accounted for less than 80 percent. The uptrend of low-cost apartments is very clear. Hence, in HCM City, the apartment market is growing towards increasing the number of low and mid-end units, said Vo.

In 2017, information gathered by reporter of Dau tu Bat dong san showed that real estate firms in HCM City continued the strategy to develop low- and mid-range housing projects, such as the D-Vela project with 169 apartments, invested by the Dream House Joint Stock Company; Phu Hoi urban area; Truong Luu residential area of Kim Oanh Real Estate; Him Lam Phu An with more than 1,000 apartments invested by Him Lam Land; or the 10 mid-range apartment projects to be launched by Hung Thinh Corporation with a total of nearly 6,000 apartments, etc.

The prices of these projects are considered appropriate with the needs of the majority when ranging around 10-20 million dong per square metre, located in districts like district 8, district 9, Thu Duc district, and district 7, etc. Particularly, a new subdivision is expected to provide thousands of affordable apartments to HCM City market, which is the western area of the city with projects of Novaland and Hung Thinh Corporation, etc.

Overall, low-cost projects are mainly developed in the areas with high number of low-income people, such as Binh Tan district, Tan Phu district, district 9, Thu Duc district, and Binh Chanh, etc. These areas have high population density, with abundant land fund and high demand for affordable residential housing.

General director of Hung Thinh Land Nguyen Nam Hien believed that the move from luxury segment to low and mid-range apartments is a well-researched strategy and his business has looked at the real demand of the market.

In addition, Hien also said that developing low-cost housing projects is also in line with the development orientation of the city when these projects are located in the environs, and this development is part of the plan to expand the population of HCM City. According to Hien, although his company develops all three segments of high-end, mid-end and low-end apartments, he believed that the second quarter will be the period for average and low-cost apartments.

Meanwhile, economist Nguyen Tri Hieu said that the needs to buy low-priced apartments in HCM City is very high, as the current average income in Vietnam is 2,000 USD per person per year, particularly 4,000 USD per person per year in Hanoi and 6,000 USD per person per year in HCM City. A large number of people having average income of about 10 million dong per person per month or less will never be able to buy a high-end apartment. Thus, their real need is to buy affordable housing, and this is a potential direction for real estate firms.

"Firms should set lower profit targets and pay more attention to the people's needs. In addition, the State should care more about the supply-demand gap in the apartment market in order to have appropriate policies, helping businesses have peace of mind to develop low-cost housing for people", said Hieu.

No worries about having shortage of land fund The total of 21 projects launched in the first quarter of 2017 (data given by CBRE) points out that the

market recorded a sharp fall of up to 44 percent in supply compared to the fourth quarter of 2016. However, this decline, according to leader of the Vietnam Real Estate Association, is due to different reasons. Firstly, the first quarter is usually the restructuring period of firms after three stressful quarters on the market. Secondly, the management authority is having policy to tighten the development of new real estate projects. This tightening can be seen from the fact that investors wishing to apply for a new project license now must go through additional units, such as the Department of National Resources, Department of Finance, and Department of Planning and Investment, instead of the People's Committee, Ministry of Construction or the Department of Construction like in the past.

Furthermore, the development of land fund to carry out new projects of firm also has to follow more stringent procedures as the prime minister requested the Ministry of Finance to switch from land valuation to auctioning the land price.

Economist Hieu added that some firms are currently holding land fund and wait for the right time to develop the project. This comes from the psychology of having too many existing unsold projects while there are tens of new projects are launched into the market, which leads to fierce competition and products can hardly be sold. In addition, since the land fund is getting scarce, developing projects at the present time may cause firms to be disadvantaged, while implementing the projects in another time may help the firm to easier develop and sell products at good price with low competitiveness.

Tran Quoc Viet, Chair and general director of Cat Tuong Duc Hoa Real Estate Joint Stock Company said that his unit is currently having six large land plots to develop, but it is not the right time for them to be launched. Thus, Cat Tuong Duc Hoa is currently still developing Cat Tuong Phu Sinh project with a total area of more than 100 hectares, and new plan will be implemented when this project is completed.

The consideration of Viet is also the calculation of many other investors as lessons show that making efforts to develop in too many areas may weaken real estate investors. Slowing down to gain sustainability is probably a suitable direction in the context when the supply is increasingly expanding.

Business Briefs May 03, 2017

03/May/2017 Intellasia |

* KIDO Group Corporation (KDC) has registered to buy 32.8 million shares of Vietnam Vegetable Oils Industry Corporation (VOC) to increase its stake

from 24 percent to 51 percent. Put-through transactions will be conducted from May 4 to June 2. Meanwhile, VPBank Securities Company is no longer a major shareholder

of VOC. as the brokerage has transferred over 9.7 million VOC shares, or an 8 percent stake. * Do Huu Ha, chair of Hoang Huy Investment Services Company (HHS), has acquired 10 million HHS

shares to raise his ownership from 1.8 percent to 5.5 percent. * Hang Xanh Motors Service Company (HAX) has passed a share issuance scheme to raise its chartered capital. It will offer over 8.5 million bonus shares to existing shareholders and over 572,000

employee stock ownership plan (ESOJ;» shares. The scheme will take place in the second or third quarter after getting approval from the State Securities

Commission. * Long Giang Investment and Urban Development Company (LGL) has finished the acquisition of a 51

percent stake of Minh Phat Joint Stock Company in Binh Thuan Province. * ABBank general director Cu Anh Tuan at an annual general meeting yesterday said that the bank plans

to double its capital to around VNDI0 trillion in the near future to meet a new safety ratio set by the central bank. According

to the stock market news website at vietstock.vn, ABBank will carry out the scheme in two stages, with the first phase lifting its

capital to VND7.5 trillion at the end of this year. Besides, the bank has applied to list on the market for unlisted public companies,

or UP CoM, in July. In 2017, ABBank is targeting to raise its pre-tax profit by 56 percent versus the previous year to V 0450 billion while reducing the ratio of bad debt to outstanding loans to 1.68 percent from 1.95 percent in 2016.

* Danang Housing Investment Development Company (NON) said it made a consolidated net profit ofVND12 billion

in the first quarter of this year, up 6.6-fold year-on-year. Its revenue decreased 34 percent to VND36.3 trillion in the quarter.

* Construction Company o. 1 (VCl) will spend VNDI4.8 billion paying a dividend of V 02,000 per share for 2016. The company will pay it on June 30.

Japan supports Petrolimex to produce new-generation fuel dispensers

03/May/2017 Intellasia| VNS

The Vietnam National Petroleum Group (Petrolimex) and two Japan-based companies Tatsuno corporation and Nomura Trading Company will extend the agreement on technical cooperation and technology transfer signed between them in August 1999.

Accordingly, Tatsuno will continue to support Petrolimex Equipment Joint Stock Company (PECO) to manufacture and assemble new generation fuel dispensers with user-friendly multi-pumps.

Nomura Trading Company will import equipment for Petrolimex and assemble a series of Semi-Knocked Down dispensers designed by Tatsuno.

According to Petrolimex general director Tran Van Thinh, during a recent visit to Japan, Petrolimex had asked Tatsuno to continue supplying new equipment and technology for Petrolimex, such as steam recovery fuel dispensers and super lightweight oil guns. Tatsuno chair Hiromichi Tatsuno expressed his desire to continue long-term cooperation with Petrolimex and PECO for the modernisation of petrol stations.

Petrolimex is the largest petrol retailer in Vietnam, accounting for 50 per cent of the market share with over 2,300 stations nationwide and more than 4,000 petrol dealers.

http://bizhub.vn/news/japan-supports-petrolimex-to-produce-new-generation-fuel-dispensers_285844.html

Wood pellet spike in Japan signals potential for Vietnam 03/May/2017 Intellasia| VOV

New record highs for trade of wood chips from Vietnam are projected for 2017 with China and Japan accounting for 70 percent of total exports followed by Finland, Sweden and Turkey, reports the Wood Resource Quarterly.

Over the past 15 years, the global trade of wood chips has risen dramatically by almost 75 percent, mainly because of major expansion of pulp capacity in China. Wood chips, with the exception of Turkey, are used to produce pulp, paper, paperboard and other cellulose-based products.

Turkey is the only country to import wood chips for use in producing medium density fibreboard, which is a wood product with a wide variety of uses that is similar but much denser than plywood or particleboard.

The Chinese demand for wood chips has been further heightened by governmental logging bans in 14 provinces that have forced buyers to source more heavily from surrounding countries including Vietnam, Laos, Cambodia and Myanmar.

In Vietnam, officials estimate that almost 90 percent of Central Highlands timber has been sold to buyers in China.

The major sources of hardwood chips for the two dominant importers, China and Japan, are Vietnam followed by Australia, Chile and South Africa in descending order of magnitude of the volume of their exports.

However, Vietnam suppliers face constraints going forward, says the Wood Resource Quarterly, as current export volumes are not sustainable.

Past growth of the industry is attributable to the fact that it has been driven by demand from China; it takes low levels of capital, technology, and labour to establish a wood chip factory; and government policies that have facilitated growth through easy factory licensing and wood chip export tax exemptions.

In 2016, analysts point out, that the Vietnam government for the first time levied a tax on wood chip exports, with the aim of conserving the country's timber resources and reducing exports in 2017 and later years to China.

Meanwhile, the burgeoning demand for wood pellets in Japan is principally due to aggressive energy policy initiatives that have been introduced by the Ministry of Economy, Trade and Industry aimed at reducing the East Asian island nation's dependence upon traditional fossil fuels as an energy source.

One of the most significant developments along these lines is the recent announcement by the Japanese Environment Ministry that the country intends to construct 43 high-efficiency coal-fired power plants over the next 10 to 12 years.

This robust expansion of the country's coal-based energy capacity is viewed as a boon for biomass wood pellet producers, as the stringent emissions targets for these new coal power stations will virtually guarantee a need for co-firing with wood pellets.

Vietnam is not currently well-positioned to take advantage of this increased Japanese demand for biomass wood pellets because producers cannot meet the standards for quality, sustainability and reliability that have been outlined by Japanese importers.

Specifically, Japan requires all imported wood pellets to be Forest Management (FM) certified, and Vietnamese wood pellets do not meet these requirements but could with adequate industry leadership and training.

The Japanese plans to double down on coal-based energy production presents a unique opportunity for forward thinking concerns in the Vietnamese wood pellet export market as demand shows no signs of slowing any time soon.

Conditions are ripe for a long-term trade partnership between Japan and Vietnamese business concerns that offer significant benefits for the mutual benefit of industry participants from both countries.

http://english.vov.vn/market/wood-pellet-spike-in-japan-signals-potential-for-vietnam-348534.vov

48 million-USD projects set to ensure power supply for Apec 03/May/2017 Intellasia| VNA

Several key power transmission projects, worth a total 1.1 trillion VND (48.4 million USD), have been constructed since 2015 to ensure power supply for the Asia-Pacific Economic Cooperation (Apec) meetings in Vietnam this year.

Members of the Electricity of Vietnam (EVN) Group the Central Power Corporation (EVN CPC), the National Power Transmission Corporation, and Da Nang Power Co., Ltd worked together to carry out these projects.

A 220kV, five 110kV and two medium-voltage transmission lines have been completed to date while the construction of five other 110kV and four medium-voltage lines has been sped up in an attempt to put them into use before August.

The EVN CPC confirmed that electricity will not be cut off at any time in Da Nang City from October 25 to November 15 and it will ensure the reliability of the system and have backup plans for power supply at Apec events.

Locations for Apec events such as Da Nang Sun Peninsula Resort, Furama Resort, Pullman Resort, Olalani Resort, Sheraton Hotel, Novotel Hotel, Tien Son Sports Palace, Da Nang City Administration Centre and Da Nang International Airport will be prioritised for power supply.

Vietnam will host about 200 Apec events across ten major cities, with the biggest being the Apec week in central Da Nang city in November.

This year marks the second time Vietnam will host the Apec, following the first in 2006. http://en.vietnamplus.vn/48mlnusd-projects-set-to-ensure-power-supply-for-apec/110960.vnp

Hanoi loses VND1,500 billion due to pig price falls 03/May/2017 Intellasia| The Saigon Times

Pig farmers in Hanoi have incurred accumulated losses of up to VND1,500 billion due to protracted price falls, heard a conference held by the Ministry of Agriculture in Hanoi on April 27.

Live pig prices in the last six months have averaged out at VND25,000 a kilo while the average production cost ranges between VND33,000 and VND39,000 a kilo.

Therefore, farmers are suffering a loss of VND1 million to VND1.6 million a pig, and 1.5 million pigs have been sold since October 2016.

Ta Van Tuong, director of the Hanoi Livestock Development centre under the Hanoi Department of Agriculture and Rural Development, said at the conference on solutions for livestock industry stabilisation that farmers have slaughtered pigs themselves to save costs.

Nguyen Hung Thinh, a pig farmer in Hanoi's Phuc Tho District, said that he did not know the reasons behind the protracted price decreases. Farmers have not been provided with any information about the market and the plan of this sector.

Dinh Xuan Thuy, another pig farmer in Hanoi's Hong Quang District, has sold 15 kilos of piglets at VND300,000 because he does not have enough money to raise the piglets.

The situation is predicted to be even more difficult as consumers may switch to using other products such as seafood, chicken and duck in the near future.

Therefore, the Ministry of Agriculture and Rural Development on April 27 sent an official letter to authorities of provinces and cities nationwide to carry out livestock stabilising solutions.

Accordingly, the ministry assigned specialised agencies to help farmers apply technical solutions in the breeding process to cut costs.

Cattle-feed producers and traders are suggested to reduce selling prices and share difficulties with farmers. In addition, animal health agencies should strengthen disease and vaccination inspections to prevent disease outbreaks in the near future.

Food processors are encouraged to invest in processing and storage to boost stockpiling to help consume pigs for farmers.

http://english.thesaigontimes.vn/53708/Hanoi-loses-VND1500 billion-due-to-pig-price-falls.html

Higher minimum capital required for private universities 03/May/2017 Intellasia| The Saigon Times

The minimum capital required to establish a private university is VND1 trillion (about $44 million), four times higher than before, according to a new government decree providing conditions for investment in and operation of educational institutions.

Decree 46, which was signed by prime minister Nguyen Xuan Phuc on April 21 and took immediate effect, specifies the required minimum capital of VND1 trillion includes cash and assets and excludes land value. By the time of appraisal for university establishment, the investment that has been disbursed must be at least VND500 billion.

According to the previous regulation, private universities only need to have chartered capital of at least VND250 billion (excluding land value) and there was no regulation on the investment value at the time of appraisal for establishment.

Besides, in order to establish a private university, organisations and individuals must have a detailed scheme in line with social and economic development and university network planning. Only universities having as sufficient land, facilities, student dormitories and equipment for physical education as required, and receiving an establishment certificate from the prime minister can be put into service.

In addition, according to the new regulation, private universities wanting to open a subdivision must have minimum investment capital of VND250 billion, excluding the value of land for building the subdivision. By the time of appraisal, the investment value must have reached at least VND150 billion.

http://english.thesaigontimes.vn/53699/Higher-minimum-capital-required-for-private-universities.html

HCM City's Metro Line No.1 at risk of delay 03/May/2017 Intellasia| The Saigon Times

Metro Line No.1 linking Ben Thanh Market in District 1 and Suoi Tien Park in District 9 might be delayed until 2020 due to slower-than-expected disbursement of Japan's official development assistance (ODA) capital.

Speaking to the Daily on April 27, Le Nguyen Minh Quang, director of the Management Authority for Urban Railways (MAUR) of HCM City, said that if the city delays payments for contractors, they may suspend construction, causing the project to fall behind schedule.

At a meeting on the city's socio-economic performance on April 27, Quang said the city will need VND5.2 trillion (about $228.9 million) to finance construction of Metro Line No.1 this year but the amount of ODA capital allocated by the Ministry of Planning and Investment is only VND2.9 trillion.

The metro line has a length of nearly 20 kilometers passing through districts 1, 2, 9, Binh Thanh, Thu Duc in HCM City and part of Di An District in neighbouring Binh Duong Province with a 2.6-kilometer underground section and an elevated section of over 17 kilometers along Hanoi Highway.

After years of slow developed caused by numerous adjustments, the total investment cost of the project has risen to over VND47 trillion (US$2.49 billion). The project was officially started in August 2012 and is expected to be put into operation in 2020.

In September 2016, the Ministry of Finance ordered the State Treasury to suspend the disbursement for the Metro Line No.1 project.

Before the Lunar New Year, the city made an advance payment of nearly VND1 trillion for workers of the metro project. As of April 26, the city still owed the contractors VND1.34 trillion (about $58.9 million).

At present, the viaducts of some elevated sections along the Hanoi Highway have been completed. Meanwhile, Ben Thanh, Ba Son and Opera House stations of the underground section are being constructed. Due to complicated technology required, the underground section is scheduled for completion by 2020.

According to a report of the city government sent to the Ministry of Planning and Investment, two major ODA projects of the city Metro Line No.1 and phase 2 of the water environmental improvement project, need VND7 trillion (about $308 million) in 2017. However, the central government has approved to allocate only VND3.5 trillion.

Due to slow disbursement, some contractors have threatened to delay or even stop construction work. http://english.thesaigontimes.vn/53704/HCM City percentE2 percent80 percent99s-Metro-Line-No1-at-

risk-of-delay.html

Ninh Thuan works on 2 solar power projects 03/May/2017 Intellasia| VNS

Leaders in Ninh Thuan province on Wednesday began joint work with Power Generation Corporation 3 (Genco 3), under Vietnam Electricity Group (EVN), on two solar power projects in the province.

Operating under the plan of the Ministry of Industry and Trade and EVN on renewable energy development, Genco 3 proposed investments in two solar power projects in Phuoc Minh Commune, Thuan Nam District.

The proposed projects cover an area of 554 hectares with an installed capacity of 350 MW and total investment of nearly VND9.58 trillion.

Construction of the project is expected to begin in the second quarter of 2018 and to finish in the first quarter of 2021.

In addition to producing solar power, Genco 3 will provide hi-tech agricultural production within the project area.

Currently, Genco 3 is managing 12 thermal and hydropower plants nationwide, with a total capacity of 6,549 MW, accounting for nearly 17 per cent of the nation's power system output.

http://bizhub.vn/news/ninh-thuan-works-on-2-solar-power-projects_285843.html

Tra Vinh attracts additional projects 03/May/2017 Intellasia| VNA

The southern province of Tra Vinh granted licenses to eight projects in April, including seven domestic ones worth more than 327 billion VND (14.2 million USD) and one foreign-invested worth 3 million USD, according to the provincial authorities.

Since early this year, the province has lured 15 domestic projects with a total registered capital of nearly 581 billion VND (25.26 million USD) and three foreign-invested ones worth 5.64 million USD, up 518 billion VND (22.5 million USD) and 4.64 million USD year-on-year.

Tran Anh Dung, vice Chair of the provincial People's Committee, described key national projects in the province as one of the favourable conditions for local investment attraction, including Luong work for the travel of large capacity vessels on the Hau River and Co Chien bridge that facilitate the marine-based economy and goods transportation by road.

The Duyen Hai power centre with four power plants is capable of generating nearly 4,500 MW of electricity to major industrial projects, meeting power demand in the region.

With a lengthy coastline and extensive fishing grounds, Tra Vinh is well-positioned to develop wind and solar power; cruise, ecological, spiritual and resort tourism, he said.

Tra Vinh currently records 181 projects, including 35 foreign-invested ones worth about 3 billion USD and 146 domestic ones with a total registered capital of more than 98 trillion VND (4.26 billion USD).

It is home to 1,900 businesses and 1,001 affiliates with a total registered capital of some 25 trillion VND (1.08 billion USD) and creates jobs to in excess of 85,000 workers in and outside the province.

http://en.vietnamplus.vn/tra-vinh-attracts-additional-projects/111084.vnp

Plans weighed to restrict private vehicles in HCM City 03/May/2017 Intellasia| The Saigon Times

Restricting private vehicles is a must to reduce traffic congestion and air pollution in HCM City, said the director of the city's Department of Transport at a meeting on April 27 on the city's socio-economic performance in the first four months of 2017.

Bui Xuan Cuong said the department would send the HCM City People's Committee plans and specific roadmaps to restrict private motorcycles and automobiles in the city.

The department is working with relevant agencies to research and map out plans to reduce traffic congestion. Transport experts and scientists will join forces to evaluate and adjust the plans before seeking public comment.

"Restricting private vehicles is an urgent task since the development of the city's transport infrastructure cannot meet the fast growth of private vehicles, causing not only traffic congestion but also environmental pollution," he added.

Data as of April 15, 2017 showed the city had had about eight million vehicles, 640,000 of them autos and the remainder motorcycles. In addition, the city has some 169 autos and 816 motorcycles newly registered a day.

According to the plan to reduce environmental pollution by 2020, the city has to cut 70 percent of emissions from vehicles. Therefore, controls on private vehicle growth will help reduce not only congestion but also environmental pollution.

Speaking about the recent traffic congestion situation, Cuong said there are 120 construction site fencing hoardings in the city at the moment. To construct Metro Line No.1, the number of such hoardings will even increase in the near future.

http://english.thesaigontimes.vn/53711/Plans-weighed-to-restrict-private-vehicles-in-HCM City.html

Wind power plant built in Ninh Thuan 03/May/2017 Intellasia| VNA

Singapore based renewables developer The Blue Circle and its Vietnamese partner TSV began construction of Dam Nai wind power plant on April 28 in Tan Hai commune, Ninh Hai district, the central province of Ninh Thuan.

The 40- MW wind park is built on an area of 9.6 hectares with a total investment of 80 million USD. The project consists of two phases, of which the first phase is expected to finish by October 2017 with

three turbines operating. A total of 16 turbines will be fully operational in the second phase which lasts to October 2018.

Turbines used for the wind farm will be supplied by Spain's Gamesa. With a capacity of 2,625 MW and a diameter of 114 metres, it is the largest wind turbine installed in Vietnam so far.

Investors have been asked to mobilise all resources to carry out the project promptly and ensure work and environment safety.

The provincial People's Committee has directed local authorities to create favourable conditions to support investors during the project construction and their business in the localities.

Vietnam has great potential for wind power, estimated at about 10,000 MW, according to research by the German International Cooperation Agency (GIZ).

The country needs to switch to renewable energy such as wind and solar power as it has cancelled its first two nuclear power projects and has started implementing commitments on reducing greenhouse gas emissions, experts have said.

Only four wind power projects are operating in the country with a total capacity of 160 MW, which is far below the huge potential that exists in the country.

The government has released its National Electricity Development Plan for 2011-2020 with a strategic priority on renewable energy, with wind power capacity targeted at 800 MW by 2020 and 6,000 MW by 2030.

http://en.vietnamplus.vn/wind-power-plant-built-in-ninh-thuan/110974.vnp

Small production contains commodity-based agriculture 03/May/2017 Intellasia| VNA

Hue owns a seven hectare plantation of clean vegetables. Each day, her farm supplies from 800 kilos to 1.2 tonnes to the domestic market.

Hue says vegetable exports have huge potential but limited land area is one of the factors hindering investors.

The Central Highlands province of Lam Dong is one of the leading localities in accumulating land and attracting investors to agriculture. Thanks to that, each hectare can earn from 22,000 to 900,000 USD.

Take a banana farm in the northern province of Hung Yen as another example. As banana prices in southern provinces plummet, this farm still rakes in high profits.

Where large scale production develops, there commodity-oriented production develops. Tens of millions of farmer households with small scale production are in need of a breakthrough.

http://en.vietnamplus.vn/small-production-contains-commoditybased-agriculture/111022.vnp

Tan Son Nhat airspace re-divided to reduce congestion 03/May/2017 Intellasia| The Saigon Times

Vietnam Air Traffic Management Corporation (VATM) on April 27 converted and redistributed the controlled airspace of Tan Son Nhat International Airport to offer aircraft the optimal trajectory and quickly learn the landing order to prevent congestion.

The controlled airspace of Tan Son Nhat is divided into two sub-zones, the control zone for incoming aircraft and the access control zone, VATM said.

In particular, the control zone for incoming aircraft is to integrate the arriving airplanes in the final stage of approaching for landing. This is to ensure the optimum order and spacing, improve the safety coefficient and the efficiency before the planes are transferred to the air traffic control tower at Tan Son Nhat.

Meanwhile, the access control zone is responsible for operating the first phase of arriving and departing airplanes and other active ones in the area to guarantee a safe distance between them.

Also, the adjustment will support the preliminary setting of the landing order for incoming aircraft, the determination of expected landing time, and the coordination with the HCM City Long Distance Control centre in planning for arriving planes to wait for a reasonable time. All of these are aimed at relieving the overload in Tan Son Nhat airspace.

In simple terms, the division of areas between landing planes and those taking off contributes to better management and easier flight control, avoiding a chaotic situation that may lead to congestion in the air.

The redistribution of the controlled airspace provides aircraft with the optimal trajectory, helping anticipate the landing order, increasing the efficiency of air traffic control and reducing congestion in the sky above Tan Son Nhat, said VATM. In addition, this move helps relieve the intensity of work for air traffic controllers and cut jet fuel consumption to improve efficiency.

Earlier, in November 2016, VATM applied a new flight management method at Tan Son Nhat International Airport to ease congestion in its airspace.

The advantage of this new method is a decline in the need for radar guidance. When an aircraft enters the controlled airspace of Tan Son Nhat, depending on the situation on the ground, controllers may allow the plane to directly make its landing.

In case the ground is overloaded, air traffic controllers inform the captain once. Then, the aircraft automatically follows the map outlined with no need for further communications between the two sides to limit information interference.

Moreover, the new method minimises the chance of arriving and departing airplanes meeting each other at a certain point, and bring down the number of intersections, helping controllers maintain a more accurate and safer spacing.

With the new method in application, airlines also benefit with their planes arriving on time, lowering the delay rate. It is most important that aircraft do not need to circle while awaiting a landing slot, helping cut fuel consumption and emissions to the environment and improve economic efficiency.

http://english.thesaigontimes.vn/53694/Tan-Son-Nhat-airspace-re-divided-to-reduce-congestion.html

Viettel Global expects to acquire 50m customers 03/May/2017 Intellasia| VNS

Viettel Global Investment JSC (Viettel Global) targets increasing its customers in foreign markets by 12.9 million in 2017, bringing the total to more than 50 million.

Viettel Global approved its business plans this year at its annual shareholders' meeting, held earlier this week. Accordingly, it targeted revenue of $1.4 billion this year, posting a year-on-year rise of 29 per cent.

It has set strategic plans this year to improve its competitiveness and sustainable investment effectiveness.

The company has also prepared plans to penetrate larger markets with a population scale of 100-200 million as one of its strategies to continue expanding its international investment.

Last year, its total revenue from telecom services in foreign countries rose by 21.5 per cent, which was double the previous year. Its new markets in Africa witnessed strong growth, such as Viettel Tanzania at 1,343 per cent, Viettel Cameroon at 43 per cent and Viettel Burundi at 42 per cent.

By the end of 2016, its total customers reached 36 million. Its telecom networks in foreign countries have rapidly moved to the number one position as a result of a strategy to focus on new 4G technology, added-value services and mobile phone application. Viettel Global has provided 4G service to five out of nine markets.

In the first quarter of the year, its pre-tax profit rose by $39.3 million in comparison with the same period last year.

Viettel Global was established in October 2006 when its parent company, Viettel Group, decided to expand business overseas.

http://bizhub.vn/tech/viettel-global-expects-to-acquire-50m-customers_285837.html

Microsoft Teams launched in Vietnam 03/May/2017 Intellasia| VNS

Microsoft officially launched Microsoft Teams - the chat-based workspace in Office 365, on Thursday in Vietnam.

Office 365 provides individuals, teams and entire organisations with the broadest and deepest toolkit for collaboration. Microsoft Teams is a digital workspace built on four core promises, including chat for today's teams, a hub for teamwork, customisation options and security that teams trust.

"Recent studies revealed that in the past five years the number of teams working in companies rose by five times. Additionally, the number of teams working through meetings, phone calls and emails rose 150 per cent during that same period. Moreover, such work accounted for up to 80 per cent of each employee's working time," said Vu Nguyen Cao Son, a senior specialist at Microsoft Vietnam.

He noted that Microsoft Teams helps groups save time during direct meetings, phone calls and email replies through use of the digital workspace.

"Office 365 is designed to meet the special demands of each team, based on their working requirements. It is integrated with Microsoft Outlook, SharePoint, PowerPoint, Word and Excel to easily follow the progress of work, thus bringing more flexibility and effectiveness to groups", said Nguyen Vu Thang, director of the Office Product at Microsoft Vietnam.

http://bizhub.vn/tech/microsoft-teams-launched-in-viet-nam_285829.html

VinaPhone launches 4G in Vung Tau 03/May/2017 Intellasia| VNS

Vietnam's mobile network operator VinaPhone on Thursday launched 4G services in the southern port city of Vung Tau.

On the occasion, VNPT Ba Ria-Vung Tau set up the booths and organised activities to provide visitors a taste of the 4G experiences. In addition, 4G SIM upgrades were offered free to the operator's customers.

VinaPhone 4G's average internet access speed ranges from 50 to 80mb/s, which is seven to 10 times faster than the current 3G network speed. At this speed, users can engage in interactive experiences, and post, download, video stream, and play games with a lag speed that's one to three times lower than 3G.

VinaPhone is offering a variety of 4G packages to customers, the cheapest being around VND79,000 (US$3.5) per month.

http://bizhub.vn/tech/vinaphone-launches-4g-in-vung-tau_285825.html

FPT to boost cooperation with French firms 03/May/2017 Intellasia| VNS

FPT will cooperate with French businesses to promote the fourth industrial revolution, FPT chair Truong Gia Binh said at a workshop held in Paris on Wednesday.

The workshop drew some 130 representatives from France's corporations, businesses and startups.

Vietnam Ambassador to France Nguyen Ngoc Son appreciated the setting up of FPT's representative office in France in 2008, which significantly helped in boosting the relationship between the two countries.

The ambassador also hoped FPT and the French firms could reach new agreements of cooperation, especially in the fields of providing information technology (IT) services and specialised solutions.

"On the demand for human resources in information technology, Vietnam's government would like to train one million programmers each year to catch up with the fourth industrial revolution. Moreover, technology is considered one of the six leading points on the basis of which Vietnam wishes to strengthen ties with France," Son emphasized.

At the conference, La Poste chair Philippe Wahl said cooperation with Vietnam was one of the key steps in the development orientation of the company in Asia. With regard to technology, Vietnam was taking strong steps in terms of development and FPT was one of the pioneers.

At present, FPT has many projects with major technology partners, such as IBM, Microsoft, GE Digital, Siemen and AWS, to train human resources and to meet the needs of this revolution.

FPT has also introduced three models of cooperation with its clients and partners in France, the model of software services, factory model applied for digital conversion service and product development model for the Vietnamese market. These models have been successfully deployed by FPT at a number of major French clients, such as Neopost, Airbus and Telespazio.

The event was organised by FPT in collaboration with France's IE Club and La Poste Company to seek opportunities between FPT and French enterprises as part of the fourth industrial revolution.

http://bizhub.vn/tech/fpt-to-boost-cooperation-with-french-firms_285822.html

Saigon Co.op retailer expands market share 03/May/2017 Intellasia| VNA

The Saigon Union of Trading Cooperatives (Saigon Co.op) is affirming its status as Vietnam's leading retailer by opening additional 8-10 Co.opMart supermarkets this year.

In addition, it will build one Sense City commercial centre and launch 65 Co.op food stores and 500 convenience store called Co.op smile.

The company will also flesh out its brand-new business model- Co.opMart Finest that connects multimedia and other forms of shopping.

It also runs the programme "Accumulating Stamps to Exchange for Gifts" until July 30 for customers holding Co.opmart cards. The programme has been launched in collaboration with Brand Loyalty that enables customers to collect a set of high-quality crystal imported from Germany.

According to Nguyen Anh Duc, permanent deputy general director of the Saigon Co.op, constant updates of international trends and renewal of promotional programmes will help the company bring practical benefits to its customers while connecting consumers and the supermarket.

The move also fosters the consumption power of the Co.op market chain's products, 90 percent of which are made in Vietnam, he added.

http://en.vietnamplus.vn/saigon-coop-retailer-expands-market-share/111080.vnp

The KAfe, Coffee Inn died young, but milk-tea chains thriving 03/May/2017 Intellasia| Vietnamnet

While a few coffee chains have had to close, milk tea chains have become popular, especially in the north.

The KAfe, Coffee Inn and Saigon Cafe recently shut down, following the closure of big foreign chains Gloria Jean's and NYDC in recent months.

Discouraged by the departure of such chains, many investors have postponed their plans to open new shops.

Meanwhile, more and more milk tea chains have been established, especially in the north and in Hanoi. This has been a surprise to analysts, as the north is a conservative market where people prefer coffee to sweet drinks like milk tea.

It is estimated that 170 milk tea brands have appeared in the market so far this year, both privately branded and franchised ones.

Unlike the 'milk tea waves' in previous years, this year witnesses the mushrooming of milk tea shops in non-Hanoi provinces, especially in Bac Ninh, Hai Phong, Quang Ninh and Phu Tho.

In Bac Ninh alone, 30 milk tea brands turned up in the market in March and April with hundreds of shops, both small kiosks to larger shops (15-20 tables).

Ding Tea is the best known brand with 100 sale points, followed by Toco Toco with 50 shops. Other brands have been present in the market for a long time, such as Chatime, ChaGo and ChaChaGo.

Other milk tea chains, franchised ones, such as Bobapop, Citea Fund and Blackball, have been expanding rapidly in the capital city. GongCha and TraTien Huong originated from HCM City, and have also landed in Hanoi.

Amy Truong, the owner of Toco Toco, said milk tea is suitable to different groups of consumers, from youth to office workers.

Two brands, which have just appeared, have been developing at a fast pace Goky and Good Tea. Goky has more than 100 shops after five months of operation, while it plans to open six more shops in May.

Meanwhile, Good Tea has more than 20 sale points after half a year of making its debut, not only in Hanoi, but in many other northern provinces.

Analysts said there were two reasons that had made milk tea become the favourite investment field. First, investors don't have to spend too much money on shop decoration, setup, staff and formula.

Second, milk tea is said to bring big profits. Sources said VND2,000 worth of tea powder is used in a glass of milk tea priced at VND20,000.

"It seems that it is now easiest to sell milk tea," the CEO of a beverage chain said. However, he warned that those who want to jump into the market will have to compete with dozens of existing brands.

http://english.vov.vn/economy/the-kafe-coffee-inn-died-young-but-milktea-chains-thriving-348715.vov

Vietnam's PV OIL holds 20pct of petroleum retail in Laos 03/May/2017 Intellasia| VNA

Vietnam's PetroVietnam Oil Corporation (PV OIL), is running profitably in Laos, earning an average revenue of over 100 million USD and contributing over 20 million USD to the host country's budget a year.

According to Nguyen Kim Son, director of PV OIL Laos, the company made its presence in 16 out of Laos's 18 provinces that allowed it to account for 20 percent of petroleum retail share and become the second largest petroleum retailer in Laos.

From an initial investment of 4 million USD, the company gained a profit of 12 million USD a year after seven years of operation. It is providing jobs for around 2,000 Lao people at its petrol stations nationwide.

PV OIL Laos officially operated from December 1, 2010, on the foundation of Laos's retail unit of Royal Dutch Shell.

Its initial 70 petrol stations have so far been increased to 104 across Laos. http://en.vietnamplus.vn/vietnams-pv-oil-holds-20-percent-of-petroleum-retail-in-laos/111030.vnp

EVN told to handle loss-making projects 03/May/2017 Intellasia| VNA

Deputy prime minister Vuong Dinh Hue has requested the Electricity of Vietnam (EVN) to review loss-making projects to ensure investment flows for its production and business.

At a working session with the group's representatives on April 26, the deputy PM said modern technologies should be applied to reduce labour costs, electricity losses and increasing transparency in the power price calculation.

He also asked the national power company to propose tariffs based on true production costs this year. The move aims to ensure EVN's profits and create favourable conditions to attract investment in renewable energies, and at the same time to curb inflation.

EVN should also clarify the results of its restructuring process of the past few years and its upcoming plans, including privatisation, divestment, building a competitive power generation market, human resources and technologies, he added.

The group's calculations show that its total production costs this year are expected to increase to more than 7.2 trillion VND (316.7 million USD) due to the fluctuation of coal, gas and oil prices.

EVN general director Dang Hoang An said earlier this year that some input costs, especially coal, have increased continuously since 2015 but have not been calculated into electricity prices. Coal prices which rose 7 percent from December 2016 accounted for over 4.7 trillion VND of the total price increase.

However, EVN says it has set a range of plans to knock off costs of about 3 trillion VND from the projected increase. Last year, its total revenue reached 278 trillion VND, posting a 14 percent year-on-year rise. All units reported profits in 2016.

The deputy PM asked the group to focus on balancing capital every year in the 2017-20 period to save at least 10 percent a year.

The ministry, EVN and relevant agencies plan to complete the privatisation process of Power Generation Corporations in the third quarter of the year.

Duong Quang Thanh, EVN Chair, said it would apply automation at all units, especially power transmission and distribution.

The Central Power Corporation has cut about 1,000 people from its payroll by installing two million electronic metres.

http://en.vietnamplus.vn/evn-told-to-handle-lossmaking-projects/110946.vnp

Viglacera to form joint venture with Cuba 03/May/2017 Intellasia| VNA

The Vietnam Glass and Ceramics for Construction Corporation (Viglacera)'s annual shareholder meeting recently highlighted the company's plan to carry out investment activities in Cuba.

The company plans to set up a joint venture in ceramic and porcelain tiles with chartered capital of nearly 40 million USD and total investment of some 61.8 million USD.

In the first phase, Viglacera will contribute capital by providing technical services, spare parts replacement and cash to renovate two factories to serve Cuban market demand and export and invest in new production lines of sanitary ware and floor tiles.

In the field of tourism and hotels, Viglacera is also cooperating with domestic partners to attract capital to establish a company, expected to have charter capital of some 3 million USD, to cooperate with Cuban partners.

In addition, the corporation plans to set up a company in Cuba to carry out real estate projects, initially to invest and upgrade two hotels owned by two groups in Cuba, at the same time seeking new investment projects.

Viglacera also plans to invest in industrial park infrastructure, with a 168ha project in Cuba's Mariel Special Economic Zone.

Last December, Viglacera entered into a joint venture partnership with Cuban giant developer Geicon to manufacture building material in the Caribbean island nation, of which, Viglacera is responsible for upgrading two existing ceramics and sanitary ware plants and investing in two more, four years after the joint venture is operational.

http://en.vietnamplus.vn/viglacera-to-form-joint-venture-with-cuba/111016.vnp

Toyota Vietnam produces 400,000th car 03/May/2017 Intellasia| VNA

Toyota Motor Vietnam (TMV) completed the production of its 400,000th car on April 27, marking the company's development milestone in the Vietnamese market.

At a ceremony in celebration of the event, TMV President Toru Kinoshita said his company has been working on the improvement of assembly lines and product quality.

This is the reason why Toyota is listed among favourite brands in Vietnam's domestic auto market. TMV started production in Vietnam in 1996, with two cars per day on average. Now, the figure is 170,

with cumulative sales as of 2016 exceeding 412,000 cars. http://en.vietnamplus.vn/toyota-vietnam-produces-400000th-car/110926.vnp

Taiwan paper plant red-flagged 03/May/2017 Intellasia| VIR

The $220 million Dai Duong paper plant project, invested by the Taiwanese company Chang Yang Holding Ltd in the southern province of Tien Giang, may be scrapped due to environmental concerns.

The Light Industry Department, which helps the Ministry of Industry and Trade regulate paper, leather, garment, and other light industries, has just completed a document containing issues related to the project, and agreed with the opinions of scientists who think this project will do significant harm to the environment.

In March 2016, the Tien Giang Management Board of Industrial Zones granted an investment certificate to Chang Yang Holding to develop a paper factory worth $220 million. The factory would produce duplex and kraft paper as well as products for household use, with a total capacity of 413,000 tonnes per year.

The plant's timetable calls for two construction phases - phase one with a capacity of 170,000 tonnes a year scheduled to be completed in August 2017, and phase two with a capacity of 238,000 tonnes a year. The facility's products will be sold domestically and exported to Taiwan and other overseas markets.

Half of the input material for the project would come from waste paper in Vietnam, and the other half would come from imported waste paper. If the waste paper supplies are not sufficient, the investor would use imported paper pulp.

According to the department, after the project was granted an investment certificate, experts raised concerns about the environmental impact of the project. Specifically, the project could pollute the Tien River and its surrounding riverbanks. It would use 7,500 cubic metres of fresh water per hour, while simultaneously ejecting nearly 5,000 cubic metres of wastewater over the same period.

Under pressure from the citizenry, the Tien Giang People's Committee recently held a meeting to gather opinions from scientists. The scientists said that paper is one of the most potentially polluting sectors. Many chemicals are needed to turn waste paper into the paper pulp that is needed for production. The wastewater, if untreated, would be very harmful to people, plants, and animals. The scientists asked the province to carefully evaluate the technology of this company and its wastewater treatment measures before allowing the project to begin.

"Scientists that Tien Giang authorities consulted with all said that Tien Giang should be careful or simply decline this project altogether to prevent a possible crisis, making sure to be consistent with the prime minister's 'determination to not trade off the environment for economic interests'," the department's document stated, adding that they put a lot of weight in the scientists' concerns.

Recently, citing environmental concerns, the government halted a major steel project due to lingering apprehensions brought about by the infamous Formosa steel fiasco. Last week, prime minister Nguyen Xuan Phuc ordered the suspension of the $10.6 billion Ca Na steel project proposed by domestic steel maker Hoa Sen Group in the central province of Ninh Thuan in order to "clarify some issues related to the environment and technology".

The prime minister applauded Ninh Thuan for wanting to grow the province economically, but said preparations for the project have been proceeding too fast. In addition to a report on the domestic steel demand, the prime minister also asked the investor and government agencies to evaluate the environmental impact and review the technology to make sure the project is safe.

In April 2016, fish were found dying en masse along the central coast of Vietnam. Subsequent inspections identified wastewater as the reason behind the deaths. Water released during the test run of the $10.5 billion steel and port complex in the central province of Ha Tinh invested by Hung Nghiep Formosa Ha Tinh Steel Co., Ltd (HFS), a subsidiary of Taiwanese firm Formosa Plastics Corporation seriously damaged the ecology of the surrounding area. The incident harmed the livelihood of fishermen in the region, and negatively affected the budding tourism industry of the central region.

http://www.vir.com.vn/taiwan-paper-plant-red-flagged.html

Mekong Delta farmers begin shrimp harvest 03/May/2017 Intellasia| VNA

Farmers in the Cuu Long (Mekong) Delta region have begun this year's first harvest season of brackish water shrimp, earning strong profits due to high prices and favourable breeding conditions.

The price of 30-piece-per-kilo size black tiger shrimp, which is bought at ponds by traders, is 245,000-250,000 VND (10.6-10.8 USD) a kilo.

Nguyen Duy Bao, who rotates growing shrimp and rice in a rice field in Kien Giang province's An Minh district, said "At this price, shrimp-rice rotating farmers can earn a profit that is equal to 60-70 percent of the production cost of shrimp."

In the early months of this year the weather was not severe as during the same period of last year, so shrimp grew quickly, Bao said.

Farmers in Kien Giang have bred more than 102,000ha of shrimp in the first three months of the year, up 11 percent against the same period last year, according to the province's Department of Agriculture and Rural Development.

In Ca Mau province, which is the country's largest shrimp producer, farmers who began breeding shrimp fries early this year have reaped their harvest.

Nguyen Van Thoa in Ca Mau province's Phu Tan district has sold two ponds of white-legged shrimp after three months of breeding and got a profit of 700 million VND (30,400 USD).

