Pepper exports record burgeoning growth

Vietnam’s pepper export revenue in 2015 is set to exceed the target of 1.1 billion USD given that in the first seven months of the year, pepper shipments to foreign markets saw stellar performance with 98,000 tonnes worth 920 million USD, according to the General Department of Vietnam Customs.

Statistics from the Ministry of Agriculture and Rural Development (MARD) reveal that Vietnam has 70,000 hectares of pepper land with 144,000 tonnes in peppercorn output.

Last year, 156,396 tonnes of peppercorn were sent to foreign markets, earning the country 1.21 billion USD, representing a 16.38 percent increase in volume and 34.72 percent in value – the highest figures recorded so far both in volume and value.

Currently, Vietnam holds a 58 percent share of the world market, selling peppercorns to 100 countries and territories worldwide with Singapore, the United Arab Emirates and the US as the largest buyers. Meanwhile, the fastest export growth rates were seen in Germany (41.5 percent), Thailand (38.8 percent) and the UAE (34.7 percent).

The Vietnam Pepper Association said Vietnamese pepper exports are expected to remain stable at high levels this year.

However, Ha Huy Thang, General Director of Petrolimex International Trading Joint Stock Company, said that the EU warned of high levels of pesticide remnant in Vietnamese black pepper in 2013 and many shipments were returned from the EU in 2014.

He suggested that the Government and MARD implement macro policies such as zoning off land for pepper plantation, introduce cultivating techniques in compliance with VietGap standards, control pesticide portfolios and set strict guidelines to prevent illicit pesticides.

Ho Chi Minh City, Japan increasingly important partners

Ho Chi Minh City and Japan are increasingly important partners across many fields but especially in trade and investment.

Figures released at a forum on Vietnam-Japan investment and trade promotion 2015 held in HCM City on July 31 showed Japan is currently the city’s sixth largest investor in foreign direct investment.

As of July 15 this year, HCM City was home to 788 projects with a combined capital of 2.72 billion USD focusing on real estate, the processing and manufacturing industry, retail and wholesale.

Major projects include the Ben Thanh – Suoi Tien metro route, water environmental improvement in Tau Hu – Ben Nghe – Doi – Te canals and the East-West Highway.

Japan was the city’s largest export market in 2014, accounting for 14.3 percent of the city’s total export value, and the fifth largest exporter to HCM City, making up 6.9 percent of the city’s total import value.

Trade volume between HCM City and Japan in the first six months of this year reached three billion USD, of which the city’s exports were 1.8 billion USD.

Le Thanh Liem, Vice Chairman of the municipal People’s Committee, said the city hopes to receive more assistance from the Japanese Government and Japanese business community to innovate the city’s growth model. He called on Japanese investors to invest in infrastructure, high-quality workforce, support industry and high-tech technology agriculture.

HCM City has signed a number of cooperation agreements with Japanese localities such as Osaka, Hyogo, Shiga and Yokohama city. It also signed a framework agreement on economic cooperation with the Kansai region’s Department of Economy, Trade and Industry.

The municipal Department of Planning and Investment simplified procedures relating to business, taxes and customs as well as regularly organises dialogues to address any emerging issues.

Vietnamese poultry sector seeks export

Facing mounting pressure from cheap imported chicken, domestic products are examining export options, stated Nguyen Tri Cong, Chairman of Dong Nai province’s Livestock Association.

According to him, the potential solution has long been hindered by veterinary procedures due to the lack of veterinary agreements between Vietnam and poultry import partner nations.

There were examples of local enterprises, despite investing in high-quality chicken farms fulfilling international standards, having business difficulties and even going bankrupt without the ability to sell their products overseas.

As such, Cong urged the Ministries of Trade & Industry and Agriculture & Rural Development, and the Vietnam Department of Animal Health to work with potential import countries on veterinary agreements and support domestic poultry companies to obtain World Organisation for Animal Health (OIE) certification.

If local chicken breast products are exported, it will bring foreign currency to the nation and help reduce the prices of chicken wings and thighs within the local market to compete against imported poultry, shared Cong.

Producers, supermarkets eye improved supply chain

The Association of Foreign Investment Enterprises in Vietnam (VAFIE) and Samsung Vietnam organised a workshop on Vietnamese products and supply chain management from factories to supermarkets on July 31 in Hanoi.

The workshop aims to boost public confidence in Vietnamese products and link producers and distribution channels in response to the national campaign “Vietnamese people use Vietnamese goods” between 2014 and 2020.

