BUSINESS IN BRIEF 23/5 92.5 percent of riot-hit firms in Binh Duong reopen In Binh Duong Province near Ho Chi Minh City, 92.5 percent of foreign companies that closed have resumed operations, people’s committee Chairman Le Thanh Cung said May 20. He was speaking at a meeting between provincial authorities and the bosses of 90 companies at the Vietnam Singapore Industrial Parks 1 and 2 affected by violence during the anti-China riots. Cung and Vo Thanh Duc, head of the province police, apologized to the companies for their losses. Cung promised that authorities would take action against extremists for breaking the law and report to the Government about the losses suffered by firms to get them assistance. The province has itself taken measures to help the companies resume operations and reduce losses. Vietnam’s sole oil refinery closed for full maintenance Dung Quat Oil Refinery, the only such facility in Vietnam, was temporarily shut down on Monday to undergo a two-month full maintenance process, its operator Binh Son Refining and Petrochemical Co Ltd (BSR) announced the same day. This is the second time the refinery, based in the central province of Quang Ngai, has been closed down for such a process, three years after the first in 2011. BSR has selected three international contractors, including Singapore’s Heap Seng and Korea’s Dea Chang and Ubec for the project, according to the company website. Two experienced Vietnamese firms, PTSC Quang Ngai Petroleum Services Enterprise and PetroVietnam Maintenance and Repair JSC will also take part in the maintenance. Maintenance work is expected to last 57 days, five days shorter than the first process, according to the BSR. “The maintenance process will be conducted 24/7 by 3,000 professionals from BSR and its international contractors and partners,” company spokesman Pham Minh Nghia said. Around 1,000 engineers from BSR will contribute to the project, he added. The first-ever oil refinery of Vietnam, Dung Quat opened in 2009 with a capacity of 6.5 million tons of crude oil annually, or 140 thousand barrels per day. Vietnam has also announced its second planned oil refinery, the US$9 billion Nghi Son plant, which will be located in the Nghi Son Economic Zone in Thanh Hoa Province. The facility is expected to begin commercial production in 2017, the state-run Vietnam Oil and Gas Group (PetroVietnam) announced in a statement early last year. Stalled housing projects get new lease of life Many housing projects that had stalled for a long time in HCM City have come back to life, albeit with name changes and support from other investors. Khahomex Savico Tower in Ben Van Don Street, District 4, opposite the financial centre in District 1, was located at a prime place, but construction stopped for four years. It was promoted by a joint venture between the Sai Gon General Services Company (Savico) and Khanh Hoi Import-Export Company (Khahomex). Now called Icon 56, work has resumed and the two companies have taken on board a new partner — Novaland. It will have 300 units, which will cost a minimum of VND2 billion (US$100,000) and have all kinds of facilities like swimming pool and shopping mall. Novaland has also joined the Galaxy 9 project in District 4 invested by the Southern Rubber Company. With an area of nearly 7,500sq.m, the project will have two 21-floor towers. Novaland has also bought the Lexington in District 2 from Dai Hung Phu Real Estate company, and its investment in the three developments total around VND3 trillion ($150 million). The No 27 Apartment project in District 12 has experienced a similar fate. Kim Tam Hai began construction in October 2009 and sank VND200 billion ($10 million) to build 16 floors, but could not finish the interiors. Hung Thinh Real Estate company has now stepped in, investing VND40 billion ($2 million) and taking over the task of selling all the remaining 80 apartments in the project. But the industry is becoming cannier now and new regulations are forcing them to be more professional. Nha Hung Ngan Joint Stock company, which recently began building Hung Ngan Garden in District 12, has tied up with specialised selling company Hoang Anh Sai Gon Real Estate market to sell its apartments. Nguyen Dac Diem, chairman of the developer, was quoted as saying in Dau tu (Viet Nam Investment Review) newspaper, "In the past investors only needed an approved 1/500 master plan to start selling but now that is prohibited." Only after completing the foundation can developers start selling. "We have to build sample apartments and work with professional sales companies," Diem said about the current industry trend. Le Hoang Chau, chairman of the HCM City Real Estate Association, said a project's survival now depends on many factors, and the best way therefore is looking for finance or selling stakes to partners with deep pockets. But he warned that buyers should carefully study and choose prestigious investors to ensure safety. Banks slash salaries and cut jobs Eximbank has slashed nearly 500 workers and cut the salary for employees by 31.65 per cent in the first quarter this year, local press reported. In a separate financial report of Eximbank released last week, average monthly income was an estimated