Domestic and foreign organisations as well as individuals investing in Hoa Lac Hi-Tech Park will enjoy a range of preferential policies and investment support, according to a newly-issued decree by the Government on the specific mechanisms and policies for Hanoi’s hi-tech complex.

According to the new document, investment projects in the high-tech zone are entitled to the highest incentives possible, in accordance with laws on investment and taxation.

For new investment projects in the hi-tech park, with a total capital of VND4 trillion or more, a corporate income tax rate of 10% shall be applied for a period of 30 years.

For projects approved by the provincial People's Committees prior to the approval by the Prime Minister on the adjustment of the master plan for construction of the high-tech park (May 23, 2008) and operating within the complex, shall be entitled to tax incentives in accordance with provisions under the investment certificate/investment and licence/investment preferential certificate granted.

Regarding housing policy for employees working in the high-tech park, the Hanoi People's Committee will prioritise the allocation of sufficient land for the construction of houses for labourers working in the complex.

The State encourages and supports organisations and individuals to invest in the construction and development of housing (including technical infrastructure, social infrastructure and housing).

Organisations and individuals implementing housing projects, for labourers working in the high-tech park, are entitled to incentives on taxation, land rents and land use levies, according to the current provisions of laws and regulations under the above decree.

The decree stipulates that investors, specialists and labourers, who are overseas Vietnamese, foreigners and their family members, (including parents, spouses, offspring and adopted children under 18) will be considered for the issuance of multiple entry visas with a time limit suitable to their working schedule in the high-tech park.

Apart from the above-prescribed preference and investment support policies, domestic and foreign organisations and individuals investing and working in the high-tech park, may also enjoy other preferential support policies, according to the provisions of current laws, when fully meeting conditions for preferential treatment and support.

For special projects that need to be attracted to the hi-tech parks, the Ministry of Science and Technology shall propose that the Government or the Prime Minister decide whether to grant additional investment incentives and supports.   

Dialogue seeks ways to increase value of shrimp products

A roundtable dialogue on increasing added value of Vietnamese shrimps took place in the Mekong Delta city of Can Tho on June 21with the participation of more than 100 businesspeople and farmers in the region.

The shrimp sector plays a very important role in Vietnam’s agriculture, bringing home over 3 billion USD from exports and creating 2 million jobs each year. However, shrimp farming in the country has a small scale, lacks linkages and suffers higher production costs than that of its main competitors, such as India and Thailand.

According to the Vietnam Association of Seafood Exporters and Producers (VASEP), in the first five months of 2017, the country’s shrimp exports grew just 4 percent from the same period last year, earning over 1.14 billion USD. During the period, Vietnamese shrimp exports recovered in the markets of Japan, the EU and Republic of Korea, while witnessing drops in the US, China and Australia.

Dr Tran Dinh Luan, Deputy General Director of the Fisheries Department, said his department has carried out a range of measures to foster the sector’s sustainable development, including the application of science-technology and suitable farming models in response to climate change.

Localities were also requested to increase environmental observation and management so as to grasp timely information about the environment, diseases and solutions, thus helping farmers take prompt response. 

Christian Henckes, Programme Director of the Integrated Coastal Management Programme (ICMP) at the German Society for International Cooperation (GIZ), said import markets of Vietnamese shrimps care about not only product quality but also the entire production process, including sustainable and environmentally-friendly factors.

He told participants that GIZ is working closely with the Ministry of Agriculture and Rural Development and Departments of Agriculture and Rural Development to turn shrimp breeding into a modern and high-productivity industry not only in the Mekong Delta but also in the whole country.

Participants said it is high time for Vietnam to optimize the sector’s advantages by publicising input materials, improving the quality of shrimp varieties and feed, and building a national trademark.

At the dialogue, delegates also made recommendations to an action plan to develop the shrimp sector through 2025, which is expected to turn Vietnam into an environmentally-friendly shrimp production hub in the world.

Rice exports to Russia shoots up 700 percent

Vietnam exported more than 14,700 tonnes of rice worth 5.56 million USD in the first five months of this year to Russia, a year-on-year increase of 707 percent in volume and 662.6 percent in value, according to statistics from the General Department of Vietnam Customs.

In the period, the country raked in 1.1 billion USD from shipping nearly 2.4 million tonnes of rice abroad, up 1.1 percent in quantity and 0.2 percent in revenue from the same time last year.