VAFIE President Nguyen Mai said the event provided a platform for producers and supermarkets to meet and seek effective and efficient supply chains as well as establish win-win partnerships where high quality products are sold at reasonable prices.

According to President of the Hanoi Supermarket Association Vu Vinh Phu, Vietnam has about 700 supermarkets and shopping malls which require effective supply chain management and proper production planning based on market demands.

Middlemen should also be eliminated to offer better prices for the consumers, he added.

Attendees to the workshop agreed on the significance of the connection between producers and distributors. They urged supermarkets to be more active in seeking goods while producers should ensure quality control and build their brand names.

New Kon Tum transformer installation finishes

The installation of a new 220-kilovolt transformer was completed in the Central Highlands province of Kon Tum, according to the national power transmission corporation under the Electricity of Vietnam (EVN-NPT).

The EVN-NPT said the newly-installed transformer will help transmit around 345 megawatts of electricity from hydroelectric plants in the Central Highlands to the national grid, contributing to supplying stable electricity for social-economic development and ensuring security and defence in the region.

The project has a total capacity of 500 megawatts built on 70,000 square metres in Thanh Trung hamlet, Vinh Quang commune, Kon Tum city, Kon Tum province with a cost of 450 billion VND (20.63 million USD).

Test run underway at Nhan Co bauxite ore plant

The Nhan Co bauxite refinery plant in the Central Highlands province of Dak Nong is running test productions through the end of September, said Head of the project’s management board Nguyen Thanh Liem on July 30.

Constructed within a 65-hectare mine, the plant is designed to process more than 1.8 tonnes of ore each year.

Ore reserves at the mine are estimated at around 60 million tonnes, capable of supplying bauxite for the aluminium production plant for 30 years.

The bauxite plant was initiated by the Vietnam National Coal and Mineral Industries Holding Corporation Limited (Vinacomin) on September 15, 2013 at a total cost of 900 billion VND (41.2 million USD).

It consists of an ore refinery plant and a 5-kilometre conveyor belt covered by corrugated iron to protect the environment.

Once fully operational, the plant will offer about 150 employment opportunities for local residents, including those from ethnic minority groups.

Footwear exports make big gains

Vietnamese footwear exports rose 21.2 percent against the same period last year to more than 5.85 billion USD for the first six months of the year, the General Department of Customs reported.

The figure is expected to reach 14 billion USD by the end of the year, according to the Vietnam Leather, Footwear and Handbag Association (Lefaso).

Of the figure for the first half of the year, exports to the US increased by 30.2 percent to 2 billion USD, equal to export earnings from the EU, which saw a growth of 17 percent.

The EU continues to be the largest importer of Vietnamese footwear.

In 2009, footwear exports to the US totalled about 1 billion USD, half of the value earned from the EU market.

Truong Thi Thuy Lien, Director of Lien Phat Footwear Company in the southern province of Binh Duong, said footwear exports rose in the second quarter of this year.

Most footwear enterprises had orders up to the end of February next year, she said.

Both foreign direct-invested and local businesses are focusing on the US market, she added.

According to statistics from the Office of Textiles and Apparel at the US Department of Commerce, the US imports about 78 percent of footwear from China and 12 percent from Vietnam.

However, footwear imports from China have fallen steadily since 2010, the US office said.

Meanwhile, imports from other Asian countries, particularly from Vietnam, have increased sharply in recent years as US businesses try to become less dependent on Chinese imports.

Nguyen Duc Thuan, President of the Vietnam Leather and Footwear Association, said the industry was likely to fulfill its target of 14.5 billion USD in exports this year, with an annual growth of 20 percent set by the Ministry of Industry and Trade.

Last year, Vietnam exported 10.34 billion USD worth of footwear, a rise of 23 percent over the previous year, making up 6.89 percent of the country's total exports, according to the Ministry of Industry and Trade.

In December, footwear exports totalled 1.08 billion USD, an increase of 13.8 percent over November.

Last year, Vietnamese footwear was exported to more than 40 markets, including the US, EU, Japan, China and the Republic of Korea.

Of the markets, footwear exports to the US registered a yearly growth rate of 26.7 percent to 3.33 billion USD.

The US market alone made up 32.2 percent of the country's total footwear exports last year.

According to Lefaso, the footwear industry's competitive capacity has increased because of improvement in technology and equipment.

Vietnam to reinvigorate trade and eliminate tariffs

The Ministry of Industry and Trade (MoIT) has unveiled that it is tearing down tariff barriers on imports from other ASEAN member countries as part of the formation of the world's seventh largest free-trade market, radio The Voice of Vietnam (VOV) reported.

