BUSINESS IN BRIEF 3/10 Businesses encouraged to invest in large-scale pepper production    Deputy Minister of Agriculture and Rural Development Le Quoc Doanh has suggested key pepper growing provinces such as Dak Nong, Dak Lak, Gia Lai, Binh Phuoc and Dong Nai have more policies to encourage and create favourable conditions for businesses to invest in large-scale pepper production with high quality and efficiency. The ministry will issue Production Unit Codes (PUCs) to areas that qualify to produce peppercorns for export, he said. He suggested building concentrated pepper material areas and providing technical assistance for farmers to ensure food safety and create brands. Small-scale pepper growers should shift to other crops to avoid economic losses, he recommended. Vietnam exported 180,000 tonnes of pepper worth 965 million USD in the first nine months of 2017, up 22.2 percent in volume but down 19.6 percent in value compared to the same period last year. The country is home to about 130,000 hectares of pepper, mostly in the Central Highlands and the south-eastern region, according to the Department of Cultivation under the Ministry of Agriculture and Rural Development. The Central Highlands posted an average yield of 2.86 tonnes a hectare per crop, the highest in the country. Gia Lai had the highest yield of the region, 41.2 tonnes a hectare per crop. In some farms, yield could reach to 10 tonnes per hectare. GDP in quarter three posts record high of 7.46% The national gross domestic product (GDP) growth in the third quarter reached a record high of 7.46%, according to the General Statistics Office (GSO). GSO general director Nguyen Bich Lam said at a press conference in Hanoi on September 29 that the economic growth has shown positive signs. Significant breakthroughs have been made in the processing and manufacturing sector and export activities. He added the restructuring of agriculture, forestry and fisheries as a whole, as well as the role of an “enabling State” has proven effective. The major balances of the economy have been sustainable, and inflation has been curbed. The GDP growth in the year to September grew by 6.41%, driven by a 2.78% pickup in agriculture, forestry and fishery, a 7.17% rise in industry and construction, and a 7.25% improvement in services. The speedy recovery and growth of the processing and manufacturing sector, and the impressive result of the services sector are major factors contributing to the economy’s overall growth rate. In particular, the processing and manufacturing sector rose by a sharp 16.63% in quarter three, the highest since 2011 thanks to electronics products, computers, phones, metals and metal products. The production index of electronic products, computers and phones in quarter three rocketed to 45.5% against the year-ago period, making the January-September period increase to 25.1%, as the Samsung Group expanded its production of high-valued electronic products. Vietnam fetched US$154 billion in export revenue in the nine-month period, a year-on-year rise of 19.8%. The consumer price index (CPI) last month rose by 0.59% compared to August, expanding 1.83% against December 2016, and 3.04% year-on-year. Overall, the average CPI inched up 3.79% in the year to September. As such, the target to curb inflation and keep the all-year CPI of less than 4% is attainable. Direct and indirect foreign investments amounted to US$25.5 billion in the nine months, increasing by 34.3% year-on-year. The country has had over 93,900 startups with total registered capital of around VND902.7 trillion in the nine-month period, up 15.4% and 43% respectively over the same period last year. Notably, around 21,100 suspended enterprises had resumed operations, rising 2.9% year-on-year and bringing the total number of businesses that have been newly established and resumed business to over 115,000. The GSO general director said this year’s 6.7% growth target will come true if the GDP in the last quarter reaches 7.31%. This is an ambitious target, however. He stressed the positive results in the past nine months, especially the trend in the third quarter, has created a strong momentum, and thus the GDP growth target for 2017 will likely be met. Export import turnover might reach $400 billion this year With the export import turnover of over US$30 billion a month as present, Vietnam might obtain an extra of $100 billion in the fourth quarter and set a new record of up $400 billion a year.  According to the General Department of Vietnam Customs, export import value totaled $37.6 billion in September, up 0.9 percent over the same period last year. During the first nine months this year, the value is estimated to reach $308.51 billion, up 21.4 percent over the same period last year. That is a positive sign as the value has been nearly triple that during the same period last year. Of these, export value hit $154.03 billion, increasing 19.8 percent and import hit $154.48 billion, hiking 23.1 percent. HCMC posts year on year GRDP growth rate The Gross Regional Domestic Product (GRDP) in HCMC reached 7.97 percent in the first nine months this year, higher than 7.76 percent during the same period last year. That was reported at the opening session of the 14th conference of the executive board of the HCMC Party Committee on October 3. Economic structure has changed according to growth model. Service sector accounted for 57.2 percent, industry and construction 25.1 percent and agriculture 0.7 percent. Total retail sales of goods and services is estimated to increase 10.82 percent and total export turnover hit $26.3 billion, up 15.7 percent. Import increased 16.9 percent, up 13 percent. Social investment capital made up 30.6 percent of GRDP. Of these, the city gave capital priority to implementing key projects to solve urgent issues such as traffic jam and flooding and seven breakthrough programs of the city. First unique fair of Ngoc Linh ginseng in Quang Nam Province The first unique fair of Ngoc Linh ginseng opened on October 1 in the central province of Quang Nam's Nam Tra My mountainous district, the habitat of the plant.  The event in the district culture, sport center with over 50 booths including 20 booths displaying Ngoc Linh ginseng and its products and 30 booths exhibited agriculturre and forestry product and handicrafts such as sinnamon Tra My, visually-striking Vietnamese tho cam (brocade), various herbs and specific produces of the mountainous district. As per the organizer, it is planned to sell 20 – 50 kilogram of fresh gingseng at the fair. Price of a ginseng fluctuates from VND55 – VND65 million ($2,420 - $2,860) per kilogram ( 36 bulbs of ginseng per one kilogram)  and VND80 – VND90 million ( ten bulbs of ginseng per kilogram), while fresh leave fetches VND5.5 – 6.5 million a kilogram. Especially, some ginseng with beautiful shape has cost of tens of millions of dong. Chairman of People's Committee in Nam Tra My District Ho Quang Buu said the fair is organized to bring genuine gingseng to customers; accordingly, a group of gingseng experts is present at the fair to verify the products as well as instruct people how to distinguish fake and genuine gingseng. People's Committee will be held accountable if people detect fake gingseng at the fair. Additionaly, there had been exchange people with farmers and enterprises and visitors enjoyed dishes of mountainous residents. Root of Ngoc Linh Ginseng contains 52 saporins. It is recognized as one of the five most valuable and rare ginseng species in the world because it possesses such a diversity of medicinal properties. Accordingly, the Prime Minister June 5 signed a decision to recognize the ginseng as the national product. Ginseng was first found on Ngoc Linh Mountain on the border between the Central Highlands Kon Tum Province and Quang Nam in the late 1960s. Since then, the two provinces have cooperated to preserve and grow the precious tree. Quang Nam province has 15,000 hectares of land for growing the ginseng. Vietnam seeks to diversify its seafood markets as exports to US decline The United States remains one of the largest importers of Vietnamese shrimp and catfish but revenues from this market have been falling in recent months, forcing Vietnamese exporters to seek new markets. According to the VASEP, an association of seafood producers and exporters, Vietnam’s catfish exports to the US reached US$18.44 million in August, down 58.5% from the previous month and down 54.8% compared with the same month of 2016. Total catfish export revenues to the world’s largest economy in the seven months through to July only rose by 3.3% over the same period of last year to US$220.8 million. Shrimp exports to the US declined 5.5% during the period, while exports to Japan, the European Union and China surged by 35.2%, 20.5% and 106.3% respectively, throwing the US into fourth position among the largest export markets of Vietnamese shrimps. Such a decrease was attributed to the US imposition of trade protection measures on Vietnamese seafood, which levied the highest anti-dumping taxes among Vietnam, India and Thailand. Meanwhile, the price of raw shrimp in the domestic markets has also been rising steadily and remains high, thereby increasing input costs and weakening the competitiveness of Vietnamese shrimp products in comparison with those of Indonesia, India and Thailand. Furthermore, the sharp decline of catfish exports to the US in August was attributed to a decision by the US Food Safety and Inspection Service to inspect all shipments of Vietnamese catfish as of August 2. According to the VASEP Secretary-General Truong Dinh Hoa the 5.5% decline in shrimp exports to the US is not too large but is a warning for Vietnamese seafood enterprises as for years the US has been the largest importer of this food. Therefore in the long run, it is necessary to seek solutions to both deal with the technical barriers from the US and to introduce Vietnamese shrimp to other markets. Currently Japan’s demand for Vietnamese shrimp is rising and the world’s third largest economy is expected to become a steady market for a long time. In addition, China has recently emerged as a new destination for Vietnamese shrimp but, according to many exporters, the market is not quite stable. Besides these aforementioned markets, the Republic of Korea, Australia and Brazil are new potential markets for Vietnamese enterprises’ export market diversification strategies. In addition to shrimp, Vietnamese catfish processors and exporters should make efforts to raise their product quality. These enterprises have stated that they will be more careful in selecting raw catfish for processing when exporting to the US, while striving to penetrate other markets and focusing on the domestic market which has been neglected for years. Creating motivation for sustainable economic growth The impressive gross domestic product (GDP) growth rate of 7.46% in the third quarter of 2017 has opened up the possibility of achieving the economic growth target of 6.7% for the whole of 2017. However, experts say that the most important thing is to create a driving force for sustainable economic growth. According to the General Statistics Office (GSO), the GDP in the third quarter of 2017 was estimated to increase by 7.46%, raising the GDP growth rate in the first nine months of the year to 6.41%. GSO General Director Nguyen Bich Lam said that the spectacular growth rate was attributed to advances in numerous economic sectors. The aquatic sector recorded a 5.42% increase over the same period in 2016, contributing 0.17 percentage points to the overall economic growth rate, demonstrating the efficiency of converting rice cultivation to aquaculture. In particular, for the first time in many years, the processing and manufacturing industry has grown impressively at 12.77%, thanks to significant contributions from various sectors, including electronic products. The production of electronic products grew 45.5% in the third quarter of this year (mainly due to the launch of Samsung's mobile product Galaxy Note 8), which is much higher than the growth rate of 5.9% witnessed in the first quarter and the 23.5% in the second quarter of this year. The revenue of electronics products in 2017 is forecast to increase by 17.7% over 2016, raising expectations for the high growth of the processing and manufacturing industry this year. In addition, the service sector has also seen advances, with a 9.2% increase in the total retail sales of goods and services in the first nine months of this year, contributing significantly to the national economic growth. GSO General Director Lam said that the GDP growth rate should increase by 7,31% in the fourth quarter in order to achieve the set target of 6.7% for the whole year, noting that this is not an easy task as statistics from 2011 to 2016 show that Vietnam has never achieved such a growth rate. However, with the spectacular growth in the third quarter, it is possible to expect a breakthrough in the fourth quarter, Lam added. Dr. Le Dinh An, former director of the National Centre for Socio-Economic Information and Forecasting, said that based on the published GDP statistics, there is a clear basis to believe that the government will achieve the GDP growth target of 6.7% this year. In addition, factors that have pushed up the economic growth in the third quarter, such as mining and exports of electronic products, are forecast to advance further in the fourth quarter. Lam noted that Vietnam still faces many challenges despite the possibility of achieving the set growth target for the whole year. The State budget revenue and expenditure were too slow in the first nine months of this year. The total State budget revenue, as of September 15, was estimated at VND786.3 trillion (US$34.59 billion), equivalent to 64.9% of the year's estimate and the total budget expenditure was estimated at VND851.5 trillion (US$37.46 billion), equivalent to 61.2% of the year's estimate. Therefore, in the time ahead, Vietnam should develop measures to fulfil the task of State budget revenue and expenditure in 2017. Besides, unexpected natural disasters have also created negative impacts on agricultural production, requiring further efforts from the related authorised agencies in the remaining months of the year. The total damage caused by natural disasters in the past nine months was estimated at nearly VND21.5 trillion (US$946 million), equivalent to approximately 0.64% of the GDP. Dr. Le Dinh An stated that the impressive growth in the third quarter is a great sign, demonstrating that the efforts of the Government have paid off. However, Vietnam has yet to finish renewing its growth model and building an economy with an advanced development model. An added that the total investment capital for development purposes in the first nine months of 2017 was estimated to account for 33.9% of the GDP, showing that growth was mainly based on capital investment which is a primitive growth model that Vietnam is striving to change. In addition, Vietnam is relying on cheap labour and conducting outwork which can be seen by the significant contributions made by Samsung to the economic growth. Dr. Vu Dinh Anh said that the high growth rate in the third quarter is a big surprise and the growth rate target of 6.7% for the entire 2017 is feasible, while recommending that the Government reviews the adjustment of micro-policies to ensure sustainable growth in the future. UOB launches Business Banking service for SMEs Singapore’s United Overseas Bank (UOB) has launched a Business Banking service dedicated to help small businesses in Vietnam grow. This follows the State Bank of Vietnam’s licensing of UOB as a foreign-owned subsidiary bank on September 26. Mr. Lawrence Loh, UOB’s Head of Group Business Banking, said the bank is committed to supporting the growth of Vietnamese small and medium-sized enterprises (SMEs), which, in turn, have a major role to play in the country’s continued economic development.  “SMEs are the backbone of economies in Asia, and account for 97 per cent of Vietnamese companies,” Mr. Loh said. “They are essential to the health of the economy through the goods and services they provide and the jobs they create. Over the last 80 years, UOB has gained first-hand understanding of what it takes to help small businesses prosper and to grow. We have designed our business banking services specifically to meet the needs of small businesses, to enable them to seize business opportunities such as exporting their products and services overseas.” “To make it easier for small businesses to apply for the services they need, we are also introducing the first in-market digital solutions,” he went on. “For example, companies can easily submit their account application through UOB Vietnam’s website or the bank’s mobile app for businesses, UOB Business, without needing to visit the UOB branch. UOB will then process the application and, if approved, the business can use their account or receive in-principle approval for their loan applications in just one business day.” To help small business owners manage their business more effectively, UOB has put together a range of financial solutions to meet their unique needs. This includes transaction accounts to manage day-to-day expenses and operations, small business loans to finance the growth of the business and extend cash flows, and trade financing solutions to manage import and export supply chain payments. One company that has used UOB’s Business Banking services is the Grown Tech Company, specializing in mobile and tablet trading. The company aimed to increase sales by introducing new products to its customers and needed additional capital to do so. “We have been growing our business steadily through online sales channels and recognized that we needed new products to meet the increasing demand from our customers,” said Ms. Dang Thi Khanh Le, Managing Director of the Grown Tech Company. “We faced many difficulties in trying to secure the funding needed until we started working with UOB. We received prompt approval from the bank and the funds enabled us to expand our product range to grow our business.” Mr. Harry Loh, Vietnam Country Manager, UOB Ho Chi Minh City Branch, said that UOB will organize knowledge-sharing seminars in the city, through which small business owners can learn from their peers and adapt the experience to finance the growth of their business more effectively. The seminars will also offer insight into the ways in which they can use digital solutions to take advantage of export opportunities. “Running an SME is demanding and often leaves business owners with little time to identify new business opportunities,” he said. “Through the seminars, we hope that SMEs in Vietnam will be able to learn from the experiences of others and use the insights to optimize the output of their business strategy and leapfrog to the next stage of growth.” Talentnet to hold first Business Innovation Showcase in Singapore October 25 to 27 tour to Singapore to provide opportunities for Vietnamese business leaders and HR heads to engage with six award-winning companies recognized for their best business and talent management strategies. The Talentnet Corporation has announced it will host its first Business Innovation Showcase on October 25 to 27 in Singapore, offering enterprises an exclusive three-day journey of networking in the island state with the theme “Cultivating Growth Through Creative & Proactive Business and People Management Practices”. Designed for business leaders and human resources (HR) heads, the tour aims at providing opportunities to engage with six award-winning companies recognized for their best business and talent management strategies: Cisco, Dimension Data, LinkedIn, NatSteel Holding, SATS, and the Sentosa Development Corporation. Exclusively for Vietnamese businesses and HR leaders, the intimate tour will provide a networking platform where these leading Singaporean companies will share their success stories on how cultural and workplace transformation have positively impacted their business outcomes. Those on the tour will also have the opportunity to network and engage with winners of the Singapore HR Awards and leading experts from the Singapore Human Resources Institute (SHRI). Participating companies can also engage with leading HR experts and strategic business developers to gain a deeper understanding into leading HR practices for business innovation, leading HR models for business growth and talent management, and leadership development strategies. In August this year Talentnet held the Vietnam HR Awards 2017 and post-event activities to honor enterprises for their excellent HR policies since 2014. It also announced a strategic partnership between itself and the Singapore Management University - SMU Academy, in upgrading the profile of Vietnam’s workforce in the region. Sea seizes 82 per cent of Foody Sea, formerly known as Garena, was rumoured to have successfully bought 82 per cent of Foody’s shares, officially becoming the largest shareholder of the Vietnamese gourmet application. According to newswire Deal Street Asia, rumour has it Southeast Asia’s Sea Ltd., spent $64 million purchasing shares of a Vietnam-based company that provides restaurant reviews and supports customers on their quest to find memorable culinary experiences. In late September, according to the national business registration system, foreign-owned firm Airview Investment, Sea’s official contact entity in Singapore, acquired a total of 415,652 public shares of Foody, approximately 82 per cent. However, both Sea and Foody have not yet confirmed this information. Given the past relations between Singaporean and Vietnamese companies in the e-commerce industry, the aforementioned company is likely to be Foody. Earlier, in 2016, Sea also made its way into the Southeast Asia by pouring investment in Hanoi-based flash deal startup Jamja.vn. In May 2017, Sea raised a hefty $550 million in series E funding and was re-branded to Sea Limited. “We intend to take advantage of investment opportunities and purchase strategies to develop customer database, enhancing market penetration and continuing to complement subsidiary services and products,” Sea’s spokesperson noted. At the time, the rebranding decision was the outcome of Sea’s strategy of business diversification and expansion in order to compete with other e-commerce giants like Lazada (backed by Alibaba) and Amazon, which has been hinting at penetrating the same target region. Meanwhile, the acquisition of Foody could also expand Airpay, the company’s online payment platform. Another Foody operation, DeliveryNow, is utilising the Airpay’s platform. The financial services platform was introduced in Vietnam in 2014. To date, the company’s portfolio includes the Garena platform, Airpay, and online shopping application Shopee, all of which have been introduced in Vietnam. “Our capability of penetrating the Greater Southeast Asia market is still fairly limited due to the number of subscribers and our share of discretionary consumer purchases. We also believe that expanding our trademark will deepen our moats to defend the company’s position in the e-commerce market,” Sea’s representative shared with Deal Street Asia. Greater Southeast Asia implies the seven e-commerce markets of Singapore, Malaysia, Taiwan, Thailand, Indonesia, the Philippines, and Vietnam. Sea raised series B funding (expanding market reach) in Foody in July 2015. Founded in 2012, Foody is one of the most successful start-up stories in Vietnam. Meanwhile, Tiger Global Management raised series C funding (injecting capital into the business to gain more profit) at the same time as Sea. KDF becomes new UpCom eye-candy At the first transaction session on the Hanoi Stock Exchange (HNX)’s UpCom trading platform under the code KDF, Kido Frozen Foods’ shares saw avid attention from foreign investors. Notably, on September 28, KDF made 56 million shares, representing a capitalisation of VND2.71 trillion ($119.2 million), officially available for trading at the initial reference price of VND60,000 ($2.64) apiece. After the first transaction, 1.17 million shares were handed over to investors, 678,000 shares of which were taken over by foreign investors. On the second day of transaction, foreign investors continued buying into the company with gusto. According to Euromonitor’s report, in 2017, the Vietnamese ice-cream and frozen dessert industry has soared by 7 per cent in quantity and 15 per cent in value. KDF maintains its first position in terms of market share with 40 per cent, up 2 per cent on-year. Euromonitor, the world's leading independent provider of strategic market research, reported that KDF has numerous competitive advantages, including advantages in terms of taste, price, product diversity, as well as coverage. The market research firm highlighted Merino and Celano as two of KDF’s outstanding brands. At present, KDF’s products are sold in two channels. One is the traditional channel, including distributors, second-tier agencies, and retail agencies, while the second is a more modern channel, namely supermarkets, convenience stores, hospitals, industrial parks, canteens, as well as large-scale amusement areas. In the coming time, convenience stores, supermarkets, and hypermarkets are considered important distribution channels of the ice-cream industry in general and KDF in particular. In 2017, KDF has opened an additional 10,000 retail points, increasing the number of its total retail points to 80,000 across the country. Continuously expanding its distribution system and diversifying its products have contributed to KDF’s increase in market share, leading to an increase in revenue. Notably, in the nine months of this year, the company earned VND1.23 trillion ($54.1 million) in net revenue, up 7.8 per cent on-year. The company has been investing in facilities, including factories and freezers for retail agencies, to expand its operation. Notably, in November 2016, it took the Bac Ninh frozen food factory into operation, with the annual capacity of 6,000 tonnes of ice-cream and 9,000 tonnes of yogurt, 170 per cent higher than the total capacity of its existing factory in Ho Chi Minh City. The factory helps to decrease logistics expenditure and contributes to increasing the coverage for its products in the northern region. Besides, it bought an additional 10,000 freezers for retailers, increasing the number of its total freezers to 50,000. According to the KDF management board, the expenditures for operation expansion have short-term impacts on revenue and profit, however, these investments are necessary to maintain its leading position as well as penetrate the frozen food manufacturing industry, which is considered more lucrative than the ice-cream sector, with the expected value of VND4.19 trillion ($184.3 million) by 2022. In 2016, KDF started expanding its operations in the frozen food manufacturing sector via debuting a variety of dumplings to meet the different demands for taste in different regions. Besides, KDF also entered into a co-operation with Dabaco Foodstuffs Processing Co., Ltd. to produce numerous new frozen products, including fresh sausages and canned food among others, which are expected to debut in the fourth quarter of this year. Isuzu Vietnam Auto Care Centre rolls into service Isuzu Vietnam Auto Care Centre promises to be Isuzu’s strategic step in winning Vietnamese customers’ hearts.  Isuzu Vietnam, part of Japanese automotive giant Isuzu Motors, officially inaugurated Isuzu Vietnam Auto Car Centre (IAC) on September 29 at Tan Phu Trung Industrial Zone in Ho Chi Minh City’s Cu Chi district. Kicked-off construction on March 23, 2017, after six-month intensive construction, IAC which is located at lot B6-6, Bloc B6, D2 Road in Tan Phu Trung IZ, has completed construction and is slated to commence operation from this month. IAC is designated to handle three core functions: a training base of repair and maintenance skills for truck and pickup lines for Isuzu agent technicians; a warehouse centre where genuine components and parts are kept in a big volume to meet burgeoning market demands; and providing support to Isuzu sales agents in major overhauls going beyond the agents’ capacity. Isuzu Vietnam has been developing by leaps and bounds in the Vietnamese market in recent years, attesting through its strong investment commitments. Besides expanding the agent network and promoting commercial and family-oriented vehicle lines the company has been constantly trying for perfection in the components and after-sales service aspect. In addition, with the commitment of Northwest Saigon City Development Corporation (SCD) - the developer of Tan Phu Trung IZ in providing utmost support to the investors, IAC promises to be Isuzu’s strategic step in satisfying Vietnamese customers’ demands. Isuzu Vietnam is a joint venture operating in assembling and distributing vehicles with the brand Isuzu, the world leading brand for commercial vehicles and diesel engines. The company chose Tan Phu Trung IZ as the location for its auto care centre due to the latter’s convenient location, smart planning and investment incentives that have made the IZ very appealing to both domestic and foreign investors. EU – major importer of Vietnam bamboo, rattan, sedge products  Vietnam bamboo, rattan and sedge products have been exported to more than 20 countries in the world, of which the EU made up 35.5% of total value, according to the General Department of Vietnam Customs. Exports of these products hit US$170.7 million in the first eight months of this year, up 1.5% against the same period last year. The EU was the biggest consumer of Vietnam products with US$60.7 million in eight months (up 7.76%), trailed by Japan and the US with US$5 million and US$4.4 million, respectively. Other markets having value of more than US$1 million each included Germany (US$2 million), the Republic of Korea (US$1.2 million) and Australia (US$1 million). Generally, 61.9% of markets obtained growth in the first eight months. Belgium saw the highest growth of 52% to US$2.4 million. Thanh Hoa province promotes investment in Germany A conference was held in Berlin on October 2 to promote investment in the north-central province of Thanh Hoa as part of the working trip to Germany by senior officials from the Vietnamese province. The visit marked a new development in the relations between Thanh Hoa and Germany in general and German business community in particular. Chairman of the provincial People’s Committee and Vice Secretary of the provincial Party Committee Nguyen Dinh Xung introduced his province’s strengths and potential with rich minerals and abundant human resources as well as numerous incentives.  The province has seen vigorous and comprehensive development in all fields in recent years, he noted. Germany is one of the leading industrialised countries in Europe and its businesses boast huge potential with high technologies, he said, adding that this is the reason why Thanh Hoa authorities want to learn experience from the country. The conference creates a good chance for Thanh Hoa to introduce its advantages to German firms as well as share information and cooperation opportunities in the fields of mutual interests, he said. Xung pledged to create the best conditions for German investors to do business in the province. Thanh Hoa will be a reliable and long-term partner of foreign businesses, especially those from Germany, he affirmed. Vietnamese Trade Counsellor Nguyen Huu Trang said Germany, a leading economy in the world with strengths in industry and services, is proactively seeking investment cooperation opportunities with countries, including Vietnam. Thanh Hoa has a lot of attractive fields to German investors, he said, urging local authorities to devise more incentives to facilitate their investment. Many German businesses attending the event expressed their wish to explore the investment opportunities in the Vietnamese locality. Contract signed for world’s most modern hot-rolled mill Hoa Phat Dung Quat Steel Joint Stock Company and Italy’s metal plants supplier Danieli Company have signed a contract to install thin slab caster and hot-rolled mill for the Hoa Phat Dung Quat iron and steel production complex in the central province of Quang Ngai. Under the contract, Danieli will be responsible for supplying equipment to the Quality Strip Production (QSP) line and Compact Endless Cast and Rolling Mill Complex, consisting of two casting machines, two tunnel furnaces and one lamination mill. The plant is expected to produce 3.5 million tonnes of steel per year and its capacity can be expanded to 4 million tonnes per year for the second phase. Steel products will include hot rolled steel coil, low carbon steel, high strength low alloy steel and medium carbon, high strength medium alloy steel. They are used for producing special steel pipes, roofing and other special products. Currently, these products are being completely imported. Tran Dinh Long, Chairman of the Hoa Phat Group, stressed that the categories of thin slab caster and hot-rolled mill were most important for the Hoa Phat Dung Quat iron and steel production complex. The complex is designed to have an annual capacity of 4 million tonnes. Work on its first phase kicked off in February 2017 and is scheduled to finish within 21 months. The second phase of the project also began in August 2017 and the whole project is expected for completion in late 2019. Local large cap stocks perform poorly Shares on October 2 fell further on the HCM Stock Exchange as large-cap stocks continued performing negatively on poor market sentiment. The benchmark VN-Index on the southern market lost 0.27 percent to close at 802.23 points. It was down 0.05 percent on September 29. The VN-Index had rose as much as 0.45 percent to reach its intraday high of 808.09 points during October 2’s session. Nearly 119.5 million shares were traded on the southern exchange, worth 2.78 trillion VND (123.8 million USD). October 2’s trading figures were down 14.3 percent in volume and 10 percent in value compared to September 29. These were also the lowest liquidity figures recorded since February 2017. Large-cap stocks underperformed with the VN30 Index, which tracks the performance of the 30 largest companies by market capitalisation and liquidity, fell 0.25 percent to 790.70 points. Seventeen of the 30 largest companies in the VN30 basket declined while 12 others advanced and only one closed flat. The worst decliners included insurance-finance firm Bao Viet Holdings (BVH), Thanh Thanh Cong Tay Ninh Sugar Co (SBT), Sacombank (STB) and food producer Kido Group (KDC). Foreign investors remained net buyers but their net sell value on October 2 dropped 5.4 percent to 45.8 billion VND from September 29. “The first trading session of October was very bad, with liquidity dropping sharply, gainers being outnumbered by losers by nearly a 2:1 ratio and foreign investment being weak,” Vietnam Investment Securities Company (IVS) said in its daily report. The VN-Index had weakened considerably in the late period of the last three trading sessions and the benchmark is now only two points away from 800 points, IVS said. “If the VN-Index fails to hold onto that level, the stock market will likely go through a hard-correction period.” However, there is a chance that the VN-Index could move narrowly around the level of 800 points without any positive signals about its future development, the brokerage said. “The market will continue weakening and may extend its correction to the end of the year if demand remains negative,” IVS said. In addition, the third-quarter earnings reports were unlikely to provide a strong boost for local stocks as investors had already priced in the gains of those stocks based on forecasts and intel sources of higher earnings results, the securities company said. On the Hanoi Stock Exchange, the HNX-Index inched down 0.13 percent to end at 107.51 points. It gained 0.2 percent on September 29. Nearly 52 million shares were traded on the northern market, worth 468.7 billion VND. Retail sales post significant increase in 9 months The total retail sale value of goods and services from January to  September posted the highest year-on-year increase in 2017, according to the General Statistics Office (GSO). The latest updates revealed that the total retail sale jumped by 10.5 percent over the same period last year, and 9.2 percent if inflation was excluded, with a value touching more than 2.9 quadrillion VND (129.6 billion USD). In comparison, the increases were 8.9 percent in the eight-month and 8.7 percent in the seven-month periods, and 8.4 percent in the first half of this year. The increase in the retail sale of the service sector contributed significantly to the country’s gross domestic product (GDP) growth in the first nine months of this year, even higher than the contribution of the finance-banking and insurance sector and real estate business, according to GSO. In the service sector, accommodation and catering services increased by 12 percent to touch 362.5 trillion VND, largely thanks to the improving tourism revenue. The retail sales of the goods totalled 2.18 quadrillion VND, up by 10.5 percent, in which, food and foodstuff was up by 9.8 percent, household appliances sales went up 11.3 percent, garment sales went up 14.9 percent, and the transport means went up 24.9 percent. According to Nguyen Bich Lam, GSO’s General Director, the considerable increase in the retail sale of the service sector demonstrated the transition of Vietnam’s economic structure. The country’s GDP grew 6.41 percent from January to September. Binh Duong: Industrial production index rises 9.48 percent The southern province of Binh Duong enjoyed a month-on-month rise of 5.09 percent in index of industrial production (IIP) in September and a 9.48 percent year-on-year increase in the first nine months of this year. According to the provincial People’s Committee, the number of workers in local firms in the reviewed period rose 1.76 percent from the previous month. The figure in State-owned enterprises was up 1.88 percent, while that of foreign direct invested firms was up 1.69 percent. Since early this year, the processing and manufacturing industry contributed 96 percent of total value of the sector. Some sectors recording good growth included food processing with 5.1 percent; garment, 5.7 percent; leather and related products, 11.9 percent; paper and pulp products, 6.2 percent; rubber and plastics, 12.7 percent; electronics, computers and optical products, 18.4 percent. The committee also revealed that along with support policies, the province has promptly remove obstacles and created favourable conditions for enterprises to improve competitiveness and expand market. The province expects good growth in the local index of industrial production in the rest of the year. Toyota technical training centre opens in Vinh Long The Vinh Long University of Technology Education and Toyota Motor Vietnam (TMV) launched a technical training centre in the Mekong Delta province of Vinh Long on October 2. This is the first time TMV has expanded its training programme to the south-western region in order to meet increasing demand for human resources for the automobile industry. In the first phase of the programme (2017-2020), TMV will support the university with modern equipment worth 80,000 USD to serve auto repair training. Rector of the university Cao Hung Phi said the university is one of the leading auto training facilities in the south, which is tasked to supply hi-tech human resources, particularly for the south-western and southern regions. Director General of TMV Toru Kinoshita said the centre is the sixth of its kind of the company in Vietnam.  He said he believes that the Vinh Long University of Technology Education will become a key high-quality training centre that is able to provide skilled technicians for TMV in the future. The Toyota technical training programme has been carried out by TMV since 2000 with a view to helping students from auto vocational training colleges access Toyota technologies. So far, more than 2,500 students have received training under the programme, including 540 recruited to work in TMV agents nationwide. WB pledges to help Hanoi launch more BRT routes The World Bank (WB) will continue sharing its experience and providing more financial assistance for Hanoi to launch more Bus Rapid Transit (BRT) routes, a WB specialist has said. During his working session with the municipal People’s Committee in Hanoi on October 2, Franz Drees-Gross, Director of the WB’s Transport and ICT Global Practice, highlighted the popularity of BRT in the world, saying that it has resulted in long-term benefits in transport and urban planning. He expressed his belief that the BRT model will soon prove effective in Hanoi. The World Bank will continue serving as a bridge connecting Hanoi with other cities in the Southeast Asian nations, he pledged. For his part, Vice Chairman of the municipal People’s Committee Nguyen Quoc Hung said the city will continue gathering comments from international experts and the community to enhance the operation and management of the BRT network to better serve residents. He also expressed his hope that the WB will continue providing active support for the city’s transport projects, contributing to the development of the capital city. The first BRT route, funded by the World Bank, was launched in Hanoi in late December last year, making Vietnam the eighth country in Southeast Asia to implement BRT. The system has helped ease traffic congestion in Hanoi. Reference exchange rate up 5 VND The daily reference exchange rate for VND/USD was set at 22,473 VND per USD on October 3, up 5 VND from the previous day.  With the current trading band of /-3 percent, the ceiling rate applied to commercial banks during the day is 23,146 VND and the floor rate 21,800 VND.  The opening hour rates at major commercial banks remain stable, with Vietcombank, BIDV and Vietinbank kept their rates unchanged from October 2.  The greenback is traded at 22,690 VND (buying) and 22,760 VND (selling) at Vietcombank and 22,695 VND (buying) and 22,765 VND (selling) at BIDV.  Vietinbank listed its buying rate at 22,690 VND and selling rate 22,760 VND per USD. VinFast announces collection of sedan vehicles, SUVs      VinFast, the first Vietnamese automobile manufacturing complex opened by Vingroup, presented 20 sedan and SUV designs and officially launched a public contest to select the most favourite car models in Viet Nam on October 2. This is the first time that the Vietnamese people have been asked for their inputs, along with the automaker, to find modern cars matching with the world trend and is suitable with the tastes and demands of the Vietnamese market. The 20 vehicles designed specifically for VinFast come from four world renowned car design studios -- Pininfarina, Zagato, Torino and Ital Design -- who have brought to VinFast an impressive collection. Interestingly, despite different design styles, the cars have three things in common – luxury, modernity and following the global trend of high-end cars. The competition is aimed at understanding the expectations of the majority of domestic customers to find two luxurious and useful models of sedan and SUV that reflect the spirit and philosophy of the Vietnamese people. The 20 vehicles designed specifically for VinFast come from four world renowned car design studios including Pininfarina, Zagato, Torino and Ital Design. From October 2 to 16, the customers can vote on website http://www.binhchonmauxe.vinfast.vn. Each sample has a variety of images from different angles to showcase the car’s style and parts. Besides this, participants also have the opportunity to win attractive prizes. The first prize is worth up to VND500 million for those who have selected the best models under the two categories of sedan and SUV. In addition, VinFast will also host many interesting mini-games on its fanpage so that customers can directly share and comment on the models. "We want consumers to put their minds to the question – "What type of VinFast car do you want to own in the future?" The comments will be valuable motivation for us to produce cars which are not only safe and of high quality but also sleek and modern in line with the world trend and suitable for the people and topography of Viet Nam," Vice Chairman of Vingroup Nguyen Viet Quang said. With the motto Style - Safety - Innovation - Innovation - Pioneer, VinFast is utilising all its resources to roll out the first car in September 2019. Besides the selection and approval of vehicle designs, the company is also working with its partners, who are leaders in technology and consultancy, and market research companies to realise the dream of making a Vietnamese car that meets international standards.  Award winning car model contest The prizes of the VinFast car contest will have total value of VND1.1 billion (US$48,298), including the following: • First prize goes to the participant who meets both the conditions: (i) Selects the right sedan and SUV with the highest ratings. (ii) Predicts the correct ratings for the two models. • Two second prizes -- for one participant who votes sedan and one participant who votes SUV. The winners will be people who vote the most popular vehicles and mostpredicted the percentage of participants who have made the same selection but not won the first prize (If more people have the same result, the earliest participants cwill win). The prize is a voucher worth VND50 million, which can be used to purchase goods and services in the ecosystem of Vingroup. • 30 third prizes for 15 participants who voted sedan and 15 participants who voted SUV. The winners will be people who vote the most popular vehicles and mostpredicted the percentage of participants who have made the same selection but not won the second prize (If more people have the same result, the earliest participants cwill win). The prize is a voucher worth VND10 million, which can be used to purchase goods and services in the ecosystem of Vingroup. • 100 encouragement prizes for all eligible participants (who did not win the first prize, second and third prizes) who have the chance to win the award through random selection. The prize value is one VinID card worth VND2 million. VNA/VNS/VOV/SGT/SGGP/TT/TN/Dantri/VNEVET