BUSINESS IN BRIEF 8/12 State gets less from divesting in Jan-Nov The State collected only VND450 billion (US$19.8 million) when divesting stakes with a book value of VND490 billion from State-owned enterprises (SOEs) operating in securities, banking, finance, insurance, and real estate sectors in January-November. During last year, the State earned VND15.6 trillion from divesting stakes from those five business sectors, news site VnEconomy said, citing a report of the Ministry of Finance. In the eleven-month period, the Government had approved the plans for 56 SOEs to go public, including six corporations, with a total value of more than VND34 trillion, of which VND24.39 trillion is State capital. The total charter capital of those 56 firms is VND24.37 trillion, with the State holding VND11.9 trillion, strategic investors VND7.67 trillion, their staff VND388 billion, trade unions VND8 billion, and the public VND4.37 trillion. For divestment, SOEs had divested VND3.56 trillion and earned VND5.67 trillion in January-November, said the report. In addition, the State obtained VND2.27 trillion from transferring VND1.57 trillion worth of shares in other enterprises to private investors. As planned, the finance ministry will complete policies for transferring wholly State-owned firms into joint stock companies to have the legal basis for carrying out equitization plans in the 2016-2020 period. Vietjet Air to list on HOSE next year Budget airline Vietjet Air will list shares on the Hochiminh Stock Exchange in early 2017 after it launches an initial public offering (IPO) this December, according to Reuters news agency. BNP, Deutsche Bank and JP Morgan are the joint global coordinators for the IPO. The offering for the country’s only private airline will consist of 44.7 million shares, which could be increased by an additional 14.9 million shares if there is sufficient demand. Indicative pricing was set at VND75,900-98,400. Vietjet expects to fetch some US$194 million from the IPO auction. The carrier’s market capitalization is estimated at between US$1.08 billion and US$1.4 billion. Vietjet Air could not immediately be reached for a comment, Reuters said. T&C Group, Sovico Holdings and HDBank are three major shareholders of Vietjet that had total chartered capital of VND3 trillion as of end-November. The airline’s revenue neared VND1.25 trillion in 2012 and soared to some VND11.01 trillion in 2015. It earned profit last year for the first time after four years of operation thanks to double-digit growth in earnings and the number of flights and air routes. Notably, its international flights rose by 240% in 2015 from a year earlier. According to a resolution adopted at its 2016 general meeting, Vietjet aims to expand its aircraft fleet to 42 and attain revenue of US$1.8 billion and pre-tax profit of US$64.3 million. The carrier held a 41.4% aviation market share in this year’s first half after Vietnam Airlines with 42.5%, according to the Vietnam Aviation Business Association. Zalora to offer steep discounts in Online Fever program Zalora, a leading online fashion retailer in Vietnam, will launch its Online Fever 2016 program from December 12 to 16, with 50 brands offering attractive deals. Customers can browse for a wide range of products on some online shopping sites, including Nguyenkim.com, Cungmua, and Foody, catering services of brands like Kichi Kichi, Vuvuzela, Ashima, Shogun, Cowboy’s Jack, Osaka Osho, Hutong and Halal Saigon, beauty care goods of  L’occitane, Vichy, La-roche Posay, Laneige, Natural Republic, The Body Shop, Pamas spa, Anam QT spa and Nang Spa, and banking services from Techcombank, Sacombank, Maritime, VPBank, Seabank, and Shinhan Bank. There will be many items offered at the same price of VND99,000 or VND199,000 and discounts of up to 50% on items of Mango, Guess, Michael Kors, New Look, and Marc Jacobs. Those using Zalora mobile app can enjoy discounts of up to 25%. Online Fever, which has entered its third year, provides a good chance for local consumers to buy quality products at reduced prices. People should go to www.zalora.vn/online-fever to get updated on daily promotions from 12 a.m. on December 12. Report on enterprise renewal, development announced    Deputy Chairman of the Government Office Le Manh Ha, Deputy head of the Steering Committee for Enterprise Renewal and Development, presented a report on enterprise renewal and development in 2011-2015 and tasks and missions for 2016-2020 at the national videoconference implementing the rearrangement and renovation of state-owned enterprises (SOEs) on December 6. The Government and the PM issued 69 Decrees, Decisions and Directives in the 2011-2015 period, including 21 documents on organization and management of the SOEs, 34 documents on arrangement, restructuring and capital withdrawal at enterprises and 14 articles on organization and operation of State economic corporations. Ministries issued 15 Circulars on guiding the implementation of mechanisms and policies. As many as 591 businesses were re-arranged, accounting for 96% of the plan, including the equitization of 499 SOEs  (making up 96.3%), merging and acquisition of 48 SOEs, dissolution of 17 ones and bankrupting eight ones. Until now, the total number of re-organized enterprises was 6,010, including 4,508 equitized ones. After 15 years of re-organizing, the number of SOEs sharply decreased, especially small-scale and weak ones. Around 6,000 SOEs operated in 60 sectors and areas in 2001. The figures reached 1,369 ones in 2011 and only remained 718 ones in 2016, focusing on 19 sectors. Regarding the business sector, the proportion of the SOEs only accounts for 0.67% but they still contribute 28.8% to the GDP while the non-State and Foreign Direct Investment (FDI) sectors make up 11.8% and 17.9%, respectively. The equitization of SOEs has gained positive achievements as the number of re-organized and equitized enterprises accounted for 96% and 96.3%, respectively, of the five-year plan. In the phase from 2016-2020, the Government identifies that the businesses the State hold 100% of the capital will operate in key and necessary sectors, locate in crucial national defense and security areas and apply high technology with large investment and create impetus for the socio-economic development that are not invested by other economic sectors. Paradise to open new hotel in Ha Long Bay Paradise Group, one of the leading providers of luxury hospitality services in Vietnam, has opened a second boutique in Ha Long Bay to meet the growing demand for on-shore accommodation. Called Paradise Trend Hotel, the new property features matching four-story buildings and 78 elegant rooms that’s accentuated by blue-and-beige color schemes and exquisite canvas paintings of Vietnamese landscapes and daily life. The sleek hotel is next door to the equally posh Paradise Suites Hotel, which debuted two years ago on Tuan Chau Island, gateway to Vietnam's most famous natural attraction. “What we've found is that not everyone who is interested in seeing Ha Long Bay wants to spend the night on the water," said Mr. Edgar Cayanan, the general manager of both hotels. He added, “some want to check out the surrounding area as well or spend time on the beach or have the ability to hold a big meeting or event, which obviously requires space. Expanding our offering in this fashion allows us to cater to those needs and desires.” According to Vietnam National Administration of Tourism (VNAT) statistics, Ha Long Bay's popularity is at an all-time high among foreigners. Records indicate that almost 2 million international tourists traveled to the UNESCO World Heritage site over the first six months of the year — a 52 per cent increase from the first half of 2015. “Because most travelers try to squeeze in a lot of destinations when they come to Vietnam, overnight cruises are still the most popular option in Ha Long Bay,” said Mr. Cayanan. “However, the common feeling is that overnight cruises, which last about 22 hours, aren't quite long enough. So for those who have more time, spending one extra day cruising the bay is appealing." While Paradise Trend Hotel possesses many of the same qualities as Paradise Suites Hotel, there is one key difference and that is style. “Paradise Trend is exactly what the name suggests — trendy,” said Mr. Cayanan. “It's a nice juxtaposition to Paradise Suites, which has more of a classic feel.” Guests of either hotel have access to a range of indulgent amenities namely two elegant restaurants, an inviting pub, a soothing spa and a boutique stocked with fashionable clothing and travel accessories. Since putting its first boat on the water in 2008, Paradise Group has made a name for itself as the premier luxury cruise operator in Ha Long Bay. That reputation is set to be further strengthened in January, when the company unveils Paradise Elegance, a 31-cabin steel-hulled vessel designed to meet even the most sophisticated tastes. Paradise Group also owns and manages three of the most exquisite dining experiences in Vietnam, including Ngon Villa Hanoi, HOME Hanoi and the recently opened HOME Hoi An. Vietnam remains biggest shrimp supplier for Australia Vietnam was the biggest shrimp supplier for Australia in the first nine months of 2016, accounting for over 33 percent of total imports. According to the Vietnam Trade Office in Australia, Vietnam sold more than 18,000 tonnes of shrimp worth over 167 million USD in January-August, up 2.1 percent in volume but down 9.2 percent in value compared to the same period last year. Australia is the ninth largest shrimp importer in the world, making up about 1.9 percent of global shrimp export revenues. It is also the seventh biggest shrimp consumer of Vietnam, comprising 3.3 percent of the country’s shrimp exports. Vietnam’s shrimp exports to Australia registered the highest growth in March and September 2016 with respective increases of 18.4 percent and 10.4 percent year-on-year. In September alone, the Southeast Asian nation grossed over 12 million USD in revenues, up 10.4 percent against the same months of 2015. The Vietnam Trade Office said Vietnam has been the biggest provider of shrimp for Australia over the past five years. However, due to strict requirements on food hygiene from the market, Vietnam is still unable to export frozen raw shrimp. Vietnamese agencies are working with the Australian side to bring this product to the country. In the fourth quarter of 2016, a delegation of Australian experts will conduct a fact-finding tour to Vietnam to inspect its standards for exporting raw shrimp. Imported cars will undercut Vietnam products after tariff removal: industry   The country's lack of auto parts suppliers means many components have to be imported and the added costs are passed on to consumers.  Locally-assembled cars could cost 20% more than those imported from neighboring countries such as Thailand and Indonesia by 2018, when tariffs for ASEAN cars will be cut to zero from the current 50%, industry insiders say. According to a report released by the trade ministry at a recent business forum, one of the biggest problems hindering the growth of the automobile industry is the lack of parts suppliers. Vietnam currently has more than 400 small- and medium-sized companies that are either auto assemblers or parts suppliers. Noticeably, nearly half of them are foreign-invested and few have invested in advanced technologies to produce more than basic components such as mirrors, electric wires, batteries and some plastic parts. The trade ministry said local parts suppliers can only fulfill between 7 and 10% of manufacturing orders for nine-seat cars. As a result, assemblers have to import certain parts of a car, which increases prices, industry insiders told the business forum. They forecast that in 2018 locally-assembled cars could be more expensive than those imported from ASEAN countries, which would benefit from the coming tariff removal. Experts also pointed to the fact that Vietnam’s automobile industry with more than 400 businesses is not working at its full capacity, which is about 500,000 units per year. Last year it imported a record 244,914 cars. Some estimates showed that total car sales in Vietnam this year, of both local and imported ones, could increase about 22% to 300,000 units. The Vietnam Business Forum suggested the government offer incentives for auto parts suppliers and consider scrapping import tariffs on parts that are not available at home. In Vietnam, high-pollution industries enjoy relaxed environmental standards Vietnam is setting the bar too low in terms of environmental protection for several industries with high pollution outputs like steelmaking, paper and pulp. he Southeast Asian country has established policy guidelines universally applicable to all industries, which regulate how businesses should treat wastewater from their production. However, there are also independent sets of environmental standards for each industry, where the regulations are much more relaxed. In 2011, the Ministry of Environment and Natural Resources issued the national technical standard for industrial wastewater, with as many as 33 technical parameters. However, just two years later, the same ministry issued the QCVN52/2013 guideline, a specific technical standard in terms of wastewater, emission and other outputs from the steelmaking industry, with the bar lowered for multiple parameters and several crucial criteria omitted. “In guideline No.52, everything that needs to be overseen is not detailed,” a scientist from the Vietnam Academy of Science and Technology commented. The expert explained that even within the steelmaking industry, no environmental standard was set for the allowable content of iron in wastewater. According to the QCVN52/2013 guideline, a steelmaker is required to meet 12 parameters for its wastewater, far fewer than the 33 in the common national environmental standard set across all industries. The restriction put on cyanide content, one of the most crucial parameters for wastewater, is also relaxed for steelmakers. While the common guideline stipulates an allowable cyanide content of 0.1mg a liter, the No.52 guideline generously extends that limit by five times to 0.5mg a liter. Indeed, the steel mill developed by Taiwan’s Formosa Plastics Group in the north-central province of Ha Tinh was able to produce wastewater with 0.585mg of cyanide per liter, nearly six times higher than the common standard. The plant’s untreated wastewater led to April’s mass fish deaths throughout central Vietnam. The emission standards stipulated in the QCVN52/2013 guideline do not include a carbon monoxide (CO) parameter, while offering a lenient standard on the toxic dioxin. While the universal national standard sets a ceiling of 0.6 nanogram toxic equivalency (TEQ) per Normal cubic meters (Nm3) for dioxin resulting from the production of steel, the specific guideline for the steelmaking industry raises the bar to 1 nanogram TEQ per Nm3. The environmental guidelines for other industries, such as seafood and papermaking, are also much more relaxed than the so-called universal set of standards. In 2015, the Ministry of Environment and Natural Resources issued the guidelines on wastewater treatment for the seafood processing industry, with the allowable amount of ammonia in wastewater double that of the universal standard. Similarly, papermaking companies currently need to meet seven technical parameters, compared to 33 in the common set of standards. Dr. Tran The Loan, former head of the pollution control agency under the Ministry of Environment and Natural Resources’ General Department of Environment, said the environmental standards in Vietnam are prepared with little respect to the ‘resilience’ of the environment. “Imagine an area with a number of plants, all discharging treated wastewater into one same river,” he said. “Even when each of the facilities meets the environmental standards, the river will soon fail to endure.” Dr. Loan said this is evidenced by the fact that many rivers such as Thi Vai in the southern province of Ba Ria-Vung Tau or Cau in the south-central province of Phu Yen are becoming increasingly polluted as there are many factories nearby. Hoang Duong Tung, deputy head of the General Department of Environment, said regulatory bodies are totally capable of imposing strict standards, but doing so “would discourage production.” “Too high environmental standards are not suitable for the current development of our country,” he said. Tung added that the law on standards and regulations allows two sets of guidelines, on both national and local levels, to co-exist. “This means local administrations can set their own standards, which can be stricter than the national ones, for industries whose development is not encouraged,” he explained. Tung added that under the current regulations, environmental standards should be reviewed and updated every three to five years. “The environment ministry is speeding up the review task and is expected to finish by the end of next year,” he said. Paper exports inch up Exports of paper and paper products in the first ten months this year increased by 5.6% to US$413.4 million against the same period last year, according to Vietnam Customs. Vietnamese paper products have been available in 17 countries in the world such as the US, Japan, Cambodia, Singapore and Australia. The US remained the largest consumer in the reviewed period with an import value of US$77.41 million, accounting for 18.7% of Vietnam’s total export revenue of paper and paper products (up 0.9%). Japan came second among importers of Vietnamese products with US$74.15 million, making up 16.5% (up 16.8%) and Taiwan ranked third with US$67.05 million, accounting for 16.2% (up 5.3%) of Vietnam’s total export revenue. Exports of paper and paper products saw a positive growth in many markets like China (up 37.3%), the UAE (up 34.3%) and Thailand (up 31.4%). Meanwhile, some markets suffered a decline in value such as Hong Kong (down 13.2%), the Republic of Korea (down 11.9%) and Singapore (down 11.2%). Vietnam takes concrete measures to promote national brand  Over the past decade, uncomplicated and easy to understand advertising has given way to national branding— giving products an emotional connection to which their customers can identify. vietnam takes concrete measures to promote national brand hinh 0 A brand is important because customers define themselves by the brands they use whether it’s the clothes they wear, the motorbike or car they drive, the university they attend or the stores they shop. Just as we all know that Mercedes-Benz automobiles drive with German efficiency, we all know that at some point company brands and national identity merges. This, of course, is the impetus for the government’s National Brand Program. Other examples would be that of McDonald's, Walmart and Microsoft who are highly visible and famous US brands for which millions of consumers around the globe instantly merge company and national identity. Strong company brands in concert with an equally powerful national brand are a winning combination for Vietnam to attracting higher levels of foreign direct investment, recruiting the best and the brightest young talent and keeping the country’s economy healthy. Most notably, it is important for the national band to be representative of the country’s history, geography, and ethnic motifs and imbue a sense of national identity and uniqueness. This year, 88 businesses across the spectrum of business segments were ceremoniously presented National Brand Awards in Hanoi, for which 23 have now won the title for past five consecutive years. Among the many recipients are Viet Tien Garment Joint Stock Company, An Phuoc Group, Saigon Beer-Alcohol-Beverage JSC, Vina Coffee, Commercial Bank for Foreign Trade of Vietnam JSC, Vietnam Posts and Telecommunications Group and Saigon Jewellery JSC. At a reception at the Presidential Palace in Hanoi for the winners, President Tran Dai Quang spoke highly of their efforts to improve their brand in concert with the national brand of Vietnam affirming their contribution to the country’s development. He encouraged them to forge ahead with their business ventures and continue to pursue building a brand image of quality, innovativeness and creativity. Smart firms, he reminded them, pour most of their money into improving their brands, focusing more on the values and emotions that customers attach to them than on the quality of the products themselves. Since markets are flooded with indistinguishable, mass-produced items, Vietnamese companies must individualize the goods they are selling to their customers by associating them with both the company and the Vietnam national brands. As such he reminded the companies that their brand efforts must push a lifestyle or a sophisticated image that connects with the emotions of global consumers rather than just a bland piece of clothing, or textile, agriculture product, food item, or shoe. In other words, President Quang was suggesting companies promote themselves and Vietnam collectively as a ‘green country’ for example, to attract environmentally conscious individuals and foreign direct investment. Or emphasize the image of Vietnam as a global hub for the media, design, music, film, and fashion industries as opposed to just being a low-cost labour pool for manufacturers of clothing, textiles and shoes. This is what the National Brand Awards program is all about. It’s a long-term, cumulative effort spanning decades to make the country seem very fashionable, enterprising, modern— and stand out from the crowd. Update mortgage law, experts say Legal regulations on settling mortgaged assets must be streamlined to help credit institutions solve non-performing loans (NPLs), participants at a conference held in Hanoi said on December 6. At the conference on credit institutions’ rights to settle mortgaged assets, participants said NPLs with mortgaged assets account for up to 90% of the country’s total NPLs. However, creditors are facing obstacles in settling mortgaged assets due to an incomplete and unsuitable legal framework. The institutions said many legal regulations have no detailed instructions on dealing with mortgaged assets. Therefore, it takes a long time to deal with the assets. In addition, the slow judgment process also negatively impacts credit institutions’ business performance, wasting time and money to recoup toxic debts. Deputy Governor of the State Bank of Vietnam Nguyen Kim Anh admitted that the efficient collateral settlement requires a legal system with uniformity, transparency and consistentcy. It must also be respectful of the legitimate rights of creditors. The law must create a legal framework for the parties involved, especially for the creditors to be able to enforce their legitimate rights under the agreement. “It is also necessary to establish mechanisms that allow the parties to choose a way to handle the debts with regard to mortgaged assets quickly, conveniently and effectively. At the same time, the legal system must be strictly adhered to by the involved parties,” Anh said. At the conference, participants said while handling mortgaged assets, the first priority must be to protect the interests of creditors rather than debtors and this must be specified in the provisions related to secured transactions and settling of collateral. Expert Nguyen Dinh Anh said economically, the credit institutions’ right in settling mortgaged assets includes their right to use the assets to offset losses caused by bad debts. But when creditors handle the assets, they receive no co-operation from debtors and sometimes the relationship becomes confrontational or even fiercely conflicting. “The right to handle collateral cannot be executed quickly, efficiently and effectively unless the awareness of the rights, benefits and obligations of all involved parties in the credit relationship is established properly based on feasible and suitable legal basis, in accordance with actual conditions in Vietnam, as well as proximity to international practices and standards,” Anh said. Lawyer Nguyen Thi Phuong, deputy head of the Vietnam Banks Association’s Legal Club, said the right to settle mortgaged assets of credit institutions is a civil right. Therefore, the institutions have the right to settle the collateral according to their will with the preconditions not being contrary to the fundamental principles of the civil law and not causing damage to other persons. Participants at the conference also proposed that the Ministry of Justice work closely with the State Bank of Vietnam, the Ministry of Environment and Natural Resources, the Ministry of Public Security, the Ministry of Finance and the Supreme People’s Court to submit plans to the Government for issuance of a decree on solving mortgaged assets early. According to the participants, the 2015 Civil Code, which will take effect on January 1, 2017, has no specific provisions for the seizure of mortgaged assets. The Ministry of Justice, therefore, should co-ordinate with agencies and relevant agencies to study and supplement detailed instructions on the rights of the secured party for the settlement of collateral in case the guarantor becomes uncooperative or opposes it. Deputy Governor Anh said that the central bank and relevant ministries and agencies would scrutinise all the recommendations proposed at the event to streamline the legal framework involved in settling mortgaged assets to assist credit institutions in solving bad debts legally. Imported cars will undercut Vietnam products after tariff removal: industry The country's lack of auto parts suppliers means many components have to be imported and the added costs are passed on to consumers. Locally-assembled cars could cost 20% more than those imported from neighboring countries such as Thailand and Indonesia by 2018, when tariffs for ASEAN cars will be cut to zero from the current 50%, industry insiders say. According to a report released by the trade ministry at a recent business forum, one of the biggest problems hindering the growth of the automobile industry is the lack of parts suppliers. Vietnam currently has more than 400 small- and medium-sized companies that are either auto assemblers or parts suppliers. Noticeably, nearly half of them are foreign-invested and few have invested in advanced technologies to produce more than basic components such as mirrors, electric wires, batteries and some plastic parts. The trade ministry said local parts suppliers can only fulfill between 7 and 10% of manufacturing orders for nine-seat cars. As a result, assemblers have to import certain parts of a car, which increases prices, industry insiders told the business forum. They forecast that in 2018 locally-assembled cars could be more expensive than those imported from ASEAN countries, which would benefit from the coming tariff removal. Experts also pointed to the fact that Vietnam’s automobile industry with more than 400 businesses is not working at its full capacity, which is about 500,000 units per year. Last year it imported a record 244,914 cars. Some estimates showed that total car sales in Vietnam this year, of both local and imported ones, could increase about 22% to 300,000 units. The Vietnam Business Forum suggested the government offer incentives for auto parts suppliers and consider scrapping import tariffs on parts that are not available at home. Tan Cang – Cai Cui port launched in Can Tho Tan Cang – Cai Cui Port was inaugurated at a ceremony in Cai Rang district, the Mekong Delta City of Can Tho on December 6. The event, organised by Tan Cang Shipping Company, was attended by officials from the Southwestern Steering Committee, ministries, sectors, and local and regional authorities. In the first phrase, Tan Cang – Cai Cui Port covers an area of over seven hectares and can receive ships with capacity of up to 20,000 tonnes. It has 6,000 square metres of storage area equipped with modern loading equipment. On October 24, the port received its first container ship from Hai Phong port to Can Tho City through the Quan Chanh Bo canal in Tra Vinh province, marking a milestone in connecting the northern economic zone and the Mekong Delta region. So far, six container ships have anchored at the port. According to Vice Director General of Tan Cang Sai Gon Company Ngo Quang Chung, the company will continue investing in the port to make sure it will operate in a more professional, effective and convenient manner. It also looks to launch ships carrying goods directly from the Mekong Delta to the regional ports, as part of activities to implement the agreements reached at the World Economic Forum (WEF)-Mekong Conference, Chung said. Fruit-vegetable export value surpasses 2.1 billion USD Fruit-vegetable exports in 11 months of 2016 earned 2.178 billion USD, according to the Ministry of Agriculture and Rural Development (MARD). The MARD said the value for November alone was 186 million USD. China is the largest market for Vietnamese vegetables and fruits, accounting for 70.4 percent, followed by the Republic of Korea with 3.6 percent, the United States 3.4 percent, and Japan 3.1 percent. In the period, Vietnam spent 814 million USD on imported vegetables and fruits, up 44 percent against the same period last year. Thailand is the largest exporter of fruit to Vietnam, making up 44 percent of the country’s total import of the products, followed by China with 23 percent. Paper sector’s growth slows down    The growth of the paper sector has slowed down recently in terms of consumption, production, export and import, according to the Vietnam Pulp and Paper Association (VPPA). The slowdown went against the rises in consumption (5 percent), production (5.4 percent), imports (4.3 percent), and exports (1.7 percent), recorded in the first half of this year, reported the association. It added that sales of paper for printing newspapers dropped 46 percent year on year, while that of printing paper went down for the first time. Meanwhile, sales of tissue paper still enjoyed high and stable growth at 16.5 percent, while its production rose 11 percent and imports increased 71 percent. The VPPA attributed the rise to the improvement of people’s living standards and their higher requirements of high-quality tissues. Many enterprises held that the domestic paper businesses are less competitive compared to foreign and FDI firms, forcing many domestic factories to operate under their capacity. The association proposed that authorised agencies should design support policies for paper firms to assist them in capital and technology transfer and trade promotion in line with the Government’s Resolution 35/CP on supporting the paper sector’s growth to 2020. The aid is expected to help the firms expand their market, improve products’ quality and access low-cost materials, thus re-gaining their market share amidst challenges from the current strong international integration, added the VPPA. Sabeco listed on HOSE The Saigon Beer, Alcohol and Beverages Corporation (Sabeco), a leading brewer in Vietnam, listed nearly 641.3 million shares (SAB) at a starting price of 110,000 VND (4.89 USD) per share on the HCM Stock Exchange (HOSE) on December 6. Addressing the first transaction, Nguyen Thi Lien Hoa, Vice Chairwoman of the State Securities Commission of Vietnam (SSC) praised the joint efforts made by the company management and employees to conduct the listing in line with the Government’s schedule. Sabeco is the 399th company listed on HOSE with charter capital exceeding 6.4 trillion VND (282.1 million USD). It is the fifth largest listed firm on Vietnam’s stock market with its market capitalization exceeding seven trillion VND (308 million USD), according to Hoa. As per the company’s nine-month financial report, its net revenue is more than 21.8 trillion (959.6 million USD), an increase of nearly 9 percent year on year, while its pre-tax profit is more than 4.5 trillion (198.44 million USD), an increase of 21 percent year on year. Belgian regions’ firms seek to invest in HCM City Authorities of Ho Chi Minh City are willing to support and create the most favourable conditions for enterprises from the Flanders and Brussels regions of Belgium and those from other localities of Belgium, to effectively invest in the city, a municipal official has said. Vice Chairman of the municipal People’s Committee Le Van Khoa made the affirmation at a meeting with Belgian Ambassador to Vietnam Jehanne Roccas, who led a delegation of businesses from the regions to seek investment opportunities in Vietnam. Khoa said he believes the visit will contribute to expanding economic and investment links between HCM City and the Belgian localities. HCM City is calling for investment and cooperation in tourism, flood prevention, waste treatment, public transport development, clean energy and green growth, he revealed. Jehanne Roccas said the delegation, which includes economic experts and representatives from 27 prestigious companies of the regions, is very interested in and put faith in the city’s investment climate. Belgian firms are ready to share their experience in issues related to urban development, such as water management, waste treatment, and sustainable urban development, she noted. Working sessions between the delegation and the municipal authorities helped promote mutual understanding, laying a foundation for their cooperation in potential fields such waterway transport development, seaport and climate change adaptation, she said. The same day, representatives from a number of departments and sectors of HCM City had a working session with the delegation, during which they discussed cooperation orientations  in urban infrastructure development,  waster waste management, and human resources serving green urban development.- Vinamit products earn USDA, Ecocert organic certificates Dried fruit producer, Vinamit JSC, annouced that it has secured organic certificates for cultivation and processing of farm produce issued by the US Department of Agriculture and EU-based Ecocert organisation. 80 products, three farms and two processing and packaging lines of Vinamit have fulfilled criteria from the two institutions. Richard de Boer from the Control Union Certifications said Vinamit’s strength is having remote farms with upstream water sources, which are yet to be affected by human and industrial activities. The company has long produced clean products, making it easier for Vinamit to gain organic certification, he noted. Vinamit Chairman Nguyen Lam Vien said the accreditation opens the door for Vietnamese dried fruit to enter markets with higher demands on import quality, such as the US, EU and Japan. Established in 1988, Vinamit, which is headquartered in the southern province of Binh Duong, posts annual average growth of between 30 percent and 50 percent. The company has also obtained certificates from the US Food and Drug Administration and produces Halal and Kosher products. It is also ready to receive certificates from the BRC Food Safety Standard and the International Featured Standards in early 2017. VN seeks more ASEAN trade     The Government will review Viet Nam’s farming products – such as seafood, rice, vegetables, pepper, coffee, cashew nuts and rubber, and Halal products for Muslim people - in order to increase exports to ASEAN member states. The review will also include building material, steel and steel products in order to promote trade activities with the bloc. According to an announcement this week by the Government Office, the Ministry of Industry and Trade (MOIT) has been tasked with disseminating trade regulations and commitments to ASEAN to raise awareness of managers, businesses and people about the opportunities and challenges in those markets. Deputy Prime Minister Trinh Dinh Dung told a recent meeting about trade relations between Viet Nam and ASEAN that he had also asked the ministry to identify the demand for goods in ASEAN markets and analyse the competitiveness of markets with similar economic conditions and production capacity as Viet Nam’s. Based on the analysis, the ministry will identify which products have an advantage for export to ASEAN countries. The MOIT will also organise trade promotion activities with the participation of relevant associations and enterprises to seek new business opportunities and partners. The deputy PM also demanded that the ministry update market information and introduce Vietnamese products to foreign markets, as well as organising annual fairs in potential markets to advertise images and trademarks of Viet Nam’s enterprises and commodities. He requested that the MOIT work with relevant agencies to create favorable conditions for Vietnamese businesses to build distribution systems abroad, as well as enter into and establish long-term strategic partnerships with distribution chains in the ASEAN member nations. Meanwhile, the Ministry of Agriculture and Rural Development and the Ministry of Science and Technology will review trade barriers of importing nations, especially those concerning quarantine and food quality and safety, and work with authorised bodies in the importing countries to solve difficulties in exporting goods from Viet Nam to those countries, especially farming products, Deputy PM Dung said. According to the General Department of Customs, the export value from Viet Nam to ASEAN markets in the first half of this year dropped by 12.8 per cent year-on-year to US$8.08 billion, while import value to Viet Nam from ASEAN fell by 4.8 per cent year-on-year to $11.38 billion. The drop was due to declining commodity prices on the world market. Update mortgage law, experts say     Legal regulations on settling mortgaged assets must be streamlined to help credit institutions solve non-performing loans (NPLs), participants at a conference held in Ha Noi said on December 6. At the conference on credit institutions’ rights to settle mortgaged assets, participants said NPLs with mortgaged assets account for up to 90 per cent of the country’s total NPLs. However, creditors are facing obstacles in settling mortgaged assets due to an incomplete and unsuitable legal framework. The institutions said many legal regulations have no detailed instructions on dealing with mortgaged assets. Therefore, it takes a long time to deal with the assets. In addition, the slow judgment process also negatively impacts credit institutions’ business performance, wasting time and money to recoup toxic debts. Deputy Governor of the State Bank of Viet Nam Nguyen Kim Anh admitted that the efficient collateral settlement requires a legal system with uniformity, transparency and consistentcy. It must also be respectful of the legitimate rights of creditors. The law must create a legal framework for the parties involved, especially for the creditors to be able to enforce their legitimate rights under the agreement. “It is also necessary to establish mechanisms that allow the parties to choose a way to handle the debts with regard to mortgaged assets quickly, conveniently and effectively. At the same time, the legal system must be strictly adhered to by the involved parties,” Anh said. At the conference, participants said while handling mortgaged assets, the first priority must be to protect the interests of creditors rather than debtors and this must be specified in the provisions related to secured transactions and settling of collateral. Expert Nguyen Dinh Anh said economically, the credit institutions’ right in settling mortgaged assets includes their right to use the assets to offset losses caused by bad debts. But when creditors handle the assets, they receive no co-operation from debtors and sometimes the relationship becomes confrontational or even fiercely conflicting. “The right to handle collateral cannot be executed quickly, efficiently and effectively unless the awareness of the rights, benefits and obligations of all involved parties in the credit relationship is established properly based on feasible and suitable legal basis, in accordance with actual conditions in Viet Nam, as well as proximity to international practices and standards,” Anh said. Lawyer Nguyen Thi Phuong, deputy head of the Viet Nam Banks Association’s Legal Club, said the right to settle mortgaged assets of credit institutions is a civil right. Therefore, the institutions have the right to settle the collateral according to their will with the preconditions not being contrary to the fundamental principles of the civil law and not causing damage to other persons. Participants at the conference also proposed that the Ministry of Justice work closely with the State Bank of Viet Nam, the Ministry of Environment and Natural Resources, the Ministry of Public Security, the Ministry of Finance and the Supreme People’s Court to submit plans to the Government for issuance of a decree on solving mortgaged assets early. According to the participants, the 2015 Civil Code, which will take effect on January 1, 2017, has no specific provisions for the seizure of mortgaged assets. The Ministry of Justice, therefore, should co-ordinate with agencies and relevant agencies to study and supplement detailed instructions on the rights of the secured party for the settlement of collateral in case the guarantor becomes uncooperative or opposes it. Deputy Governor Anh said that the central bank and relevant ministries and agencies would scrutinise all the recommendations proposed at the event to streamline the legal framework involved in settling mortgaged assets to assist credit institutions in solving bad debts legally. Car registration fees to drop     The Ministry of Finance has changed the way it calculates registration fees for new vehicles, a move expected to reduce expenses for car buyers. The new calculation is expected to enter into effect on January 1, 2017. According to a draft circular, the new calculation will be based on the cars’ list price, and will thus drop five per cent every two years, until ten years from the production date. For example, if a new car version rolled out in early 2017 costs VND1 billion, the price of a new car of the same type but of an older version, made in 2011, will be VND850 million. Nguyen Van Nghia, a resident of HCM City’s Thu Duc District, told local media that he recently bought an imported Toyota Camry produced in 2013, but its registration fee was calculated according to the new price of the same kind made in 2016. The car’s list price was VND2 billion and he had to pay a registration fee of 10 per cent of the car value, or VND200 million. "Under the new calculation,’ he said, "if I buy the car early next year, I will have to pay only VND180 million for the registration fee. I can save VND20 million.” “A buyer can save VND40-50 million which depends on the car value,” said Nghia. The marketing director of Ford Vietnam, Truong Kim Phong, said the new calculation would benefit customers, especially if they buy imported cars that are more expensive. The general manager of Lien A International Joint Stock Company, Nguyen Tan Trung, said a drop in registration fees would not only benefit customers but also auto companies. The auto businesses would have the opportunity to reduce the selling price and boost sales. Insiders predict that 2017 will be a busy year for the automobile industry due to the reduced registration fee and lower tax of vehicles imported from ASEAN member states. VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VET/VIR