BUSINESS IN BRIEF 21/10 Construction of Long Thanh International Airport is urgent: transport ministry The construction of Long Thanh International Airport in the southern province of Dong Nai is urgent and necessary, Deputy Minister of Transport Nguyen Hong Truong said, mainly due to Ho Chi Minh City’s Tan Son Nhat International Airport being overloaded. In a meeting in HCM City on October 16, Truong said Tan Son Nhat Airport was running at maximum capacity, accommodating 20 million passengers in 2013, and needed to be expanded to cater for 50 million passengers a year. He predicted the airport would be overcrowded by 2016 or 2017. To increase the airport’s capacity to 50 million passengers per year would require investments of at least 9.1 billion USD and approximately 140,000 households would be displaced, while the surrounding transport infrastructure would not be able to cope with the influx in traffic, he added. Meanwhile, head of the Vietnam Civil Aviation Authority Lai Xuan Thanh said services at Tan Son Nhat Airport were likely to deteriorate between 2017 and 2023, a point in time when Long Thanh Airport will probably not be ready yet. According to the approved plan, the Long Thanh International Airport project will be carried out in three phases. During the first phase, which lasts until 2025, the airport will be able to serve 25 million passengers and 1.2 million tonnes of cargo per year. An estimated 164 trillion VND (nearly 7.8 billion USD) will be allocated to Phase 1, with 85 trillion VND coming from the State budget and the rest being official development assistance. It is expected to process 80 million and 100 million passengers each year by the end of the second phase in 2030 and the end of the third phase, respectively. Nguyen Nguyen Hung, Chairman of the Member Council of the Airports Corporation of Vietnam, said the establishment of Long Thanh Airport not only reduces the burden on Tan Son Nhat Airport, but is also part of the Vietnamese aviation industry’s development strategy. Power saving efforts highlighted in national conference The seventh National Conference on Energy Efficiency opened in the Mekong Delta province of Tien Giang, highlighting the efforts of ministries and localities up and down the country to conserve energy. According to Dang Huy Cuong, Head of the Ministry of Industry and Trade’s General Department of Energy, 14 centres for energy saving were established nationwide, together with a number of other centres for technology transfer and advice. Power saving measures were carried out in most localities, contributing to the success of the National Target Programme on Efficient and Economical Use of Energy, he noted. Meanwhile, Trinh Quoc Vu, Head of the Department’s Office for Science, Technology and Energy Saving, said at present more than 3,000 household and 10 industrial biogas facilities were operational in 26 cities and provinces. At the same time, over 600,000 solar water heating were put into operation, along with more than 400 energy saving measures applied by businesses, he said. Energy saving audits were carried out at 200 businesses, he noted, adding that more than 100 staff members and 45 experts from 55 companies participated in training courses on bringing energy management in line with the ISO 50001 standard. However, Vu also highlighted some shortcomings of the programme, including poor access to preferential loans, the low capacity of energy saving centres, and a lack of coordination between relevant agencies. The National Target Programme on Efficient and Economical Use of Energy was approved by the Prime Minister in 2006, while the Law on Efficient and Economical Use of Energy was put forth on January 1, 2011. In the 2012-2015 period, the programme aims to reduce energy consumption in energy-intensive industries by 10 percent and national energy consumption by 5-8 percent. In addition, the Ministry of Industry and Trade also certified 6,215 products in 13 categories as low energy consumer goods, which will now feature a mandatory label declaring the level of energy efficiency, including TVs, lamps, air conditioning systems and washing machines. Unitel celebrates 5 years of operation in Laos Vietnam’s Star Telecom (Unitel) held a ceremony in Vientiane on October 16 to mark its five-year operation in Laos. Attending the event were several senior Lao officials and Minister Counsellor at the Vietnamese Embassy in Laos Hoang Xuan Hai. Since its inception in October 2009, Unitel, a joint venture between Laos-Asia Telecom and Vietnam ’s military telecom group Viettel, has built a network of over 3,000 base-transceiver stations (BTS) in 17 cities and provinces. It has also developed a distribution system of more than 100 agents throughout the country. With 2.3 million subscribers, Unitel is leading Laos ’ telecom market with 49 percent of market share. In addition to business activities, the company has carried out a number of social programmes such as providing free internet services for more than 600 educational establishments across the country and supporting flood victims, building village health clinics. It has also funded a contest aimed at improving computer skills for local students and provided free Internet services for the 35 th General Assembly of the ASEAN Inter-Parliamentary Assembly (AIPA) in Laos . In the coming time, the company will strive to maintain its