Many farmers here have not bred shrimp this year because they were afraid of severe drought, salt water intrusion and poor harvest as last year, Thoa said.

This year, saline water intrusion in the delta occurred late and the salinity has been low so many farmers are waiting for the proper time to release shrimp fries into ponds for breeding.

At present, the weather is hot, causing a high content of pH (potential of hydrogen) in shrimp ponds or rapid growth of algae in shrimp ponds. This could affect the growth of shrimp.

Quach Thi Thanh Binh, deputy head of the Soc Trang province Aquaculture Sub-department, said farmers should regularly carry out water inspections as well as heed the warning of competent agencies about shrimp diseases in order to choose a proper time to put water into shrimp ponds.

Soc Trang will enter its main period for releasing shrimp fries into ponds for breeding after May when the rainy season officially begins, according to the province's Department of Agriculture and Rural Development.

The province's shrimp breeding areas expect to increase as the price of shrimp is high this year, said the department.

Soc Trang farmers have harvested more than 1,000ha of shrimp with a total yield of 4,153 tonnes so far this year.

Ngo Thanh Linh, general Secretary of the Ca Mau Association of Seafood Exporters and Producers, said most shrimp processors in Ca Mau are facing a shortage of shrimp material.

The supply of raw shrimp can only meet 40-50 percent of the demand of large shrimp processing firms in the province, he said.

In addition, the third quarter of the year is the main shrimp export season so most domestic shrimp processors are buying more raw shrimp to ensure their production.

The domestic supply of raw shrimp will not meet the demand of shrimp processors in the near future and the price of shrimp will remain high, Linh said.

The delta, which accounts for more than 80 percent of the country's shrimp breeding area, has raised more than 536,000ha of shrimp as of the end of last month, up about 53,300ha against the same period last year.

http://en.vietnamplus.vn/mekong-delta-farmers-begin-shrimp-harvest/110963.vnp

Five measures proposed to save pig-farming industry 03/May/2017 Intellasia| DTI News

Minister of Agriculture and Rural Development Nguyen Xuan Cuong has submitted five solutions to prime minister Nguyen Xuan Phuc to help the pig-farming industry in the context of a sharp fall in pork prices.

Over the recent months, the price of live pigs has been on the decrease, down to VND30,000 (US$1.3) per kilo, the lowest for the last 10 years, down from the previous VND40,000 (US$1.7).

According to minister Cuong, the government should assign the Ministry of Agriculture and Rural Development (MARD) to cooperate with the Ministry of Finance as well as localities to instruct enterprises to reduce prices of animal feed and veterinary medicines.

Meanwhile, the Ministry of Foreign Affairs and the Ministry of Industry and Trade need help to seek outlets for pork.

The minister suggested the government instruct banks and credit institutions to charge off and extend the payment term of debts for pig breeders, and people selling animal feed.

He also proposed domestic companies such as Vissan, Hapro Hanoi and Saigon Coop to increase the purchase of meat from farmers.

The minister recommended the halt of the temporary import and re-export of meat products to protect domestic products of the same kind.

In the long run, MARD will apply more modern and advanced technologies to slash production costs, improve productivity and seek potential export markets for domestic pork meat. \

The ministry has planned to ask localities nationwide to restrict the licences issued for new animal-feed processing facilities as current productivity is 31 million tonnes annually, far more than the target of 25 million tonnes by 2025.

The ministry will also reduce livestock from the current 4.2 million sows to three million by 2019. Localities should not increase their quantity of pigs especially sows, Cuong said, calling them to raise

pigs that generate high yield or special varieties popular with certain groups of consumers. http://english.vov.vn/economy/five-measures-proposed-to-save-pigfarming-industry-348723.vov

Vingroup puts into operation hi-end golf course in Hai Phong 03/May/2017 Intellasia| VNA

A high-end 36-hole golf course, invested by Vingroup was put into operation in Vu Yen island, the northern city of Hai Phong on April 29.

The Vinpearl Golf Hai Phong is the first island-based golf course in the north, and the biggest among golf courses on islands in the country.

It is one of the Vingroup's 15 facilities launched the same day across 11 provinces and cities, celebrating the 42nd anniversary of the National Reunification Day (April 30) and the International Labour Day (May 1).

The latest facilities raised the group's capacity to nearly 11,000 rooms, three golf courses, and five entertainment parks across the nation.

http://en.vietnamplus.vn/vingroup-puts-into-operation-hiend-golf-course-in-hai-phong/111008.vnp

Authorities discuss plan to make Saigon a city that never sleeps 03/May/2017 Intellasia| Tuoitre News

Businesses already allowed to stay open after midnight should not be disturbed by unnecessary inspections, administrators said at a meeting to discuss solutions to make HCM City more appealing to night-owl tourists.

Tran Vinh Tuyen, deputy chair of the HCM City administration, chaired a meeting with the municipal tourism and police departments on Friday, discussing the allowable time limits for operations of service establishments citywide.

According to a government's decree, bars at hotels from three-star and above, and discotheques at four-star lodging facilities and higher are allowed to operate until 2:00 am.

However, venues eligible for the after-midnight operations in HCM City have been inspected and examined by police and other agencies on a regular basis, Bui Ta Hoang Vu, director of the tourism department, complained at the meeting.

"Despite this regulation, businesses have complained that they would be inspected whenever they stayed open through the night," Vu said.

A representative from the HCM City police department defended that they had never inspected any hotels from three-star for the after-midnight operations.

"The inspections have mostly been launched into complicated areas suspected of hosting social evil activities," the police representative said.

Deputy chair Tuyen said relevant agencies should follow the government's decree and allow eligible businesses to open after midnight.

"A facility must only be inspected if there are ample grounds for the check or complaints about its operation, not because it opens after twelve," the city's leader pressed.

Tuyen added that it is unreasonable to check a violation-free bar, and doing so is a sign of harassing businesses.

"Any service provider hit by such harassment can report to the municipal administration," he said. "Should the inspectors fail to provide proper grounds for their checkups, they will be sanctioned by the

city's administration." More 'sleepless areas' Vu, the city's tourism chief, said bars and discotheques opening after twelve are not enough to fascinate

international tourists, who tend to stay up late due to time zone changes. Foreign tourists want to have some fun and engage in entertainment and cuisine when most locals are

asleep, Vu said, suggesting that some tourist-packed areas in the city be allowed to operate through midnight.

For instance, establishments on Bui Vien, Pham Ngu Lao and De Tham Streets, known as the 'backpackers' areas,' should be allowed to service tourists until 2:00 am, according to the tourism chief.

Vu added that other places, such as Nguyen Tri Phuong Street in District 5 and Thanh Thai Street in District 10, can seek specific permission from the municipal administration for their after-midnight operations.

The police department advised that its tourism counterpart's proposal should be carefully vetted as some businesses can take advantage of this to open through the night.

In response, Tuyen said local authorities must file their proposal to the city's administration if they want to have a 'sleepless area' in their locale.

"Authorities must also seek feedback from residents living around that area, not only the businesses, before submitting the proposal," Tuyen noted.

"We will consider proposals that are made to better serve foreign tourists." http://tuoitrenews.vn/business/40747/authorities-discuss-plan-to-make-saigon-a-city-that-never-sleeps

Promoting Vietnam's green brand names 03/May/2017 Intellasia| VOV5

To catch up with the trend of sustainable development, managers and businesses have to develop national brand names of green products.

A survey by Nielson Vietnam shows that 86 percent of Vietnamese are willing to pay higher prices for environmentally and social friendly products and green and clean brand names. Consumers care more about information publication and will boycott products which are harmful to the environment and health. Producers have to adjust their develop strategy toward green production, friendly materials, energy saving, and reasonable prices.

Vu Tuyet Nhung of the Association of Vietnam Organic Agriculture said "Organic farming is a new trend and there has not yet been sufficient policies and instruction to help farmers apply these new methods. The Association has consulted international organisations in countries that have advanced organic agriculture. We intend to help farmers produce and register green products."

An eco-labeling programme called Vietnam Green Label has been implemented over the past decade to promote the production and consumption of environmentally-friendly products and the sustainable use of natural resources. The application for Vietnam Green Label designation is simple and free. Businesses with Vietnam Green Labels are committed to social responsibility, which boosts their competitiveness and profits.

Do Kim Lang, deputy director of the Trade Promotion Department of the Ministry of Industry and Trade, said the Ministry will work with the Ministry of Natural Resources and Environment to help business develop green brand names.

"We'll add eco-factors to the criteria list of the National Trademark Programme. Businesses will have to meet the tougher conditions of the national competitive strategy", said Lang.

The state has to create conditions that promote green trademarks, while managing and monitoring to ensure transparency and consumers' rights.

http://english.vov.vn/economy/promoting-vietnams-green-brand-names-348138.vov

Long Thanh Golf Course maintains leading position in Vietnam 03/May/2017 Intellasia| VIR

The various awards that Long Thanh Golf Course has received over the years are testaments to the course's quality.

Long Thanh Golf Course is located in the southern economic triangle, about 40 minutes' drive from HCM City centre.

It was designed by Ron Fream the founder of Golfplan-Fream & Dale Golf Course Architecture, with more than 35- year experience in designing, building, and maintaining golf courses throughout the world.

Of the over 350 hectares in land-scape area, the golf course has around 100ha for high lawn hills. Two thirds of its circumference is surrounded by branches of the Dong Nai River.

Hence, it has very cool, fresh climate, with poetic natural scenery consisting of rows of palms, artificial pools and lakes, and tumbling falls.

The grass for the course is Paspalum grass, which not only helps golfers make exact shots but also contributes to making them feel more relaxed.

At present, Long Thanh Golf Course is being operated with 18 rounds on Hilly Course, and 18 rounds on Lake Course, both delicately designed to bring attractive challenges to professional golfers and beginner players as well. The lighting system meets international standards and can serve golfers at night.

The experienced staff are very courteous and well trained in golf rules, foreign languages and services, by an expert from the British Professional Golf Association.

Long Thanh Golf Course is serving more than 1,000 members, more than 60 percent of whom are from Europe, Japan, Republic of Korea, Singapore, China and Thailand.

Most recently Long Thanh Golf Investment and Trading JSC, operator of the golf course, has received the Biggest Charity Fundraising Golf Award in May 2016 from the Asia Book of Records.

In 2015, World Records University conferred on Le Van Kiem chair of Long Thanh Golf Investment and Trading JSC the honorary degree of Doctorate in record Breaking Hanoris causa for: "The Creator and Initiator of the largest Charitable Golf Tournament".

In 2014 Long Thanh Golf Investment and Trading JSC received the Global Ethics Awards from the Vietnam Federation of UNESCO Associations.

http://english.vov.vn/economy/long-thanh-golf-course-maintains-leading-position-in-vietnam-348683.vov

Vietnamese high-quality goods fair opens in city 03/May/2017 Intellasia| The Saigon Times

The 2017 Vietnamese high-quality goods fair kicked off on April 27 at the Phu Tho indoor competition house in HCM City, featuring 500 booths of nearly 200 domestic enterprises.

The week-long fair, on until May 2, is showcasing high-quality products, including home appliances, fashion items and food.

The event has a brand-new area called Xanh Tu Te which is dedicated to farms, cooperatives and individuals from various localities across the country to introduce clean and organic farm produce.

http://english.thesaigontimes.vn/53710/Vietnamese-high-quality-goods-fair-opens-in-city.html

Hoa Binh businesses look for opportunities in Australia 03/May/2017 Intellasia| VNA

A business delegation of the northern province of Hoa Binh has visited Melbourne city in Australia's Victoria State to explore cooperation and investment opportunities.

The delegation, led by Nguyen Cao Son, President of the provincial Association of Enterprises, held a meeting with Tran Ba Phuc, President of the Vietnamese Business Association in Australia (VBAA) in Melbourne, and over 20 members of the Vietnamese young entrepreneurs club in Australia.

During the meeting, Son said Hoa Binh-based firms hope to set up new relations and find new business partners in Melbourne during the visit.

He also introduced the province's advantages and investment potential for Australia-based enterprises. Son called on the VBAA to consider partnering up with enterprises in Hoa Binh in health care, education,

construction, and agricultural production, and help with the export of Hoa Binh's key products to Australia. Representatives from VBAA briefed the delegation on the Australian market, good demands and import

taxes. They also shared with the guests experience in doing business in Australia. The VBAA President appreciated the potential, advantages and incentives offered by Hoa Binh, pledging

that he will do his utmost to promote the province's potential in Melbourne in particular, and Australia in general.

Phuc also said he hopes more business delegations from Vietnam will come to explore potential in trading agricultural products between Australia and Vietnam.

http://en.vietnamplus.vn/hoa-binh-businesses-look-for-opportunities-in-australia/111006.vnp

Forum discusses developing agricultural products' labels, brands 03/May/2017 Intellasia| VNA

Developing chains of agricultural products in tandem with building labels and brand names was the focus of discussion at a forum in the central province of Quang Nam on April 28.

The event was jointly organised by the National Centre for Agriculture Encouragement and the Quang Nam provincial Department of Agriculture and Rural Development.

According to the Department of Processing and Trade of Agricultural Products under the Ministry of Agriculture and Rural Development, Vietnam is among leading agricultural producers in the world.

The agricultural sector has eight products earning over one billion USD from exports, namely coffee, rubber, rice, aquatic products, cashew nuts, peppers, fruits and vegetables, wood and wood products.

Numerous agricultural products have been available at home and abroad with labels and geographical indicators.

However, 90 percent of Vietnam's agricultural exports are crude products, resulting in lower values, said Vo Thi Ly, deputy director of the Authority.

Besides, over 80 percent of the nation's agricultural products are yet to have brands, logos, labels. Most of them are shipped abroad under foreign brand names, Ly added, stressing that it is a major disadvantage for domestic farm produce.

Acting director of the National Centre for Agriculture Encouragement Tran Van Khoi pointed to the trend in recent years towards the development of agricultural production chains based on connection among farmers, cooperatives and enterprises, and the formation of large zones specialised in key crops.

However, Vietnam's agricultural production overall remains small-scaled, limiting the sector's competitive capacity, according to Khai.

He noted that while the free trade agreements Vietnam have signed help expand agricultural export markets, they also bring increasing competition.

Khai underlined the strategic need for promoting and increasing competitiveness for Vietnamese agricultural products, including developing brands and securing their foothold on both the domestic and overseas markets.

Participants pointed to difficulties hindering the building of brand names for agricultural products, such as the lack of a master plan to guide localities, enterprises; changing regulation and poor market research.

The Ministry of Agriculture and Rural Development aims to develop a programme on developing brands for key agricultural products by 2020, with immediate priority given to mangoes, dragon fruits, tea, coffee and tra fish.

http://en.vietnamplus.vn/forum-discusses-developing-agricultural-products-labels-brands/110990.vnp

Vinh Long expo on industry, trade kicks off 03/May/2017 Intellasia| VNS

The 2017 Vinh Long expo on industry and trade opened on Sunday and will last until May 5 in the southern province of Vinh Long, attracting 92 enterprises from inside and outside the province.

The exhibition has 211 booths, displaying consumer goods, interior decoration items, handicrafts and garments, as well as typical rural industrial products, agricultural products and specialties of provinces and cities inside and outside the Mekong Delta. Director of Vinh Long Department of Industry and Trade Pham Tu Phuong said the fair played an important role in enhancing trade promotion, contributing to boosting the socio-economic development of the locality.

It also served as a platform for firms to meet and exchange experiences in technology transfer to improve product quality and design, as well as promote market development in the trend of integration, Phuong said.

In addition, the fair was a place for enterprises, manufacturers and consumers to exchange information on goods and market demands, thereby enabling them to orient their business strategies to meet the needs and tastes of consumers, he said.

The fair also creates favourable conditions for consumers to access and use domestically-produced goods with food safety and reasonable prices, at the same time promoting the campaign "Vietnamese people use Vietnamese goods."

Further, it includes exhibitions showcasing the economic, cultural, social, security and defence achievements of Vinh Long and its potential and strengths to attract investment.

http://bizhub.vn/news/vinh-long-expo-on-industry-trade-kicks-off_285845.html

HCM City to host Top Thai Brands fair 03/May/2017 Intellasia| VNA

Around 300 firms will present Thailand's internationally recognised brands to Vietnamese consumers at Top Thai Brands 2017, a trade fair to be organised in HCM City from May 11 to 14.

The fair, jointly held by the Thai commerce ministry's department of international trade promotion and the Thai Consulate-General in HCM City, aims to boost the connection between enterprises in both countries, facilitating their search for agents, distributors and franchisees.

Through the fair, both nations hope to enhance trade and investment cooperation, while providing a platform for businesses to widen their networks and further develop strategic partnerships.

Top Thai Brands 2017 offers opportunities for industries such as food and beverages, home appliances, automobile and motor spare parts, cosmetics and healthcare, as well as service sectors such as education, tourism and business franchising.

http://en.vietnamplus.vn/hcm-city-to-host-top-thai-brands-fair/111043.vnp

Workshop on intellectual property rights 03/May/2017 Intellasia| VNS

The rapid development of technology, the Internet and social networks has resulted in significant development of e-commerce in Vietnam, however, it has brought challenges for many enterprises, especially in intellectual property protection.

It was necessary to raise the awareness of community about the protection of intellectual property rights in general and the e-commerce environment in particular, Tran Van Tung, deputy minister of Science and Technology, told a workshop on intellectual property enforcement in e-commerce in Hanoi on Wednesday.

"The government, the Ministry of Science and Technology and other ministries and sectors have been working hard to prevent intellectual property infringement as well as infringements of intellectual property rights in the digital environment, but this work faces many difficulties," Tung said.

Nguyen Nhu Quynh, deputy chief inspector the Ministry of Science and Technology, said enterprises were not fully aware of the protection of intellectual property rights in e-commerce.

She pointed out difficulties including enterprises not being aware of the problem, difficulties in identifying violating organisations or individuals, difficulties in collecting evidence and incomplete legislation.

Le Ngọc Lam, deputy director of National Office of Intellectual Property of Vietnam, said e-commerce had grown vigorously. "Due to the almost infinite author's privilege and the scope on the Internet, along with the development of e-commerce, online infringement has become a major challenge."

E-commerce was developing very strongly in Vietnam, however, the sector had many shortcomings because it still lacks qualified staff, he said.

In addition, co-ordination among agencies caused difficulties and obstacles, he added. "Functional units need to have training courses on e-commerce, strengthening the co-ordination activities between enforcement forces in the prevention and control of intellectual property infringement."

As the responsible agency for intellectual property issues, the National Office of Intellectual Property of Vietnam would add sanctions for the electronic transaction environment, while co-ordinating with authorities to resolve domain name disputes and in identifying related issues to intellectual property infringement cases, said Lam, the representative of the office.

http://www.vir.com.vn/workshop-on-intellectual-property-rights.htm

Second Proof of Concept competition kicks off 03/May/2017 Intellasia| VNA

Climate change mitigation is the key topic of the second Proof of Concept (PoC) competition recently launched by the Vietnam Climate Innovation Centre (VCIC).

The contest, sponsored by the World Bank (WB) and the Ministry of Science and Technology, was organised following the success of the first event which saw 18 businesses winning awards of innovation start-ups fighting against climate change in 2016.

Speaking at the launching ceremony on April 28, Pham Duc Nghiem, VCIC deputy director highlighted that young enterprises and start-ups play a crucial role in mitigating climate change's impacts on the environment by creating environmental-friendly, clean products, services and technologies and nudging them closer to people.

Innovation products, services and business models joining the second PoC should be in following categories: effective energy, sustainable agriculture, water management and purification, renewable energy technologies, information and technology and other technologies related to climate change.

Through the competition, start-ups and young businesses will receive international training models developed by experts from the WB and the US's leading incubator centres as well as call funds amounting to $75,000 for the development, deployment and extension of a product or service.

http://english.vov.vn/economy/second-proof-of-concept-competition-kicks-off-348745.vov

Government Inspectorate urged to probe giant pulp project 03/May/2017 Intellasia| DTI News

Deputy prime minister Truong Hoa Binh has urged the government Inspectorate to investigate a giant pulp project in Nghe An Province which has been left idle for years.

Tan Hong pulp plant at Con Cuong District has a total investment of VND1.25 trillion (USD545.4 million). The plant's production lines were imported from China and would have an annual capacity of 45,000 tonnes.

The planning for the plant's material zone was approved in 2009 and was built in 2010.

In the 2011-2012 period, due to the production and business difficulties, the plant stopped buying material from local people.

After being left idle for seven years, the Nghe An Department of Planning and Investment has asked the provincial people's committee to stop the operation of the plant.

Deputy prime minister Truong Hoa Binh has called on the government Inspectorate to probe the case to report the government before May 25.

http://english.vov.vn/economy/government-inspectorate-urged-to-probe-giant-pulp-project-348649.vov

Vietnam third most expensive country to buy Starbucks: survey 03/May/2017 Intellasia| Tuoitre News

Vietnam is among the top three most expensive countries to sip a Starbucks, compared to the US coffeehouse chain's home country, a survey finds.

Financial research group ValuePenguin studied the price of a small, or 'tall' as Starbucks names it, cup of latte in 39 countries to pinpoint where the drink is the biggest extravagance.

To evaluate the information, data gathered in the local currency was converted to a dollar value reflective of the purchasing power within each of the countries covered, according to the company.

The study eventually found that Vietnam is among four Southeast Asian countries where a Starbucks latte costs three times more than in the US.

"Southeast Asia is the standout region - where buying a small latte would be akin to paying $4.70-8.20 in the US, reflecting how Starbucks lattes are marketed as a luxurious indulgence here," the US research firm said in an email on April 28.

The average cost of a tall latte in the U.S is $2.75, which ValuePenguin says is "pricier than a regular cup of coffee... but less costly than a meal or an alcoholic drink when ordered out."

In all 39 countries analysed by ValuePenguin, the relative cost of a tall latte is higher than in the US, and the variation among the markets is significant.

In some countries, a latte hits the wallet only a little harder than in the US, particularly in the froth-friendly nations of Australia, the UK, New Zealand, and Canada, where Starbucks represents something less than a big indulgence, the company said in a report.

But stepping up to the Starbucks counter in certain other countries can turn a simple coffee into a far bigger extravagance.

"Nothing matches the luxe indulgence of ordering a latte in Russia, where the tab would feel like spending $12 for the drink here at home," the report reads.

"In the other pricier countries for Starbucks, including India, Indonesia, and Thailand, the sticker shock would be more akin to spending $7 or so at home."

In Vietnam a latte fetches the purchasing equivalent of $8.18 in the US, falling only behind Indonesia and Russia.

"These seeming splurges underline how inexpensive many other goods and services are in those countries," the research firm commented.

"With bread, milk, or other staples less costly there than in the US, Starbucks seems like a big spend indeed.

"The figures may also explain why in many countries Starbucks is an exotic, status-laden chain--an embodiment, perhaps, of American affluence and indulgence."

ValuePenguin said the study was conducted based on the most recent market data from 2016 gathered by Euromonitor International, a leading global provider of market research.

http://english.vov.vn/economy/vietnam-third-most-expensive-country-to-buy-starbucks-survey-348600.vov

Vietnam to import inexpensive US hepatitis drugs 03/May/2017 Intellasia| AFP

Vietnamese citizens, especially the underprivileged, will have access to inexpensive drugs produced by US biopharmaceutical company Gilead Sciences to treat hepatitis C infections.

The cost of the drug will be just one per cent of the price of the company's brand-name drugs sold in the US to treat the same infections.

The good news comes after the Vietnamese Ministry of Health and Gilead Sciences signed an agreement on Wednesday under which the US pharmaceutical company would provide enough of its brand-name drugs such as Sovaldi, Harvoni and Epclusa, to help Vietnam fight the hepatitis C virus.

The company will also assist Vietnamese pharmaceutical enterprises in producing generic drugs to treat hepatitis C in the future.

Gilead Sciences plans to provide the health ministry with a list of foreign pharmaceutical companies it has authorised to supply materials for manufacturing drugs to treat hepatitis C.

Trương Quốc Cường, deputy minister of Health and Head of Drug Administration of Vietnam, told Dan tri online newspaper that the ministry was considering allowing domestic enterprises to import materials to produce hepatitis C generic drugs soon.

The ministry would, without delay, issue a distribution licence under the fast-track licensing regime for hepatitis C drugs produced by Gilead Sciences, Cường said.

It would submit a request to the government to add these Gilead Sciences drugs to the list of drugs imported under the government plan, he added.

Gilead Sciences is a research-based biopharmaceutical company that invents, develops and commercialises innovative medicines, especially in areas where medical needs are unmet. Its product portfolio and its pipeline of investigational drugs include medicines for treating HIV/Aids, liver diseases, cancer, inflammatory and respiratory diseases, and cardiovascular conditions.

It is estimated that Vietnam has around four million people with hepatitis C infections. Representative of a pharmaceutical company who declined to be named said the agreement was believed

to be very meaningful to people contracting hepatitis C in Vietnam. It would help cut the cost of treating hepatitis C virus by a significant amount, she said. With the same drugs manufactured by the company, if patients were treated in Vietnam, the treatment

cost would be dozens of times cheaper than in foreign countries, she added. "And if the health ministry adds the drugs to the list of medicines paid by health insurance, poor patients

in our country will benefit," she said. http://www.dtinews.vn/en/news/018/50647/vietnam-to-import-inexpensive-us-hepatitis-drugs.html

Vietnam needs IT engineers to meet 4.0 industrial revolution 03/May/2017 Intellasia| Vietnamnet

In Vietnam, IT university graduates are plentiful, but the number of IT engineers qualified to meet requirements in the fourth industrial revolution is insufficient to meet demand.

A report of Navigos, a job consultancy firm, showed that the number of job openings offered in the IT sector in Vietnam increased from 9,000 in 2014 to 15,000 in 2016. In 2016, IT was among the top five industries with the highest recruitment demand.

Meanwhile, the demand is predicted to increase even more sharply in the time to come when Vietnam enters the 4.0 industrial revolution era.

However, the Ministry of Industry and Trade, in its latest report, pointed out that while the worker supply in the IT sector is abundant, the number of workers qualified enough to satisfy requirements in their jobs is not high.

One of the important criteria for assessing an applicant's qualification and knowledge is the professional certificate.

Surveys have found that certificates on project management skills, Agile project management, Cisco, Microsoft and Amazon Web Service are the most highly appreciated.

Up to 54 percent of employers are willing to pay higher salaries to the candidates who have these certificates.

According to Nguyen Thi Thanh Huong from Navigos Search Hanoi, recruitment demand is especially high for developers with Java, SQL, CSS and JavaScript languages. The demand for JavaScrip developers has increased significantly thanks to the mushrooming of online service firms.

Analysts said in 2017, technological trends in the world will have an impact on the Vietnamese IT market, including cloud computing, JavaScript, network security, Big Data, Internet of Things and Docker.

Regarding the pay for IT engineers, VietnamWorks, in its report released in March, showed developers in Vietnam can earn $1,300-2,000 if they have updated knowledge about the most advanced technologies.

The high pay is attributed to the current recruitment demand which is expected to rise. The report showed the results of the survey conducted on 2,400 applicants and 70 recruiters in the IT

sector in Vietnam.

Fifteen years ago, the demand for IT personnel was mostly for the software outsourcing sector. However, the demand has shifted to the service sector with many software development firms having built their own offices and software development centers in Vietnam.

HCM City remains the country's largest technology centre which had 53 percent of total job openings, while Hanoi had 43 percent in 2016.

According to MOLISA, Vietnam needs 80,000-100,000 workers for the IT sector every year. Meanwhile, there are 30,000 university graduates every year.

"I can introduce job opportunities with pay of $2,500. However, there are not suitable candidates in Vietnam," Huong from Navigos Search Hanoi.

http://www.vir.com.vn/vietnam-needs-it-engineers-to-meet-40-industrial-revolution.html

Kayak service to resume in Halong Bay 03/May/2017 Intellasia| The Saigon Times

Visitors to Halong Bay can continue kayaking from May 1, weeks after the service was suspended by local government.

Many travel agencies in the province have prepared to resume kayak rental service on the occasion of the upcoming holiday after Quang Ninh Province lifted the ban.

Halong Bay currently has over 1,400 kayaks, with more than 300 of them operating in some areas of the bay and about 1,100 units carried on tour boats.

Halong City announced on March 29 that kayak rental service on Halong Bay would be halted from April 1. Local authorities said the number of kayaks in the bay had been increasing rapidly while some service providers had not been approved to provide the service. Some providers even overcharged tourists, putting the reputation of Halong at stake.

However, the ban faced stiff opposition from tourism firms because kayaking contributes to the richness of tourism products in Halong Bay. The Ministry of Culture, Sports and Tourism later asked Quang Ninh Province to reinstate this service.

According to a report on socio-economic performance in the first four months of 2017, Quang Ninh saw some 4.6 million tourists coming, up 12 percent over the same period last year, including nearly 1.7 million international visitors, up 9 percent. Tourism revenue is estimated at over VND5,900 billion (US$260 million), up 20 percent year-on-year.

http://english.thesaigontimes.vn/53690/Kayak-service-to-resume-in-Halong-Bay.html

New water park opens in Quang Ninh Province 03/May/2017 Intellasia| VOV

Families are assured of a splashing time at the Typhoon Water Park, offering 12 attractions, including a pool with manmade waves, that opens tomorrow (April 29) at the Sun World Halong Complex in the province of Quang Ninh.

Park manager Parques Reunidos said the park has everything for everyone play areas for children and relaxing spots for adults.

He said one of the interesting attractions is the 5-foot deep pool with artificial waves. We built it in such a way that visitors will feel like they are at the beach. The artificial waves switch

every 15 minutes, so visitors will experience different waves, he noted. http://english.vov.vn/economy/new-water-park-opens-in-quang-ninh-province-348580.vov

HCM City opens jewellery streets 03/May/2017 Intellasia| The Saigon Times

HCM City's District 5 authorities on April 27 introduced Nhieu Tam and Nghia Thuc as the first jewellery streets in the city, which will serve as the business quarter for jewellery traders and goldsmiths, and as a tourist attraction.

Some households on Nhieu Tam Street have been making and selling silver and gold jewels and gems since the late 1980s. The area now is home to 55 businesses operating in jewellery and related items. Their products are supplied to many jewellery stores nationwide.

District 5 expected that the streets will develop local economy and tourism. Each store will be equipped with a logo common to the jewellery street brand to attract tourists' attention. The district will also establish four stops that are also business venues dealing in gold, jewellery, jewellery molds and related tools.

Truong Thi Minh Kieu, vice chairwoman of District 5, hoped the streets would become popular among residents and tourists.

Gold traders expected to attain higher revenue thanks to tourism development in the area. Nguyen Thi Bach Phung, Kim Nguyen I gold shop owner, said she and other business households in the

area are excited about the establishment of the jewellery streets. Pham Van Tam, owner of Kim Hao gold shop, said the shop was planning to send its staff to English and

Chinese courses for serving foreign customers and add more services to satisfy visitors' demand. http://english.thesaigontimes.vn/53687/HCM City-opens-jewellery-streets.html

Vietnam, Thailand Indonesia's competitors in FDI attraction 04/May/2017 Intellasia| VNA

Vietnam and Thailand have become Indonesia's competitors in attracting foreign direct investment (FDI) into the Southeast Asian region, Indonesian vice President Jusuf Kalla said on May 2.

Based on the data released by the World Bank, Indonesia was placed in the 91st position in the "Ease of Doing Business" Ranking, while Vietnam stood at the 82nd position and Thailand, at 46.

Singapore was ranked first in the Asean region and in the Asia-Pacific region. The vice President stated that Indonesia has progressed in improving its investment environment, but

other countries in the region can provide better ease of doing business. Therefore, the government will continue promoting deregulation in order to attract more FDI into

Indonesia and increase its competitiveness among its neighbouring countries, he added. Kalla also highlighted the global economic slowdown, especially in China, that has affected the

investment climate in Indonesia. According to the Capital Investment Coordinating Board in 2016, China was the third-largest investor in

Indonesia, with a total of $2.67 billion in capital, while the first position was occupied by Singapore, with $9.18 billion, and Japan stood second, with $5.4 billion.

http://english.vov.vn/economy/vietnam-thailand-indonesias-competitors-in-fdi-attraction-348808.vov

Japanese manufacturers view Vietnam as key destination 04/May/2017 Intellasia| DTI News

Japanese manufacturers regard Southeast Asia as the most important region for their business but are wary about labour shortages and pollution, according to a recent survey by Japan's Mizuho Research Institute revealed to Nikkei.

The survey was conducted in February on Japanese manufacturers capitalised at 10 million Japanese Yen ($90,000) or more. It received valid responses from 1,121 companies.

Thanks to their growing markets and lower production costs, three countries in Asean made the Top 3, with Thailand selected by 57.8 per cent of respondents, Vietnam by 50.2 per cent, and Indonesia by 43.9 per cent.

The survey also revealed concerns among Japanese manufacturers about investing in the three countries. Regarding Vietnam, 25 per cent of respondents said the problem of environmental pollution, both air and

water, would worsen. Indonesia also stood out in this area, with 27.8 per cent of respondents saying environmental problems will worsen in the near future.

As for Thailand, 21.4 per cent of respondents said the supply of blue-collar workers would worsen in the next two to three years. Meanwhile, 17.3 per cent said the supply of management-level workers would shrink. Both figures exceeded the ratios of respondents who expected the labour-supply situation to improve.

Many manufacturers looking for lower-cost alternatives to China have also set up production facilities in Southeast Asia. This is sometimes referred to as the "China plus one" strategy.

However, the survey suggests that Japanese companies are turning their attention back to China. When asked to name a candidate destination in which to relocate their current Chinese operations, 21.1 per cent named "somewhere in China (that is more cost-effective than the current location)". This is a big jump from the previous survey's 9.7 per cent and likely reflects the bottoming out of the Chinese economic slowdown.

A recovering China puts pressure on Southeast Asian countries keen for more investment to tackle labour, environmental, and other issues that threaten to turn off foreign companies.

http://www.dtinews.vn/en/news/018/50705/-japanese-manufacturers-view-vietnam-as-key-destination.html

New rules could stymie education FDI 04/May/2017 Intellasia| VNS

Experts have objected to several provisions of a draft decree on foreign investment in education saying they need further clarification and revision.

They expressed their opinions at a consultative workshop held last week on a draft decree prepared by the Ministry of Education and Training (MoET).

"The draft is set to replace Decree 73 issued in 2012, and change procedures and investment conditions to boost competitiveness and help foreign investors enter the Vietnamese education sector," said Nguyen Xuan Vang, head of MoET's International Cooperation Department.

According to Foreign Investment Agency under the Ministry of Planning and Investment, as of March 20, 2017, Vietnam had attracted 320 foreign direct investment (FDI) projects in education with a total investment of $ 684.3 million, accounting for 1.3 per cent of the total number of FDI projects and 0.2 per cent of FDI capital.

Experts said at the workshop that the provision that investors need a secured investment fund of at least VND 1 trillion (US$ 44.5 million) to establish a foreign higher education institution in Vietnam could prove problematic.

Vo Thanh Binh of the Association of Universities and Colleges Vietnam said that Decree 73 required investors to prepare a minimum investment capital of VND300 billion, so the new decree would raise this by more than three times to VND1 trillion.

"What is the increase based on?" Binh asked, implying that the increase could be a barrier to investment in education projects.

Nguyen Kim Dung, head of Legal and Governance Relations of British University Vietnam, said the increase in capital investment was reasonable, but it would be unreasonable to require this capital to be in cash.

"When applying for investment licences and establishing schools, investors can prove their ability through auditing reports that list their equity and assets, as well as through loan agreement contracts between bank(s) and the investors."

"So, it is not reasonable to treat just cash as capital investment," Dung said. A representative from the Asean College in Hung Yen Province said that the investment of VND1 trillion

could be enough to develop economic or foreign language schools, but would be insufficient for an institution teaching technology.

"If the increase is made without a firm foundation, the decree will require several guiding documents, which will cause difficulties for investors," he said.

Vang responded that the "secured investment fund for foreign higher education school project is the same as that of Vietnamese schools."

He said that the fund would not cause difficulties for foreign investors, noting that some foreign universities in Vietnam, like Viet Duc University or Viet Nhat University had investments of $100 million-200 million.

Compulsory content Ho Thuy Ngoc, Head of International Training Faculty of the Foreign Trade University, said that under

the draft decree, students have to complete "compulsory content" determined by minister of Education and Training before attending foreign programmes.

"Our foreign partners will not agree to add Vietnam's complulsory content to their training programmes. They grant students certificates and they want the students to learn authentic programme," she said.

"The additional content will also be a barrier for students and education institutions when they try to access fully-imported training programmes," Ngoc said.

Duong Thi Hoai Son of the Sakura Montessori School said she disagreed with the draft decree provision that requires teachers at nursery schools to be college graduates.

She said this condition was not necessary because nursery teachers taking care of babies aged 12 months to 18 months did not need higher education qualifications.

"Enthusiasm and love for children are more important," she said. http://bizhub.vn/news/new-rules-could-stymie-education-fdi_285855.html

Solutions for 12 loss-making projects determined 04/May/2017 Intellasia| The Saigon Times

Of the 12 projects incurring a loss of trillions of dong under the Ministry of Industry and Trade, the government and the ministry have decided to auction one project and offered many different options for the remainder.

The 12 slow-moving, loss-making and inefficient projects managed by the trade ministry include four fertiliser plants, three bio-fuel production projects, two steel production projects, Dinh Vu polyester fiber factory, Dung Quat Shipbuilding Industry Company Limited (DQS), and Phuong Nam paper pulp mill.

Currently, six active projects are running at a loss, three are being put on hold because of rising costs and lack of operating capital, and the other three have stopped production due to exorbitant costs and big losses.

The total initial investment of these 12 projects was some VND43.67 trillion, which was later adjusted up to VND63.61 trillion (up 45.65%), or roughly $2.7 billion at the current forex rate. Of this sum, VND14.35 trillion, or 22.56%, was their equity, while loans made up 74.6%, about VND47.45 trillion, and the remaining 2.84 percent came from other sources.

The accumulated losses of the 10 projects that are operational or have stopped production as of end-2016 had totalled over VND16.12 trillion, with total liabilities of more than VND55.06 trillion

The total disbursed capital of the three incomplete projects had been around VND8.61 trillion, of the estimated VND13.06 trillion.

Since late 2016, the government and related ministries have issued 120 documents to deal with the shortcomings of these 12 projects. The proposals for treatment have been put forward to the prime minister for consideration and submission to the Politburo. For the four fertiliser plants (Ninh Binh, Ha Bac, DAP 1 - Hai Phong, and DAP 2 - Lao Cai), their difficulties and obstacles should continue to be handled under the direction of the government Steering Committee, with solutions related to corporate governance to improve their efficiency of production and business. After successful operations are achieved, the State capital in these projects will be put up for sale or withdrawn (after 2018).

For Quang Ngai bio-fuel production plant, it is proposed that PetroVietnam Central Biofuels Joint Stock Company (BSR-BF) transfer or divest capital from this project. However, before that, it is a must to calculate the factory restart, and deal with all problems with the EPC contractor in the wastewater treatment component in order to complete the final settlement.

For the two other bio-fuel projects, Phu Tho and Binh Phuoc, their options are also capital transfer or divestment.

For Phase 2 of the expansion of Thai Nguyen Iron and Steel Complex, it is necessary to pull out State capital from TISCO and restructure the company.

For Quy Xa iron ore mining and quarrying project and Lao Cai iron and steel plant, the treatment plan is to solve problems and obstacles to further develop and improve the efficiency of their production and business, accompanied by negotiations to amend the joint venture contract and their rules. On that basis, their investment components, production and business should be further perfected to better the efficiency of the whole projects.

Dinh Vu polyester fiber factory shall undergo restructuring, equitisation and divestment via cooperation with foreign partners to produce PSF fibers for two years, followed by divestment. Another option is the company should change hands.

For DQS, the top choice is to let the company go bust in accordance with the law. However, the plan for ownership conversion through valuation, auction of assets and liabilities may be considered, if investors meeting the requirements of this plan are found.

For Phuong Nam paper pulp mill, deputy prime minister Vuong Dinh Hue in September 2016 approved in principle for sale of all its fixed assets and inventories. At present, the Ministry of Industry and Trade has determined the starting price and completed the auction plan, and is performing the necessary legal procedures for a public auction.

http://english.thesaigontimes.vn/53718/Solutions-for-12-loss-making-projects-determined.html

New strategy to develop national organic agriculture 04/May/2017 Intellasia| VOV

Planting areas for organic agriculture will be expanded, while trade and consumption of organic products will be promoted, according to the new strategy to develop the nation's organic agriculture.

The Cabinet on 11 April 2017 approved the National Organic Agriculture Development Strategy, 2017-2021.

The five-year strategy seeks to increase organic agricultural productivity and develop Thailand's organic products, so that they will be recognised more widely among both local and international consumers.

Another objective of the National Organic Agriculture Development Strategy is to turn Thailand into an international hub for organic agricultural products. The strategy also intends to develop innovation of organic agriculture to international standards.

Four strategies will be implemented during the five-year period. The first strategy seeks to promote research and disseminate knowledge and innovation of organic agriculture. The second strategy focuses on developing organic agriculture production and services.

In the third strategy, the marketing and services of organic products will be developed. This strategy also involves the certification of Thailand's organic agriculture standards.

The fourth strategy involves management, with all relevant agencies working in an integrated manner to develop Thailand's organic agriculture.

The world market for organic agricultural products has been expanding rapidly, so Thailand stands a good chance of exporting more chemical-free products.

Thai organic products are in high demand in the international market, but the market size is still relatively small. Thai organic products have a share of less than 1 percent of the global market.

Major markets include the United States, the European Union, Japan, and Australia. Among Thai organic agricultural exports are rice, black tiger prawns, beef, and fish.

Meanwhile, minister of Agriculture and Cooperatives general Chatchai Sarikulya said that the Cabinet had approved a project to promote organic rice production from 2017 to 2021.

A target has been set to plant organic rice in an area of 400,000 acres during the five-year period. Under the project, farmers will be encouraged to form groups in order to produce organic rice in areas

that have good potential for organic rice management. They will also be given financial assistance for the project.

http://english.vov.vn/economy/new-strategy-to-develop-national-organic-agriculture-348775.vov

ADB-backed projects key to Vietnam's improved water security 04/May/2017 Intellasia| Tuoitre News

Water operations supported by the Asian Development Bank (ADB) have played an important role in strengthening water security in Vietnam's most water-stressed areas.

Projects implemented by ADB have helped millions of Vietnamese households gain access to clean water over the past five years, the institution said ahead of its 50th Annual Meeting in Japan this week.

The regional development bank's vision is not only to provide sufficient water for households and economic activities in water-insecure areas, but also includes ensuring healthy ecosystem, and protecting against water-related disasters.

Continued operations initiated by the bank across the Asia-Pacific region have helped realise this vision through increased water use efficiency, mitigating water-related disasters, integrated water resources management, and expanded sanitation and wastewater management across the region, according to ADB.

In 2011, ADB approved a $1 billion plan to improve access to clean water for more than three million Vietnamese households, 500,000 of which were to be connected to the public pipeline for the first time.

The plan was part of a $2.8 billion national programme jointly funded by ADB, the Vietnamese government and other developmental partners.

The plan looked to cut Vietnam's losses of clean water in urban areas down to 20 percent by 2020, while gradually expanding areas in Vietnam with pipeline access to 100 percent by 2025.

In HCM City, a $405 million wastewater and drainage improvement project partially financed by the Urban Resilience Fund (URF) is aimed at supporting the southern metropolis' efforts to overcome sector challenges and adopt climate change resilience strategies.

Established in 2013, URF is a $130 million multi-donor trust fund that supports fast-growing cities in Asia in reducing the risks poor people face from the negative impacts of climate change.