VND10.8 million (US$511) each in Q1, down 27.7 per cent against Q4 last year. In Q1, the bank spent VND204 billion ($9.6 million) for employees, decreasing VND94 billion ($4.45 million) from Q4. Eximbank is definitely not alone in the move towards reducing employees in the banking system, which has gone through sluggish credit growth, high bad-debt ratios and painful restructuring process. Dong A Bank laid off 168 jobs, bringing the total number of employees to 5,133, and trimmed monthly average income by 22.3 per cent to VND7.45 million ($355) each. Sai Gon – Ha Noi Bank (SHB) has also laid off 100 jobs but raised salaries by 24 per cent from VND12.3 million ($586) each to VND15.2 million ($724) so as to retain good employees. While Vietinbank employed an additional 410 workers, it slightly cut salaries to VND19 million ($905). Sacombank hired 102 people and raised the average income from VND13.56 million ($646) to VND13.7 million ($652). Industry experts reported that these steps were necessary because talent source played a core role in doing business. Last year, in the first six months of the year, 1,200 workers had to leave Vietinbank, BIDV, ACB and SHB due to various reasons. Mekong Delta agriculture fails to live up to potential Thirty years of industrialisation and modernisation and some remarkable achievements notwithstanding, the Cuu Long (Mekong) Delta has failed to fulfil its agricultural potential, experts have said. Speaking at a seminar held in Can Tho city on Monday Le Van Banh, head of the Cuu Long Delta Rice Research Institute, said paddy output has increased from 4.2 million tonnes in 1976 to 25 million tonnes last year, but "farmers still have low incomes." The delta, one of the most fertile and largest in the world, produces more than 52 per cent of the country's rice, 58 per cent of the seafood, and 70 per cent of the fruits. Last year 76,000ha under the large-scale rice fields model saw fully mechanised agriculture. Yet, Vu Van Phuc, editor-in-chief of Tap Chi Cong San (Communist Review), said, the industrialisation and modernisation of agriculture and rural areas have not gone deep enough. The rural economy still relies mainly on small-scale agriculture, the household remains the driving force of the agricultural economy, and the scale of the household economy is mostly small, he said. Others said the delta's potential has not been tapped. The use of advanced techniques to create value-addition is not widespread and infrastructure, especially for transport and irrigation, is modest, they said. The rate of mechanisation of harvests has increased in recent years, but only to 40 per cent, they said. The processing industry is still anaemic, causing low productivity, quality, value addition, and competitiveness of many agricultural products, they said. Because of the lack of co-operation among farmers, scientists, the Government, and companies, and inadequate policies, the efficiency of co-operation in agriculture production is not high, some participants said. Farmers produce many kinds of products but cultivation areas are mostly small and scattered. There is no co-ordination among growers, processors, and sellers, leading to price declines in case of bumper harvests. Participants said the Government should have clear policies to attract investment in the delta's key produce like rice, seafood, and fruits. Nguyen Phong Quang, deputy head of the Steering Committee for the Southwest Region, said agricultural production should be rezoned in many areas and under the linking-areas model, which is based on supply - demand balance and improving the quality and value of agricultural products. The delta's provinces should create favourable conditions to strengthen co-operation within groups like companies and farmers between them to create a close link among production, processing, and sale, he added. Bui Chi Buu, former head of the Southern Institute of Agriculture Science and Technology, said the delta should step up the use of advanced techniques and technology in agricultural production to enhance productivity and quality. The delta's extent of post-harvest loss is 12-14 per cent. Participants said the Government should facilitate investment in infrastructure for rural development and agricultural production and outlets for farm produce. The seminar was organised by the Steering Committee for the Southwest Region, the Communist Review, and the Can Tho Party Committee. Local knowledge helps foreign processing firms Processing is no longer deemed a novel economic activity in Viet Nam. In this article, PLF covers several issues for foreign investors when outsourcing processing. During our work with foreign investors outsourcing processing in Viet Nam, we have become aware that one of the top concerns is intellectual property rights concerning trade secrets, trademarks, industrial designs and trade names. Inevitably, investors must provide the processing party with such confidential information throughout the course of their collaboration. Therefore, it is essential for foreign investors to have certain knowledge about the processing party they are outsourcing to before submitting any information or designs on their classified products. At