Petrol prices drop over 600 VND per litre

The prices of RON 92 petrol and bio-fuel E5 dropped 604 VND and 593 VND per litre, respectively, from 3:00 pm on August 4, according to the Ministry of Industry and Trade and the Ministry of Finance. 

It was the fourth fuel price cut after five hikes in a row and the eighth cut since the beginning of this year. 

The decision also reduced the prices of diesel by 637 VND and kerosene and mazut by over 370 VND per litre.

RON 92 and E5 are now sold at no more than 14,699 VND and 14,250 VND per litre respectively, while the ceiling prices of diesel 0.05S and kerosene are 11,661 VND and 10,269 VND per litre. 

The ministries said the global price of fuel during the last 15 days to August 4 was 47.02 USD per barrel, down nearly 3 USD per barrel while the price of diesel 0.05S reduced by approximately 5 USD per barrel. 

The base fuel prices will be adjusted by the two ministries every 15 days, depending on the fluctuation of world oil and gas prices since the previous announcement and should be in accordance with the government’s Decree 83/2014/ND-CP, and Circular 39/2014/TTLT-BCT-BTC.

Laos welcomes Vietnam’s projects on goods production, wood processing

Lao Prime Minister Thongloun Sisoulith has said his country wants more Vietnamese investment in consumer goods production and timber processing to diversify the trading portfolio between the two sides. 

He met Vietnamese Minister of Industry and Trade Tran Tuan Anh on August 4, who was in Vientiane to attend the 48th ASEAN Economic Ministers’ Meeting and related events. 

Anh said his ministry has strongly bolstered industry and trade cooperation with Laos and reaped encouraging outcomes, including the issuance of a circular guiding the implementation of the countries’ border trade agreement so as to soon put the deal’s special incentives into practice. 

The ministry has also held a series of workshops to popularise the Vietnam – Laos Trade Agreement and the border trade pact in Laos’s Vientiane, Savannakhet and Luang Prabang provinces and Vietnam’s capital Hanoi. 

It has completed a 220kV power line project which is now ready to connect with the Laos-based Xekaman 1 hydropower plant to bring electricity from the country to Vietnam. Efforts have also been made to implement projects on potassium salt mining in Khammouane province and building a hydropower plant in Luang Prabang on schedule, the official noted. 

At the meeting, the Lao leader asked his guest to ensure the progress of Vietnam’s hydropower and mining projects in his country, while promoting the use of the East-West Economic Corridor, which traverses Vietnam, Laos, Thailand and Myanmar, to augment bilateral trade. 

The application of the one-stop-shop model at Vietnam’s Lao Bao border gate and its Lao counterpart Densavanh also needs to be reviewed to extend this model to their other ports of entry, he said.

Tuna export revenue predicted to remain unchanged in 2016

Vietnam’s tuna exports are expected to bring much revenue as in 2015 despite a slight decline in orders from Japan, according to the Vietnam Association of Seafood Exporters and Producers (VASEP). 

According to the VASEP, tuna exports earned the country 225 million USD in the first half this year, a slightly less than the same period last year. The decline happened in all markets except ASEAN countries. 

VASEP predicts the tuna export value will reach 123 million USD in the third quarter, up five percent against the same period, thanks to increasing tuna consumption in the United States and the European Union. 

The increase in the third quarter would help tuna exports reach 455 million USD for the whole year, equivalent to the revenue of 2015. 

Among the major importers, Japan has seen the deepest decline with a decrease of nearly 34 percent in the second quarter this year. 

According to Le Hang, Vice Director of the VASEP.Pro Centre, the main reason leading to the decrease of tuna exports to Japan is the high levy of 6.4-7.2 percent imposed on Vietnam’s tuna. 

Besides that, high production costs entail the high price of Vietnam’s tuna. 

Japan is the fourth largest importer of Vietnam’s tuna, after the US, EU, and ASEAN.

Thanh Hoa moves to realise green growth goals

An action plan for implementing the green growth strategy funded by the United States Agency for International Development (USAID) was unveiled in the central province of Thanh Hoa on August 4. 

Implementing the Vietnam National Green Growth Strategy, the provincial People’s Committee has built an action plan for realising the strategy in the locality to 2020, with a vision to 2030.

This is considered as a master plan to promote green economic development, reduce greenhouse emissions through economically and effectively using energy, enhancing the use of renewable energy, protecting biodiversity and effectively managing environmental pollution. 

Thanh Hoa will focus on promoting clean production and reducing greenhouse emission, towards becoming one of the leading localities in realising the goals of environmental protection. 

Along with the action plan for green growth, the provincial People’s Committee has also built action plans to increase the area for planting “luong” bamboo, and reduce emissions from deforestation and forest degradation (REDD+) between 2016-2020, with a vision to 2030. 

These are specific strategies to foster green growth in the agriculture and forestry of the locality, based on its potential and strength. 

Thanh Hoa has the largest area of “luong” bamboo nationwide, with 150,000 ha. The plant brings high economic value and great benefits to the local community, especially those in remote and mountainous areas. 

Vice Chairman of the provincial People’s Committee Nguyen Duc Quyen expressed the hope that international organisations will cooperate with and support the province in implementing the action plans. 

Craig Hart, Deputy Director of USAID in Vietnam hailed local authorities for their efforts to promote green growth, saying that the action plans will help Thanh Hoa achieve important targets in economic development, carbon emission reduction and environmental protection. 

He stressed that USAID will work closely with and assist the locality in performing these action plans.

Challenges amid hike in shrimp exports

Despite a hike in shrimp exports anticipated for this year, the sector still has to face many challenges, the Vietnam Association of Seafood Exporters and Producers (VASEP) said at a conference in Ho Chi Minh City on August 3.

Deputy Director of the Vasep.Pro Centre Le Hang said in the first half of this year the shrimp sector earned over 1.35 billion USD, a year on year increase of 4.8 percent. It is also forecast to bring home 3.2 billion USD this year, up 10 percent against last year.

She said that the sector has seen a recovery in key export markets such as the US, the EU, the Republic of Korea and China, except for an 8.8 percent decrease in exports to Japan.

However, Hang is concerned that the sector is facing high production costs, and a shortage of raw materials as among issues that have hindered the sector’s growth. 

She stated Vietnam’s shrimp export prices are 20 percent higher than that of other foreign competitors, for instance, the average prices of Vietnamese shrimp to the US is trading at 11.2 USD per kg while China and India are selling at 6.7 and 10.8 USD per kg,respectively.

Besides this, a surplus supply over demand has made the market’s competitiveness fiercer both home and aboard, Chairman of the Board of Management of Minh Phu Seafood Group Le Van Quang said.

He said shortcomings and challenges are seen in most shrimp manufacturing processes like breeding, harvesting, preservation and exports which might lead to instability, high costs and weak competitiveness for the sector.

In order to cope with the situation, delegates at the conference proposed the State and relevant authorities should introduce overall measures to help the sector develop substantially, as well as increasing its competitiveness in the context of economic integration.

Incubator centre for technical, mechanical firms debuts

An incubator centre for technical, technological and mechanical businesses debuted in Ho Chi Minh City on August 4. 

The centre is open to those from universities, institutes and businesses, as well as entrepreneurs and start-up clubs, particularly those working in technical, technological and mechanical areas. 

The project is under the auspices of the Vietnam-Finland Innovation Partnership Programme (IPP), the Ho Chi Minh City chapter of the Vietnam Chamber of Commerce and Industry which coordinated with the Alliance of Mechanical and Technological Businesses and the Hoa Sen Vocational College. 

Lauri Laakso, advisor to the project, said the centre aims to improve Vietnam’s innovation capacity, particularly in major cities, adding that it offers various kinds of support in expertise and funding for start-ups. 

In late 2016, the project will expand its support to various sectors, he said. 

In the first phase, applications should be sent to the centre no later than September 4, 2016.

More efforts needed to tap main tourist markets

The Vietnam National Administration of Tourism (VNAT) said on August 3 that it had sent a document requiring local Departments of Tourism and Departments of Culture, Sports and Tourism to carry out measures to attract more visitors from the main tourist markets of the nation. 

According to the VNAT, in the first seven months of 2016, Vietnam welcomed over 5.5 million foreign tourist arrivals, up 24 percent from the same period last year. The markets with great growth include China, the Republic of Korea and Western Europe. 

However, the sector still saw several shortcomings, including the illegal operation of foreign guides in several central localities. 

To increase State management over tourist activities, the VNAT requested the departments to instruct travel agencies to use flexible measures to serve tourists in case there is a lack of tour guides capable of foreign languages. 

Travel agencies should employ tour guides from other localities, provide specific information about tourist sites in appropriate languages for visitors, and use Vietnamese tour guides accompanied by interpreters. 

Localities should consider the installation of an auto voice-over system in foreign languages to serve tourists, especially those from Vietnam’s main tourist markets. 

They were urged to encourage locals and enterprises to improve their behaviour towards visitors, and avoid actions or words that show discrimination against them.

South to boost ports, hi-tech

The southern Ba Ria-Vung Tau Province will focus its investment on the hi-tech industry and agriculture, port logistics and high-quality tourism.

Hi-tech industrial projects will prioritise energy-saving and eco-friendly products of high added value and competitiveness, while those in the port logistics sector will include facilities in support of the Cai Mep – Thi Vai international terminal.

High-quality tourism projects will focus on building seaside resorts and developing ecological and spiritual tourism along with meetings, incentives, conferences and exhibitions (MICE).

At a local press conference on Wednesday, deputy chairman of the provincial People's Committee Nguyen Thanh Long said the province had prepared a list of sectors eligible for investment incentives.

Ba Ria-Vung Tau pledged all possible support for long-term business operations in the province, he said.

An investment promotion conference is slated for August 10 to introduce the province's potential, incentives and infrastructure to diplomatic agencies, investment and trade promotion organisations, and overseas and domestic investors.

The province is a gateway to the southern key economic zone thanks to its convenient location, abundant natural resources and a massive network of seaports.

In the first half of this year, the province registered seven foreign investment projects worth nearly US$350 million, raising the total number of FDI projects to 297, with a total value of more than $27.16 billion.

There were 10 domestic projects in the six-month period with a total registered capital of about VND1 trillion ($45.45 million), increasing the total number of projects with domestic investment to 442, worth approximately VND241 trillion ($10.95 million). 

Farmers stuck with Tra fish as price sinks lower

The price of tra fish in the Cuu Long (Mekong) Delta has continued to fall, leaving large inventories of fish and causing losses for farmers.

Nguyen Ngoc Hai, chairman of Thoi An Tra Fish Co-operative in Can Tho City, said the price for fish meeting export criteria (0.7-0.9 kilo a fish) was VND18,500-19,000 a kilo, down VND1,500-2,000 compared to a fortnight ago.

At that price, farmers have suffered a loss of VND500-1,000 a kilo.

Tran Thi Lan in Can Tho City said her family had sold 100 tonnes of tra fish and lost VND100 million (US$4,500).

"Tra fish processing plants haven't bought my fish, so every day I had to sell a few tonnes to traders for VND16,000-17,000 a kilo," she said.

Other farmers have not been so lucky, as they have not been able to find a trader to sell their fish, she said.

In recent years, fish processing companies have spent funds setting up tra fish breeding areas, leaving fewer orders from farmers who raise tra fish.

When exports decline, processing companies usually give priority to process their own fish, so farmers without sale contracts face no sale outlets and price declines.

The recent decline of tra fish purchases from several large markets like the EU and China have also caused difficulties for Viet Nam's tra fish exports, according to the Viet Nam Association of Seafood Exporters and Producers (VASEP).

The quantity of tra fish that processing companies that breed themselves, under sales contracts with farmers, accounts for 70-80 per cent of fish used for the companies' production, according to Hai.

The processing companies now have enough fish, and as a result, will not have to increase the price paid to farmers without sales contracts when exports begin to rise.

The country's tra fish exports reached US$718 million as of mid-June, up 5.5 per cent against the same period last year, according to Viet Nam Customs.

Vo Thi Thu Huong, deputy general secretary of the Viet Nam Pangasius Association, said that it would promote sustainable development of tra fish by organising the Mekong Chef contest in Can Tho City in September.

The contest aims to promote domestic consumption of tra fish and raise awareness about the value of tra fish.

By the end of this quarter, the association will also hold a seminar on SUPERSEAS project (Supermarket Supported Area-based Management and Certification of Aquaculture in Southeast Asia), according to Huong.

During the first half of the year, the delta bred 4,341ha of tra fish, down 4.1 per cent year-on-year, according to the Directorate of Fisheries. More than 545,700 tonnes of tra fish were harvested, up 2.3 per cent against the same period last year.

The price of tra fish has fallen in recent years, resulting in fewer breeding areas.

In the first months of this year, the price of tra fish was VND22,000 a kilo as China imported a large quantity of tra fish from the delta. 

Tax incentives to help firms beat difficulties

Viet Nam plans to impose a 17 per cent corporate income tax (CIT) for four years from January 1, 2017, on businesses making less than VND20 billion (US$893,000) in revenue.

The current tax rate is 20 per cent.

This is one of the tax incentives included in the National Assembly's draft resolution on tax measures to help businesses overcome difficulties and promote the development of the business community.

The finance ministry in its proposal about tax incentives submitted to the Government said offering a 17 per cent CIT to small- and medium-sized enterprises (SMEs), equal to the preferential tax rate imposed on new projects located in areas of socio-economic difficulties, aimed to enable SMEs to accumulate capital for investment and business expansion and for improving competitiveness.

"Assisting SMEs is critical, given their irreplaceable role in economic development and social stability," the ministry said, adding that tax policy was a common tool to promote the development of SMEs across the world.

The ministry said the tax reduction would not have a significant impact on the State's budget collection as SMEs' tax contribution to the budget was a modest one.

Based on the figures of the General Statistics Office in the past two years, the finance ministry estimated that the budget collection would fall by about VND473 billion if the 17 per cent CIT rate was implemented on businesses making less than VND20 billion revenue, which accounted for 86.2 per cent of all firms in Viet Nam.

Although the draft law on supporting SMEs by the planning and investment ministry defines SMEs as those making less than VND100 billion in revenue, the finance ministry said CIT incentives should be given to those making less than VND20 billion in revenue to avoid significant decrease in budget collection.

It estimated that budget collection could drop by VND1.5 trillion if the 17-per-cent CIT was applied on businesses making less than VND100 billion in revenue.

In addition, tax incentives must target those who were really in need of support, the ministry said, adding that the smaller the scale of business, the more vulnerable they were to shocks of the economy, business environment and international integration. 

The draft resolution also proposed a 17 per cent CIT should be applied on start-ups during the 2017-20 period to fuel a boom of start-ups in Viet Nam, which was at a nascent stage in the past few years. The finance ministry said there should be early promulgation of criteria to categorise a business as a start-up.

Tax incentives would also be given to information and technology projects, including tax exemption for four years and 50 per cent tax reduction for the following nine years, to enhance competitiveness of the software industry.

The ministry plans to clear tax debts totalling VND8 trillion of tax payers whose firms were already dissolved or went bankrupt before January 1, 2014.

The resolution is expected to be passed at the second meeting of the 14th National Assembly and come into force from the beginning of 2017.

Quang Nam to open Tam Hiep-Incheon sea route

This central province will launch the first Chu Lai-Korea sea route this month, connecting Tam Hiep Port and Incheon Port in Korea.

The move comes as part of crucial preparations for the Trans-Pacific Partnership, with investment flows anticipated from Korea and Japan.

Director of Chu Lai Open Economic Zone Authority (EZA) Do Xuan Dien said Tam Hiep Port, part of the Chu Lai–Truong Hai logistics and port service unit in Nui Thanh District, will allow access for 20,000-DWT (deadweight tonnage) cargo ships or ships with a capacity of 1,000 TEUs (twenty-foot equivalent units), receiving one ship per week.

He said the EZA, which is one of five coastal economic zones in the country, in co-operation with the Korean Textile Association, had drawn investment from the textile and tourism industries in Korea.

Dien said the zone also plans to open sea routes from Ky Ha Port to Busan, Hong Kong and Singapore and to upgrade Chu Lai Airport to allow more international flights.

According to the provincial ports administration, Quang Nam spent VND523 billion (US$23.2 million) to dredge and upgrade the port and marine access, while the Truong Hai Auto Company (Thaco) will promote the route and offer international shipping partnerships.

The new international sea route will serve businesses operating in industrial zones for textiles, garments and supporting industries, automobiles, logistics and exports.

In 2014, Thaco launched the HCM City–Chu Lai sea route and logistics service at the Chu Lai–Truong Hai logistics and port service, which covers an area of 173ha, with a total investment of $24.5 million.

It also provides a two-way shipping route to Hong Kong, Thailand, Singapore and Malaysia as well as domestic ports.

In its latest report, Chu Lai Open EZA declared 109 investment projects, of which 29 are FDI projects, with combined registered capital of more than $1.52 billion.

PSH group eyes entertainment-resort complex in ThuaThien Hue

PSH Group of Spain has unveiled its investment plan for a project to build an entertainment-resort complex in Chan May-Lang Co economic zone (EZ) in the central province of Thua Thien Hue.

PSH Group President Gregorio Perez revealed the information at an August 3 working session with Nguyen Dung, vice chairman of the Thua Thien Hue provincial People’s Committee.

Mr Perez said the group has recently made a fact-finding tour of coastal areas in the province and wants to carry out the project which will preserve existing natural values and beatify the landscape here.

Vice Chairman Nguyen Dung, in turn highlighted the group’s initiative to invest in the complex and pledged to offer the best possible conditions for project execution.

Bombas PSH, S.A. manufactures and sells electric pumps for the swimming pool pump market. The company offers prefilters, plant housings, dosing pumps, drainage pumps, pool fittings, external and electrical materials, domestic salt water chlorinators, swimming pool heaters, fitting accessories, and control panels, as well as pumps for domestic, large, and counter-current swimming pools and spas. 

It constructs its projects in Beijing, China; Red Sea, Saudi Arabia; Abu Dhabi, the United Arab Emirates; Barcelona, Spain; and Egypt. The company was founded in 1910 and is based in Barcelona, Spain.

Vietnam imports nearly 500 tons of Chinese mangoes

A number of Vietnam importers have recently signed contracts with Chinese partners to buy around 500 tons of small mangoes, said Hoang Trung, head of the Plant Protection Department (PDD) under the Ministry of Agriculture and Rural Development (MARD).

vietnam imports nearly 500 tons of chinese mangoes hinh 0 All mangoes were shipped via Tan Thanh Border Gate in northern Lang Son province and quarantined for diseases and pesticides, Mr Trung noted.

The country imports a huge amount of mangoes from China as July-August period is not mango harvesting season.

According to the PPD, small mango is mainly grown in the western region of Vietnam, China and Laos.

The department also rejected a rumour about artificial small mango on the market while affirming that it is real mango- one of 1,000 existing types of mangoes.

German investor plans green energy projects in Vietnam: report

German-owned energy company Terra Wood Vietnam is reportedly seeking permission to develop two power plants at US$400 million in the central province of Quang Ngai.

german investor plans green energy projects in vietnam: report hinh 0 The company started surveying the locations for the plants, one wind and one solar, which will cover a total of 600 hectares and have an output of 150 megawatts each on August 4, according to news website Dau Tu.

In comments on the projects, Tran Ngoc Cang, chairman of the People's Committee of Quang Ngai, was quoted as saying that the province will facilitate the survey. 

On its website the company said it is the country representative of Germany's engineering company RCon and renewable energy consultant German ProfEC.

Hai Phong draws over 1.8 billion USD in FDI

The northern port city of Hai Phong granted licenses to 28 new foreign direct investment (FDI) projects worth 1.83 billion USD in the first seven months of 2016.

Sixteen existing projects in the city increased their investment capital by 140.92 million USD in January – July.

The city has 476 valid FDI projects capitalised at 12.88 billion USD.

As of July 20, Vietnam attracted 12.94 billion USD in FDI, up 46.9 percent against the same period last year, according to the General Statistics Office.

Of the total, nearly 8.7 billion USD came from 1,408 new projects and the remaining from 660 added-capital projects.

Investors poured money into new projects across 47 provinces and cities nationwide in the period.

Hai Phong topped the country in attracting new FDI projects, followed by Hanoi, and southern Binh Duong and Dong Nai provinces, and Ho Chi Minh City.

Viet A bank to guarantee gold company's debt

Commercial joint-stock Viet A bank will be a guarantor for Phuoc Son Gold company in a tax debt of VND334 billion (US$14.8 million) to central Quang Nam Province's tax department.

Manager of Viet A bank's branch office's manager, Hai Dang confirmed to Biz Hub that the bank would help Phuoc Son company – a company under a Canadian-Australian joint-venture corporation Besra Gold Inc – to deal with the debt in 12 months from this August to next year.

He said the bank had sent the guarantee proposal to the provincial taxation agency last month and the payment plan will start from August with around VND28 billion each month.

Head of provincial Tax Department Ngo Bon, said the Quang Nam Province's planning and investment department would soon approve the guarantee deal to allow the re-operation of gold mines of Phuoc Son Company.

However, Bon said that another company of Besra, Bong Mieu Gold Mining Company, which had been in debt of VND100 billion in tax, was shut down as its operation licence had expired.

As scheduled, Phuoc Son Company will reopen its gold mines in Phuoc Son district with approval from the provincial planning and investment department.

In 2014, Phuoc Son Gold Company owed approximately $19 million to contractors, the bank and the government.

Besra Vietnam had to suspend operations at its Bong Mieu mine from July 18, 2014, and Phuoc Son mine from July 22, 2014. after bank accounts were frozen in April 2014 by the Quang Nam Tax Department due to the debt.

Besra has invested more than $115 million in Bong Mieu and Phuoc Son (Besra Viet Nam) in Quang Nam Province.

Besra Viet Nam's gold production from its two plants reached 60,187 ounces last year, according to officials.

HCM City attracts US investment

Many US businesses have shown interest in investing in HCM City, Tran Vinh Tuyen, vice chairman of the city People's Committee, has said following a visit to the US at the head of a city delegation to promote trade and investment.

During the visit, speaking at a trade promotion seminar in San Francisco last month, Tuyen offered 10-year-long tax and land incentives to American investors.

"HCM City will play its role in creating breakthroughs in three key fields — institution, human resource quality and infrastructure — to make the city an attractive and reliable destination for the investors," he told the seminar.

The city would continue with its administrative reforms and offer more tax and land incentives to attract investors, he added.

Tuyen also met with overseas Vietnamese and executives of top science and technology companies to solicit investment.

He visited the Viet Nam Resources Group's headquarters in California to meet with 10 local IT businesses to outsource software.

A Texas Instrument Company executive said the company plans to invest US$6 billion in Southeast Asia and would study the investment climate in HCM City, according to Tuyen.

The Vietnamese delegation had provided the company with useful information about the Saigon Silicon City project in the Sai Gon Hi-Tech Park, the executive said.

Other businesses too promised to visit and invest in HCM City. They included Allied Telesis and its partners like Quantus Corporation, which plan to work on a $300-400 million life sciences project to build a research institute, a commercial and service hub and a hospital in HCM City.

Greenvity said it is considering setting up a plant at the Quang Trung Software Park to make chip-applied equipment for smart homes for the Southeast Asian market.

Visiting a company called Vigilant Solutions, Tuyen sought its assistance to develop an IT project to raise awareness in HCM City of the need to obey traffic laws.

The delegation introduced semi-conductors and integrated circuits made at the Sai Gon Hi-Tech Park at an expo held in San Francisco.

The expo attracted more than 700 companies from around the world producing semi-conductors, electricity, electronics products and new materials. 

Phu My Hung sold out 99 per cent of Riverpark Premier within 2 hours

More than 500 customers attended Riverpark Premier's first phase launch event on on Sunday. This is a new high-end apartment project by Phu My Hung Development Corporation in HCM City's District 7.

Within 2 hours, 99 per cent of 161 apartments in blocks A and B were sold, and 25 percent of them were purchased by foreigners from several different nations.

The apartments' price range of VND6 billion (US$269,000) to VND18 billion ($807,000) is considered reasonable since it's a high-end project that expected to create a new standard for luxury living in HCM City.

Riverpark Premier is consisted of three blocks A, B and C with height range from 13 to 22 floors and total 268 apartment units including3 duplexes, 4 penthouses, and 13 store units. Each apartment unit comes with space for a car in the parking area, which customers find very pleasing.

Additionally, the project location is beautifully close to the city center, next to the river, parks, schools and main streets.

More than a few foreigners from many nations were spotted at the launch event. According to the developer, out of more than 500 people attended, 26 percent were foreigners.

Majority of the foreigners said Riverpark Premier attracted them because of its low ratio in construction density.

The project spreads over an area estimated of 14,500sq.m, however, the construction part will only occupy 48.4 percent or 7,000sq.m, the rest will be used for open green space. Once the project complete, Riverpark Premier will possess the lowest floor area ratio (FAR) in HCM City of a mere 3.57.

Mr. David Thomas and his wife came to know about Riverpark Premier through Heritage magazine on a flight to Da Nang for a holiday. Afterwards, they researched more about the project, and fell in love with it.

Mr. Thomas said he chose the project because he and his family can enjoy variety of facilities.

The project has a new concept of luxury living where privacy is a priority, he said. Also, it is very important for him that the location is nearby several international schools, which means more convenient for his children.

One more great advantage of Riverpark Premier is its payment schedule, 1 per cent per month and only 50 percent by before handover, the rest will be settled at the time of receiving the apartment.

Song Da Corp sells entire stake in VIS

State-owned construction and material producer Song Da Corp reportedly sold its entire stake in the Viet Nam-Italy Steel Company (VIS) on Tuesday, cafef.vn reported.

Market brokers on Tuesday recorded that 26.1 million shares of the steel producer, which is listed as VIS on the HCM Stock Exchange, were traded via advance negotiations.

That number of shares were traded at the price of VND12,800 (US$0.57) per share, making the transaction worth more than VND334 billion ($14.85 million).

On July 29, Song Da Corp registered to sell the same amount of shares in VIS in order to remove its entire ownership in the steel producer. The transaction was expected to occur in August.

Song Da Corp had previously registered three times to sell its entire its ownership in VIS since November 2015, but transactions were not successful as the steel producer's share prices were not high enough.

VIS, later on Tuesday, confirmed to the local media that it was Song Da Corp that conducted the trading to divest from the steel company.

VIS also said that Thai Hung Trading JSC was among the firms that purchased the steel company's shares and become a major shareholder of the company.

However, details of the transaction have not been revealed.

Song Da Corp and VIS declined to comment on the transaction, while officials from Thai Hung Trading JSC were not available for comment.

Thai Hung Trading JSC is a steel trader and producer based in the northern province of Thai Nguyen and has total fixed asset worth VND4.1 trillion. The company is also said to occupy a market share of 12 per cent in the steel industry.

VIS is a steel producer based in Ha Noi. The company has recently announced a year-on-year drop of 80 per cent in its after-tax profit to VND587 million in the second quarter of this year.

A sharp drop in the company's profit came after the steel market slowed down in the second quarter, resulting in a lower sales volume for the company.

Besides, the inventories remained high as steel prices declined sharply, VIS said, and added that it made the steel firm create a defensive provision worth VND23.3 billion for the inventories and receivables.

The VIS share price has jumped 14 per cent in the last four trading days, closing on Wednesday at VND13,000 per share. The share price has more than doubled since March. 

VEAM to launch IPO in August

The Vietnam Engine and Agricultural Machinery Corporation (VEAM) plans to sell more than 167 million shares at its initial public offering on the Ha Noi Stock Exchange on August 29.

After equitisation, the corporation expects to have total registered capital of nearly VND13.3 trillion (US$595.3 million).

The shares, equal to 12.57 per cent of the registered capital, will be offered at a starting price of VND14,290 each.

The corporation aims to earn more than VND10.5 trillion in revenue this year, a six per cent increase compared with last year.

VEAM, established in 1980, mainly produces agricultural equipment and machines, tractors, trucks and buses, as well as motorbikes and spare parts.

Vietnam Medi Pharm Expo planned in HCM City

The Vietnam Medi Pharm Expo 2016 will be held at the Saigon Exhibition and Convention Centre, HCM City, from August 11 to 13, 2016.

This year, 280 businesses with 350 displays will be participating in the expo, including giant corporations, leading global companies from countries and territories such as the United States, France, Germany, and Italy, in addition to Japan, Pakistan, Ukraine, and Belarus. Egypt, India, Hungary, Kazakhstan, and Iran, apart from Singapore, Korea, Taiwan, Thailand, and China will also be taking part.

The highlight of the exhibition will be the display areas of Kazakhstan, Japan, Korea, and Malaysia, in addition to Iran, China, Taiwan, India and Pakistan. Hosts Viet Nam will also have a presence at the exhibition.

The popular annual event takes place twice a year in HCM City in August and Ha Noi in December, respectively. The expo has been organised for the past fifteen years to promote trade activities in pharmacy and medical equipment, strengthening local and foreign business, to business operations. The exhibition is a platform for the globally advanced medical technologies and equipment companies to access local private and public hospitals and local pharmacy companies which Viet Nam has the advantage to initiate exchanges.

Hua Phu Doan, vice president and general secretary of HCM City Medical Equipment Association, said that Viet Nam has been an emerging and attractive destination for foreign investors, particularly pharmacy and medical equipment companies. According to estimates, revenue from domestic medical equipment market reach US$800 million every year, are expected to reach $1.2 billion this year and $1.8 billion in 2018. The average growth would be 18 per cent to 20 per cent between 2016 and 2020. 

Vietfood-Beverage-ProPack Vietnam exhibition in HCM CITY

The Vietfood and Beverage-ProPack international exhibition will take place at the Saigon Exhibition and Convention Centre in HCM City next week.

After 19 exhibitions, witnessing significant and rapid changes in the market, and from the initial purpose of serving the basic needs of consumers, the food and beverage industry has now become a sector with considerable market share. It accounts for 15 per cent of GDP, and it will continue to grow. The 2016 Vietfood and Beverage and ProPack, held between August 10 and 13, marks its 20th anniversary with an ever largest scaled event.

To date, the organising committee has received registration from 425 companies from 21 countries and territories, such as Poland, Germany, South Korea, and Malaysia, apart from Thailand, China, and Viet Nam, among others. The exhibition is expected to accommodate 500 booths, an equivalent of 9000 sq.m, divided into large pavilions.

In Viet Nam, the food and beverage processing industry has great potentials. Being a tropical agricultural country, Viet Nam has abundant and diverse resources, which are the vital inputs for the processing industry. Given Viet Nam's rapid development, increased income, and changes in lifestyle, particularly in the cities, the demand for snacks and expensive convenience food is also on the rise.

Additionally, the large domestic market, low labour costs and the equitisation process of food companies makes this sector full of vitality. As such, other relevant areas, such as processing, packaging, storage, machinery or production line, also have the opportunity to grow hand-in-hand.

Corporate tax cut curtails incentives

A new lower tax rate across the board should be a boon to corporations – but it also means that companies previously granted favourable tax rates will now be at the base level.

According to Decree No.78/2014/TT-BTC, enacted January 1, 2016, Vietnam’s corporate income tax (CIT) rate has been reduced from 22 per cent to 20 per cent across all industries.

This means that the 20 per cent CIT which a number of companies had enjoyed as an incentive offered by the government is no longer an incentive. And it does not look as if a similar tax cut for companies that had benefitted from incentives is on the horizon.

Some companies are wondering what happened to their incentives. For example, the pharmaceutical firm Sanofi-Synthelabo Vietnam, which had benefitted from the 20 per cent rate before Decree 78, sent inquiry to the Ho Chi Minh City Tax Department requesting a tax reduction to 17 per cent.

Likewise, Denso Vietnam, a joint venture of the Japanese groups Denso Group and Sumitomo Group, which supplies automotive systems and components, sought an explanation from the tax authorities.

In response, the General Department of Taxation (GDT) directed its local departments to handle the corporate requests. ­­

“Only certain incomes mentioned in Clause 3, Article 15 of Decree No.218/2013/ND-CP detailing the implementation of Law on Corporate Income Tax are eligible for the new rate of 17 per cent since January 1, 2016,” the GDT replied.

Specifically, the 17 per cent tax rate is only granted to enterprises with investments in areas with difficult socio-economic conditions, or in fields of production of high quality steel, energy saving products and machinery. Forestry, fishing, and salt industry involvement are also grounds for receiving the 17 per cent rate.

According to tax experts, these previously incentivised firms will most likely have to accept the cancellation of their incentives. This is not the first time incentives were withdrawn after a period of implementation.

For instance, during the period between 2009 and 2013, privileges granted to new investment projects in industrial zones were abolished.

Prior to 2009, incentives included three years of tax exemption, seven subsequent years of 50 per cent reduction, and 12 years of preferential CIT rate of 15 per cent since project commencement.

From 2013 onwards, the privileges were reinstated, but were less favourable than those formerly offered in the period prior to 2009. Currently, new investment projects in industrial zones are granted only two years of tax exemptions and four years of 50 per cent tax reduction.

 “In recent years, CIT incentive policies have seen significant amendments due to changes in government’s investment policies to attract more business in diverse markets. Now, tax privileges are mainly to encourage investments in areas of high-tech, sustainable production, and difficult socio-economic conditions,” said Tuan Nguyen, local tax manager at auditing firm Deloitte.

Kolon Group goes into investment frenzy in Vietnam

Kolon Group, a leading Korean manufacturer, aims to grow its presence on the Vietnamese market after being licensed for a $14.1 million airbag manufacturing facility in the southern province of Binh Duong earlier this year.

According to a source with knowledge of the matter, the group is now in the negotiation process to license its new project, probably also located in Binh Duong province. 

The source also revealed that this would be a hi-tech manufacturing project with a fair investment capital. 

Since earlier this year, Kolon Group representatives have been conducting field surveys at several northern locations, such as Haiphong city and Ha Nam province, to learn about the local investment environment. 

They also filed proposals on building plants manufacturing chemical fibres or industrial fabrics used for auto tyres. 

Kolon is Korea’s leading diversified group operating in a variety of fields, such as industrial materials production and fashion. 

Currently, it is named among the world’s top three Aramid fibre manufacturers. The group is also the top player holding the largest market share of the Korean airbag manufacturing segment. 

Recent statistics released by the Binh Duong Department of Planning and Investment show that as of June 2016, South Korea was the third largest foreign investor in the province, with 569 projects valued at $2.25 billion in total committed capital. 

In the first half of this year alone, Binh Duong granted licenses to 27 new investment projects from Korea and registered 13 existing Korean projects for supplemental capital. The total committed value surpassed $155 million, putting South Korea in the second place in terms of capital value among countries and territories doing business in the province.

Japan group eyes rice exports to VN

The Japan Rice and Rice Industry Export Promotion Association on Monday organised a business-to-business meeting in HCM City aimed at selling Japanese rice and rice products to Viet Nam.

The Japan Rice and Rice Industry Export Promotion Association on Monday organised a business-to-business meeting in HCM City aimed at selling Japanese rice and rice products to Viet Nam. -VNS Photo

More than 70 local businesses met with visiting Japanese business executives to explore partnership opportunities.

The association's managing director, Minotu Yoneda, said Japan's staple rice is short-grain Japonica, valued for its deliciousness and high nutrition. It is also used to make the popular wine sake and a variety of snacks.

"We see that our rice does not have sufficient exposure globally, therefore we decided that the best way for people to learn about its quality would be for them to experience it, and it is also a good way to promote cross-cultural understanding," he said .

There was a taste and tell session at the event.

JRE was established last year as a co-operative framework for understanding and solving tasks that need to be addressed to uncover and expand overseas demand for Japan's rice and rice food products.

Song Da Corp sells entire stake in VIS

State-owned construction and material producer Song Da Corp reportedly sold its entire stake in the Viet Nam-Italy Steel Company (VIS) on Tuesday, cafef.vn reported.

Market brokers on Tuesday recorded that 26.1 million shares of the steel producer, which is listed as VIS on the HCM Stock Exchange, were traded via advance negotiations.

That number of shares were traded at the price of VND12,800 (US$0.57) per share, making the transaction worth more than VND334 billion ($14.85 million).

On July 29, Song Da Corp registered to sell the same amount of shares in VIS in order to remove its entire ownership in the steel producer. The transaction was expected to occur in August.

Song Da Corp had previously registered three times to sell its entire its ownership in VIS since November 2015, but transactions were not successful as the steel producer's share prices were not high enough.

VIS, later on Tuesday, confirmed to the local media that it was Song Da Corp that conducted the trading to divest from the steel company.

VIS also said that Thai Hung Trading JSC was among the firms that purchased the steel company's shares and become a major shareholder of the company.

Ha Nam province to woo investors at conference

A conference to promote investment in the northern province of Ha Nam will be held on August 6, the Ha Nam People's Committee announced in Ha Noi yesterday.

Vice chairman of the committee Vu Dai Thang said that the conference, which would be the largest such event to be held in the province, was aimed at wooing domestic and foreign investors to pour funds into industry, high-tech application agriculture, trade, services and tourism.

Besides introducing the potential of the province and calling for investment in industry, Ha Nam's authorities would also announce special incentives for investors at the event, Thang said.

Ha Nam's authorities are also expecting recommendations from attendees to help the province become a more attractive investment destination. The upcoming event is expected to attract more than 500 attendees.

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