URF will provide an early support of $5 million for the project in HCM City, while the remaining $400 million will be loaned by ADB.

In the coastal province of Khanh Hoa in south-central Vietnam, ADB has been supporting a study to measure water productivity of mango using remote sensing technology a powerful tool that revolutionises understanding of basin water resources.

The pioneering collaborative study, jointly conducted by ADB and the Netherlands-based IHE Delft Institute for Water Education, allows water accounting over large areas with cloud-free, high-resolution images that give detailed visuals of individual mango farms in the province.

Amy Leung, deputy director general of ADB's Sustainable Development and Climate Change Department said on Wednesday that the bank has funded and provided loans for multiple clean water projects in Vietnam over the past few years.

Her statement came during a media briefing on water and cities issues ahead of the 50th Annual Meeting of ADB Board of Governors to commence on Thursday in Japan.

Last year, ADB approved a total of $2.4 billion in investments in water operations across Asia, with plans to raise the number to nearly $6 billion in 2019.

The Asian Development Bank was established in 1966 as a financial institution that would foster regional economic growth and cooperation by providing loans, technical assistance, grants, and equity investments to promote social and economic development.

Based in Manila, ADB is owned by 67 members, 48 of which are from the region. In 2016, ADB assistance totalled $31.7 billion, including $14 billion in co-financing.

Every year, the ADB Board of Governors holds a meeting to discuss developments in Asia and the Pacific as well as institutional matters.

This year marks the 50th anniversary of the annual meeting, as over 5,000 participants - including finance and development ministers, central bank governors, private sector and civil society partners, and media - are expected to attend the event from May 4-7 in the Japanese city of Yokohama.

Operating under theme of "Building Together the Prosperity of Asia", this year's Annual Meeting will focus on the region's growing need for infrastructure as a critical sector towards achieving sustainable and inclusive development.

http://tuoitrenews.vn/business/40799/adbbacked-projects-key-to-vietnams-improved-water-security

Mid-segment homes continue to be market's main driver 04/May/2017 Intellasia| VNA

The real estate market will hot up in the remaining months of this year as developers, including VinGroup and Eurowindow, are launching a large number of mid-end projects, according to the Vietnam Real Estate Association (VNREA).

The VNREA forecast that the mid-end segment will continue to be the market's main driver as it has drawn most investment. With expected high sale volumes, the segment will help increase market liquidity, it said.

More than 9,000 residential apartments of 35 projects were put for sale in Hanoi during the first quarter of 2017, 62 percent of which were mid-end homes. The segment also accounted for over half of new launches in HCM City during the period, up 13 percent year-on-year.

In the remaining months of the year, the capital city is forecast to welcome more than 30,000 new homes while the southern hub expects up to 36,000 items. Both markets will be dominated by mid-end housing.

Projects in the western area of HCM City are catching investors' eyes as infrastructure there is about to improve with the launch of flyovers connecting Nguyen Van Cu and Nguyen Tri Phuong bridges with Vo Van Kiet Avenue, as well as a number of public facilities, including a hospital in Binh Chanh district.

Projects in the west and southwest of Hanoi are predicted to continue making up the majority of the city's supply.

http://en.vietnamplus.vn/midsegment-homes-continue-to-be-markets-main-driver/111109.vnp

Land prices surge amidst unconfirmed rumours in suburban HCM City 04/May/2017 Intellasia| Tuoitre News

Land prices in HCM City's suburban areas have recently skyrocketed over rumours of upgrading and merging outlying districts or the implementation of major projects.

The prices have increased by 30 to 40%, even 100 percent in some areas, in District 2 and District 9, as well as outlying districts including Binh Chanh, Can Gio, Cu Chi, and Hoc Mon.

Along Nguyen Xien Street in Long Thanh My Ward, District 9, which was previously a secluded neighbourhood, land prices have hiked after a rumour that a major realty project would be initiated later this month.

Advertisements have filled the area, while brokers hand out leaflets on a daily basis.

According to Van Anh, a broker, houses in a residential area named DV were first put on sale seven months ago.

Speculators began buying nearby land slots earlier this year, causing prices to rise, Anh elaborated. Areas along Nguyen Duy Linh Street in District 2 have also been in high demand. Hoang Nam, a local broker, stated that buyers of houses in the neighbourhood have been mainly

speculators while those having a real demand for residences make up a small portion. Tuoi Tre (Youth) newspaper reporters have noticed a 20-50 percent increase in land prices along

National Highway 50 in Binh Chanh District compared to the beginning of the year. National Highway 50 is a major road leading to provinces in the Mekong Delta, Ngan, an experienced

broker, explained, adding that Binh Hung Commune in the district is expected to be upgraded, leading to the price surge.

A 4m x 16m house, previously sold at about VND500 million (US$22,000), is now hard to find although the price has doubled, Ngan continued.

Land prices in outlying Can Gio and Cu Chi Districts have also spiked due to some hearsay that many developers will carry out their projects in the areas.

Caution Against the backdrop of the 'land fever,' real estate experts recommend that buyers should be cautious

before opening their pockets. As major investors have occupied all profitable projects in downtown areas, smaller ones will seek for

potential property in less prominent neighbourhoods such as District 2 or 9, said Nguyen Xuan Loc, general director of Techcomreal, a realty company.

That the city's authorities are developing infrastructure in suburban areas has been leveraged by brokers, boosting land prices, Loc added.

"Buyers should only choose those projects having a legitimate building permit, easy access, and connections to other infrastructure and sign deals with proper contracts to avoid pricing traps," he suggested.

According to Tran Khanh Quang, general director of Viet An Hoa Real Estate Consultant JSC, investors should not be hasty as rumours can be false.

Even if they are true, they will only become a reality in three to five years, Quang elaborated. Le Hoang Chau, president of the HCM City Real Estate Association, assessed that the 'land fever' is not

related to a housing bubble. http://english.vov.vn/economy/land-prices-surge-amidst-unconfirmed-rumours-in-suburban-ho-chi-minh-

city-348758.vov

Vietnamese packaging firms feel the heat 04/May/2017 Intellasia| Vietnamnet

Vietnamese packaging firms, especially small and medium sized, have to compete with foreign firms which have advantages in technology and financial capability, and must rely on imported materials.

According to Euromonitor, a market survey firm, the demand for food packaging in Vietnam in 2015 was 3.915 million tonnes, while the figure will be 5.396 million tonnes by 2020, up by 38%.

Meanwhile, the demand only increased by 13 percent in the world in the 2015-2020 period. Robert Graves, general director of Tetra Pak Vietnam, said Vietnam is among the top 10 markets for

Tetra Pak. In 2016, the manufacturer provided 7.5 billion packages to the domestic market, gaining two-digit growth rate over the year before, the highest rate in last 25 years.

Graves believes that the demand for F&B packages would even be higher in two years because of higher consumption of canned milk and fruits.

Tetra Pak predicted that the Vietnamese dairy product consumption, which was 25 litres per head in 2015 would be increasing to 28 litres by 2020, which shows the great potential of the Vietnamese market, in which hard paper packaging accounts for 62.2 percent and aluminum packaging 23.3%. Meanwhile, the consumption of other liquid food would be 3.3 billion litres.

According to Nhan Huc Quan, general director of New Toyo, as the production cost in Vietnam is lower than Singapore, Thailand and China, and the demand for F&B industry is increasing rapidly, foreign manufacturers, especially from China, have been flocking to Vietnam.

Most recently, Lee & Man from China spent $280 million to build a 420,000 tonne packaging factory in Vietnam.

Quan commented that foreign invested enterprises (FIEs) have greater advantages than Vietnamese.

"The technologies they use are modern with from-A-to-Z production lines. Therefore, their production cost is low and the productivity is high," she explained, adding that the market segment of high-quality products is dominated by FIEs, including Swedish Tetra Pak and German Combibloc.

Thai, South Korean and Japanese now hold 90 percent of the plastic packaging market share. Though FIEs joined the domestic market later than Vietnamese, they have corporate governance

experience and powerful financial capability which allow them to sustain losses for 3-5 years before making profits.

Tran Quang Minh, director of Thu Quang Packaging, complained that foreign enterprises mostly import packages rather than use domestically made products. Some enterprises use domestic products, but always claim price decreases.

Meanwhile, Vietnamese package firms are remain passive in input material price control. Plastic package manufacturers are concerned about the Polypropylene plastic particles (PP) import tariff

which has increased to 3%. The paper material price has increased two or three times since February, up 10 percent in total.

http://english.vov.vn/economy/vietnamese-packaging-firms-feel-the-heat-348766.vov

Vietnam lacks tools to net pyramid sharks 04/May/2017 Intellasia| VNS

Vietnam lacks the legal wherewithal to deal comprehensively with dubious multilevel marketing companies operating in the country, officials say.

While a crackdown on pyramid schemes by the Vietnam Competition Authority (VCA) has made some headway, authorities are unable to exercise due control over the multilevel marketing sector, they add.

The VCA, in collaboration with the Ministry of Public Security (MPS), shut down 45 per cent of illegal multilevel marketing companies in the country last year, according to the Ministry of Industry and Trade (MoIT).

The MoIT said the VCA penalised 30 network marketing firms last year after careful investigation, imposing fines of VND8 billion (US$357,941).

Of these 30 companies, 15 had their business licences revoked, 12 shut down their operations and three suspended theirs.

The MoIT also said that the number of firms running selling networks apparently based on pyramid schemes decreased by 25 percent between 2015 and 2016, from over 637,000 to about 425,000.

"We must concede that multilevel marketing is not a prohibited business, as regulated by the World Trade Organisation. However, in Vietnam, legal documents relating to this issue are still lacking, particularly as to which goods or services are allowed. The ministry, therefore, has proposed to the prime minister and the National Assembly that more rules and regulations be developed for this sector, and firms be subjected to more investigation and control," said Do Thang Hai, deputy minister of Industry and Trade.

He said provincial and municipal departments of Industry and Trade across the country have achieved greater success last year in implementing government regulations on illegal multilevel marketing activities.

The Hanoi Department of Industry and Trade levied fines of VND2.59 billion (US$115,883) on network selling firms, with the infamous Thien Ngoc Minh Uy Co. paying the largest fine of more than VND1.5 billion (US$67,114) as of April 2017.

Multilevel marketing companies earned an estimated profit of VND7.8 trillion (US$348.9 million) last year, down 2.5 percent from 2015, seemingly unaffected by the drop in downline distributors.

Also, just 11 firms made profits, with 18 reporting low earnings before taxes, not breaking even. Overall operating margin was reportedly just 0.5 to 3.8 percent of net sales.

Multilevel marketing firms paid around VND881 billion (US$39.4 million) in taxes last year. The sector's post tax profit for 2016 is estimated at VND177 billion (US$7.91 million), around 2.2 percent of their annual revenue.

It is also estimated that these firms paid their employees and downline distributors a total of VND2.4 trillion (US$107.38 million), with an additional VND44 billion (US$1.96 million) in promotional deals.

The VCA has explained these numbers as the result of the extremely high level of value added tax paid by end consumers instead of actual corporate taxes. This also means that out of more than six hundred thousand network marketing participants in Vietnam, only a handful are actual resellers. The rest are users.

Most of the revenue for multilevel market companies came from functional food items (59%) and cosmetics (24%) from cosmetic items, followed by household goods, clothes and other products.

According to the MoIT, it is difficult to regulate pricing for these items, which means illicit network sales companies can easily overprice them without reporting actual net sales to the authorities, enabling tax fraud.

A common modus operandi for pyramid sales firms is to use multilevel selling for illegal trading of financial services or raising money illegally.

"In order to straighten up the network marketing scene in Vietnam, the VCA intends to continue investigating, monitoring and dealing with irregularities," said VCA deputy director general Trinh Anh Tuan.

A new circular and an amended decree have improved State management of multilevel sales activities, helping identify some subterfuges employed.

Globally, pyramid and multilevel marketing schemes appeared in the seventies and generated a lot of controversy. In Vietnam, it began in 1998 and the number of firms has been growing steadily in the last five to six years, at 20 to 30 per cent a year.

The Vietnam Multi-Level Marketing Association, founded in 2009, has more than 100 member companies, though only 67 firms have been officially licensed by the MoIT.

Multilevel marketing is a legitimate but controversial strategy in which the sales force is compensated not only for the sales they generate, but also for the number and net sales of other salespersons recruited, while applying different bonuses structures as the pyramid, binary and matrix models.

http://english.vov.vn/economy/vietnam-lacks-tools-to-net-pyramid-sharks-348765.vov

Plans ignored, urban areas hurt 04/May/2017 Intellasia| VNS

Failure to follow planning in many urban areas has negative consequences for urban development, deputy prime minister Trinh Dinh Dung said at a recent conference of the construction sector.

As regulated, an Urban Development and Management Board will be set up to help local authorities carry out and manage development plans to ensure infrastructure connectivity and cooperation between contractors.

The Hanoi Capital Construction Master Plan was the first planning directed by the Politburo and approved by the prime minister, but many problems remained unsolved, such as traffic congestion, flooding and dense high-rise buildings in the inner city.

The director of the HCM City Department of Construction, Tran Trong Tuan, pointed to a lack of connectivity between housing development and infrastructure development.

Many home construction projects were built following approved planning but urban development projects, particularly technical and social infrastructure projects, failed to keep up with them. In some areas, there was some connectivity between these projects, but it did not comply with the Construction Law on comprehensive connectivity, according to Tuan.

To tackle this issue, big urban areas like Hanoi and HCM City need to complete housing development programmes on the basis of urban development programmes to deal with shortcomings relating to infrastructure and traffic, he said.

According to Construction minister Phạm Hong Ha, the ministry will review and inspect planning and the implementation of planning of all urban areas this year, particularly big urban areas.

The Linh Dam Urban Area in Hanoi's Hoang Mai District is a typical example of the problems raised at the conference. The area was planned ten years ago, but adjusted often since then. On an area of 3ha in the urban area, up to 12 high-rise buildings were built with a construction density of 50 per cent.

Another land plot was planned for low-rise houses, but a 35-storey building was built instead. The Linh Dam Urban Area is now in disorder and all the initial planning has been wiped out.

Experts said planning adjustments are common, but such "excessive" adjustments as in Linh Dam create a negative precedent.

Recently, an investor asked Hanoi authorities for permission to fill up one hectare of the 6ha Thanh Cong Lake to build an apartment complex. In exchange, the investor would dig up a hectare nearby to make a man-made lake.

But the vice Chair of the Hanoi Urban Planning and Development Association, Dao Ngoc Nghiem, said the proposal did not match the urban planning. The developer suggested digging a man-made lake, but failed to take into account the connectivity with surrounding infrastructure, he said.

Harmonious cooperation needed

According to Construction minister Ha, people and businesses are the ones affected by planning, but they have no say in it.

For example, in big urban areas like Hanoi and HCM City, if businesses choose to invest in an urban area in line with approved planning, they must ensure that the plans will not result in traffic congestion, he said. "Businesses themselves must not adjust planning without permission from local authorities, and both sides must abide by the approved urban planning."

Associate Professor Nguyen Trong Hoa from the HCM City Institute for Development Studies said urban planning in some areas was not effective enough or lacked sustainability.

Many urban areas incorporated construction planning into their socio-economic development plans but are still weak in building development plans.

As a result, current urban development plans were just "puzzle pieces" of projects that the State had enough budget to invest in or businesses wanted to invest in because of their own interests, he said.

Above all, authorities at all levels must manage urban development publically and transparently and be held accountable. Many countries in the world developed sustainably thanks to this "gold principle", he said.

All planning requires the participation of many relevant ministries and sectors, particularly localities which benefit from the planning. Therefore, if all ministries and localities have a responsibility to carefully study and contribute opinions to the planning, its quality would be much improved, Ha said.

http://www.vir.com.vn/plans-ignored-urban-areas-hurt.html

Business Briefs May 05, 2017 05/May/2017 Intellasia |

* Licogi 16 Company (LCG) targets a consolidated net profit of VND70 billion in 2017, inching up 2 percent versus the previous year, while the revenue is expected to soar 34 percent to VND1.5 rrillion. LCG plans to issue 23.7 million new shares this year to raise capital to VND 1 rrillion. Of the amount, the company will issue 22 million shares to srrategic partners at a price of no less than VNDlO,OOO, and sell 1.75 million shares under an employee ownership plan (ESOP) at VNDI0,000 each. In addition, the firm plans to pay a dividend at a minimum of 7 percent of the par value for 2017. LCG made a consolidated net profit ofVND13 billion on revenue ofVND222 billion in the January-March period.

* Taxi operator Vietnam Sun Corp (VNS) made a consolidated net profit ofVND55.1 billion in the first quarter of this year, down 20.6 percent year- on-year. Its revenue decreased 3.6 percent to VNDl.l rrillion in the period.

* Shareholders of Danang Rubber Company (DRC) at an annual general meeting last week agreed on a cash dividend ofVND2,800 per share for 2016, of which VNDl,500 had been paid in advance in November 2016. The remaining VNDl,300 per share will be paid in 2017. A dividend plan for 2017 is yet to be decided. To respond to shareholder concern about competition from cheaper Chinese tires, DRC asserted that the ongoing technology transfer from Black Donuts Engineering INC of Finland to replace the previous technology from China would help improve product quality and pricing power both in domestic and overseas markets in the next few years. DRC is

also working with THACO, a leading automobile assembler in Vietnam, to produce tires for use in agriculture, said Viet Capital Securities Company.

* Vinataba Trade & Investment Company (VTJ) began rrading 11.4 million shares on the Hanoi Stock Exchange last Wednesday at the reference price ofVND 11,000 each. Founded in 2007, VTJ specialises in domestic tobacco sale, focusing on the southern region. Trading has made up a large proportion in the enterprise's revenue since 2015. Besides, VTJ has expanded its business in real estate trading, office and condo leasing sectors.

International tourists surge over 4m in 4 months

04/May/2017 Intellasia| VNS

The number of international visitors to Vietnam in the first four months of this year was estimated at 4.28 million, representing a year-on-year surge of 30.3 per cent.

Arrivals by air reached 3.5 million passengers, an increase of 32.6 per cent against the same period last year, while 610,000 others travelled by road (up 11.1 per cent) and the rest arrived by sea (up 77.6 per cent), the general Statistical Office of Vietnam reported.

Visitors from Asia hit 3.06 million, up 35.3 per cent year-on-year.

The agency reported an increase in tourist inflow from Asia's key markets, with 1.27 million Chinese visitors, 701,000 Korean visitors and 261,000 Japanese visitors, up 61.1 per cent, 35.1 per cent and 6.6 per cent, respectively, against the same period last year.

During the reviewed period, Vietnam welcomed 747,000 European visitors, posting a year-on-year growth of 25.5 per cent, while the number of American tourists rose 11.1 per cent to 315,000, of which visitors from the United States reached 228,500, up 9.1 per cent.

In April, there were 1.07 million people visiting Vietnam, up 6.5 per cent over the previous month. This is the fourth consecutive month since the beginning of the year that Vietnam has welcomed more than one million visitors.

In 2016, the number of foreign tourists to Vietnam broke a record by reaching over 10 million visitors, up 26 per cent year-on-year.

Domestic tourists reached 62 million, up 5.3 times compared with 2001. Total tourism revenue in 2016 reached VND400 trillion (US$17.6 billion), accounting for 6.8 per cent of the country's GDP.

Vietnam's Political Bureau issued an important resolution on the orientation of tourism development to 2035. Accordingly, tourism has been identified as a spearhead economic sector, creating a driving force for socio-economic development.

Vietnam is expected to attract some 17 to 20 million international visitors and 82 million domestic visitors, contributing 10 per cent of the GDP by 2020. Total tourism revenue is forecast to reach $35 billion.

In addition, the country has set a target to become one of Southeast Asia's leading travel destinations by 2030.

http://bizhub.vn/news/international-tourists-surge-over-4m-in-4-months_285879.html

More enterprises have to pay informal customs fees 04/May/2017 Intellasia| The Saigon Times

The proportion of enterprises having to pay informal fees during the customs clearance process has risen to 31 percent in 2016 from 28 percent in 2015, according to a survey on 1,000 enterprises conducted by the Vietnam Chamber of Commerce and Industry (VCCI).

Meanwhile, about 31 percent of enterprises said they did not know of such informal fees and 38 percent of enterprises said they did not pay informal fees.

Among enterprises not paying informal fees, 44 percent said there was no discrimination against them, 17 percent said they were discriminated and 39 percent said they had no idea.

At a conference announcing the survey's results on April 27 in Hanoi, director of the Legal Department of VCCI Dau Anh Tuan said enterprises are still afraid of customs clearance procedures as customs officers may take overloading as an excuse to delay processing their documents. Therefore, they often give extra money to customs officers to ensure promptness.

General Secretary of the Business Association of Hai An District, Hai Phong City Dang The Luong said that although local customs units have applied electronic services, they could not meet the time due to overloading. "Enterprises need to pay informal fees if they want their cargos to be processed in advance," he added.

According to Tuan, informal costs remain high because enterprises have to work directly with customs officers. Therefore, he suggested applying one-door and online customs services to solve the problems.

Many other inadequacies were pointed out in the survey. Specifically, 93 percent of enterprises said there are too many customs regulations, making it difficult for them to comply. More than 89 percent said many of the regulations are impractical and 82 percent said the coordination between agencies is not good.

http://english.thesaigontimes.vn/53719/More-enterprises-have-to-pay-informal-customs-fees.html

How cheap will cars be once tariffs are cut to zeropct? 04/May/2017 Intellasia| Vietnamnet

The tariff cut to zero percent will pave the way for imports from Asean to flood Vietnam, but analysts do not think low-cost cars will be available by 2018.

Meanwhile, Vietnamese manufacturers still nurture the ambition of exporting cars to SE Asian markets. Under Afta, the tariff on imports from Asean will be cut to zero percent by 2018. Therefore, 2017 is

expected to see big changes in the market. The CBU (complete built unit) imports form Asean are on a sharp rise, with Thailand and Indonesia

having emerged as the two biggest exporters in the first three months of 2017.

Large foreign automobile manufacturers are not commenting about the changes in their production and business strategies.

According to Ngo Tri Long, a renowned economist, the production cost in Vietnam is higher than other regional countries.

Therefore, it is highly possible that automobile joint ventures would rather import cars for domestic sale instead of making cars domestically.

If this happens, thousands of workers at auto assembly factories would become redundant, while enterprises that provide supporting components may go bankrupt as the market shrinks.

A report from the general Department of Customs (GDC) showed that 14,460 cars were imported to Vietnam from Asean in the first three months of the year, an increase of 67.6 percent over the same period last year.

Of the 64,729 cars sold in the first three months of the year by VAMA members, imports from Asean accounted for 22.3 percent.

Toyota Vietnam's list of products includes three import products from Asean, namely Fortuner, Yaris and Hilux.

The revenue from the three product lines made up 25 percent of total sales in the first quarter. The two bestsellers of the joint venture were assembled in Vietnam - Vios (4,152 products) and Innova (3,193).

Vietnamese manufacturers plan to export cars While other auto manufacturers plan to import more cars from SE Asia for domestic sale to enjoy

preferential tariffs, Truong Hai and Thanh Cong plan to export assembled-in-Vietnam to SE Asia. Truong Hai has spent $0.5 billion to build a factory to assemble Mazda cars with the capacity of 100,000

products a year in Chu Lai IZ in Quang Nam province. In late March, Thanh Cong decided to cooperate with Hyundai to build a complex to make Hyundai

products in Vietnam. Explaining their decisions, Truong Hai and Thanh Cong said they understand that the government is still

determined to build an automobile industry in Vietnam. http://english.vietnamnet.vn/fms/business/177374/how-cheap-will-cars-be-once-tariffs-are-cut-to-zero-

percent-.html

USDOC investigates tool chests imports from Vietnam 04/May/2017 Intellasia| AFP

The US Department of Commerce has begun investigating the possibility of dumping of imports of tool chests and cabinets from Vietnam and China.

The investigation is being conducted following a petition from Waterloo Industries Inc., which filed an anti-dumping and a countervailing duty from the two countries on April 11.

The company alleges a dumping margin of 159.99 per cent for China and a dumping margin of 21.85 per cent for Vietnam. It also said exporters and producers from China had received unsuitable subisidisation from their government.

The International Trade Commission (ITC) may reveal its primary investigation result on May 25. The investigation will be continued if ITC finds evidence that shows the import of tool chests and cabinets from the two countries is damaging or threatening the United States' domestic industry.

Last year, the United States imported tool chests and cabinet at a total value of $989.9 million from China and $77 million from Vietnam.

The US anti-dumping law imposes special tariffs to counteract imports that are sold in the United States at less than "normal value". For anti-dumping duties to be imposed, the US government must determine not only that dumping is occurring, but also that there is "material injury" (or threat thereof) by reason of the dumped imports. Importers are liable for any potential anti-dumping duties imposed. In addition, these investigations could impact purchasers by increasing prices and/or decreasing the supply of tool chests and cabinets.

http://bizhub.vn/news/usdoc-investigates-tool-chests-imports-from-viet-nam_285885.html

Multiple investors want to develop terminal at TSN airport 04/May/2017 Intellasia| The Saigon Times

The adjusted master plan for Tan Son Nhat International Airport has not been approved yet, but four investors have expressed keen interest in developing the new passenger terminal called T4, according to the Ministry of Transport.

These investors are Imex Pan Pacific Co Ltd; a joint venture between Danang International Terminal Investment and Operation JSC and Thang Long Infrastructure Investment JSC; Vietnam Airlines Corp; and VietJet Aviation JSC.

Imex Pan Pacific wants to work with the Airports Corporation of Vietnam (ACV) to finish the project within one year and a half.

Meanwhile, the joint venture also wishes to cooperate with ACV to set up an investment company next month if approved, according to its report to the ministry. The consortium is committed to providing adequate capital in line with the regulation, and inking a credit agreement before work on the project begins. It pledges to complete the project by the end of next year, and run on a one-month trial basis before the 2019 Lunar New Year holiday.

The adjusted master plan for the airport has yet to be approved, so ACV still has not made up its mind to develop the project on its own or shake hands with other investors, according to Lai Xuan Thanh, director general of the Civil Aviation Authority of Vietnam (CAAV).

He stressed the regulations should be strictly complied to ensure the objectivity and transparency regardless of the selected investment method.

Under the adjusted master plan for Tan Son Nhat International Airport, besides the two existing runways, a parallel taxiway and two exits for aircraft will be built anew. In addition to the current passenger terminal, a new one called T4 will be developed to accommodate 15 million passengers on an annual basis.

Therefore, Tan Son Nhat will be able to serve from 43 to 45 million passengers a year, with around 80-85 parking spaces for airplanes, says the CAAV in its recent report to the transport ministry.

The expansion of the airport is estimated to cost more than VND19.3 trillion funded by various capital sources including the State budget and loans.

Due to the urgency of the project, CAAV has proposed the ministry pick the ACV as the investor to construct a number of components on its own capital, as well as mobilise capital from various organisations to develop the passenger terminal T4.

http://english.thesaigontimes.vn/53721/Multiple-investors-want-to-develop-terminal-at-TSN-airport.html

Danang among fastest emerging startup scenes in region 04/May/2017 Intellasia| VN Economic Times

Danang is one of five cities in Southeast Asia with the fastest emerging startup scenes, according to the latest report from JLL, joining Malaysia's Penang, Thailand's Chiang Mai, and Indonesia's Bandung and Bali.

"The flourishing startup culture in Southeast Asia is not just confined to the region's big capital cities," the report stated. "These five cities have become hubs for digital nomads and startup companies, thanks to a combination of low cost, access to talent, and strong government support."

Danang is quietly building its startup scene, with major investments from companies such as Viettel turning the city into an "Innovation Hub by the Sea".

The central city also hosted the first Startup Fair 2016 last year, to build its technological capabilities. A new $1.3 million incubator was also set up last year to empower startups.

Meanwhile, Penang has charmed its way into the hearts of startup founders and entrepreneurs, sprouting award-winning companies such as Piktochart. There is also strong State government support.

An accelerator called @CAT, for Creative, Analytics & Technology, has been launched to boost the scene and is housed in a historical building, no less.

Chiang Mai has been dubbed "the capital of digital nomads" thanks to its affordability and high quality of life. The city has steadily growth in clout worldwide with brands such as BBC and Amazon holding events at homegrown popular co-working spot PunSpace.

Oon IT Valley, an innovation centre promoting social enterprises and information technology know-how projects, is in the works.

Bandung is one of Indonesia's most creative cities, whose young population and friendly eco-system make it a fertile ground for incubating startups.

Under the leadership of the city's Mayor Ridwan Kamil, it is piloting education reforms with a local app, Edubox, and building Teknopolis, a mini version of Silicon Valley.

Bali has been nicknamed "Silicon Bali" for producing several significant startup successes such as Labster, Mailbird, and Smart Launch. Its popularity with digital nomads has led to startups like Roam and Wifly Nomads creating products and services catering to this growing market.

http://english.vov.vn/economy/danang-among-fastest-emerging-startup-scenes-in-region-348762.vov

Shortage of tour guides critical upon strong tourism growth

04/May/2017 Intellasia| The Saigon Times

The increasing number of foreign visitors to Vietnam recently has led to a severe shortage of tour guides, especially those able to speak Chinese, Korean, Japanese or German.

Tu Quy Thanh, director of Lien Bang Travel Trading Company Limited (Lien Bang Travelink), said that the lack of Chinese-speaking tour guides has been a big problem for years, especially in coastal cities such as Danang, Nha Trang and Phu Quoc.

The lack of such tour guides has persisted although compensations are high for such people, he said. Monthly income of Chinese-speaking tour guides can be up to VND30 million (about $1,320), he said.

"This is a good income but travel firms still find it very difficult to have enough Chinese-speaking tour guides," Thanh said.

Nguyen Thi Khanh, vice chair of the HCM City Tourism Association (HTA), said that the lack of tour guides has been a chronic problem for the tourism industry. During the peak tourist seasons, travel firms have to ask for help from each other, resulting in poor service quality.

According to data of the Vietnam National Administration of Tourism (VNAT), more than 10 million international visitors came to Vietnam last year, but the country had only 18,674 tour guides having accreditation cards.

In particular, there were only 2,154 Chinese-speaking tour guides to serve about 2.7 million Chinese visitors last year, not counting tourists from other Chinese-speaking markets such as Hong Kong and Taiwan.

Similarly, Vietnam welcomed 1.5 million Korean visitors and 740,000 Japanese visitors last year but the numbers of tour guides able to speak Korean and Japanese were just 116 and 511 respectively.

To deal with the shortage of tour guides, the HCM City Department of Tourism has suggested that the Ministry of Culture, Sports and Tourism relax the requirements for issuing accreditation cards for tour guides from university degrees to vocational college degrees.

However, Khanh of HTA said this is just a temporary solution. In the long term, there should be early career guidance as well as supportive policies such as scholarships for students who choose to study tourism and hospitality.

http://english.thesaigontimes.vn/53722/Shortage-of-tour-guides-critical-upon-strong-tourism-growth.html

All casinos can pilot serving Vietnamese customers

04/May/2017 Intellasia| VIR

The draft circular to guide the implementation of certain clauses of Decree No.03/2017/ND-CP issued by the government on casino business has no clause restricting which casino in which region can pilot opening to Vietnamese customers.

This is very surprising because before the decree was issued in January, some sources were saying that the government would only authorise pilot programmes in casinos in the northern province of Quang Ninh's Van Don and the southern province of Kien Giang's Phu Quoc Island.

This means that all casinos in Vietnam can pilot opening to Vietnamese customers. According to the draft, which was put forward to gather public opinion late last week, Vietnamese who

want to play in the casinos have to demonstrate that they have sufficient financial capacity by showing a copy of the personal income tax collection form issued by the tax authority showing that they have a monthly income over VND10 million ($439) or a pay slip certified by the organisation where the person works showing that they have a monthly income over VND10 million ($439).

Otherwise, Vietnamese players can supply notarised house renting contracts, asset renting contracts, or a copy of a bank statement showing their annual interest income or other documents that can prove a regular monthly income of VND10 million ($439) and over.

Also, according to the draft, the company operating the casino that is allowed to pilot serving Vietnamese customers has to save these documents for at least three years so that government agencies can supervise, monitor, check, and investigate.

As vacation-goers rarely take these documents along, many people are saying that these requirements are too complicated.

The draft also proposes the company opens an account for or issue an electronic card to each customer in order to monitor people entering and leaving the casino according to Clause 14 of Decree 03. The account

can be recorded by hand or electronically. The information has to be saved for at least three years so that government agencies can supervise, monitor, check, and investigate relevant data.

The account or card has to show the name of the player, valid passport or travel permit number, nationality, photo (in case it is a card), time of entering and leaving the casino, and other information that the casino operator needs.

Each quarter, the casino operator will submit its earning from selling the tickets to play in the casino into the state account at the National Treasury branch of the same administrative unit as the tax authority where the company registered to file its taxes.

All this money will be used by the provincial authority for development investment, social welfare, community development, public security, social order, and at least 60 per cent of it will be for education and training, and healthcare.

http://www.vir.com.vn/all-casinos-can-pilot-serving-vietnamese-customers.html

Jetstar Pacific receives international operation safety audit registration 04/May/2017 Intellasia| VNA

Jetstar Pacific Airlines has been registered under the international operation safety audit (IOSA) of the International Air Transport Association (IATA).

The low-cost airline has been added to the list of IOSA-achieved airlines of IATA. The IOSA programme is an internationally-recognised safety evaluation system, designed to assess the

operation management and control of safety standards within an airline. According to Jetstar Pacific Chief Executive Officer Nguyen Quoc Phuong, the airline cleared over 900

standards and recommended practices outlined in the programme to get the certification. Jetstar Pacific is now using the Safety Management System (SMS) approved by Civil Aviation Authority

of Vietnam and based on standards of IATA, the International Civil Aviation Organisation and Australia's Qantas Airways

http://en.vietnamplus.vn/jetstar-pacific-receives-intl-operation-safety-audit-registration/111140.vnp

Vietnam Airlines offers discount on Hanoi-Sydney flight 04/May/2017 Intellasia| VNA

National flag carrier Vietnam Airlines is offering a 30 percent discount for 1,000 first online bookings of flights on the Hanoi-Sidney route until May 5.

The bookings must be made on the airline's official website, available at www.vietnamairlines.com, using the promo code PR30SYD117 and for travel until June 30.

The national carrier launched the new direct service from Hanoi to Sydney in March, using new-generation aircraft Boeing 787-9 Dreamliner.

The 4-star flight, which takes about 9 hours and 35 minutes, will be operated three times per week, bring the total number of its flight to Australia to 17 per week.

The flight will depart from Hanoi at 23:55 on Tuesdays, Fridays and Sundays and return from Sydney at 15:15 (summer time) or 14:15 (winter time) on Mondays, Wednesdays and Saturdays.

http://en.vietnamplus.vn/vietnam-airlines-offers-discount-on-hanoisydney-flight/111124.vnp

FECON asks for permission to transfer stake in Phu Ly 04/May/2017 Intellasia| VIR

FECON Foundation Engineering and Underground Construction Joint Stock Company (FECON) has requested permission from the Ministry of Transport (MoT) to transfer the capital, rights and obligations in the Phu Ly bypass project to three Japanese investors.

The transferred part makes up 40 per cent of the chartered capital of the project company FCC Infrastructure Investment JSC (equivalent to 11.2 million shares). FECON explained that the deal is because it wanted to restructure of its investment portfolio. Specifically, FECON will transfer 5.6 million shares, equivalent to 20 per cent of the chartered capital, to its subsidiary Infrastructure Joint Stock Company (FCI), 3.92 million shares (14 per cent) to Japan Expressway International Company Limited (JEXWAY), and 1.68 million shares (6 per cent) to Central Nippon Expressway Company Limited (NEXCO).

The Phu Ly bypass project was kicked off in 2014, completed in 2016, and officially put into operation and started collecting tolls at the South Gie Bridge toll booth on November 24, 2016.

With the total length of 43.4 kilometres, the Phu Ly bypass project has a total investment sum of over VND2.046 trillion ($97.5 million). Investors of the project include FECON, Cotec Construction JSC (Coteccons), and Civil Engineering Construction Corporation No.1 (Cienco 1).

Currently, the South Gie Bridge toll booth offers a 30 per cent lower rate than other BOT toll booths on National Highway No.1.

http://www.vir.com.vn/fecon-asks-for-permission-to-transfer-stake-in-phu-ly-bypass-project.html

Trung Son hydropower plant commissions third generator 04/May/2017 Intellasia| The Saigon Times

Vietnam Electricity Group (EVN) last week commissioned the third generator of Trung Son hydropower plant that is able to supply an extra one billion kWh each year for the national grid.

The 260- MW hydropower plant in Thanh Hoa Province with four generators invested by the EVN Power Generation Corporation 2 (EVNGENCO2) is also expected to improve irrigation for the lower Ma River.

The hydropower project is being implemented within six years since 2011 at a total cost of about $411.72 million with $330 million lent by the World Bank and $81.72 million from Vietnamese counter capital. This is the first hydropower plant in Vietnam funded by the global lender.

The new generator is expected to ease the severe power shortage anticipated for the ongoing dry season. EVN has said it will utilise all power sources, including coal, gas and diesel-fueled and hydropower

stations, to supply electricity for the dry season. EVN predicted that electricity demand in this dry season will increase by 12 percent over the same period

last year. The electricity generation capacity of the entire power system could be up to 31,800 MW in May and June, much higher than the maximum utilised capacity of 27,066 MW in the first quarter.

Coal and gas power and hydropower plants, especially Vinh Tan 2, Duyen Hai 1 and Duyen Hai 3, will be operated at full capacity. In case of emergency, EVN will have to mobilise diesel-run power stations to ensure electricity supply.

EVN will also try to complete the construction of other power projects such as the first generator of Thai Binh thermal power plant and the remaining two generators of Trung Son hydropower plant and start work on Quang Trach 1 thermal power project in December.

Vietnam is now home to 70 large and medium hydropower plants with a total capacity of more than 14,000 MW. The volume of water in hydropower reservoirs has decreased since 2015 due to the impact of El Nino, causing hydropower output in 2015 to decrease by 4.5 billion kWh to 55.3 billion kWh compared to 2014.

http://english.thesaigontimes.vn/53727/Trung-Son-hydropower-plant-commissions-third-generator.html

Cat Bi airport's second terminal construction given thumbs up 04/May/2017 Intellasia| VNA

The Civil Aviation Authority of Vietnam (CAAV) has approved a project to construct a second terminal at Cat Bi International Airport in the northern port city of Hai Phong.

The move aims to serve the growing numbers of passengers via the airport, which is expected to reach 8 million by 2025.

According to the CAAV, investment will be sourced from various social sources. The Cat Bi International Airport is expected to soon face overloading spurred by a substantial surge in

passenger numbers. The number of passengers rose 42.5 percent in 2016, while in the first three months of this year, the airport welcomed 538,000 passengers and the figure is expected to reach 2.1 million by the end of this year.

The VietJet Aviation Joint Stock Company (Vietjet Air) is suggesting investing 6 trillion VND (263.8 million USD) in the second terminal. The company will ensure 30 percent of the figure with the remainder arranged by the HCM City Development Bank (HDBank).

Cat Bi has become a 4E-level international airport under the International Civil Aviation Organisation standards, a first-level military airport and a standby for Hanoi's Noi Bai International Airport.

http://en.vietnamplus.vn/cat-bi-airports-second-terminal-construction-given-thumbs-up/111097.vnp

Key traffic routes to be built in central region 04/May/2017 Intellasia| VNA

The central province of Quang Nam will start construction this year of key traffic route projects to connect strategic economic zones, sea and air ports in the central provinces and Central Highlands.

Director of the Chu Lai Open Economic Zone Authority (EZA), Do Xuan Dien, said that the project will use 730 billion VND (33 million USD) from the Korea Economic Development Cooperation Fund (EDCF) and the State budget.

As scheduled, five traffic routes with a total length of almost 3,200km will link the International Bo Y Border Checkpoint in Kon Tum province with Ky Ha Sea Port, Chu Lai International Airport, Chu Lai Open Economic Zone, districts of Tien Phuoc and Bac Tra My in Quang Nam and Dung Quat Economic Zone in Quang Ngai province.

Dien said the projects would ease logistics via air and sea routes and trans-border cargo routes to Laos and Cambodia. He said the project would take four years.

Quang Nam province launched the first Chu Lai-Korea sea route last year, connecting Tam Hiep Port and Incheon Port in the Republic of Korea.

The province invested 825 billion VND (39 million USD) to dredge two main ports - Tam Hiep and Ky Ha - to enable docking of cargo ships with a capacity of 10,000 dwt (deadweight tonnage) and 20,000 dwt.

http://en.vietnamplus.vn/key-traffic-routes-to-be-built-in-central-region/111089.vnp

Environmental monitoring station to be built next to Lee & Man Paper Mill 04/May/2017 Intellasia| The Saigon Times

Fretting over the impacts of wastewater discharged from the Lee & Man Vietnam paper mill project on the aquaculture production of local people, Hau Giang Province will build an environmental monitoring station next to the project.

Nguyen Van Dong, director of the Department of Agriculture and Rural Development of Hau Giang Province, told the Daily that the station will be located in Mai Dam canal near Lee & Man paper mill and its construction is scheduled to get started in May this year.

According to the Fisheries Law and Circular No. 32 of the Ministry of Agriculture and Rural Development, each locality must have at least one environmental monitoring station for aquaculture production. However, Hau Giang Province still has no such station for its aquaculture area of 1,500 hectares.

After completion, the station will measure 14 indicators as regulated by the directorate of Fisheries, including water temperature, the pH level, microbiological levels, residues of pesticides and heavy metals like lead and mercury among others.

According to Dong, there are nearly 20 households engaging in aquaculture in the region around the station. Therefore, the province will place a fish cage at the station to provide alerts if any incident occurs.

Previously, the Vietnam Association of Seafood Exporters and Producers (VASEP) has asked the government to inspect the technologies for wastewater treatment and environmental monitoring of Lee & Man Vietnam paper mill due to the threat of its impacts on agriculture production of the Mekong Delta.

The Lee & Man Vietnam paper mill project is in the process of trial operation. However, there have been some incidents like dust, smell and odor nuisance. The investors are resolving the problems and expect to finish their work on May 5.

http://english.thesaigontimes.vn/53720/Environmental-monitoring-station-to-be-built-next-to-Lee--Man-Paper-Mill.html

FLC to develop 35-hectare urban complex in Binh Dinh

04/May/2017 Intellasia| The Saigon Times

Binh Dinh Province's government has given nod to FLC Faros Binh Dinh Investment and Development Co. Ltd to develop an urban complex named FLC Lux City Quy Nhon spanning over 35 hectares in the province's Nhon Hoi Economic Zone.

Faros, a member of FLC Group JSC, will invest over VND600 billion in the project, said the Investment Promotion centre of Binh Dinh Province.

The project is aimed to build a high-grade functional urban area to develop Nhon Hoi eco-tourism urban area. It will also feature landscape architecture, commercial services and housing meeting international standards.

Covering an area of 32.59 hectares, the project will include low-rise buildings and villas on an area of over 11 hectares. Besides, a kindergarten, offices, a car park and a greenery area will also be developed in remaining area. The two-phase project is expected for completion in about two years.

FLC Group introduced the FLC Lux City Quy Nhon project as a large urban complex in central Vietnam in March. The project will be implemented in combination with an ocean park with art stone sculpture garden, food-entertainment-shopping streets, hospitals, schools, cinemas and parks to serve more than 1,000 households at FLC Lux City Quy Nhon.