The country saw a robust growth in the rice shipment to China - its largest rice consumption market. Nearly 1.1 million tonnes of rice were sold in the country at 488 million USD, up 33.6 percent in volume and 31 percent in value. The amount accounted for 46 percent of the country’s total rice exports.

Expansion in Vietnamese rice exports was also seen in the Philippines and some European countries like Ukraine, Belgium and France.

However, the country’s rice shipments experienced steep fall from 40-99 percent in Hong Kong (China), Taiwan (China), Indonesia, Poland and Turkey.

The price of Vietnamese export rice has hit a three-year high thanks to the rising import demands and the restricted supply source.

According to the Ministry of Industry and Trade, the demand for Vietnam’s 5 percent broken rice, has been rising, hitting 390 USD per tonne in the early days of June, against 360 USD per tonne to 380 USD per tonne in late May.

This is the highest price since December 2014, the ministry said, attributing it to the rising global demand for rice imports, especially in the Asian region.

The export price rise has also caused the paddy price in the domestic market to soar. A tonne of 5 percent broken rice in the domestic market stood between 7.65 million VND (340 USD) and 7.75 million VND in early June, up 550,000 VND (24 USD) per tonne against last month.

The global rice market has been heating up after top importing countries, such as Bangladesh and the Philippines, announced to import roughly 950,000 tonnes of rice recently.

Experts have forecast that the global rice price will increase by roughly 20 USD per tonne in the next three months.

They have advised rice exporting enterprises to not sell the crop in a hurry, hoping that the price of 5 percent broken rice would increase to at least 400 USD per tonne.

Pepsi opens new factory in Quảng Nam

Suntory PepsiCo Vietnam Beverages (Suntory PepsiCo) inaugurated its fifth manufacturing facility in the country at the Điện Nam–Điện Ngọc Industrial Park in the central province of Quảng Nam on Tuesday.

The US$56 million plant has 10 production lines with a total capacity of 850 million litres a year. Five have been put into operation and the remaining will be installed in the second phase.

The production lines, workshops, warehouses, testing rooms meet the global standards of PepsiCo and also Việt Nam’s food quality, hygiene and safety standards.

It employs around 300 people directly and indirectly, mostly from the local area.

Its products are expected to serve the needs of the domestic market as well as exports.

It is considered one of the most modern and largest of Suntory and PepsiCos plants anywhere in the world.

MBLand, Tonkin sign resort contract with Pan Pacific
     
Property developers MBLand Holdings and Tonkin Property on Tuesday signed a contract with Pan Pacific Hotels Group for the management of their six-star resort and hotel complex in Quang Nam Province.

Occupying prime location in the diamond tourist belt of Da Nang and Hoi An, Pan Pacific Danang-Hoi An Resort is a multi-million-dollar resort offering a sea view with three carefully designed and furnished property styles — villas, sky paradise villas and condotels.

It has collaborated with world-class names in architecture and design, such as landscaping by EDSA, exterior design by Humphreys & Partners and interior design by DWP, to create a new standard for luxury resorts and introduce refined lifestyle experiences.

The six-star resort, which is expected to open in 2020 with a 10 per cent guaranteed return, is already a sought-after destination for investors and vacation home owners.

MBLand Holdings, a member of Military Bank, with its more than 10-year experience in development is a trusted name in property development and has to its credit multiple national and regional projects such as The Field Collection, which includes Golden Field and Central Field in Ha Noi and Infinity Field in Nha Trang.

Tonkin Property specialises in resort projects in Đà Nẵng, Hội An and Nha Trang. For the 2017-18 period, Tonkin Property and MBLand are set to strategically cooperate on 10 regional luxury resort projects, primarily in the central region.

Pan Pacific Hotels Group, a wholly owned subsidiary of Singapore-listed UOL Group Limited, is one of Asia’s most established hotel and property companies, operating 24 properties with close to 7,000 rooms in 12 countries.

Pan Pacific Danang-Hoi An Resort is the second property of Pan Pacific Hotels Group in Việt Nam, following Pan Pacific Hanoi, which was opened last year.  

Famous Vietnamese brands scores lower this year

According to the results released on June 19 of the annual Asia’s Top 1000 Brands survey, the 11 Vietnamese brands featured last year remained this year, although most of them slipped down the ranking.

Except for instant noodle brand Hao Hao, whose ranking moved up from 654 to 636, and toothpaste P/S, whose ranking moved up from 917 to 808, the remaining nine, namely Vietjet Air (595), Viettel (596), Petrolimex (616), Vinamilk (621), Chin-su (668), Trung Nguyen (693), Vietnam Airlines (716), Mobifone (736), and Vietcombank (811) all scored lower in the ranking.

“I feel proud that local enterprises now can make their brands known at the regional front,” said Nguyen Huong Quynh, managing director of Nielsen Vietnam. “However, the results this year were not as good as last year. As observed, most of the local brands’ ranks dropped since last year. To keep the momentum, it is important for our enterprises to continuously work hard on their brand reputation, keep their brand promises and offer the best products and service experience to customers.”

The annual Asia’s Top 1000 Brands survey is the region’s most comprehensive research on consumer brand perception presented by Campaign Asia-Pacific and based on an exclusive survey conducted by Nielsen. According to the results, big multinational companies continue to dominate the list of Top 1000 brands in Asia, but more local firms successfully improved their brand perception.

The top of the charts for the 2017 ranking remained unchanged since 2016. Samsung continued to hold onto the number one position for the sixth consecutive year, Apple came in at second followed by Sony in the third place, Nestle at the fourth and Panasonic at the fifth.

Five other players who fought their way into the Top 10 brands in Asia were LG, Nike, Channel, Adidas, and Coca-Cola. In fact, Coca-Cola was a new name in the Top 10 this year, while Canon, ranked number eight last year, slipped lower.

Cashew segment banks on higher sales in the EU

The Vietnam Cashew Association has forecast exports for 2017 to rise 3.4% in volume and 5.6% in value against the figures for 2016 to US$3 billion on the back of higher sales in the European Union for the year.

Nguyen Duc Thanh, chair of the Association, said he expects the country will ship roughly 360,000 metric tons of products to foreign markets in 2017 making it the largest exporter in terms of volume for the 12th consecutive year in a row.

The forecast is largely dependent on continued improvement in sales in the EU, which accounted for approximately 94,000 metric tons of sales at US$766 million in 2016, or about 27% of exports for the whole of last year.

In the first five months of 2017 leading up to June, the total exports by processors operating in the country have been estimated at 112,000 metric tons valued at US$1.1 billion, Mr Thanh noted.

It should be pointed out here that if one were to run the math and extend sales for the remainder of 2017 at the same clip they ran in the first five months they would likely tally in at only US$2.64 billion for the year, far short of the forecast US$3 billion by the Association.

However, more importantly, as Mr Thanh accurately stated, material shortages are squeezing earnings as processors in the country imported more raw nuts in the first five months of the year than they plan to sell in foreign markets for the entire 12 months of the year.

Some 68,000 metric tons (428,000 less 360,000) to be exact, which leads to the obvious conclusion that producers are meeting most their export requirements with imported nuts and likely meeting a good portion of domestic sales with imports as well.

In the first five months of this year, the Association estimated that processors imported some 428,000 tons of raw materials mainly from Tanzania, Cambodia and the Ivory Coast at US$835 million, up 74.6% in volume and 125% year-on-year.

According to Mr Thanh, the key to sustainability of the segment is not gross sales in terms of volume of product sold overseas or even gross sales in terms of absolute dollars – but increased earnings on those sales – in lucrative markets such as the EU.

The EU market has increased from just 64,000 metric tons of sales in 2014 to more than 94,000 metric tons, or 27% of the total exports of the country in 2106, with the Netherlands and Germany the main trading centres.

There had been an expectation by many that with a Vietnam-EU free trade agreement coming into force in 2018, sales and earnings would rise commensurate with a lowering of import tariffs brought about by the trade deal.

However, given the substantial reliance by the segment on imports of raw nuts, it is highly improbable the rules of origin pursuant to the trade accord would allow for any tariff reduction.

The overreliance on imports by the segment also makes complying with the strict food safety requirements of the EU more difficult and likely that losses on rejected product by food safety and pest inspectors will continue to mount and eat away at the meagre earnings of farmers and processors.

In July, Mr Thanh unveiled that the Association has plans to launch a massive advertising and promotional campaign in the EU with special emphasis on the markets in the Netherlands, Germany and Belgium.

Our overall strategy, noted Mr Thanh is to focus on capturing a larger share of the organic market for cashews, which is a growing trend in the EU, and one for which there is a much higher earning potential.

Thai trade fair gets underway in HCM City

A trade fair showcasing Thai consumer goods and services opened at 218 Vo Van Ngan St in Binh Tho Ward, Thu Duc District, Ho Chi Minh City today (June 21), reported Thanhnien Online Newspaper.

Nguyen Thanh Dao, chief executive officer of Dong Nam Company - an organizer, said  the event offers consumers a wide choice of quality products including foods, beverages, jewellery, household items, clothing, cosmetics, auto parts and toiletries. 

The fair, which runs through June 25, helps Thai businesses introduce their brands to Vietnamese consumers and also gain a better understanding of their preferences and other nuances of the marketplace, noted Mr Dao.

Hanoi investment conference set for June 25

The Hanoi Department of Information and Communications has announced that city officials have scheduled an infrastructure investment conference for June 25 to discuss plans for future economic growth.

The conference is a key step towards strengthening partnership and collaboration between government and the private sector, said Nguyen Minh Khanh, assistant director of the Department, and will serve as a key platform to discuss the infrastructure needs and plans for the metropolitan area.

Hopefully, it will further create the possibility for investors and government to network and identify specific investment opportunities.

The conference is expected to be attended by individuals and various groups, including government, state owned enterprises, investors, property developers, financial services companies, transport sector and ICT companies.

The municipal government, he noted, is working diligently with the national government to increase investment in critical infrastructure that supports economic and social transformation.

Border market set up to facilitate Vietnam-China trade

A working group of Guangxi’s border gate authorities have recently inspected Longbang market in Jingxi city, which was designed to facilitate cross-border trade with Vietnam through Hung Quoc border gate in Tra Linh district, northern Cao Bang province.

The market will satisfy shopping demands and “one-door” payments between people living in border areas of the two countries. 

Jingxi city’s authorities have instructed local people to join in cross-border trading. The city is now vibrant with “cyclo economy” as commodities are being transported by over 100 cyclos between the two sides.

According to the Imports and Exports Quarantine Bureau of Guangxi province, Jingxi people have shipped such key products to Vietnam as garments and machines while they buy cotton cloth, wood and walnuts from Vietnam.

The establishment of Longbang market was spurred by bustling trade activities between the two sides, the bureau said.

ABAC prioritises regional integration, sustainable growth

Strengthening regional integration, promoting sustainable, innovative and inclusive growth, and enhancing the competitiveness edge of micro-, small- and medium-sized enterprises (MSMEs) are among the top priorities in 2017 of the Asia-Pacific Economic Cooperation (APEC) Business Advisory Council (ABAC).

APAC Chairman Hoang Van Dung unveiled this information at a press conference held in Hanoi on June 21 by the Vietnam Chamber of Commerce and Industry (VCCI) to inform activities towards the APEC High-Level Week 2017.

Dung said the ABAC’s work plan in 2017 will also focus on encouraging innovations in the digital era, ensuring food security and promoting sustainable and smart agriculture adaptive to climate change.

Regarding the 2nd ABAC meeting in Seoul, the Republic of Korea, he said that APEC members agreed to focus recommendations on the benefits of trade liberalisation and development as well as reduction of non-tariff barriers to goods.

The council emphasised the importance of the World Trade Organisation (WTO) and values of free trade agreements like the Free Trade Area of the Asia-Pacific (FTAAP), Dung said.

ABAC also noted that a stronger global supply chain will create opportunities to realise huge potential of the digital economy and lenient policies will MSMEs to get easier access to international markets and global value chains and strengthen the participation of women in the economy.

The VCCI will continue hosting ABAC’s 3rd meeting in Canada and 4th meeting in Da Nang city of Vietnam to discuss and give out business recommendations. ABAC’s report will be submitted to APEC leaders at APEC High-level Week held in Da Nang in November.

ABAC is the private sector arm of the APEC. APEC economic leaders decided to establish ABAC in November 1995 to advise them and other APEC officials on issues of interest to business. ABAC also responds to requests from various APEC sub-groups for information about the business perspective of specific areas of cooperation.

This private sector body presents recommendations to APEC leaders in an annual dialogue and advises APEC officials on business sector priorities and concerns.

ABAC comprises up to three senior business people from each APEC economy and the appointments are made by the leader of the member economy concerned. The Chair of ABAC comes from the economy that is hosting APEC and therefore changes annually. ABAC represents a diverse range of sectors and includes small and large enterprises.

Dirty business

The business deals by two shipbuilding companies to build steel boats for fishermen in the central province of Binh Dinh have finally turned out to be dirty tricks. The final products delivered to the fishermen are simply unusable, as the parties involved have infringed key terms in the contracts with the fishermen to maximize their illegal gains, a case that comes under sharp criticism in local media these days.

The drama started months ago when 18 steel vessels supplied to the fishermen in Binh Dinh Province broke down due to multiple reasons. When authorities stepped in earlier this month, they found numerous irregularities, from cheats by the shipbuilder and the engine supplier to the dereliction of duty on the part of the State-owned ship registry.

Under Decree 67/2014/ND-CP issued by the Government, banks are told to extend soft loans to fishermen to build steel vessels to improve their fishing capacity and ensure their safety during their long seafaring trips. To date, as many as 297 such vessels have been built and delivered to fishermen. Of this number, 18 boats for fishermen in Binh Dinh and one for a beneficiary in Phu Yen Province are out of order.

Phan Trong Ho, director of Binh Dinh Province’s Department of Agriculture and Rural Development, says in Thanh Nien newspaper that in the province alone, nine enterprises participated in the program to build 47 ships for fishermen. Among such shipbuilders, Nam Trieu Shipbuilding Company turned out 20 vessels, but up to 13 do not work, while Dai Nguyen Duong built five vessels, with all of them problematic.

The hulks of the vessels are made from low-quality Chinese-made steel, instead of Korean steel as contracted.

Meanwhile, most of the Mitsubishi-branded engines supplied by another company, Hoang Gia Phat, for these vessels broke down while the ships were at sea, putting fishermen’s lives at risk.

Worse still, when Mitsubishi sent its experts to check the engines, eight out of nine engines were remodeled and they were not designed for vessels, Phap Luat newspaper reports. Mitsubishi also denied Hoang Gia Phat as its authorized distributor as initially introduced to relevant parties in this shipbuilding program.

Upon this finding, Hoang Gia Phat admitted to wrongdoing, and pledged to refit the right engines for all the affected vessels. 

The drama took a dramatic twist when Nam Trieu managed to keep its irregularities under the tight lid by allegedly bribing the affected fishermen, all to no avail. According to Tien Phong, senior leaders of Nam Trieu approached the affected fishermen, offering cash compensation of up to VND200 million for a substandard vessel provided that the fishermen backed down from their complaints and signed covenants not to leak the information to reporters. Binh Dinh authorities later found out that seven fishermen with seven problematic vessels had withdrawn their complaints due to the agreements.

In an interview with Phap Luat, Dang Ngoc Oanh, CEO of Nam Trieu, denies all irregularities, saying the money was part of an agreement in which fishermen would have to maintain the vessels on their own, instead of sending them to the company’s shipyard for repair. Regarding the substandard engine, he says the supplier is to blame because his company signed a contract to buy brand-new engines. The key problem, says Oanh, rests with the ship registry under the agriculture ministry.

“The ship registry is to blame, because they supervised all steps as regulated by Decree 67. Every step, including painting and engine supply, is controlled by the ship registry and they have signed minutes to affirm that conditions were fulfilled,” Oanh says in Phap Luat.

But the case is too big to hide, and as Binh Dinh Province early this month set up a team to probe the case, irregularities were brought to light.

Tran Chau, vice chairman of Binh Dinh Province, vented his anger at the malpractice, saying in Thanh Nien that “the vessels must be rebuilt with the right steel hulks and replaced with the right engines.” Chau also says he has asked to Ministry of Public Security to quickly launch a thorough investigation into the case.

In an analysis, Tuoi Tre claims enterprises in this case have abused a preferential policy of the Government in building steel vessels for fishermen. They have delivered fishermen vessels that cannot operate properly, thus pushing such poor people into greater difficulty. The illegal acts add heavier burdens to not only fishermen but also the entire economy.

The greed by such enterprises not only causes difficulties for fishermen, but also weakens the country’s resources. Such irregularities must be harshly dealt with, according to the paper.

Similarly, in an editorial, Thanh Nien says the case cannot be deemed as a “regrettable incident” as uttered by a deputy minister, neither should it be referred to as a “valuable lesson” or an “undesirable mistake.”

“The reality we are witnessing is the unethical practice by those enterprises that are ready to appropriate money borrowed from banks by poor fishermen; the reality whereby profiteering enterprises readily ignore the fate and lives of fishermen when at sea,” says the paper

As fishermen with their fishing trips also have the mandate to protect the country’s sovereignty over waters and islands, cheating enterprises have betrayed farmers and the nation as a whole, says the paper. Their pursuit of profit is a form of dirty business.

VFA wants exclusive rights for affiliates to export rice to some markets

The Vietnam Food Association (VFA) has told rice traders to not export rice to some markets under government-to-government deals, leaving the privilege to its affiliates Vietnam Northern Food Corporation (Vinafood 1) and Vietnam Southern Food Corporation (Vinafood 2).

In particular, Official Dispatch No. 164/CV/HHLTVN signed by VFA President Huynh The Nang on June 6, 2017 stated that Vinafood 1 and Vinafood 2 were assigned by the Government to fulfill rice contracts with Bangladesh, Malaysia and the Philippines. Therefore, rice traders are not allowed to ship rice to these markets until the two corporations finish their contracts.

Violations will be reported to the Ministry of Industry and Trade for punishment in accordance to the current regulations, said VFA.

The official dispatch is based on Article 15 of Circular No. 44/2010/TT-BCT of the ministry dated December 31, 2010 providing guidelines for Government Decree 109/2010/ND-CP dated November 4, 2010 on rice export.

This instruction by VFA has instantly been criticized by some traders.

Speaking to the Daily, Pham Thai Binh, director of Trung An Hi-tech Farming JSC, said rice traders have many times protested against this regulation as it violates free trade rules.

According to Binh, Vietnam is promoting rice export, so the ban is unreasonable. “Rice traders will be badly affected if they are forced to stop exporting rice to certain markets for months (until such deals are accomplished by Vinafood 1 and 2),” Binh said.

“Let’s take the case of a trader who has shipped rice to Malaysia under a supply chain. If they are forced to suspend export for months, that supply chain will be affected,” Binh said.

Therefore, unreasonable regulations need to be eliminated or amended to rescue declining exports of Vietnamese rice, create a level playing field for rice traders and contribute to the sustainable development of rice production.

Specifically, the Ministry of Industry and Trade should review and suggest amendments to Article 27 of Decree 109/2010/ND and submit it to the Government for approval.

Clause 6 of Article 27 said: “Making a bid or signing contracts to export rice to centralized markets (under government-to-government deals) violated the Government regulations.”

Govt pledges more incentives for FDI, wants economic connectivity

The Government will create favorable conditions to attract more foreign direct investment (FDI), and urged foreign-invested enterprises to connect themselves with domestic enterprises to better create value chains in the process of international integration, heard the Vietnam Business Forum (VBF) 2017 on Friday.

Deputy Prime Minister Vuong Dinh Hue said at the forum that the Government will offer more incentives to investors, but priorities will be given to those FDI enterprises with concrete schemes to set up links with domestic partners. The Government wants to forge stronger connectivity between domestic and foreign enterprises to help them develop and join global value chains, he said. 

“FDI enterprises play a vital part in the Vietnam’s economy and their successes are the country’s successes,” said Hue.

According to the Deputy PM, Vietnam will promote FDI but prioritize enterprises engaging in sectors aligned with the country’s economic restructuring as well as those having modern technology, good governance and are environmentally friendly, and willing to cooperate with domestic partners.

Hue said integration into the global economy is a consistent policy of Vietnam and the country has signed many free trade agreements which set very high standards for international integration.

To provide enterprises with more favorable conditions, the country is making its business and investment environment more transparent. The Law on Support for Small and Medium Enterprises that has just been issued is expected to promote the development of such enterprises.

The Government has set up a target that 80% of administrative procedures will be processed online. Up to 73 customs procedures are being reviewed and amended to create a more attractive investment environment for businesses.

The Government will focus on helping enterprises ride out their difficulties, speed up economic restructuring and attach greater importance to sustainable development.

The Deputy PM asked departments and agencies, especially the Vietnam Chamber of Commerce and Industry (VCCI), to collect feedback from businesses and report to the Government so as to create a more transparent and stable legal system.

VCCI Chairman Vu Tien Loc said at the Vietnam Business Forum 2016 that Government agencies received 127 opinions from the enterprises and replied 88 of them. Up to 55% of such responses have been appreciated by the business community as “very good,” Loc said.

At this year’s forum, economic experts said Vietnam has not taken advantage of benefits from FDI such as financial resources, advanced technologies and good governance skills to improve competitiveness.

The difference in human resources and technologies has created a wide gap between foreign and domestic enterprises. Therefore, measures should be taken to bridge the gap to promote more uniform development, since it is not beneficial when two different growth tempos exist in the economy.

Experts from the World Bank suggested that the policies for foreign and domestic enterprises should be the same for a healthier business environment.

Hiroshi Karashima, chairman of the Japanese Business Association in Vietnam, said along with State-owned and foreign businesses, the domestic private sector should be the driving force for economic growth. The development of small and medium enterprises as well as supporting industries will attract more investment to Vietnam.

Hi-tech exports soar 80% in H1

Companies at the Saigon Hi-Tech Park (SHTP) in HCMC have reported total exports of US$4.6 billion in the first half of the year, up nearly 80% year-on-year, according to a socio-economic performance report of the city.

The city’s Department of Planning and Investment said the hi-tech sector is expected to contribute one-third of the city’s total export revenue this year.

In the last three years, the hi-tech park has posted a steady rise in the ratio of its contribution to the city’s export earnings, with 20% in 2015, 25% in 2016 and 33% in 2017.

SHTP currently has over 110 licensed projects, especially those of Intel Products Vietnam, Schneider Electric Manufacturing Vietnam, QSIC Vietnam, and Samsung Electronics HCMC CE Complex.

The report shows the industrial development index of the city in the six first months has improved 7.5%. Four key industries – mechanical engineering, electronics, chemicals-rubber-plastic and food processing – have recorded positive growth.

The electronics and information technology sectors have attracted more multinationals with numerous projects in fields like solid state technology, chip technology and circuit boards.

The city’s gross regional domestic product in January-June has grown 7.46%, with retail up 10.3% to VND451 trillion (US$19.87 billion), and export up 17.4% over the same period to US$17 billion.

Private investors needed for wastewater treatment projects

Policy incentives should be adopted to encourage the private sector to participate in drainage and wastewater treatment projects, Nguyen Cong Thanh, technical advisor to German development agency GIZ, said at a seminar in Can Tho City on June 15.

He said local governments should offer private investors preferential treatment in terms of corporate income tax, land and financial support.

A wastewater treatment project in Can Tho which has a designed capacity of 30,000 cubic meters a day is funded by German development bank KfW. But for other projects, the city has yet to secure finances, said Nguyen Kim Hoang, head of the technical infrastructure division under the city’s Construction Department.

City authorities have been struggling to find investors for central wastewater treatment facilities in Binh Thuy, Thot Not, O Mon and Cai Rang districts. Wastewater treatment stations in residential areas and craft villages are on the same boat.

Duong Vu Linh, head of the urban infrastructure and development division under the Department of Construction of Tra Vinh Province, said except for a wastewater treatment project capable of handling 18,000 cubic meters a day funded by GIZ, his province has been unable to implement other wastewater treatment and management projects given a lack of capital.

A representative from the Construction Department of Quang Ngai Province said the province cannot build systems for urban wastewater collection and treatment in many districts.

Government offers support to projects in Hoa Lac Hi-Tech Park

The Government has issued a decree defining special mechanisms and policies for the Hoa Lac Hi-Tech Park in Hanoi, including a 10 percent corporate income tax in 30 years for new projects with an investment from 4 trillion VND (176 million USD).

Projects,which were licenced before May 23, 2015 when the Prime Minister approved the park’s planning and are operating in the park, will enjoy preferential policies stated in licenses.

The decree also clarifies that the Government encourages and backs organisations and individuals to invest in building and developing homes for labourers working in the park through support in tax and land rent, land use fee.

Investors and experts being overseas Vietnamese and foreigners and their family members are considered for the issuance of multiple entry visas to Vietnam with a time limit suitable to their working schedule in the park.

Along with the support, organisations and individuals will enjoy other preferential policies in line with the law when they satisfy all necessary conditions.

For special projects that need to be attracted to the park, the Ministry of Science and Technology shall proposes the Prime Minister decide whether to grant additional investment incentives and support.

Tra Vinh enjoys surge in aquatic product export turnover

Local businesses in the Mekong Delta province of Tra Vinh earned 17.3 million USD from exporting aquatic products in the first half of 2017, an surge of 10.49 million USD against the same period last year.

They processed over 5,330 tonnes of aquatic product materials for export, including 406 tonnes of tiger prawn and 2,840 tonnes of white-leg shrimp, according to Pham Minh Truyen, Deputy Director of the provincial Department of Agriculture and Rural Development.

He also attributed the rise in aquatic product export revenue to favourable conditions for shrimp farming this year, as well as the province’s active prevention of diseases and technical support to farmers in shrimp breeding.

As of June 2017, Tra Vinh harvested 11,115 tonnes of white-leg shrimp and over 4,000 tonnes of tiger prawn. With over 24,000 hectares of shrimp farming currently, the province expects an output of over 38,000 tonnes of commercial shrimp.

Manulife holds Investor Day in Hong Kong, HCMC

Manulife is hosting an Investor Day in Hong Kong from 9am to 5pm local time on June 21 and in Ho Chi Minh City on June 22 from 2pm to 4.30pm local time.

Manulife’s senior management will present the company’s strategic direction with an emphasis on its Asia and Wealth & Asset Management businesses, customer-centric focus, and progress in digital innovation.

Interested parties can access a live webcast at Manulife.com/Events-Presentations. An archived version of the webcast audio will be available the day after the live event at the same location for six months. Investor Day slide presentations can also be found at Manulife.com/Events-Presentations.

Manulife Financial Corporation is a leading international financial services group that helps people achieve their dreams and aspirations by putting customers’ needs first and providing the right advice and solutions. It operates as John Hancock in the US and Manulife elsewhere. 

Manulife Financial Corporation provides financial advice, insurance, as well as wealth and asset management solutions to individuals, groups, and institutions. 

At the end of 2016, the company had approximately 35,000 employees, 70,000 agents, and thousands of distribution partners, serving more than 22 million customers. 

As at March 31, 2017, Manulife had $754 billion in assets under management and administration, and in the previous 12 months made almost $26.3 billion in payments to customers. 

As a member of Manulife Financial, Manulife Vietnam is proud to be the first 100% foreign-owned life insurer in Vietnam. The Company is also the only foreign-owned life insurer in Vietnam that owns a headquarters building worth US$ 10 million.

The Company now offers a wide range of innovative life insurance products, from traditional products to health, education, investment, and pension, etc. to over 600.000 clients through a strong and professional agency force at 50 offices in 36 provinces/cities across the country.

In 2016, Manulife planed to open 10 new offices across Vietnam adding to the network of 45 offices as of the end of 2015. This expansion helped the company better serve its customers as well as create employment opportunities. Currently, Manulife Vietnam has over 500 employees and around 20,000 agents in 35 provinces and cities nationwide.

Doosan supports partners to enter Vietnam

South Korea’s Doosan Heavy Industries & Construction Co. signed a memorandum of understanding (MoU) with five of its partners at its Vietnamese operation, Doosan Heavy Industries Vietnam Co. (Doosan Vina), to help them enter the Vietnamese market.

Doosan will provide consultancy in administration, financial management, and business management to support its partners in establishing subsidiaries or manufacturing facilities at the site of the Doosan Vina complex. 

It will also enter into negotiations with local authorities over its partners receiving benefits such as tax incentives. 

Vietnam’s power generation market has strong growth potential as the country is expected to add new facilities generating 100 GW of energy by 2030. 

“We will expand our support beyond Vietnam to India to help our partners to start business there as well,” said Mr. Kim Myung-woo, CEO of Doosan.

Doosan Vina is a high-tech industrial complex at the Dung Quat Economic Zone in central Quang Ngai province employing nearly 2,500 local workers and supplying the mega infrastructure products that make modern life a reality.

Its products include boilers for thermal power plants, heat recovery steam generators that increase the efficiency of a typical power plant by over 30 per cent, desalination plants the size of a football field that turn sea water into fresh water, material handling systems such as the cranes that are at the heart of logistics at ports around the world, and chemical processing equipment that turns the earth’s natural resources into the useful products we use every day.