the same time, for a processing contract to be deemed legally binding, regulations on obligations of both parties need to be stated in detail and explicitly. Notably, tax policies in Viet Nam have quite an impact on processing outsourcing carried out by foreign investors. For instance, Circular No. 60/2012/TT-BTC stipulates detailed tax obligations applicable to foreign investors earning income in Viet Nam. Having knowledge of this and Vietnamese laws and regulations in general will help foreign investors do things legally and smoothly. Furthermore, foreign firms should seek ways of handling excess materials and machinery after a processing contract – in which the investors supply the processing party with materials, raw materials and machinery – terminates. Different solutions will consequently lead to different investor obligations. Therefore, it is important for foreign investors to select the most practical solution to minimise the level of obligations. Another matter that might relate to processing outsourcing is on-spot export. Briefly, on-spot export is when foreign investors outsource to Vietnamese processing parties, but do not directly receive the finished products; instead, they request such products be delivered to a third party also in Viet Nam. As a result, tax-related issues and other obligations of foreign investors in this case are not the same as when they receive the processed products themselves. In addition, labour issues should be considered if foreign investors plan to hire workers when outsourcing in Viet Nam, whether it is sending supervisors to monitor processing activity or establishing a representative office/branch in Viet Nam for convenient processing outsourcing. Japanese interested in building wharf to ship cereals Japan's ITOCHU Corporation has proposed the construction of a wharf to transport cereals at Lach Huyen Port in northern Hai Phong City. Capacity of the wharf would be about three million tonnes a year. The corporation suggested to the Ministry of Transport the project be carried out through a public-private partnership model at a recent meeting with Viet Nam's Ministry of Transport. This project would cover 18ha and need backing of about $150 million. This would be for basic infrastructure worth about $40 million from an official development assistance loan. Construction would cost $110 million, of which 30 per cent would be from investors, and the remainder offered as a loan from Japan International Cooperation Agency. Deputy Minister of Transport Nguyen Van Cong said the proposal of ITOCHU Corporation was appropriate for the policies of the Government. Vietnam - attractive destination for Korean companies Many advanced technologies of the Republic of Korea (RoK) are being introduced at the 6th International Exhibition on Environment and Energy Technology (Entech) from May 21-23. Themed “Energy Efficiency and Environment”, the event has attracted 130 leading businesses showcasing their products and services in 250 stands, including 90 from the RoK. The exhibition aims to promote the transfer of technology related to energy saving to minimise environmental pollution and effectively use natural resources, energy and the environment in the context of global climate change towards a low-carbon economy. A significant number of countries from Laos, Cambodia, Hong Kong, Germany and China are also participating in the event. During the exhibition, a Vietnam-RoK environment and energy industry forum will be held, creating a chance for leading businesses from the two countries to cooperate and seek partnerships. Entech Hanoi 2014 also provides a great chance for Vietnam to promote its investment environment. A large number of Korean businesses attending the event shows they continue to find Vietnam an attractive investment destination. Ha Giang, Yunnan boost economic cooperation Ha Giang province (Vietnam) and Wenshan prefecture of Yunnan province (China) on May 20 signed a memorandum of understanding to boost border economic cooperation ties. The MoU aims to promote cooperative relations, enhance economic, cultural exchanges, and expand goods consumption between the two sides. So far, Ha Giang province has granted investment certificates to 13 Chinese-invested projects with a total investment capitalisation of US$19.6 million. Total export- import turnover of goods across the borders of Ha Giang Province reached US$300 million in 2012, US$400 million in 2013, and around US$86 million in the first five months of this year. In May, the two sides also worked with their districts sharing borders to facilitate trade exchanges through border gates, border markets and open crossings. UAE Company committed to Ha Long Star project The United Arab Emirates-based Nakheel plans to resume work on an urban and tourism centre project (Ha Long Star) in the northern border province of Quang Ninh in June 2014. Ha Long Star, which sits on 125ha with a total investment of US$550 million, will build a five-star hotel, a luxury hotel, 226 villas, 85 houses, 114 apartments, and a trading centre. The project got off the ground in 2007 by a joint venture between Limitless, an affiliate of Dubai World, Viet-My Ha Long Joint Stock Company and the