FLC Group is currently the investor of many large projects in Binh Dinh such as FLC Quy Nhon Golf Links and eco-tourism site, Eo Gio eco-tourism resort and a five-star hotel. More noteworthy is the FLC Quy Nhon Beach & Golf Resort project on an area of 1,300 hectares with a total investment of VND7,000 billion. The project includes resorts and five-star hotels of 1,500 rooms, a 36-hole golf course, a marine eco-tourism park, and a wildlife park among others.

http://english.thesaigontimes.vn/53730/FLC-to-develop-35-hectare-urban-complex-in-Binh-Dinh.html

Samsung Vietnam launches largest recruitment drive 04/May/2017 Intellasia| VNS

Samsung Vietnam (SEV) on Saturday held its Global Samsung Aptitude Test (GSAT) for applicants from both the north and the south.

The test was held at the National Convention Centre and at Samsung HCM City Complex (SEHC). The recruitment of a large number of university graduates is part of Samsung's expansion plan in

Vietnam. This is an important step in the transformation of Samsung's strategy to strengthen its leading position as the world's largest mobile phone manufacturer.

More than 8,800 applicants who are engineers or bachelor degree holders were selected from 20,000 applications to take the GSAT this time.

GSAT is Samsung's global capacity test for new candidates graduating from universities and comprises three main topics --"mathematical ability," "deductive reasoning" and "visual thinking." This is one of the first rounds of the recruitment procedure for graduate employees at all Samsung subsidiaries worldwide.

Following the GSAT, high scorers will go through interviews in May. After passing two rounds, the most outstanding and suitable candidates will become official employees of SEV in June. The new recruits will work at eight facilities of SEV.

SEV has been conducting the GSAT since 2011 and nearly 9,500 employees have been enrolled via this recruitment method.

Lee Cheol Ku, deputy general director of Samsung Vietnam, told Vietnam News many FDI firms had been investing in Vietnam. This along with the country's economic development had brought job opportunities to Vietnamese students.

"As one of the FDI companies in Vietnam, I see local students have knowledge suitable with the recruitment criteria for FDI. However, Vietnamese students are still weak in their foreign language ability, which is required to work at FDI enterprises," he said.

http://bizhub.vn/corporate-news/samsung-viet-nam-launches-largest-recruitment-drive_285858.html

Samsung's weighty contribution to Vietnamese economy 04/May/2017 Intellasia| VIR

By expanding its businesses in Vietnam, Samsung's contribution to the Vietnamese economy is getting larger.

Huge manufacturing complexes Samsung has several huge manufacturing complexes in Vietnam. Its subsidiary Samsung Electronics

already has three complexes in Bac Ninh Province (SEV), Thai Nguyen Province (SEVT), and HCM City (SEHC), with a total investment value of $9.5 billion.

While SEV and SEVT have become familiar with the Vietnamese people, as these two complexes have been operating for many years and have contributed significantly to the Vietnamese economy and society, SEHC is brand new. Being launched in the middle of last year with a total investment of $2 billion, SEHC manufactures complete television units and consumer electronic products, such as vacuum cleaners, washing machines, and fridges.

Compared to Samsung's previous television manufacturing plant in Thu Duc district (HCM City), SEHC in on a whole different scale and technological modernity. The large factory buildings were constructed on a 94-hectare area, and according to Samsung, all the production lines are the most modern available freshly imported for the production of high-end product lines, such as TV SUHD, Smart TV, and LED TV.

At the time VIR's reporters visited SEHC in the middle of April 2017, it was focusing on the production of QLED televisions, the most high-end product line of Samsung available domestically and

internationally. SEHC specifically reserved a special manufacturing area, called LCM, to manufacture screens, the part accounting for 70 per cent of televisions' value. This place must be kept absolutely clean, so the production process is very strict: all components, devices, and employees must be "clean" before entering this area.

With the capacity of 40,000 LCM products each day, this production line not only supplies enough components for SEHC but 30 per cent of its capacity goes to export.

"There are not many Samsung plants in the world that can manufacture LCM screens. This technology is considered an original production process, which means that Samsung highly appreciates its Vietnamese operations," a Samsung's representative told VIR.

Despite only being launched for a short time, SEHC now has an average capacity of about 1.1 million products each month. Beside semi-finished products, 80-90 per cent of SEHC's finished products are exported. In particular, the consumer electronic products are exported to 75 markets and the audio visual products are exported to 60 markets.

Samsung's mobile device manufacturing complexes in Thai Nguyen Province and Bac Ninh Province, both larger in scale than SEHC, are faring similarly. At present, the mobile devices of SEV and SEVT are exported to 78 markets. 40 per of Samsung mobile devices in the world are manufactured in Vietnam. With over 110,000 employees, Samsung Vietnam now employs one third of the total Samsung Electronics staff all over the world.

The whole economy depends on Samsung? The statistics of Vietnam's socioeconomic situation in the first quarter of 2017 indicate that the GDP

growth rate was 5.1 per cent only. According to some regulatory authorities, this fairly low percentage resulted from the decreasing production of Samsung during the observed period.

Samsung's decreasing production may derive from the Note 7 incident last year. It is not clear yet whether Samsung is the reason behind the decline in Vietnam's GDP in the first quarter of 2017, but it seems that Samsung is playing an increasingly important role in the growth of the Vietnamese economy.

Thus, when discussing the movements of the Vietnamese economy in the rest of the year, experts again mentioned Samsung. Accordingly, when Samsung increases its production in the second quarter, the Vietnamese manufacturing industry will recover, thereby pushing economic growth.

Bang Hyun Woo, deputy general director of Samsung Vietnam, said that last year, despite the incident of Note 7, SEV and SEVT still had an export turnover of $36.2 billion. In total, all Samsung manufacturing activities in Vietnam generated a revenue of $46.3 billion. Of the total, the revenue from exports was $39.9 billion, an increase of 9.9 per cent compared to 2015.

In the middle of April 2017, when visiting SEVT, VIR's reporters saw that the $5 billion production line was focusing on the production of new smartphones Galaxy S8/S8+. According to its schedule, on May 5, these smartphones will be officially sold in Vietnam as well as in global markets.

After the Note 7 incident, Samsung is now very careful in producing and testing the S8/S8+ devices. All products are tested for 72 hours, instead of the two hours of the previous practice, to ensure that there will be no defect or incident. In the reliability test lab, the product safety testing department now added an explosion testing stage, and additional tests to verify the products' ability to withstand force, temperature, and chemicals.

This is the reason why Samsung believes that the S8/S8+ will generate a significant revenue, as the rising demand will bring about increasing production, thereby increasing SEV and SEVT's production and export value.

Samsung expected that SEV and SEVT's export turnover will increase by 10 percent compared to last year, reaching $40 billion this year.

In addition, when SEHC stabilises operation during this year, its export turnover will increase by about $4 billion, while last year's export turnover was $1.7 billion only. Thus, these three Samsung complexes will contribute $44 billion to Vietnamese exports. Almost no other domestic enterprise can contribute such a large amount to Vietnamese exports.

None of these calculations include the manufacturing and export activities of Samsung Electro Mechanics Vietnam in Thai Nguyen Province or Samsung Display in Bac Ninh, which has increased its investment to $6 billion. If it is counted, it is estimated that Samsung's export turnover will be $50 billion this year, a remarkable increase in comparison with the $39.9 billion of last year.

http://english.vov.vn/economy/samsungs-weighty-contribution-to-vietnamese-economy-348767.vov

JYSK expands Scandanavian quality and style in Vietnam 04/May/2017 Intellasia| VIR

Amid the growing local demand for Scandinavian-style interior decor, Denmark's JYSK Group, a well-known international retail chain, has once again expanded its local operations.

JYSK recently opened a new store on Hanoi's Lang Ha street, marking its fifth store in the capital city and sixth in the country since the company entered Vietnam in 2015.

Doan Hong Hai, chair of NeatClean, JYSK's franchise partner in Vietnam, told VIR, "With a total area of about 700 square metres, the new facility together with other JYSK stores brings a unique and homey Scandinavian style to Vietnamese households, including products of furniture, bedding and decoration."

These stores are part of JYSK's plan to open a chain of 10-20 stores in Vietnam by 2020 to capitalise on steady growth rates, a growing consumption base of more than 90 million people, a strategic location in Southeast Asia, a young population, and fast-growing middle class.

"We are seeking favourable locations for four to five other stores in both Hanoi and HCM City this year to meet the growing local demand for lifestyle and interior decor products," Hai added.

In recent years, Scandinavian-style interior decor has been popular and favoured by Vietnamese consumers.

"I love JYSK products as they are very safe, elegant, and beautiful. JYSK products are now present in every corner of my house," said Tran Thi Nhung, a 35-year-old resident of Hanoi.

Like Nhung, her friends and colleagues have tended to choose Scandinavian-style interior decor products amid growing concerns about unsafe products in the market.

JYSK and other European companies in Vietnam are also looking forward to the EU-Vietnam Free Trade Agreement (EVFTA), which comes into effect in 2018.

"This FTA will enable us to enjoy import tariff cuts, helping us to reduce prices and gain competitiveness in the Vietnamese market, which has become a magnet to a number of foreign players in the field," Hai noted.

NeatClean, which was established in April 2015 by founders operating in retail, trade, import-export, and interior decor, has helped develop JYSK's retail network in Vietnam.

As a leader in the European market of affordable home furnishings solution, JYSK currently has over 2,448 stores in 48 countries across the globe.

The turnover in the financial year 2015/2016 was euro 3.12 billion ($3.41 billion), according to JYSK's website.

http://www.vir.com.vn/jysk-expands-scandanavian-quality-and-style-in-vietnam.html

Lotte chosen to build smart complex in Thu Thiem urban area 04/May/2017 Intellasia| VNA

The HCM City People's Committee has selected the Republic of Korea's Lotte group as the investor of a smart complex project in the city's Thu Thiem New Urban Area.

The project is set to cost the investor 20.1 trillion VND (nearly 884 million USD), excluding site clearance expenses.

It aims to develop a multifunctional finance-trade-service and residential centre in which finance, trade and service functions play a crucial role in the core area of Thu Thiem.

Roads and technical infrastructure inside the complex and connecting with other areas in Thu Thiem will also be constructed under the project.

The project is scheduled to be carried out in 72 months since the approval of the investor and will be operated in 50 years by Lotte.

The Thu Thiem New Urban Area is located on the east of the Saigon River, facing District 1, with a total area of 657ha. It is expected to be a new centre of finance, commerce, services, along with culture and entertainment of HCM City.

http://en.vietnamplus.vn/lotte-chosen-to-build-smart-complex-in-thu-thiem-urban-area/111139.vnp

Sense City Ca Mau makes soft opening for holiday 04/May/2017 Intellasia| VNS

Saigon Union of Trading Cooperatives opened a Sense City department store in Ca Mau city on April 30. It is the first Sense City in Ca Mau and the third in the Cuu Long (Mekong) Delta after earlier ones in

Can Tho and Ben Tre.

With a modern design the 18,000sq.m Sense City Ca Mau offers a full range of shopping, dining, and leisure options under one roof.

It has a Co.opmart supermarket selling more than 30,000 items; Galaxy cinemas; an amusement area; a food court with the presence of international barbecue and hotpot brands for the first time in Ca Mau like King BBQ, GoGi, and Kichi Kichi besides fast food brands like Pizza Company and Jolibee; shops selling well-known fashion products, jewellery, cosmetics, eyewear and watches; a Fahasa bookstore and a four-storey underground parking lot.

The new store offers hundreds of gifts for early customers and discounts of up to 50 per cent on fashion products, cosmetics, jewellery, and accessories.

Following the soft opening to take advantage of the long holiday weekend, Sense City Ca Mau is expected to officially open by the end of this month.

http://bizhub.vn/corporate-news/sense-city-ca-mau-makes-soft-opening-for-holiday_285859.html

Work starts on farm product processing factory in Tay Ninh 04/May/2017 Intellasia| VNA

The Lavifood Joint Stock Company held a ground breaking ceremony for its agricultural product processing factory in Go Dau district of the southwestern province of Tay Ninh on May 2.

Covering 15ha, the Tanifood factory is being built with total investment of 1.5 trillion VND (about 66 million USD). Its products, including processed fruits and canned juice, will be shipped to American and European countries, the Republic of Korea, Japan and Australia.

The factory is expected to begin operation in late 2018, said Pham Ngo Quoc Thang, general director of Lavifood. It is capable of processing 500 tonnes of local fruits per day, helping to reduce losses after harvest and raise incomes for local farmers.

Pham Van Tan, Chair of the provincial People's Committee, said that leaders of the province have studied agricultural development and conducted market research in countries like the US, Japan and the RoK.

The factory will be promptly contribute to sustainable economic development of Tay Ninh province, he added.-

http://en.vietnamplus.vn/work-starts-on-farm-product-processing-factory-in-tay-ninh/111115.vnp

Dai Nam racecourse inaugurated in Binh Duong Province 04/May/2017 Intellasia| VNS

The Dai Nam Joint Stock Company opened an international standard racecourse with investment of more than VND2 trillion (US$87.9 million) in the southern province of Binh Duong on Tuesday.

Construction of the course, spanning over 60ha within the Dai Nam tourism park complex, began last July. The course is built to accommodate five racing disciplines - tracks for dog and horse racing, mountain biking, auto racing and motorboat racing. In addition, the course also hosts some water motorsports such as jet ski and flyboard.Speaking at the event, vice chair of the provincial People's Committee Dang Minh Hung noted that the province has paid due attention to building facilities to serve entertainment demands of the locals.

Huynh Uy Dung, the company's general director-cum-chair of the management board, said the racecourse focused on horse racing and entertainment for people.

The racecourse will organise horse racing competitions at the regional and international levels in the future.

A part of profits from the racecourse's operation will be given to charity, especially the free heart surgery programme for poor children. Dai Nam racecourse, which can house 20,000 spectators, is expected to attract numerous visitors from in and outside the locality, contributing to developing a key economic region in the south he added.The track will be a place to host regional and international sport competitions and will also help in discovering and developing talented racers.

http://bizhub.vn/news/dai-nam-racecourse-inaugurated-in-binh-duong-province_285881.html

An Hao Bridge opened to traffic 04/May/2017 Intellasia| The Saigon Times

An Hao Bridge across the Dong Nai River connecting Dong Nai Province with Binh Duong Province and HCM City was opened to traffic on April 30.

The 840-metre bridge including six lanes with four of them for autos is part of the new Dong Nai Bridge project.

After completion, the travelling time from Bien Hoa City centre to Vung Tau intersection and national highways 1 and 51 will be reduced to only 5-10 minutes instead of nearly 30 minutes, according to the Construction Corporation No.1 (CC1) as the project investor.

The bridge will also help ease traffic congestion in Bien Hoa City and traffic density at the city's eastern gateway.

In addition to An Hao Bridge, Dong Nai Province will build a route linking highways 1 and 51 with Highway 1K to shorten the distance from Bien Hoa City to other southeastern provinces. The total investment of An Hao Bridge and the section from An Hao Bridge to Buu Hoa Bridge and then to Highway 1K is VND1 trillion (US$44.05 million).

Motorbikes and seven-seat cars but not trucks and other heavy vehicles are allowed to travel through the bridge.

Some other projects such as Vung Tau tunnel, Amata flyover and Tam Hiep tunnel have been put into use to reduce traffic congestion at the gate leading to HCM City.

http://english.thesaigontimes.vn/53731/An-Hao-Bridge-opened-to-traffic.html

Asian software designers to take part in Apec App Challenge 04/May/2017 Intellasia| VN Economic Times

Participants to develop app for MSMEs, with winners announced on May 19 in Hanoi. Software and website designers from Asia, including Vietnam, will gather together in Hanoi on May 18-

19 to compete in the Apec App Challenge, the Vietnam News Agency reports. The event will be co-organised by the Ministry of Industry and Trade, the Asia Foundation, and Google

in the run-up to the 23rd Apec ministers Responsible for Trade Meeting slated for May in the capital. Over the course of 24 hours, participants are required to develop a free app on a mobile phone or website

to help micro, small and medium-sized enterprises (MSMEs) leverage the internet to export to foreign markets.

Winners will be announced on May 19. minister of Industry and Trade Tran Tuan Anh will present awards to the winning team at the Apec conference on trade and innovation held on the same day.

The theme of the contest is significant to the Asia-Pacific region as MSMEs currently make up 98 per cent of all businesses in the region and employ two-thirds of the region's workforce.

The event aims to seek new solutions to strengthening comprehensive development, innovation and sustainability of regional economies as well as to promote the promulgation of policies targeting creativity and innovation in addressing trade issues.

http://vneconomictimes.com/article/vietnam-today/asian-software-designers-to-take-part-in-apec-app-challenge

Social networks most popular for mobile internet users

04/May/2017 Intellasia| VNS

More Vietnamese mobile internet users access social networks daily than any other activity with their device, reported Appota in its report on the Vietnamese mobile market in the first months of 2017.

Some 94 per cent of mobile internet users accessed social networks daily, with other popular uses text messaging (91 per cent), searching (87 per cent), entertainment (73 per cent), music (72 per cent), games (67 per cent) and news and weather (65 per cent).

Less popular activities included shopping and e-commerce (43 per cent), travelling (42 per cent) and reading (39 per cent).

Vietnam ranks 16th among the 20 countries with the most internet users in the world with 49 million people, the report said. The country also has 38 million social network users.

The number of people using mobile only to access the internet in Vietnam, especially from 18 to 34 years old, is higher than those using computers or various devices.

The ratio is quite high compared to other countries in the region such as Singapore and Malaysia, said the surveyor.

In addition, Android users in Vietnam account for 68 per cent of total smart phone users, while iOS users make up 25 per cent.

Appota also revealed the most downloaded messaging applications in Vietnam last year. Zalo ranks first with 80 per cent of users having the app on their phone, followed by Facebook Messenger with 73 per cent, Viber 40 per cent, Skype 37 per cent and Line 18 per cent.

Appota said that it collected data on the mobile market with help from Google. It also consulted documents from other sources such as mobile analyst Euromonitor; Q&Me, Apteligent, App Annine and Comscore to have a complete report.

Appota is the leading mobile platform provider in Vietnam with more than 30 million users, is partners with over 15,000 developers, advertisers, and merchants worldwide, and operates in Hanoi, HCM City, Indonesia, and Singapore.

Last year, Appota was selected as one of only four companies in Asia to work with Google in deploying its Mobile Ad Exchange platform.

Appota last month also announced that it finished the first closing of a Series-C funding round from two preeminent investment funds from South Korea, Korea Investment Partners (KIP) and Mirae Asset Venture Investment.

This is Appota's third funding round since its inception more than five years ago. Appota secured a series A round from VNP-Group in 2012, and a series B round from GMO Global Payment Fund and Golden Gate Ventures in 2014.

http://bizhub.vn/tech/social-networks-most-popular-for-mobile-internet-users_285887.html

Consumers prefer shopping at supermarkets on holiday 04/May/2017 Intellasia| The Saigon Times

The purchasing power decreased markedly at markets during the four-day holiday ending on May 2 but increased at supermarkets due to widespread promotions.

The number of shoppers at Hiep Binh, Hiep Binh Chanh and Binh Trieu markets in Thu Duc District, Ba Chieu Market in Binh Thanh District and Can Cu Market in Go Vap District decreased by 10-50 percent from April 29 to May 1.

Nguyen Van Hung, owner of a pork stall at Hiep Binh Market, said that pork consumption decreased to 40 kilos a day on the holiday compared to 100 kilos a normal day.

Tran Thi Hong trading in processed chicken in Hiep Binh market also said the chicken consumption was almost halved. Accordingly, she sold about 25-35 kilos a day on the holiday while nearly 50 kilos were sold on other days.

Nguyen Thi Tinh trading in vegetables at Hiep Binh Chanh market also complained that the number of shoppers was reduced by half, so the sales also fell sharply. She sold only 20-30 kilos in comparison with 40-50 kilos on normal days.

A representative of Hoc Mon agriculture wholesale market noted that the amount of commodities sold at the market reduced significantly due to the decreasing demand of consumers.

However, at some supermarkets such as Co.opmart, Big C, Lotte Mart and Emart, sales were strong during the holiday.

Doan Diep Binh, public relations manager at Lotte Mart, said that the purchasing power increased by 10-15 percent during the holiday. Most consumers went shopping for fresh food such as meat, fish, seafood, fruits and vegetables as well as confectionary and canned food on weekend evenings. The prices of most items were stable.

Lotte Mart's kidzone, cinema, bowling and coffee shop area also attracted a large number of families to visit and have fun during the sultry holiday, Binh added.

Vo Hoang Anh, marketing director at Saigon Co.op, said that the purchasing power at Co.opmart soared by two to four times against normal days. Fresh food, processed food, frozen food, beer and soft drinks were consumed drastically. In addition, household appliances and fashion products also had the double purchasing power due to the promotion on Co.opmart's 21st birthday.

On the holiday, many supermarkets offered discounts of 5-49 percent for more than 1,000 types of essential consumer goods.

http://english.thesaigontimes.vn/53729/Consumers-prefer-shopping-at-supermarkets-on-holiday.html

Agro-tourism model lures visitors to Dong Thap 04/May/2017 Intellasia| VNS

Lotus has long been an agricultural plant in ThapMuoi district, Dong Thap province. The beautiful lotus ponds is Dong Thap's best resource for tourism development.

Realising the huge tourism potential, Nguyen Truong An in My Hoa commune, ThapMuoi district has turned his 2-hectare lotus pond into a tourism site, earning some thousands of USD more per year.

Sa December city is famous for impressive flower gardens, which makes the city known as the "Mekong Delta's flower capital". Besides economic value from selling flowers, the gardens have been developed into stunning tourism sites.

Tran Thanh Hung has opened the first homestay model in town within his 3,000-sq.m garden. His homestay has so far attracted 300 visitors, both domestic and foreign.

The town of Tan Thuan Dong in Cao Lanh City is an islet on the Tien River. Vast gardens of fruit-trees, such as mango, orange and longan attract visitors to go sightseeing and experience farmers' life. The locality also offers recreational activities like folk singing and dancing, cultural performances alongside signature dishes, leaving visitors with unforgettable memories.

There are now more tours to Dong Thap which offer trips to explore beautiful flower villages, fruit-tree gardens, and lotus fields, turning the province into one of the tourism hubs of south Vietnam.

http://www.vir.com.vn/agro-tourism-model-lures-visitors-to-dong-thap.html

Beaches, eco-tourism spots packed with holiday revellers 04/May/2017 Intellasia| VNS

Tourist spots, hotels and amusement venues, and buses and ferries across the country were packed with holiday makers during the four-day holiday that ended yesterday (May 2).

The sunshine and hot weather in the south made it suitable for sea-related tourism and eco-tourism. Hotels in Vung Tau, Mui Ne and Nha Trang, which have famous beaches, operated at full capacity, with

room tariffs hiked to two to three times the normal rates. Major roads in Vung Tau were packed with tourists from the evening of April 29 as an influx began from

neighbouring places like HCM City and Dong Nai and Binh Duong provinces. On the first three days of the holiday around 177,000 people visited the city, according to its Tourist

Zones Management Board. Hotels and resorts in Phan Thiet were fully booked from April 28 to May 2, according to the Binh Thuan

Province Department of Culture, Sports and Tourism. Most high-end hotels in the Ham Tien-Mui Ne Tourist Zone operated at 90-95 per cent of capacity. But hotels said room rates and other services were only 10-20 per cent higher due to advance booking. Nha Trang welcomed around 650,000 visitors during the past four days, a significant increase compared

to last year, according to the local Department of Tourism. International tourist numbers rose by 28 per cent, with a majority coming from Russia and China. Da Lạt also saw a large influx of visitors and a resultant traffic congestion on major roads and large

crowds at popular tourist spots. On April 30 and May 1, the Valley of Love (Thung Lung Tinh Yeu) and Flower Garden, two famous

tourist attractions, respectively received more than 15,000 tourists and 12,000 visitors. The number of tourists visiting eco-tourism destinations in Tien Giang and Ben Tre provinces in the Cuu

Long (Mekong) Delta surged an estimated three-fold, with most of them being from HCM City. They went on tours on the Tien River and visited Thoi Son and Phụng islands where they enjoyed

authentic Delta cuisine and specialties such as honey and coconut candies. The My Tho tourist wharf in Tien Giang Province served nearly 3,000 visitors going on cruises on the

Tien River daily. The Dong Tam Snake Farm, Vinh Trang Pagoda, Tan Thanh beach, Dong Hoa Hiep ancient village and

Thoi Son islands also received a large number of visitors. The prices of tourist services in Tien Giang and Ben Tre provinces remained unchanged from normal

days. Overloaded ferries On May 1 dozens of thousands of passengers and vehicles waited in long lines at the Binh Khanh Ferry

in HCM City's Nha Be District to cross the river into Can Gio District. Though all nine ferries were operating, they failed to cope with the demand, Nguyen Tan Hao of the

Voluntary Youth Public Benefit Service Company said. Motorbikes had to wait 15-20 minutes to get into a ferry while it took 45 minutes to one hour for cars, he

said. Around 55,000 passengers used the ferries on May 1, double the figure on normal days. The number of passengers at the Cat Lai Ferry in District 2 topped 99,000 on April 30, a record number. The average number has since declined to 70,000. http://www.vir.com.vn/beaches-eco-tourism-spots-packed-with-holiday-revellers.html

The 'cracks' in the family-run business model

04/May/2017 Intellasia| Vietnamnet

The family-run business model has certain vulnerabilities and is prone to breakdowns that can lead to serious consequences.

Analysts have said that Kao Sieu Luc 'played fair' as he continued providing sandwiches to the shop chain run by his ex-wife until she could build new workshops and stabilise the labour force.

After the divorce, Kao left with empty hands, while the Duc Phat brand which he and his wife developed for 20 years was taken over by his wife. With $400, he started his business from scratch with ABC Bakery.

After 10 years of development, ABC now has 33 shops and big loyal clients that everyone would dream of, such as Mc Donald's, Carls Jr., Burger King and Dunkin' Donuts, some coffee chains such as Starbucks and The Coffee Bean & Tea Leaf and large supermarket chains such as Aeon, FamilyMart and Circle K.

ABC Bakery is also developing a chain in Cambodia. ABC Bakery is one of the typical stories about family-run businesses. However, analysts commented that

not all business families can break up so gently. In most cases, family-run businesses are divided by disagreements over ownership, division of property and other interests.

The two co-founders of Trung Nguyen coffee brand, for example, had a noisy divorce. The Binh Duong Planning and Investment Plan in 2016 decided to abrogate Dang Le Nguyen Vu's (the husband) legal representative status in Trung Nguyen Instant Coffee, which owns the G7 brand, and gave the status to Le Hoang Diep Thao (the wife).

Diep Thao is the founder and now holds the post of CEO of TNI, a company headquartered in Singapore. Thao's TNI exports products to over 60 countries in the world, including the US, China and Thailand.

According to Euromonitor, G7 now accounts for 4.7 percent of the market share, far behind Nestle's and Vinacafe Bien Hoa's market shares of 38 percent and 37 percent, respectively.

A branding expert commented that successful companies tend to develop into public companies with family members holding shares instead of holding the management rights.

The disputes over businesses and assets after divorce show the weak side of family-run businesses compared with joint stock companies.

The divorce case between Tran Van Muoi and Pham Thi Huong Giang of the Nam Sao International Group was very noisy because it affected the group's operation. The case stirred up the public as the disputed assets were worth VND2 trillion. Meanwhile, Giang claimed that her husband dispersed and hid assets.

The most expensive divorce case was the one related to the couple owning Bao Son Group Bui Duc Minh and Nguyen Thanh Thuy, with total assets worth VND10 trillion.

http://english.vietnamnet.vn/fms/business/177291/the--cracks--in-the-family-run-business-model.html

Firms compelled to issue e-invoices from 2018 05/May/2017 Intellasia| AFP The general Department of Taxation has ruled that from 2018, firms with chartered capital of more than

VND15 billion must issue electronic invoices and periodically send tax offices data on the issued invoices. Aiming to have 90 percent of enterprises issuing e-invoices by 2020, the regulation will apply to

enterprises in industrial parks, economic zones, export processing zones, high-tech zones, non-business public units having production or commercial activities as prescribed by law and newly established enterprises.

From early 2019, many other types of enterprise, including household businesses with revenue of more than VND3 billion, will be forced to issue e-invoices and those with tax codes provided by tax authorities.

This is the roadmap proposed by the general Department of Taxation under the Ministry of Finance in a proposal for a decree replacing Decree No. 51/2010/ND-CP and Decree No. 04/2014/ND-CP on invoices for sales of goods and services.

According to the Ministry of Finance, the number of businesses using e-invoices has increased significantly over the past few years, rising from 30 enterprises in 2011 to 331 in 2015 and 656 in 2016. The number of electronic invoices issued has also increased sharply, from 9,014 in 2011 to more than 277 million in 2016. E-invoicing will benefit enterprises as it will save time and cost, and improve production efficiency, service quality and competitiveness.

The Ministry of Finance said that at present, information technology infrastructure can meet the needs for issuing electronic invoices.

In particular, data of the Ministry of Information and Communications shows that there were more than 43.9 million 3G subscriptions and 9.3 million broadband Internet subscriptions nationwide by January 2017. 3G is available in all of the nation's 63 provinces and cities while 4G services are also being expanded.

Electronic tax filing and payment services have been adopted by 576,056 enterprises, accounting for 99 percent of the total in operation.

An electronic invoice containing data on sales of goods or services is issued, sent, received, stored and processed electronically. Electronic invoices must comply with the country's legal regulations and be issued and processed by the computer systems of organisations which have been granted tax codes.

http://english.thesaigontimes.vn/53754/Firms-compelled-to-issue-e-invoices-from-2018--.html

Franchise of Vietnamese brands just in initial stage: insiders 05/May/2017 Intellasia| VNA

About 200 brands have been franchised in Vietnam over the last decade, but the franchise of Vietnamese brands is just in the initial stage at present, insiders said at a workshop in HCM City on May 4.

They shared the view that although Vietnam is assessed as potential for franchising, businesses need strategies to succeed since it is very difficult to develop a franchised brand.

Nguyen Phi Van, head of the board of directors at Retail & Franchise Asia, said Vietnam's franchise market will become more and more vibrant in the next few years with the landing of global and regional brands.

Some young Vietnamese startups with new brands have been asked to franchise their brands, which is a positive sign of Vietnamese brand franchising. However, they should gear up internal strength and a strong support system before franchising, she noted.

Le Thi Ngoc Thuy, director of the IQ Plus Joint Stock Company and representative of brand Viva Star, said if enterprises lack a good strategy and thorough preparations when they begin franchising, they will encounter problems as franchisees become involved too much in the management and operation of franchised brands.

She took store design as an example, elaborating that if franchisees change store design too much, it may alter brand recognition.

Echoing the view, Pham Ngoc Liem, who owns brand LeeAndTee, said without a clear development strategy and preparations, it will be hard to reach consensus between franchisers and franchisees when they need brand restructuring.

Lawyer Ho Huu Hoanh from the Viet Franchise law firm recommended companies make franchise contracts with concrete regulations, have risk prevention measures, and keep franchised brand development policies consistent.

According to the Ministry of Industry and Trade, a number of foreign and domestic brands have been successfully franchised in Vietnam, especially in retail, cuisine, restaurant-hotel, and food-beverage.

The franchise of retail brands is forecast to continue expanding by 25 percent each year. Meanwhile, cuisine franchising will enjoy an annual growth of some 15 percent.

http://en.vietnamplus.vn/franchise-of-vietnamese-brands-just-in-initial-stage-insiders/111200.vnp

Vietnam remains destination for investors 05/May/2017 Intellasia| VNA

Up to 78 percent of businesses have been positive about Vietnam's economy, according to a survey on the private equity (PE) sector conducted by Grant Thornton Vietnam, which provides assurance, tax and advisory services.

In this survey, the 16th edition, the respondents expressed optimism towards Vietnam's investment outlook with regards to the increase in investment attractiveness and level of investment activities. Vietnam has been seen as the second most preferred destination for PE investors in Southeast Asia.

The transportation and logistics sectors gain more interest from PE investors, increasing seven percent compared to the firm's previous survey.

Meanwhile, the retail and food and beverage maintain the position as the top two most attractive sectors for PE transactions, the survey revealed.

With the growth of the middle income class among its population of 94 million, the influence of western lifestyle and increasing disposable incomes, food and beverage remains the prominent industry in terms of rapid growth and foreign investment inflow.

Besides the increase of e-commerce, the sector is growing and expanding rapidly in terms of retail store chains, distribution channels, and retailing culture which is attracting attention from foreign retail giants such as Emart, AEON, Big C, Lotte and 7-Eleven which has entered the market through franchise agreements.

In terms of sources of deals, the equitisation of state-owned enterprises (SOEs) has made its way to the top, with 52 percent agreement from PE participants.

Equitistation provides PE investors with opportunities to penetrate the Vietnamese market through investment in key areas such as telecommunications, oil and gas trading, infrastructure and retail.

It is forecast that there will be a focus more on quality of companies being equitised rather than quantity in 2017.

The report shows that in terms of investment attractiveness, PE investors consider Vietnam's investment environment to be more attractive and extremely attractive accounting for the largest proportion, with 72 percent illustrating a similar trend as in 2016.

Despite the expected demise of the Trans-Pacific Partnership (TPP) agreement, the respondents claimed that it will not negatively impact the Vietnam economic situation as Vietnam is party to 16 other free trade agreements, including those with the Republic of Korea (RoK), the EU, Russia and Asean.

Therefore, 87 percent of survey responses foresee an increase in the level of investment activity in Vietnam in the next 12 months.

The formation of the Asean Economic Community is also expected to bring about more opportunities for Vietnam.

Apart from advantages such as abundant labour force and the development of the middle income class, the survey, however, pointed out that corruption, constraint of the national budget, weak competitiveness from small-and medium-sized enterprises as well as restrictions on infrastructure are potential problems for the economy in the future.

http://en.vietnamplus.vn/vietnam-remains-destination-for-investors/111184.vnp

Changes needed in energy strategy: expert 05/May/2017 Intellasia| VNA

It's time for Vietnam to change the mindset on and approach to energy strategy, while considering the saving of energy in production and consumption as a must instead of a choice, stated Assistant ProfDrTran DinhThien, head of the Vietnam Institute of Economics.

Addressing the "Vietnam EnergyForum: Present and Future" held by the Ministry of Industry and Trade in Hanoi on May 4, Thien said that energy wasting in using, which leads to a high energy cost, reduces the country's competitiveness.

Vietnam's growth model has long been dependent on exploiting natural resources, traditional industries, energy-consuming and low technology sectors, he added.

Thien noted that currently, energy consumption in the cement industry is 50 percent, while that of the pottery industry is 35 percent;garment and textile, 30 percent; steel, 20 percent; and agriculture, 50 percent.

He also stressed the need to promote the reasonable use of energy in a smart economy, along with the application ofmodern technology in energy production and consumption to reduce cost.

Meanwhile, experts at the event highlighted that energy strategy should be included in technology strategy to deal with the tension of energy supply and demand, while prioritising the development of high technology industries instead of "classical" ones that require large amount of natural resources and energy.

It is also necessary to focus on a green and safe energy system with the key pillar being renewable energy, they said.

According to the Ministry of Industry and Trade, Vietnam is facing challenges in energy as the energy demand is surging amidst stricter environment requirements that put pressure on the ensuring of energy security.

From an energy exporter, Vietnam has become a country importing energy, added the ministry. It noted that the energy demand in the recent five years rose about 9.5 percent each year, which is

forecast to continue to increase in the next 15 years. At the same time, energy consumption increases averagely 13 percent each year in the 2006-2010 period and 11 percent in the recent five years and about 10 percent in the future.

A representative from Department of Industry under the Central Committee's Economic Commission said that along with ensuring energy supply through the comprehensive development of the energy system, it is crucial to re-assess the trend of energy using in the world and apply modern technology and saving energy.

In order to reach the target of 1-1.5 percent reduction in energy loss each year, stronger measures are needed in energy saving nationwide, said the official.

Deputy minister of Industry and Trade Hoang Quoc Vuong said that the ministry is concentrating on building policy and mechanisms with approach of economical and effective energy using and application of environmentally-friendly technology in energy production towards a low-carbon economy.

http://en.vietnamplus.vn/changes-needed-in-energy-strategy-expert/111182.vnp

Phu Quoc on track to be 'smart city' by 2020 05/May/2017 Intellasia| VNS

The Kien Giang Province People's Committee has approved making Phu Quoc a smart city by 2020. The project will be based on the Vietnam Post and Telecommunications Corporation (VNPT)'s

information communications technology infrastructure and the province's e-governance. It seeks to develop Phu Quoc island into a smart, hospitable and safe city that attracts tourists, improve

the quality of services available to local residents and tourists and urban management. The most important factor in making Phu Quoc a "smart" city is information and telecommunications

infrastructure, which must be capable of supporting all functions of e-government and smart services in tourism, transport, environment, healthcare, education and finance.

The project will invest in an optic-fibre network, develop and expand 4G services in the island, provide free wi-fi, usher in e-governance, set up online management of visitors, and offer online management of healthcare and education, among other things.

"The project will improve the quality and effectiveness as well as reduce the cost of State management; provide convenient services and ensure safety for tourists and locals and create breakthroughs for the socio-economic development of Phu Quoc Island," Mai Van Huynh, deputy chair of the Kien Giang People's Committee, told the Dau Tu (Vietnam Investment Review) newspaper.

VNPT has signed many agreements and worked closely with agencies in Kien Giang and Phu Quoc Island and ministries.

For the online management of visitors, VNPT has trained over 90 police officers and workers in 200 guest houses and hotels on the island. Hotels no longer need to take guests' passports to the local police station for registration.

For monitoring the environment, VNPT has collected information to monitor water bodies, air and noise, and carried out studies to build stations to monitor household wastewater treatment, air and seawater.

VNPT has already installed 20 cameras and wifi equipment in six places around Duong Dong Town and two others in An Thoi Town.

For e-governance, VNPT has reviewed the current e-government model in Phu Quoc, updated it and provided training to staff so that they can migrate to the proposed new emodel.

"VNPT is in various stages of implementing 'smart city' projects in eight provinces around Vietnam," Luong Manh Hoang, deputy general director of VNPT, said. "We will build the best smart city in Phu Quoc."

http://bizhub.vn/news/phu-quoc-on-track-to-be-smart-city-by-2020_285895.html

Kien Giang: WB-funded project helps change old farming practices 05/May/2017 Intellasia| VNA

A World Bank-funded project has improved capacity of agricultural cooperatives in the Mekong Delta province of Kien Giang and helped change the farming practices of local farmers.

According to Le Huu Minh from the management board of the project "Vietnam Sustainable Agriculture Transformation" (VnSAT) in Kien Giang, thousands of local farmers have learned new rice cultivation techniques "three reductions, three gains (3R3G)" and "one must, five reductions (1M5R)" during the recent Winter-Spring rice crops. The techniques have helped them reduce costs and improve rice production efficiency and competitiveness, thus increasing their incomes.

3R3G refers to reductions in seed, chemicals, and water; and gains in productivity, quality, and economic efficiency while 1M5R means using registered seeds and reductions in seed, chemical fertiliser, pesticide, water use, and post-harvest loss.

More than 30 pilot farms applying 3R3G technique have been set up to guide farmers on proper use of pesticides and fertilisers in which a cut of 20-80 kilogrammes of seeds, 10-30 kilogrammes of fertilisers and 10-15 percent of pesticides are applied to each hectare of rice. As a result, each hectare yields 0.3 tonnes more and saves 300,000-350,000 VND in cost.

However, many challenges hindered the project's progress, including extreme weather events like drought, saltwater intrusion, and storms; poor irrigation systems; and difficulty in changing old farming behaviors.

Additionally, Kien Giang doesn't have a brand name for local rice produces and still lacks high-quality or organic rice products, affecting the province's export capacity.

Chair of the provincial People's Committee Pham Vu Hong said the province will accelerate communication campaigns to raise farmers' awareness of the project's benefits to resolve the problems. It will also work with companies to scale up rice production.

The province has asked local banks to provide agribusinesses and cooperatives with easier access to soft loans and directed the provincial Department of Trade and Industry to put more efforts into market forecasts and to ramp up trade promotion events to help local rice products access overseas markets.

According the Kien Giang Department of Agriculture and Rural Development, the VnSAT project in the province has investment of over 14.5 million USD, including 9.4 million USD sourced from the Official Development Assistance fund, more than 1.7 million USD from local budget and about 3.45 million USD funded by the private sector.

It has been carried out across over 29,500 hectares of rice in 16 communes of Tan Hiep, Giong Rieng, Chau Thanh, Hon Dat and Giang Thanh districts. About 14,446 farmer households from 46 farm cooperatives have taken part in the project.

http://en.vietnamplus.vn/kien-giang-wbfunded-project-helps-change-old-farming-practices/111175.vnp

Ha Nam aims to attract 150 projects in four years 05/May/2017 Intellasia| VNA

The northern province of Ha Nam aims to lure 130-150 projects to its industrial parks (IP) in 2017-2020, with total investment of up to 50 trillion VND (2.19 billion USD), including 1.5-1.8 billion USD in foreign investment.

Through the projects, Ha Nam hopes to create jobs for about 25,000 labourers, raising the total workers in local industrial parks to about 75,000.

The province targets about 60 trillion VND (2.64 billion USD) in industrial production in the parks in 2020, accounting for 75 percent of the province's total, as well as the full occupancy of Dong Van II, Chau Son, Hoa Mac and Dong Van III support industry park.

In 2020, it is hoped local IPs will pay 3.1 trillion VND (13.6 million USD) to the State budget. Currently, the province is prioritising projects in support industry and processing-manufacturing industry

with advanced and environmentally-friendly technology. To fulfill the goals, Ha Nam is mobilising resources to hasten infrastructure construction in the IPs,

offering clear ground for investment projects, while speeding up the building and upgrade of transport system linking the IPs with national roads, airports and seaports.

The province has also diversified methods of investment promotion, introduced the local investment environment to foreign firms, improved its infrastructure system and human resources quality, and sped up administrative reform.

The locality will also set up a database on enterprises in the support industry to foster business connectivity.

According to Tran Xuan Duong, head of the Management Board of Ha Nam IPs, by the end of the first quarter of 2017, local IPs hosted 262 valid projects, including 160 foreign-invested ones worth over 2 billion USD, along with 102 domestic ones with total investment of more than 14.3 trillion VND (62 million USD).

http://en.vietnamplus.vn/ha-nam-aims-to-attract-150-projects-in-four-years/111167.vnp

New manufacturing orders rise sharply in April 05/May/2017 Intellasia| The Saigon Times

The strong growth of new orders continued to support rises in output, employment and buying activity in the Vietnamese manufacturing sector in April, with a survey-record increase in new business from abroad reported.

According to a Nikkei report released on May 3, the Vietnam Manufacturing Purchasing managers' Index (PMI) was 54.1 in April, down from 54.6 in March but still a solid monthly improvement in the health of the sector at the start of the second quarter. Business conditions have now improved in each of the past 17 months.

A sharp rise in new orders was central to the latest improvement in operating conditions, with new business from abroad increasing at a survey-record pace. The rate of growth in new export orders has now quickened in three successive months.

Panelists linked expansions in both total new business and new export work to strengthening client demand. New orders have increased continuously since December 2015.

Andrew Harker at IHS Markit, which compiles the survey, said a record rise in exports was the key highlight from the latest Vietnam Manufacturing PMI survey as firms once again displayed a good ability to secure new work in international markets.

This success fed through to improvements throughout the sector, with production, employment and purchasing activity all rising solidly in April. The manufacturing sector therefore remains a star performer in Vietnam at the start of the second quarter, the expert said.

Growth of new work led manufacturers to increase production again in April. The rate of expansion was marked, albeit weaker than March's 22-month high.

The rise in production enabled firms to work through outstanding business despite strong new order growth. The fall in backlogs of work was the first since the end of 2016.