growth rate and increase investment in innovating technology with a view to becoming the best telecom service provider in Laos. Vietnamese firms need to revitalise business strategies: VCCI leader Vietnamese enterprises need to revise their business strategies in a professional and careful manner in order to make use of the future development opportunities, Vietnam Chamber of Commerce and Industry Director Vu Tien Loc said. The past few years were difficult for the Vietnamese business community. However, due to the Government’s efforts to reform its administrative procedures, enterprises regained confidence in the future business climate, he noted. The VCCI leader said a new wave of investments lay ahead, with more stability and caution. During the period of 2004-2006, thousands of firms went bankrupt due to their investments in a failing financial and real estate sector, while 60-70 percent of businesses made no profit. However, nearly 500,000 enterprises are currently in a position of stability, contributing to national economic growth and creating jobs, Loc said. The government’s economic restructuring efforts have also been stepped up, Loc said, adding that by 2015, more than 400 State-owned enterprises, accounting for around half of SOEs, will have been equitised. For the first time, Vietnam has met the ASEAN standards on administrative reform, while the National Assembly considered the approval of the Laws on Enterprises and Investment, which is expected to support business development, he stated. At the same time, Vietnam ’s signing of a number of free trade agreements (FTA) with partners is also hoped to open up new chances for domestic businesses to expand their development space, according to Loc. The VCCI leader was of the opinion that FTAs, along with other trade deals, would pave the way for Vietnamese firms to increase their exports, especially of strong products such as footwear and apparel; and agriculture, forestry and fisheries products; while attracting more investments. Meanwhile, Do Huu Hao, Chairman of the Vietnam General Association of Mechanical Engineering, asserted that FTAs would also put pressure on Vietnam to improve its investment environment and build a comprehensive economic institution. An investment institution would support the creativity of enterprises, Hao said, who is a former Deputy Minister of Industry and Trade. He added that a suitable roadmap for Vietnamese firms for the next five years was to exceed the ASEAN standards and orientate themselves along US and EU standards. Additionally, the reforms of administrative procedures, taxation and customs should be made more transparent in a bid to raise the confidence of enterprises. On top of this, VCCI Director Loc said it was crucial for Vietnamese enterprises to improve their capacity and internal strengths to make use of all the opportunities. According to Cao Sy Kiem, head of Vietnam ’s Association of Small and Medium-Sized Enterprises, the country’s SMEs could face a number of difficulties in competing with foreign rivals upon implementation of the FTAs due to their limited capital, out-of-date technology and low-quality labourers. Sharing Kiem’s opinions, Hao acknowledged that enterprises themselves were affected by many shortcomings, from management and technology to capital sources, underlining the need for businesses to improve their own situations. Businesses should pay more attention to the fundamental elements of development and their internal processes, such as management strategy, human resources development, and technology, Loc said. The VCCI also proposed concrete measures to improve the competitiveness of Vietnamese enterprises in the integration process, including the establishment of a system of business associations. A new business development era needs to be launched in Vietnam , with more enterprises showcasing their tangible strengths, Loc concluded. Project to develop eco-industrial park A US$53 million project to help Viet Nam develop an eco-industrial park model was officially inaugurated yesterday by the Ministry of Planning and Investment and the United Nations' Industrial Development Organisation (UNIDO). The three-year project will be implemented in all three regions of the country - Ha Noi and Ninh Binh in the north, Da Nang in the central region and Can Tho in the south. "The project will facilitate the transformation of current industrial parks into eco-industrial parks by promoting sustainable industrial production practices", said the UNIDO Representative Patrick Gilabert. At least 45 enterprises in four selected industrial parks in Ninh Binh, Da Nang and Can Tho will join training courses that help them implement new technologies to save energy, reduce emissions and dispose waste. The project is expected to cut greenhouse gas emissions by about 182,000 tonnes and reduce sewage disposal by 6 million cubic metres per year while guaranteeing that the treated waste water will meet international standards. "Viet Nam is becoming a popular destination for global enterprises and the number of industrial parks is increasing rapidly. However, it has posed major environmental challenges to the country," Deputy Minister of Planning and Investment Nguyen The Phuong said at the project's opening ceremony. According to official reports, only about 80 per cent of industrial parks in the country are equipped with national