International Property Investment Partners LLC, but was delayed due to financial crunch. During a trip to the UAE last year, Pham Minh Chinh, Secretary of the Quang Ninh provincial Party Committee, and Ali Rashid Lootah, Chairman of Nakheel and Limitless, signed a memorandum of understanding, pledging to carry out the landmark property project. In May 2013 Sovico Holdings, a private Vietnamese-run company, also signed a JV contract with the UAE partner to implement the project     Nguyen Van Doc, chairman of the provincial People’s Committee, visited Dubai last week to discuss the resumption of Ha Long Star with the UAE partner. He also had a working session with representatives of the Investment Corporation of Dubai (ICD) and suggested the group invest in Quang Ninh’s Van Don economic zone with numerous incentive policies. Improving SMEs’ export competitive edge A framework for integrating design aesthetics into a product and a wide range of other innovative ideas, providing small-and medium-sized enterprises (SMEs) products and services a competitive edge is proving effective. At a conference in Can Tho City on May 21, Vice Project Director Nguyen Thi Minh Thuy said the US$4 million programme funded by Switzerland is expected to facilitate the creation of niches in the global marketplace for traditional products such as handicrafts, processed seafood and fruits. The websites – buyvietnam.com.vn and mekongsp.com – are being launched on a pilot basis to support advertising, and other marketing activities of Vietnamese products and services in the global marketplace, Thuy said. The programme will also support organisations such as the Vietnam Trade Promotion Agency (Vietrade), local trade promotion centres and others to more effectively support SMEs in their international marketing efforts, she concluded. WGC: Vietnam gold demand surges in Q1 According to the latest report from the World Gold Council (WGC), Vietnam consumed 19.5 tonnes of gold in the first quarter of 2014, a 5% rise compared to the previous year. It continued to rank seventh in terms of global gold consumption. Of the total amount, 4.5 tonnes were imported for jewellery making and the remainder for gold bar production. In terms of value, gold consumption for jewellery making and gold bar production totalled US$810 million, down 17% against the same period in 2013. WGC also reports that world gold demand was almost unchanged in the first quarter of 2014, hovering around 1,074.5 tonnes. China was the largest gold consumer, importing 263.2 tonnes. Vietnam-Venezuela JV exports compact bulbs to central America Vietven Iluminaciones, a Vietnam-Venezuela joint venture company, has exported nearly 5,500 compact fluorescent light bulbs to the Federation of Saint Kitts and Nevis – a smallest state in the Americas. This is the JV’s first batch overseas resulting from an energy development agreement between the Caribbean countries.     Bernardo Álvarez, president of Petrocaribe, an oil alliance of many Caribbean states, said the bulbs will be used for a pilot project to replace incandescent light bulbs in Saint Kitts and Nevis. The company is scheduled to supply the state with 195,000 more such bulbs in the second phase, enabling its residents and offices to use these energy-saving products. It plans to manufacture and export LED lights to Saint Kitts and Nevis in the coming time. Vietven Iluminaciones, the first energy saving bulb manufacturer, was established on the initiative of late Venezuelan President Hugo Chavez. Vietnam - a dynamic market: Ireland Business Directory 2014 The Ireland Business Directory recently posted an overwhelmingly positive review of Vietnam on its website. The review stated that Vietnam has successfully shifted from a centralised planning to a socialist-oriented market economy. Over the past two decades, Vietnam has achieved impressive GDP growth rate on average of 7%. Vietnam’s open economy reached a two-way trade volume at around 160% of GDP. Vietnam now takes lead in the world in exporting rice, coffee and cashew nuts, seafood, electronics, software, crude oil and household utensils, the review continued. Among the newly-emerging economies, Vietnam is considered the leading destination for foreign investors. Over the past five years, Vietnam has attracted some US$6.5 billion in foreign investment capital (FDI) each year. A report by Ernst & Young was also referenced, which described Vietnam as a rising star with an average GDP per capita increasing six times within the next 25 years. The review also emphasised that the number of households with an income of US$30,000 per year in Vietnam is expected to rise from below 6,000 in 2011 to over 60,000 in 2021. The review added that Irish businesses can seize good opportunities in such fields of infrastructure, agriculture, energy, information technology and the development of human resource in the Vietnamese market in the future. The state owned enterprises (SOEs)’ equitisation process will open up huge opportunities for foreign investors to make their joint efforts to restructure the national economy. Being the 150th member of the World Trade Organisation, Vietnam is integrating deeply into the regional and the world economies. Gov’t pledges to ensure rights of foreign investors Deputy Prime Minister Vu Van Ninh has affirmed Vietnam’s policy of creating the best possible conditions for foreign businesses and investors in Vietnam and ensuring their legitimate rights in accordance with the country’s law as well as international practices. He made the statement on May 21 at a meeting with officials of the southern province of Binh Duong and representatives from foreign and domestic enterprises, including those affected by the recent anti-Chinese protests. He welcomed the businesses’ cooperation with Binh Duong in overcoming the outcomes of the incident so that many firms can resume their normal operation. According to the provincial People’s Committee’s report, over 95 percent of the affected enterprises have recovered their production. He stated that the recent incident is regrettable, underscoring that Vietnam will not tolerate law-breakers. The Vietnamese Government has instructed local authorities in all affected localities to promptly investigate and punish the violation, while applying effective measures to prevent the reoccurrence of such acts, he noted. Yamaguchi Kimio, Chairman of the Japanese Business Association in Ho Chi Minh City , said the affected Japanese firms, including those in Binh Duong, has returned to work normally. He said he hopes more support policies will be provided to help the damaged firms. Hang Vay Chi, Chairman of the Board of Directors of the Viet Huong Joint Stock Company, said 95 percent of the firms in the Viet Huong industrial park have resumed operation. Currently, 80 percent of the enterprises that the park is hosting are Taiwanese. He reported that in a recent survey of 15 Taiwanese firms based in the IP, more than half said that they will expand their businesses in Binh Duong, adding that two business delegations from Taiwan are scheduled to visit Binh Duong to explore the province’s investment environment. At the same time, representatives of the Binh Duong Garment and Textile Association suggested that procedure to seek insurance payment should be simplified for affected companies that have their document lost or damaged. SBV vows to ensure safety for foreign banking operations The Governor of the State Bank of Vietnam (SBV), Nguyen Van Binh, on May 21 committed to ensuring security and safety for foreign banks and the protection of the legitimate interests of foreign investors in Vietnam. At a Hanoi conference on the operations of foreign banks in Vietnam, Binh stated that despite complicated developments in the East Sea following China’s illegal placement of a drilling rig in Vietnam’s exclusive economic zone, the country’s currency and gold markets remained stable. The governor asked foreign banks to continue their normal operations to serve both domestic and international customers, and inform the SBV of difficulties they face, so that it can take appropriate measures to help solve these shortcomings. They were also urged to fulfil their role in encouraging foreign investors to do business in Vietnam, as well as join hands with the Vietnamese Government and the SBV in maintaining a stable currency and gold market and solving difficulties in business for enterprises. Attending the conference, senior officials from foreign banks that have been in Vietnam for a long time, like Citibank, ANZ, Shinhan Vietnam and the Industrial and   Commercial Bank of China (ICBC) spoke highly of the timely response of the Government and SBV to impacts caused by the East Sea issue. They also showed their belief in the Government’s policies of establishing legal frameworks and a safe investment environment to attract more foreign investors to Vietnam. May’s CPI: Hanoi down, HCM City up The May consumer price index (CPI) for Hanoi remained relatively unchanged (down by 0.07%) from the previous month. Analysts at the Municipal Statistics Office attribute the slight decrease to weak demand. Hanoi Department of Industry and Trade in turn said the price of rice in the market is slightly lower due to an abundance of supply while demand is stable. However, lower export demand is influenced by international prices. Gold prices have continued to drop (by 1.4%) from the previous month in line with the world price decline in gold while the price of US dollar remained stable. ***In Ho Chi Minh City, the CPI rose by 0.36% against April. Two groups, telecommunications and drugs and medical devices, posted a slight decreased of 0.1%. In contrast, foodstuffs and dining-out services rose 0.71% against April. The Mekong River Delta produced a high yield from the winter-spring crop, becoming a good supply of food for HCM City that makes food prices stable. The prices in the basket of goods in culture, sports and entertainment rose slightly 0.15%. Gold prices continued to fall by 0.61%, consistent with the decline in Hanoi and the price of US dollar saw a light rise of 0.03% from a month earlier. Local firms among top rapid growth companies in East Asia AA Construction Company, Vinagame, Thien Minh Group, Minh Phu Seafood Group and Mobile World Joint Stock Company are listed among top 20 rapid growth companies in East Asia. The World Economic Forum on East Asia 2014 (WEF East Asia 2014) in the Philippines has announced its selection of 20 Global Growth Companies (GGCs) in East Asia. They are the region’s most dynamic and high-growth companies and considered pioneers, shapers and innovators that are committed to improving the state of the region and the world. They boast great potential for becoming the global economic leaders. Selected companies include five from Vietnam, six from Japan, three from the Republic of Korea, two from Myanmar and one from Cambodia, Indonesia, the Philippines and Singapore each. Deputy PM: Vietnam ensures safety for foreign businesses Deputy Prime Minister Hoang Trung Hai has affirmed that the Vietnamese Government will make every measure to ensure security and safety of life and assets for domestic and foreign businesses operating in the Formosa project in Ha Tinh province. Hai made the statement during his May 19 working session with leaders of the central province and representatives from the Hung Nghiep Formosa Co., Ltd on a recent disturbance that occurred at the Formosa project in the Vung Ang Economic Zone. While inspecting the situation at the project, he said the disturbance, created by extremists, caused losses for not only investors but also workers at the project, affirming that the Government, the locality and competent agencies have strictly punished them under the law. He also pledged to create the best conditions for investors and contractors to complete the project on schedule. Hai asked the province to continue communication campaigns to raise public awareness of the situation while coordinating with investors and contractors to bring production activities back to normal. According to Chairman of the provincial People’s Committee Vo Kim Cu, on May 14, a parade in the Vung Ang Zone opposing China ’s illegal placement of a drilling rig in Vietnam ’s exclusive economic zone turned into a conflict with foreign experts and workers at the Formosa project. Taking advantage of the situation, some people set fire to the houses of foreign workers and stole company assets, machinery and other equipment. Right after the incident, the local authorities swiftly controlled the situation and called on employees to restrain themselves while evacuating foreign workers to safe places, Cu said. By May 21, 33 businesses and contractors with more than 7,380 workers resumed their work at the project, he added. Local firms awarded for outstanding corporate governance Twelve Vietnamese businesses will be selected for the Vietnam Outstanding Corporate Governance Awards (VOCA 2014), according to a press conference in Hanoi on May 21. The Awards, jointly launched by the International Data Group (IDG Vietnam) and the Vietnam Association of Certified Public Accountants (VACPA), aim to honour businesses with excellent cooperate governance models, following international standards. The prestigious title will be presented to a dozen local businesses in six different sectors belonging to two categories – listed and non-listed firms with annual revenue exceeding VND500 billion. The judging panel, which includes leading experts and economists, will shortlist the best candidates over three rounds before making the final decision. The presentation ceremony is scheduled to take place in Ho Chi Minh City in November 2014. At the press conference, Vice Chairman of the National Financial Supervisory Commission Dr. Ha Huy Tuan raised his concern over Vietnamese businesses’ poor governance capacity. Tuan said only 2-3% of local enterprises properly understand the concept “corporate governance”. He suggested Vietnamese businesses take into account sustainable development strategy and long-term benefits. It is essential to improve governance capacity through increasing independent inspection, setting long-term visions, and ensuring transparency in business operations, he added. Conference convenes to solve finance access challenges The 20th World Savings Banks Institute (WSBI) conference for the Asia-Pacific was opened in Hanoi on May 21, focusing on how to translate finance access challenges into business opportunities. Nguyen Duc Huong, Standing Vice Chairman of the Lien Viet Post Joint Stock Commercial Bank, said that many banks in Vietnam have paid heed to services for rural clients, who account for two thirds of the country’s population. The bank-post office model has been applied in many countries and proved effective, since the postal system can reach remote areas which the banking network is unable to cover, he noted. At the opening session of the two-day event, participants discussed the development of the retail banking market, mobile banking services and international cooperation in retail banking. WSBI Managing Director Chris De Noose said that legal framework needs to be bettered to promote retail banking products. He added that WSBI will continue to support small-and medium-sized enterprises’ access to capital so as to drive economic growth of regional countries. Hungarian businesses network in HCM City Representatives from the Hungarian Chamber of Industry and Commerce led by its Chairman László Parragh paid a working visit to HCM City on May 21 to seek new partners. At the Vietnam-Hungary Business Forum on May 21, Vo Tan Thanh, Director of Vietnam Chamber of Industry and Commerce (VCCI)’s HCM City Branch emphasised that although two-way trade has not yet reached potential, both sides agreed to strengthen cooperation in fields such as agriculture, pharmaceuticals, and energy in the future.  