BUSINESS IN BRIEF 16/8 Dong Nai’s export increases slightly in seven months The southern province of Dong Nai exported 8.7 billion USD worth of commodities in the first seven months of 2016, a year-on-year increase of 4.35 percent.  According to Deputy Director of the provincial Department of Industry and Trade Duong Minh Dung, the slow increase was attributable to world falling prices of a number of products and less orders for wood products from Japan and European markets.  The implementation of a number of free trade agreements lowered tariffs on several products, therefore reducing their export value, Dung added.  According to the provincial People’s Committee, while the export turnover of the State-owned enterprises climbed12.7 percent, those of the foreign direct investment (FDI) and private sectors increased 4.71 percent and 1.63 percent, respectively. Some exports that enjoyed higher year-on-year growth included coffee (24.7 percent), footwear (20.8 percent), computers and electronic spare parts (10.18 percent), and means of transport and spare parts (7.8 percent). Meanwhile, the province’s staples such as garment, fibre, wood and steel products saw a low export growth. Dong Nai’s export value is expected to grow faster in the rest of the year when businesses step up production to fill signed orders, helping the province fulfill its yearly export growth target of 11-12 percent.  Last year, the US was the leading market for provincial exporters, with total goods value shipped to the market reaching over 4 billion USD, while the import turnover from the country was 1 billion USD.  It was followed by Japan, with nearly 1.3 billion USD in export turnover, and 700 million USD in import value.  The province’s export and import turnovers to six ASEAN countries, including Indonesia, Thailand, Cambodia, the Philippines, Singapore and Malaysia, hit 1.5 billion USD and 600 million USD, respectively, with main commodities being textiles, footwear, computers, electronics, wood and wooden products. Ministry's fund lends SMEs 29 million USD A Ministry of Planning and Investment fund will finance small- and medium-sized enterprises (SMEs) with a total amount of 660 billion VND (29.3 million USD) this year, an official said.  Hoang Thi Hong, Director of the SME Development Fund, said that the funding is reserved for enterprises involved in innovative and creative activities, and those contributing to chains of production, processing and maintenance of agricultural, aquaculture and forestry products.  Companies involved in support industries for electronics, mechanics and sewage treatment, can also apply for funding.  Firms can borrow between 10 billion VND and 25 billion VND for 18-24 months and a preferential interest rate of 5 percent per year.  This is reportedly the first time the SME Development Fund lends money to enterprises since it was established in 2013 by a Government decision, with a charter capital of 2 trillion VND.  The fund mandated the Bank for Foreign Trade of Vietnam, Bank for Investment and Development of Vietnam, and Housing Development Bank to disburse the loans.  Official data indicates Vietnam has about 500,000 operating enterprises, of which SMEs account for 97 percent.  SMEs contribute some 46 percent to the national gross domestic product (GDP) and 31 percent of all tax revenues, while employing 60 percent of the country's workforce of more than 52.2 million people.  Demand for new investments, business expansion and start-ups is great. However, the majority of SMEs face difficulties in accessing loans as they cannot afford high interest rates and fail to meet the lending conditions of commercial banks, said Hong.  "In fact, organisations such as the World Bank, Asian Development Bank and Japan Bank for International Cooperation have many capital support programmes for enterprises. But it is not easy for companies to approach these capital sources," said Dao Thi Kim Ngan, chairwoman of the SMEs association of northern Hai Phong City.  Ngan told Dien dan Doanh nghiep (The Business Forum) that the 660 billion VND preferential package is too small compared with enterprises' demand for capital, suggesting business associations should establish more funds to better assist businesses.  Industry insiders said Vietnam's SME support activities have mainly concentrated on helping struggling firms, while programmes that promote sustained business development remaining few. VAMC can meet debt recovery target this year The Viet Nam Asset Management Company (VAMC) could meet a target to recover VND30 trillion (US$1.339 billion) of bad debts this year, VAMC Deputy General Director Nguyen Van Thang said.  Thang said that VAMC has so far this year recovered VND11 trillion of bad debts, or a third of the annual target, however, the recovery often increases sharply in the last months of the year. According to VAMC, it has bought VND251 trillion of bad debts from credit institutions since it was established in 2013. Of the total, roughly VND34 trillion was recovered. The recovery of bad debts has also increased year to year with VND5 trillion reported in 2014, VND12 trillion in 2015 and some VND30 trillion expected in 2016. According to the State Bank of Viet Nam's statistics, the bad debt ratio of Viet Nam's banking system, as of June 31, fell to 2.58 per cent from 2.78 per cent at the end of May. The decline came mainly from debtor repayments, moving the debts to the VAMC, risk provisions, and increasing outstanding credit. Total bad debts handled stood at VND59.71 trillion in the first half of this year, 14.55 per cent lower year-on-year, SBV reported, based on final figures from the VAMC and financial institutions. Of the total, debtors repaid VND30.97 trillion while VND8.88 trillion were moved to the VAMC, and financial institutions used VND7.24 trillion in risk provision to handle bad debts. The government has for the past few months issued some regulations related the debt trading market which is expected to boost debt handling. Ben Tre: Coconut growers, firms link up Cooperation between farmers and businesses has brought profit and stable output for coconut growers in the southern province of Ben Tre, which produces the most coconuts in Vietnam.  Linking businesses and farmers improved the quality and value of products made from coconut trees and boosted local economic development. Lu Van Dung, a farmer in Giong Trom district’s Hung Le commune, told Tuoi Tre (Youth) newspaper that cooperating with enterprises offered them a stable price for their crops.  Output was not stable when they sold their products to traders, he said.  “Farmers are forced to sell their products to traders at low prices if they have a bumper crop,” Dung told newspaper.  Sometimes, the price of coconut was only at 14,000-15,000 VND (0.62-0.67 USD) per dozen, he said.  This did not happen after he signed a contract with Ben Tre Import-Export Joint Stock Company three years ago.  Guaranteed, stable income was what convinced Dung to join the project with 1ha of his field.  “They provide the fertiliser, techniques, they cover the output. I don’t have to worry about prices plunging like with traders,” Dung said.  He added that the company committed to buy coconuts at 50,000 VND (2.2 USD) per dozen.  They also would pay more if the market price rose above the current floor price, Dung said.  Nguyen Van Khinh said he is happy to know he can count on a stable year-round price after signing with the company.  He asked the company to sign a long term deal instead of his current one year contract, Khinh said.  Besides offering farming advice and fertiliser, they also provide farmers with plant protection drugs, he added.  “The company provides about 12 million VND per ha each year to help farmers,” Khinh said.  The number of farmers co-operating with the company and other local businesses has increased sharply.  More than 1,120 households have joined the company’s project, covering an area of 897ha, with monthly output of 900,000 coconut fruits, said Ho Thanh Liem, the company’s technical manager.  According to Ben Tre Coconut Association, the province has more than 63,000ha of coconut trees, with a yield around 500 million fruits per year. However, coconut products for export are still limited, with dry coconut fruit and desiccated coconut the main exports.  Research from the Oil and Oil Plants Research Institute revealed that the coconut sector has faced many difficulties due to shortage of planning.  Sometimes, coconut processing plants lacked materials due to foreign traders buying coconuts from farmers at higher prices.  However, linking farmers and businesses should be strengthened to bring more profits for both, experts said.- Vingroup develops commercial complex in Ha Giang The real estate conglomerate Vingroup plans to build a trade complex in Ha Giang city, the northern mountainous province of Ha Giang, stated Secretary of the municipal Party Committee Tran Manh Loi.  Construction on the complex will begin in late September.  The complex will include a five-storey trade centre, a Vinmart supermarket, a Vinpro electronics store, an amusement zone, and commercial buildings, when it is put into use in late 2017.  It will create jobs for local labourers and contribute to the budget of the province.  Founded in Ukraine in 1993 under the name of Technocom, Vingroup has become Vietnam’s leading private sector real estate company. It comprises such subsidiaries as Vincom for high-end shopping centres, Vinhomes for residential properties, Vinpearl for tourism and recreational facilities and Vimec for hospitals. The firm was twice named the winner of the “Best Developer Vietnam” category at the annual South East Asia Property Awards in 2013 and 2014. Recently, together with Vinamilk, Vietcombank, FPT Corporation and Petrovietnam Gas Joint Stock Corporation, the group made it into the Nikkei Asian Review’s Asia 300 list, which names Asia’s most dynamic companies. Last year, Vingroup opened 10 shopping malls across the country and the ambitious company plans to make nearly 50 trading centres operational in 2016, aiming to nudge international-standard products and services, as well as modern consumption, ever closer to Vietnamese people. Association helps promote Vietnam-Russia trade ties Business and investment promotion activities arranged by the Vietnamese Business Association in Russia (VBAR) have remarkably contributed to boosting economic and trade links between the two countries, heard a conference in Suzdan city, Vladimir Oblast, Russia on August 12. In his speech, VBAR Chairman Le Truong Son highlighted the association’s achievements as well as difficulties facing the organisation in the last year. Participants focused their discussions on future orientations and ways to further effectuate activities of the association. Russian is the leading priority partner of Vietnam not only in politics but also in trade, Lai Ngoc Doan from the Vietnamese Embassy in Russia said, hoping the VBAR would make greater contributions to strengthening the Vietnam–Russia Comprehensive Strategic Partnership. The same day, a roundtable meeting was organised to discuss possibilities to expand cooperation between Vietnamese enterprises and Vladimir Oblast’s counterparts. Members of the association introduced the Russian locality’s officials to their businesses’ strengths in the fields of textiles and garment, agriculture, industrial production and hypermarket chain. Meanwhile, local officials briefed Vietnamese firms on the locality’s economic potential and committed to creating the most favourable conditions for Vietnamese companies to invest in the locality. The VBAR is hoped to play an important role in boosting the Vietnam-Russia economic and trade ties in the time ahead, especially in the context that only one month, the free trade agreement between Vietnam and the Eurasian Economic Union officially takes effect.-VNA Japanese group seeks cooperation in HCM City Japan’s Forval Corporation wants to expand investment in Vietnam, especially in Ho Chi Minh City in tourism, education and health care. Chairman and CEO of the group Hideo Okubo expressed the wish at a meeting with Vice Chairman of the municipal People’s Committee Tran Vinh Tuyen on August 12. Okubo said the group is willing to help the city with training for tour guides and waiting staff at restaurants and hotels, adding that specific cooperation projects will be drafted in the coming time. Most of Forval’s partners are small- and medium-sized enterprises operating in the consultation field to support Japanese firms in making investments abroad, particularly within the Association of Southeast Asian Nations (ASEAN), he said. The corporation has advised many Japanese companies to invest in Vietnam, he said, adding that it has opened representative offices in Hanoi and HCM City and cooperated with Vietnamese businesses in other cities and provinces. Tuyen hailed Forval’s desire to invest in personnel training in tourism, education and health care, which matches the city’s demand. HCM City’s current tourism staff have yet to become fully professional, hence the city hopes to partner with the Japanese group to improve the quality of human resources in this field, he added. The southern metropolis also hopes to have modern technological equipment and smart management processes to take better care of public health, he noted. He proposed that the corporation persuades more Japanese businesses to run investments and support HCM City to grow vigorously, confirming that local authorities will create the optimal conditions for entrepreneurs to do business efficiently. Transport connectivity crucial to southern key economic zone The council of the southern key economic zone for the 2015-2016 tenure convened a conference in Ho Chi Minh City on August 12 to discuss further upgrading transport and regional connectivity.  Authorities of localities in the southern key economic zone shared the view that transport routes such as the Ho Chi Minh City – Trung Luong, and Ho Chi Minh City – Long Thanh – Dau Giay highways, which have been put into operation, have contributed to increasing trade and travel between Ho Chi Minh City and regional localities.  They agreed to build new financial and budget mechanisms in order to develop Ho Chi Minh City into a financial hub for the country and Southeast Asia, as well as consider launching a regional investment fund to speed up regional transport connectivity.  Chairman of the HCM City People’s Committee Nguyen Thanh Phong, who is also Chairman of the council, said the city will host a conference to discuss specific solutions to regional transport infrastructure in the near future.  Deputy Transport Minister Nguyen Ngoc Dong suggested the council propose mechanisms on rallying resources and site clearance to strengthen transport connectivity.  In order to further uphold the zone’s role, Vice Chairman of the Binh Duong provincial People’s Committee Mai Hung Dung called attention to transport, environment pollution and human resources training.  The southern key economic zone groups Ho Chi Minh City, Dong Nai, Ba Ria-Vung Tau, Binh Duong, Binh Phuoc, Tay Ninh, Long An and Tien Giang provinces.  Accounting for 8 percent of the country’s area and 17 percent of the nation’s population, the zone contributes 60 percent of the State budget and absorbing more than 50 percent of the country’s total foreign direct investment.  In 2011-2014, regional growth hit 10.2 percent, while the country overall reached 5.7 percent.  The region’s economic structure is shifting to services rather than agro-forestry-fisheries, industry and construction. The investment climate has been improving. Banking system takes action to assist businesses Supporting businesses is among the focal tasks of the banking system from now to 2020, said Deputy Governor of the State Bank of Vietnam (SBV) Dao Minh Tu.  He and bankers across Vietnam had a teleconference on August 12 on enforcing the Government’s Resolution 19-2016/NQ-CP on tasks and solutions to improve the business climate, and Resolution 35/NQ-CP on supporting and developing businesses until 2020.  In late June, the central bank issued an action plan on implementing the resolutions across the banking system, focusing on improving credit access for enterprises and assisting their development.  Nguyen Hoang Minh, Deputy Director of the SBV’s Ho Chi Minh City branch, said banks in the southern municipality have coordinated with local district People’s Committees to survey companies that want to get bank loans in order to provide help.  There haven’t been any firms complaining about obstacles to bank loans so far, he affirmed, adding that the SBV branch and commercial banks have considered fiduciary loans for companies that lack some conditions of eligibility, such as collateral, but have feasible business plans.  Minh added that though current lending interest rates are rather reasonable, businesses still want stable mid- and long-term rates, which have been ensured by some banks.  Khuc Van Hoa, Deputy General Director of Tien Phong Bank (TPBank), said as most small- and medium-sized enterprises have a collateral problem, his bank is ready to give loans, regardless of their collateral status, provided that they have an effective business plan.  However, one hindrance is that businesses’ internal strengths remain modest, making banks reluctant to provide loans, he said, asking for coordination between banks and ministries to promote companies’ capacity.  Meanwhile, SBV Deputy Governor Tu told banks to regularly overhaul their relevant policies to improve the business climate and assist enterprises, especially in simplifying administrative procedures.  Banks also need to offer reasonable loan interest rates, promote their own loan verification capacity, and diversify credit products to facilitate credit access for firms, he added. Tilapia exports set to shoot up in years ahead: VASEP Tilapia fish exports this year are forecast to surge by 32 percent against 2015 to 45 million USD, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).  The processing and export of the freshwater fish species will continue thriving in the next few years, VASEP said, noting the upward trend over the past number of years.  Vietnam shipped tilapia to 68 markets in 2015, compared to only eight in 2005, with the US, Colombia and the EU the biggest importers.  About 23 percent of the country’s tilapia shipments are destined for the US at present, making Vietnam the third biggest tilapia exporter there (following China and China’s Taiwan) with a market share of 10 percent.  In the first half of 2016, more than 2 million USD worth of tilapia was exported to the US, about three times the figure during the same period last year. Meanwhile, tilapia currently ranks fourth among the 10 favourite aquatic products in the US.  In Colombia, Vietnam is the top tilapia supplier when it has gained a 53 – 63 percent market share.  The EU, Africa and South America are also potential destinations for Vietnam’s tilapia, VASEP said, noting total overseas shipments of this species between January and June increased by almost eightfold from a year earlier to nearly 14 million USD.  Although tilapia hasn’t made up a considerable proportion in Vietnam’s aquatic exports, it boasts huge potential for both farming and sale.  Nguyen Ba Son from the Directorate of Fisheries said by the end of last year, tilapia had been raised on more than 25,700ha of water surface nationwide, mostly in northern lowland and southwestern provinces, with a total output of 187,000 tonnes.  The fish is becoming a key product of the fisheries sector as domestic consumption and export demand for this species is large. Meanwhile, there are only a few diseases associated with tilapia, which is also not choosy about food and inexpensive to produce. The river and lake systems – tilapia’s habitat – covers right across Vietnam, he said.  The Ministry of Agriculture and Rural Development targets the production of 300,000 tonnes of tilapia a year by 2020, about 50 – 60 percent of which will qualify for export. It has also issued guidance on applying VietGAP standards in tilapia farming to ensure quality.  Vietnam is forming four concentrated tilapia breeding regions located in Quang Ninh province in the north, Dak Lak in the Central Highlands, and Kien Giang and Soc Trang in the Mekong Delta. Grasping rules of origin helps enterprises boost exports: experts Enterprises should master the rules of origin and non-tariff measures laid out in free trade agreements (FTAs) to make the most use of those deals to boost exports, heard a recent conference in Bien Hoa city, the southern province of Dong Nai.  Jointly organised by the European Trade Policy and Investment Support Project (EU-MUTRAP) and the provincial Department of Industry and Trade, the event aimed to support state management agencies and enterprises in grasping the rules of origin and non-tariff measures set in the EU-Vietnam FTA (EVFTA) and the Vietnam-the Republic of Korea FTA (VKFTA) in order to boost Vietnamese exports to these markets. At the conference, Trinh Thi Thu Hien, an official from the Ministry of Industry and Trade, clarified regulations on the rules of origin in the two agreements and guided how to apply the rules of origin code to see whether goods are entitled to the FTAs’ preferential tariff treatments. Regarding non-tariff measures, including those on food safety, animal and plant quarantine, technical barriers to trade (TBT) and customs, Deputy Director of the Vietnam Sanitary and Phytosanitary Notification Authority and Enquiry Point (SPS) under the Ministry of Agriculture and Rural Development Tran Viet Cuong said meeting TBT requirements is a prerequisite condition for Vietnamese exporters to access the EU and RoK markets and others. The FTAs will create a close framework on TBT, helping enhance transparency, stability and predictability which will bolster the investment activities of Vietnamese enterprises and other partners, he said. He added that enterprises should update information on the SPS requirements of participating FTA countries, especially ASEAN harmonisation standards, focusing on food quality and safety in accordance with international standards and export markets. Nguyen Viet Nga, Deputy Director of the Department of International Cooperation under Vietnam Customs, shared that commitments on customs procedures and cooperation will make customs management work more effective.  However, Vietnam should continue to improve the competency of officials in the sector as well as developing information and risk management systems, in order to make use of the advantages and opportunities brought about by the FTAs. Forum promotes fruit production-consumption link in Mekong Delta Promoting links between production and consumption of fruit in the Mekong Delta was the focus of discussion at a forum in Tien Giang province on August 12.  Le Hoang Anh from My Hung Hoa hamlet, My Xuong commune, Cao Lanh district, Dong Thap province has 1.2 hectares of mango trees, producing 15 tonnes per year.  He expressed his concern over unstable consumption and price, saying that these give difficulties to mango growers.  Farmer Vu Suoi from Hoa Tien commune, Vi Thanh city in Hau Giang province has six hectares of renowned-Cau Duc pineapples, producing between 90-120 tonnes of pineapples per year, generating some 100 million VND (4,500 USD) in profit.  According to Suoi, not much local fruit was sold to processing facilities. In peak harvest season, local farmers had to take their products to markets.  He suggested more fruit processing plants be built and connection between farmers and enterprises be enhanced to ensure stable production and consumption.  Nguyen Huu Dat from the Vietnam Fruit and Vegetable Association underlined the need for establishing cooperatives and applying technologies in producing fruit to ensure sustainable development of the sector in the context of international integration.  He also attached significance to the role of enterprises and relevant bodies in strengthening the link between production and consumption in order to boost the development of the fruit industry in the Mekong Delta.  Meanwhile, Duong Canh Dan from the Hoa Loi Cooperative in Hoa Ninh commune, Long Ho district, Vinh Long province stressed the need for producing high-quality fruit with sufficient quantity to meet the demand of enterprises.  He also called on support from the Government and enterprises for cooperatives in trade promotion, brand name building and consumption.  The Mekong Delta has over 307,000 hectares of orchards, accounting for 37.5 percent of the national area, producing some 3.5 million tonnes of fruit annually. The fruit trees are mostly grown in Tien Giang, Vinh Long, Hau Giang, Soc Trang and Ben Tre.  The region has 9,400 hectares of dragonfruit, over 150 hectares of mango, nearly 50 hectares of durian and 120 hectares of longan, meeting VietGAP or GlobalGAP standards.  In 2015, Vietnamese fruits were shipped to 60 nations and territories in the world, earning over 1.8 billion USD, eight times higher than that in 2005.  In the seven months of 2016, Vietnam exported nearly 1.4 billion USD worth of fruit, up 135.5 percent year-on-year. Developers ask EVN to pay for power grid The HCM City Real Estate Association on August 10 asked the local Electricity of Vietnam (EVN HCMC) branch to pay for building the electricity grid for projects being incurred by developers. Chairman of the association Le Hoang Chau said that under the Electricity Law 2004 and the law supplementing and amending a number of articles of the Electricity Law promulgated in 2012, power companies have the responsibility of building transformer stations and installing electricity meters for customers. Under the Law on Real Estate Business issued in 2014, project investors must complete infrastructure facilities before handing over houses to their clients.  Currently, property developers had to build all medium-voltage and low-voltage lines as well as transformer stations and connect power meters to the lines to distribute power to every apartment. On completion of the project, they had to pass on all the works to electricity companies without any payment, Chau said. He added that funds invested in the system supplying power for housing projects often accounted for 1 percent to 2 percent of total project investments. As a result, home buyers would have to pay more. “After the meeting with EVN HCMC, the association will send a document to the municipal People’s Committee and the Ministry of Industry and Trade, asking the electricity authorities to issue a payment mechanism applied for housing projects of which price is below 22 million VND (982 USD) per sq.m,” Chau said. Deputy General Director of the EVN HCMC Pham Quoc Bao said the company acknowledged the situation and would report it to the EVN. Bao said power prices would probably be affected if the electricity sector had to develop a system to distribute power to every apartment in every housing project. He said the sector might only accept paying the cost for projects of which profitability was ensured, meaning that people had to live there and consume electricity. For high-priced projects, in which nobody lived and no power was consumed, it was hard for the sector to incur the cost. A lawyer in HCM City said to thesaigontimes.vn that housing developers must complete all technical facilities, including electricity systems, within the scope of the project while power companies must supply electricity to the hedge of the projects and install power meters as requested by home buyers. Vinh Phuc diversifies investment promotion activities The northern province of Vinh Phuc’s efforts in attracting investors have recently been rewarded with an influx of foreign investment. The province has intensified investment promotion activities in promising markets as well as countries and territories with advanced science and technology. At the same time, work has been stepped up in localities to zone land for investment projects. With infrastructure construction in industrial areas, on-the-spot human resources development and administrative reform, Vinh Phuc has tackled difficulties facing businesses. The province paid special attention to luring science-technology intensive projects in the fields of mechanics, electronics, material construction, support industry and agriculture. Delegations of provincial officials have travelled to countries with developed industries, and cutting-edge science and technology to woo investors. These efforts paid off, as more than 220 foreign direct investment projects with combined registered capital of over 3.4 billion USD from 16 countries and territories have landed in the locality as of June 2016. Of the total, Japan is running 26 projects valued at more than 786 million USD in total. Chairman of the provincial People’s Committee Nguyen Van Tri said Vinh Phuc aims to become a centre of car and motorbike manufacturing. Conference seeks measures for better foreign aid management The coordination and management of foreign assistance poured into science and technology projects should be improved to ensure the effectiveness of the aid, heard a conference held by the Vietnam Union of Science and Technology Associations (VUSTA) on August 11.  According to VUSTA Vice President Nghiem Vu Khai, since early this year, the union received 52 non-governmental aid projects totalling 5 million USD, together with three official development assistance projects worth over 6 million USD.  However, many union’s agencies are facing difficulties in implementing the projects, including obstacles in document processing, verification, reporting, supervision and financial balancing.  Representatives from the associations pointed out that there remain limitations in the legal framework, policy system and administrative procedures relating to the implementation of the projects, together with the slow issuance of legal documents guiding the enforcement of laws.  At the same time, there is lack of a standard guideline on the procedure of building the programmes and projects, they said, adding that the engagement of Vietnam ’s authorised agencies in the designing of the programmes has been poor.  A number of regulations guiding the management of foreign assistance are not uniform and specific, leading to low responsibility of agencies, while the supervision and evaluation of the projects have not received adequate attention due to lack of evaluation tools and indications, they held.  Meanwhile, management officials at both State agencies and international organisations are not fully aware of the important legal regulations relating to Vietnam ’s foreign aid management.  State management agencies and sponsors need to share information more regularly, they said.  According to Khai, recommendations from participants will be forwarded to authorised agencies for the completion of legal documents and policies related to the coordination, management and using of foreign assistance.  He also highlighted the need for the science and technology associations to become more active and enhance their capacity in attracting, negotiating and signing foreign assistance agreements. Hi-tech agriculture project developed in Thua Thien-Hue The central province of Thua Thien-Hue has licenced a hi-tech agriculture production project in Huong Tra town and coastal areas in Hue city with an investment of 525 billion VND (23.5 million USD).  The project, invested in by the Vineco Company, uses Israeli technology with a production process that meets VietGAP and GlobalGAP standards.  Covering about 213 hectares, it comprises a greenhouse and a massive field of vegetables for domestic sale and export, a vegetable varieties production area, centres for management, training and technology transfer, a storage area and an irrigation system.  According to provincial People’s Committee Chairman Nguyen Van Cao, the project aims to produce safe vegetables for both domestic and foreign markets through the development of large-scale agriculture production with the application of advanced technology, an area that the province is focusing on.  It also helps attract domestic and foreign investment and human resources in high technology, contributing to creating jobs and increasing incomes for labourers, thus boosting local economic growth, he said.  As committed to by the investor, the main components of the project, including the greenhouse, infrastructure system and irrigation system, will be completed in December this year, while the management centre will be operational in the fourth quarter of 2017 and the centre for technology transfer will be finished in the fourth quarter of 2018. Rice-shrimp farming model needs zoning Rotating rice and shrimp farming on the same fields in the Mekong Delta has proven so economically effective and environmentally friendly that experts have urged the creation of zoning areas for the cutlivation model.   Under the model, which was created by farmers in the Delta’s coastal areas, farmers grow rice in the rainy season and allow saline water to enter fields to farm shrimp in the dry season. The model has a yield of 300-500kg of shrimp and 4-5 tonnes of paddy per hectare each year, providing profits of VNĐ35-50 million per ha (US$1,500–2,300) a year, according to the Directorate of Fisheries. Rice-shrimp fields also have 15-30 per cent higher profits than when only rice or shrimp is cultivated in areas where saline water intrusion occurs in the dry season. Shrimp bred in rice-shrimp fields also have less disease outbreaks as rice cultivation helps improve the soil. In addition, shrimp are farmed at a low density of three to five shrimp per sq.metre and are not given animal feed.  Speaking at a recent forum held in Bạc Liêu Province, Trần Văn Khởi, acting director of the National Agriculture Extension Centre, said the cultivation model needed less pesticides and antibiotics, thus ensuring cleaner produce and environmental protection.   However, irrigation systems as well as water supply and drainage canals are not well developed and other obstacles include a lack of quality rice seeds, shrimp fries and standard farming processes to improve yields, he said. Zoning for rice-shrimp farming would help reduce these problems, he said. Since the cultivation model uses rice fields to convert to other crops, support policies could be created for farmers, he said. Nguyễn Công Thành of the Minh Hải Fishery Research Sub-institute said proper attention should be paid to shrimp fries and rice seeds used in the model. “Shrimp fries should be quarantined before breeding and rice seeds should be suited to the conditions of localities. And the farming schedules of rice and shrimp must be strictly followed. If this is done, the model could be sustainable,” he said. Under the model, farmers breed black-tiger shrimp, white-legged shrimp or blue-legged prawn and cultivate several kinds of saline-resistant rice varieties that can grow in water with salt content of up to 0.5 per cent. All of these rice varieties have a high yield.   Nguyễn Văn Hoà, deputy head of the Ministry of Agriculture and Rural Development’s Plant Cultivation Development, said: “The Plant Cultivation Development and the National Seed Centre are researching new rice varieties resistant to saline water and suited to the rice-shrimp farming model.” The Cửu Long Delta Rice Research Institute has created 11 new rice varieties that can grow in saline water with a salt content of 0.2-0.6 per cent. The varieties have a yield between 5-9 tonnes per ha. This year, the delta’s area under the shrimp-rice farming model has increased to about 153,000ha, up 2.5 times against 2000, according to the Directorate of Fisheries. The coastal provinces of Kiên Giang, Cà Mau and Bạc Liêu have the largest areas of rice-shrimp farming in the Delta. Hoà said the area under shrimp-rice farming in the Delta was expected to increase to 200,000ha by 2020. “Areas that have potential for rice-shrimp farming should be zoned. Programmes and investment projects for rice-shrimp farming and environmental evaluation should be built,” he said. Phan Thanh Lâm of the Institute of Aquaculture No 2 said rice-shrimp farming in the delta was an open farming model as most farming conditions depend on the region’s weather and climate conditions. “To reduce risk of saltwater intrusion and be effective, proper attention should be paid to implementation, cultivation schedules, improvement of fields, water pumping systems and community-based management models,” he said. The community-based management model of rice-shrimp farming, also known as a large-scale rice-shrimp field, is implemented in several delta provinces. In 2014, the National Agriculture Extension Centre chose 25 households in Kiên Giang Province’s An Biên District whose adjoining fields with a total area of 42ha rotated shrimp and rice cultivation on the same schedule and process, managed by the community. Participating households were paid 60 per cent of shrimp fry costs and 30 per cent of input materials and shrimp food costs. The profits from shrimp and rice cultivation of the households totalled VNĐ56.8 million ($2,500) per ha, according to the province’s Agriculture and Fishery Extension Centre. Last year, 23 households with 40ha of adjoining fields in Kiên Giang’s An Minh District begun participating in this model and earned profits of about VNĐ30 million per ha each year. The National Agriculture Extension Centre has also implemented this model in Cà Mau, Bạc Liêu and Sóc Trăng provinces, attracting the participation of a total of 190 households with a combined area of 190ha. Youth are partners to achieve development goals: experts The Ministry of Home Affairs and the United Nations in Việt Nam on August 12 held a youth event with the theme “Vietnamese Youth: Partners in achieving the sustainable development goals” in Hà Nội. The event was based on the visions of five young leaders, as representatives of the 25 million young people in the country, and face-to-face dialogues with leaders of youth-relevant ministries and the Youth Union. There was also a youth market where young people displayed photos and videos that reflect their points of view on Sustainable Development Goals (SDGs). Vulnerable groups and young entrepreneurs brought products such as handicrafts, innovative technologies and apps. The 17 SDGs with a total of 169 targets were adopted in 2015. As many as 65 out of the 169 SDG targets explicitly or implicitly refer to young people. Pratibha Mehta, United Nations Resident Coordinator in Việt Nam, said, “We can only achieve these goals if young people can actively and meaningfully participate in development processes as drivers of change and leaders of our future.” “Here in Việt Nam, the SDGs must be everyone’s business, especially young people,” she said. On International Youth Day, the Ministry of Home Affairs and the United Nations in Việt Nam call on all stakeholders to make sure that young people are listened to and empowered to play a key role in the national effort to achieve the SDGs. Deputy Minister of Home Affairs Nguyễn Trọng Thừa said, “We believe that young people must play a key role in working to achieve the SDGs.” “A strong partnership between young people and all other stakeholders will be vital so that young people’s challenges can be addressed, their contributions recognised, and to ensure that they are included at all levels of decision-making,” he said. Việt Nam is currently experiencing a golden population period, recording the highest proportion of young people in the country’s history. There are more than 25 million people aged between 16 and 30, more than a quarter of the total population, according to the 2009 census. New aid project to support women in northwestern region The Australian Government will provide A$2.5 million (US$1.9 million) for three international NGOs - SNV, Oxfam and CARE International – to support women in the northwestern provinces of Lào Cai and Bắc Kạn. The funds will be used for the Women’s Economic Empowerment through Agriculture Value Chain Enhancement (WEAVE) project to be run until 2019, a press release said today. WEAVE will support more than 1,800 women and men in Lào Cai and Bắc Kạn to improve their livelihoods. It will support women farmers and co-operatives to strengthen their skills in marketing, financial literacy, business planning, negotiation, and legal matters. “Gender equality and women’s empowerment are top priorities in Australia, as well as in our foreign policy, economic diplomacy and overseas aid programme”, said Australia’s Ambassador for Women and Girls, Natasha Stott Despoja during her first three-day visit to the country as Ambassador for Women and Girls. Despoja’s role is to promote Australia’s commitment to gender equality and women’s empowerment. During her three-day visit to Hà Nội and HCM City, Despoja is meeting a range of organisations and individuals who are working to tackle gender inequality and promote women’s empowerment. Their work corresponds with the three priorities in Australia’s Strategy for Gender Equality, which are to enhance women’s voices in decision making and leadership, promote women’s economic empowerment, and end violence against women, according to the press release from Australian Embassy. “No country in the world has fully solved gender inequality yet,” said Despoja. “I am here to share Australia’s challenges and lessons in tackling the issues that face women and girls, as well as to learn about Việt Nam’s progress in striving for greater gender equality.” VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VET/VIR