standard wastewater treatment systems, which falls fall short of the 100 per cent target set in the Government's five-year (2011-2015) socio-economic development plan. Anti-dumping lawsuits an effective tool in global integration Anti-dumping lawsuits against imported products constitute an effective tool for enterprises to protect domestic manufacturing, experts said in a workshop in southern Can Tho city on October 17. Anti-dumping cases were particularly significant in the context of country that is still in the process of integrating itself into the global economy, according to participants. Deputy Director of the municipal Vietnam Chamber of Commerce and Industry (VCCI) Vo Thi Thu Huong said only a few Vietnamese businesses utilised this self-protection measure as it is not widely known or understood. As of September, Vietnam has conducted three anti-dumping investigations on imported goods, including one on cold-rolled stainless steel in July 2013, statistics published by the Secretariat of the VCCI’s Trade Remedies Council (TRC) showed. Since 1994, Vietnamese exporters faced 77 trade remedy lawsuits, including 55 anti-dumping cases. In September 2014, the Ministry of Industry and Trade issued the order to impose tariffs on stainless steel for the first time, which shows the State’s readiness to protect the legitimate interests of domestic manufacturers. Businesses should increase links amongst themselves and seek information on the international legal regulations in an effort to increase competitiveness and reduce losses to the manufacturing sector, participants suggested. Vietnamese businesses face great challenges when joining AEC Many Vietnamese businesses will face difficulties on both the domestic and regional markets when the ASEAN Economic Community (AEC) takes shape by the end of 2015, an official from the Foreign Investment Agency said at the Mekong Subregion Cooperation and Development Forum which took place in Hanoi on October 17. Deputy Head of the Foreign Investment Agency (FIA) under the Ministry of Planning and Investment Vu Van Chung said businesses with low competitiveness will not be able to participate in highly profitable links in the supply chain, while labourers without skills cannot hold managerial or well paid positions. At the same time, the formation of the AEC will allow investors both inside and outside ASEAN to enter emerging economies such as Myanmar, Laos and Cambodia, posing challenges to Vietnamese businesses operating in these markets, he said. According to Chung, to effectively promote Vietnam’s economy in general and Vietnam’s investment climate once AEC takes shape, the Government, ministries and sectors are accelerating the building of a complete legal framework for investment and business as well as the drastic reform of administrative procedures relating to business start up, construction, land use, customs, tax, social insurance and labour recruitment. In addition, Vietnam also prioritises the development of its support industries, and improvements to firms’ competitiveness and the quality of human resources in an effort to attract more investments to the country, he noted. Deputy Minister of Planning and Investment Nguyen Van Trung affirmed that the Government will implement a number of measures, such as boosting bilateral and multilateral cooperation between the bloc and non-member states in order to fully benefit from the process of international economic integration. This year’s Mekong Subregion Cooperation and Development Forum “2015 ASEAN Economic Community (AEC) - Opportunities and Challenges” aimed to increase mutually beneficial links between Cambodia, Laos, Myanmar, Thailand, Vietnam and China’s Guangxi and Yunnan provinces. Addressing the event, Phuong Huu Viet, Chairman of the Vietnam-Laos-Cambodia Association for Economic Cooperation Development said the forum provided Vietnamese businesses, especially those who operate throughout ASEAN, with useful information on how to integrate into AEC once it is established next year. Key discussions focussed on issues on economic and management policies, financial system reform, and the role of State management bodies in helping enterprises resolve difficulties. The AEC aims to establish a single common market that enables the free movement of goods, services, capital and skilled labour within ASEAN, thus increasing competitiveness, promoting prosperity in the region and attracting external investments. Former Deputy Prime Minister Vu Khoan highlighted the need to design a master plan for economic integration, renovate institutions and take advantage of new opportunities emerging from the integration process. According to the FIA, investors from ASEAN member states have invested in 55 out of 63 Vietnamese localities so far, with 2,431 projects, worth 51.8 billion USD. These account for 14.2 percent of total foreign direct investment (FDI) projects and 21.4 percent of the total FDI capital in the country. Singapore is now the largest ASEAN investor in Vietnam, followed by Myanmar and Thailand. Hutech invests VND 950bln in Saigon Hi-Tech Park The project named Hutech’s high quality human resource training Center has just been started construction in Saigon Hi-Tech Park (SHTP) by Ho Chi Minh City University of Technology (Hutech). The total investment capital is VND 450billion. The project covers an area of 41,300 meters square in E1 area of SHTP. Hutech said its first phase will be completed in 2015 and training center will be put into operation in end-2018. To date, Hutech has invested VND 950billion in SHTP with two projects including Hutech hi-end Institute with investment capital of VND 500billion and trainning center. $613 mil expected for site clearance of Long Thanh Int’l Airport project Site clearance and compensation of the planned Long Thanh International Airport is estimated to cost over VND13 trillion (US$613 million), reported the Dong Nai Province People’s Committee Office on October 15. Area planned for the project is accommodations of 4,541 households with 14,462 people. Of them are 3,400 workers, 2,470 farmers and 700 traders. The project will affect 3,900 houses over 35,000 square meters, and 3,000 land hectares of local people which is accounted for 60 percent of total area in need of clearance for the project. Deputy Chairman of the province People’s Committee Tran Minh Phuc asked the departments of Natural Resources and Environment, Finance, and Construction and Long Thanh District People’s Committee to quickly build resettlement and employment projects for the affected residents. Prime Minister Nguyen Tan Dung has approved the project as per proposal by the Party Civil Affairs Commission of the Ministry of Transport and assigned the Commission to report the project to the Politburo for approval. Gov’t agricultural development loans cover more enterprises Nearly VND2 trillion (US$94 million) from the Government’s pilot loan program on agricultural development has been passed for another 19 projects of enterprises nationwide. The Governor of the State Bank of Vietnam has approved the list of commercial banks and customers from 16 cities and provinces to attend in the program; loaning connectivity modals in agricultural production, hi tech application and farm produce consumption. Earlier, the first four enterprises from the Mekong Delta province of An Giang were loaned VND350 billion at the end of May. In July, commercial banks continued providing another six companies from five provinces and cities with VND2.37 trillion to carry out projects on hi tech agriculture and production chains. Inspection over ODA, FDI projects to be intensified The Ministry of Investment and Planning’s Inspectorate will intensify inspection over Official Development Assistance (ODA) and Foreign Direct Investment (FDI) projects to prevent corruption as per Vietnam’s pledges to international sponsors. That was revealed at a conference reviewing ten year operation and receiving the Second Class Labor Medal of the ministry’s inspectorate on October 17. Inspection operations will also be strengthened in public investment, BOT (Build-Operate-Transfer), BT (Build-Transfer) and PPP (Public Private Partnership) projects, and in traffic, electricity, garbage collection and treatment, environment cleanup, and clean water supply fields. For the last ten years, the ministry has conducted nearly 80 specialized inspection cases, uncovered a lot of violations, and proposed penalties totaling VND6.9 trillion and US$67 million. They also proposed withdrawal of 6 hectare land and nearly 60 investment projects with total registered capital of VND12 trillion and US$15 million. Besides, they have put forward measures to remedy limitations, contributing to improve the legal framework in public, private and foreign investment and planning. Royal Brunei Airlines opens its representative office in HCMC The Brunei’s national flag carrier Royal Brunei Airlines officially reopened direct route from Ho Chi Minh City to Bandar Seri Begawan starting October 17. The new service will be operational with four weekly flights on Tuesday, Thursday, Friday and Saturday, using Airbus A320 and A319 aircrafts. It takes about two hours to fly from Ho Chi Minh City to Brunei. The return of Brunei’s airlines to Ho Chi Minh City is expected to create more options for holiday-makers who are now able to fly from Brunei to Kota Kinabalu, Indonesia, Melbourne, Dubai and London. Royal Brunei Airlines launched also its new representative office in Ho Chi Minh City on the same day. Consumers opt for local goods Locally-made products have won consumers' favour since a campaign entitled "Vietnamese give priority to Vietnamese goods" was launched five years ago. Nguyen Thien Nhan, chairman of the Viet Nam Fatherland Front (VFF) central committee, made this remark at a conference in HCM City this week to review the five-year implementation of the campaign, which, he said, helped change Vietnamese consumers' awareness of local products. Apart from generating more jobs and raising incomes for labourers, the campaign had contributed to the establishment of a production and supply chain, said Nhan, also head of the campaign's central steering committee. He added that under the programme, all cities and provinces would be building communication channels with a "Proud of Vietnamese goods" slogan by 2020. The programme also aims to raise Vietnamese products' market share in traditional supply channels in remote rural areas to 80 per cent, revealed Nhan. To realise these targets, the VFF chairman required concerned ministries, branches and localities to roll out concrete programmes and plans to further popularise the campaign in the future. He urged enterprises to accelerate scientific-technological applications while improving the quality and competitive edge of products and services. A Nielsen Company survey revealed that up to 90 per cent of consumers in HCM City and 83 per cent in Ha Noi said they would choose Vietnamese goods. A report of the municipal, city and provincial steering committees of the campaign also confirmed this and showed that Vietnamese consumers appreciated locally-made products. In numerous localities, about 80 per cent of the Vietnamese people expressed preference for made-in-Viet Nam garment and footwear products while 58 per cent chose local food and vegetables. A programme linking businesses with commercial banks was simultaneously launched in the districts and provinces and has helped to provide for more than 1,000 business households experiencing financial difficulties. In addition, the HCM City People's Committee has approved 98 projects for stimulus consumption worth VND7 trillion. Of this figure, a VND3.7-trillion loan came from the city budget. However, participants at the event also pointed out a range of bottlenecks hindering the implementation of the campaign, such as cumbersome procedures, fake products and loose coordination between businesses, producers and distributors. Last July, a survey of the Institute of Public Opinion Research revealed that 63 per cent of Vietnamese consumers ranked Vietnamese goods as their first choice whenever they went shopping. This represents a four – per cent increase over that of 2010. The survey also showed that 92 per cent of Vietnamese consumers expressed interest in the programme. Le Ba Trinh, VFF vice chairman, said that previously, Vietnamese goods accounted for a very modest volume in supermarkets and shops but now, it has accounted for at least 80 to 90 per cent. The Viet Nam National Textile and Garment Group reported that after five years of implementing the prgramme, its local revenues changed drastically. It is expected that this year, its local revenues will reach VND22 trillion, a 10 – to 15-per cent year-on-year increase. The group's export turnover this year is also expected to reach $24.5 billion, or $1billion more than it predicted early this year. Also, Vietnamese goods have secured a firm foothold in big cities such as Ha Noi and HCM City. Nguyen Thi Hong, vice chairwoman of the HCM City People's Committee, said that after five years, Vietnamese consumers had expressed appreciation for locally-made products. She added that Vietnamese consumers now favoured numerous products such as garments, textiles and footwear. The programme steering committee has set a target of 80 per cent of market share in traditional distribution channels in far-flung rural areas by 2020. To reach this target, Trinh said domestic businesses should continue promoting communication campaigns and raising consumers' awareness, as well as expand their distribution channels and enhance their competitiveness to establish a firm foothold in the domestic market. Construction projects, share sales boost HAGL figures Property developer Hoang Anh Gia Lai (HAGL) reported VND777.5 billion (US$36.6 million) in revenues in the third quarter of this year, mostly from construction deals and share sales. According to HAGL, the revenues represent a 29.7-per cent year-on-year increase. The company also reported that total revenues for the first nine months of the year reached VND2.4 trillion ($113.2 million), a 19.2-per cent year-on-year increase. It also exceeded its annual target for profits, which reached VND1.7 trillion ($80.1 million). In the first six months, agricultural products accounted for the highest percentage in the company's revenue structure, but in the last quarter, building contracts worth VND208 billion ($9.8 million) took up the highest proportion of revenues at 27 per cent. Revenues in the third quarter reached more than VND925 billion ($43.6 million) or triple that of the same period last year. Specifically, share sales in subsidiary units reached VND756 billion ($35.6 million), soaring by a whopping 258 per cent. HAGL reduced its stake in Hoang Anh Housing Development from 98.2 per cent to 85.7 per cent, Hoang Anh Gia Lai Malaysia from 98.2 per cent to 85.7 per cent, and Hoang Anh Gia Lai Bangkok from 46.14 per cent to 40.2 per cent. The group also divested from a hydropower plant in the central highland province of Dak Lak. In the agricultural product category, sugar turnover continued to lead with VND180 billion ($8.4 million), increasing significantly compared with the VND9 billion ($424,500) in the third quarter last year. Meanwhile, Rubber latex sales rose to VND73 billion ($3.4 million) in spite of declining prices. However, HAGL liabilities as of September 30 added more than VND3 trillion ($141.5 million) from the beginning of this year, reaching more than VND19 trillion ($896.2 million) or far exceeding its equity value of VND14.5 trillion ($683.9 million). HAG shares closed yesterday's session higher by 0.4 per cent to VND24,900 ($1.1). ACB close to hitting profit target Asia Commercial Bank (ACB) reported that it had completed 90 per cent of its VND1.2-trillion (US$56.6-million) profit target for 2014 in the first nine months of the year. ACB, one of the Ha Noi Stock Exchange blue chips, also revealed its plans to reach VND190 trillion ($8.9 billion) in total assets and 13 per cent growth in outstanding consumer credit. It also expects non-performing loans to be kept at below three per cent. ACB shares ended 0.7 per cent higher to VND15,200 yesterday. Tran Anh Digital reports losses Tran Anh Digital World (TAG) revealed that its losses reached VND8.4 billion (US$396,200) in the third quarter of 2014. However, its revenues improved by 15 per cent year-on-year to VND553.4 billion ($26.1 million). For the first nine months of 2014, TAG's losses reached VND3.8 billion ($179,200). The company attributed this to an increase in selling, general and administration costs. This year, Tran Anh plans to earn VND2.4 trillion ($113.2 million) in revenues and VND7.1 billion ($334,900) in profits. However, investors predict that the company will not be able to reach its goals. Tran Anh said the company planned to add more selling outlets in provinces outside Ha Noi. Its stock remained unchanged yesterday at VND24,400. Viet Nam approves ETF licence The State Securities Commission has granted a license to SSIAM HNX30, the second domestic exchange-traded fund (ETF), which the SSI Fund Management is handling. The fund simulates the 30 largest stocks which the HNX30 Index is tracking on the Ha Noi Stock Exchange and has a minimum capital of VND50 billion (US$2.3 million). VFMVN30, the first ETF, which the Vietfund Management created, began listing on the HCM City Stock Exchange last October 6. Last month, the SSI Fund Management set up its SSI Sustainable Competitive Advantage Fund, an open-ended fund, and raised VND112 billion ($5.2 million) in its initial public offering. HN-Index to apply new rules The stock exchange in the capital city will apply new trading orders such as Stop Order, Iceberg Order, Same-side Best Order and Opposite-side Best Order. The exchange said these orders had existed in its system but were not put into practice. The implementation would be based on investors' demand, it added. Ha Noi to hosts industrial and biotechnical technology fairs Two fairs on industry and technology and biological equipment will take place in Ha Noi from October 21-24. Covering 4,500sq.m, the Viet Nam International Industrial Fair 2014 (VIIF), will attract 250 businesses including 100 foreign companies from Russia, South Korea, mainland China, Taiwan and Malaysia. The participating firms specialise in many fields including energy, mining, mechanical engineering, support industries and technology. Meanwhile, Biotechmart 2014, organised by the National Agency for Science and Information Technology, is described as a good opportunity for scientists from the biotechnology sector to present their research and help enterprises to access advanced technologies. Seminars on the application of biotechnology in agriculture, pharmaceutical and environmental treatment will also be held on the sidelines of the event. Major brands to debut at Viet Nam Motor Show Porsche and BMW's Mini Cooper cars and Daimler's Fuso trucks will take part for the first time in the Viet Nam Motor Show to be held next month in HCM City, organisers announced at a press conference on Wednesday. The country's largest annual auto event will this year feature 18 companies including Ford, GM Honda, Mercedes-Benz, Suzuki, Toyota, Mitsubishi, Audi, BMW, Jaguar Land Rover, and Nissan besides hundreds of parts, accessories, insurance, and financing companies. Following the success of past events, the 10th Viet Nam Motor Show is expected to be a major milestone in global auto brands' road to engage with Vietnamese consumers. It will be a place where consumers can see, learn, and experience the latest models and technology and serve as a link between auto brands and consumers. The companies will showcase their latest models since Vietnamese consumers are very connected and technology savvy, according to the organisers. They are expected to bring state-of-the-art technologies and advanced eco-friendly global products. The exhibition will be held from November 20 to 23 at the Saigon Exhibition and Conference Centre. It is expected to receive a record 150,000 visitors. Thai metalworking fair to benefit domestic firms: organiser Southeast Asia's largest machine-tool and metalworking technology fair Metalex, to be held next month in Thailand, will provide Vietnamese firms with the chance to update their technologies and discover new business opportunities, the organiser said. Duangdej Yuaikwarmdee, deputy managing director of Thailand-based Reed Tradex Company, the organiser, said the four-day event beginning on November 19 in Bangkok would see 2,700 global brands from 50 countries and territories display thousands of new machines and cutting-edge technologies. There would be conferences and forums on the sidelines of the event on latest industry trends, technologies, and strategies, he said. With the ASEAN Economic Community set to come into existence next year, all ASEAN countries need to bolster their industrial capacity, he said. To remain competitive, Vietnamese firms need to invest in modern technologies, he said. Reed Tradex and its partners organised four large supporting industry expos - Metalex Viet Nam, Nepcon Viet Nam, Business Alliance for Supporting Industry, and Industrial Components and Subcontracting Viet Nam – in HCM City from October 9 to 11. The events attracted 14,879 visitors from 29 countries and territories, Yuaikwarmdee added. Forum to focus on restructuring agriculture field Agricultural restructuring will take the spotlight at the 2014 Asian-Oceania Computing Industry Organisation (ASOCIO) ICT Summit, to be held here and in Da Nang City from October 28 to 31. The event, the biggest of its kind in the Asia-Pacific region, will offer a good chance for Viet Nam to learn from international experiences in creating new agricultural and rural development models, thus bringing about a socio-economic facelift, said Truong Gia Binh, chairman of the Viet Nam Software and IT Services Association (VINASA). More than 700 delegates from 22 economies in the region are expected to participate in the event to discuss visions and strategies to use information technology as a pedal for socio-economic development towards the building of a dynamic, creative and civilised Asia-Pacific community. A number of talks will be held during the forum and will focus on the IT application in smart agriculture and health, as well as transport, human resources development and public services. Initiated in 1984, the summit aims to promote, encourage and foster relationships between its members while developing the computing industry in the region. Viet Nam hosted the event for the first time in 2003 with the theme "Digital Opportunities for Everyone." Japanese firms shift investment to Vietnam Vietnam has surpassed China as a prime overseas investment destination of Japanese business enterprises, according to a recent survey by Teikoku Databank released on October 16. Teikoku Databank, a company specializing in collecting business information on companies in Japan reported 10.9% of 23,000 Japanese enterprises surveyed in September consider Vietnam the best investment destination abroad while the selection rate for China was just 6.9%. Japanese firms have a keen interest in such areas as interior decoration, garments and textiles, information and technology in Vietnam. They chose Vietnam primarily due to low costs and its highly skilled young labour force. The survey shows Vietnam ranked fourth in the list of the safe markets in which Japanese business enterprises have attached the most importance to, trailing China, the US and Thailand. President of the Vietnam Chamber of Commerce and Industry (VCCI) Vu Tien Loc said  this is good news.  The most important thing for Vietnam is to maintain a positive image in the eyes of Japanese investors and foreign investors alike, Loc said. Recently, the Japan External Trade Organisation (JETRO) in Hanoi said  up to 30% of Japanese enterprises are investing abroad and regard Vietnam as the primary option. According to a JETRO report in February, Vietnam has become the top nation attracting Japanese investment, surpassing other rivals- Indonesia, Thailand and the Philippines. Up to 70 Japanese firms in Vietnam unveiled their business expansion plans in 2014.   Denmark helps Vietnam develop high quality pig breeding Denmark pledged to continue to support Vietnam in developing high quality pig breeding, Danish Ambassador to Vietnam John Nielsen said in a conference in Ho Chi Minh City on October 16. John Nielsen said Vietnam’s pig breeding sector improved significantly in recent years, but production and quality could not meet the demand, while Denmark’s enterprises could assist Vietnam with different pig varieties and equipment. Results on livestock imported from Denmark to Binh Thang and Thuy Phuong Livestock Breeding Centres showed a high genetic potential in terms of reproductive performance and growth. However, the centres also said not all the species would be able to be adapted to breeding conditions in Vietnam. An evaluation programme should be conducted to select the ideal species for breeding, suitable for Vietnam’s climate and breeding conditions. At the conference, Deputy Minister of Agriculture and Rural Development Vu Van Tam requested the centres and other relevant entities to continue to implement the project, and apply advanced Danish technology. According to the ministry, over the last 20 years, Denmark’s government has helped Vietnam develop its agriculture and rural areas with a capital of more than US$500 million via a number of programmes on irrigation, aquaculture, climate change, agriculture and rural development, some of which have been running for more than 10 years. Vietnam Association of Women Entrepreneurs makes debut A congress was held in Hanoi on October 19 to launch the Vietnam Association of Women Entrepreneurs (VAWE), with Deputy Minister of Industry and Trade Ho Thi Kim Thoa elected as the organisation’s first President. The VAWE aims to improve the capacities and roles of businesswomen in sustainable development in Vietnam, providing a forum for them to share their experience and enhance their professional knowledge. It also protects the legitimate interests of female entrepreneurs and members of the workforce. The association’s key task for its first term from 2014-2019 is to become a platform that connects businesswomen in all economic sectors and inspires them to undertake maximum efforts in their fields of work to contribute to national development. It will also serve as a bridge between females in the business community and Government agencies, with a view to informing socio-economic development policies. Speaking at the event, Deputy Prime Minister Nguyen Xuan Phuc appreciated the great contributions made by Vietnamese women and female entrepreneurs in particular to the national building and development. The Party and State continuously strives to enhance the female business community which plays an important role in modernisation and industrialisation, he said. He expressed his hope that the foundation of VAWE would help businesswomen improve their capacities and skills to contribute to socio-economic development and social equality. The Government official called upon relevant ministries and sectors to research and develop policies that support both male and female entrepreneurs in running their businesses effectively.