Besides, employment increased for the thirteenth successive month as firms responded to new order growth. The rate of job creation eased, but remained solid.

A further impact resulting from the rise in new work was a pick-up in purchasing activity by Vietnamese manufacturers. The rate of expansion remained sharp and contributed to a tenth successive monthly rise in stocks of purchases.

Some panelists mentioned having increased inventories in anticipation of further new order growth in the coming months. Confidence around future rises in new business was also a factor behind continued strong optimism with regards to production over the next year.

Higher demand for inputs encouraged suppliers to increase their prices during April, thereby leading to another monthly rise in input costs. There were also some mentions of higher prices for goods from China.

However, the rate of cost inflation eased to the weakest since last October. Output prices also rose at the slowest pace in six months as charges were increased only modestly. Where factory gate prices rose, this was largely in response to higher input prices.

http://english.thesaigontimes.vn/53745/New-manufacturing-orders-rise-sharply-in-April.html

Minister eases concern over farm produce consumption 05/May/2017 Intellasia| VNA

Minister and Chair of the government Office Mai Tien Dung clarified issues relating to farm produce consumption, especially pork which recently saw its prices slumping during the government's regular press conference in Hanoi on May 4.

On concerns that prices of pork on the hook slid to 15,000 18,000 VND per kilogram but supermarkets still sold them at 80,000 100,000 VND per kilogram, Dung said the PM has directed relevant agencies to determine the causes and adopt measures to prevent similar occurrences.

Deputy minister of Agriculture and Rural Development Ha Cong Tuan said thanks to the involvement of ministries, agencies, businesses and supermarkets, live pork prices have increased by more than 5,000 VND per kilogram and supermarkets adjusted them down 10-20 percent compared to 10 days ago.

Regarding long-term solutions, Tuan said the ministry will focus on ensuring supply-demand, improving food hygiene and safety, arranging chains connectivity and further opening the market to China.

The government also directed relevant agencies to closely oversee temporary import and re-export of farm produce in line with Vietnam's regulations and terms of the trade agreements, especially that of the World Trade Organisation.

Deputy Governor of the State Bank of Vietnam (SBV) Dao Minh Tu said the SBV requested commercial banks offer interest waiver and reduction to stimulate manufacturing. Recently, it also sent delegations to localities with big farming activities and agreed to reschedule debt payment worth 364.7 billion VND (15.85 million USD).

In conclusion, Dung underscored the need to reduce production prices and review shortcomings in State management, especially in planning, pricing information system and market over a long term.

Other issues such as personnel work, illegal construction and land management were also made clear. http://en.vietnamplus.vn/minister-eases-concern-over-farm-produce-consumption/111208.vnp

Garment-textile businesses seek to penetrate Russia 05/May/2017 Intellasia| VNA

With demand to import more than 10 billion USD worth of apparel products each year, Russia is a market with potential for Vietnamese garment-textile businesses.

According to the Vietnam Textile & Apparel Association, businesses have received many jacket and jeans orders from Russian companies in recent years.

The garment-textile industry was predicted to get the most benefits when the free trade agreement between Vietnam and the Eurasian Economic Union came into force in October 2016.

At present, Vietnam exports about 320 million USD worth of apparel each year to Russia, making up roughly 2 percent of the country's total exports.

The figure is expected to exceed 1 billion USD, accounting for 10 percent of total exports, in the next few years.

Chair of the Vietnam Textile & Apparel Association Vu Duc Giang said Russia has a cold climate, so its consumers have big demand for jackets and jeans.

However, the problem is how to bring the products into the market at competitive prices since Russia still faces economic difficulties and sales of apparel in the market are not as strong as in the European Union, Giang said.

Additionally, the geographical distance between Vietnam and Russia will make it difficult for businesses to complete payment, he said, adding that more bank branches should be opened in Russia for direct payment between businesses.

He advised businesses to study the market thoroughly before exporting to Russia and other northern European nations, as well as to make regular contact with partners for long-term cooperation.

Enterprises should have business strategies to cope with fierce competition on quality and price in the market, he noted.

It is necessary to create high-quality products, improve designs, and build brand names, he said. According to the Vietnam Customs, garment-textile export turnover to Russia increased by over 30

percent year-on-year to reach 110 million USD in 2016. http://en.vietnamplus.vn/garmenttextile-businesses-seek-to-penetrate-russia/111190.vnp

Vietnam fruit exports have to meet high standards in foreign markets 05/May/2017 Intellasia| Vietnamnet

Vietnam is well known for its tropical fruits, but it has to meet many strict requirements by importing countries in order to export its fruit.

GDC said Vietnam's fruit export turnover in 2016 reached $2.46 billion, a sharp increase of 33.6 percent compared to 2015. Turnover has been increasing in the last three years: by 28.4 percent in 2014 and 23.7 percent in 2015.

China remains the biggest market for Vietnam with exports increasing by 45.8 percent to $1.74 billion. China bought 70.4 percent of Vietnam's fruit exports, while the US only consumed 3.4 percent, Japan 3.1

percent and South Korea 3.6 percent. However, in order to obtain the modest figure of 3 percent, Vietnam had to go through some hardships

because the markets are all choosy. As for the Japanese market, for example, only some kinds of fruits, such as bananas, mango and dragon

fruit, can be exported to the country as they have met the requirements set in Japan's plant quarantine law. Vietnam's Ministries of Industry & Trade (MOIT) and Agriculture & Rural Development (MARD) had

to spend many years to persuade the Japanese side to remove the technical barriers against certain kinds of fruits.

The company owned by Vo Quan Huy became the first Vietnamese enterprise selling Fohla brand bananas to Japan. About 2-3 containers of bananas are exported to the Japanese market each week.

Huy said that before signing the contract on buying bananas, the Japanese side sent staff to his banana farms to take soil, water and air samples to bring to Japan for testing 230 physiological and biochemical indicators.

The aim was to make bananas safe, clean and delicious, with no heavy metal residue, no bacteria, no pesticide residue and no growth stimulus.

Australia is another fastidious market. It sets high requirements on farm produce imports, especially requirements on radiation that not many Vietnamese companies can satisfy.

To date, only two kinds of fresh fruits have licenses to enter the Australian market litchis (received in 2015) and mango (2016).

A senior executive of a fruit export company said there is always an American expert from FDA in charge of checking fruit samples before putting fruit into radiation.

If the expert discovers soil or insects on fruits, the whole consignment will be refused. The company once had one consignment of rambutan rejected.

http://english.vietnamnet.vn/fms/business/177381/vietnam-fruit-exports-have-to-meet-high-standards-in-foreign-markets.html

Big investors pour money into agriculture, organic food

05/May/2017 Intellasia| Vietnamnet The repeated alarms about unsafe food has brought great opportunity to several big investors, who have

been pouring money into organic food projects. 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 news, organic food, VinEco, steel manufacturers

In mid-March, Vinamilk, the nation's leading dairy producer, inaugurated Vinamilk Organic Da Lat, the first organic milk cow farm in Vietnam that meets European standards. With initial investment capital of VND200 billion, the farm will raise 500 milk cows.

Vinamilk began building the farm in 2014. Its CEO Mai Kieu Lien then believed that organic milk must be one of the directions for Vietnam's agriculture as consumers are getting choosier and willing to pay more to get safe food.

In late 2016, Vinamit, the dried fruit producer, received a certificate on organic cultivation and processing in accordance with the US Department of Agriculture's USDA Organic and EU's Ecocert EU standards.

Vinamit's general director Nguyen Lam Vien said organic food is becoming more popular in the world which has prompted Vinamit to focus on organic food to satisfy increasingly high demand.

According to the Control Union, which certifies organic food in accordance with the US and EU standards in Vietnam, the growing trend of organic agriculture shows that clean, healthy food is now on top priority. About 150 units in Vietnam have been recognised as meeting organic standards for crop and livestock products.

Not only producers but retailers have also injected money into organic food production. Saigon Co-op, one of the largest retail chains with large market share in the south, is planning to bring

internationally recognised organic food products into its distribution chain. Saigon Co-op deputy general director Pham Trung Kien said the retailer has committed to cooperate with

farmers to create farm produce without harming the environment, soil, water sources and surrounding organisms.

In the near future, products with Co-op Organic brand such as rice, vegetables, water spinach, cucumber, tomato and black tiger shrimp cultivated according to American and European organic standards will be sold at some Co-op supermarkets, including ones on Ly Thuong Kiet, Cong Quynh and Dinh Tien Hoang streets.

Christian Henckes from ICMP (integrated coastal management programme), implemented by GIZ on behalf of German and Australian governments in Vietnam, commented that import countries want high-quality shrimp and other products from Vietnam and they now target organic products.

In order to have products that can enter the world market, Vietnamese manufacturers have to satisfy requirements without harming the environment.

However, it is not easy to organise organic production. Lien from Vinamilk said it took Vinamilk many years to find the 76 hectare land area suitable for organic milk cows. It is also necessary to follow strict requirements in production, with no growth hormones, no antibiotic residue and no pesticides.

http://english.vietnamnet.vn/fms/business/177463/big-investors-pour-money-into-agriculture--organic-food.html

VN shrimp brand: difficult, but not too late 05/May/2017 Intellasia| VNS

Vietnam is the third largest shrimp producer and the largest giant tiger prawn producer in the world. Shrimp is a major export item, but it lacks brand value. Dao Duc Huan explains why. The director of the Agricultural Development Centre also tells Vietnam News Agency it is not too late to build a national brand for Vietnamese shrimp in the global market.

Vietnamese shrimp products have been exported to 90 markets worldwide. Recent years have seen high growth in shrimp exports. Does Vietnamese shrimp have brand identification in the world market?

In 2016, Vietnam earned $3.1 billion from shrimp exports, overtaking Thailand as the world's largest shrimp exporter. Major shrimp export markets included the US, the EU and Japan.

Exported shrimp products do have some brand value, but it is limited to importers and distributors, not customers.

Brand is more than a popularity marker, it denotes customers' confidence in the brand name, hence its products. It is a word or words that not only identify a product, but also its manufacturer. It displays the origin and quality of products in the market.

Is too late to discuss the building of a national brand name for Vietnamese shrimp products at present? Many factors go into building a brand name, including the ability to control production to reach quality

and other standards that the market demands. In Vietnam, the development of shrimp aquaculture over past years has helped enterprises learn their

production abilities and product advantages. Another factor is processing ability and market expansion, especially development of products joining

global value chains. These abilities require enterprises to reach certain benchmarks in finance, human resources and

technology, and to have the determination to enter and survive in the global market. A brand for Vietnamese shrimp will only be meaningful when our products go to consumers with clear

identification and quality assurance, our supply is stable and we have won customers' confidence. So, it is late, but not too late to build a brand for Vietnamese shrimp. The conditions and opportunities

still exist. What is the most difficult thing about building a brand name for Vietnamese shrimp now? The most difficult thing would be to build an image for "Product of Vietnam," setting a "standard" for the

brand. Vietnam produces many kinds of shrimp, including as white shrimp, black tiger prawn and sea shrimp.

These have been exported to many markets in the world. Now, the nation must choose general standards in quality, nutrition and food safety and other commercial

standards to build a brand for Vietnamese shrimp. This is the biggest challenge, as with other agricultural products, because major export markets like the

EU, US and Japan have different processing methods, tastes and controls. Our general standards for Vietnamese shrimp should meet demands in all export markets.

Secondly, production control, including varieties, diseases and environment, is still a big challenge in shrimp aquaculture. Production costs are high, and it carries high risk without the capacity to control diseases and other variables. So regularising all of this is a challenge when we try to build a brand for Vietnamese shrimp.

The third factor is the perseverance, determination and cooperation among all stakeholders, including farmers, processing facilities and trading enterprises in building the brand.

We have seen that for many farming products, enterprises have focused on domestic rather than foreign competition. They can sell their products, but a failure to build and maintain standards will reduce the reputation of both local products and the nation.

What about the variety factor? In Vietnam, parent shrimp are provided by nature or they are imported. The quality of parent shrimp is

still unstable though the government has investment to development of parent shrimp. We are yet to use modern methods in choosing, producing and supplying shrimp varieties. Our

production costs remain high and the aquaculture infrastructure in several regions has not reached required standards.

Vietnam has 2,422 farms producing brackish water shrimp, supplying 100 billion shrimp varieties each year but the supply has only partly met domestic demand at present.

Meanwhile, the markets receive and supply varieties without proper origin and quarantine processes. This has exposed farmers to many production risks.

For instance, the government has had to look for ways to stop the practice of injecting impurities into shrimp, harming the reputation of Vietnamese seafood.

The Ministry of Agriculture and Rural Development plans to improve its management and policies to promote production and processing of quality seafood, including shrimp.

What should the agriculture sector do to reach the shrimp export target of $10 billion by 2025? The agriculture sector should restructure shrimp aquaculture areas according to natural conditions and

advantages of each region, and expand cultivation in areas while taking steps to avoid or minimise the risk of diseases and other harmful factors. The sector has to apply scientific and technological advancements in shrimp production, including disease control.

The shrimp industry should also improve product value by controlling quality and production processes to meet the requirements of demanding markets. It should also develop safe and environmentally-friendly shrimp, as also value-added products.

http://english.vietnamnet.vn/fms/business/177732/vn-shrimp-brand--difficult--but-not-too-late.html

Golf returns drive developer interest 05/May/2017 Intellasia| VIR

With booming golf resort development across the country, Vietnam has come a world-class destination for golf tourism. Bich Thuy reports.

Nguyen Van Minh, a 45-year resident in Hanoi, is planning to start playing golf soon after months of consideration.

"In the past, golf was a luxurious sport, but now it has become a popular and favoured sport among Vietnamese like me thanks to rising incomes, more leisure time, and easier means of transport," Minh said.

Like Minh, many of his friends are now members of golf clubs. Golf is an increasingly attractive sport in many parts of Vietnam, regardless of a fall in golf's popularity in other international markets.

"Reductions in golfers will generally occur in well-established markets, where trends change and people have many recreational activities on offer to choose from. Vietnam goes against this trend as the game is still growing here both domestically and as a destination for inbound golf tourism," Timothy Kevin Haddon, general manager of the Ba Na Hills Golf Club, told VIR.

Echoing Haddon's view, David Hill, general manager of the 100 per cent foreign-owned The Da Lat at 120, said "Vietnam has a strong domestic market to utilise golf courses in major cities, and this can be witnessed by the creation of night time golf at an increasing number of courses to extend the business day. This will also allow players to enjoy this wonderful game in cooler temperatures in the low land courses."

Golf has become a lucrative component of Vietnam's tourism industry. According to Hill, Vietnam is well placed to benefit from increased inbound golf business. Traditional strong markets like Thailand and Malaysia are established, and golfers are now looking at combining destinations for multiple courses. This provides Vietnam with an opportunity to provide through direct connections to other major cities in the region a second set of courses in HCM City, Hanoi, Danang, and Da Lat, connecting, for example, to courses in Thailand, Malaysia, or Singapore.

"Golf tourism is booming, particularly in the Danang region. With all the new golf courses being built, this country has without question become a world-class destination for golf," said Evans Mahoney, director of golf at the BRG Kings Island Golf Resort. Seeing huge potential, investors have built costly integrated resorts with world-class golf courses throughout the country in the past years to tap into the trend.

Golf courses are now scattered through the country, and they carry the endorsements of legends such as Jack Nicklaus, at the BRG Legend Hill Golf Resort near Hanoi; Greg Norman, at The Bluffs Ho Tram Strip near HCM City; and Nick Faldo, at the Laguna Lang Co integrated resort in the centre of the country.

In addition to these, the number of Vietnamese-owned, integrated golf resorts has increased, with more influential Vietnamese property developers joining the trend.

"I think the government has approved plans for 99 or 100 courses by 2020 or [thereabouts]. In order to accommodate players coming into the country and the growing domestic market we need more golf courses. The current number of 40 courses just isn't enough to host everyone," Mahoney said.

Local investors in the lead Around 2010, the majority of golf courses in Vietnam were owned by foreign investors. However, the

situation has changed in recent years as many more Vietnamese enterprises have joined the industry.

Industry insiders said that at the time, many foreign golf course investors found difficulties in operating their businesses effectively, because of the formerly small number of golfers and the gloomy real estate market.

Among the 28 operational golf courses with 18 holes or more, less than 10 courses those located in cities and vacation destinations like HCM City, Danang, Hanoi, Hai Phong, and Quang Ninh broke even or made a small profit.

According to the Vietnam Golf Association (VGA), a hole carries at least a $1 million investment, excluding land rentals and site clearance. Thus, the investor of an 18-hole golf course in Vietnam could only get an investment return when a course hosts at least 30,000 players a year. To get a 10 per cent profit, it must have 33,000 players a year.

Several investors earlier said that, although the fees for golf club members and other annual service fees were relatively expensive, they were not able to make back their investment in the first years of operation.

In spite of that, the involvement of Vietnamese firms in the golf course business has created a new dynamic, as many have met with great success.

According to Vingroup's financial statement in the third quarter of 2016, the giant property developer made a net revenue of VND10.65 trillion ($484.09 million), up 47 per cent on- year. This impressive result was attributed to contributions of integrated golf resorts in Ha Long, Nha Trang, and Phu Quoc.

Since opening the first golf-integrated resort the Vinpearl Resort Nha Trang in 2003 Vingroup has opened many more, including the Vinpearl Phu Quoc Resort & Golf and the Vinpearl Luxury Nha Trang.

The other senior player is FLC Group the operator of integrated golf resorts such as the FLC Sam Son Beach & Golf Resort and the FLC Quy Nhon Resort & Golf which announced a net revenue of over VND4.75 trillion ($215.9 million) in the first nine months of 2016, up 40 per cent on-year.

The good performance of integrated golf resorts was attributed to the recovery of the real estate market and a strong growth in international tourist arrivals.

Vietnam attracted more than 10 million international tourist arrivals in 2016, up 26 per cent on-year, while the number of domestic travellers hit 62 million, according to the Vietnam National Administration of Tourism.

Noticing the impressive golf business growth of firms like Vingroup, other realty developers are not sitting still. In the past two years, the property market witnessed the resort segment entry of newcomers like Sun Group, BIM Group, Empire Group, Eurowindow Holdings, CEO Group, and LDG Group.

In March 2016, Sun Group opened the Ba Na Hills Golf Club in the central city of Danang. The Ba Na Hills Golf Club is the first in Sun Group's chain of golf courses to be constructed throughout

the country. The second phase of the golf course will be completed at the end of 2018. Along with domestic firms, foreign investors are also optimistic about the bright future of the integrated

golf resort segment. As the first and largest world-class integrated resort in Vietnam and an appealing second home

destination Singapore's Banyan Tree-invested Laguna Lang Co is planning the expansion of its golf component.

"Our expansion plans of the destination focus on our existing course. We wish to supplement the challenging aspects of the course with short holes and unique individual holes in and around the Laguna Lang Co integrated resort, so that golf is a genuine part of the DNA of our entire resort," Gavin Herholdt, managing director of Laguna Lang Co, told VIR.

"We would like the neighbouring area around our resort to accommodate another two courses and are hopeful of working with other parties to bring this to fruition," he added.

VinaCapital and Golf Yield Enterprises began construction on the $4 billion Nam Hoi An resort project in April 2016, after years of delays.

"We are strongly interested in the project. Despite the economic woes of 2008-2012, we are still committed to developing the project," said Don Lam, general director of VinaCapital.

Besides the traditional destinations of Phu Quoc and Nha Trang, a remarkable trend in the industry in recent years has been the appearance of golf resort projects in cities and provinces where there had been none. Places such as Danang, Thanh Hoa, Ha Long, Hai Phong, Binh Dinh, Lao Cai, and Vinh Phuc now host such high-end projects as the FLC Quy Nhon Beach & Golf Resort and the Vinpearl Ha Long Bay Resort.

Policy reform is in the pipeline

The Ministry of Planning and Investment (MPI) is seeking comments from relevant ministries for its proposal on applying conditions for golf course business and investment to ensure sustainable and effective operations.

To this end, the MPI is proposing removing Decision No. 1946/QD-TTg of November 2009, covering national golf course development to 2020, thus enabling to shift to state management based on business conditions instead of on planning as the current.

The application of conditions for golf course business and investment activities conforms to the Investment Law of 2014, which states that golf course is a conditional business.

According to the MPI, although Decision 1946 has helped restrain the rampant development of golf courses and increase their operational efficiency, management of golf course investment and business activities have proven problematic.

For example, the locations and investment scales of some golf courses listed in the planning are no longer realistic, not factoring in the specific development conditions of each locality or market demand. The difficulty of on-the-fly adjustments contributes to a lack of sustainability and efficiency.

Decision 1946 also includes specific sanctions regarding the responsibilities of investors in golf course construction. Many failed to meet their agreed-upon schedules, leading to a waste of land resources and public indignation.

"The application of golf course business conditions will increase transparency and remove "ask-give" mechanism in the industry," said a senior MPI official.

http://www.vir.com.vn/golf-returns-drive-developer-interest.html

Vietnam takes heed to Macadamia nut 05/May/2017 Intellasia| SGGP

Lately, the Ministry of Agriculture and Rural Development has liaised with the Vietnam Macadamia Association (VMA) on the prospect of the new agricultural produces.

Agriculture and Rural Development minister Nguyen Xuan Cuong said it needs to make hay while the sun shines to create processing chains to provide for local markets and for export.

Through ten years planted in Vietnam, the tree is proper in the highlands and the northwest region in Vietnam. Currently, total 44,000 tonnes of the nut are consumed globally, accounting for 1 percent of the consumption of all nuts.

Experts said in the future, macadamia industry will have stable development with the growth of 5 percent for long and medium terms. Value of the nut is on upward trend in the world as people's income is improved and the nut is proved be good for people's health.

Professor Hoang Hoe said that farmers can harvest 1 kilogram a tree after three-year planting and it will be 10 kilogram, 20kg, 30 kilogram a tree after seven-year, 10-year and 13-year planting respectively.

With present price of VND100,000 per kilogram, farmers will earn VND10 million yearly per hectare with 100 trees in addition to income from coffee when they planted coffee and macadamia in one hectare.

Turnover of the tree will increase gradually. For instance, revenue of the seventh years will be VND100 million ($4,398) per hectare a year and it doubles and three folds in the tenth year and in the thirteen year while cost of investment is just 10 percent of the revenue.

Through VMA's survey basing on the supplied seeds to farmers in 2016, the country will plant 1.4 macadamia tree in over 3,500 hectare. Many farmers planted the tree and coffee in the same land and have good harvest.

At present, some factories buy the nut for local demand and for export at price of VND100-200,000 per kilogram, higher than in the world because the supply can't meet the excessing demand.

To back farmers, VMA transferred technology and promoted commercial deals with partners as well as sought to build close chains for farm produce to raise supply and attract capital sources.

Additionally, VMA organised groups of farmers to go abroad for learning how to plant and process products as well as invite 80 experts from macadamia association in the nations for consultations.

CEO Australian Macadamia Society Jolyon Burnett highly lauded VMA for its technology guidance and facilitation of bank loan. He stressed that with such moves, Vietnam will exceed the other nations.

General Secretary of VMA Huynh Ngoc Huy said that in its plan, VMA will plant 30 million macadamia trees in the Southeast Asian country within the next ten years producing 350,000-400,000 tonnes earning around $1 billion. It will build 38 state-of-the-art processing factories in the highlands and the northwest region in Vietnam.

VMA in coordination with the Ministry of Agriculture and Rural Development to make a plan for development and techniques of planting, harvesting, preserving and processing.

http://english.vietnamnet.vn/fms/business/177757/vietnam-takes-heed-to-macadamia-nut.html

Business Briefs May 05, 2017 05/May/2017 Intellasia |

* The board of directors of Viet jet Aviation Company (VIC) has approved a resolution to pay a VND 1,000 cash dividend with the date

of record set for May 10 and the payment date May 30. The ex-dividend date is May 9. Besides the cash payment, the low-cost carrier will also offer one free-of-charge air ticket (excluding taxes and charges) on its domestic routes to individual shareholders.

* Superdong Fast Ferry Kien Giang Company (SKG) will focus on improving service quality rather than reducing ticket prices

to cope with increasing competition on existing routes, particularly on the Rach Gia-Phu Quoc route. In its long-term strategy, SKG is eyeing new potential routes in the central and northern areas of Vietnam, such as Ly Son Island in Quang Ngai, to mitigate rising competition on current southern routes. SKG

expects the new Soc Trang-Con Dao route commencing in the second or the third quarter to become a new near-term growth engine, with a projected occupancy rate of 55-60 percent in the first operating year, according to Viet Capital Securities Company.

* Dat Xanh Real Estate Service & Construction Corporation (DXG) has announced its 2016 cash dividend ofVND500 a share and a stock dividend at 13 percent following approval at its annual general meeting earlier this year. The record date is set for May 16 and payment date for the cash dividend is scheduled for June 29.

* NamABank has decided to spur its chartered capital to VND5 trillion and open 20 more banking units this year. In 2016, the lender inaugurated five branches and four transaction offices, taking to 68 the total number of its banking units in the country. * Apax Holding Investment Company will launch an initial public offering (IPO) on May 26, offering 7.5 million shares at the starting price ofVND20,000 each. The enterprise also plans to issue 30 million shares for existing shareholders at a 1- for-0.96 ratio. The enterprise, with a chartered capital ofVND313 billion, operates in investment, mergers and acquisitions, trading and financial consulting.

* Ta Thi Kim Chung, finance director of Vietnam Investment Securities Company (IVS), has registered to sell over 517,000 IVS shares, or a 1.52 percent stake in the enterprise.

Inspections set for massive aluminum stockpile in Vung Tau

05/May/2017 Intellasia| VN Economic Times

Suspicions raised about origin and destination of aluminum stockpile in city. Vietnamese officials from three ministries will inspect a giant aluminum stockpile at a foreign company's

factory in the southern province of Ba Ria Vung Tau to determine if it has been moved to Vietnam as part of a tariff evasion scheme, the government has said.

Following instructions from deputy prime minister Trinh Dinh Dung, officials from the Ministries of Industry and Trade, Finance, and Planning and Investment will verify the origin and purpose of the aluminum stockpile in Vung Tau city in mid-May.

According to the Ministry of Industry and Trade, the inspection is a normal activity in export-import management, to ensure the trade relationship between Vietnam and other countries is fair and transparent and in accordance with international commitments.

The stockpile is thought to belong to the Global Vietnam Aluminium Co. Ltd, a $250 million joint venture between Jacky Cheung and Wang Tong, both Chinese-Australian businesspeople. The project obtained a license with a term of 37 years in 2011, and construction has been sped up.

The company is developing a factory with an annual capacity of 200,000 metric tonnes of aluminum billet, and it is unclear if the stockpile will be used as raw materials for the factory or re-exported elsewhere.

The aluminum is believed to have arrived in Vietnam as part of a scheme to evade trade restrictions, according to US industry officials and foreign media reports.

Bloomberg has traced the stockpile's connections to one of China's richest men, Liu Zhongtian, Chair of aluminum giant China Zhongwang Holdings.

A Wall Street Journal report late last year said the stockpile was stored in Mexico before being moved to Vietnam, with about 1.7 million tonnes of aluminum transported to Vung Tau since 2015 by a company co-owned by one of Liu's business associates, based on trade and corporate records. Data provided by Global Trade Information Services, which tracks worldwide trade, values the aluminum at about $5 billion.

With the trade route between Mexico and Vietnam rarely used for the transfer of aluminum in recent years, the report alleged that the unusual business move may have something to do with hiding the real origin of the metal.

Exports of Chinese aluminum extrusion to the US market are subject to anti-dumping tariffs as high as 374 per cent, compared with those of about 5 per cent on Vietnamese aluminum extrusion products, the report said.

Sending the metal first to Mexico and later to Vietnam would "wash away" its Chinese origin, helping the exporter avoid the stiff tariffs imposed by the US.

http://vneconomictimes.com/article/vietnam-today/inspections-set-for-massive-aluminum-stockpile-in-vung-tau

Criteria for Vietnamese casino gamblers released

05/May/2017 Intellasia| VN Economic Times

Draft circular specifies conditions on Vietnamese people entering and gambling at local casinos. The Ministry of Finance (MoF) has released a draft circular guiding a number of articles in government

Decree No.03 from earlier in the year on the casino business. Vietnamese citizens aged 21 years and above who wish to gamble at casinos in Vietnam must have

documentation proving financial capacity, including one of the following: personal income tax settlements from Level 3 upwards (taxable income from VND10 million ($440)), finalised by tax authorities within one year prior to entering a casino; statements of monthly income and salary that show a minimum income of VND10 million; a notarised or authenticated contract of leasing a property with a total monthly rental of at least VND10 million; a bank savings book or bank statements with a term of one-year or more with monthly interest income of a minimum of VND10 million; or other documents proving regular monthly income in excess of VND10 million.

Gamblers must submit such documents when entering casinos involved in the pilot project allowing entry to Vietnamese citizens. Casinos are responsible for retaining such documents for a minimum of three years, to serve the management, supervision, and inspection activities of State management agencies.

The draft also noted that in order to enter a casino, citizens must purchase tickets, the proceeds of which are to be submitted to the local budget. Such money will be spent on social welfare, community services, and ensuring security and social order. Localities must allocate a minimum of 60 per cent of money from casino tickets to education, training, vocational training, and health.

In order to be allowed to allow entry to Vietnamese people, casinos within the pilot project must prove their projects are fully completed, complete investment capital disbursements, including reports on disbursements for integrated entertainment complexes with casinos, and must be audited by an independent auditing organisation authorised to operate in Vietnam.

At the end of the accounting period (quarterly and yearly), casino businesses must prepare and submit financial statements and statistical reports in accordance with the law. Legal representatives of casino businesses are responsible for the accuracy and truthfulness of such reports.

http://vneconomictimes.com/article/vietnam-today/criteria-for-vietnamese-casino-gamblers-released

VN: First silica, nano silica plant gets nod 05/May/2017 Intellasia| VNS

Le Hoai Quoc, president of Sai Gon Hi-Tech Park (SHTP), has granted an investment certificate to BSB Investment & Development Co Ltd for the construction of the first silica and nano silica plant in Vietnam.

The plant has designed production capacity of 3,000 tonnes of silica and nano silica from rice husk per year at the SHTP in HCM City's District 9.

It is an attempt to maximise exploitation of the precious silica and nano silica resources from rice husk, leveraging it for deployment of special rich applications of public nano technology, such as in activities related to pharmaceutics, cosmetics, foodstuff and advanced materials, as well as agriculture, construction, rubber, plastics, electronics and energy industries in Vietnam.

Nguyen Viet Hung, chair-cum-general director of BSB, said every year rice milling in the country produces some 9-10 million tonnes of rice husk. "It is the reason finding a technological solution to

effectively exploit the value of rice husk is of great economic and environmental significance," Hung said, adding it would help farmers increase their income from planting rice.

He said the plant is expected to begin construction this year to take advantage of the rice husk, which is currently being dumped or burned, leading to waste and pollution.

Sharing her ideas, Nguyen Thi Hoe, chairwoman of KOVA Group, said the potential for silica and nano silica in Vietnam is huge. She said KOVA Group introduced nano silica from rice husk into their paint products, such as self-cleaning, fireproof, anti-bacterial and even bulletproof paints, 10 years ago.

Paint products using nano silica have BOC index of approximately zero, while that of non-nanotech paint products is 10-20. In particular, fireproof paint with nano silica technology from rice husk will not cause asphyxiation, taking up to five hours to completely burn at a temperature of 1,000 degrees Celsius, thus giving enough time for firefighting measures, Hoe said.

The licence was granted under the International Collaboration Programme, titled Comprehensive Technology Solution and Research, Production, Applications of Silica & Nano Silica from Rice.

The event was organised by the Scientific Council of Materials Sciences, Vietnam Academy of Science and Technology, in collaboration with BSB Investment & Development Co Ltd, with the participation of the Russian Academy of Sciences and representative experts from the Vietnam Ministry of Science and Technology.

It also witnessed the signing of a cooperation agreement between BSB and other domestic and international partners, such as the Scientific Council of Materials Science, Vietnam Academy of Sciences and Russian Hydro Energy Technology Centre.

The event received particular attention from many domestic and foreign enterprises that are eager to apply silica and nano silica in their business activities, including PVFCCo, PVCFC (Vietnam), IEV (Malaysia) and JIC, JGC (Japan).

http://bizhub.vn/news/vn-first-silica-nano-silica-plant-gets-nod_285915.html

Epson unveils slew of new products for Vietnamese market 05/May/2017 Intellasia| VNS

Epson, a global technology company, has unveiled six new ink-tank models from L-series and interactive projectors targeting business and industrial organisations.

The launch is aimed at expanding its business in the country, the company said. Yunyong Muneemongkoltorn, general manager of Epson (Thailand) Company Limited, said: "Vietnam

has always been an important market for the company. It has huge potential and enjoyed continued economic growth. It is forecast that the Vietnamese economy will grow by more than 6 per cent this year."

After entering Asia in 2010 the company had sold more than 15 million L-series inkjet tanks by the middle of 2016.

Of the six models introduced now, some are new but others are upgraded versions of old models. The company also unveiled four new business scanners. DS-360W is a portable, Wi-Fi-enabled scanner.

DS-530 and DS-570W can scan up to 4,000 pages of A4-size paper per day. Moreover, they measure the length of the original documents to prevent the risk of overlapping pages.

The company has brought six new interactive projectors to Vietnam. EB-685Wi, EB-695Wi and EB-696Ui all have a brightness of 3,500-4,400 lumens; EB-1440Ui, EB-1450Ui and EB-1460Ui are designed especially for business organisations of all sizes.

http://bizhub.vn/corporate-news/epson-unveils-slew-of-new-products-for-vietnamese-market_285913.html

Ca Mau to build rice trademark

05/May/2017 Intellasia| VNS

The southern province of Ca Mau is focusing on building a trademark for its rice, simultaneously promoting the product's trade and advertisement after being certified as meeting domestic and international quality standards.

The province is also prioritising connecting with enterprises to popularise Ca Mau's specialty rice products at agents, shops and supermarkets inside and outside the province.

Currently, the provincial Department of Agriculture and Rural Development plans to restructure the high-quality rice sector by 2020.

Earlier, the Ministry of Agriculture and Rural Development launched a logo design contest for Vietnamese rice trademark, aimed at promoting the reputation of the country's rice.

The contest is part of activities to realise the project to develop Vietnam's rice brand to 2020 with a vision to 2030, which was approved by the prime minister two years ago.

http://bizhub.vn/news/ca-mau-to-build-rice-trademark_285911.html

Cargill inaugurates 10th aquafeed plant in VN 05/May/2017 Intellasia| VNS

Cargill inaugurated and put into operation its 10th aquafeed plant in Vietnam last week. The new plant, located in the premises of Cargill's existing animal feed factory in the northern province

of Ha Nam, is the second aquaculture feed line in the north of Vietnam. With production capacity of 3,000 tonnes per month, this modern production line focuses on high quality

extruded feed products for tilapia and other local fish species to meet the growing demand for floating fish feeds.

The new factory will also help Cargill Vietnam improve its customer service capabilities in major agricultural areas in Hanoi, Ha Nam, Thai Binh and the north central region, where a large number of farmers are rapidly switching from extensive to intensive farming.

In addition, it will help Cargill shorten delivery time for customers and enable fish farmers to growth healthy seafood, increase output, reduce production costs per kilogramme of finished fish and minimise impact on the environment.

At the ceremony, Chad Gauger, managing director of Cargill Aquaculture Nutrition Asia South, said Cargill's global innovation and expertise combined with the strong plant operations in Vietnam and commercial teams would bring exciting new technologies to help Vietnamese farmers thrive.

"Vietnam is a critical aquaculture market for Cargill and we are excited to be expanding our aquaculture feed capability to our sixth plant to continue our growth in Vietnam and in Asia South," he added.

Cargill's first aquafeed line was established in Vietnam's southern city of Bien Hoa in 1998. Following its acquisition of EWOS in 2015, EWOS's manufacturing plants in Vietnam began to integrate and operate smoothly with Cargill's plant systems in the country.

Currently, Cargill Vietnam has more than 2,000 employees working at 23 sites across the country, operating in the fields of animal feed production, providing raw material for food and beverage production, along with providing grains and oilseeds, steel trading and high protein corn.

http://bizhub.vn/corporate-news/cargill-inaugurates-10th-aquafeed-plant-in-vn_285908.html

Vietnam refinery allowed to discharge wastewater into sea 05/May/2017 Intellasia| Tuoitre News

A north-central Vietnamese province has given the green light for an under-construction oil refinery to release treated wastewater directly into the sea for the next ten months.

The Thanh Hoa administration confirmed on Wednesday that it had granted a wastewater discharge license to the Nghi Son Refinery & Petrochemical LLC (NSRP), the developer of the Nghi Son refinery.

The license entitles NSRP to the approval to release wastewater produced during the facility's cleaning and trial-run processes into the near-shore waters off Hai Yen Commune, Tinh Gia District for a ten-month period ending February 28, 2018.

The allowable volumes of water discharged range from 480 cubic meters to 500 cubic meters per 24-hour period, according to the approval document signed by the provincial deputy chair Nguyen Duc Quyen.

NSRP is required to meet all standards of wastewater treatment and regularly monitor the discharge. Should the developer fail to meet the required standards, it will be forced to cease dumping the wastewater and be held legally responsible.

The Thanh Hoa environment department and Tinh Gia administration have been tasked with overseeing the refinery's wastewater release.

The $9.3 billion Nghi Son refinery broke ground in October 2013 and had initially been scheduled for completion by December 31, 2016.

Nguyen Van Thi, head of the management board of all industrial parks in Thanh Hoa, said the months-long delay of the refinery's completion did not result in any serious consequences.

"Construction work took longer than expected, but that isn't an issue in the EPC [Engineering, Procurement, and Construction] contract," Thi was quoted by Dan Tri (Intellectual) newswire as saying.

The official said the Nghi Son refinery is scheduled to produce its first batch of products during a test run in July and officially begin operations in October.

The Nghi Son refinery is located along Vietnam's central coast, some 150km north of the Taiwanese-developed Formosa steel mill in Ha Tinh Province.

The Formosa facility is responsible for dumping improperly treated wastewater directly into the ocean, resulting in massive fish deaths along the coast last year.

http://tuoitrenews.vn/business/40817/vietnam-refinery-allowed-to-discharge-wastewater-into-sea

Vingroup opens hotels, golf course and malls 05/May/2017 Intellasia| VNS

Vingroup has opened 15 new business establishments in 11 provinces and cities to expand its presence nationwide and affirm its position as the country's leading private economic group.

Seven Vinpearl hotels, one Vinpearl golf course, two Vinpearl Land entertainment areas and five Vincom shopping centres were opened at the end of last month.

Vingroup currently has 11,000 hotel rooms, three golf courses, five entertainment areas and 37 shopping malls across the country.

With the opening of Vinpearls and Vinpearl Lands last week, Vingroup has penetrated five new provinces and cities - Hai Phong, Nghe An, Ha Tinh, Quang Nam's Hoi An and Khanh Hoa's Cam Ranh.

Vincom's shopping centres, which have a presence in 20 provinces and cities, house retail brands such as VinMark, VinPro and VinDS.

Vingroup expects that the opening of its hotels, shopping centres and amusement parks will contribute to promoting socio-economic development and high-quality tourism.

On this occasion, Vingroup is offering attractive promotions and gifts until the end of this month. http://bizhub.vn/corporate-news/vingroup-opens-hotels-golf-course-and-malls_285893.html

Genco 3 to build $422mn solar plants in Ninh Thuan 05/May/2017 Intellasia| VN Economic Times

A unit of monopoly electricity provider Electricity of Vietnam (EVN) has unveiled a plan to build two solar power plants in the south-central province of Ninh Thuan with a combined capacity of 350 MW.

The Power Generation Corporation 3 (Genco 3) plans to build a photovoltaic farm on an area of 554 ha at a total cost of VND9.58 trillion ($421.8 million), EVN said on its website.

It expects to begin construction in the second quarter of next year and put the plants into operation in the first quarter of 2021.

It will also use the site for hi-tech agricultural production. Genco 3 currently operates 12 thermal and hydro power plants around the country with a combined

capacity of 6,549 MW, accounting for 17 per cent of the country's power production. Foreign businesses have recently expressed interest in investing in solar power in Vietnam, where energy

demand is growing rapidly. Singapore's Sinenergy Pte. Ltd has been the latest to express interest, in building a 300 MW farm in

Ninh Thuan. Last month, prime minister Nguyen Xuan Phuc issued a long-awaited decision approving the mechanism

on the development of solar power projects, Decision No.11/2017, introducing a tariff of $0.0935 per kWh for the purchase of electricity from grid-connected solar power plants.

This is higher than the tariff applied to onshore wind power projects of $0.078 per kWh. According to global law firm Mayer Brown JSM, this regulation had been in the drafting stage for

several years with limited tangible progress. While both foreign and local investors have expressed keen interest in developing solar as a potential

renewable power source in Vietnam, concrete projects have stalled. The lack of clear guidance on the development scheme, especially with respect to the tariff structure, has

been an impediment to the development of Vietnam's solar aspirations. Decision No.11 could therefore play a vital role in realising the government's goal under Master Plan VII

for renewable energy to contribute 9.9 per cent to the country's total electricity production by 2020 and 21 per cent by 2030.

EVN, under Decision No.11, will be the single purchaser of electricity generated from solar power projects, as is the case with respect to all Vietnamese independent power projects.

It is required to buy all power generated from on-grid solar projects, with priority given to deploying the full generating capacity of the system.

The sale and purchase will be carried out through a 20-year term standard power purchase agreement (PPA) to be issued by the Ministry of Industry and Trade.

The government aims to bring installed solar power capacity from its current insignificant figure to 850 MW by 2020, 4,000 MW by 2025, and 12,000 MW by 2030.

Of total power generation capacity, the proportion of solar power is expected to reach 0.5 per cent by 2020, 1.6 per cent by 2025, and 3.3 per cent by 2030.

http://english.vietnamnet.vn/fms/business/177730/genco-3-to-build--422mn-solar-plants-in-ninh-thuan.html

Presotea seeking local franchisees

05/May/2017 Intellasia| VN Economic Times

Franchisees of Taiwanese bubble-tea chain should have experience in chain restaurant management and market development and understand consumption trends.

Taiwanese bubble-tea chain Presotea is looking for franchisees in Vietnam to expand its international network, according to Inside Retail, Asia's leading authority on retail industry news and trends.

During its expansion plans, Presotea is looking at Vietnam, where the milk- and bubble-tea market is expanding rapidly with numerous international brands already on the ground.

"We are looking for partners to set up 30 to 50 stores in Vietnam, with five in the first year," said Presotea's overseas business manager, Jackson Kah.

What makes Presotea different from other players and become the biggest fresh-tea chain in Taiwan is the use of espresso-type machines to brew tea in a bulk bucket, which preserves the fresh taste. By using tea buckets, Presotea is also able to save and control the quantity of ingredients for its stores.

Presotea's menu is filled with various kinds of high quality tea, including Jasmine green, Oolong, Sencha green, and Darjeeling. Customers can hand-pick the ingredients to make their own cup of tea.

Franchisees should have experience in chain restaurant management and market development and understand consumption trends.

The franchise investment is upwards of $1 million. Apart from providing standard administration and operation guidelines, Presotea provides in-store problem solving and operation consultation to assist franchisees in meeting the brand's professional tea brewing standards.

Presotea is owned by Good Young and currently has 340 outlets in five countries, with more to come. There are many bubble-tea brands already in Vietnam, including Ding Tea, Gong Cha, and Chatime. http://vneconomictimes.com/article/business/presotea-seeking-local-franchisees

Starbucks opens first Starbucks Reserve Coffee Bar 05/May/2017 Intellasia| VN Economic Times

New store opens in Hoan Kiem district, Hanoi, on May 5. Starbucks Vietnam has announced the opening of its first Starbucks Reserve Coffee Bar in Hanoi, on

May 5. Starbucks Reserve Coffee Bar creates an immersive experience that brings customers closer to their

coffee and Starbucks baristas than ever before. The store is located at 6 Nha Tho, Hoan Kiem district, and debuts the state-of-the art Black Eagle espresso machine and Nitro Cold Brew on tap.

"We are proud to bring an elevated experience to Vietnam with the introduction of our first Starbucks Reserve Coffee Bar," said Patricia Marques, general manager of Starbucks Vietnam. "Our new Hanoi store will excite customers with a unique coffee experience in an environment that showcases our deep passion for some of the finest coffees from around the world, while honoring the Vietnam's rich heritage and culture. The Starbucks Reserve Coffee Bar lets the craft of coffee take centre stage and invites a deep exploration of coffee by customers."

In addition to the classic Starbucks menu, the store also features Starbucks Reserve coffee and different brewing techniques that allow customers to explore a variety of exceptional tastes and flavors. These rare, small-lot Reserve coffees from around the world are available as Reserve Americano, Reserve Latte, Reserve Cappuccino, Reserve Cortado, Reserve Espresso and Reserve Espresso macchiato.

Customers can also enjoy a new experience that takes popular Starbucks Cold Brew to the next level, infusing it with nitrogen to unlock the super-smooth, natural sweetness of the coffee.

Honoring Vietnam's rich cultural heritage, the design of the store features local imagery and locally-sourced materials. A wood carving celebrates Da Lat, the area of Vietnam where Starbucks sourced its first

ever single origin Vietnamese Arabica coffee. The piece reflects the city's French art deco architecture through bold, geometric shapes and the ever-present mist that sits among the city and its pine forests.

Starbucks opened its first store in Vietnam in February 2013, in HCM City. The brand has expanded to 27 stores today in Hanoi and HCM City, with one Reserve store now opened in Hanoi.

http://vneconomictimes.com/article/business/starbucks-opens-first-starbucks-reserve-coffee-bar

Phu My Hung introducing second phase of Japanese complex 05/May/2017 Intellasia| Bizhub

Phu My Hung Development Corporation on Thursday introduced The Symphony, the second project in its Phu My Hung Midtown in the South District of Phu My Hung City Centre in HCM City's District 7.

The event attracted nearly 600 customers, indicating that The Symphony promises to be hugely attractive to buyers after the highly successful launch of the 1st project - The Grande with 100 percent sold out.

Phu My Hung Development Corporation showed off show houses on Tran Van Tra Street in the Phu My Hung City Centre.

This is Phu My Hung Development Corporation's first project in collaboration with Japanese partners. The show houses were designed by Malaysia's Artsy Expression Company. One model measures 113sq.m and is designed in Japanese style. The other has a size of 85sq.m and a modern design. Angelia Lee Peng Peng, director of the design company, said the designers and developers of the show

condos were inspired by many famous international designers. All their interiors and furniture were imported from places like the EU, Thailand, and Malaysia.

It has sparked interest among foreigners living in HCM City because it has an excellent living environment that is being developed to international standards by Phu My Hung Development Corporation.

Phu My Hung said The Symphony would have a very beautiful location when it directly links to the first Sakura Park in Vietnam.

Furthermore, it will be built with a very good floor area ratio of about 5.88 which will ensure plenty of green for the project.

The Symphony will have 319 condos in two parallel blocks, each has two towers. The first one is a 9 and 17 storeys tall.

The second block, which will be on the opposite side, will have 14 and 20 storeys. This design, the developer said, would ensure that all condos in all four towers get wind and natural light.

The Symphony will be developed with many amenities. In each part of the project, amenities will be available on the ninth and 14th floors. By taking the elevator to these floors, residents can enjoy many amenities including a swimming pool, gym, sauna and massage room, and library.

To meet the needs of occupants, Phu My Development Corporation is developing infrastructure and services including new schools and malls.

http://bizhub.vn/property/phu-my-hung-introducing-second-phase-of-japanese-complex_285894.html

Aeon looks to open 500 grocery stores nationwide 05/May/2017 Intellasia| The Saigon Times Japanese supermarket operator Aeon has plans to set up 500 grocery stores in Vietnam by 2025,

according to a Nikkei Asian Review report. The firm is preparing to open more small stores in emerging Asian markets like Cambodia, Myanmar and

Vietnam. In particular, it aims to raise the number of its stores in Vietnam by almost nine-fold to 500 by 2025.

Although Aeon is known for its large shopping centers, it is easier and cheaper to set up small grocery stores. By opening a large number of stores here in the country, it expects to facilitate its brand recognition.

The company has teamed up with two local store chains to expand the number of its grocery stores in the country to 57. The Japanese retailer began holding 30 percent and 49 percent stakes in Vietnamese supermarket chains Fivimart and Citimart respectively in early 2015.

Aeon is providing its Top Value products for Citimart and Fivimart supermarkets for sale, and cooperating with the two partners to promote those products as well as consolidate and expand their goods distribution.

These partnerships can also help Aeon reduce its initial outlays and at the same time pave the way for it to open shopping malls in Vietnam, according to industry watchers.

Aeon, which has four shopping malls in Hanoi, Binh Duong and HCM City, is regarded as a big competitor by other major retail rivals in Vietnam. It plans to build a new mall in Hanoi and another in Hai Phong in the short run, and have 20 malls across the country by 2020.

Meanwhile, Aeon has been in partnership with Japan's Sojitz Corporation to develop Ministop convenience stores. The two firms aim to raise the number of their joint outlets to 800 in the next eight years.

Therefore, the venture intends to expand the store franchise and provide business support for employees through partial investment of the parent company of Ministop Vietnam.

Aeon Vietnam has been running an e-commerce website at https://aeoneshop.com offering a variety of products like cosmetics, furniture, electronics, household appliances, bicycles, and stationery since early this year.

http://english.thesaigontimes.vn/53749/Aeon-looks-to-open-500-grocery-stores-nationwide.html

Golf could drive Danang tourism beyond fairway 05/May/2017 Intellasia| VIR

The sixth Asia Golf Tourism Convention presents an unparalleled opportunity for the south-central city of Danang to unlock its golf tourism potential.

New destination for golf in Vietnam Danang's rapidly growing hospitality market is spurring real estate development, especially in upscale

resorts and luxury accommodation like InterContinental Danang Sun Peninsula Resort, Premier Village, Hyatt Regency, Furama Danang, and Pullman Danang.

The city is fast emerging as a new destination for tourists in Asia. The year 2016 saw 5.5 million travellers visit the city, of which 1.6 million were inbound tourists. Many new tourism products have been developed to attract tourists to the city. Among them, golf offers Danang a unique selling point to keep tourists coming back.

Danang is one of the best locations for golf courses thanks to its dry climate and diverse landscape. The long stretch of clear sand beach is ideal for seaside golf developments like Montgomerie Links Vietnam and BRG Danang Golf Resort. Meanwhile, the mountain terrain creates unique experiences for Ba Na Hills Golf Club. All three of these golf courses received awards from international magazines, contributing to the popularity of the local golf industry.

Montgomerie Links Vietnam is located midway between Hoi An and Danang, a mere 15-minute drive from Danang International Airport. Eight-time European Order of Merit winner and 2010 Ryder Cup-winning captain, Colin Montgomerie, designed the beautifully presented links-style course. Acclaimed by local and visiting golfers alike, it is challenging enough to test the best players, while being eminently playable and enjoyable for mid and higher handicappers.

BRG Danang Golf Resort opened in 2010 and immediately leapt to fame. It is recognised as one of the 15 best new courses in the world by USA Golf magazine. The Dunes Course is built on the sandy loam soil of Danang Beach. Here, along Vietnam's "golf coast" and amid a seaside landscape almost identical to what the world's first courses were carved from, an experience was crafted as much by mother nature as it was by the legendary Great White Shark, Greg Norman.

Meanwhile, Ba Na Hills Golf Club, owned by Sun Group and managed by IMG, is located along Ba Na-Suoi Mo, the only road to Ba Na Hills complex. The club sits at the foot of a towering mountain range, on a hilly piece of terrain accentuated by lakes, streams, and lush vegetation. Among the course's standout features are its flexibility the course can play long, short, or anywhere in between, thanks to five sets of tee boxes and its views. In particular, visitors can play at night because the course is fully equipped with a lighting system.

New opportunities arise Danang has some of the finest golfing assets in Vietnam and a growing number of high-end hospitality

developments. It is no surprise that more overseas golfers will visit the city in the near future. The value of the local golf tourism sector is expected to grow enormously after the Asia Golf Tourism Convention 2017 (AGTC) takes place from May 7-13.

AGTC is without a doubt the premier golf travel event in the Asia Pacific region, and Vietnam, the highest trending golf destination in Asia at the moment, will attract a record number of golf tour operators from around the world, along with golf travel suppliers from every golf destination in the Asia Pacific.

Peter Walton, chair of the International Association of Golf Tour Operators (IAGTO) and the organiser of the event said that most golfers are businesspeople and investors. The golfing visitors often spend more than six times the daily amount of average visitors.

Also, golf tourism attracts visitors year-round, so it does not depend on peak and off-seasons. Thus, golf tourism not only brings more added-value, but also creates sustainability in the business realm.

According to the IAGTO research in 2016, the four golfing assets in Danang earned a total revenue of $40 million, contributing 35 per cent to the city's budget.

AGTC 2017 is expected to boost the local golf tourism industry by 25 per cent in the next few years, promoting sustainable growth in the market. Danang is planning more golf developments, which places huge importance on promoting the city as the emerging golf destination to the global marketplace.

Provincial People's Committee Chair Huynh Duc Tho said that AGTC 2017 is the first step for the city to carry out a high-end tourism segment.

"We want companies and people to capitalise on this upward trend to promote the city's tourism," Tho said.

He said that with the gathering of golfers from 36 nations, the event is expected to broadcast the beauty of Danang to the rest of the world. In addition, the city will also improve its infrastructure before the Asia-Pacific Economic Cooperation (Apec) meetings in November.

http://www.vir.com.vn/golf-could-drive-danang-tourism-beyond-fairway.html

Five E-Class cars delivered to InterContinental Saigon Hotel 05/May/2017 Intellasia| The Saigon Times

Mercedes-Benz Vietnam (MBV) and its authorised dealer Vietnam Star Automobile officially handed over five units of the new E-Class to InterContinental Saigon Hotel on April 18 to serve VIP guests.

Mercedes-Benz has been InterContinental Saigon's strategic partner since this hotel operated to business in Vietnam. InterContinental Saigon has utilised three models including the C-Class, E-Class and S-Class for its exclusive chauffeur service.

In 2013, the hotel purchased five units of the E-Class in Diamond Silver color. After three years of efficient investment, InterContinental Saigon has continued to get five units of the new E 200 (W213) with the total value of over VND10 billion.

At the New York Motor Show which took place in April, the E-Class was named as the winner of "2017 World Luxury Car", voted by 75 experts and professional journalists from 23 countries around the world. The E-Class is highly appreciated thanks to its eye-catching interior design, top-notch material and outstanding efficiency.

The E-Class (W213) is known for high safety as it has far surpassed the standards of the euro New Car Assessment Programme ( euro O NCAP) in every aspect. To achieve this level, the E-Class features a number of valuable safety functions such as Parking Pilot integrated with reversing camera, electric hand brake with smart brake release ability, Hill-Start Assist, and nine air-bags and full-LED headlamp.

The E 200 variant chosen by InterContinental Saigon has a combined fuel consumption of from 5.9 to 6.3 litres/100km.

Choi Duk Jun, managing director of Mercedes-Benz Cars, said: "The E-Class is the representative for core values of Mercedes-Benz. The new E-Class is an ideal business solution for top hotels as well as an absolute safe car for passengers."

This premium fleet was delivered and serviced by the largest authorised dealer of Mercedes-Benz Vietnam - Vietnam Star Automobile. This is also the authorised dealer who received the best service excellence award in Vietnam for eight consecutive years.

Situated at the corner of the Le Duan Boulevard and Hai Ba Trung Street, InterContinental Saigon owns a convenient position with four views to the city centre. This five-star hotel is within walking distance from famous sites such as the Reunification Palace, the City Post Office, the Opera House or the Ben Thanh market.

The most successful first quarter of MBV With the key focus on enhancing the customer experience, MBV achieved the most successful first-

quarter ever in 22 years operating in Vietnam. With 1,360 vehicles sold, the growth of the "Three-pointed Star" brand is nearly 70 percent in

comparison with the same period of last year. Its premium car market share increased significantly from more than 50 percent to more than 70 percent in the first three months.

The mid-size SUV GLC is still the best-selling car of the brand as well as of the whole premium market in Q1 2017. There is up to 160 GLC delivered to customers each month on average. In terms of luxury sedans, the C-Class remains the most favourite with 400 vehicles sold in the first quarter. Especially, the ultra-luxury is also overwhelmingly welcomed by Vietnamese customers.

In less than one month from the launch of two new variants Mercedes-Maybach S 400 4MATIC and Mercedes-Maybach S 500, MBV received more than 50 orders.

http://english.thesaigontimes.vn/53755/Five-E-Class-cars-delivered-to-InterContinental-Saigon-Hotel.html

Vietnam Motorcycle Show 2017 opens in HCM City

05/May/2017 Intellasia| AFP

More than 100 new models are on displayat the 2017 Vietnam Motorcycle Show which opened in HCM City on Thursday.

The second annual event has theme "Free Your Wheels". Deputy minister of Planning and Investment Dang Huy Dong said, "The show, in its increasing scale and

quality, has truly become one of the most important and anticipated events for motorcycle lovers and technology enthusiasts across the country."

It is also a sign indicative of the evolution of various motorcycle brands and the growth of the industry in Vietnam.

With a display area of nearly 10,000sq.m, the event showcases over 100 of models in various segments: commercial, sports, high-performance and concept.

Honda, Piaggio, Suzuki, SYM, Yamaha, Benelli, Ducati, Kawasaki, Peugeot, and Harley Davidson have brought their vehicles.

At the event, many new and special models have been introduced to customers such asScrambler, Monster, XDiavel, Multistrada of Ducati.

For the first time in Vietnam, Harley-Davidson is showing its 2017 models of the Street RodTm and CVO Street Glide.

Peugeot brings to the event two models of Peugeot Django and Peugeot Django. Kawasaki has its limited edition versions of Ninja H2 Carbon and Ninja ZX-10RR. Also present at the event are 50 companies in supporting industries, making items like gears and

accessories, related industries like tyre, lubricant, and helmet and service suppliers like banks and insurance companies.

According to Yano Takeshi, chair of the Vietnam Association of Motorcycle Manufacturers the exhibition organiser the four-dayeventis expected to attract 150,000 visitors.

It is on at the Sai Gon Exhibition and Convention Centre in District 7. The motorcycle market last year reached a sale of around 3.1 million units in 2016, up by 9.5 per cent

year-on-year. The growth is attributed to the steady economic growth and rising incomes. http://bizhub.vn/news/viet-nam-motorcycle-show-2017-opens-in-hcm-city_285909.html

Vietnam among top countries for internationalised domain name distribution 05/May/2017 Intellasia| VNS

There are currently about one million Vietnamese domain names issued and Vietnam is among the top countries in terms of internationalised domain name distribution in the world, according to government portal chinhphu.vn.

The Vietnam Internet Network Information Centre (VNNIC), in cooperation with the Internet Corporation for Assigned Names and Numbers (ICANN), held a seminar on internationalised domain names in order to disseminate to the Vietnamese community the trend of internationalised domain name development on Wednesday.

Tran Minh Tan, VNNIC director, said that internationalised domain names were indispensable, playing an important role in expressing the national spirit and honoring the native language of each country.

Internationalised domain names enable people around the world to use domain names in local languages and scripts, defined by ICANN on its website. Internationalised domain names are formed using characters from different scripts, such as Arabic, Chinese, Cyrillic or Devanagari.

The VNNIC representative also emphasized that we were witnessing a new stage of Internet development with diversified types of services and technologies. Of these, internationalised domain names were trending globally, he said.

With internationalised domain names, Internet users have the chance to use domain names in their own language to access the Internet, which is especially useful for non-Latin speaking countries like Saudi Arabia, Japan, China, Russia, Greece and Korea, he said.

Vietnam's digital economy has huge potential, said an ICANN representative for the Asia-Pacific region. According to the Internet World Stats report, Vietnam ranks 17th among nations with the highest Internet penetration, with over 49.7 million people connected to the net, which is a penetration rate of 53 per cent of the population.

VNNIC's 2016 Internet Resource Report also showed that more than half of businesses in Vietnam own websites to sell goods online.

"By crossing the language barrier, Internet penetration may increase as more Vietnamese can access the network in their native language," he said.

Vietnamese domain names were free from April 28, 2011 to December 31 last year. The number of registered domain names reached one million in July 2014 and was maintained at 977,007 by the end of October last year.

From January 1 this year, Vietnamese domain name owners have to pay an annual fee of VND20,000 (nearly $1) for a domain name in accordance with a circular from the Ministry of Finance.

In addition, from mid-April, customers were allowed to register Vietnamese domain names through domain name registrars. The number of newly-registered Vietnamese domain names through registrars has reached 2,331 since then.

http://bizhub.vn/tech/viet-nam-among-top-countries-for-internationalised-domain-name-distribution_285914.html

Workshop on domestic trade development strategy to 2025

05/May/2017 Intellasia| VNA

The Ministry of Industry and Trade (MoIT) and the US Agency for International Development (USAID) jointly held a consultation workshop on May 4 on the draft domestic trade development strategy to 2025 with a vision towards 2035.

The strategy is expected to address issues pertaining to the organisation of traditional and modern distribution channels; commercial infrastructure; forms of business; types of firms and cooperatives and household business for separate product lines and for urban and rural areas, said director of the MoIT's Domestic Market Department Vo Van Quyen.

It also clarifies the role of the State, businesses and trade associations in the management, building and development of distribution systems with a view to enhancing the role and position of domestic firms in the context of global integration, he added. Trade activities at home should accord with Vietnam's commitments to the World Trade Organisation (WTO) and signed bilateral and multilateral trade agreements on opening the distribution market, including wholesale, retail, and franchise, Quyen emphasized.

Director of the Institute for Trade Research under the MoIT Pham Nguyen Minh said the third draft of the strategy has basically satisfied the requirements, but suggested supplementing some contents for the development and modernisation of trade, especially increasing the rate of localisation.

Minh also called for more attention to building supply chains for export and a distribution network of imported goods in the domestic market to ensure sustainable economic, social and environmental development.

Le Trinh Minh Chau, a representative from the USAID, said the domestic trade development target for 2025 with a vision towards 2035 is to create modern and professional wholesale and retail services with the participation of many economic sectors under various forms, and with diverse distribution channels.

He proposed that strategic solutions should focus on improving business environment, and creating a transparent and equal business environment for wholesale and retail companies.

Japanese products appeal to Vietnamese people's taste

05/May/2017 Intellasia| VNA

Japanese commodities and food have become increasingly popular among Vietnamese consumers, creating opportunities for firms from both countries.

Japanese products are a favourite of Vietnamese people, with big urban areas featuring various Japanese retailers and restaurants like AEON, Ministop, Family Mart, Tokyo Deli, Gyu Kaku and Oshaka Ohsho.

Kazuhiro Takahashi, director of the Japan External Trade Organisation (JETRO)'s agriculture, forestry, fisheries and food division, said that the Vietnamese market has potential for Japan's agricultural products.

Strong sales have been reported for Japanese salmon, tuna, Kobe beef and eel. Those products also receive a positive response from the public.

Experts said that Vietnamese consumers are ready to splash out on safe and high-quality food. Revenue from Japan's fresh vegetable at Japanese supermarkets in Vietnam increases more than 200 percent each year and the figure is forecast to experience strong growth.

In addition, consumers in Vietnam have snapped up Japanese cosmetics due to their safety and quality. According to Japanese investors, Vietnam is enticing foreign investment into food and retail sales as the

country has a young population with 60 percent of its 90 million people under 35 years old. They said that increasing incomes will boost spending among young people.

Takimoto Koji, head of JETRO in HCM City, said that Vietnamese consumers' desire for Japanese products coupled with strong flow of Japanese capital into services, consumption and cuisine have created a drive for Vietnamese businesses' development. When bringing their products to Vietnam, Japanese businesses have adapted to fit local tastes. They have also worked with Vietnamese material suppliers to reduce costs and lower product prices.

One of Japan's largest supermarket chains in Vietnam, AEON has given top priority to selling Vietnamese products. On AEON's shelves, 80 percent of its goods are made in Vietnam with the remainder imported from Japan and other countries.

According to a representative from AEON Vietnam, Japanese retailers want to bring Vietnam's high-quality products closer to the consumers, so their presence in Vietnam is a great opportunity for Vietnamese commodities to use the distribution system of large retailers.

This will help Vietnamese businesses enlarge their domestic consumption market while affirming their brand names in Japan and other foreign nations.

However, products need to have clear origins and undergo food safety examinations before they appear on the shelves of Japanese supermarket chains.

Vietnamese enterprises should focus on producing safe products meeting quality standards of foreign nations. This will help them take part in global supply chains.

http://en.vietnamplus.vn/japanese-products-appeal-to-vietnamese-peoples-taste/111176.vnp

The 'meat fight' among instant noodle manufacturers 05/May/2017 Intellasia| Vietnamnet

Before 2016, manufacturers offering lower selling prices had an advantage in the instant noodle market. But with the market now saturated, the presence of 'real pieces of meat' in noodle packages will determine the outcome of the competition.

Nguyen Dang Quang, president of Masan, a consumer goods manufacturer, which holds 24 percent of the instant noodle market share, said the competition in the instant noodle market has become fierce and his company saw no growth in the sector in 2016.

Masan, which held 25 percent in 2015 and 24 percent in 2016, said thst it does not try to compete in prices, but focuses on upgrading products to make them more convenient and have higher quality.

One of the products with 'higher quality' is the 'instant noodle with real pieces of meat inside' which has just been launched. It is VND1,000 higher per package.

Masan is not the pioneer in the 'noodle with real meat' movement. Vifon launched a series of products with real meat (pork, chicken and beef), including, instant noodle, rice vermicelli, noodle soup and gruel.

Acecook, which holds 50 percent of the instant noodle market in Vietnam, has also launched cup of noodles with real shrimp and meat, priced at around VND15,000.

Saigon Food is famous for gruel products with different flavors, priced at around 25,000 per 240gr package.

Analysts commented that the stiff competition in the market had prompted manufacturers to create new products which must be delicious, but also suitable to fast consumption.

On the shelves at supermarkets and convenience stores, instant noodle packages have been replaced with noodles in bowls or cups.

Acecook is targeting the mid-end and high-end market segments. In mid-2016, the manufacturer marketed cup of noodles with real meat and vegetables, retailing at VND8,000 per product, double the price of the packaged product of the brand.

A report from Asia Plus showed that U30 consumers tend to use more noodles in cups than U20 consumers, 63 percent vs 48 percent, while men use more cup of noodles than women, 52 percent vs 45 percent.

Phap Luat cited a report from the world's instant noodle association as showing that Vietnam consumed 4.8 billion packs in 2015, while the figure was 5.2 billion packs in 2012.

There has been no official report about consumption in 2016, but some sources said sales decreased by 20 percent. The sharpest sales decrease was seen in the low-cost market segment, where the products sell less than VND2,500 per pack.

Consumers today have more choices for processed food compared to the past when it primarily was instant noodles.

http://english.vietnamnet.vn/fms/business/177455/the--meat-fight--among-instant-noodle-manufacturers.html

Breeding cows donated to poor households in delta

05/May/2017 Intellasia| VNS

Twenty breeding cows valued at VND500million (US$22,000) have been donated to poor households living in the Cuu Long (Mekong) Delta province of Long An.

Truong Tan Sang, Vietnam's former President, on Wednesday handed over the breeding cows to the households who live in Duc Hoa District's An Ninh Tay Commune at an event held in the province.

The breeding cows were donated by the Masan Nutri-Science Corporation (MNS), a member of the Masan Corp Group which manufactures and trades animal feed in Vietnam.

Pham Trung Lam, managing director of the MNS, said: "The people here are still facing many difficulties, so Masan Nutri-Science wants to help the disadvantaged improve their living and escape poverty."

Nguyen Van Dang, one of the local residents who received a cow, said he would try his best to help his family have a higher standard of living.

In An Ninh Tay Commune, about 100 poor households and 170 near-poor households are farmers in difficult circumstances and have unstable incomes.

The MNS coordinated with the provincial government to carry out the "State and people work together" plan, which supports the disadvantaged with starting capital for farming, with the aim of lifting them out of poverty and improving their economic life.

On March 20, the MNS donated 30 breeding cows worth about VND750million ($32,975) to support poor households in Loc Giang Commune in the province's Duc Hoa District.

http://bizhub.vn/corporate-news/breeding-cows-donated-to-poor-households-in-delta_285912.html

Enterprises back pig consumption 05/May/2017 Intellasia| The Saigon Times

Meat processors have increased purchases of pork from domestic sources, instead of relying on imports, as pork prices are falling.

Speaking at a meeting with the HCM City Department of Industry and Trade on May 3, an official of Cau Tre Export Goods Processing JSC said the company has suspended imports and switched to using domestic pork. Cau Tre has bought 200-250 tonnes of pork which is enough for three months' production.

Nguyen Dang Phu, deputy general director of major meat processor Vissan, said Vissan has raised the total number of pigs from 1,000 to 1,500 and has bought 1,800 pigs a day in the past 10 days. The company also plans to slaughter an extra 300 pigs a day.

Vissan has bought pigs meeting VietGap standards, raised under the Leafsap project and traced at Te-food website at VND26,900 (US$1.18) a kilo, which is a good price.

Live pig prices have averaged out at VND25,000-30,000 a kilo, a decrease of VND13,000-15,000 a kilo year-on-year.

Nguyen Huynh Trang, deputy director of the HCM City Department of Industry and Trade, said that in addition to working with processors, enterprises and distributors in the city, the department had met the Departments of Industry-Trade and Agriculture-Rural Development of other provinces such as Long An

and Dong Nai. Around 9,000 to 10,000 pigs can be consumed at two farm produce wholesale markets of HCM City.

http://english.thesaigontimes.vn/53748/Enterprises-back-pig-consumption.html

Don't get addicted to latte if you value your dong in Vietnam 05/May/2017 Intellasia| Vnexpress

A Starbucks latte in Vietnam is 10 times more expensive than a cup of the traditional ca phe sua da. A Starbucks latte is an extravagance in many countries, and Vietnam is no exception. The country is the third most expensive place to buy a Starbucks latte, according to the latest "Latte

Index" conducted across 40 economies by research firm ValuePenguin. Customers here feel like they're spending over $8 or VND180,000 on a cup of coffee, while in the US it

only costs $2.75. The index also showed that Southeast Asia appears to be the worst choice for the Starbucks' drink when it

comes to the cost. The latte index is similar to the famous "Big Mac Index", which aims at calculating the strength of

currencies. The latest Big Mac Index updated in January this year revealed that the dong is undervalued by 47.5 percent.

The dong will also devalue by 4-5 percent in 2017, Juliana Lee, a senior research economist at Deutsche Bank, said.

"For 2017, we [Deutsche Bank] see upside risks to our outlook for the dong," she said. The dong devalued 1.1-1.2 percent last year. The global economy is forecast to remain unpredictable this year, with a number of countries likely to

exploit currency devaluations to support trade. In the meantime, with the value of the dong uncertain, enjoy a traditional ca phe sua da. http://e.vnexpress.net/news/business/data-speaks/don-t-get-addicted-to-latte-if-you-value-your-dong-in-

vietnam-3579866.html

Economy

Moody's and S&P affirms Vietnam's sovereign rating 03/May/2017 Intellasia| VNS

Two major credit rating agencies, Moody's and Standard & Poor's (S&P), on Friday affirmed Vietnam's sovereign rating, citing the country's strong foreign direct investment (FDI) inflows, macroeconomic and external stability and modest external debt burden.

Moody's affirmed the government of Vietnam's B1 issuer and senior unsecured debt ratings, while it raised the outlook to positive from stable.

Moody's B1 rating, four steps below investment grade, is considered relatively stable, with a moderate chance of default.

The company also raised its assessment of Vietnam's local-currency bond to Baa3 from Ba1, while the foreign currency bond remained at Ba2.

The positive outlook for Vietnam is based on three key drivers, including strong FDI inflows, boosted by ongoing economic reform and liberalisation; macroeconomic and external stability; and the stabilisation of prospective debt and an improved funding profile.

Moody's noted that robust FDI inflows will continue to sustain Vietnam's dynamic economic performance relative to similar-rated peers, as it allows Vietnam to diversify its economy and gain market share in international trade.

Vietnam has seen significant improvements in the investment climate. Its ranking rose to 60th out of 138 countries in the 2016-2017 World Economic Forum Global Competitiveness Index, up from 70th in 2013-14, while its showings in the World Bank's Doing Business Indicators similarly rose to 82nd out of 190 countries in 2017, and from 99th in 2014.

Further, Vietnam has become a more important node in the regional supply chain for electronics, especially for mobile phones, as foreign investments have helped to diversify the economy towards higher value-added manufacturing. Its market share nearly doubled to 1.2 per cent of world exports in 2016, from 0.7 per cent in 2013.

Moody's expected the country's economic growth to remain robust at around 6.3 per cent per annum through 2019.

S&P Global Ratings on Friday also affirmed Vietnam's long-term 'BB-' credit ratings and short-term 'B' credit ratings with a stable outlook.

The ratings have reflected the country's lower middle-income, banking sector weakness, and emerging institutional settings that hamper the responsiveness of policy.

"These weaknesses are offset by Vietnam's external settings that feature balanced external accounts, strong foreign direct investment inflows and a modest external debt burden," S&P said in a press release.

The rating company said financial and technical assistance that Vietnam has received from donors also contributed to the rating.

Its stable outlook reflected the company's expectation that Vietnam's growth prospects will continue to improve, leading to gains in its key economic and fiscal measures, it said.

However, it has cautioned that the large fiscal deficit and rising debt burden, with net general government debt at 46.6 per cent of GDP in 2016, signal a further delay in fiscal consolidation. S&P estimates that the fiscal deficits will average 4.9 per cent of GDP over 2017-20, down from an average 6.4 per cent over 2012-16.

http://bizhub.vn/news/moodys-and-sp-affirms-viet-nams-sovereign-rating_285840.html

Industrial production index rises 7.4pct in April 03/May/2017 Intellasia| VNA

The national index of industrial production (IIP) was estimated to rise 7.4 percent in April, reported the general Statistical Office (GSO) on May 1.

According to the GSO, in April, the IIP of the mining sector saw a drop of 5.6 percent, while that of the processing and manufacturing industry rose 11.1 percent, the electronic production and distribution was up 9.9 percent, and water supply and waste treatment increased 6.5 percent.

In the first four months of this year, the index increased 5.1 percent year-on-year, far below the growthrecorded in the same time of 2016 but higher than the rise of 4.2 percent in the first quarter of 2017.

In Jan-April period, the processing and manufacturing sector's production surged 9.2 percent and the water supply and waste treatment industry up 6.3 percent, while that of mining fell 9.7 percent.

A number of sectors enjoying a surge in the IIP includedmetal production (47.5 percent), metal product manufacturing (13.3 percent), weaving (12.5 percent) and engine vehicles (10.9 percent).

Meanwhile, industries experiencing slight IIP riseswere food production and processing at 6.4 percent;medicine and pharmaceutical chemistry 4.5 percent; and electronic, computer and optical product production 4.2 percent.

The northern city of HaiPhong led the country in the IIP growth with 20.4 percent, followed by Thai Nguyen with 17.7 percent; Da Nang, 12.1 percent; Hai Duong, 9 percent;Binh Duong, 8 percent; and Dong Nai, 7.4 percent. Ho Chi Minh and Hanoi rose 7.1 and 5.9 percent respectively.

The GSO also revealed that the inventory index of the industry sector as of April 1 was up 12.7 percent over the same time in 2016.

Sectors with higher inventorythan the country's average includedengine vehicle production at 158.9 percent, metal production 54.5 percent, beverage production 45.4 percent, non-metal product production (mostly cement) 39.7 percent, and paper and paper product production 32.8 percent.

http://en.vietnamplus.vn/industrial-production-index-rises-74-percent-in-Apr/111060.vnp

Consumer price index unchanged in April 03/May/2017 Intellasia| VNA

The consumer price index (CPI) in April remained unchanged from the previous month, but up 4.3 percent against the same period last year, the general Statistical Office (GSO) announced on April 29.

The average monthly index in the Jan-April period rose 4.8 percent compared to the same period last year, the office said.

Price increases were seen in seven out of the 11 goods and service groups in the price basket, with the biggest hike reported in medicine and health care services (8.05 percent), followed by culture, entertainment and tourism and household appliances with the same increase of 0.1 percent, and goods and other services (0.08 percent).

Four groups experiencing a price decline were transportation (1.38 percent), food and catering services (0.66 percent), housing and construction materials (0.24 percent), and telecommunication (0.03 percent).

According to vice director of the GSO's Price Statistics Department Do Thi Ngoc, the 10.59-percent increase of the price of medical services applied for health insurance buyers made CPI rise about 0.41 percent.

Rising tourism demand on the occasion of the national holiday (Reunification day on April 30 and May Day), and the increased consumption of clothes in the summer were also attributed to the increase of prices in the relevant groups of goods and services, Ngoc said.

In the month, the average domestic gold prices rose 1.01 percent from March, fluctuating around 36 million VND (1584 USD) per tael. Meanwhile the VND/USD exchange rate stood at between 22,600-22,700 VND per USD, down 0.38 percent against the previous month.

The core inflation (excluding food and fresh foodstuff, energy and State-controlled commodities such as health and education services) in April rose 0.09 percent from the previous month and 1.5 percent against the same period last year.

http://en.vietnamplus.vn/consumer-price-index-unchanged-in-Apr/111007.vnp

Vietnam's inflation under control 03/May/2017 Intellasia| VOV

The Consumer Price Index (CPI) of April remained unchanged against last month and was 4.3 percent more than last year's same period.

The general Statistical Office of Vietnam reported on April 29 that drugs and healthcare services saw the biggest surge of 8.05 percent.

Among commodities and services having lower CPI, transport services dropped 1.38 percent due to increasing petroleum and oil prices. So far this year, inflation has grown 1.62 percent.

Price increases were marked in seven out of the 11 goods and service groups in the price basket, with the biggest hike reported in medicine and health care services (8.05 percent), followed by culture, entertainment and tourism and household appliances with the same increase of 0.1 percent, and goods and other services (0.08 percent).

Nguyen Bich Lam, director general of the general Statistic Office of Vietnam, said inflation has been put under control.

"We've made scenarios for increasing CPI and service fees. For example, we anticipated how the price hike of electricity and healthcare services will impact the CPI and the economy then consulted the government for proper management. The government has asked ministries and sectors to control inflation as requested by the National Assembly," Lam said.

http://english.vov.vn/economy/vietnams-inflation-under-control-348618.vov

Vietnam records trade expansion in four months 03/May/2017 Intellasia| VNA

Vietnam's trade revenue is estimated at 125.41 billion USD in the first four months of 2017, a year-on-year increase of 20.1 percent, said the general Department of Vietnam Customs.

It consists of 61.34 billion USD from exports, up 15.4 percent, and 64.07 billion USD from imports, up 24.9 percent from a year earlier.

Key export commodities include telephones and components, textile and garment, footwear, and transport vehicles and spare parts.

In April, overseas shipments of telephones and components were about 3.6 billion USD, rising by 16.4 percent from the previous month. That added up to 11.37 billion USD in total exports of these items in four months, up 0.3 percent year-on-year.

Although this month's exports of textile and garment dropped 12 percent from March to 1.85 billion USD, it still posted an annual rise of 9.1 percent to 7.47 billion USD between January and April.

A monthly decline, 3.8 percent, was also recorded in footwear exports which stood at 1.05 billion USD in April. However, total exports still went up 9.6 percent on the yearly basis to 4.17 billion USD.

Meanwhile, main import items were machinery, equipment, tools and spare parts, computers, electronic products and components, fabric, steel, plastics, and garment and footwear materials.

In April, the import turnover of machinery, equipment, tools and spare parts fell 0.2 percent month on month to 3.25 billion USD, which totalled 11.32 billion USD in four months up 38.9 percent compared to the same period last year.

About 2.85 billion USD was spent to import computers, electronic products and components in April, representing a 4.6-percent monthly decrease. It is estimated at 10.45 billion USD in the four-month period, hiking 24.7 percent year-on-year.

Some 1.6 million tonnes of steel worth 945 million USD were imported this month, respectively increasing 8.7 percent and 8.2 percent from March. The import volume has approximated 5.8 million tonnes, down 5.9 percent year-on-year, with turnover of 3.3 billion USD, up 24.7 percent, since the beginning of 2017.

Vietnam experienced trade deficit of 800 million USD in April and nearly 2.74 billion USD in fourth months, Vietnam Customs said.

http://en.vietnamplus.vn/vietnam-records-trade-expansion-in-four-months/110973.vnp

Low worker productivity weakens GDP growth in Vietnam 03/May/2017 Intellasia| VOV

During the past three decades, the Vietnam economy has benefited from a transition away from agriculture toward manufacturing and services, and a demographic powered by a youthful population.

However, experts at a recent business forum in Hanoi have cautioned that the benefits of a young, growing labour force are slackening with critical labour shortages reported in many key economic sectors and the country needs to tap new sources of growth to replace it.

According to official governmental statistics, by 2020 the share of the population five to 19 years of age is projected to drop to 22 percent from the 27 percent it was in 2010 with the median age of 27.4 continuing to inch upwards.

According to government projections, the country's workforce is likely to expand by roughly 0.6 percent a year over the next decade, a decline of more than three-quarters that from the annual growth of 2.8 percent experienced from 2000 to 2010.

Growth in the work force will still make a positive contribution to the gross domestic product, but markedly less than it did over the past 15 years.

The country's recent economic growth has also been propelled by extraordinarily rapid migration from rural to urban areas from low-productivity agriculture to the higher manufacturing and service sectors.

In the absence of any increased labour productivity, the transition from farms to the metropolitan areas would need to double just to offset the slowdown in the gross national product resulting from a smaller and older workforce, said the experts at the conference.

The point that the speakers were making is that it is most likely GDP growth in Vietnam will slow dramatically over the next few years without significant improvement in labour productivity growth patterns within economic sectors.

They predicted that annual workforce productivity needs to rise 6.4 percent annually if the country is to achieve GDP growth of 7 percent a year by 2020, the target set at the 11th National Party Congress in January 2011.

Domestically oriented companies, such as those in the service or retail sectors, are much more threatened by slower GDP growth in Vietnam than are the multinational companies that use the country as an export base for manufactured goods.

They also cautioned multinational corporations that have opened production facilities in Vietnam to avoid locking in excess capacity as the country's economy may not match the robust growth trends of the past.

Anecdotal and survey evidence consistently indicates that the wage cost advantage of Vietnam that has so often in the past been touted as a significant plus is eroding and multinationals must boost their training costs to improve labour productivity to remain competitive globally.

Multinationals continually complain about a lack of basic work readiness among new recruits in both the manufacturing and service sectors but far too little is being done to address the problem, said the speakers.

Many companies in other countries have responded effectively to this problem by providing in-house training both before an employee starts working and while the employee is on the job.

They suggested that Vietnam should follow the lead of global best practices and seek to improve competitiveness by providing continued education and training for employees in all sectors of the economy.

In addition, they underlined the importance of concentrating on improving long-term value and bottom-line profits rather than, as is customarily done in Vietnam, merely seeking to increase top-line revenue.

Too many domestic companies spend too much energy competing on price with far too little emphasis placed on product quality, features, and branding or on developing unique offerings that can command price premiums, said the experts.

Local companies must develop better programmes to recruit employees and train them so that their skills and productivity improve, they added.

They must learn to take a more professional approach to retaining and promoting their best workers, through incentive packages and greater management autonomy.

The notion of increasing the value of each employee's performance is not yet widely understood among even the major Vietnamese companies let alone the small family-owned businesses, which still account for a major part of the economy, the experts concluded.

http://english.vov.vn/economy/low-worker-productivity-weakens-gdp-growth-in-vietnam-348733.vov

Vietnam's exports see positive signs 03/May/2017 Intellasia| VOV5

The Ministry of Industry and Trade forecasts that Vietnam's exports will grow stronger in the second quarter, thanks to business reforms and the implementation of free trade agreements.

Vietnam earned $45 billion from exports in the first quarter, up 15 percent from last year. This encouraging result is attributed to a surge in the price of key export items including raw materials,

crude oil, farm produce, seafood, and processed products. Exports revenues from major markets like China, Japan, Russia and Asean also increased significantly. "Businesses should apply advanced technologies and update their management methods. We have signed

17 free trade agreements and are negotiating several others," said Tran Thanh Hai, deputy director of the Export-Import Department of the Ministry of Industry and Trade.

The Vietnam-Eurasia Economic Union Free Trade Agreement which took effect last October offers an opportunity for Vietnam's exports to reach a market of 183 million people.

"We are trying to consolidate existing export markets while seeking new ones. Other important missions include reducing tariffs and remove non-tariff barriers to boost exports," said Nguyen Khanh Ngoc, deputy director of the Europe Market Department.

Under the Vietnam-Eurasia Economic Union Free Trade Agreement, both sides will reduce or exempt tariffs on nearly 90 percent of items and open their markets for investment and services.

The Eurasia Economic Union, which consists of Russia, Armenia, Kyrgysstan, Belarus, and Kazakhstan, is expected to be a lucrative market for Vietnamese apparel, seafood, agricultural products, and footwear.

http://english.vov.vn/economy/vietnams-exports-see-positive-signs-348251.vov

Agro-forestry-aquatic product exports hit $10.8 billion 03/May/2017 Intellasia| VNS

The export value of agro-forestry-aquatic products reached $10.8 billion in the first four months of 2017, a year-on-year surge of 9.1 per cent, the Ministry of Agriculture and Rural Development said.

Key farm produce contributed $5.8 billion to the export value, up 12 per cent from the same period last year. Some 1.86 million tonnes of rice, worth $834 million, were shipped abroad, down 7.7 per cent in volume and 6.9 per cent in value compared with the same period last year.

The country raked in $1.34 billion from exporting 592,000 tonnes of coffee, representing a decrease of 10.6 per cent in volume but a rise of 19.2 per cent in value year-on-year.

Exports of wood and wooden products brought home $2.4 billion in the four-month period, rising 12.7 per cent over the figure of 2016. The United States, China and Japan remained Vietnam's largest import markets.

During the period, Vietnam also shipped aquatic products worth $2.1 billion abroad, achieving a growth rate of 8.2 per cent year-on-year.

Meanwhile, vegetable and fruit exports witnessed a year-on-year hike of 32.6 per cent in export value to $1 billion. The four largest import markets were China, the United States, Japan and the Republic of Korea.

Vietnam spent $8.52 billion to import agro-forestry-aquatic products from other countries, up 21.4 per cent from last year's figure.

http://bizhub.vn/news/agro-forestry-aquatic-product-exports-hit-108 billion_285819.html

Garment exports grow despite hurdles 03/May/2017 Intellasia| VNA

The domestic garment industry has faced many challenges in exporting to key markets, such as the European Union (EU) and the United States, but it still has a chance of achieving its export target this year, according to experts.

First quarter figures appear to support this expectation. Vietnam earned 6.84 billion USD from garment and textile exports in the first quarter of this year, 11.2 percent more than in the same period last year, according to the Vietnam Textile and Apparel Association (VITAS).

Vietnam's textile and apparel sector has set a target of seven percent growth over 2016, with total export earnings of over 30 billion USD.

Currently, Vietnamese garment and textile products are available in 40 countries and territories, with major markets including the United States, Japan, the Republic of Korea, China and the EU. VITAS has urged enterprises to optimise the capacity of their equipment to reduce production costs and seek orders for high-quality products.

But Dang Phuong Dung of the VITAS advisory board said the growth of export value and volume to the EU was low, with local manufacturers receiving only small orders. Vietnam's garment industry has also not developed in terms of design, so most textile and garment enterprises have found it difficult to complete export orders from this market.

A high import tax rate of 8-12 percent to the EU market is also one of the obstacles facing garment exporters to this market.

The EU is the second largest export market of Vietnamese garment products, but it has only captured a 1.9 percent share of the union's total import value, according to the association, presenting opportunities for growth.

However, Dung said, meeting the rules of origin under the EU-Vietnam Free Trade Agreement in terms of preferential tax rate would be the biggest challenge for Vietnamese garment exports.

The garment industry expects Asean countries, including Vietnam, to sign an FTA between the Asean region and the EU, and then local garment enterprises would have more options to get material for garment production from other Asean countries, meeting rules of origin under the FTA.

According to data of the general Department of Customs, in 2016, the textile and garment sector reached total export value of 23.8 billion USD, an increase of 4.6 percent year-on-year. In particular, the United States continued to be the largest export market of Vietnamese garment products, accounting for 48 percent of the total garment export value. The textile and garment export to the United States has increased by 12-13 percent in value each year in recent years.

Many enterprises invested in building textile and dying factories on an extensive and intensive scale to boost opportunities in production and business for the planned Trans-Pacific Partnership (TPP), according to the association.

But now that the TPP with the United States' withdrawal is no longer in the cards, experts say these facilities would help the textile and garment industry complete production processes and actively source material, focusing on the significant opportunities offered by other FTAs, such as the EU-Vietnam and the Vietnam-Republic of Korea FTAs.

http://en.vietnamplus.vn/garment-exports-grow-despite-hurdles/111050.vnp

Quang Ninh's exports increase by 5pct in first months of 2017 03/May/2017 Intellasia| VNA

Total export turnover of the northern province of Quang Ninh hit 461.3 million USD in the first four months of 2017, making up 28 percent of the yearly plan and up 5.3 percent from a year ago, according to the provincial Department of Planning and Investment.

In April also, the province earned 130 million USD from exports. Coal export brought home 59.7 million USD from shipments of 455,000 tonnes. Other export goods seeing increase included cement, up 32 percent; wolfram, 19.1 percent; textiles, 14.4

percent; and vegetable oil, 9.2 percent. Imports of local businesses were valued at 128.31 million USD in April, adding up to 496.4 million USD

in total imports in the January-April period, down by 24 percent compared to the same period last year. http://en.vietnamplus.vn/quang-ninhs-exports-increase-by-5-percent-in-first-months-of-2017/111083.vnp

Vietnam's cement, clinker exports to Peru, Sri Lanka remarkably grow in Q1 03/May/2017 Intellasia| Tuoitre News

Peru and Sri Lanka have emerged as potential markets for Vietnamese cement and clinker, reporting remarkable import growth in the first quarter of 2017.

According to the Vietnam National Cement Association (VNCA), apart from the traditional markets of Bangladesh and the Philippines, Vietnam's cement and clinker manufacturers have been exporting more products to Peru and Sri Lanka.

In the first three months of 2017, Peru imported close to 197,000 metric tonnes of cement and clinker from Vietnam, up 50 percent against the same period of last year.

Vietnam's Q1 cement and clinker shipments to the South American country were valued at $9.13 million, 43 percent more than the 2016 figure.

Meanwhile, Sri Lanka imported $3.34 million worth of cement and clinker from Vietnam in the first quarter of 2017, surpassing 2016 by over 20 percent.

In terms of quantity, the South Asian country have also bought over 30 percent more of cement and clinker from Vietnam since the beginning of 2017 than they did in the same period of last year.

At the same time, however, Vietnam's cement exports to other markets such as Australia, Laos, Cambodia and Malaysia have experienced significant drops of between 30 and 60 percent in the period, the VNCA noted.

Increased exports to Peru and Sri Lanka were therefore the 'savior' for Vietnam's cement industry in the current time of tremendous hardship, the VNCA said.

http://tuoitrenews.vn/business/40780/vietnams-cement-clinker-exports-to-peru-sri-lanka-remarkably-grow-in-q1

Basic salary to rise to VND1.3 million from early July

03/May/2017 Intellasia| The Saigon Times

The monthly basic salary for civil servants and public employees will increase 7 percent to VND1.3 million (about $57.2) from the current VND1.21 million from July 1, according to Decree 47/2017/ND-CP issued on April 24 by the government.

The new basic salary, which is used for calculating payrolls and allowances, will be applied to public officials, public employees working in agencies and civil service providers of the Vietnam Communist Party or the government, state-funded socio-political organisations and the armed forces.

The ministries, ministerial-level agencies and other government agencies will have to use the unused budget for wage reform in 2016, State budget estimates and public incomes to cover the pay raise in 2017.

Meanwhile, provinces and cities under the central government will use 10 percent of their regular expenditures (excluding salaries and salary-based allowances), part of public incomes, 50 percent of increased local budget and unused budget for salary reform in 2016 (if any) for the increase.

Localities having limited budgets will receive additional support from the government. After using all of the above sources but still lacking money for salary payments, such localities will receive extra money from the State budget.

http://english.thesaigontimes.vn/53695/Basic-salary-to-rise-to-VND13 million-from-early-July.html

Vietnam second most attractive SEA destination for foreign investors 03/May/2017 Intellasia| VN Economic Times

Vietnam is the second most attractive investment destination in Southeast Asia, following Myanmar, according to a Grant Thornton Vietnam survey.

Released on April 28, the survey on private investment revealed that 72 per cent of respondents said that the level of investment attractiveness in Vietnam was "Attractive" or "Very Attractive", similar to results in 2016. It was rated as "Very Attractive" by only 2 per cent of respondents, however, down 7 per cent from the previous survey.

Myanmar occupies the highest position, with potential from rapid economic growth, infrastructure, new investment laws, and many incentives for foreign investors.

Vietnam attracts foreign investors on account of its human resources, low labour costs, and the strong growth in its middle class.

Vietnam still has barriers to investment, however, of which corruption is a serious impediment. The country is not expected to make a breakthrough in fighting corruption in its public sector and investors are concerned about the state of political interference, "lubrication", and weak enforcement and inconsistent interpretation of laws.

Infrastructure is also an obstacle identified by foreign investors, as there are a large number of transport projects with high levels of investment capital but having little positive effect.

Foreign investors said that State-owned enterprise equitisation is a source of investment for them. Only 55 enterprises out of 430 have been successfully equitised, however, which is less than in 2015, when 220 were equitised.

Foreign investors say that equitisation creates various opportunities to approach Vietnam in major sectors such as telecommunications, petroleum, infrastructure, and retail.

Food and beverages and retail remain the most attractive sectors, according to the Grant Thornton Vietnam survey.

http://english.vietnamnet.vn/fms/business/177585/vietnam-second-most-attractive-sea-destination-for-foreign-investors.html

HCM City sees breakthrough developments

03/May/2017 Intellasia| VNA

The southern metropolis of HCM City has gained significant socio-economic accomplishments since the liberation of the South and national reunification on April 30, 1975.

Over the past 42 years, HCM City has made remarkable contributions to national building, defence, industrialisation, modernisation, and international integration.

The city was one of few localities in Vietnam to record double-digit growth for many consecutive years from 1991-2010 thanks to the creative implementation of the Party's guidelines on developing the socialist-oriented market economy.

It recorded annual average growth of 9.6 percent between 2011 and 2015, 1.66 times higher than the national average.

In 2016, the city achieved economic growth of 8.05 percent. The economic structure was shifted to services and industry-construction, which made up 54.8 percent and 28.76 percent of the municipal gross domestic product (GDP) respectively. The agricultural sector only comprised 0.8 percent of GDP.

HCM City has long been one of the most attractive foreign direct investment (FDI) destinations. In 2016, the city lured $3.7 billion, raising total FDI to approximately $41 billion, with 6,485 foreign

investment projects. The FDI sector contributed 23.8 percent to the city's GDP. Per capita GDP increased to $5,428 in 2016 from $712 in 1995-1996. HCM City is considered a bridge connecting the southern region with the south central and Central

Highland regions and plays a crucial role for the development of the southern key economic region. These achievements were attributed to the city's focus on planning urban areas, industrial and processing

parks, and developing transport infrastructure. The southern economic hub has also made strides in culture, society, education-training, and human

resources. It is one of the leading localities in national universal secondary education. The healthcare system has been developed with the increasing use of modern technologies in medical

examination and treatment. So far, 54 out of the 56 communes in the city have been recognised as new-style rural areas. http://english.vov.vn/economy/hcm-city-sees-breakthrough-developments-348575.vov

Draft dictates foreigners pay into social insurance 03/May/2017 Intellasia| VIR

All foreign employees in Vietnam with work permits, practice certificates, or practice licences issued by local authorised agencies will be subject to compulsory social insurance payments if a new draft decree is approved.

The Ministry of Labour, Invalids and Social Affairs (MoLISA) has publicised a draft decree guiding the application of compulsory social insurance to foreign citizens working in Vietnam. Under the draft, starting from January 1, 2018, foreign employees would have to participate in compulsory social insurance, and pay insurance premiums based on their salaries, allowances, and other additional amounts carved in their labour contracts.

Specifically, the employees would be required to pay 8 per cent of their monthly salaries for the company's pension and death gratuity funds, while the employers would have to make monthly fund payments of 14 per cent.

The new draft decree details the implementation of several articles in the 2014 Law on Social Insurance, which requires foreign employees with work permits, practice licences, or practice certificates to have mandatory social insurance packages. This contravenes the 2006 Law on Social Insurance, which states that foreign employees in Vietnam are free from any mandatory or voluntary social insurance.

According to MoLISA's Department for Employment, the reason for requiring foreign employees to participate in compulsory social insurance in Vietnam is that their population has greatly increased, from 63,557 in 2011 to 83,046 last year. Of this number, those with short-term work permits of less than one year account for only 4.4 per cent.

The number of foreign employees in Vietnam will likely climb in the future due to the country's deepening international integration, especially the free trade agreements with 55 partners most notably the loosening restrictions on the movement of skilled employees between Asean members under Asean Economic Community commitments. This is the motivation behind the draft decree, according to MoLISA.

However, the regulation received censure from some experts familiar with foreign employment issues in Vietnam.

Quach Thi Nhung, head of Human Resources at South Korean garment maker KJ Vina in the southern province of Binh Duong, told VIR, "This regulation will be a new burden for both foreign employees and their bosses. It is just like a type of new tax."

If this regulation is installed, South Korean experts working at KJ Vina would have to pay more than VND100 million ($4,545) per year into pensions and death gratuity funds, in addition to a large sum that the firm would have to contribute, covering the 14 per cent co-pay.

Currently, these experts like all foreign employees in Vietnam are not subject to any social insurance requirement.

Nguyen Viet Ha, managing director of the Vietnam Office of US-backed investment consultant BowerGroupAsia Inc, told VIR, "The regulation could prevent Vietnam from attracting skilled experts and high-quality employees.

"The regulation could also discourage foreign investors from investing in Vietnam because it would increase the costs for hiring foreign employees [with unique, irreplaceable skills]. This would also make Vietnam's investment climate less attractive," Ha added, drawing on her 20 years of experience with local labour issues.

Under the existing Labour Code's Article 170, foreign employees in Vietnam must be highly trained and skilled, such as managers, experts, and skilled employees whose labour cannot be replaced by the local workforce. Their work permits are restricted to two years.

By Ha's reasoning, the application of compulsory social insurance to foreign employees who will be in Vietnam for a short period of time is quite irrational. They would not be able to enjoy the pensions they would be forced to contribute to though they likely would receive some allowances once they finished their local work term.

"Many foreign employees in Vietnam also have to pay for their social insurance packages in their home countries, while they would still have to do the same in Vietnam without being able to enjoy pension benefits or their equivalents. That's unfair," Ha said.

http://www.vir.com.vn/draft-dictates-foreigners-pay-into-social-insurance.html

Vietnam trails behind Burma in investment attractiveness 03/May/2017 Intellasia| The Saigon Times

Vietnam ranks second in Southeast Asia behind Myanmar in terms of attractiveness to foreign investors, shows a just-released survey.

A report on private investment by Grant Thornton Vietnam revealed that 72 percent of respondents agreed that Vietnam is attractive to investors. However, the percentage of respondents evaluating the business environment as "highly attractive" has tumbled to 2 percent, a reduction of seven points against last year.

Myanmar took the lead due to the rapid economic growth rate, infrastructure and new investment law favouring foreign investors. Meanwhile, Vietnam holds the advantages of human resources, low labour costs and a fast-expanding middle class.

However, investors in Vietnam struggle with problems like corruption, bribery, political interference and inconsistent interpretation of laws and regulations. Besides, inadequate infrastructure coupled with bureaucracy and administrative procedures have discouraged investors in the country.

The report also showed that food and beverage and retail are the most attractive sectors to foreign investors.

The lower-than-expected pace of State-owned enterprise restructuring is another obstacle. In 2016, only 55 State-owned enterprises were equitised successfully, compared to 220 enterprises that went public in 2015.

Experts and foreign investors see the equitisation of State-owned enterprises creating lucrative investment opportunities.

http://english.thesaigontimes.vn/53702/Vietnam-trails-behind-Myanmar-in-investment-attractiveness.html

TPP members to meet in Vietnam to discuss trade deal future without US

04/May/2017 Intellasia| Vnexpress

Signatory countries have been holding talks in Toronto this week and are set for further talks at an Apec summit in Hanoi this month.

Vietnam and other members of the Trans-Pacific Partnership are meeting in Canada to discuss the future of the pact after the US withdrawal.

Senior trade officials from the signatory countries have been holding "TPP-minus-one" talks in Toronto on Tuesday and Wednesday. The negotiations are expected to continue at the upcoming Asia-Pacific Economic Cooperation summit to be held in Vietnam this month.

Bloomberg said Canada's hosting of the event is the latest sign that it is looking to pivot away from its biggest trade partner amid escalating disputes with Donald Trump's administration over several trade matters, including the North American Free Trade Agreement.

"Canada is front and centre when it comes to trade in the Asia-Pacific region," International Trade minister Francois-Philippe Champagne was quoted as saying.

Trump quickly withdrew from the TPP after taking office last January, leaving the trade pact with 11 member states: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.

Champagne said he was "very happy that talks are progressing" on what's next for the TPP nations, but there has been no consensus on whether the agreement can be salvaged.

"We're going to see. That's why we're meeting next in Vietnam," he told Bloomberg. "What's important now is to look at all options."

Hanoi will host the Apec Trade ministers Meeting on May 20 and 21. The meeting will launch new actions by the 21 Apec member economies to establish a freer trade environment in the region.

Vietnam has been part of various attempts to move on from the TPP hiccup. In February, its representatives met with counterparts from 15 Asian neighbours including China to

discuss the Regional Comprehensive Economic Partnership, which could be seen as a rival to the TPP. Prime minister Nguyen Xuan Phuc also called for deeper economic ties between the bloc's members at

the Asean Business Summit last December to deal with tighter trade controls in the US http://e.vnexpress.net/news/business/tpp-members-to-meet-in-vietnam-to-discuss-trade-deal-future-

without-us-3579104.html

VN trade value up 20.1 per cent in four months 04/May/2017 Intellasia| VNS

Vietnam's total trade value in the first four months of the year gained a year-on-year increase of 20.1 per cent to $125.41 billion, according to the general Department of Customs.

Of which, export value reached $61.34 billion, a year-on-year surge of 15.4 per cent, and import value stood at $64.07 billion, a year-on-year increase of 24.9 per cent.

In the first four months of 2017, Vietnam had a trade deficit of $2.74 billion, or 2.2 per cent of the national total trade value.

Major export products included telephone and telephone parts, textile and garment, footwear, and vehicles and their parts.

During the first four months, export value rose 0.3 per cent to $11.37 billion for telephones and parts; 9.1 per cent to $7.47 billion for textiles and garments; and 9.6 per cent to $4.17 billion for footwear against the same period last year.

Meanwhile, major import products included machinery, equipment, tools and parts, computers, electronic products and parts, fabric, steel, plastic, and materials and sub-materials of the textile, garment and footwear industries.

Machinery, equipment, tools and parts reached $11.32 billion, a year-on-year increase of 38.9 per cent. The import value also surged 24.7 per cent to $10.45 billion for the group of machinery, equipment, tools

and parts; and 45.4 per cent to $3.3 billion for steel products compared with the same period of last year, reported bnews.vn.

Agro exports The export value of agro-forestry-aquatic products reached $10.8 billion in the first four months of 2017,

a year-on-year surge of 9.1 per cent, the Ministry of Agriculture and Rural Development said. Key farm produce contributed $5.8 billion to the export value, up 12 per cent from the same period last

year. Some 1.86 million tonnes of rice, worth $834 million, was shipped abroad, down 7.7 per cent in volume and 6.9 per cent in value compared with the same period last year.

The country raked in $1.34 billion from exporting 592,000 tonnes of coffee, representing a decrease of 10.6 per cent in volume but a rise of 19.2 per cent in value year-on-year.

Exports of wood and wooden products brought home $2.4 billion in the four-month period, rising 12.7 per cent over 2016's figure.

The United States, China and Japan remained Vietnam's largest import markets of wood and wooden products.

During the period, Vietnam also shipped aquatic products worth $2.1 billion abroad, achieving a growth rate of 8.2 per cent year-on-year. Meanwhile, vegetable and fruit exports witnessed a year-on-year hike of 32.6 per cent in export value to $1 billion. The four largest import markets of these products were China, the United States, Japan and the Republic of Korea. Vietnam spent $8.52 billion to import agro-forestry-aquatic products from other countries, up 21.4 per cent from last year's figure.

http://bizhub.vn/news/vn-trade-value-up-201-per-cent-in-four-months_285857.html

Vietnam's 4M trade deficit continues to rise 04/May/2017 Intellasia| VN Economic Times

The latest trade report from the general Statistical Office (GSO) shows that the trade deficit increased yet again in April, by $800 million, bringing the four-month total to $2.74 billion.

Export turnover in April was estimated at $16.7 billion, down 3.2 per cent month-on-month and up 9.6 per cent year-on-year.

Import turnover, meanwhile, reached $17.5 billion, down 4.6 per cent month-on-month but up 24.9 per cent year-on-year.

Export turnover in the first four months was estimated at $61.3 billion, up 15.4 per cent year-on-year. Exports from the domestic sector stood at $17.3 billion while those of the foreign-invested sector (including crude oil) totalled $44 billion.

Some commodities recorded high growth, such as textiles, electronics, footwear, seafood, timber, vegetables, and crude oil, while agricultural products such as cassava, pepper and rice plummeted.

The US remained Vietnam's largest export market, with the turnover reaching $11.9 billion, followed by the EU with $11.3 billion, China $8.6 billion, Asean countries $6.7 billion, Japan $5.2 billion, and South Korea $4.4 billion.

Import turnover in the first four months totalled $64.1 billion, up 24.9 per cent year-on-year. The domestic sector imported $25.8 billion and the foreign-invested sector $38.3 billion.

According to the GSO, import turnover for production items increased year-on-year, such as machinery parts, telephones and spare parts, steel, plastics, chemicals, animal feed, metal, and petroleum.

China remained the largest source of imports into Vietnam during the first four months of the year, with turnover of $17.6 billion, up 19.4 per cent year-on-year, followed by South Korea with $13.7 billion, up 45.3 per cent, and Asean countries $8.9 billion, up 20.4 per cent.

The trade deficit has headed upwards in the early months of the year, with the four-month figure of $2.74 billion representing 4.5 per cent of exports.

The domestic sector's trade deficit was $8.49 billion while the foreign-invested sector recorded a surplus of $5.75 billion.

http://english.vietnamnet.vn/fms/business/177655/vietnam-s-4m-trade-deficit-continues-to-rise.html

PMI eases to 54.1 in April 04/May/2017 Intellasia| VN Economic Times

April Purchasing managers' Index down slightly from March's 22-month high. Vietnam's Manufacturing Purchasing managers' Index (PMI) came in at 54.1 in April, down slightly from

the 22-month peak of 54.6 in March but still signaling health in the sector at the start of the second quarter, Nikkei has said in its latest report.

A reading above the neutral mark of 50 indicates expansion while a reading below 50 suggests contraction.

Strong growth in new orders continued to support rises in output, employment, and purchasing activity in Vietnam's manufacturing sector during April. In particular, a survey-record increase in new business from abroad was recorded. Elsewhere, there were some signs of inflationary pressures easing, with both input costs and output prices increasing at the weakest rates in six months. Business conditions have now improved in each of the past 17 months, the report noted.

A sharp rise in new orders was central to the latest improvement in operating conditions, with new business from abroad increasing at a survey-record pace. The rate of growth in new export orders has now quickened in three successive months.

Panelists linked expansions in both total new business and new export work to strengthening client demand. New orders have increased continuously since December 2015. Growth in new work led manufacturers to increase production again in April. The rate of expansion was marked, albeit weaker than March's 22-month high.

The rise in production enabled firms to work through outstanding business despite strong new order growth. The fall in backlogs of work was the first since the end of 2016. Stocks of finished goods also decreased, with some reports of products being delivered from warehouses.

A further impact resulting from the rise in new work was a pick-up in purchasing activity by Vietnamese manufacturers, according to the report. The rate of expansion remained sharp and contributed to a tenth successive monthly rise in stocks of purchases. Some panelists were quoted as having increased inventories in anticipation of further new order growth in the coming months.

Employment increased for the thirteenth successive month as firms responded to new order growth. The rate of job creation eased, but remained solid. "Confidence around future rises in new business was also a factor behind continued strong optimism with regards to production over the next year," the report stated.

Also, higher demand for inputs encouraged suppliers to increase their prices during April, thereby leading to another monthly rise in input costs. There were also some mentions of higher prices for goods from China. However, the rate of cost inflation eased to the weakest since last October. Output prices also rose at the slowest pace in six months as charges were increased only modestly. Where factory gate prices rose, this was largely in response to higher input prices.

"A record rise in exports was the key highlight from the latest Vietnam Manufacturing PMI survey as firms once again displayed a good ability to secure new work in international markets," said Andrew Harker from IHS Markit, which compiles the survey.

"This success fed through to improvements throughout the sector, with production, employment and purchasing activity all rising solidly in April. The manufacturing sector therefore remains a star performer in Vietnam at the start of the second quarter."

IHS Markit earlier forecast Vietnam's GDP would expand 6.4 per cent this year. http://vneconomictimes.com/article/business/pmi-eases-to-54-1-in-april

Vietnam's FDI inflow rises 3 pct to $4.8 billion in first four months 04/May/2017 Intellasia| Vnexpress

Mining has overtaken real estate to become the second most attractive sector in April. Vietnam has attracted $4.8 billion in disbursement of foreign direct investment during the first four

months of 2017, the government said. The actual inflow, a key foreign exchange source along with overseas remittances, was up 3.2 percent

from the same period last year, the Ministry of Planning and Investment's Foreign Investment Agency said in a monthly report.

Foreign investors have committed to a total investment of $4.88 billion in 734 new FDI projects during the period, down 4 percent from a year ago, the report said. Additional funds to existing projects were estimated at $4.4 billion as of April 20.

This month mining has overtaken real estate in terms of committed funding, led by a newly licensed natural gas pipeline project worth $1.27 billion in the oil and gas sector.

Most of the new pledges still went to the manufacturing and processing sector, a trend seen over the past five years. The sector alone has attracted $7.36 billion in FDI pledges and additional funds.

South Korea was the biggest investor with more than $4 billion in pledges in the January-April period, followed by Japan with $1.85 billion and Singapore with $1.1 billion.

Last year, the country's FDI inflow hit a record high of $15.8 billion. http://e.vnexpress.net/news/business/vietnam-s-fdi-inflow-rises-3- percent-to-4-8 billion-in-first-four-

months-3577598.html

Luring foreign investment in anticipation of FTAs 04/May/2017 Intellasia| VNA

Vietnam's involvement in 12 bilateral and multilateral free trade agreements with 56 economies around the world is expected to help the country expand its global economic integration. If the country attracts foreign direct investment effectively after the agreements take effect, this would help accelerate Vietnam's modernisation and industrialisation.

Anticipating chances brought in by FTAs, many foreign enterprises have sought opportunities to invest in Vietnam.

The Foreign Investment Agency reported in 2016, FDI attraction in Vietnam increased by over 7 percent over 2015. In the first quarter of this year, the country lured 7.7 billion USD in FDI.

According to experts, new generation FTAs, such as the EU-Vietnam FTA, will consolidate the trust of both domestic and international businesses who wish to expand and develop production in Vietnam.

The EU-Vietnam FTA, expected to take effect in 2018, is hoped to boost Vietnam's economic structure as well as reform institutions through attracting FDI.

FTAs are also a chance for Vietnamese enterprises to learn. Attracting investment from developed countries is one of the key measures to help Vietnam accelerate the country's industrialisation and modernisation process.

http://en.vietnamplus.vn/luring-foreign-investment-in-anticipation-of-ftas/111096.vnp

ODA funds prioritised for urban infrastructure, environment 04/May/2017 Intellasia| The Saigon Times

The government will prioritise the allocation of ODA and preferential funds for HCM City to develop urban infrastructure and environment projects, as per a decree on a number of specific financial mechanisms for the city.

The allocation of investment capital for projects financed by ODA and preferential sources in HCM City shall follow the principle: for those projects payable from the city's own budget, the government lends the city and the city prepares reciprocal capital from its budget to pay principal and interests on time.

For some important projects of a large scale in the fields of environment, transport and irrigation, which exceed the capacity of the municipal budget, the HCM City government shall propose the Ministry of Planning and Investment and the Ministry of Finance for supports from the central budget, says the decree signed by the prime minister to be effective from June 10.

In a report to the planning ministry and the finance ministry late this March, the HCM City government pinpointed the difficulties and obstacles in the implementation of the public investment plan, including those related to mechanisms, legal framework and ODA disbursement.

Some key ODA projects of the city are making a very good progress and have been waiting for payments from the HCM City State Treasury, the municipal government remarked. However, the current pause in disbursement from the State Treasury is not in accordance with the provisions of the signed international contracts and Vietnam's regulations on contract management, likely to cause complaints, fines and interest due to late payments.

To speed up the disbursement of ODA capital and minimise the complaints from contractors, the city has sent many petitions to the prime minister, the planning ministry and the finance ministry, looking for additional ODA funds in 2016. However, by the end of this March, their efforts had not been fruitful.

ODA capital allocation from the central budget in the medium term from 2016 to 2020, according to the Ministry of Planning and Investment, is set at VND13.5 trillion. The amount projected for 2017 is some VND4.03 trillion, which is yet to be paid out, making it impossible to meet the disbursement progress as committed to donors.

To meet the capital needs of ODA-funded projects, promote the efficiency of the use of the State budget capital and avoid international complaints, the HCM City government has proposed the planning ministry and the finance ministry approve the medium-term ODA grant of about VND48.7 trillion for the city in 2016-2020 andVND8 trillion in 2017 alone.

The timely allocation of ODA capital has become more urgent as recent information shows that the Metro Line No. 1 (Ben Thanh-Suoi Tien) in HCM City, an ODA-funded project, is at risk of further delays.

Earlier, on April 27, at a meeting on the socio-economic situation of HCM City, Le Nguyen Minh Quang, head of the HCM City Management Board of Urban Railway Projects, reported the city needed an estimated VND5.2 trillion for the development of the Metro Line No. 1. However, the ODA capital allocation planned by the Ministry of Planning and Investment was only VND2.9 trillion.

In September 2016, the Ministry of Finance asked the State Treasury to stop further payments to the contractors of the Metro Line No. 1. Therefore, before the Lunar New Year, the city had to advance nearly VND1 trillion to the contractors.

By April 26, HCM City had still owed the contractors nearly VND1.34 trillion. At present, the city is monitoring 20 ongoing projects using ODA capital with a total investment of

around VND114.24 trillion, of which ODA funds account for some VND97.8 trillion and reciprocal capital about VND16.44 trillion.

http://english.thesaigontimes.vn/53724/ODA-funds-prioritised-for-urban-infrastructure-environment.html

EEC development cited as the first step toward a new facet of Thailand 04/May/2017 Intellasia| PRD

Prime minister general Prayut Chan-o-cha has cited the development of the Eastern Economic Corridor (EEC) as the first step leading to a new facet of Thailand and a better future of the country.

The prime minister on 5 April 2017 chaired a meeting of the EEC Development Policy Committee at U-Tapao Airport in Ban Chang district, Rayong province. He also visited the EEC project site within U-Tapao Airport.

During the meeting, the prime minister said that the EEC development project received a positive response from investors, who expressed their satisfaction with the government's policy on the project. He is confident that the project would greatly benefit Thailand and CLMV countries, comprising Cambodia, Lao PDR, Myanmar, and Vietnam.

The prime minister urged people living around the EEC project sites in Chon Buri, Rayong, and Chachoengsao to cooperate with the government in the EEC development. The government would support education development to produce a workforce in response to the growth of the EEC in the future.

Moreover, it would facilitate the operations of the private sector through tax, non-tax, and legal measures. At the same time, the EEC development would be carried out in equilibrium with natural resource and environmental conservation.

On this occasion, the prime minister also witnessed the signing of three memorandums of understanding (MOUs) on cooperation in aviation and logistics industries. The first MOU, signed between the Royal Thai Navy and Thai Airways International Public Company, involves the development of the first phase of an aircraft maintenance centre.

The second MOU was also signed between the Royal Thai Navy and Thai Airways International Public Company. It seeks to develop the first phase of an air transport and logistics centre. The third MOU was signed between the Royal Thai Navy and the Civil Aviation Training centre for the Development of Aeronautical and Aerospace Training Centre.

Industry minister Uttama Savanayana said that major companies, such as BMW, Toyota, Ali Baba, Lazada, Google, and Microsoft, have shown interest in investing in the EEC development project.

The Industrial Estate Authority of Thailand has set aside 26 billion baht to invest in infrastructure development for three EEC projects, namely the development of the third phase of the Port of Map Ta Phut, the establishment of the Digital Park Thailand, and the preparation for new sites to accommodate an industrial estate in the EEC.

http://english.vov.vn/economy/eec-development-cited-as-the-first-step-toward-a-new-facet-of-thailand-348771.vov

Strong growth in labour demand and supply in first quarter

04/May/2017 Intellasia| VNS

Recruitment demand for mid- and senior-level staff rose by 73 per cent in the first quarter compared to the same period last year, according to a report from Navigos Search, an executive search service in Vietnam.

The top five fields looking to fill more executive jobs are manufacturing, IT, consumer goods and retail, banking and finance, and business services.

For the first time, the business service industry appeared in the top five for executive positions, with the highest demand in financial advisory, management advisory, promotion, advertising, and education.

In the manufacturing industry, industrial construction and civil construction categories occupied the largest portions, followed by electricity and electronics.

The highest demand in the consumer goods industry was from F&B (food and beverages) and fashion and cosmetics.

The recruitment demand for IT developers and engineers skilled in embedded software increased significantly. At many companies, demand doubled compared to last year.

However, the supply of qualified and experienced developers and IT engineers in Vietnam still did not meet demand.

Many companies had to change their recruitment process because of demand for employees who have full working proficiency in English.

Previously, companies put technical skills as a priority, but they now test English ability first to eliminate candidates and then provide further technical training for those who pass the English test.

The online recruitment website Vietnamworks said in its latest report that both recruitment demand and labour supply jumped in the first quarter of the year.

Recruitment demand in the first quarter climbed 23 per cent year-on-year, while labour supply rose 38 per cent year-on-year.

In the first quarter, the top five industries with the highest growth in recruitment demand were electricity/electronics with an increase of 67 per cent; executive officers and managers with 104 per cent; construction with 46 per cent; PR and advertising with 35 per cent; and customer services with 51 per cent.

As for labour supply, the highest number of job applications belonged to education, electricity/electronics, executive officers and managers, architecture/interior design and customer services.

During the period, the IT industry led recruitment demand, followed by administrative/secretarial, accountants, customer services, PR/advertising, manufacturing, architecture/interior design, construction, marketing and sales.

HCM City and Hanoi were the two hottest locations for recruitment demand in the country, with Binh Duong Province, Da Nang and Bac Ninh Province rounding out the top five.

The administrative/secretarial industry had the highest competition rate with 1/66, meaning that one candidate has to compete with 66 others for a job.

The second position belonged to accountants with a 1/61 ratio. The remaining top five were import/export (1/56 rate), manufacturing (1/51) and health service/biotechnology (1/47).

Information in the report was based on data sets collected from posted jobs and job applications on www.vietnamworks.com.

http://bizhub.vn/news/strong-growth-in-labour-demand-and-supply-in-first-quarter_285851.html

Retail sales, services revenue up 6.7pct in four months 04/May/2017 Intellasia| VNA

The country's total retail sales and services revenue reached 1,267.9 trillion VND (56.7 billion USD) in the first four months of this year, a year-on-year increase of 6.7 percent.

The growth rate was lower than the growth rate of 7.8 percent in the first four months of 2016, the general Statistical Office (GSO) reported.

GSO's domestic trade expert Vu Manh Ha said purchasing power of the people decreased in the first four months, making growth rate of total retail sales and services revenue in this period lower than the growth rate in the same period of 2016.

Meanwhile, the average consumer price index (CPI) growth rate for the first four months of this year at 4.8 percent was higher than the rate of 1.48 percent for the correspondent time of 2016. That was one of the reasons for lower growth rate in total retail sales and services revenue during the four-month period.

However, reduction in purchasing power did not affect the retail sector. Retail sales and services revenue of this sector gained a year-on-year increase of 9.7 percent to 955.8 trillion VND.

Revenue of accommodation and catering services in the first four months surged 11.3 percent year-on-year to 153.4 trillion VND.

Revenue of the tourism and travel sector, accounting for 0.8 percent of total revenue, had the lowest growth rate at 6.3 percent year-on-year in the first four months of 2017.

http://en.vietnamplus.vn/retail-sales-services-revenue-up-67-percent-in-four-months/111103.vnp

Fruit, vegetable exports hit 1 billion USD in 4 months 04/May/2017 Intellasia| VNA

Fruit and vegetable exports earned an estimated 1 billion USD in the first four months of 2017, up 32.6 percent from the same period last year.

According to the Ministry of Agriculture and Rural Development, the top four importers of Vietnamese goods, who accounted for 82.9 percent of the value, were China, the US, Japan and the Republic of Korea.

Russia recorded an 88.7 percent increase in imports of Vietnamese fruits and vegetables compared to last year, followed by Japan (50.9 percent), Thailand (34 percent) and China (33.3 percent).

In the domestic market, from the beginning of April, prices of several Mekong Delta fruits, such as fresh coconuts and rambutans, increased due to supply shortages.

Prices of pineapples in Tien Giang levelled off after a plunge, while prices of vegetables in Lam Dong are likely to decline because of abundant supply.

http://en.vietnamplus.vn/fruit-vegetable-exports-hit-1 billion-usd-in-4-months/111095.vnp

Over 13,000 new firms set up in April: GSO 04/May/2017 Intellasia| VNA

As many as 13,102 new enterprises were established in April, the highest figure in the past 12 months, representing a month-on-month rise of 8.9 percent, according to the general Statistical Office (GSO).

According to the GSO, total registered capital of the firms set up in April was 98.4 trillion VND (4.3 billion USD), a fall of 17.1 percent from the previous month.

In the first four months of this year, 39,580 enterprises were established with combined capital of 369.6 trillion VND (16.25 billion USD), up 14 percent and 48.9 percent year-on-year, respectively.

Together with 455.7 trillion VND (20.04 billion USD) added into already established firms, 825.3 trillion VND (36.2 billion USD) was pumped to the economy in the first four months of 2017.

At the same time, 11,545 businesses resumed operations, an increase of 1.9 percent year-on-year. In January-April, respective surges in new enterprises and investment of information and communication

technology were 237.2 percent and 44.9 percent, real estate, 66 percent and 49.9 percent, education and training, 30.4 percent and 84.2 percent, employment service, equipment renting and support services, 18.2 and 145 percent.

Meanwhile, power, water and gas production and distribution saw a rise of 34.4 percent in the number of new firms, while those of agro-forestry, seafood are 21.8 percent, and other services hit 19.9 percent. However, the fields experienced a fall in capital of 3.2 percent, 12.9 percent and 12.4 percent.

In the first four months of 2017, growth in the number of new firms was recorded in all regions, including northern midland and mountainous region with 1,724 firms, a rise of 29.9 percent, the Red River Delta with 12,028 firms, up 18.9 percent, and the Central Highlands with 1,021 firms, an increase of 14 percent.

The GSO also reported that the number of enterprises halting operations in the first four months was 27,400, up 9 percent year-on-year, mostly in mining, forestry, aquaculture and power, water and gas production and distribution.

http://en.vietnamplus.vn/over-13000-new-firms-set-up-in-april-gso/111101.vnp

Fishery output exceeds 1 million tonnes in four months 04/May/2017 Intellasia| VNA

Vietnam's fishery output in the first four months of this year exceeded 1 million tonnes, up 5.7 percent year-on-year thanks to favourable weather, according to the Ministry of Agriculture and Rural Development (MARD).

Of the total, the offshore catch's output was 959,700 tonnes, a rise of 6 percent compared to the same period last year, while the output caught in inland rivers and lakes was 46,000 tonnes, a fall of 0.6 percent.

The MARD attributed the results to high seafood reserves, along with stable prices, smooth distribution and support policies employed by coastal localities.

The three south central provinces specialising in tuna fishing Phu Yen, Binh Dinh and Khanh Hoa - caught 8,545 tonnes of tuna, up 6.4 percent year-on-year. Tuna prices at ports range between 90,000 VND and 115,000 VND per kilo.

According to the ministry, the aquaculture output in the first four months of 2017 reached 865,000 tonnes, up 2.1 percent year-on-year, including 335,300 tonnes of tra fish raised in the Mekong Delta region. At the same time, tra fish price is increasing due to high demand.

Meanwhile, brackish tiger prawn production in Mekong Delta localities was estimated at 55,600 tonnes, up 3.4 percent year-on-year, along with 32,400 tonnes of white-leg shrimps.

http://en.vietnamplus.vn/fishery-output-exceeds-1 million-tonnes-in-four-months/111113.vnp

CIEM suggests amending Decree 109 on rice export 04/May/2017 Intellasia| The Saigon Times

The Central Institute for Economic Management (CIEM) has proposed the government scrap unreasonable conditions on rice export in Decree 109/2010/ND-CP and replace them with quality conditions for each rice species.

Firstly, the government should give small-scale enterprises a green light to export their own rice of high quality in small quantities, facilitating them to penetrate demanding and choosy markets, CIEM said in its report entitled "Challenges in the development of Vietnam's rice value chain."

Secondly, the government should not directly participate in government-to-government contracts but to assist enterprises in their direct negotiations by offering market information, predicting rice prices, and accessing international distribution channels. The current rice export mechanism dictated by the Vietnam Food Association (VFA) and State-owned enterprises (SOEs) has had an adverse effect on the rice value chain.

Thirdly, it is necessary to equitise SOEs and remove VFA's monopolistic power. VFA should not have the right to decide on rice export and distribute benefits to its member enterprises. Besides, VFA should be equally represented by all stakeholders in the chain, especially rice producers.

Stringent regulations in the government's Decree 109 have eroded the competitiveness of the rice export sector. To get a certificate for rice export, enterprises are required to have at least one warehouse with a minimum capacity of 5,000 tonnes, and a milling facility with a minimum hourly processing capacity of 10 tonnes, and to have exported rice for 12 consecutive months.

There were over 200 rice exporters before the decree took affect but the current number is reduced to 145 enterprises, according to the VFA.

CIEM says the regulation has made the VFA hold a monopoly position in rice export and create barriers to healthy competition among rice exporters.

Article 17 of the decree prescribes enterprises must register with the VFA within three working days after their rice export contracts are clinched. This means they must submit copies of their contracts that mention their export rice prices and available amount of rice.

The VFA has the right to request local departments of trade and industry to check the reported amount of rice which may cause difficulties in enterprises' rice export activities. Besides, rice export traders must report on the progress of their contracts with the VFA.

CIEM says the current legal regulations are creating unfair advantages for SOEs to export rice. This seems to run counter to the 2013 Constitution, prescribing participants in various economic sectors are equal.

SOEs currently account for a high proportion of rice export shipments, thanks to government-to-government or so-called centralised contracts. These contracts are usually assigned to the VFA for the management and distribution to its own members.

Meanwhile, SOEs like the Vietnam Northern Food Corp. and the Vietnam Southern Food Corp. are VFA's leading companies, and their leaders are also VFA's leaders. These enterprises are mainly involved in the final stages of export activities and rely heavily on intergovernmental contracts.

http://english.thesaigontimes.vn/53726/CIEM-suggests-amending-Decree-109-on-rice-export.html

Dong Nai earns over 5.2 billion USD in export in four months 04/May/2017 Intellasia| VNA

The southern province of Dong Nai shipped 5.2 billion USD worth of goods abroad in the period from January-April, up 12.8 percent from the same period last year.

The locality also imported 4.78 billion USD worth of goods in the period, according to the provincial Department of Industry and Trade.

The department said the trade surplus can be attributed to local businesses' efforts to seek domestic supply of materials and goods.

Stronger connection among domestic enterprises has also helped reduce import while allowing domestic enterprises to enjoy tax incentives when shipping their products to the markets with which Vietnam has signed free trade agreements (FTAs), including the Republic of Korea (RoK), Japan, Chile, and Asean nations.

Export revenues from traditional markets recorded good growth, such as an 88 percent increase year-on-year in the RoK market, nearly 13 percent in Japan, over 9 percent in France, and nearly 8 percent in the US.

The province's major export products were footwear, machinery and equipment, vehicles, and fibres. A number of agricultural products saw their export price rise in the period, such as cashew nut, coffee

bean, and rubber latex. The locality aims to look for more export markets while developing brand names of agricultural products

to increase export revenues. http://en.vietnamplus.vn/dong-nai-earns-over-52 billion-usd-in-export-in-four-months/111137.vnp

HCM City's budget revenues leap 22.4pct in first four months 04/May/2017 Intellasia| The Saigon Times

Total budget revenues of HCM City reached VND124.427 trillion (about $5.47 billion) in the first four months of 2017, up 22.4 percent over the same period last year and meeting 36 percent of the 2016 estimate, according to a report of the city's Department of Finance.

The increase of budget revenues showed that the production and business activities of the city in January-April kept growing well.

In particular, shared earnings in the first four months reached VND4.76 trillion, including about VND1.8 trillion of tax payment from Saigon Trading Group, up 196 percent year-on-year. The tax payment period changed from every six months previously to every three months from 2017 also contributed to the revenue increase.

Meanwhile, revenue from land and water rents reached VND1.66 trillion, a 50.7 percent year-on-year increase. Notably, Tan Hoang Minh Group paid VND264 billion and Empire City Limited Liability Company paid VND2.8 trillion of land-use fees in Thu Thiem new urban area in January-April.

In addition, personal income tax revenue reached VND11.52 trillion, (up nearly 20 percent over the same period last year), revenue from crude oil reached nearly VND5.83 trillion (up 26%) and revenue from import-export activities reached VND34.5 trillion (up 14.7%).

According to the resolution on budget allocation in 2017 approved by the HCM City People's Council, the city targeted to gain a total budget revenue of VND347.88 trillion (about $15.3 billion and 15.79 percent higher than the 2016 estimate), including VND226.48 trillion of domestic revenues, VND109 trillion from import-export taxes and VND12.4 trillion from crude oils.

Budget allocation for the city in 2017 will total VND70.646 trillion (about $3.1 billion), including VND25.164 trillion for development investment, VND34.2 trillion for regular expenditures, VND1.511 trillion for interest payments and the remaining for other expenditures.

http://english.thesaigontimes.vn/53723/HCM City%E2%80%99s-budget-revenues-leap-224-in-first-four-months.html

Government offers HCM City financial incentives to develop infrastructure

04/May/2017 Intellasia| VNA

The government has issued a decree offering HCM City special financial and budgetary policies and incentives in an aim to improve its infrastructure.

The government decree, which takes effect next month, gives priority to investment in infrastructure development in order to maintain the city's status as the country's economic hub.

Under the decree, the city will be eligible to receive advance payments from the state and lending sources to hold auctions of land-use rights, after which the city will refund the state and repay the loans.

The government has also prioritised Official Development Assistance (ODA) funds and preferential capital sources for projects related to urban infrastructure and the environment.

In addition, HCM City will be allowed to mobilise investment from public-private partnerships (PPP) and other public-private funding models.

The city needs a 500 trillion VND (23.5 billion USD) to invest in urban infrastructure between now and 2021, and a similar amount for the next five-year period, according to the HCM City Finance and Investment Company (HFIC).

Because of the enormous need for capital, the city has no choice but to take advantage of new incentives to generate investment from private sources, according to experts.

They noted that many local residents keep their money outside banks or in the form of gold or foreign currency, particularly US dollars.

Gold reserves kept at home are estimated at 400-500 tonnes, equivalent to 17-21 billion USD, according to the Vietnam Gold Business Association.

In terms of foreign exchange, the annual rate of remittance growth now averages 16 per cent. At this rate, by 2020, remittances could reach more than 28 billion USD.

Ninety percent of remittances are used for savings, investment in gold, real estate, or business production. The remaining 10 percent of remittances, or around 9.7 billion USD, are assumed to be kept at home by

residents. Economists said the large amount of foreign currency held by residents is far greater than official data. If such resources were properly exploited, policymakers would be more able to address the lack of capital

for urban infrastructure, they said. Economists have also said that the city should be allowed to expand the collection base via a number of

special revenue sources based on specific conditions. In addition, tax revenue could be expanded by new tax rates set by the city, in accordance with national

law. Experts have also said the government could give HCM City a bonus if its tax collections exceeded

expectations. The city plays an important role in providing a number of complex services on a large scale, much higher

than in other areas in the country. Thus, economists believe the city should have more autonomy to regulate expenditures and spending in

accordance with its needs, with priority given to new construction and renovation and infrastructure development.

http://en.vietnamplus.vn/govt-offers-hcm-city-financial-incentives-to-develop-infrastructure/111128.vnp

Vietnam looks for shrimp farming to save the Mekong Delta 04/May/2017 Intellasia| VOV

About 700 000 hectares of rice and other agriculture crops in Vietnam were destroyed by climate-induced natural disasters in 2016, reports the Ministry of Agriculture and Rural Development.

Consequently, rice production, which was hit the hardest, fell by some 800,000 tonnes, which has forced the Ministry to fast track implementation of remedial climate change adaption measures.

Under one initiative, rice cultivation in several Mekong Delta provinces has been converted to growing fruit trees and grapes that require less water yet provide suitable alternative sources of income for farmers.

Vietnam is the third largest exporter of rice, behind India and Thailand. Nicknamed the 'rice bowl', the Mekong Delta region comprises 12 percent of the arable land of the country and is responsible for nearly 50 percent of the rice production.

This past paddy season, the culprit was salt water intruding upstream from the coast, said Mekong wetlands ecologist Nguyen Huu Thien.

In turn, he places the blame squarely on dams that have been constructed at locations in Laos and Cambodia that are blocking the free flow of water and sediment, which allows for saltwater to make its way in the opposite direction the waters of the river naturally flow.

Last year, a severe drought in much of Southeast Asia compounded the problem. In May, the Vietnam government observed the Mekong River at its lowest level since 1926, but

eventually successfully convinced China to release water from its upstream dams, which helped to alleviate some of the problem.

The Ministry has also helped other farmers migrate elsewhere in the country where they can earn a living and, as part of their main initiative, assisted many rice farmers to experiment with saltwater shrimp farms in lieu of growing rice.

The Mekong Delta is gradually losing the capacity to support the populace, say Ministry spokespersons and it will fall apart if a corrective action plan isn't put in place to address the fundamental problems post haste.

Shrimp farming appears to be the best alternative but even the farming of shrimp, a salt-tolerant creature, can be challenged by excessively salty conditions.

However, Ministry spokespersons say some of the challenges facing shrimp farming in the Mekong are being addressed by using a three-pond shrimp and fish farming strategy, in which one pond holds fresh water that is used to dilute water in the other two ponds when they become too salty.

Research is also underway to find the most suitable commercial shrimp species to raise and to identify synergies in the processes that may benefit shrimp production in the Mekong Delta.

Many Vietnamese and global organisations, say Ministry spokespersons, are supporting these efforts and others intended to help sustain food production in the Mekong.

Shrimp farming seems to be a win-win situation for all involved. The farmer in the Mekong can earn more money with it than rice and the consumer in the main importing regions of the EU, US and Japan, can eat healthier shrimp.

Shrimp farms can also play a role in ensuring the future of the Mekong Delta. Even when the saltwater rises.

http://english.vov.vn/economy/vietnam-looks-for-shrimp-farming-to-save-the-mekong-delta-348608.vov

Asean+3 region, including Vietnam, remains resilient amid global economic volatility: report

05/May/2017 Intellasia| Tuoitre News The Asean+3 region is expected to post moderate economic growth in 2017, with Vietnam among the

regional economies able to remain resilient despite persistent volatility in global financial markets, a report shows.

The Asean+3 cooperation comprises the ten members of the Association of Southeast Asian Nations Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam plus China (including Hong Kong), Japan, and South Korea.

The Asean +3 Macroeconomic Research Office (AMRO) on Thursday released its inaugural Asean+3 Regional Economic Outlook (AREO) 2017, an annual report on regional surveillance that assesses the macroeconomic outlook and financial stability in the region.

The report, the first of its kind to be released by AMRO, provides policymakers, the private sector and the broader public with in-depth analysis of regional developments and trends that can inform their decision-making, according to AMRO director Junhong Chang.

The report asserts that the Asean+3 region is expected to grow at 5.2 percent in 2017 with inflation under control, despite the global uncertainty. It also says growth of the two largest economies in the region, China and Japan, remains stable and robust, expected to anchor the continuing growth in the region.

"It is encouraging to see the Asean+3 region has been resilient going into 2017," says Dr Hoe Ee Khor, AMRO chief economist.

"Under the current global environment, the region should prioritise financial stability while supporting growth with an appropriate policy mix, including targeted macro-prudential policy measures and sustained structural reform."

Outlook for Vietnam According to the report, Vietnam, along with other regional emerging markets including South Korea and

Malaysia, Indonesia, the Philippines, Singapore, and Thailand, known as the Asean-5, will "remain resilient even as volatility in global financial markets persists."

In the meantime, such developing Asean economies as Cambodia, Laos and Myanmar will continue to grow and reap benefits from regional integration.

Vietnam's economy expanded at 6.2 percent in 2016, compared to 6.7 percent in 2015, as agricultural production was adversely affected by a prolonged drought and increased saltwater intrusion, and mining and quarrying output contracted, according to the report.

Even though Vietnam's GDP expansion slowed down to 5.1 percent in the first quarter of 2017, AMRO projects full-year growth to pick up slightly to around 6.4 percent, as agricultural production recovers and mining and quarrying output normalises alongside sustained development in manufacturing and services.

The report also reviews Vietnam's performances in the fields of monetary, credit growth and foreign exchange.

With the State Bank of Vietnam adopting a wider trading band for the dong since August 2015 and a daily fixing since early 2016, the Vietnamese currency has appreciated slightly against the US dollar recently, whereas credit growth picked up to 18.2 percent in the final month of 2016.

The report also says Vietnam's budget deficit remains sizeable, and likely stayed above 5 percent of GDP in 2016. "In this regard, it is welcome that a lower fiscal deficit of 3.5 percent of GDP has been set in the [Vietnamese government's] budget plan for this year," the report comments.

Meanwhile, Vietnam's public debt is estimated to have increased to 63.7 percent of GDP in 2016, compared with the threshold of 65 percent of GDP.

The lawmaking National Assembly has recently approved the five-year fiscal plan and the medium-term public investment proposal for 2016-2020, which the report says is an encouraging signal as those plans "should help strengthen fiscal discipline going forward and reduce the pressure from rising public debt."

http://tuoitrenews.vn/business/40825/asean3-region-including-vietnam-remains-resilient-amid-global-economic-volatility-report

PM asks for detailed plans to achieve set targets

05/May/2017 Intellasia| VNA Prime minister Nguyen Xuan Phuc has directed that each ministry and locality must devise a detailed

plan to fulfill set targets, in which responsibilities of individuals and units must be specified. The PM made the request during the monthly government meeting in Hanoi on May 4 which discussed

the socio-economic performance in April and the first four months of this year as well as specific measures to ensure that economic growth targets for the remaining quarters and the whole year are met.

The government is resolved to achieve the economic growth of 6.7 percent this year and sees that it is achievable, he said.

He hailed the progress in tourism, foreign direct investment attraction, public investment disbursement, manufacturing and exports in April and the past four months.

The Ministry of Industry and Trade was asked to review key commodities, especially oil and gas production which should be increased by 1-1.5 million tonnes while coal mining amounts to 2 million tonnes and the manufacturing and processing industry grows at least 13 percent. Sufficient energy supply must be ensured and 12 loss-making projects be dealt with soon.

He noted that the ministry needs to closely track hygiene of farm produce and actively partner with the Ministry of Public Security to strictly punish multi-level marketing violations.

The leader required the construction sector to develop a healthy real estate market with a focus on accommodation for workers and social housing, and the tourism sector to grow 30 percent from last year and serve 15 million foreigners this year.

The PM said the agricultural sector should ensure its growth of over 3 percent and strive to earn at least 33 billion USD from exports this year.

Ministries, agencies and localities must accelerate the equitisation of State-owned enterprises, curb the consumption price index below 4 percent, and allocate capital to prioritised fields, including agriculture, small- and medium-sized enterprises, exports, especially disbursing the 100 trillion-VND package designed for high-tech agricultural firms.

Speeding up the economic restructuring in combination with renewing growth model in a practical and effective manner is important to implementing the resolutions set by the National Party Congress and the National Assembly, he said.

On social safety and order, he called for attention to dealing with hotspots, especially in the land issue to ensure legitimate interests of the people, and illegal sand exploitation and deforestation.

The leader asked for continued work to ensure street pavement order and prevent traffic congestions in major urban areas, including Hanoi and HCM City.

Speaking at the event, President of the Vietnam Fatherland Front Central Committee Nguyen Thien Nhan suggested the government increase State capital disbursement, hasten SOEs equitisation and improve the business climate.

He urged for overseeing national products, especially those with 1 billion USD-plus export value, as well as key transport works.

Closing the session, the PM assigned the deputy PMs and Cabinet members to make reports to submit to the legislature, especially those regarding the building of law.

http://en.vietnamplus.vn/pm-asks-for-detailed-plans-to-achieve-set-targets/111207.vnp

Government to borrow 15.05 billion USD in 2017 05/May/2017 Intellasia| VNA The government plans to borrow 342.06 trillion VND (15.05 billion USD) this year, according to a

borrowing and debt payment scheme recently approved by prime minister Nguyen Xuan Phuc. The total includes 243.3 trillion VND (10.7 billion USD) in domestic loans and 98.76 trillion VND

(roughly 4.35 billion USD) in official development assistance (ODA) and foreign preferential loans. Of the sum, 316.3 trillion VND (13.9 billion USD) will be used to balance the State budget.

Under the scheme, the government will spend 260.15 trillion VND (11.45 billion USD) on debt repayment.

The PM has assigned the Ministry of Finance to review the necessity and limit of the government bond guarantee for the Vietnam Development Bank at over 25.14 trillion VND (1.06 billion USD).

The Ministry of Planning and Investment was assigned to allocate infrastructure investment using ODA and preferential loans within the estimate of 60 trillion VND (2.64 billion USD) as approved by the National Assembly.

The State Bank of Vietnam will supervise commercial foreign loans of businesses and credit institutions. http://en.vietnamplus.vn/government-to-borrow-1505 billion-usd-in-2017/111157.vnp

Decree designed to encourage investment in agriculture 05/May/2017 Intellasia| VNA The Ministry of Planning and Investment (MPI) said it is collecting opinions from organisations and

individuals for a draft decree on policies to encourage investment in agriculture and rural development. The decree regulates additional incentives and investment support of the State for businesses investing in

agriculture and rural development. It will be applied to enterprises established and registered for operation in line with Vietnam's laws.

Under the decree, enterprises having investment projects in agriculture can get deductions of between 50-70 percent of their land rental, or are exempted from the land rental.

Businesses having large scale breeding projects will receive maximum financial support of 5 billion VND (220,000 USD) and at least 3 billion VND (132,000 USD) for building wastewater treatment, transport, electricity and water infrastructure, and purchasing equipment.

The MPI said agricultural projects invested by enterprises will also benefit from other incentives apart from the above-mentioned regulations.

http://en.vietnamplus.vn/decree-designed-to-encourage-investment-in-agriculture/111177.vnp

Vietnamese businesses managing in their own way 05/May/2017 Intellasia| Bao Dau Tu

The outdated management model makes it difficult for most of Vietnamese businesses to "talk" to foreign funds and investors.

At the recent annual general meeting (AGM) of Vinamilk, CEO Mai Kieu Lien talked about the sad feeling when receiving questions from shareholders about the appearance of Nguyen Ba Duong, Chair cum CEO of Coteccons in the list of candidates for Vinamilk's Board of directors (BOD), term 2017-2021.

"We choose Duong because the new BOD structure needs three independent members in charge of three important sub-committees including personnel, auditing, salary and wages. Duong is one of the top 10 most prominent leaders of Vietnamese businesses with a lot of management experience", Lien explained.

Lien's difficulty when explaining to shareholders about the appearance of Duong was not only because Duong was operating in an area that is not related to Vinamilk but also because not many shareholders understood the position and role of independent BOD members.

As soon as Vinamilk's shareholders voted for Duong's independent BOD member position, there were many comments from market participants that this was likely to be an early sign of the handshake between Vinamilk and Coteccons.

It must be added that not only shareholders are vague about independent BOD members despite the fact that the Business Law 2014 clearly stipulated. At the launch of Vietnam Business Annual Report

2016/2017 organised late last week by Vietnam Chamber of Commerce (VCCI), many businesses still question who the independent BOD members are and who will nominate this character.

That shareholders approved three members as independent BOD members is a great success of Vinamilk. The company has stepped into one-tier model - the world popular modern management model replacing traditional model.

But Phan Duc Hieu, deputy director of the Central Institute for Economic Management said this is good news.

"The Business Law 2014 introduced modern corporate governance model for businesses to carry out. However, so far, the number of businesses applying this model is just a few. Many businesses hesitate to apply because they do not understand what to do. Independent BOD members are sought by the company's BOD through such activities as headhunting to oversee the operation of the BOD for the benefit of the company, which is completely different from the BOD nominated by shareholders to protect the benefits of shareholders and group of shareholders", Hieu clarified.

It is worth saying that as per Hieu, the traditional model applied by most businesses only exits in Vietnam. As a consequence, Vietnamese businesses are not speaking the same language about corporate management with foreign firms.

This situation is clearly seen in Vietnam's ranking in Asean Corporate Management Scorecard. As per the latest ranking, Vietnamese businesses gain the lowest position in Asean 6 with 35.14 points (the highest points belong to Thailand businesses with 84.53 points). Compared with the two previous times, Vietnam's score has inched up but is still 22 points lower than the upper position of Indonesia.

The reason dragging this ranking is the low enforcement responsibility of the company's BOD. Dr Nguyen Thu Hien, evaluation board member of the Asean corporate governance scorecard said "we asked whether the roles and responsibilities of BOD are stated in the annual report or not, then only 16 percent of businesses said yes. The Business Law 2014 does require but Vietnamese businesses do not comply with. A lot of other contents are also the same", said Hien.

It should also be noted that Vietnam's ranking are based on 55 listed businesses eligible to participate in this score card. Other countries choose 100 businesses having the largest capitalisation in the stock market. "Since we only found 55 businesses having annual reports in English", said Hien.

FDI firms' losses and the transfer pricing issue

05/May/2017 Intellasia| Nhip Cau Dau Tu

Those interested in the Vietnam's economy are not surprised by the fact that more than 40 percent of Foreign Direct Investment (FDI) firms in 2007-2015 period reported losses but many of them still requested permission for expanding production.

The information provided by the Vietnam Business Annual Report 2016 is not new but never old. This irregularity shows that due to the differences in input parameters of production among countries such as tax rate, labour price, or sales policy of each product, etc., they can easily be taken advantages to make transfer pricing. Particularly, Vietnam has preferential policies for FDI firms such as tax exemption and reduction for a definite term (up to nine years), permission for transferring losses (within five years), tax free for transfer of profits abroad, and tax refund for profits for reinvestment, etc.

The problem of transfer pricing of FDI firms in Vietnam is therefore more complex and difficult to solve, partly due to the limited legal framework. However, there are lessons that cannot be ignored. "Although FDI firms reported very large losses, their Return on Assets (ROA) is still the best in the three groups of enterprises. This shows that the issue of transfer pricing has not been settled", said Pham Thi Thu Hang, Secretary general of the Vietnam Chamber of Commerce and Industry (VCCI).

The old story of Formosa and new issue of Besra In August 2016, while the efforts to tackle the Formosa environmental problem was still underway, the

public were shocked with the information that Ha Tinh Tax Department had refunded a total of 13.483 trillion dong of value added tax to Formosa within two years 2014-2016. More surprisingly, according to the explanation of relevant agencies which are headed by the general Department of Taxation, this act is lawful according to the preferences applicable to FDI enterprises invested in importing the machinery and equipment which cannot be manufactured in the domestic. At that time, many questions were raised, such as (1) why Formosa received tax refund while it imported the outdated wet-quenching coke technology which contains high pollution risks?, and (2) whether Formosa reported incorrectly the value of imported machinery to receive higher tax refund?, etc.

There is still no satisfactory answer to these questions but the figure of 13.483 trillion dong tax refund, which is higher than the 11.5 trillion dong compensation for damages to the economy and marine environment of the central provinces, has caused people to question about the policy of spreading red carpet for FDI firms. As said by Pham Lan Chi in an interview with Nhip Cau Dau Tu, "Formosa's case is a painful lesson". Vietnam cannot afford to suffer a double disadvantage when it has to give tax preferences and becomes a destination for backward technology which poses huge potential risks to the environment and people's livelihood.

It will be more difficult if businesses proactively increase their production costs and reduce their contribution to local budgets. The case of Bersa Vietnam, a miner which conducts gold mining in Bong Mieu and Phuoc Son mines (Quang Nam province) but still reports losses and has tax debts of hundreds of billions of dong, is an unusual issue. According to the latest information, Bersa has announced to withdraw from these two largest gold mining projects of Vietnam, and sold all its assets to two former acquaintances who used to be senior managers of Bersa. Having experienced the loss of Bersa but still deciding to buy assets from the firm, the decision of these two former managers is considered an abnormal move, from a purely economic point of view.

The concerns about transfer pricing issue is once again taken into account and appears to be more grounded than the miraculous calculation of turning a losing mineral firm into a profitable unit. Accordingly, the firm has wisely chosen to go bankruptcy to avoid paying tax, and acquire 100 percent stake for implementing the next solutions to make profit. In this way, the recovery of Bersa's tax liabilities will be feasible because the firm is eligible to the preferential policies under the law. Another puzzling issue is the debts of Bersa with local businesses, which have caused a town leader to resign in order to perform debt collection.

The given warnings In the last few years, Vietnam has made various efforts to limit transfer pricing and achieved certain

results. According to report of the Ministry of Finance, in the first nine months of 2014, the tax authorities inspected and checked 1,990 losing firms which had signs of transfer pricing violations, fined and retrieved 1.559 trillion dong, cut loss by 4.729 trillion dong, and reduced deduction by 99.9 billion dong. The management agencies are completing policies and mechanisms in terms of tax, ethical and professional capacity of tax officials, in order to minimise loopholes.

However, VCCI expert Lan noted that "We cannot ignore the wrongdoings and tolerate the transfer pricing activities like local authorities. First of all, in the operation of Vietnamese firms, there have been the issues of negotiating, ignoring, and even making agreement about the level of tax payment. That may also be the case of FDI firms, especially when paying an amount to reduce the contribution to budget and escaping from being charged as making frauds or transfer pricing seem to be a better option for any business. In addition, the certain esteem of the locality for FDI firms in the area has also hindered the subordinates to somewhat from drastically settling the violation. Meanwhile, with the current mechanism of Vietnam, it is already difficult to hold a team responsible, not to mention individual responsibilities".

From the practical needs to increase revenue and ensure budget balance, Dr Le Xuan Sang is confident that the transfer pricing of FDI firms in Vietnam will be much better in the near future. He said that we will welcome true investors but not those who only focus on exploiting imperfection of the legal system and managing for profit. Vietnam still needs the FDI inflows to support the economy, especially in the context when attracting investment is no longer as easy as before. However, the government is well aware that violations cannot be ignored. As said by experts, the current approach is right, it only needs more efforts, more professionalism and more fairness.

IIP rose 5.1pct in last four months

05/May/2017 Intellasia| VNS In the first four months of this year, the national index of industrial production (IIP) increased 5.1 percent

year-on-year, the general Statistical Office (GSO) reported. That metric was far below the growth recorded in the same period in 2016 but higher than the increase of

4.2 percent in the first quarter of 2017, GSO's economic experts said. In the January-April period, the processing and manufacturing sector's production surged 9.2 percent and

the water supply and waste treatment industry was up 6.3%, while mining fell 9.7%. A number of sectors enjoyed a surge in IIP, including metal production (47.5%), metal product

manufacturing (13.3%), weaving (12.5%) and engine vehicle production (10.9%).

Meanwhile, the industries of food production and processing, medicine and pharmaceutical chemistry, electronic, computer and optical product production witnessed slight IIP increases at 6.4, 4.5 and 4.2%, respectively.

According to GSO, in April, the national IIP was estimated to rise 7.4%. This index of the mining sector saw a drop of 5.6%, while that of the processing and manufacturing industry rose 11.1%. Electronic production and distribution was up 9.9 percent and the group of water supply and waste treatment increased 6.5%.

The northern city of Hai Phong led the country in IIP growth with 20.4%, followed by Thai Nguyen with 17.7%; Danang, 12.1%; Hai Duong, nine per cent; Binh Duong, eight per cent; and Dong Nai, 7.4%. This indexes of HCM City and Hanoi rose 7.1 percent and 5.9%, respectively.

GSO said to continue growth in industrial production in the future, the industrial sector should increase the index of consuming products to reduce inventory because the inventory index of the sector in the first four months witnessed a year-on-year surge of 12.7%.

Sectors with higher inventory than the country's average included engine vehicle production at 158.9%, metal production at 54.5%, beverage production at 45.4%, cement production at 39.7 percent and paper and paper product production at 32.8%.

http://english.vov.vn/economy/iip-rose-51-in-last-four-months-348841.vov

Provincial Competitiveness Index - Setting the standard 05/May/2017 Intellasia| VN Economic Times In a corner of the Dong Thap Provincial People's Committee's premises in the Mekong Delta are some

simple stone chairs surrounded by trees and a sign saying "Ca phe doanh nhan", which means "Entrepreneurs' cafe".

Every morning, provincial leaders meet enterprise representatives to hear about any problems in their business and investment activities.

Chair Nguyen Van Duong came up with the idea, saying that via meetings and other communications channels he and his team collect feedback from enterprises and then meet them at the cafe the next morning.

Many issues of concern among enterprises have been quickly resolved at the 30 sq m cafe. Dong Thap and other provinces throughout Vietnam are stepping up efforts to improve their investment

environment and create favourable conditions for enterprises as part of introducing the constructive government model called for by prime minister Nguyen Xuan Phuc.

Progress in the reform of administrative procedures and the investment climate were revealed in the Provincial Competitiveness Index 2016 (PCI 2016) released by the Vietnam Chamber of Commerce and Industry (VCCI) and the US Agency for International Development (USAID) on March 14.

Positive changes Dong Thap province again ranked in the Top 3 leading provinces in the PCI 2016. Along with its "Entrepreneurs' cafe", it also created programmes such as "Office Smile" and "People's

Voice Friday", and also plans to cut 30 per cent of provincial meetings to have more time to meet local people and enterprises.

From such efforts, the number of newly-registered enterprises and new projects increased sharply last year.

There were over 55 domestic and foreign business delegations and international organisations visiting the province to seek cooperation and investment opportunities.

Total registered capital reached VND3.4 trillion ($149.6 million), a remarkable increase compared to 2015's VND1.5 trillion ($66 million).

In the five most-recent rankings, the province led the way once and was second twice. Da Nang topped the rankings in 2016 for the seventh time, with 70 points out of 100. Nguyen Xuan

Anh, Secretary of the Da Nang City Party Committee, told local media that the result is evidence of its continued efforts to reform its business climate.

He emphasized, however, that the central city needs further efforts in the years to come. "We are not satisfied with the results achieved over the years and our score falls short of our

expectations, so we must work harder," he said. The clearest proof of the improvements in Da Nang's investment environment is found in real estate.

According to CBRE Vietnam, the city's real estate market saw unprecedented investment attraction last year.

More than 5,570 condotel apartments were added to supply and nearly 4,000 apartments were sold. The figures make Da Nang in the hottest location in the resort real estate segment. This year, with favourable factors in its investment environment and its upcoming hosting of the Apec

Economic Leader's Week 2017 (AELW 2017) later in the year, profits in its real estate sector are expected to increase 25 per cent year-on-year.

Being at the top, according to Anh, also puts pressure on Da Nang to prove it is worthy. Efforts from other localities are also required for Da Nang to constantly improve its business climate. According to Anh, keeping faith with businesses is the key factor helping the city attract investors and

keep them happy. But there remain many areas where the city has not achieved the results it wishes, such as in equal

competition, business support, and management capacity. Northern Quang Ninh province followed Da Nang in the PCI 2016, rising from third place in 2015, with

65.6 points. Five indexes - business support, labour training, legal institutions, market entry, and time to complete

administrative procedures - were said by the local business community to have improved considerably. "This came from the province's constant efforts to improve its environmental climate and increase

competitive capacity," said Nguyen Duc Long, Chair of the Quang Ninh Provincial People's Committee. The PCI 2016 also showed many signs of improvement in the business environment. Nearly half of

domestic enterprises plan to expand their production and business scale over the next two years. Similarly, more than half of foreign-invested enterprises intend to increase their scale of operations; the

highest level since 2010. Over the past year, 65 per cent of private enterprises reported profits, the highest in five years, according

to the PCI report. Over the past 12 years, the average capital at enterprises has risen to its highest level, of VND18.1 billion

($796,400), double the 2006 figure of VND7.5 billion ($330,000). The percentage of firms that hired more workers increased from 12 per cent in 2015 to 13 per cent in

2016. The level of optimism and confidence in the business community regarding their prospects is steadily

recovering, with 48 per cent of respondents saying they planned to scale up their operations over the next two years, virtually the same as last year.

The efforts of its cities and provinces have helped Vietnam become more attractive in the eyes of foreign investors and international organisations.

The World Bank's 2016 business environment assessment noted that Vietnam rose nine places (from 91st to 82nd out of 190 countries) and increased in five indexes; the biggest improvement since 2008.

According to the Ministry of Planning and Investment, although Vietnam's business environment has improved in most indicators, it has not yet reached the average rate of the Asean 4 (Singapore, Malaysia, Thailand, and the Philippines), and some indicators haven't reached the average in the Asean 6 (Singapore, Malaysia, Thailand, Brunei, the Philippines, and Indonesia).

Shortcomings linger The PCI 2016 also revealed many shortcomings, especially the increase in informal charges. Some 66 per

cent of respondents say they have to offer bribes or pay informal fees to public officials. The survey, of over 10,000 enterprises, revealed that informal charges in the 2014-2016 period saw no

signs of abating compared with the 2006 baseline. The proportion of firms saying they had to regularly pay these informal charges was 12-15 percentage

points higher than in 2008-2013. "Some 9-11 per cent of enterprises in the 2014-2016 surveys claimed that these informal charges

represent more than 10 per cent of their total revenue, well above the 6-8 per cent in the preceding five-year period," said Dau Anh Tuan, director of VCCI's Legal Department.

Moreover, it was common for businesses to experience harassment while completing administrative procedures.

This indicator fell significantly from 65 per cent in 2013-2014 to 58 per cent in 2016, but remained higher than in 2006-2012.

The index score for the time taken to complete regulatory compliance hit a record low last year.

For three consecutive years (2014-2016), one in every three enterprises had to spend more than 10 per cent of its time on complying with administrative procedures, a record high.

However, the most important thing is effectiveness and transparency in the fees enterprises must pay. According to Mac Quoc Anh, Secretary of the Hanoi Small and Medium Enterprise Association, most

enterprises understand that informal charges exist in every country, especially developing countries. "Many enterprises accept rising service costs but seek transparency and effectiveness," he said. Access to land was also a major concern for enterprises. The land access index has begun to decline after

continuous increases in 2008-2013. Surveyed enterprises indicated that the risk of land revocation was at its highest, at 1.73 points. Among enterprises that have had their land use rights revoked, only 25 per cent received satisfactory

compensation. Bolstering FDI attraction The changes and shortcomings identified in the PCI reports both motivate cities and provinces to

accelerate their reform efforts. Su Ngoc Anh, director of the HCM City Department of Planning and Investment, said it introduced an

online investment registration programme last October. The programme aims at saving time for foreign investors, with the result of applications announced

within seven working days rather than the previous 15. The change has resolved some of the obstacles most foreign investors complain about when investing in

Vietnam. While HCM City focuses on improving its investment registration programme, Quang Ninh's Investment

Promotion Agency (IPA) has proven successful in creating favourable conditions for investors. According to Long, foreign investors waste 250 days finalising licensing procedures, so the province

decided to establish the IPA, under the People's Committee. The IPA is responsible for coordinating relevant agencies, departments and localities in supporting

investors and enterprises. "The province has actively followed its long-term strategic development," Long said. "We have welcomed strategic investors and invited leading consultants such as McKinsey and BCG from

the US and Nikken Sekkei and Nippon Koie from Japan to re-plan our strategic development goals to 2020 and vision to 2030."

Northern Bac Ninh province, meanwhile, is trying to become the leading province in FDI attraction. According to Nguyen Tu Quynh, Chair of the Provincial People's Committee, its leaders pay great attention to improving the investment environment through administrative procedure reform and policies on land clearance.

With limited investment attraction in the past, the Khanh Hoa Provincial People's Committee has set clear strategies to attract foreign investment projects.

A representative from the south-central province said local authorities will build infrastructure and focus resources on developing three key economic areas and speed up urbanisation.

The province will pay particular attention to building resettlement areas and socioeconomic infrastructure in line with modernisation and will also develop human resource through training programmes and opening more universities to supply professional employees to foreign companies.

Each city and province has detailed strategies suitable to their own characteristics to attract foreign projects, according to Long.

Quang Ninh has only been successful because the government introduce support policies and it should give more rights to local authorities in local administrative affairs.

This is an urgent requirement in cities and provinces attracting significant numbers of domestic and international investors.

http://english.vietnamnet.vn/fms/business/177661/provincial-competitiveness-index---setting-the-standard.html

Textile sector growth surges

05/May/2017 Intellasia| VNS The textile and garment sector enters the second quarter (Q2) of this year with promising signs from new

import markets, said general director of the Vietnam Textile and Garment Group (Vinatex) Le Tien Truong.

Truong made the observation following the sector's good results in the first quarter thanks to rapid growth from new markets such as Eurasian Economic Union (EAEU), which saw a growth rate of 115 per cent in Russia; and the Asian Economic Community (AEC) with growth of 17 per cent, 11 per cent, 38 per cent, 24.5 per cent, 36 per cent and 5 per cent from Thailand, Indonesia, Singapore, Laos, Cambodia and Myanmar, respectively.

Statistics showed that the sector earned $6.75 billion from exports in the first quarter of this year, growth of 12.4 per cent compared with the same period last year.

Although the sector faced many challenges in exports to key markets, including low growth rates of exports to the European Union and the United States of between 6.3 per cent and 6.4 per cent, traditional markets such as South Korea, Brazil and India, maintained high growth between 14 per cent and 34 per cent.

Truong said the sector saw good growth in exports of many new products including swimsuits and raincoats with 29 per cent and 41 per cent, respectively.

"We can see that our efforts in using initiatives to access markets and exploiting bilateral and multilateral trade agreements have produced results, mostly in the EAEU and AEC," said Truong.

Insiders said that firms in the textiles and garment sector, particularly Vinatex, had performed well in recent years. They had foreseen difficulties of European markets and the failed Trans-Pacific Partnership agreement before devising their own ways to promote business overseas with new products.

New markets and new products have developed strongly since June last year when the businesses saw the advantages of trade agreements under negotiation between Vietnam and other countries. They concentrated on improving capacity, cutting costs and production prices even though domestic basic expenditures continued rising while the forex rate was stable.

In exports, the stable forex rate is a problem for businesses, particularly with Vietnam's rivals, including China, India, Bangladesh, Pakistan, Indonesia and Malaysia, devaluing their domestic currencies in order to keep their market shares.

"We textile and garment businesses always expect that in macro policies, there would be calculations to balance the dong's forex rate and the currencies of other countries to raise their competition in exports," Truong said.

The businesses also hoped to enjoy a proper loan interest rate, similar with that of other countries, to help businesses cut costs, said Truong.

Truong said he believed that the sector could reach the growth rate target of 10 per cent this year. This was a high target but with efforts from the entire sector it's a reachable figure.

http://bizhub.vn/news/textile-sector-growth-surges_285890.html

Vietnam's Jan-April rice exports fall to 9-year low - govt 05/May/2017 Intellasia| Vnexpress Vietnam exported an estimated 1.84 million tonnes of the grain in the first four months of this year, down

nearly 9 percent from a year ago and the lowest volume for the same period in nine years, the government said.

April shipments were estimated at 550,000 tonnes from the world's third largest rice exporter, up 21 percent from a year ago and similar to March when volume hit its highest monthly level in a year, the general Statistical Office said in its monthly report released at the weekend.

January-April's shipment volume was the lowest since 2008, based on government data. Low export volume in the first two months of 2017 pulled down the four-month average. Vietnam

exported 337,000 tonnes in January and 402,700 tonnes in February, below the monthly average of 409,000 tonnes last year, based on government statistics.

A US Department of Agriculture report late last month said preferential import taxes in Eastern European countries and Russia and an extended supply agreement with the Philippines may help boost Vietnam's rice exports this year by around 9 percent to 6 million tonnes.

Smaller harvest The Mekong Delta food basket has finished harvesting its key winter-spring rice crop, with paddy output

easing 2 percent from last year to 9.8 million tonnes, the statistics office said. The agriculture ministry blamed higher rainfall for the lower output. The winter-spring crop is the delta's largest among the three crops it grows each year, and most of the

grain is exported.

Despite a slightly smaller crop, Vietnam's rice export prices stood stable at the end of last month and were cheaper than Thai grain. The Vietnamese benchmark 5-percent broken grade stood at $350 a tonne, free-on-board (FOB) Saigon Port, little changed from $347-350 at the end of March.

Thai rice of similar grade stood at $360-375 a tonne, FOB Bangkok, at the end of April, Reuters cited Thai traders as saying, while the Thai Rice Exporters Association priced the 5-percent broken grade at $387 a tonne on April 26, FOB basis, up 3.5 percent from a month ago.

http://english.vov.vn/economy/vietnams-janapril-rice-exports-fall-to-9year-low-govt-348850.vov

Coal export posts surge 05/May/2017 Intellasia| VNS The country's total coal export volume in the year's first four months posted a seven times surge

compared with the same period last year to reach 504,663 tonnes. The general Department of Customs said Vietnam earned $79.4 million from coal exports in the January-

April period or a 13 times increase in comparison with the corresponding period last year. Average coal export price in the four months also increased to $157 per tonne, much higher than the $79

per tonne in the first four months of 2016. Notably, Vietnam's coal export markets have witnessed changes, with China no longer the country's

largest importer. The department said Vietnam's main coal importers in the period were Japan, Indonesia, Taiwan,

Malaysia and South Korea. http://bizhub.vn/news/coal-export-posts-surge_285904.html

4M CBU vehicle imports total 35,000 05/May/2017 Intellasia| VN Economic Times Imports up nearly 20 percent in volume y-o-y but down 5.7 percent in value. The general Statistical Office (GSO) has estimated that Vietnam imported some 35,000 completely-built-

up (CBU) motor vehicles of all types in the first four months of this year, an increase of 19.7 per cent year-on-year.

CBU imports in April totalled 8,000 worth $200 million, down 3,000 units but up $20 million in value. Despite CBU imports rising nearly 20 per cent in the first four months, their value was down 5.7 per cent

year-on-year, to $688 million. In the first three months of the year, the volume of cars of less than nine seats imported from Asean

countries totalled 14,460 units, up 67.6 per cent, the general Department of Customs reported previously. CBU units from Thailand totalled 10,050, up 28.8 per cent, and from Indonesia 4,400 units.

Industry experts predict that motor cars imported from Thailand and Indonesia will continue to increase in the near term because of commitments Vietnam has made under the Asean Trade in Goods Agreement (ATIGA), with taxes on CBU imports to fall to 0 per cent in 2018 compared to 30 per cent currently.

Sales of vehicles of less than nine seats this year are expected to fall 7-10 per cent as many potential buyers put off their purchase in anticipation of the 0 per cent tax rate being applied next year.

Imports of auto parts and accessories in the first four months increased significantly. In April, Vietnam is estimated to have spent $320 million on importing parts and accessories, bringing the total amount in the first four months to $1.15 billion.

The country therefore spent nearly $1.84 billion in the first four months on importing CBU motor vehicles and automobile parts and accessories, up 3.9 per cent year-on-year.

http://vneconomictimes.com/article/vietnam-today/4m-cbu-vehicle-imports-total-35-000

Sugar import quota for 2017 to be auctioned 05/May/2017 Intellasia| The Saigon Times The Ministry of Industry and Trade will put up for auction the quota for importing 89,500 tonnes of sugar

this year, and at least VND140 billion (about $6.15 million) could be raised if the bid for this year's quota is the same as that last year.

The ministry has issued Circular 05/2017/TT-BCT regulating auction of sugar import quota in 2017, which will take effect from May 6 and expire on December 31.

Traders using crude sugar for domestic refining or refined sugar as a feedstock and relevant individuals and organisations can participate in the auction. The sugar import quota auction will be conducted through a council founded by the Ministry of Industry and Trade.

The sugar import quota auction in 2016 took place at the office of the Ministry of Industry and Trade on September 7 that year, with 22 valid bids for import of 85,000 tonnes of sugar. The ministry raised VND128 billion from the auction.

Experts have expressed concern that this sugar import quota this year may cause an oversupply. According to the Vietnam Sugar and Sugarcane Association (VSSA), the country's sugar exports to China have come to a virtual standstill over the past few weeks while the amount of sugar smuggled into the local market has surged and its price has been VND500-1,000 lower than domestic products.

White sugar prices in the final week of April ranged from VND15,100 to VND16,300 per kilo while refined sugar was sold at VND16,800-17,300 per kilo.

According to data of VSSA, sugar inventories at factories and trading firms had amounted to over 700,000 tonnes by April 21. At the same time, 13 sugar factories have finished production for the 2016/2017 season.

http://english.thesaigontimes.vn/53744/Sugar-import-quota-for-2017-to-be-auctioned.html

Social insurance contribution rate cut for employers 05/May/2017 Intellasia| The Saigon Times The rate of compulsory social insurance contribution by the employer to the fund for occupational

accidents and diseases will be reduced by half a percentage point from June 1, 2017. The Law on Social Insurance in 2014 stipulates that the employer pays a sum equivalent to 1 percent of

the monthly salary as a basis for social insurance contribution to the occupational accident and disease fund.

Meanwhile, Decree 44/2017/ND-CP recently released by the government says the employer monthly contributes to the two funds 0.5 percent of the basic salary for social insurance contribution. This level will be applied to persons working under permanent, term and seasonal labour contracts or for certain jobs with a term of three months to less than 12 months.

The 0.5 percent rate is calculated on the basic salary as defined by Point e, Clause 1, Article 2 of the Law on Social Insurance, including rank-and-file military officers and soldiers; rank-and-file police officers and policemen serving a certain term; and police and military cadets with allowances.

This new regulation does not apply to domestic workers. For enterprises, cooperatives, business households or cooperative groups operating in the fields of

agriculture, forestry, fishery and salt production and paying for their employees based on work efficiency, the monthly contribution rate is 0.5 percent of the salary as the basis for social insurance. The contributions are made every month, every three months or every six months.

Particularly for persons working under labour contracts with a term of between one month and less than three months, contributions to the occupational accident and disease fund under the new regulations shall be implemented from January 1, 2018.

Under the current regulations, each employer must make a contribution equaling 22 percent of the salary used as the basis for payment for social insurance (18%), health insurance (3%) and unemployment insurance (1%). Thus, with the new decree, the rate of monthly compulsory social insurance, voluntary insurance and health insurance contributions by the employer are down from 22 percent to 21%.

Earlier, in October 2016, at a regular cabinet meeting in Hanoi, minister of Labour, Invalids and Social Affairs Dao Ngoc Dung suggested lowering social insurance contributions to the unemployment insurance fund and the occupational accident and disease fund to help businesses grow and create more jobs. A reduction of one point for both funds would have positive effect on employers, especially struggling ones, according to the labour ministry.

The fall from 1 percent to 0.5 percent in the rate of payment into the unemployment insurance fund corresponds to an annual reduction of some VND2.4 trillion. Meanwhile, with the rate of contribution to the occupational accident and disease fund brought down from 1 percent to 0.5%, employers may save about VND3 trillion a year.

http://english.thesaigontimes.vn/53753/Social-insurance-contribution-rate-cut-for-employers.html

Instead of counting on pensions, Vietnamese pour more money into real estate 05/May/2017 Intellasia| Dan Tri

In the report regarding "the continuous challenges", HSBC cited assessment of Vietnam Social Insurance that the State social insurance fund will reach a balance by 2020 and will fall into the status where the expenditure is larger than spending.

In a further future, by 2037, the fund will need support from the government's budget if the retirement age remains the same. According to HSBC's survey, the average life expectancy of Vietnamese people is growing, reaching an average of 75.6, the second highest in the Asean, second only to Singapore (82.6), and higher than Malaysia (74.7).

Therefore, early retirement in the context of increasing life expectancy is creating a great pressure on the social insurance fund. Currently, population aging and budgetary tensions have become a challenge for Vietnam, with 65 percent of respondents worried that the decline in pension fund and social insurance fund would affect the future.

Particularly, 77 percent of working-age people believed that people who retire in the future may have to pay more for medical expenses.

When talking about the investment channels to secure retirement, real estate is seen as a good investment channel amidst a volatile economic environment.

About 47 percent of working-age respondents thought that investing in real estate would bring the best return, while 38 percent of those chose to save money, 29 percent chose to invest in stocks and securities, 22 percent chose personal pension insurance, 20 percent chose retirement pension package provided by the company, and 13 percent choose to pour capital in government and corporate bonds.

Compared to the older generations, young people when making investment tend to take more risks to promote retirement savings. About 39 percent of young respondents said that they are willing to make adventurous investments to pursue financial stability in the future.

Gov’t policy & legal