László Parragh, Chairman of the Hungarian Chamber of Industry and Commerce With this in mind, Vietnamese and Hungarian communities should devise effective strategies to take full advantage of investment opportunities to realise the cooperative agreements and promote bilateral trade. Mr Thanh said that two-way trade remains at US$100 million annually. Vietnam’s key exports to Hungary are garments and textiles, computers and wooden products while its major imports from the market include machines, equipment, pharmaceuticals, cattle feed and materials. For his part, Chairman László Parragh said that Hungary has the advantage of being situated in the centre of the European Union (EU) and becoming the favourable gateway for Vietnamese goods to penetrate the EU market. Among the world’s top nations with the highest average per capita income, Hungary has attracted famous global trademarks and investors. The Hungarian Government also encouraged businesses to invest in the industrial sector and promote exports in concrete areas such as renewable energy and agricultural technology. Hanoi hosts banking expo The Vietnam Banking Conference and Expo 2014 opened in Hanoi on May 21 to identify measures to boost infrastructure restructuring and enhance risk management capability in the banking industry. The two-day event, co-organized by the State Bank of Vietnam (SBV)’s Information Technology Department of the Bank (ITDB) and the International Data Group (IDG   Vietnam), attracted leading commercial banks and technology solution providers who discussed market trends and introduced the latest banking services. Participants addressed key issues relating to technology and risk management which are necessary when devising effective new strategies to survive and grow in a competitive market environment. The two-day conference had four panel discussions and various keynote speeches from leaders of governmental agencies, representatives from central bank and commercial banks, financial experts, and top solution providers in the banking sector. In conjunction with the conference, an exhibition was also held to showcase the latest technologies and products applied in the banking industry. Leading domestic and international businesses took the opportunity to introduce their state-of-the-art products and services to help banks generate the best strategic plans for the future. The exhibition included initiatives on core banking and mobile banking solution, cash management solution, e-wallet solution, P2P mobile payments, and system integration. Banking Vietnam is in its 17th year and is the most prestigious annual banking conference and exposition in Vietnam. With the participation and strong support from the   SBV and senior government leaders, Banking Vietnam has gained enormous interest and been marked as one of the “must-attend” events by the bankers’ community in the country. Retail banks prepare strategies to serve nation's poor Regional retail banks need to cooperate more closely to tackle challenges, puzzle the mass market and promote microfinance so as to serve the underprivileged population better. The message was among the key themes of the 20th World Savings Bank Institute (WSBI) Asia Pacific Region Group Meeting held yesterday by WSBI and   LienVietPostBank in Ha Noi. The two-day annual meeting gathered 80 bankers, managers and financial activists from 20 countries in Asia-Pacific, Africa and Latin America. Creating access to financial services is recognised as a big challenge to retail banks because half of the people living in the Asian-Pacific region do not have accounts at official financial institutions. Bankers were urged to explore innovative business models such as mobile banking, mobile money, e-payment and postal savings banks to facilitate exchange of experience and international best practices to innovate and broaden the product range in rural areas. In Viet Nam, about 70 per cent of the Vietnamese population lived in rural areas, where accesses to financial services were limited, noted State Bank of Viet Nam's Deputy Governor Nguyen Toan Thang. He argued that it was imperative to develop microfinance and carry out reforms to create equality and fairness for everyone. Nguyen Duc Huong, LienVietPostBank's Permanent Vice Chairman of the Board of Directors, stated that the development perspective in the rural area agriculture was potential. LienVietPostBank invests 40 per cent of capital into this sector and provides credit to creditworthy borrowers through postal facilities and local veterans associations. Huong noted that this sector held no bad debts. Today, the meeting will discuss the integration of banking system in the ASEAN Economic Community, which will be launched next year. WSBI is an international retail banking association that brings together 108 retail banks and associations from 83 countries across the world. Source: VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR