Reference exchange rate for VND/USD rises by VND9

The reference exchange rate for Vietnamese dong against the US dollar was announced at 21,949 VND per USD for September 30 morning, up 9 VND from the previous day. 

With the current +/- 3 percent VND/USD trading band, the ceiling exchange rate is 22,607 VND per USD and the floor rate is 21,290 VND per USD. 

Slight changes were recorded in the USD price listed by commercial banks. 

The Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) posted buying and selling prices at 22,270 - 22,340 VND per US dollar the same morning, unchanged compared to the same time of the previous day. 

Rates were listed at 22,265 – 22,335 VND/USD by the Bank for Investment and Development of Vietnam (BIDV), and at 22,255 – 22,335 VND per USD by the Vietnam Import-Export Commercial Joint Stock Bank (Eximbank). 

Both buying/selling rates at BIDV and Eximbank declined by 5 VND from the morning of September 29. 

Meanwhile, the Vietnam Technological and Commercial Joint Stock Bank (Techcombank) revised the buying rate down by 5 VND and maintained the same selling rate as the previous day. It listed the exchange rate at 22,255 – 22,350 VND (buying/selling) per USD.

Vietnam-Australia trade booming

Vietnam is Australia’s fastest growing ASEAN trading partner as a result of trade deals like ASEAN Australia New Zealand FTA and proposed ones like the Regional Comprehensive Economic Partnership and Trans-Pacific Partnership, HSBC has said in a recent report. 

Vietnam is Australia’s second smallest trading partner among the six ASEAN countries studied in the ASEAN Connected report, with bilateral trade standing at just over 10 billion AUD (770 million USD) in 2015. 

The other five countries are Singapore, Malaysia, the Philippines, Indonesia, and Thailand. 

This is around a third of Australia’s trade with Singapore and half of the trade with Thailand and Malaysia. 

But the relationship is rapidly growing, increasing by 12 percent last year. 

Australian companies can benefit from Vietnam market access provided by AANZFTA, an agreement especially useful in Vietnam’s case considering Australia lacks a bilateral FTA with the country. 

Vietnam is party to both the TPP and RCEP negotiations, and, as a developing country in need of numerous reforms, stands to be one of the biggest beneficiaries of further economic liberalisation through these initiatives. The AEC is likely to have a similar reform-boosting effect. 

According to the report, Vietnam’s rapid economic growth is creating a big opportunity for Australian education services, particularly in the tertiary and professional areas. 

Australia is already the leading study destination for Vietnamese students, almost 30,000 of whom were enrolled in Australian institutions last year. 

This makes Vietnam the third largest source of overseas students for Australia after China and India. The education opportunity in Vietnam is large, growing, and multi-faceted. Australia is in a strong position to capitalise on this, considering its well-known education strengths and expertise. 

According to Australia’s Department of Foreign Affairs and Trade, education is currently Australia’s largest export to Vietnam and a key component of the bilateral relationship. 

The report, covering 83 mid-market Australian enterprises, finds that business success relies on an appropriate risk appetite, on-the-ground engagement and an ability to adapt to different business cultures. 

“ASEAN is forecast to become the world’s fourth largest economy by 2050, so it is crucial for Australia to reinforce its competitive position in the region,” HSBC Australia CEO Tony Cripps said. 

“New trade agreements and initiatives such as China’s Belt and Road Initiative provide a strong platform for more Australian companies to tap into ASEAN’s predicted growth.” 

Export Council of Australia CEO Lisa McAuley said, “It is crucial for Australia’s future prosperity that we find ways to reinforce our competitive position in ASEAN, as the region becomes more interconnected and attracts more and more of the world’s best and brightest.” 

Winfield Wong, head of wholesale banking, HSBC Vietnam, said, “There is positivity towards the AEC because it will allow local markets access to broader goods and services. 

“You would also expect more investment, especially from developed countries like Korea, Japan, Thailand, Singapore. 

“We have seen more upscale production starting to move to Vietnam. Some of the internationally well-known electronics firms are not just looking at manufacturing and chip plants, but also R&D centres, which are being set up this year.”.

RoK companies seek investment opportunities in Can Tho

A group of businessmen from the Republic of Korea’s Korean Trade Commission (KTC) visited Mekong Delta Can Tho city to seek investment opportunities. 

At his working session with the businesspeople on September 29, Vo Thanh Thong, Chairman of the Can Tho People’s Committee, said the city is interested in the RoK investors and will create all favourable conditions for the RoK enterprises to invest or cooperate with Vietnamese enterprises in Can Tho. 

Over the past years, the city has carried out commitments with the RoK investors on policies and mechanisms when investing in the city, Thong said, adding that the city is completing procedures to build a hi-tech park and will give incentives to the RoK investors who pour money into the field. 

Eun Sik Hwang, President of the KTC, said Vietnam has become one of the RoK’s leading trade partners. 

KTC members will import Vietnam’s advantageous products, including those produced by the Mekong Delta region and Can Tho city without limit and will export the RoK’s hi-tech products into Vietnam and invest in fields the two sides have demand. 

Eun said the KTC is seeking to establish a Korean and English training centre and a commercial centre in Can Tho to export the Mekong Delta’s signature products to other countries and import products needed by the regional provinces with the support from Can Tho city. 

More and more RoK investors have come to Can Tho city. One of examples is the Taekwang Corporation, the RoK’s leading sports shoes manufacturer, which has commenced the construction of a 170 million USD factory. 

A Vietnam-RoK Industry Technology Incubation worth 21 million USD went into operation in November, 2015. 

The KTC was formed in June, 2015 in Seoul, and the number of members increased from 10 at the beginning to 127 at the moment. Its goal is to support its members to export RoK products and services to the world and import products and services into the RoK.

Jetstar Pacific opens flight tickets for Tet holiday

Low-budget Jestar Pacific will offer more than 18,000 seats per day to meet travel demand in the Tet holiday 2017.

Low-priced tickets will be sold for domestic and international flights before and after Tet (Vietnam’s traditional lunar New Year festival).

On September 30, Jestar Pacific will open the super cheap ticket of 11,000 VND (0.5 USD) for flights which will depart from January 17 to 27, 2017. 

Tickets worth 140,000 VND (6 USD) will be on sale on the first two days of October.

The tickets can be purchased on www.onlinefriday.vn and www.jestar.com. 

Jetstar Pacific is a member of Jestar Group, one of Asia Pacific’s largest low-budget airlines, with flights to 75 destinations in 17 countries and territories.

Regulations on eco-industrial parks to be issued

The Ministry of Planning and Investment (MPI) will include basic regulations on eco-industrial parks (EIPs) in some draft decrees to be submitted to the Government for consideration later this year. 

An expert group meeting on EIPs in Vietnam was held by the MPI and the UN Industrial Development Organisation (UNIDO) in the central province of Quang Nam on September 29. 

Many participants said EIPs are a new model in Vietnam and haven’t been stipulated in any legal document. Basically, an EIP has cleaner production processes with updated technologies to promote energy efficiency. 

To form EIPs, it is necessary to set higher standards for greenhouse gas emissions and waste treatment and encourage the use of recycling and energy reuse technologies. 

By June 2016, Vietnam had 321 industrial parks and export processing zones. They housed over 6,600 FDI projects and 6,200 domestically invested projects with a combined capital of over 105 billion USD and 693 trillion VND (31 billion USD). 

Businesses in industrial parks account for more than 50 percent of industrial production value and 53 percent of export revenue of Vietnam every year, said Tran Duy Dong, Director of the MPI’s Economic Zone Management Department. 

However, industrial activities are posing numerous challenges to the environment and human health. Up to 16 percent of operational industrial parks haven’t had wastewater treatment plants, and 20 percent of industrial waste is hazardous. 

Therefore, building EIPs is critical to improving production efficiency and environmental protection, Dong said. 

The MPI is working with the UNIDO to carry out a 4.5 million USD project on implementing the EIP initiative for sustainable industrial zones in Vietnam. The project is piloted in the industrial parks of Khanh Phu (Ninh Binh province), Khanh Hoa (Da Nang city), and Tra Noc 1 and 2 (Can Tho city).

RoK investors pour more money into Vietnamese stocks

More and more investors from the Republic of Korea (RoK) have been pouring money into the stock market of Vietnam, which sees a relatively high growth rate. 

According to a report from KG Zeroin, a fund rating and consulting company, in September, RoK investors pumped 78.3 billion KRW (71 million USD) into Vietnam’s stock market, much higher than the level of 50 billion KRW (45.4 million USD) in August. 

The increase is significant because RoK investors’ investment in 27 other stock exchanges either increased slightly or decreased. 

According to many analysists, the reason behind the RoK investors’ increased investment is the Vietnamese government’s market-opening policy and a relatively high annual growth rate (about 6.8 percent). 

Expert Oh On-soo from the Huyndai Securities said Vietnam has many advantages, including cheap labour costs and young population structure, noting that it is among countries with great potential of growth.

Over 300 businesses to join online shopping day

More than 300 businesses will participate in the fall online shopping day 2016, which falls on Friday (September 30).

The event is jointly held by the Vietnam E-Commerce and Information Technology Agency under the Ministry of Industry and Trade and the Vietnam E-commerce Association (VECOM).

Nearly 61,000 promotion products will be put on sale on the website OnlineFriday.vn and mobile app.

A new point of this year’s programme is that customers could report violations of businesses to the organising board such as incorrect information of product, quality and promotion prices. The board will handle consumers’ feedback via the Real-Time (the information updating and warning system).

The programme will also launch supporting websites such as Websosanh.vn, Topgia.vn, and Chongiadung.com to help customers choose the best products.

As many as 50,000 products in various categories were on sale at the website www.OnlineFriday.vn during last year’s event.

RoK group builds shoes plant in Can Tho

Teakwang Group of the Republic of Korea began construction of a plant producing semifinished-sport shoes in the Mekong Delta city of Can Tho on September 29.

Covering an area of 62 ha, the project has a total investment of 170 million USD. It is scheduled to complete in 2017, generating about 35,000 jobs and earning 455 million USD in revenues each year..

As the third project of Teakwang in Can Tho, the plant will be equipped with modern production lines and discharge systems meeting regulations of industrial hygiene and environmental protection.

According to Nam Jung Dae, General Director of the Teakwang Can Tho Co., Ltd, the factory will use machineries and equipment in line with standards required by the US’s Nike Inc. Its products will be distributed in accordance with Nike’s orders and exported to countries worldwide.

RoK Consul General in Ho Chi Minh City Park Noh Wan said the project will help Teakwang take full advantage of skilled labour resources in the Vietnamese locality, thus further expanding economic cooperation between the two countries.

The Vietnam-Korea Free Trade Agreement (VKFTA) and others FTAs signed between Vietnam and its partners are facilitating bilateral economic links, contributing to soon realising the two nations’ 70-billion USD trade turnover target by 2020.

Vice Chairman of the Can Tho People’s Committee Truong Quang Hoai Nam said the municipal authorities always consider the RoK a strategic partner in many cooperation projects, expressing his hope that the project will significantly contribute to the city’s socio-economic development in the coming time.

Rice shipments drop in nine months

Vietnam shipped abroad some 3.76 million tonnes of rice worth 1.69 billion USD between January and September, dropping 16.4 percent in volume and 12.5 percent in value from a year earlier. 

About 396,000 tonnes of rice was exported in September, bringing home 176 million USD, according to the Ministry of Agriculture and Rural Development. 

During the first eight months of 2016, though China’s purchase of Vietnamese rice declined 21.4 percent in volume and 12.3 percent in value (to 1.18 million tonnes and 538 million USD) year on year, the country remained the biggest importer of this farm produce of Vietnam. 

China was followed by Ghana, which imported 343,000 tonnes worth 166.4 million USD, up 36.9 percent in volume and 30.6 percent in value. 

Notably, Indonesia’s import of Vietnamese rice shot up 24.3 times in volume and 25.4 times in value, with 359,000 tonnes and 142.5 million USD. 

Meanwhile, sharp falls were seen in the value of rice export to the Philippines (down 67.4 percent), Malaysia (43.3 percent), Singapore (35.7 percent), Ivory Coast (25.3 percent) and China’s Taiwan (14.1 percent). 

The agriculture ministry said the win of a bid to supply 150,000 tonnes of 25-percent broken rice to the Philippines didn’t affect the domestic market. 

Rice prices in the Mekong Delta, the biggest rice hub of Vietnam, continued the downward trend in September due to the big inventory and poor sales while the harvest of early autumn-winter rice crop has begun.

Ho Chi Minh City lures 2.3 billion USD in nine months

The southern metropolis Ho Chi Minh City has attracted 2.3 billion USD in foreign direct investment in the nine months of this year. 

Accordingly, as many as 587 new projects worth more than 751 million USD have been licensed, up 45.3 percent in volume and down 68.2 percent in value year-on-year. Up to 125 projects registered for capital increase with a total value of more than 377 million USD. 

The city also allowed 1,294 foreign investors to buy shares and contributes capital to businesses, amounting to around 1.18 billion USD. 

Twenty investors made deposits to the tune of 15 million USD for their projects, in compliance with the recently-amended Investment Law. 

Real estate sector has absorbed 319.2 million USD, equivalent to 42.5 percent - the largest share of the total FDI capital. It is followed by wholesale and retail and repair of automobiles and motorbikes with 228.5 million USD, accounting for 30.4 percent. The manufacturing and processing sector makes up 10.2 percent with 76.7 million USD, down 86.2 percent annually. 

According to the municipal authorities, the city is focusing on hi-tech manufacturing by promoting research and training in combination with upgrading infrastructure and protecting the environment. 

A number of foreign-invested projects are on the waiting list for licences, namely the Republic of Korea’s Thu Thiem eco smart city worth 900 million USD, and two estate projects of the Cayman Islands worth 300 million USD and 220 million USD, respectively. 

During the period, the city recorded nearly 26,500 new domestic businesses with a total registered capital of 215 trillion VND (9.77 billion USD), up 17.4 percent in number and 48.6 percent in capital. 

At the same time, more than 39,600 businesses raised their capital by a combined 145 trillion VND (6.52 billion USD).

Nine-month GDP grows 5.93 percent year on year

Vietnam’s gross domestic product (GDP) in the first nine months of 2016 expanded by 5.93 percent from a year earlier, according to the General Statistics Office (GSO). 

The country posted continuous quarter-on-quarter GDP rises during the period with 5.48 percent in Q1, 5.78 percent in Q2 and an estimated 6.04 percent in Q3, GSO Director General Nguyen Bich Lam told the media on September 29. 

However, the nine-month figure is still slower than the 6.53 percent recorded in the same period of 2015. 

“That growth rate falls short of expectations,” Lam said. 

The agro-forestry-fishery sector grew 0.65 percent – the lowest year-on-year rate in the last six years, contributing 0.11 percentage point to the overall GDP. 

Industry and construction increased by 7.5 percent while the services sector rose by 6.66 percent, respectively adding 2.52 and 2.55 percentage points to the nine-month figure. 

Although mining, especially crude oil and coal exploitation, has kept contracting, the industrial sector’s stable growth at about 7 percent is attributable to the strong development of processing and manufacturing, said Director of the GSO’s National Accounts Department Ha Quang Tuyen. 

The GSO also noted the low inflation and a year-on-year increase of 6.7-percent in exports between January and September. While credit growth was posted at over 10 percent, the banking system’s Vietnamese dong liquidity has been ensured, and credit institutions’ activities and the monetary market remain stable. 

To achieve this year’s GDP growth target of 6.7 percent, State agencies need to continue a proactive and flexible monetary policy in close coordination with the fiscal policy and inflation control, Lam said. 

Interest and exchange rates must be aligned with domestic and global fluctuations. Agricultural restructuring and rural development must also be accelerated, the GSO Director General said, asking for continued business support and State-owned enterprises restructuring. 

Le Thi Minh Thuy, Director of the GSO’s Trade and Service Statistics Department, called for augmenting the shipment of competitive goods and enhancing trade promotion. 

Tuyen believed that if those suggested solutions are taken, GDP in Q4 will enjoy a breakthrough growth compared to the previous quarters.

US keeps duties on Vietnamese frozen shrimp

US will continue imposing anti-dumping duty on Vietnamese frozen warm water shrimp to the US market after the second five-year sunset review, reported the Vietnam Competition Authority (VCA).

According to the preliminary results of the second five-year sunset review of the antidumping duty order (AD Order) released on September 9, the Department of Commerce (DOC) on March 1, 2016 initiated the second sunset review of certain frozen warm water shrimp from Vietnam.

The department found that revoking the AD Order would be likely to lead to recurrence of dumping at the levels indicated in the "Preliminary Results of Review" section of the notice.

Vietnam's respondents said that they continue to ship at levels comparable to levels before the AD Order was imposed, according to the review.

The respondents each would have received de minimis margins in every review since the last sunset review if zeroing of negative dumping margins had not been applied, before or after the department adopted its differential pricing methodology.

Respondents expected the actual, non-zeroed margins to remain de minimis upon revocation, because the companies were able to sell at high volumes without dumping while the order was in place.

Meanwhile, the department examined the International Trade Commission (ITC) Dataweb data on the record of imports of the merchandise for the period before and after the AD Order was issued.

The y showed that while import volumes fluctuated following the AD Order, they have more recently remained at the same or higher volumes than pre-order import volumes.

Given the continued existence of margins calculated without zeroing in the eighth and ninth administrative reviews, completed since the 2011 Continuation Order, it is unlikely that respondents would be able to sell at pre-order volumes without dumping.

In addition, respondents argued that the margin likely to prevail was de minimis because the respondents would have received de minimis margins in every review conducted since the last sunset review if the department had not used zeroing in its calculations.

The department said with the exception of the last three most-recently completed administrative reviews, the department used average-to-average comparisons, along with zeroing, for each segment under the AD Order.

However, the Vietnam-wide rate, which has remained unchanged since the underlying investigation, was based on adverse facts available, the department said.

This adverse facts available rate was based on the petition and, therefore, did not include zeroing and is consistent with the Final Modification for Reviews. Thus, the DOC found that it has appropriated to provide the lTC the margin of 25.76 percent from the original investigation, which was based on adverse facts available, and not on the use of average-to-average comparisons with zeroing, as the rate up to which dumping is likely to continue or recur.

The final results of the second five-year sunset review are scheduled to be issued in January 2017.

Two-thirds of companies pay 'unofficial costs'

Vi?t Nam needs to fight corruption and promote transparency among local communities in order to create a healthy investment environment and improve business competitiveness, officials and business representatives said at a meeting yesterday.

Participants said progress in fighting corruption requires collaboration between Government agencies, social organisations and the private and public sectors.

Vietnamese companies struggled with the so-called “unofficial cost” of doing business, making it a challenge to work and grow in a honest and transparent manner.

Though there is a comprehensive legal system on transparency and anti-corruption, regulations are not enforced, generating lack of confidence within the business community.

The problem discourages firms, as individual efforts are often not enough to change the corruption situation, due to a lack of support and encouragement coming from related sides.

According to the Germany-based non-governmental organisation Transparency International, Vi?t Nam ranks 112 out of 167 countries and territories in the ascending scale of Corruption Perceptions Index for 2015.

“That means Vi?t Nam is among the countries with the worst status of corruption. Such a bad situation can expose high risks and negative effects on local businesses,” Ph?m Ánh Duong, Deputy Director of Towards Transparency, said.

Corruption was listed among top troubles in the Provincial Competitiveness Index 2015, published in March by the Vi?t Nam Chamber of Commerce and Industry (VCCI).

According to the VCCI, the percentage of companies paying “unofficial costs” rose from 50 per cent to 66 per cent between 2013 and 2015, while 11 per cent of surveyed companies spent more than 10 per cent of their revenues on “unofficial costs” and 65 per cent of them said that corruption often happened when they tried to complete procedures.

“A high percentage of ‘unofficial cost’ can discourage private firms and lower their resources—especially local start-up businesses—and reduce opportunities for co-operation between local and foreign companies,” Duong said.

In order to resolve the issue, Duong proposed a six-step international-standard programme to help private firms achieve business integrity, called Corporate Integrity Programme (CIP).

“Corruption is not only caused by the Government system, but also by the companies and their business sectors,” he added.

Under the CIP programme, the companies must assess the risks of corruption, design plans to fight against those risks, implement the plans and supervise the implementation progress.

But the most important thing is the company’s commitment to never compromise with corruption.

“We need the Government, companies and the community to act together on the issue and to monitor each other in order to achieve the best results,” he said.

In fact, the CIP programme has been proven to be one effective tool for Government agencies to win trust from local business community.

“When implementing the business integrity programme, we have realised transparency, simplified administrative procedures, reduced negatives and harassment and spread the values of a healthy investment environment among businesses at the Sài Gòn Hi-Tech Park,” Lê Bích Loan, Deputy President of the hi-tech park’s Management Board, said.

The tech-hub has changed their working status from ‘manager’ to ‘helper,’ published all procedures on the website and at the office, organised direct dialogue sessions with member enterprises to respond to their demands and concerns, and applied up-to-date software programmes in running the park, she said.

“In order to resolve corruption completely, training and education must be taken seriously for the whole community, including Government officials, companies and common people,” Ph?m Ð?i Duong, Hòa L?c Hi-Tech Park’s director said.

“Electronic systems and computers should also be used to improve interaction between Government officials and companies. This shift will reduce the chance of corruption, as the two sides will not have ‘direct contact’ with each other,” he said.

KVIP should promote advertisements to attract investors

The Korea Viet Nam Incubator Park should promote advertisements to attract more companies, Truong Quoc Hoai Nam, vice chairman of People's Committee of Can Tho City, said at meeting on releasing the development plan of the park.

Pham Minh Quoc, director of the park, said at the meeting in Can Tho City on September 28 that the park, located in Can Tho City, has operated for one year and, at present, has had two companies relocate to the park to begin manufacturing. The Nhat Viet Company has manufactured fish powder using microorganism technology and Hoang Thang Company has improved its sowing machine.

So far, the park has received registration from five companies interested in investing in the park, said Quoc, adding that the park would choose among these applicants, and is expected to have more companies moving to the park by the end of 2016.

He noted that the park has advertised itself and cooperated with local and foreign partners to exchange information and seek to promote itself in the market, as the park was set up for farming and fishery processing, as well as mechanical industry. Companies that locate to the park must have new ideas in production and business. Those conditions, however, will limit the number of companies joining the park.

In addition, Viet Nam's enterprises, especially farming and fishery processing companies, have been cautious about registering investments in the park because they have put in place processing contracts for export products, he said.

The park has not contracted for professional advertising, which would affect potential companies' abilities in approaching the park.

At present, the park has put into operation equipment and machines for mechanical manufacturing, as well as processing of farming and seafood products, worth US$2 million.

However, Nam said the park has not had specific development plans, so related parties, such as the park's management board and Can Tho's departments of science and technology and of industry and trade, as well as the Can Tho Enterprise Association, should develop specific plans to attract more investors to the park.

In addition, the park has had difficulties in raising capital for equipment and machines, as well as land for enterprises developing projects.

Nam further said that the management board must require enterprises to pledge that after developing their technology for production, they must install the technology in Can Tho City.

The park, managed by the Korea-Viet Nam Incubator Development Centre, has a total capital of $21 million, including $17.7 million from South Korea and the remaining from Viet Nam.

The park has received a total area for building of 4.5ha, including three main office regions, a laboratory area with modern equipment for research and testing product quality and facilities for production of products researched at the park.

There also is an incubator of research and development techniques, consulting for the training of workforces for small and medium sized enterprises in Can Tho City and provinces in Cuu Long River Delta region, including firms in producing and processing agricultural and seafood products and manufacturing of mechanisms for farming and fishery industries.

It also expected to have support for enterprises in researching and reforming technology in those industries to improve quality and create added value for their products.

Gov't to fund smaller enterprises

Small and medium-sized enterprises can now get loans at preferential interest rates from a fund  operated by the Ministry of Planning and Investment, a meeting heard in HCM City on September 29.

Hoang Thi Hong, chairwoman of the Small and Medium Enterprise Development Fund (SMEDF), said the fund began functioning last April and has identified three lenders, Vietcombank, BIDV and HDBank, through whom to lend to SMEs.

They have started to receive applications for loans, she said.

H?ng said the fund's main aim is to minimise mortgage requirements.

Bui Hoang Tung of SMEDF's monitoring and risk management division said SMEs need to otherwise fulfil a number of conditions, including having feasible production or business plans in prioritised areas.

The maximum loan is 70 per cent of fixed cost – it does not provide working capital -- and must be repaid within seven years. Borrowers can prepay the loans without penalties.

Tùng said the fund has four lending programmes.

SMEs working in innovation and creativity are entitled to loans of up to VND10 billion (US$448,430), he said.

The limits for supporting businesses in agro-forestry-fisheries and electronics and mechanical engineering are VND20 billion and VND25 billion, while SMEs operating in wastewater treatment can borrow up to VNÐ25 billion, he said.

The loans carry a fix interest rate of 7 per cent, he added.

Hong said apart from VND2 trillion provided by the Government, SMEDF would also source capital from the private sector to increase its corpus.

To Hoai Nam, deputy president of the Associations of Small and Medium Enterprises, said there are more than 500,000 SMEs in the country, accounting for more than 90 per cent of all companies.

They face difficulties due to limited competitiveness and funding, but the fund is expected to provide them with new opportunities, he said. 

HCMC sees substantive GRDP growth

HCM City's Gross Regional Domestic Product (GRDP) reached VND732. 44 trillion (US$33.2 billion) in the first nine months of the year, up 7.76 per cent against the same period last year, according to the municipal People's Committee.

During the period, the growth rate of the service sector was 7.78 per cent; the industry and construction sector 7.77 per cent and the agriculture sector 5.5 per cent.

The city's export revenue was estimated to reach $22.7 billion, up 1.68 per cent.    

Speaking at a meeting held on September 29, Nguyen Thanh Phong, chairman of the People's Committee, said the city would achieve its target of reaching a GRDP growth rate of 8 per cent this year.

However, the city still faces challenges, including sluggish improvement in economic competitiveness.

The city's Department of Industry and Trade and the Trade and Investment Promotion Centre in cooperation with other agencies were asked to improve trade and investment promotion activities at home and abroad, and expand export markets.

He asked the leaders of departments, agencies and districts to complete their action plans on seven breakthrough missions.

The missions include: improving the quality of human resources; administrative reform; economic growth and competitiveness; reducing traffic jams and accidents, flooding and pollution; and beautifying and developing urban areas.

According to the city's Steering Centre of Urban Flood Control Programme, as of mid-July, there were 59 construction projects illegally encroaching on water-release gates, manholes and canals.

Poor management by local authorities was the cause, according to recent inspections, Le Van Khoa, deputy chairman of the municipal People's Committee, said.

"In the coming time if any district has sewers, manholes and canals flooded and blocked, the chairman of that district's People's Committee must bear responsibility before the municipal People's Committee," he said.

He also told the city's steering centre and districts to prepare pumps to prevent flooding during heavy rains.

He said the steering committee in cooperation with the city's Department of Information and Communications should encourage local television and other media outlets to inform the public about flooding sites during heavy rains or storms. 

Nation must improve economic competitiveness: think-tank

Viet Nam must continue to maintain stability, accelerate restructuring and improve the competitiveness of the economy in the face of ongoing global headwinds, members of a think-tank report.

Deputy Prime Minister Vuong Dinh Hue asked members of the National Financial and Monetary Policy Advisory Council to closely monitor the financial situation throughout the world, during their third-quarter meeting in Ha Noi today.

The members agreed that it was necessary for Viet Nam to create a stable business and investment climate, renew its growth model and expand labour productivity.

Viet Nam has targeted its gross domestic product (GDP) to grow at 6.7 per cent, along with exports to grow at 6-7 per cent, next year.

Further, the consumer price index (CPI) is expected to rise by some 4 per cent, with total social investments accounting for some 31.5 per cent of GDP in 2017.

Deputy Minister of Planning and Investment Dao Quang Thu announced these figures after the country's goal of reaching 6.7 per cent economic growth this year has proven largely unfulfilled.

There is, however, a strong possibility that the GDP will grow by 6.3 per cent and the CPI will rise by less than 5 per cent in 2016, he said, adding that total social investments have reached more than VND1 quadrillion, or US$44.44 billion, during the first nine months of the year.

Thu said the slow recovery of the global economy is likely to impact on Viet Nam's export growth next year, while uncertain global oil prices and risks of inflation caused by adjustments in domestic healthcare and education services are resulting in macro-economic imbalances.

Meanwhile, Nguyen Thi Hong, Deputy Governor of the State Bank of Viet Nam, said that inflation has "basically been stable", although the central bank pumped a "relatively large" amount of money into the economy to support economic growth this year.

Hong added that the central bank has steadied treasury bill and government bond issuances with foreign exchange buys to assure appropriate monetary operations. State bond issuances alone have amounted to VND250 trillion this year, in line with national quotas.

She also said that a change in the central bank's operations of exchange rates, with the reference rate now adjusted daily, has reduced foreign currency speculation and eased pressure that could cause interest rate hikes.

Overall, credit growth is likely to reach targeted levels of 18-20 per cent this year, she said.

Members of the council recommended that the Ministry of Planning of Investment build a set of criteria to assess the efficiency of investments more precisely. This will assure authorities have a clearer look about how to assist enterprises and foster economic growth.

Economist Tran Dinh Thien said although start-ups are now encouraged in national development schemes, new firms should not be established too hastily, because inventories and bad debt remain major issues that the country has to deal with. 

HCMC products showcased at Tay Ninh fair

A fair to promote products made by HCM City-based businesses opened on September 30 at the Tay Ninh Sport Training and Competition Centre.

The week-long fair features 150 booths of more than 100 businesses. Products include consumer goods, processed food, pharmaceuticals, medical equipment, farm produce, fertilisers and animal feed, in addition to machinery and construction materials.

The municipal People's Committee paid for 50 per cent of booth rentals and 100 per cent of costs for booth decoration, communication and seminars.

Pham Thiet Hoa, director of the Investment and Trade Promotion Centre of HCM City (ITPC), said international integration would offer opportunities for businesses to boost exports. On the other hand, foreign firms, particularly those from Asia, have increasingly penetrated the domestic market.

In addition to boosting exports, Vietnamese should concentrate more on the domestic market with a population of more than 90 million, he said.

ITPC has organised a series of fairs to enable HCM City-based businesses to promote their brands and products and seek distributors in other provinces and cities, with the first held in Tay Ninh Province.

Tay Ninh is home to 109 traditional markets, but according to ITPC, the linkages between HCM City producers and small traders are not stable.

On the sidelines of the fair, ITPC in collaboration with the Tay Ninh Department of Industry and Trade and Market Management Board will hold a meeting to connect HCM City producers with traders and distributors in the province.

Japan changes checks of VN seafood

Japanese authorities have adjusted schedules for checks on antibiotic residues in seafood products imported from Viet Nam, according to the National Agro-Forestry- Fisheries Quality Assurance Department (Nafiqad).

The department said the Viet Nam Trade Office in Japan had received an announcement from Japan's Ministry of Health, Labour and Welfare about checking Vietnamese seafood products exported to Japan.

According to the announcement, from September 13, random checks for Chloramphenicol (CAP) in shrimp and shrimp products were reduced from 100 per cent of batches to 30 per cent because Japan had not found CAP in those products.

However, all batches of cuttlefish would continue to be checked for CAP. Meanwhile, checks for Sulfamethoxazole and Sulfadiazine have been conducted on 30 per cent of the batches from August 2 and September 9, respectively, as Japan found one batch of shrimp containing Sulfamethoxazole in August and another batch of shrimp containing Sulfadiazine in September.

Checks for Furazolidone and Enrofloxacin will continue to be conducted for all batches of shrimp from Viet Nam.

Nafiqad said Vietnamese seafood manufacturing firms were requested to keep themselves updated on importers' regulations and to actively monitor antibiotic residues in seafood exports according to Hazard Analysis and Critical Control Points (HACCP).

10 firms honoured at 2016 Vietnam HR Awards

Ten local and multinational companies were honoured at the 2016 Vietnam HR Awards ceremony held in HCM City on September 28.

The awards are given to outstanding enterprises in five human resources categories: manpower planning and resourcing, compensation and rewards policies, performance management, training and human capital development, and best workplace environment.

Of the 10 companies honoured, four were Vietnamese – Novaland, The Gioi Di Dong, FPT, and Techcombank.

Unilever, Nestle, IBM, CSC, BAT, and HSBC Viet Nam were the other six winners.

Unilever won three out of five categories: manpower planning and resourcing, training and human capital development, and best workplace environment.

This also fetched Unilever the Best HR Practices of the Vietnam HR Awards.

Given away by Talentnet and the Labour and Social Affairs newspaper, the biennial awards aim to recognise and honour enterprises that have displayed excellence in planning and implementing HR policies and creating a forum to share HR policies and practices.

The Vietnam HR Awards is the Vietnamese version of the renowned "Singapore HR Awards" given away by Talentnet, and was instituted in 2014. 

Taekwang builds shoe factory in Can Tho

Korean Taekwang Group started construction of a sport shoes factory in Hung Phu 2B Industrial Zone in Cai Rang District, southern Can Tho City, on September 29.

The Taekwang shoe factory, worth US$170 million, was built on an area of 62ha and is expected to be completed in 2017. The property will include a factory, warehouse, and office building.

Once operational stability has been achieved, Taekwang Can Tho factory will create jobs for 35,000 employees and earn estimated annual revenues of over $455 million.

According to Nam Dae Jung, director of Taekwang Co., Ltd, the factory will use production technology based on the standards of the US Nike Group, producing shoes to order for Nike for global export.

Meanwhile, Park Noh Wan, Korean Consulate General in HCM City, said the plant, the third owned by Taekwang in the city, marked a milestone for the development of economic cooperation between Korea and Viet Nam, adding that the free trade agreement between the two countries and the TransPacific Partnership had further helped expand the two sides' economic cooperation relations, contributing to a bilateral trade target of $70 billion by 2020.

In addition, it was a good opportunity for Taekwang to take advantage of the skilled labor in Can Tho for its growth, said Park Noh Wan.

The city's deputy chairman Truong Quang Hoai Nam said Can Tho saw Korea as a strategic partner in many cooperation projects. He added that the growing number of investments by Korean enterprises had contributed significantly to the local economic development of the city.

Honda Vietnam produces 20th million motorcycle

Honda Vietnam (HVN) reached another important milestone in its history on September 30, producing its 20 millionth motorcycle, an Air Blade, at its factory in northern Ha Nam province.

HVN arrived in Vietnam in 1996 and rolled out its first motorcycle, a Honda Dream, in December 1997. It reached 1 million motorcycles in 2003 and then five million in 1998, 10 million in 2011 and 15 million in 2014.

According to a representative from HVN, for every 20 Vietnamese people there is one riding a Honda.

It is the largest motorcycle maker in the country, with a market share of over 70 per cent.

HVN has 12 models made and distributed in Vietnam, with best sellers including the Honda Wave Alpha, Air Blade, and Vision.

It began to export motorcycle accessories and parts in 2002 and motorcycles in 2012. As at December 2015 it had exported nearly 225,000 worth more than $320 million. The company has also spent millions of dollars in building warehouses for its import and export activities.

When formed in March 1996 it had charter capital of $62.9 million, with Honda Motor Japan holding 42 per cent, Asian Honda Motor 28 per cent, and the Vietnam Engine and Agricultural Machinery Corporation (VEAM) 30 per cent. It invested more than $290 million in its first factory and $65 million in a second factory, both in northern Vinh Phuc province, and then spent another $120 million on its third factory, in Ha Nam province.

As a good corporate citizen, HVN has initiated various social activities in fields such as education, environmental conservation, community support, and traffic safety. One of the highlights is its efforts to raise awareness and knowledge about safe driving behavior.

In 1999 HVN established the Traffic Safety Center in Vinh Phuc province to provide safe driving training to customers, government officials and the general public. The Center has also provided extensive training to 1,500 instructors so they can teach customers and the public.

Nearly 6 million people have taken training courses at the Traffic Safety Center, through motorcycles and automobile dealers, and at schools and universities. HVN also promotes traffic safety knowledge via a TV program called “I Love Vietnam”. The program has been broadcast on national television for over eleven years, contributing to raising awareness and knowledge on traffic safety among millions of TV viewers.

BAT Vietnam wins 2016 Vietnam HR Award

British American Tobacco (BAT) Vietnam was honored for the first time ever with a 2016 Vietnam HR Award for “Manpower Planning & Resourcing” on September 28.

The award is presented jointly by Talentnet and the Labor and Social Affairs newspaper, the official publication of the Ministry of Labor, Invalids and Social Affairs, to honor organizations in Vietnam with the best HR strategies.

The Vietnam HR Awards are the first of its kind for HR strategies in Vietnam and seeks to encourage and improve personnel management in the country to reach regional and global levels.

Nominees for the awards must pass through many rounds, including a short-list assessment and profile evaluation, presentation to a jury, and site visits before a final evaluation is made.

Speaking at the awards ceremony, Mr. Peter Henriques, General Manager of BAT East Asia Area, said that BAT Vietnam is very proud to receive the award. “Being part of the Vietnam HR Awards is also a great opportunity for our HR function to review what it has done to help the company achieve its business targets,” he said.

“People are the most valuable asset and a critical factor in BAT Vietnam’s success,” he went on, adding that the HR function is regarded as a strategic partner in carrying out the company’s business plans.

BAT Vietnam’s HR function proactively devises strategies to help the company execute its business strategies, such as in organizational structure, identifying the best-fit candidates to deliver business results and to thrive in the long-run, and providing training in necessary skills so that employees can perform most efficiently.

The success of BAT’s HR strategies is demonstrated through indicators in talent brand such as independent data volume, number of fans on social networks, and indices of identification, interest and application. More importantly, it has reduced dependency on headhunting agencies for acquiring talent.

Launched on May 15, the Vietnam HR Awards 2016 used a rigorous and objective selection process to recognize and honor enterprises that have displayed excellence in planning and implementing effective HR policies, contributing to business efficiency and performance and enhancing the quality of their employees’ lives.

Hundreds of businesses submitting dossiers and four professional rounds of judging over nearly three months showed the business community’s strong support for and awareness of the importance of HR management strategies.

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