- Vietnam exports 4.9 million tonnes of rice Vietnam has exported more than 139 tonnes of rice during the first two weeks of October, bringing the total rice export volume so far this year to 4.9 million tonnes, generating more than 2.1 billion USD in value, according to the Vietnam Food Association (VFA). The price for rice in October is 458.35 USD per tonne, a slight increase from 439.11 USD per tonne in September. Without Government interventions to increase temporary rice stocks, the price remained high due to the large volume of rice exported to China via border gates. Vietnam expects to produce 25.48 million tonnes of paddy for all of 2014, of which over 17 million tonnes of paddy, equivalent to 8.5 tonnes of rice, will be shipped abroad.- Lang Son’s anise export expected to increase Lang Son’s anise export volume reached about 1,300 tonnes in the first nine months of 2014, the Vietnam Economic News reported. According to the provincial Department of Industry and Trade, the export volume by the year’s end is expected to reach more than 2,000 tonnes, up about 700 tonnes compared with 2013. Vietnam has become one of the world’s two biggest star anise producers. Anise trees are mainly grown in the northern provinces of Quang Ninh, Cao Bang and Bac Can but the most famous region for growing this tree is Lang Son. Anise tree has long been a strategic product for Lang Son and the province’s star anise products built its own brand name as it registered geographical indication in 2007. Anise has been used as a spice and medicine for thousands of years in Vietnam and China. The anise fruit and attar are also attractive for food processing (aperitif alcohol, soft drinks and confectionaries). Its attractive taste has good effects for digestion and boosts appetite. In traditional medicine in Vietnam as well as in China, Japan and India, the anise is also used to cure stomachache, relieve pain and reduce heartburn, vomiting, arthritis, back pain, food poisoning and snake bites. According to statistics, in 2011 Lang Son only exported over 500 tonnes of dried star anise. The export volumes increased to 1,100 and 1,500 tonnes in 2012 and 2013 respectively and expected to reach about 2,000 tonnes this year. This is a good sign for anise growers in Lang Son. Not only increasing in volume, this year’s anise export prices also increased sharply compared to previous years. In 2012, dried anise export prices reached only 20,000 VND per kg, in 2013 it ranged from 40,000-48,000 VND per kg and topped 60,000 VND per kg in 2014. It is notable that the products are not only increasing in volume and prices but there are more countries taking interest in importing Lang Son’s products. Several years ago, anise export was mainly through informal channels to China, but now, a large amount of dried anise is exported through customs procedures to India, Malaysia and Indonesia. There are about 33,000ha of star anise production areas in Lang Son, of which 10,000 ha are in harvest time. The annual output of the local anise is from 6,000 to 7,000 tonnes. Vietcombank ranked first amongst Vietnamese listed companies The Bank for Foreign Trade of Vietnam (Vietcombank) came first in Forbes Vietnam’s top 50 of listed companies this year, its second year on the list. With over 31 trillion VND (over 1.47 billion USD) in revenue and 67.2 trillion VND (3.2 billion USD) in market capitalisation, the bank was praised for its number of business clients, its payment and trade services, and its strategies for the domestic retail market. In 2014, Vietcombank was also named Vietnam’s best retail bank by the Asian Banker magazine. It is the only Vietnamese bank included in the list of the world’s top 500 banks selected by The Banker magazine for a two-year period (2013-2014). Forbes Vietnam’s list honoured companies operating in 12 sectors that stand out for their excellent business performances and healthy profits. Along with Vietcombank, the Ho Chi Minh Securities Corporation and the Military Commercial Joint Stock Bank were also included in the financial sector. Other firms on the list include the Petrovietnam Technical Services Corporation, the Petrovietnam Gas Joint Stock Corporation, the Hoang Anh Gia Lai Group, the Vietnam Dairy Products Joint Stock Company (Vinamilk), and the Masan Group. Altogether, the 50 listed companies hold a market capitalisation of more than 741 trillion VND (nearly 35.3 billion USD), accounting for 65 percent of the entire market capitalisation based on the prices of the closing session of April 25, 2014. Forbes Vietnam is a monthly magazine published in Vietnamese for leading CEOs and entrepreneurs. The magazine plans to create more lists of outstanding companies and individuals on the Vietnamese market, including a list of the top 30 most successful individuals under 30. Source: VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR