BUSINESS IN BRIEF 15/9 Vietnam introduces food products at WorldFood Moscow 2016   Twelve Vietnamese enterprises are introducing locally-made food products to the WorldFood Moscow 2016 International Expo which is underway at the ExpoCentre in Moscow, Russia from September 12-15.  Vietnamese booths display a wide range of items, from frozen and canned food to farm products and fresh fruits under the theme of “Vietnamese agriproducts: unique, clean and safe”.  Hoang Van Du, Deputy Director of the Agricultural Trade Promotion Centre under the Ministry of Agriculture and Rural Development ( MARD ), said the expo is a good chance for Vietnamese enterprises to introduce their products to countries in the Eurasian Economic Union.  According to Du, in the context of Russia still imposing a ban to import food from many traditional markets, Vietnamese companies now have a good opportunity to expand their Russian market, which has a purchasing power of 146 million people.  WorldFood Moscow is an annual event and this year it attracted the participation of over 1,500 companies from 62 countries around the world. Hanoi to host largest-ever workshop on startup The Hanoi People’s Committee will join hand with the Israeli Embassy and FPT Group to organise a workshop on startup on September 21. More than 200 delegates from the Government, ministries, centrally-run agencies, Hanoi authorities, foreign embassies, international organisations, universities, research institutes, business associations, investment funds and start-up groups are expected to join the event, making it the largest of its kind in the capital city. The information was announced by Director of the municipal Department of Information and Communications Phan Lan Tu at a press conference in Hanoi on September 13. Tu unveiled that Israeli experts will share experience in creating an innovative startup ecosystem at both macro and micro levels and propose action plans to build the startup ecosystem in Vietnam. The workshop will also seek ways to step up economic, scientific, trade and investment cooperation between the two countries, he noted. A cooperation programme between the Hanoi Business Incubator, the Vietnam Innovative Start-up Accelerator programme and Israel partners is due to be signed on this occasion. Nearly 100 car models on display at Vietnam Motor Show in Hanoi Nearly 100 models from 12 car brands of the Vietnam Automobile Manufacturers’ Association (VAMA) will appear at the Vietnam Motor Show 2016 in Hanoi from October 5-9. Chairman of the VAMA Yoshihisa Maruta revealed the information at a press conference in Hanoi on September 13. The event, the 12th of its kind, will return to Hanoi after three consecutive shows in Ho Chi Minh City. Themed “Accelerate to Celebrate”, the expo offers a good chance for customers to explore new brands manufactured with the state-of-the-art technologies. Chevrolet will bring to the show new sporty cars from the US , while Ford Viet Nam will wow visitors with a variety of small-size and medium-size cars and sporty ones. In addition to familiar models, Honda Viet Nam plans to introduce hi-end imported cars and new-generation ones. The motor show will also host more than 80 pavilions selling spare parts, along with a special Roadshow and a workshop on auto technology. VAMA expects that automobile sales for 2016 wil reach 260,000 units, a year-on-year rise of 10 percent. Last year, Vietnam’s automobile market set a record with 245,000 units sold. TPP to help boost Vietnam-Mexico trade Trade between Vietnam and Mexico is expected to thrive once the Trans-Pacific Partnership (TPP) takes effect, heard a conference highlighting opportunities of bilateral cooperation in business, investment and services on September 13 in Hanoi.  According to Do Kim Lang, deputy head of the Trade Promotion Agency under the Ministry of Industry and Trade, Vietnam and Mexico signed the TPP together with 10 other countries in early 2016 with an aim of creating a free trade area in the Pacific region.  Under their commitments, Vietnam will remove more than 65 percent of its import taxes immediately and 98 percent of the taxes in 10 years on Mexico’s goods, while Mexico will take out 72.2 percent of its taxes on Vietnam’s exports, he said, adding that this is a strong boost to the two countries’ trade after 2018.  Meanwhile, Mexican Ambassador to Vietnam Sara Valdes Bolano held that the TPP, as well as other free trade agreements in the region, will create favourable conditions for businesses of both sides to join the global value chain through strengthening business and investment cooperation, enhancing the quality and value of products, and improving competitiveness.  Statistics from the Ministry of Industry and Trade showed that Mexico is currently one of the leading trade partners of Vietnam in America . Mexico also serves as a gateway for Vietnam to enter the Latin-American market.  According to the Vietnam General Department of Customs, two-way trade between Vietnam and Mexico in the first seven months of 2016 was 1.29 billion USD, with Vietnam’s exports worth 1.33 billion USD.  Vietnam’s staples like coffee, ago-fishery products, electronics, spare parts, leather and garments see great potential for expanding their markets in Mexico once the TPP enters into force.  Arturo Perez Behr, Chairman of the National Association of Importers and Exporters of Mexico (ANITERM), said that right after the TPP was signed on February 4 this year, the association launched additional 45 representative offices in countries worldwide, including Vietnam.  The offices aim to support enterprises in accessing trade opportunities in international markets, while helping Mexican firms improve their competitiveness and take advantages of the TPP.  The opening of the office in Vietnam is also a step forward in trade ties between the two countries, he said, asserting that Vietnamese businesses will enjoy more chances to enter the promising Mexican market. Kia Morning is highest selling vehicle in August Small sedan Kia Morning, a brand name of local carmaker Truong Hai Automobile JSC (Thaco), was the highest selling vehicle in August. The carmaker achieved this target for the first time, according to a report from the Vietnam Automobile Manufacturers' Association. More than 1,300 Kia Morning models were sold last month. With the price ranging from VND330 million to VND397 million, the middle-ranking vehicle was the choice of several Vietnamese customers because of its reasonable price. Ranking second was the Toyota Innova with 1,035 units sold, of which 935 units were the new generation Innova 2016. In Viet Nam, the vehicle is priced at some VND793 million and above for version 2.0E and VND995 million for version 2.0V. The remaining top five best-selling vehicles were Ford Ranger, Marda CX-5 and Toyota Fortuner, with 1,016, 1,012 and 931 units, respectively. VAMA reported that some 23,540 units were sold in the Vietnamese market, a decline of 17 per cent compared with the previous month but a year-on-year increase of 29 per cent.  VN’s tuna exports up slightly Việt Nam’s tuna exports increased by 0.9 per cent in the first seven month of the year to reach more than US$266 million, according to the Việt Nam Association of Seafood Producers and Exporters (Vasep). The majority of the exports were fresh and frozen tuna, but compared to the same period last year, exports of these categories fell by 9.6 per cent, while exports of processed tuna products went up by nearly 12 per cent. The exports went to 87 markets, with the US being the largest buyer, followed by the EU, ASEAN, and Japan, the association said. Tuna exports to the US were worth $111.6 million, a year-on-year increase of 0.5 per cent. Exports of fresh and frozen tuna accounted for more than $76.8 million of total exports to the US, up nearly 11 per cent over the same period last year, while exports of processed tuna (code HS 16) decreased by over 16 per cent. Exports to ASEAN member countries increased by 24.9 per cent from the same period last year, but exports to the EU and Japan were down by 8.2 per cent and 10.6 per cent. In the case of Japan, while fresh and frozen tuna shipments were down by 26.5 per cent, exports of processed tuna enjoyed good growth of 10 per cent. The association forecasts that tuna exports to the US, ASEAN countries and China will continue to increase. Lê Hằng, deputy director of VASEP.PRO, said Việt Nam’s tuna products, especially processed ones, were subject to high tariffs in many import markets. An ongoing trial project for tuna fishing, buying, processing, and consumption is expected to help improve quality and competitiveness, she said. As a developed country in the Middle East region, Israel is a potential market for Vietnamese tuna products, according to the Africa, Southwest Asia MarketDepartment under the Ministry of Industry and Trade. Tuna exports to the market in the first half of the year were worth $8.6 million, a year-on-year increase of over 4 per cent. According to VASEP, Israel is one of eight key export markets of Vietnamese tuna. With a population with an obesity rate at over 20 per cent, the Israel Ministry of Health has recommended that residents consume tuna as a supplement of healthy omega 3-fatty acid. Currently, exports of frozen tuna fillet (HS0304 code) to the market accounted for approximately 60 per cent, and processed tuna (HS16 code) about 30 per cent, it said. According to UN Comtrade statistics, Thailand is the largest tuna exporter to Israel, with an export value of $18.6 million last year. Israel’s tuna imports from China decreased from over $40 million in 2013 to $13.9 million last year. Last year, Việt Nam earned $15.5 million from tuna exports to Israel. The department said there is still more room for Việt Nam to boost tuna exports to the market. It suggested local firms should focus more on improving their steaming, drying and canning technologies to enhance exports of processed products. Steel project opens in Da Nang The Hoa Phat Group has opened its second steel pipe plant in the Da Nang’s Hoa Khanh Industrial Zone. The new plant has capacity of 120,000 tonnes per year, fulfilling demand for the central and central highlands market and exports to Laos and Cambodia. The group said the two plants, built on 9.3ha with total investment of VND260 billion (US$11.6 million), and three other plants would help the group increase its total capacity to 1 million tonnes per year and 30 per cent of Việt Nam market share in 2020.  Last year, the group earned revenue of VND7 trillion ($311 million) to contribute VND650 billion ($29 million) to the State budget, holding a 25 per cent share of Việt Nam’s steel market. The local steel producer has built six plants in Hung Yen, Binh Duong, Long An and Da Nang with total capacity of 500,000 tonnes. Vietnam firms must meet rural demand According to the Ministry of Industry and Trade, Vietnamese firms would benefit greatly from expanding distribution systems for fast-moving consumer goods (FMCG) in rural markets. According to Phan Chi Dung, the Ministry’s Director of Light Industry Department, Vietnamese firms focus predominately on urban markets, even though almost 70% of the population lives in rural areas with huge demands for FMCG such as processed foods, toiletries, soft drinks, and other consumables. A report about FMCG by market research firm Nielsen published late last month revealed that 54% of FMCG revenues came from rural markets, a modest amount compared to the portion of the population living there. FMCG sale growth hit three-year high at 6.3% in the second quarter of this year in six major cities and provinces, including Hanoi, Ho Chi Minh City, Haiphong, Can Tho, Nha Trang and Danang, but nation-wide FMCG sale saw slowdown, largely due to climate change impacts and worries over quality of several beverage products, the report found. In a country where over half the population is under 30 years old, total consumer expenses are anticipated to double by 2020, which would accelerate sales of FMCG with an average growth of 20%, even higher than India and China. Vietnam’s FMCG market is expected to touch US$140 billion in revenue this year. However, amid rapid integration with trade liberalization, competition with foreign rivals in FMCG market is growing fierce, according to the Ministry’s Domestic Market Department. Made-in-Thailand and made-in-China products are gaining traction in the local market, while foreign giant retailers from Japan, the Republic of Korea and Thailand are rapidly expanding in Vietnam Developing the distribution system to expand in rural markets is essential for local firms, the department said, adding that Vietnamese firms also must enhance product quality and build brand confidence in order to compete with imported products. Global consumer reporting company Kantar Worldpane published a story on September 5 that the value share of e-commerce within FMCG is up 3.9% globally but only up 0.2% in Vietnam. The company predicted that e-commerce in Vietnam will grow more than fivefold by 2020—given widespread smartphones usage in Vietnam and increasing demand for consumer convenience—and the opportunity is there for someone to jump in and take the lead. “Yes, e-commerce is tomorrow’s reality of consumer goods products, and the offers as well as the players are going to structure themselves quickly,” Fabrice Carrasco, managing director Kantar Worldpanel Vietnam, Indonesia and the Philippines, wrote in the report. There are opportunities for current physical retail giants to move their offerings online, although Fabrice also added that the need could be met by online retail giants like Lazada or Amazon working with manufacturers to list more FMCG online. Fabrice wrote that another possibility is the rise of independent third party companies who actually don’t own any stores or goods. The business model of companies such as Chopp or MarketOi, who are already operating in Vietnam, is mainly based on a delivery service, acting as a middle man between the consumer and the traditional offline modern trade. FDI keeps sights on Ho Chi Minh City realty Foreign direct investment in Ho Chi Minh City’s real estate sector continues to rise across residential, office, and retail segments. In the first eight months of 2016, the city’s real estate sector attracted the most foreign direct investment, with capital of $318.9 million so far disbursed. Singapore is the top investor in the local real estate sector, followed by Japan and Korea. Some notable investments pledged include the $226 million real estate project named Midtown by Cayman Islands and $6 billion Saigon Peninsula project by Pavilion Group, Genting Malaysia Berhad, and Vietnamese partner Van Thinh Phat. Trang Le, manager of research at Jones Lang LaSalle Vietnam (JLL), told VIR that there is increased investment sentiment among foreign investors due to customer confidence and affordability of homebuyers, especially local cash-rich people. In a recent report released by JLL Vietnam, Ho Chi Minh City’s residential supply is predicted to grow by 74 per cent over the next three years, but the market will be able to absorb it. The main reason is that demand driven by owner-occupation buyers will continue to be considerable, especially in low to mid-end projects. Buyers with investment purposes will still remain at good levels on the back of improving economic fundamentals. Besides housing property, foreign investment funds continue to seek opportunities in office assets in prime Vietnamese locations, in particular in Ho Chi Minh City, as they expect a high growth of capital value and yield compression. Ho Chi Minh City has 1.7 million square metres of office space, which is less than half that of Jakarta, Kuala Lumpur, Bangkok, and Manila. Demand for office space is forecast to grow by 8-10 per cent annually as the economy develops. This provides a great opportunity for developers to acquire sites to build more office space in the city. Meanwhile, Ho Chi Minh City’s retail market remains attractive to foreign investors who would like to tap into a growing population of 90 million people and an expanding middle-class. Last week, South Korea’s largest discount chain Emart announced that it would ink a memorandum of understanding (MoU) with the city to invest $200 million in the area. The MoU established a strategic partnership between the two parties to build giant retail outlets, supermarkets, and various other types of commercial facilities, according to Yonhap News Agency. According to Kim Seong-young, who heads new businesses for E-Mart, the group expects to increase investment in Ho Chi Minh City, Vietnam’s economic centre, in various forms through this MoU. Ho Chi Minh City will be the base of its efforts to enlarge its Vietnamese market share. “The ratification of the free trade agreements will increase foreign investors’ interest into Vietnam over the year. The fundamentals of this market are exceptional, with 60 per cent of the population under the age of 35, which is boosting interest regionally in the domestic fast-moving consumer goods sector. ASEAN Economic Community anticipation in late 2015 had Asia Pacific investors flocking to Vietnam,” said Ben Gray, director of capital markets for C&W Vietnam. He further noted that regional investors in real estate are seeking stabilised income-producing assets to acquire in Vietnam.  They continue to look to improve their portfolio returns and this is translating into increased interest into core products in the housing, office, retail, industrial, and hospitality sectors. SSI & Daiwa open new PE fund The DAIWA-SSIAM Vietnam Growth Fund II L.P (Daiwa-SSIAM II), a new private equity fund with committed capital of some $39.4 million, has been formed by two asset management companies from Vietnam and Japan. The fund's manager, SSI Asset Management (SSIAM), is a fully-owned subsidiary of Saigon Securities Inc. (SSI) and the Daiwa Corporate Investment Co. Ltd (Daiwa). “The calling for investment stage has ended, with total committed capital of $39.4 million attracted,” according to an SSI press release on September 12. The new fund’s investment focus is on particular sectors such as manufacturing, services, fast-moving consumer goods (FMCG), agriculture, and seafood, which benefit from Vietnam’s young population structure, rising middle class, and deeper international integration. The fund may also invest in State-owned enterprises (SOEs) as they divest. It has an eight-year life span. Daiwa-SSIAM II will take 10-30 per cent ownership and seats on the Board of Management at investee organizations.    The new fund is open-based and has been launched at a time when Vietnam’s economic situation is positive. “Vietnam’s economy is maintaining its growth, FDI is increasing, interest rates and exchange rates are stable, inflation is being well managed, foreign reserves are sufficient, and consumption demand and living standards are rising over time,” according to SSI. SSIAM believes Vietnam’s business situation is improving. “Vietnam’s businesses still have huge space to develop in both domestic and export market thanks to free trade agreements such as the TPP,” SSIAM’s analyst said.    Daiwa-SSIAM II is the second private equity fund to be opened by the two asset management companies.    In October 2009 the DSCAP-SSIAM Vietnam Growth Investment Fund LLC was created, with full divestment completed last year. In the first half of 2016 the State Securities Commission (SSI) licensed one member-owned fund, one closed-end fund, and one open-ended fund. Vietnam now has 29 operating funds, of which 21 are equity funds (18 open-ended funds, two exchange-traded funds (ETF), and one closed-ended fund), and eight member-owned funds.   Dream House aims for 51% of Binh Duong Mineral The Dream House Investment Corporation (DRH) will announce an increase to its ownership in the Binh Duong Mineral and Construction Company (KSB) to 51 per cent at the upcoming extraordinary shareholders meeting on September 22. Binh Duong has attracted much attention from investors in recent times, since the State Capital Investment Corporation (SCIC) completely divested its holding of 11.7 million shares in February. DRH will hold the extraordinary shareholders meeting to vote on an additional board member, submit a plan on capitalization and, most importantly, submit the plan on turning KSB into a subsidiary. The Ho Chi Minh City-based real estate organization was among those who acquired SCIC’s shares in February. On July 27 its management board announced it would increase its ownership in KSB to more than 51 per cent. DRH currently holds 5.22 million KSB shares, or 22.3 per cent of charter capital, after acquiring a further 500,000 shares during the trading session on August 29. At its August 19 meeting with investors, KSB’s Board of Directors revealed that, based on signed contracts to date, in the first nine months of 2016 operating revenue was estimated at VND638 billion ($28.6 million), equal to 75 per cent of the annual plan, with after-tax profit of VND142 billion ($6.36 million), or 99 per cent of the annual plan. Along with its impressive financial results, the information that DRH plans to increase its ownership in KSB to 51 per cent pushed its share price up to VND90,500 ($4.06) on July 12. An incident involving KSB’s Chairman, Mr. Vo Truong Thanh, then dragged the share price down to VND55,000 ($2.47) on August 15 and it now trades at VND70,500 ($3.17). Mr. Thanh, founder of the Truong Thanh Furniture Company (TTF), was dismissed from his duties as Chairman of KSB’s Board on July 20 just three months after being elected. No reason for the dismissal has been disclosed. Mr. Thanh sold all of his 600,000 shares in KSB from June 30 to July 7. KSB’s Dat Cuoc Industrial Zone project has completed all necessary procedures, including detailed planning and fundamental design and is currently in the process of negotiating site compensation of VND400 billion ($18 million) for the 136 ha area. As at July 30 it had attracted 40 projects on nearly 60 ha. Another KSB project, the Binh Duc Tien residential zone on 2.6 ha with 68 apartments is expected to complete infrastructure investment this month. KSB revealed that revenue gained from project sales totaled VND132 billion ($5.9 million) with pre-tax profit estimated at nearly VND50 billion ($2.2 million). However, the revenue and efficiency of these two projects are not to be reported in the business plan for 2016 and will only be accounted for when sales are completed. Over the next five years KSB will maximize productivity and efficiency at its existing stone pits and mineral mines. The company has set a target of revenue exceeding VND1 trillion ($44.8 million) in 2017 and continuing to increase in subsequent years. Daegu & HCMC strengthen investment opportunities The Ho Chi Minh City Planning and Investment Department, the Investment & Trade Promotion Center in collaboration with Consulate General of the Republic of Korea yesterday jointly celebrated the HCMC- Daegu business forum with the participation of the two nations’ enterprises.  Leaders witness a signing ceremony of cooperation between the two localities’ enterprise. Speaking at the forum, Deputy Chairman of the Ho Chi Minh City People’s Committee Le Van Khoa said: “The Korea-Vietnam Free Trade Agreement (FTA) came into effect on December, 2015 and opened new economic cooperative chance and is expected to bring two way turnover at US$ 70 billion by 2020. Until now, Korea is the third investors in the city with 1, 250 projects and total investment capital of US$ 4, 3 billion. Korean big groups like Samsung, Lotte, CJ, GS etc… have contributed many projects in the city Sharing with Daegu city’s enterprises, the deputy chairman said that the city wants to strengthen cooperation with Korea in the fields of infrastructure, supplier industry, high technology, humanity resource development and environment protection. He also pledged that the city will strive to ensure political- social stability, benefit protection for foreign investors as well as create the best conditions for foreign businesses in general and Korean enterprises in particular.   “The country and the city will continue creating cooperation & exchange programs via practical projects between the two nations”, stressed Mr. Le Van Khoa. Vice Mayor of Economic Affairs of Daegu city Mr Kim Yon Chang said that the Daegu is well-known as a hub for thread industry, tourist, health and culture. At present, around 7, 000 Vietnamese people is living and working in Daegu city; in parallel face, 250 Daegu city’s businesses are investing in Vietnam. On this occasion, Korean and HCMC enterprises signed Memorandum of Understanding in all fields. Particularly, the Investment & Trade Promotion Centre of Ho Chi Minh City (ITPC) and Daegu Global Center signed cooperation on trade & investment promotion, Vietnam Delicious Food Company and Ricco PAPA signed a concession agreement for Ricco PAPA in the city, Vietnam- Korea International Trade Company and S& P Company signed a provision contract for enterprises and Nhat Nam Company and Junjin M&M signed a machines cooperation. Vietnamese dragon fruit to access Australian market The Australian Government’s Department of Agriculture and Water Resources has prepared a draft report assessing Vietnam’s market access request to export fresh dragon fruit to Australia. According to a press release published by the Australian Embassy in Vietnam on September 13, the report proposes that the importation of fresh dragon fruit to Australia be permitted from all commercial production areas of Vietnam, subject to a range of biosecurity conditions. The report has been prepared following a review of scientific knowledge concerning pests and diseases of concern, technical discussions with the Plant Protection Division of the Ministry of Agriculture and Rural Development and an inspection of dragon fruit production areas in Vietnam by Australian government officials in June 2016. The report has been released for a 60 day comment period, which closes on November 14 this year. Thereafter, stakeholder comments will be considered and a final report will be prepared. It is expected that the risk analysis will be completed by the end of 2016. Vietnamese Prime Minister Nguyen Xuan Phuc emphasised the high priority of this market access request during a meeting with Australian Prime Minister Malcolm Turnbull in Vientiane last week. Last year, some 28 tonnes of fresh Vietnamese lychees were sold on the Australian market. The first batch arrived in the country in May 2015. Australia also completed risk assessment for Vietnamese mangos last November. Fruits and vegetables make new export impression Export turnover of fruits and vegetables saw a year-on-year surge of 130% in the first seven months, which was the highest rise out of agro-forestry-fishery exports, according to the Ministry of Agriculture and Rural Development (MARD). MARD Deputy Minister Le Quoc Doanh was quoted as saying that overseas shipment of fruits and gained impressive outcomes in January-August period and was forecast to hit US$ 2.5 billion in 2016, even outstrip rice, which was the biggest hard currency earner. There are wide doors for fruit and vegetable export as Viet Nam extremely attached importance to rice instead of fruits and vegetables. Fruit and vegetable exports expanded rapidly over the last ten years. Before 2005, Vietnamese fruits and vegetables were available at 36 foreign countries and territories with an export turnover of over US$ 235 million. By 2015, the number of export markets was 60 and export turnover touched over US$ 1.8 billion, up 123% against 2014 and 782.13% against 2005. Overseas shipment of fruits accounted for over 70% of the total export turnover. Export turnover of fruits and vegetables valued US$ 1.358 billion in the first seven months of 2016, up 135.5% against the same period last year. Vietnamese fruit and vegetable exports are facing the toughest challenge on plant quarantine. It takes at least one year, 3-4 years on average, or even ten years to get permissions on fruit import. Each country owns different climate conditions and has dissimilar plant mechanisms. Hence, countries set different technical barriers with a view to protecting their domestic cultivation, said Mr. Hoang Trung, Director of the Plant Protection Department under the MARD. In the period of deeply international integration, especially once the Trans-Pacific Partnership Agreement comes into effect, tariff duties will be one the decline and technical barriers like quarantine and food hygiene would be on the rise.  Fruit exports encounter price and food hygiene difficulties. A large number of 12 TPP signatories are “prissy” markets on fruit imports especially the U.S., Japan, Australia, and New Zealand. Ireland wants to sell beef to Vietnam Ireland has requested Vietnam to allow import of Irish beef, according to Irish Minister of State for Food, Forestry and Horticulture Andrew Doyle. Doyle said at a seminar in Hanoi last week that he had met Vietnamese Minister of Agriculture and Rural Development Nguyen Xuan Cuong to discuss agricultural matters including licensing import of Irish beef into the Southeast Asian country. Ireland will provide Vietnam’s competent authorities with documents on its beef processing system, veterinary and disease control management. Doyle told the seminar on Irish food that he hoped officials at Vietnam’s agriculture ministry would soon visit Ireland to check cow farming and beef processing. Doyle took part in the seminar as part of his visit to Vietnam. He led a delegation of more than 20 Irish firms and officials to look for business cooperation opportunities in the agricultural and food sectors. Last year, Ireland earned 3.5 billion euros (US$3.9 billion) from meat exports, including 2.4 billion euros from beef. It is now the world’s sixth biggest beef exporter with a presence in 70 markets. According to Ireland’s Ministry of State for Food, Forestry and Horticulture, exports of Irish farm products to Vietnam climbed from 35 million euros in 2013 to 40 million euros last year. Major exports were dairy products, pork, beverages, seafood and processed food. Vietnam has attracted more foreign companies in the agricultural and food sectors. Earlier, more than 30 Japanese firms in the agricultural and food sectors came to Vietnam to explore business opportunities. In recent years, many agricultural firms from Canada, New Zealand, the U.S. and other countries have come knocking. Experts said increasing concerns over unsafe and substandard food in Vietnam have encouraged more foreign enterprises to speed up their sales to this market. State financial reports may be publicized from 2018 From 2018, the Ministry of Finance and local governments would have to post State financial reports on their websites as a way to inform the public as required by a draft Government decree. The ministry has passed around the draft decree on State financial reports for relevant ministries and agencies to comment before it goes before the Government. Article 15 of the draft decree stipulates that people’s committees in provinces and cities are responsible for publicizing reports on their assets, debts, capital sources, collections, costs and cash flows. The Ministry of Finance should announce the same report at the State level.  According to the draft decree, local governments as well as the ministry must publicize reports on their websites while the ministry also has to publish print editions. The draft decree is to announce financial issues in accordance with regulations of the 2015 Accounting Law that requires State agencies to publicize budget collections and expenditures, financial funds, public debt, State capital in businesses, State assets and capital use. The finance ministry said in a document sent to the Government that publicizing State financial reports is essential. In other nations, such financial reports can be found on the Internet or in formal documents. The ministry said the National Assembly, State Audit of Vietnam and residents all want to look into State financial reports to check and monitor them. Besides, other countries and international organizations that provide aid to Vietnam also need information about this field.  If information about State finance is provided adequately, the State can borrow from foreign partners with favorable conditions about loan terms, interest rates and other matters.  In contrast, if foreign nations and organizations do not get necessary information, the State would find it hard to take out loans from them. At present, Vietnam has to issue sovereign bonds on international financial markets and must compete with rivals when doing this. According to the ministry, foreign countries and international financial organizations always ask Vietnam to give adequate information about State finances when they discuss aid programs for Vietnam. The International Monetary Fund and the World Bank said they are willing to support Vietnam to develop State accounting systems. Farming mechanization remains low Mechanization in the agricultural sector remains at relatively low levels, disabling farmers to make use of modern machinery and equipment to cut costs and raise incomes, officials and scientists have said. Farmers in the Mekong Delta have used more machinery in recent years, but only in the harvest phase, said Le Van Banh, head of the Department of Processing and Trade for Agro-Forestry-Fisheries Products and Salt Production under the Ministry of Agriculture and Rural Development. “If the delta had no combine harvester in 2006-2008, it now has 14,000, meeting 75% of the paddy harvest demand in the region,” Banh told a scientific conference held in Can Tho City last week, which focused on renovating farming methods. For other cultivation steps, the use of machinery is still scanty, he said. Farmers now use machinery to dry 46% of their paddies and dealt with the rest in the traditional way, which is to dry paddy under the sunlight. In other stages such as seeding, spraying and fertilizing, the ratio of machinery adoption only ranges between 20% and 45%, although input costs can be reduced significantly with mechanized farming practices. “The paddy planting machine will help farmers save 30-40 kilograms of seeds per hectare compared to the method of throwing seeds by hand. It will also help prevent paddies from being infected with golden snails as the seedlings cultivated by the machine have grown big enough, so snails cannot attack them,” Banh said. “The mechanized method is also suitable for cultivating paddy in areas vulnerable to drought and saltwater intrusion as it cuts the time for plants to grow on the field by 10-15 days,” he added. Pham Van Tan, deputy director of the Sub-Institute for Agricultural Engineering and Post-harvest Technology (SIAEP), said farmers should boost the use of machinery to increase their income and reduce their post-harvest losses, which stay at 12-14% at the moment. Tan also suggested farmers take advantage of machinery to produce byproducts, such as growing straw mushrooms, making husk firewood, and rice bran oil, which is extracted from the bran layer of the grain. Explaining the limited use of machinery in paddy fields, Banh said many rice farmers cultivate on small fields of only 0.3-0.5 hectares each. 8M seafood exports to hit $4.36 billion Vietnam’s seafood exports had earned nearly $4 billion in revenue this year as at mid-August, up 5 per cent year-on-year, according to Vietnam Customs. The figure for the first eight months is estimated at $4.36 billion, up 4 per cent year-on-year. From January to July seafood exports totaled $3.76 billion, an increase of 3.8 per cent compared to the same period last year. Sales of main products, however, saw only slight growth. Shrimp exports rose 4.6 per cent, pangasius (shark catfish) 4.1 per cent, tuna 0.9 per cent, and other finfish 7.2 per cent, while exports of mollusks fell 5.3 per cent and crab and other crustaceans 1.7 per cent against the same period last year. In July, shrimp exports reached $274 million, up 4 per cent year-on-year and from January to July have been estimated at $1.6 billion. The increases were driven by a climb in demand and global shrimp prices due to a slump in supply. The export value of white leg shrimp, which account for 59.7 per cent of all shrimp exports, increased 7.3 per cent in the first seven months while those of black tiger shrimp rose a mere 0.9 per cent over the same period last year. According to the Ministry of Agriculture and Rural Development (MARD), in the first half, due to unfavorable weather, output of brackish water shrimp in the Mekong Delta fell and raw shrimp prices rose as a result. Shrimp exports to the US, Vietnam’s largest import market, accounted for 22.4 per cent of export value and increased 16.3 per cent year-on-year from January to July. Import prices of shrimp in the U.S rose due to falling supply from exporters such as India, Indonesia, Ecuador, and Thailand. Import demand for black tiger shrimp went up as supply from India and Indonesia fell. India, the biggest supplier of shrimp to the US, is in trouble because of disease damaging output. The US Department of Commerce (DOC) also increased the average duty on India’s shrimp imports to 4.98 per cent from the previous 2.96 per cent, according to ICRA Limited, an Indian credit ratings agency. Ecuador, also a major shrimp exporter, is likely to see lower output due to earthquakes and disease, while Indonesia’s shrimp output has also been hit by disease. Vietnam’s shrimp exports to the EU, meanwhile, were greater due to falling global inventories. To July, shrimp exports to the EU hit $315.9 million for the year, up 6 per cent year-on-year, while those to China reached $249.2 million, up 38 per cent. With the current growth rate, Vietnam’s shrimp exports in the first eight months of this year are estimated at $1.9 billion, an increase of 4 per cent over the same period last year. As at July, Vietnam pangasius exports stood at $927.8 million for the year, an increase of 4.1 per cent compared to the same period of 2015. Sales to the US and China both saw good growth. In the first seven months, exports to the US (which account for 23 per cent of all pangasius exports) totaled $213.7 million, up 15.8 per cent year-on-year. According to DOC, in the first half of 2016 imports of pangasius in the US rose by 13 per cent but value fell year-on-year. The average import price dropped to $2.5-2.7 per kilo from $2.8-3.2 in the same period last year. The import price of frozen pangasius fillets remains relatively low compared to other whitefish products, such as frozen tilapia fillets, at $4.3-4.6 per kilo, frozen haddock $6.3-6.6, and fresh/chilled tilapia $7.1-7.8. From January to August Vietnam’s pangasius exports were estimated at $1.09 billion, up 7 per cent year-on-year. The figure for the year as a whole is forecast to reach $1.65 billion, up 6 per cent against 2015. Vietnam’s tuna exports exceeded $266 million from January to July, up 0.9 per cent year-on-year, in which sales of fresh/live/frozen tuna continued to take up the largest share. However, exports of these items fell 9.6 per cent over the same period of last year. Those of processed tuna (HS code 16), meanwhile, increased nearly 12 per cent. Notably, shipments of fresh/live/frozen tuna (except for frozen tuna loins HS code 0304) and canned tuna went up in the first seven months of the year against the same period last year. To July, Vietnam tuna exports to main markets posted positive growth for the year. In particular, exports to the US rose 0.5 per cent year-on-year, those to ASEAN 24.9 per cent, those to China 81.9 per cent, and those to Israel 10.9 per cent. Vietnam’s tuna exports were estimated at about $306 million from January to August, up 1 per cent year-on-year. While exports of these three main products (shrimp, pangasius and tuna) posted slight growth year-to-date, exports of other marine finfish increased 7.2 per cent while mollusks and crabs and other crustaceans fell 5.3 per cent and 1.7 per cent, respectively, compared to the same period of 2015. Philips eyes healthcare sector Dutch technology giant the Philips Healthcare Corporation has recently announced a new business orientation in Vietnam, focusing on healthcare technology in the expectation of improving Vietnam’s healthcare sector. “We will concentrate on supplying medical diagnostic and treatment solutions at hospitals in Vietnam,” Mr. Johan Vooren, Vice Chairman and General Manager South East Asia at Philips Healthcare, told the Hospital Management Asia 2016 conference held in Ho Chi Minh City a few days ago. Vietnam’s healthcare system has many ongoing problems, for example a high density of 1.9 doctors per 1,000 inhabitants and non-infectious diseases increasing to become the leading cause of death. “Where there are many issues there will be many opportunities for investors,” Mr. Vooren said. He also noted that Vietnam has the fastest aging population in Asia, with the number of people aged above 60 years old expected to increase three-fold to 32 million from the current 9.5 million by 2050. According to Mr. Philip Phuoc Dao, General Director of Philips Vietnam Company Limited, it will boost cooperation with the public and private sector to bring technological applications such as converging ultrasonic wave techniques, the health-to-home model, and building high tech operating theaters for heart disease patients. Solutions will also be introduced, including magnetic resonance imaging (MRI), ultrasound, and technology for sleep quality improvements, so that physicians can make more accurate decisions in patient care, he added. He emphasized that investment in technology in Vietnam’s healthcare sector or building new hospitals is not hard work. However, they are not the key factors in enhancing the quality of healthcare services, as it is also necessary to improve staff qualifications. Philips is therefore preparing to organize training courses at hospitals once every three months. The company has already introduced new and effective technologies in Singapore and Malaysia. Although Philips has more than 200 items of equipment in domestic hospitals, it will not only boost its technical and technological support for Vietnam’s healthcare sector but is also working with the Ministry of Health to establish training centers at Bach Mai Hospital, the Vietnam - Germany Hospital, and Medical University hospitals to enhance both knowledge and management skill, leading to better services for patients, Mr. Dao said. Philips Healthcare is a diversified technology company, with healthcare making up 42 per cent of its global sales revenue. A large company with over 37,000 employees scattered across 100 countries, Philips has produced more than 450 products and services.  The company reported that its HealthTech portfolio grew 5 per cent in the second quarter of this year. Part of that growth came from the recent acquisition of PathXL, a company focused on digital pathology image analysis, with some also coming from new product launches, such as Philips’ new cloud-based Patient Adherence Management Service, according to Life Science Investing News. Angel investors address startups at Hanoi conference A panel discussion was held on September 12 at the Toong Coworking Space Hanoi with the theme “Angels Without Borders: The Role of International Angel Investors in Vietnam’s Startup Ecosystem”. Panelists included experienced angel investors from the US, Ireland, and New Zealand, who discussed the value of foreign angel investors in a startup ecosystem that already has a strong group of Vietnamese angel investors. They also shared their observations on the potential of Vietnam’s startup ecosystem. Mr. David Beatty, Managing Partner of Gaingels and Founder of Digital Irish Angels, told the gathering that Vietnam particularly intrigues investors for its relatively large population of skilled engineering talent. “This is my third trip and I continue to see an increasingly higher quality pool of investment-worthy teams running business with regional and global market potential,” he said. He also mentioned the challenges for international angel investors in Vietnam’s startup ecosystem. “There are problems in trust and commitment,” he emphasized. “We need to trust in startup ideas and businesspeople need to commit their ideas and skills." According to Mr. Kurt Brungardt, Managing Partner of Swifte Private Equity, some business models are very attractive but startups cannot ensure their longevity. Investors therefore cannot see opportunities to invest. Meanwhile, Ms. Susan Lorns from Venture Lighthouse said that startups need innovation. “We have thousands of investment ideas each year but they must be better and more innovative than previous ideas,” she said. Angel investors also spent two days at a workshop with Hanoi-based startups sharing knowledge and improving presentation skills. The investors, with a delegation of the Mekong Angel Investors Network (MAIN), an international group of angel investors, are working with local investors in each city, looking for investment opportunities in early stage high growth companies. The Prime Minister of Australia, Malcolm Turnbull, told the inauguration of MAIN in Laos in early September that the key to growth in startups is entrepreneurship, investment, and innovation. It doesn’t necessarily have to be a good technological breakthrough or a great new digital business that’s going to be the next Google or Facebook. MAIN was organized by the Mekong Business Initiative (MBI) and the Lotus Fund, with funding from the Asian Development Bank and the Australian Government. It is the first organization of its kind to invest in Mekong sub-region startups and will also provide incubation services with a goal of incubating 30 companies and mentoring 20. SCB Group CEO visits Vietnam Mr. Bill Winters, Group Chief Executive Officer of Standard Chartered Bank, made his first official visit to Vietnam in early September to find out how the bank can further contribute to Vietnam’s growth and the development of its financial sector. “Vietnam is an attractive emerging market driven by a young and dynamic population and increasing integration into the global economy,” he said. “Being one of the oldest international banks in the country gives us deep local knowledge, which, combined with our excellent international expertise and network, puts us in an ideal position to facilitate Vietnam’s growth.” During his visit Mr. Winters called upon senior Vietnamese government and business leaders to exchange views about investment opportunities and the country’s economic potential. He also affirmed that the bank would continue to invest in Vietnam to capture the opportunities the market offers and to drive trade, investment and the creation of wealth in the country. On this occasion the bank also launched Standard Chartered credit cards in Vietnam. Standard Chartered is a leading international banking group with a 150-year history in some of the world’s most dynamic markets. The bank opened its first Vietnam branch in Saigon (now Ho Chi Minh City) in 1904 and set up its locally incorporated entity, Standard Chartered Bank (Vietnam) Limited, in 2009. The Vietnam subsidiary provides a full suite of banking products and services for corporates, financial institutions, small and medium-sized enterprises, and individuals. It currently has more than 850 employees and three branches - two in Hanoi and one in Ho Chi Minh City. Its head office is in Hanoi. The bank brings international expertise and experience in Asia, Africa and the Middle East to Vietnam, building a broad business that helps to develop Vietnam’s financial services sector and assists clients in developing their businesses. Standard Chartered has acted as the sole Sovereign Credit Ratings Advisor to the Vietnamese Government since March 2012. In this capacity it has been a trusted partner of Vietnam through a period of macro-economic instability. It was named “Best Foreign Bank in Vietnam” by the Global Banking & Finance Review in 2014 and 2015 and by Global Business Outlook in 2016. VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VET/VIR