Think tanks unite for world class furniture testing and emissions laboratory

Underwriters Laboratories (UL) and Quality Assurance and Testing Centre 3 (QUATEST3) announced the signing of an Alliance Agreement to develop a furniture and chemical emissions testing laboratory in Vietnam.

The goal of the agreement is to construct a world-class product testing facility and garner expertise in regulations that will enable Vietnamese furniture manufacturers to expand to global markets. 

“The Vietnamese furniture market is poised for tremendous global growth and QUATEST3 is an ideal partner for UL to erect a local laboratory,” said Alberto Uggetti, vice president and general manager at UL Environment. “Together, we can provide local testing to award certifications and conform to regulations, and act as an active bridge between global retailers and local Vietnamese suppliers.”

Under the leadership and management of QUATEST3, who brings extensive knowledge of the Vietnamese furniture market and a skilled workforce to the deal, the facility will feature UL’s world-class furniture testing equipment to demonstrate quality, durability, and strength.  

The lab, which is slated to open in early 2017, will also feature environmental chambers to test hazardous chemical emissions from furniture, building materials, electronics, and formulated products.  

According to Lam Hoang, director of QUATEST3, the new facility will give local manufacturers an advantage with convenient access to advanced testing facilities, and enable them to gain global competitiveness.

It will give manufacturers local access to testing in two critical areas: furniture durability and performance, which is critically important to demonstrate that products are of a high quality and meet the needs of the global furniture retail market. The second aspect is chemical emissions testing, which will help manufacturers meet increasingly stringent regulations on chemical exposure from products.

UL is a leading authority on chemical emissions testing and regulations, which includes California Air Resources Board (CARB) testing and certification, UL GREENGUARD Certification, and European regulations.

TH True Milk begins developing second Russia project

TH True Milk, Viet Nam's large dairy group, on October 18 began developing its second complex for feeding cows and processing milk in Kaluga Province, Russia.

This was reported by a Vietnam News Agency correspondent in Russia.

Speaking at the ground-breaking ceremony, TH True Milk Chairwoman Thai Huong expressed gratitude to the Russian government and Kaluga Province's authorities, who had actively supported and created favourable conditions for this project.

She promised that the project would use Israel's high technology for feeding cows and to train local labour.

Huong hoped that the project will become a global leading complex for feeding cows and processing milk in scale and quality of products.

In Kaluga, TH True Milk will have nine farms with nearly 100,000 cows in total, including 45,000 units of milk cow, she said. Under the plan, the first milk products from the project would reach customers in October next year. This was the second complex for feeding cows and processing milk on an industrial scale with total investment capital of US$2.7 billion under TH True Milk's 10-year investment strategy in Russia.

Earlier, the group began its first project in Volokolamsk District, Moscow, with total capital of $500 million developed under three stages. The project is expected to have an area of 140,000ha, 350,000 cows in total and total annual capacity of processing milk at 1.8 million tonnes.

The group also plans to establish a distribution system with 300 True Mart units in Russia.

At the ceremony, Governor of Kaluga Anatoly Artamonov said Kaluga has been implementing site clearance so land was available for the project and would also provide support to the project.

Artamonov said the project was important for the Russian market because the country still has a high demand for milk due to lack of supply in the local market.

Success of the project would enable Viet Nam's enterprises to increase investment in Russia and Kalugaregion.

Viet Nam's Ambassador to Russia Nguyen Thanh Son said TH True Milk was the first enterprise of the country to make such a significant investment in Russia and TH True Milk's project would contribute to the promotion of economic co-operation between Russia and Viet Nam.

VIB lending up by 12 per cent while NPLs decreased in first nine months of 2016

Vietnam International Bank (VIB) lent more in the first nine months of 2016 while seeing a decrease in non-performing loans.

According to VIB’s business results for the first nine months of 2016 released on October 20, lending balance reached VND53.374 trillion ($2.4 billion), equivalent to a 11.7 per cent growth rate against early 2016. Deposit growth rate was 12.1 per cent, reaching VND59.78 trillion ($2.7 billion).

VIB’s non-performing loan (NPL) rate decreased to 1.54 per cent compared to 1.84 per cent and 2.07 per cent recorded at the end of the second quarter of 2016, and end of 2015, respectively.

Fee and commission incomes increased by 41 per cent against the same period last year; VIB’s total assets amounted to VND88.6 trillion ($4 billion), up 5 per cent in comparison with end of 2015. The bank’s capital adequacy ratio (CAR) stood at 15.6 per cent, significantly higher than the 9 per cent ratio required by the State Bank of Vietnam (SBV). 

Additionally, according to the Vietnamese banks ranking report released by Moody’s on also on October 20, VIB’s credit ranking was upgraded to B2, listing it in the group of banks with the highest credit rankings in the market.

In the period, the bank earned VND940 billion ($42.15 million) of accumulated profit before provision, up 25.9 per cent compared to the same period last year; meanwhile, the bank’s total operating income increased by 21 per cent in comparison with that in the first nine months of 2015.

In early October, VIB received approval from the SBV to increase its charter capital to VND5.644 trillion ($253 million) from VND4.845 trillion ($217.3 million) by issuing bonus shares. This is in line with the plan passed by VIB’s general shareholder meeting in April 2016.

In terms of digital banking, the number of customers using MyVIB and VIB Internet Banking continues to grow impressively. 

Established in 1996, VIB now has 154 branches and transaction offices nationwide and more than 8,000 correspondent banks in 61 countries. Currently, the bank has nearly 4,000 employees serving 1.6 million personal customers and 34,000 corporate customers. Commonwealth Bank of Australia is VIB’s strategic shareholder.

Nielsen: FMCG growth slows to 4.3% in Q3

Growth in fast-moving consumer goods (FMCG) stalled in the third quarter of this year according to the latest quarterly Market Pulse report from market researchers Nielsen Vietnam.

FMCG operations in the six key cities of Hanoi, Ho Chi Minh City, Hai Phong, Can Tho, Nha Trang and Da Nang experienced a slowdown in the third quarter, with 4.3 per cent growth compared to 6.3 per cent in the second quarter, driven by an increase of 3.5 per cent in volume growth against 5.2 per cent in the second quarter.

A slowdown was seen in beverage growth nationwide, which declined for the first time in two years, at 4.7 per cent in the third quarter compared to 9.2 per cent in the second quarter, due to a fall in non-alcoholic beverages. Beer sustained impressive growth of 9.2 per cent.

Among the seven major FMCG categories - beverages (including beer), food, milk-based products, household care, personal care, cigarettes, and baby care - all recorded higher growth except for baby care.

Food recorded growth of 7.8 per cent, milk-based products 1.3 per cent, home care 8.2 per cent, personal care 3.9 per cent, and cigarettes 5.1 per cent growth. Beverages continued to be the biggest category, growing 41 per cent, the same as in the second quarter. Baby care fell by 12.1 per cent.

Growth momentum of FMCG in the six key cities was stable while slowing in other urban areas and rural areas. Home care grew 8.2 per cent growth in the six key cities, for example, but just 0.1 per cent in rural areas, while food grew 7.8 per cent in the six key cities but fell 0.3 per cent in rural areas.

“It’s time to get out of the comfort zone, which is the six key cities,” said Mr. Nguyen Anh Dung, Director of Retail Measurement Services at Nielsen Vietnam. “To fully seize market growth opportunities and drive a profitable business, it is rural areas, the unknown yet potential land, that manufacturers need to tap into.”

“The rural community in Vietnam accounts for 68 per cent of the country’s 90 million people and 51 per cent of FMCG sales. Furthermore, rural inhabitants are now investing in their education and have enjoyed income growth of around 44 per cent over the last three years. But these high-potential opportunities remain largely unknown to many businesses.”

He also noted that the mix of challenges and opportunities in rural areas requires manufacturers to have a greater understanding of rural consumers and a proper route to market plan.

StoxPlus & HoSE to hold Emerging Market conference

StoxPlus and the Ho Chi Minh City Stock Exchange (HoSE) will jointly hold a conference entitled “Vietnam’s Stock Market: On the Way to Emerging Market” on November 4 at the HoSE Exchange Tower at 16 Vo Van Kiet Street, District 1, Ho Chi Minh City.

The conference will provide a clear picture about Vietnam’s stock market and opportunities to exchange experience and ideas about market development, with the participation of local and foreign experts.

This is the second annual conference held by StoxPlus and HoSE, with support from Nikkei Inc. and QUICK Corp. from Japan. There will be about 250 in attendance, including representatives from investment and financial institutions from Vietnam, Japan, Singapore, Hong Kong, Shanghai, Thailand, Malaysia, the US and the EU.

Vietnam has attracted a lot of attention from foreign investors thanks to its sustainable economic growth in recent years and growth stories of private sector and public companies.

It remains, however, among frontier markets in the MSCI categories, which include Sri Lanka and Bangladesh. This has hindered it in attracting investment from major players such as global financial institutions and asset management companies, which have strategies to allocate their portfolio in global, regional or emerging markets.

Foreign investors now have the opportunity to increase their voting share up to 100 per cent in a public company in Vietnam when such companies have changed their foreign ownership limit (FOL) under current regulations.

In addition to the loosening FOL, a number of other actions are now being implemented by related government agencies towards the promotion of Vietnam’s stock market to Emerging Market (EM) classification by MSCI.

Questions up for debate at the conference include how Vietnamese Government agencies are dealing with the process, what are the main constraints on loosening FOL in Vietnamese public companies, and when can Vietnam’s stock market expect to be upgraded to EM status.

Addressing these concerns and as part of its cooperation with HoSE, StoxPlus has conducted a comprehensive review on FOL at listed companies in the VN-100 Index on HoSE. Vietnam’s leader in financial and business information has also conducted a survey to obtain opinions and feedback from more than 100 representatives of foreign institutional investors, including large asset management firms who have no exposure in Vietnam but who are waiting for change.

HoSE and StoxPlus will also present the key findings from their joint review of FOL on HoSE’s listed companies and the Foreign Institutional Investor Survey.

The event will receive technical support from the State Securities Commission (SSC), the International Finance Corporation (IFC), Nikkei Inc., QUICK Corp, and Indochine Counsel.

In related news, StoxPlus and the SSC signed a Memorandum of Understanding (MoU) in late June to increase cooperation for the stability and sustainability of Vietnam’s stock market and enhance its prestige in international financial markets. 

Vietnam has two stock exchanges offering investors nearly 700 companies with about $60 billion in market capitalization and daily trading value of nearly $100 million. Investor numbers are increasing day by day. According to figures from the SSC there were 79 securities companies in operation as at the end of September.

Masan Beverage seeks to increase VCF holding

The Vinacafe Bien Hoa Company (VCF) has announced it received an offer from Masan Beverage to publicly buy 2.61 million VCF shares, or a 9.84 per cent stake, at an offering price of VND170,000 ($7.6) per share.

The founder of the instant coffee brand Vinacafe announced this through an official statement sent to the Ho Chi Minh City Stock Exchange (HoSE) and VCF shareholders dated October 14.

VCF’s shares now stand at VND148,000 ($6.6) but liquidity has been low. It has a foreign shareholder, the Gaoling Fund, which holds 23.3 per cent.

If the deal proceeds, Masan Beverage would have to outlay some VND444 billion ($19.9 million) for the holding, which would increase its stake from 60.16 per cent to 70 per cent.

In February 2015 Masan Consumer (MCF) transferred 14.14 million VCF shares, or 53.2 per cent of charter capital, to its subsidiary Masan Beverage as part of its ongoing restructuring to strengthen its position in the consumer goods sector.

In February this year Masan Beverage purchased 1.85 million shares for VND157,000 ($7.03) each, or VND290.45 billion ($13.01 million) in total.

The shares represented 6.86 per cent, with Masan Beverage therefore increasing its holding in VCF to 15.99 million shares, or 60.16 per cent of charter capital. In 2015 VCF recorded profit of VND295 billion ($13.21 million) but earnings per share were VND11,112 ($0.49).

Masan Beverage is a subsidiary of Masan Consumer Holdings within the Masan Group and operates in the non-alcohol beverages segment. Besides holding shares in VCF it also holds some 65 per cent of the Quang Ninh Mineral Water Company and 63.95 per cent of the Vinh Hao Mineral Water Company.

Vinacafe Bien Hoa began as the Coronel Coffee Plant in 1969. It created the instant coffee brand Vinacafe, which gained international stature. Vinacafe Bien Hoa was then acquired by the Vietnam National Coffee Corporation (Vinacafe).

VCF is the leading instant coffee manufacturer in Vietnam with a 41 per cent market share, according to a Nielsen Vietnam report. Its product portfolio includes 3-in-1 Original, which has been a customer favorite for over 23 years, and Vinacafe Chat, which it launched in 2015 with specific regional filtered coffee flavors, including Chat Ha Noi and Chat Sai Gon.

Last May it launched the coffee maker Cafe de Nam Phin Dien, inspired by the unique and traditional Vietnamese “phin”, or filter, coffee, but with the added convenience and hygiene of contemporary coffee making.

It was also the first coffee manufacturer to sign a memorandum of transparency in coffee manufacturing and the protection of consumer rights, initiated by the Vietnam Standard and Consumers Association.

PSI now a subsidiary of PVCombank

PetroVietnam Securities Incorporated (PSI) became a subsidiary of PVCombank after the latter increased its holding in the former from 9.32 per cent to 50.21 per cent on October 12.

“PSI will benefit from becoming a subsidiary of PVCombank, gaining access to its customer network, transaction points and office systems, enhancing PSI’s product diversification and cross-selling opportunities,” Mr. Nguyen Anh Tuan, Chairman of PSI, told VET.

PVCombank purchased shares from four previous shareholders: 22.5 per cent from Vietinbank Capital, 6.7 per cent from the Vietnam investment and Asset Trading Joint Stock Company (VNassets), 6.6 per cent from the PetroVietnam Trade Union Finance Investment Corporation (PVFI), and 4.6 per cent from the My Khe Vietnam Joint Stock Company (MKV), according an announcement from PSI on October 12.

The swap ratio between PVCombank and PSI is set at 1:1, according to a resolution from PSI’s 2016 annual general meeting.

PSI’s business plan is unlikely to undergo any significant change in the short term. “The business plan from earlier in the year will continue to be implemented,” Mr. Tuan said. “From 2017 the plan will be based on market circumstances and the general plan of PVCombank.”

PSI has secured all the benefits of investors, both local and international, and there is no change to its Board of Management, he further added. PVCombank did not provide any further information when contacted by VET.

PSI targeted total revenue of VND88 billion ($3.94 million) and profit of VND5 billion ($224,150) this year.

In the first half it recorded revenue of VND42 billion ($1.88 million), an increase of 12.6 per cent year-on-year. After-tax profit was VND2.5 billion ($112,075), compared to a loss of VND5.6 billion ($251,048) in the first half of last year. Operating costs fell 6.6 per cent to VND41.85 billion ($1.87 million), from VND37.115 billion ($1.66 million).

It also saw significant declines in total assets, by 43.18 per cent from VND1.12 trillion ($50.2 million) to VND636.52 billion ($28.53 million), due to falls in cash and equivalent.

Steel giant pledges $477,000 for university's start-up foundation

Steel maker Hoa Sen Group on Monday agreed to provide VND10.5 billion (US$477,000) to the HCM City National University's Start-Up Foundation to speed up start-ups by students and young teachers from the university and others in the city as well as neighbouring provinces.

The money will be allocated over five years through 2020.

The foundation seeks to enrich young people's knowledge of start-ups and strengthen the capacities of business incubators.

"Starting up is tough," Luu Phuoc Vu, chairman of Hoa Sen Group, said.

"Without strong efforts, it cannot be successful especially in a competitive economy. To start up, people need to be creative."

Earlier, at an event organised in Ha Noi, Vu had pledged to support start-up projects launched by the HCM City Youth Union in 2016-21.

Ha Noi and HCM City have been making strong efforts to develop start-up programmes.

They are in fact trying to become start-up hubs to boost their competitiveness and development.

First Asian UFC Gym opens in HCMC

The California Management Group (CMG.ASIA), a Vietnam-based lifestyle and entertainment company, officially opened its first franchised UFC Gym in Ho Chi Minh City’s District 2 on October 18.

UFC Gym, a fitness gym franchise of the Ultimate Fighting Championship (UFC), announced a few months ago it was expanding into Asia with total investment of $15 million and committed to setting up five centers in Vietnam led by CMG.ASIA, its expansion partner in the region and the owner of popular fitness brands such as California Fitness & Yoga.

It signed an exclusive development agreement in September last year to open UFC Gyms throughout parts of Southeast Asia. Each gym costs around $3.5 to $5 million to build, depending on location and space.

“This is the first UFC Gym in Asia and among a number we plan to open in the future and Vietnam is a pioneer location,” said Mr. Randy Dobson, Chairman of CMG.ASIA. “UFC Gym is a perfect match for our exciting portfolio of international fitness and entertainment brands we currently offer in Vietnam and Southeast Asia.”

“Our partnership with CMG.ASIA marks another major milestone for our company as we introduce UFC Gym to Vietnam,” said Mr. Brent Leffel, CEO of UFC Gym. “The overwhelming response to our fitness concept and Train Different philosophy has been incredible.” 

“This expansion speaks to the international appeal of UFC’s brand,” said Mr. Dana White, Chairman of the UFC. “From our athletes to our fan base, we have seen significant growth throughout international markets.”

“We consider Asia as the birthplace of mixed martial arts (MMA), so we are thrilled that UFC Gym is now expanding into this region, bringing our signature MMA styles of training and fitness to our fans in Southeast Asia,” he went on. “Asia is one of UFC’s fastest growing markets and we want to bring signature MMA styles of training and fitness to all fight fans in the region.”

Membership includes unlimited access to UFC Octagon and signature classes such as Daily Ultimate Training, TRX, Muay Thai, Brazilian jiu-jitsu, kickboxing, boxing, MMA conditioning, women’s self-defense, and group fitness classes such as Zumba, Power Yoga, Hot Hula and Cycle Circuit.

Since its establishment in 2009, UFC Gym, the fast-growing franchise combining MMA and fitness in the US, has opened more than 120 centers in the US, Australia and Canada. Its training programs are suitable for people of all ages and physical condition.

The gym offers a full range of fitness classes, group and private MMA training, as well as group fitness, personal and group dynamic performance-based training and MMA youth programming.

UFC Gym is the first major brand extension of UFC, the world leader in MMA. It was the first worldwide MMA and is the largest pay-per-view event provider in the world.

Rubber latex prices move up in southern Vietnam

The price for one ton of fresh natural rubber latex has increased about VND2 million (US$89), according to rubber traders in the southeastern region.

A ton is now purchased at VND4.5-12 million, up VND1-2.5 million compared to early September, the traders said.

Some major natural rubber latex producing countries have reduced tapping because price has been too low. Sometimes it has accounted for only two thirds of present level.

The output reduction has sent the world rubber price to increase about 20 percent compared to bottom level in June.

In addition, China has increased rubber import to meet tire making demand.

Five industrial corridors to be formed in Red River Delta

Five industrial corridors will be formed in the Red River Delta under a plan on industrial development for the region until 2025 with a view extended to 2035 recently approved by the Minister of Industry and Trade. 

Industrial corridors will include Hanoi-Hai Phong, Hanoi-Noi Bai-Ha Long, Hanoi-Viet Tri (along the new expressway), and Hanoi-Lang Son (along National Highway 1) in addition to a coastal corridor.

Under the plan, industries will account for 40-42% of the regional’s total economic output by 2025 and 38-40% by 2035.

By 2025, the region’s industrial sector will have a qualified workforce using modern and advanced technologies to make high-quality products for both domestic consumption and export.

The plan targets to have products meeting international standards by 2035 when those working in the sector will play a significant role in research, design and manufacturing.

Major products to be made in these industrial corridors include electronic devices, cars and motorbikes, pharmaceuticals, garments, building materials and so on.

Measures to implement the plan include pushing for further administrative reform, attracting investment capital, encouraging supporting industries, training human resources, developing markets and fostering inter-regional cooperation.

Vietnam International Industry Fair connects domestic, foreign trademarks

More than 200 enterprises participated in the 25th Vietnam International Industry Fair (VIIF 2016), which took place at the International Exhibition Centre in Hanoi from October 17-20.

This year’s event features the participation of over 100 domestic enterprises from numerous countries and territories around the world including Tatarstan, India, Chinese Taipei, China, Japan and the Republic of Korea.

Covering an area of more than 4,500 square metres, the fair introduces and displays the latest technologies and machinery in various fields, such as manufacturing, energy, automation and the supporting industry.

The VIIF 2016 is expected to support markets and enterprises in enhancing their trade promotion activities and expanding their investment cooperation.

Over the years, the annual fair has become an important and prestigious trade and investment promotion activity for both domestic enterprises and foreign businesses in Vietnam. It has offered an opportunity for them to meet, exchange ideas, seek partners and expand their markets, strengthening their competitiveness during the process of industrialisation and international economic integration.

The event has actively contributed to innovation and the development of the Vietnamese economy, particularly its industrial sector.

The VIIF 2016 was jointly organised by the Ministry of Culture, Sports and Tourism, relevant ministries and branches and the Hanoi People’s Committee.

Italy promotes cosmetics fair to local businesses

Italian Trade Commission under the consulate of Italy in HCMC last week organized a meeting to promote an international cosmetics fair called Cosmoprof Worldwide Bologna to Vietnamese businesses to search for cooperation opportunities.

Mattia Miglio, head of international marketing and relations department of Cosmoprof, said Vietnamese businesses who wish to expand their market of beauty care overseas should attend the event to promote their products to international partners.

Last year’s event lured 2,510 exhibitors from 150 countries and 250,000 visitors.

The fair’s organizers have launched “On the road” series to promote the event to not only Vietnam but other major markets of beauty care products, including Hong Kong from November 15 to 18; Bologna, Italy from March 17 to 20 and Las Vegas from July 9 to 11.

Vietnam trade deficit with ASEAN up

Vietnam’s trade deficit with other ASEAN countries grew to more than US$4.5 billion in January-September, according to a report of the General Department of Customs.

Vietnam’s imports from the ASEAN bloc amounted to US$16.7 billion, while its exports reached only US$12.2 billion, leading to a trade deficit of US$4.5 billion, up by US$400 million year-on-year.

Thailand was the biggest ASEAN exporter to Vietnam with over US$6 billion, followed by Malaysia with US$3.7 billion, Singapore with US$3.5 billion and Indonesia with US$1.96 billion.

Vietnam shipped US$2.7 billion worth of commodities to Thailand, and US$1 billion worth to Malaysia, Indonesia and Cambodia.

Vietnam’s trade deficit with Thailand, Singapore and Malaysia stood at US$3.3 billion, US$1.8 billion and US$1.4 billion, respectively. Its trade deficit with Cambodia and the Philippines was less than US$1 billion.

Imports of Thailand’s fruits and vegetables into Vietnam have risen sharply, with the figure in September alone amounting to US$71 million, double the same period last year.

Other ASEAN nations mainly sell Vietnam fuels, completely built-up (CBU) autos and auto parts in the first nine months. Vietnam imported 23,900 autos worth US$440 million from Thailand and 2,800 valued at over US$140 million from Indonesia.

Vietnam spent US$1.2 billion and US$890 million importing fuels from Singapore and Malaysia in the period, respectively.

Energy label certification to be abolished

The Ministry Industry and Trade has announced it will quickly nullify the requirement for enterprises to obtain energy label certification for customs clearance, having adopted this troublesome practice for four years.

Minister of Industry and Trade Tran Tuan Anh chaired a meeting this Tuesday to review the regulations on energy labeling, an industry-specific inspection procedure established in 2012 by his ministry.

Ever since its promulgation and enforcement, the procedure has made life harder for enterprises, causing damage totaling hundreds of billions of dong due to a “discrepancy” among the rules on testing for customs clearance.

The Ministry of Planning and Investment and the American Chamber of Commerce in Vietnam (AmCham) earlier sent written objection to this practice, saying it has added yet another troublesome administrative procedure and thus adversely affected the competitiveness of businesses.

Every year, thousands of imported items are obliged to have a certificate of energy labeling for customs clearance. Enterprises have to ask the General Department of Energy for energy labels as a form of license before their imports go into circulation as per Circular 07/2012 of the ministry.

Noting down the opinions of relevant agencies in the process of business environment reform as directed by the Government, Minister Tran Tuan Anh decided to amend Circular 07 to remove difficulties and troubles for enterprises. He stressed the main objective of energy labeling was to limit the products with energy efficiency below the minimum level rather than to put up barriers.

Therefore, importers should be permitted to apply the results of an energy efficiency test to all shipments with the same serial number or model, the same manufacturer and the same origin, to speed up customs clearance.

Also, they should be allowed to use such test results for customs clearance, instead of an energy labeling certificate. In addition, those items by the reputable brands imported from the countries with higher standards than Vietnam should not be rechecked in terms of energy efficiency.

In short, the General Department of Energy has to review the legal basis of the rules relating to energy labeling certification before or after customs clearance, proceeding towards elimination of this paper to avoid any conflict between customs agencies, enterprises and the ministry.

Minister Anh also requested the drafting of a text for “accreditation of energy labels of imported equipment” such as the Law on Efficient Energy Use to quickly bring down the number of cases subject to inspection and labeling.

With the abolition of Circular 37 on checking formaldehyde content in imported fabrics and the upcoming eradication of energy labeling, the Ministry of Industry and Trade still has one controversial procedure to review; that is chemical examination.

High potential seen in Vietnam-Mercosur partnership

President of the Southern Common Market (Mercosur)-ASEAN Chamber of Commerce Rodolfo Caffaro Kramer has highlighted prospects for broader cooperation between Vietnam and Mercosur in trade and beyond. 

He said Vietnam is an important trade partner of Mercosur, which comprises five members of Argentina, Brazil, Paraguay, Uruguay and Venezuela, and six associate members of Bolivia, Chile, Peru, Colombia, Ecuador and Suriname. 

The second Vietnam visit of South American diplomats and enterprises aims to boost trade among Mercosur members and Vietnam through building a “bridge” for businesses of both sides, Kramer told the Vietnam News Agency. 

Along with meetings with representatives of major Vietnamese firms, the delegation will work with leaders of the Vietnam Chamber of Commerce and Industry to discuss the organisation of a visit of ASEAN businesses to Mercosur member countries, he revealed. 

Regarding the impacts of the establishment of the ASEAN Community to the Mercosur, Kramer said that this is a very positive thing to Mercosur, especially in investment. 

According to Kramer, the liberalisation of trade, investment and services as well as the simplification of administrative procedures among the ASEAN members will create favourable conditions for South American firms in Southeast Asia, helping them save time and cost.

He praised the ASEAN Community as an extraordinary model of regional integration that still preserves each member’s diversity and achieves an equal integration level. 

Trade between Mercosur and ASEAN has yet to match their huge potential, he said, asserting that this means there is room for both sides to bolster their partnership. 

Founded in 1991, Mercosur is considered a huge economic bloc with a total population of 275 million, or 70 percent of the South American region, and a combined GDP of 4.58 trillion USD, accounting for 82.3 percent of the region’s GDP. 

The Mercosur-ASEAN Chamber of Commerce was set up in December 2013, headquartered in Montevideo, Uruguay. It has set up representative offices in Hanoi, Jakarta, Manila, Asuncion, and Buenos Aires.

Over 3 trillion VND of Gov’t bonds mobilised

The State Treasury mobilised more than 3 trillion VND (135 million USD) worth of Government bonds through an auction held by the Hanoi Stock Exchange (HNX) on October 19.

The sale included 1 trillion VND (45 million USD) in 10-year bonds, 1 trillion VND in 15-year bonds, and 707 billion VND (31.81 million USD) in 20-year bonds, with annual interest rates of 6.14 percent, 7.2 percent, and 7.71 percent, respectively.

The remaining 300 billion VND (13.5 million USD) in 20-year bonds was raised through a secondary auction.

Since the beginning of 2016, the State Treasury has mobilised over 268.3 trillion VND (12.07 billion USD) in Government bonds through HNX tenders.

Vietnam promotes trade, investment in Germany

Vietnam’s trade office in Germany and the Trade Promotion Agency (TPA) under the Ministry of Industry and Trade (MoIT) organised a trade and investment promotion forum on October 18. 

The forum at the Frankfurt am Main city attracted the attendance of more than 100 Vietnamese and German enterprises. 

A representative of the TPA called for German enterprises to take advantage of opportunities to expand business and investment in Vietnam and pledged to create favourable conditions for German investors. 

Jurgen Ratzinger, International Director of the Frankfurt IHK, appreciated the organisation of the forum and considered it as a continuance of the relationship between Frankfurt and Vietnam. 

Vietnam is considered as one of the important partners of Germany and IHK always accompanies enterprises of the two countries to boost bilateral economic and trade activities. 

Udo Corts, a former minister at Hessen State, stressed the role of education and training cooperation in economic development and expected the two countries’ businesses pay more attention to highly-skilled human resources training. 

Nguyen Minh Quang, Vice Chairman of the Hung Yen provincial People’s Committee, introduced the province’s advantages and called for German companies to invest in the province. 

Earlier at the Vietnam Trade Office in Berlin, the TPA delegation, Hung Yen, Nghe An and Quang Binh provinces had a working session with the Trade Office and representatives of the Association of Vietnamese Enterprises in Germany.

Agencies seek ways to boost anti-IP rights violation cooperation

A roundtable discussion was held in Hanoi on October 20 to look for ways to improve the effectiveness of cooperation among enforcement agencies in the fight against counterfeits and intellectual property rights (IPR) infringements. 

The function was part of a project on improving coordination among IPR enforcement agencies in Vietnam funded by the UK Embassy. 

Deputy Minister of Industry and Trade Do Thang Hai said Vietnam established a national steering committee for anti-smuggling, trade fraud and counterfeiting. 

He, however, admitted that the counterfeiting and IPR infringements have become more complicated and even involved foreigners. 

The fight against counterfeiting and IPR violations cannot be successful without businesses’ active cooperation and the entire society’s engagement, he stressed. 

Lord Puttnam, the UK Prime Minister’s Trade and Cultural Envoy, said Vietnam has strongly integrated into the regional and global economies in recent years, which required improving the business environment and competitiveness to create a transparent climate for enterprises. 

The IPR enhancement will promote technology transfer, product development and stimulate businesses’ creative process, he said, noting that the British Embassy has cooperated with Vietnam through programmes to improve the capacity of market monitoring officials and the project to strengthen coordination among IPR enforcement agencies.

Data of the Market Surveillance Agency show that by October 2016, the market surveillance force detected over 29,400 cases relating to counterfeits, low-quality goods and violation of the IPR. 

At the event, participants suggested measures to boost cooperation among relevant agencies. Dave Lowe, head of the IP Enforcement and Capacity Building at the UK’s Intellectual Property Office, also shared experience in reinforcing enforcement bodies’ coordination.-

TAL's garment factory starts operations in Vinh Phuc

Hong Kong-based TAL Apparel Group's US$50 million garment factory in northern Vinh Phuc Province has started operations.

The plant, for which TAL got an investment certificate in 2014, has an export capacity of 12 million shirts per year and provides 3,500 jobs.

This is TAL's second plant in Viet Nam. The company entered Việt Nam in 2004 with the $40 million Viet My Garment Textile and Garment plant in Phuc Khanh industrial zone, Thai Binh Province. TAL's two factories together provide jobs with stable income for more than 16,000 workers.

TAL produces products for huge global retailers in the US, EU and Asia and famous brands such as Burberry, Brooks Brothers, Banana Republic and Tommy Hilfiger.

To date, TAL has 11 factories in six countries, including China, Thailand, Indonesia, Malaysia, Ethiopia and Viet Nam, with a total output of 60 million units per year.

TAL said the group would continue to invest in modern technology to meet environmental standards, joining the global supply chain, and contribute to establishing the Made-in-Viet Nam label in the world market. 

VN firms urged to use e-commerce

Vietnamese enterprises, especially small- and medium-sized ones, should increase the use of e-commerce to boost their exports and showcase their products to potential partners globally, a seminar heard in HCM City on october 20.

Nguyen Thi Hanh, chief representative of the Viet Nam E-Commerce and Information Technology Agency (Vecita) in HCM City, said Viet Nam was among countries with a high growth rate in internet penetration and has around 50 million internet users or more than half of its population.

Its key export markets like the US, Japan, South Korea and the EU have high rates of internet use, and it would be very effective if enterprises know how to use the internet to access them, she said.

"But the use of e-commerce among Vietnamese exporters remains low," she told the seminar organised by the world's leading e-commerce company, Alibaba, OSB Investment and Technology JSC, VPBank, and the Post and Telecommunication Insurance Joint Stock Corporation (PTI).

A survey by Vecita of more than 800 export firms found that only 42 per cent of them have websites.

Most surveyed firms contacted their business partners through direct meetings (59 per cent) and via trade fairs and trade promotion programmes (19 per cent), while only 19 per cent said they approached potential buyers through websites, e-commerce platforms and email, she said.

In the survey, more than 59 per cent of enterprises said e-commerce was "effective" for exports and 14 per cent said "ineffective," she said.

Le Dang Doanh, former director of the Central Institute for Economic Management, said, existing and future free trade agreements would provide opportunities for Vietnamese firms to boost exports, but the competition would be fiercer.

Vietnamese exporters have been encountering challenges in a fast-changing global economy and due to the slow growth of the global economy and the depreciation of the British pound, he said.

This requires them to adopt effective measures to boost exports, he said.

Tran Xuan Thuy, the country manager of Alibaba in Viet Nam, said cross-border transactions were shifting from a traditional environment to an online environment to optimise operations.

With advantages like low costs, convenience and absence of geographical restrictions, e-commerce offers opportunities for small-scale firms to compete, explore and expand markets, he said.

Speaking about her experience in using e-commerce to promote exports, Le Thi Thien Ngan, director of Paper Colour Co Ltd, which makes 3D pop-up cards for export, said her company had been exporting online since 2014 and enjoyed great success.

From making 1,000 products a month, the company has expanded to produce 22,000-24,000 now, she said.

Alibaba, OSB, VPBank and PTI have signed an agreement to offer exporters services to enable them to access the global market.

Hanh said Viet Nam's e-commerce sector had grown at 25-30 per cent annually in recent years, and this was expected to continue for the next five years.

VN, China boost investment, tourism

Vietnamese and Chinese businesses are encouraged to broaden trade co-operation in order to achieve the 2017 objective of bilateral trade worth US$100 billion, said Minister Counsellor at the Embassy of Viet Nam in China Nguyen Dac Thanh at a trade promotion workshop held in Hunan Province, China on Wednesday.

The workshop, jointly organised by the Vietnamese Embassy in China and Hunan Province's Department of Commerce, is part of the ongoing 2016 ASEAN-Hunan Famous Brand High-Quality Products Trade Fair, which started Wednesday and will last until October 23.

At the workshop, Thanh reaffirmed that it was a necessary step to help businesses from the two countries to seek opportunities and potentials for co-operation in the context of the newly established ASEAN Economic Community (AEC) and the ever developing, stable and in-depth friendly co-operation between Viet Nam and China.

As oriented by Party leaders and the governments of both Viet Nam and China, the two sides will continue to deepen co-operation; implement effective methods to boost sound and stable bilateral economic, trade and investment, beneficial to economic and general living standard development in the respective nations; and encourage businesses to broaden trade co-operation in a stable, harmonious and secure manner.

Attending the workshop were authoritative figures from local government and Hunan departments, as well as officials and scholars from both Viet Nam and China. Additionally, representatives from 40 Vietnamese businesses and nearly 100 Chinese businesses attended the workshop.

Many scholars and experts at the workshop exchanged opinions on the respective countries' economic situations, opportunities and challenges, to seek future co-operation and development. The Government of Viet Nam is always ready to create favourable conditions for Chinese businesses to thrive and invest in Viet Nam.

Twenty businesses from Viet Nam attended the trade fair in Hunan with nearly 70 stalls of high quality products and a variety of specialities from the many regions of Viet Nam.

Viet Nam encourages Chinese businesses to invest in projects in accordance with Viet Nam's needs and its sustainable development strategy, especially in the fields of construction materials, machinery, electrics, renewable energy and green development.

Trade relations between Viet Nam and China have shown positive achievements in recent years. The total trade balance in 2015 between the two countries was above $66 billion, according to Viet Nam's statistics. China is Viet Nam's largest trade partner for 12 consecutive years, while Viet Nam became China's largest trade partner in ASEAN for the first time in 2015.

As of July 2016, Chinese businesses had invested in nearly 1,500 projects in Viet Nam with total investment funding of almost $11 billion. China is the 9th largest international investor in Viet Nam.

China sends more tourists to Viet Nam than any other country, and it is also the number one destination for Vietnamese travelers. In the first 9 months of 2016, the number of Chinese tourists visiting Viet Nam has increased by around 55 per cent, reaching nearly two- million, which was the total in 2015.

VIB improves performance in 9 months

The Vietnam International Bank (VIB) earned VND940 billion (US$42 million) in accumulated profit before provision from January to September, up 25.9 per cent compared to the same period last year.

During this period, VIB's total operating income increased by 21 per cent year-on-year, the bank's business results, which were released on October 21, revealed. Its lending balance crossed VND53.37 trillion in the period, up 11.7 per cent year-on-year, while deposits saw an annual growth of 12.1 per cent, to approximately VND59.8 trillion.

Fee and commission incomes increased by 41 per cent against the same period last year, the bank said, adding that its total assets amount to VND88.61 trillion, a 5 per cent surge compared to end of 2015.

Notably, the bank's non-performing loan (NPL) rate has decreased in the past nine months to 1.54 per cent, from 1.84 per cent at the end of this year's second quarter. It was 2.07 per cent at the end of 2015.

The bank's capital adequacy ratio (CAR) stood at 15.6 per cent, much higher than the 9 per cent ratio required by the State Bank of Việt Nam (SBV).

On October 20, VIB's credit ranking was upgraded to B2, listing it in the group of banks with the highest credit rankings in the market, after the Vietnamese banks ranking report was published by Moody's.

Earlier, the central bank approved VIB's plan - passed at VIB's general shareholder meeting in April - to issue bonus shares in order to increase its charter capital to VND5.64 trillion from VND4.84 trillion. 

TPBank offers new support package for businesses

The Tien Phong Commercial Joint Stock Bank (TPBank) started offering its business support package worth VND3 trillion (US$134 million) at a lowered annual rate of 6.8 per cent on Thursday.

This is the second time this year that TPBank has offered a preferential credit package for business customers. In April, it was the first commercial bank to lower interest rates, in accordance with the state policy, and offer a package worth VND5 trillion ($223 million).

Eligible businesses include exporters, support industry manufacturers and start-ups that are looking for funding. For start-ups, the package specifically applies to technology, e-commerce, services and finance sectors.

The package rates will be offered till December 31.

The bank is aiming to encourage and support businesses, in terms of technological solutions, productivity and value additions, by creating favourable conditions. Enterprises can consult with the bank, expect flexibility and avail of the package. TPBank hopes that its preferential credit package will help businesses increase production, get more competitive and meet their 2016 business goals.

Phu My Hung selling Saigon South Residences

Phu My Hung Development Corporation will begin sales of its new project, Saigon South Residences, on Sunday, with prices starting at VND2 billion (US$91,000).

The project marks a major change in the company's strategy by targeting young people who want to enjoy Phu My Hung's quality at more affordable prices. For this, the company has gone outside its Phu My Hung City Centre in District 7 for the first time to develop a project.

Saigon South Residences is situated on Nguyen Huu Tho Boulevard in Nha Be District.

It is being developed on an area of nearly 33,000ha. Of this, 31 per cent will be for apartments and 69 per cent for green spaces and facilities like a swimming pool.

Six buildings with 19-20 floors will be built with 1,840 apartments. Nearly 70 per cent of the units will have two bedrooms and range in size from 60sq.m to 70sq.m.

The apartments will be handed over to buyers in 2019. 

VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VET/VIR