In 2007, the 10 ASEAN member countries adopted the ASEAN Economic Community (AEC) blueprint, which set December 31, 2015, as the target date for the creation of a single market.

The AEC envisions a fully integrated economy with goods and services trade moving freely between the 10 ASEAN members and substantially all tariffs and quotas eliminated by the end of 2015.

“Vietnam actually began reducing tariffs in 2014,” Luong Hoang Thai, an official of the Ministry of Industry and Trade (MoIT) was quoted as saying, and to date has lifted tariffs on roughly 1,706 tax lines.

Almost 97 percent of all tariffs will be gone by December 31 and the MoIT has until the end of 2018 to completely phase out tariffs on the remaining tax lines including steel, automobiles, and auto components, Thai underscored.

Thai said the AEC also calls for simplified regulatory trade frameworks to be put in place, complex customs procedures streamlined and other non-tariff barriers such as convoluted licensing and land acquisition requirements resolved by all member countries.

The AEC will be the seventh largest economic market in the world and many leading economists believe it could be the fourth largest market by 2050 if recent growth trends continue.

With over 600 million people, the AEC potential market is larger than the European Union (EU) and next to the People's Republic of China and India – it has the world's third largest labour force.

“Removing tariff barriers is good for the nation’s businesses, particularly very small and family owned businesses,” said Luong Hoang Thai.

Thai stressed deep cuts in tariffs mean more ASEAN goods and services will flow into the economy and revitalize it by spurring domestic spending, pushing competition up and providing the nation’s consumers more choice.

“This is going to represent a great challenge for the nation’s domestic businesses,” VOV cited Ha Duy Tung, Deputy Head of the International Cooperation Department under the Ministry of Finance, as saying.

Other businesses owners have expressed concern that as more foreign businesses come to Vietnam they will be confronted with stiff competition in terms of quality, price and timely delivery of goods and services.

Ho Sy Truc, President of Hoang Mai Ltd Company, said domestic businesses will need to step up their game to compete in regional markets by improving labour productivity and ensure the quality of products to gain consumers’ trust.

TPP stall could impact Vietnam export stocks

Despite the progress made, the latest talks to secure the Trans Pacific Pact (TPP) have stalled.

Issues pegged as sticking points, such as market access for agricultural goods and patent protections for medicines, were continuing to block the deal after four days of discussions.

This could have a negative impact on Vietnam's stock market this week, especially on shares of exporting companies.

"There is a considerable risk to shares of exporters in early sessions this week, as investors had high hopes for a successful conclusion of the deal at the end of last week," Tran Duc Anh, analyst from Bao Viet Securities Co., wrote in a report.

Exporting shares gained substantial values on expectations of the signing of the TPP deal. Textile and garment shares rose over 3 per cent, on average, last week, including Thanh Cong Textile Garment Investment Trading (TCM), Mirae (KMR), Garmex Saigon (GMC) and TNG Investment and Trading (TNG).

Wood producers, including Truong Thanh Furniture (TTF), and seafood exporters such as Hung Vuong Corp (HVG), Vinh Hoan Corp (VHC) and Ben Tre Aquaproduct Import and Export Co (ABT), also advanced strongly.

However, overall performance of the two markets was poor last week with the two indices losing values while liquidity went down. Blue chips were the main drag, as growing momentum of the previous rallies, including banks, securities companies, and oil and gas shares, all declined.

With three falling sessions out of five, the VN-Index on the HCM Stock Exchange lost a cumulative 1.61% to close Friday at 621.06 points, while the VN30, which tracks the top 30 shares by market value and liquidity, was also down 1.61% to end at 647.36 points.

On the Ha Noi Stock Exchange, the HNX-Index edged down by 1.37% during the course of the week, finishing Friday at 85.13 points.

Further, liquidity dropped towards the end of the week, averaging 121.5 million shares worth VND2.37 trillion (US$108.7 million) per session on HCM City's market.

The similar figure was also low on the Ha Noi Stock Exchange, reaching just 43 million shares worth VND540 billion (US$24.8 million) per day.

"After failing to overcome the 640 points landmark, trade became less positive when selling pressure rose in the large-cap share group. The optimistic point was that money was channeled into speculative stocks which cushioned the market fall," said analysts of the financial website vietstock.vn.

According to Tran Hoang Son, director of the market strategy division at MB Securities Co, Vietnam is in a technical correction in the short term period, after rising more than 100 points from a low of 537 points in mid-May.

"The short-term adjustment is well normal and reasonable in the context of the market's rhythm," Son was quoted on tinnhanhchungkhoan.vn.

While blue chips lost momentum and mid-cap and penny shares mainly moved sideways, Son predicted the market would accumulate more valuation in August and the VN-Index would fluctuate between 600 to 640 points.

"At the current stage, information about second-quarter business results could be a supporting factor for the market. However, the second quarter is usually a quiet period for businesses. The market is now depending on performance of blue chips and trading by the foreign sector," said Nguyen Vu Phong, deputy director of SeABank Securities Co.

Phong suggested investors closely watch movements of foreigners this week.

Foreign trades were mixed last week. While they were net sellers in HCM City's exchange, responsible for a net value of VND70 billion (US$3.2 million), they remained net buyers in Ha Noi's market, with an increase of nearly VND30 billion (US$1.4 million) worth of shares.

Japan investor to launch logistics hub in Dong Nai

On July 31, a Japanese joint venture unveiled plans to construct a logistics centre to accommodate tenants at the Nhon Trach 3 Industrial Park in Dong Nai Province.

The company is a joint venture comprised of stakeholders Tin Nghia Corporation (contributing 55% of share capital), Japanese Forval Corporation (35% of share capital) and Dong Nai Container Terminal JSC (10% of share capital).

A spokesperson for the venture said it plans to construct warehouses with a total of 182,957 square metres of storage space designed to enhance product delivery to global markets.

The joint venture has an initial pledged capital contribution of US$35.5 million by the stakeholders.

Saigontourist, Astana Expo-2017 cooperate to promote Vietnam-Kazakhstan trade, tourism

Vietnamese tourism company Saigontourist and national company Astana EXPO-2017, which is in charge of organising the World’s Fair EXPO-2017 in Astana, Kazakhstan, on July 30 signed a memorandum of cooperation to promote trade and tourism between the two countries.

Specifically, Saigontourist is going to promote the World’s Fair EXPO-2017 to its customers, especially businesspeople wishing to do business in Kazakhstan, as well as other countries in the Eurasian Economic Union (EAEU).

“The purpose is to give Vietnamese companies information so that they can plan on joining the expo, which is a good opportunity for them to meet potential partners,” said Tran Hung Viet, general director of Saigontourist.

A type of tour that Saigontourist offers is for businesses to combine sightseeing with getting to know the market in the countries they travel to. According to Viet, representatives of many Vietnamese companies have been travelling to countries in the EAEU looking for business opportunities. The majority of them are trading companies wishing to export agricultural produce and seafood.

The World’s Fair EXPO first began in London in 1851. The 2017 World’s Fair EXPO in Astana will focus on the theme “Future Energy”, displaying energy solutions and their global impact. More than 100 countries and 10 international organisations are expected to participate and around five million people are expected to visit the pavilions from June to September 2017.

Vietnam is the first country to sign a free trade agreement with the EAEU, which still maintains a very high barrier to trade with other countries in the world. Therefore, once effective, the FTA is going to give a certain competitive edge for Vietnamese goods as the only group of goods to benefit from tariff cuts as stipulated by the agreement when being imported into the area.

Vietnam’s spending on importing cars rises dramatically

Vietnam spent a total of US$3.4 billion importing cars and spare parts within the first seven months of the year, marking a considerable increase against the same period last year.

According to the latest report from the General Statistics Office of Vietnam, the increase reaches over 154 percent for importing cars.

The number of Chinese-made trucks imported into Vietnam via the border gate in the northern province of Lang Son rose four times in the first quarter this year against the same period last year.

Vietnam also spent $13.1 billion importing computers, parts and electronics appliances; and $4.7 billion buying iron and steel from other countries.

In the meantime, Vietnam has faced difficulties in exporting goods.

The total turnover of Vietnamese aquatic product shipments fell to only $3.6 billion, or a 15 percent drop.

The export of Vietnamese rice fell nearly nine percent in value.

The report also noted that Vietnam had 4,500 families with 19,800 people suffering from malnutrition in July.

In the first seven months of this year, the Southeast Asian country had 776,000 people facing malnutrition, down 35 percent against the same period last year.

A $257 million loan package secured for Genco1’s port

Power Generation Company 1 under Electricity of Vietnam (EVN Genco 1) on July 31 signed an agreement with Vietcombank, Vietinbank, BIDV and Agribank to borrow VND5.5 trillion ($257 million) to build a port in the Duyen Hai Power Centre.

The deep water port, to be located in Dan Thanh commune in Duyen Hai district in the southern province of Tra Vinh, is going to receive fuel for power production in the centre. It can receive 12 million tonnes of coal per year and 1,000 DWT of oil to be used to run the power plants in the centre.

The project to build the port is part of the National Power Development Master Plan for the 2011-2020 period ratified in 2011 by the prime minister. Investment was estimated at VND10.8 trillion ($504 million). Construction started in December 2012 and is expected to finish in December 2015.

Covering an area of 878.91 hecatares, the Duyen Hai Power Centre comprises four coal-fired thermal power plants that use traditional steam-condensed turbine technology. The centre has capacity of 4,308MW and the estimated investment capital of $5 billion.

Corporate bond issuance sees upswing in activity

Vietnam’s corporate bond market had active issuance during the first six months of this year, in contrast to the downtrend of government bond issuance.

The State Treasury encountered obstacles in mobilising capital and could only issue VND75,305 billion ($3.5 billion), equal to 30.4 per cent of the total issuance value of last year. Meanwhile, although the statistics are admittedly incomplete, reports show that there were approximately VND19,515 billion ($895 million) of corporate bonds issued in this year’s first half, 1.4 times higher than issuance for the same period last year and 85.1 per cent of the total for the whole of 2014.

The largest corporate bond issuers were Masan Consumer Holdings (a subsidiary of MSN) with VND9,000 billion ($415 million), Vingroup (VIC) with VND2,000 billion ($92 million), and CII Bridges and Roads Investment Joint Stock Company (LGC) with VND1,200 billion ($55 million). Most of the bonds have less-than-five-year tenors. Since the government stopped issuing shorter-term bonds, C-bonds may have been a good alternative for investors, most of whom prefer short-term bonds.

Bond yields and lending interest rates reached their lowest values in this year’s first half and went up towards the end of June. Low bond yields were a primary factor pushing many issuers to the market.

At the same time, many firms had growing needs for capital to expand business activities as economic growth accelerated. Real estate firms were especially active in issuing corporate bonds. Total issuance from this sector contributed 27.4 per cent of the total value for the first half of the year. In addition, developers like Nam Long Investment Corp. may sell as much as $30 million in offshore bonds in 2015’s second half.

After several years of downturn, the real estate sector has shown signs of recovering from its nadir of 2014. We believe that the residential segment, the most popular real estate segment, has entered a growth phase in 2015.

The real estate market has been aided in its recovery by several expansionary monetary policies. The most noteworthy include home loan support programmes such as Resolution 02/NQ-CP (January 7, 2013), Resolution 61/NQ-CP (August 21, 2015), and a four-party lending programme in the real estate sector via Document 1668/NHNN-TD (March 19, 2015). All of these encouraged construction and real estate companies to raise funds in order to complete outstanding projects or invest in new ones.

Merger and acquisition (M&A) activity also contributed to the expansion of the bond market.  M&A was strong among Vietnamese enterprises during 2015. Several acquirers issued bonds to finance their transactions, including TMT’s purchase of Vinamotor, and HVG’s purchases of Tac Van Company, FMC, and VTF.

Finally, several new regulations encouraged companies to raise capital by issuing bonds. Circular 36/2014/TT-NHNN restricted banks’ portion of credit for equity investment to no more than five per cent of charter or provided capital of a bank or branch of a foreign bank, down from the previous level of 20 per cent of charter capital for securities investment. Therefore, to partly offset the fall in banking funds for securities investment, securities companies may need to raise their equity capital, mobilise capital through bond issuance, or lower their cash dividend, in order to enhance their capacity to make margin loans which are capped at 200 per cent of the equity of broker firms per Decision 637/2011.

Circular 36 made bond investment more attractive by loosening the utilisation rate of short-term capital for long-term borrowings from 30 to 60 percent. That said, with the same structure of capital, commercial banks might increase long-term outstanding loans. Due to high demand for long-term borrowings, this should help banks increase their long-term loans via corporate bonds.

Since the beginning of 2015, many enterprises have made plans to issue corporate bonds to mobilise capital. Listed companies have announced plans to issue approximately VND10,410 billion ($478 million) of corporate bonds that have not yet been executed.

Vietnam safe from China’s stock crash

Vietnam is hardly to be be affected by the Chinese stock market crash in the short-term, but experts have warned that it should take careful measures to protect its own market development.

At the conference themed “China stock market crash and effects on Vietnam’s economy” held by VIR last week, experts agreed that the security market plunge of the world’s second largest economy was not likely to take a toll on Vietnam.

The crash began on June 12, 2015, with the popping of the stock market bubble. A third of the value A-shares  on the Shanghai Stock Exchange was lost within one month.

By July 8-9, 2015, the Shanghai index had fallen 30 per cent over three weeks, and most recently, it fell again on July 27 by 8.5 per cent, despite efforts by the Chinese government. This marked the largest one-day fall since 2007.

Phan Trung Phuong, Chairman of  F.I.T Investment JSC said that “like many other enterprises listed on Vietnam stock market, we are worried about the possible negative consequences of the Chinese plunge.”

However, Nguyen Son, head of the State Security Commission’s Securities Market Development Department said that the effect on Vietnam’s stock market would not be significant, due to the relatively small scale investment portfolio sourced from China.

For the bond market in particular, “currently the majority of active traders are commercial banks, holding some 83-86 per cent of the total amount released, who are not from China,” Son noted.

Regarding indirect effect, the Chinese stock market plunge is also unlikely to harm Vietnam’s traders in the short-term.

“Although China is currently Vietnam’s fourth largest importer, the effect would still be minor,” deputy director of the Central Institute for Economic Management Vo Tri Thanh said.

According to Thanh, this is due to capital mobilised through the Chinese stock market being equal to roughly a tenth of credit loans provided. Also, less than 15 per cent of Chinese household financial assets are invested in the stock market, explaining why a crashing price would do little to hurt consumption.

When it comes to the positive effect, experts have doubts about a substantial flow of capital redirected from China to Vietnam.

“There is under 1 per cent possibility that the capital withdraw out of China will pour into Vietnam,” said analysis director of the Saigon Securities Incorporated (SSI) Nguyen Duc Hung Linh.

Linh commented that the average price-earning ratio of Vietnamese tickers remained at a low of 12, in comparison with 20 in the Chinese market, and even less attractive compared to economies like Japan and India, where the flow was targeted.

Despite the insignificant effects, experts warned that due to similarities between two market models, Vietnam needed to develop a careful roadmap to stay far away from a falling market scenario.

“We should closely manage the finance market, especially focusing on risk prevention,” said Do Trong Khanh, head of the Ministry of Planning and Investment’s Finance and Monetary Department.

According to Son, like China, 80-90 per cent of stock investors in Vietnam were individuals, who followed the herd instinct with little professional analysis. This could lead to risky decisions. Also, the majority of capital was from state-owned companies, implying both markets largely depended on the government’s direction instead of market principles.

In another aspect, Son noted that China’s downturn was now believed to be precipitated by exploits of short selling transactions and index futures. “This is, unfortunately, what Vietnam is planning to boost in the time to come,” he said, adding that the authorised agencies would now be alerted and have to meticulously consider when and how to implement the tools, together with other new derivative products.

TPP talks falter but hopes still high

Talks over the Trans-Partnership Partnership in Hawaii may have resulted in a stalemate but there’s no sense of pessimism in Vietnam.

“The chance to finish negotiating the TPP has been missed many times and now once again, but we should not be surprised or less optimistic,” said Mr. Le Dang Doanh, Director of Central Institute for Economic Management (CIEM).

With nothing signed after four days of ministerial-level negotiations in Hawaii, Mr. Doanh pointed out that the remaining issues are controversial and not easy to resolve. But with continued effort it may not be too difficult to still conclude negotiations this year.

Agreeing, Mr. Vo Tri Thanh, Deputy Director of CIEM, said that even if though this round of negotiations have concluded there was some progress made and some difficult issues resolved. “The negotiation process has lasted many years and all countries have made efforts to overcome the differences, so I think they will come to a general agreement and conclude negotiations this year,” he added.

The first round of negotiations took place in March 2010. After five years the number of countries participating in the negotiations reached 12: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the US and Vietnam.

The TPP is expected to create momentum for Vietnam’s GDP growth in the coming years, supporting long-term growth and setting standards for trade and investment in the future. It is also expected to provide an opportunity for Vietnam to attract more foreign investment and facilitate access to two major markets - the US and Japan.

US Trade Representative Michael Froman said there were only some disagreements and member countries were committed to resolving them in the near future through bilateral discussions. The problems primarily concern the four largest economies - the US, Canada, Japan and Mexico, while 98 per cent of issues have been agreed upon.

Further negotiations later this month will be the last chance for pen to be put to paper this year before the US presidential election campaign gets underway.

Uber released its development plan for Vietnam on its first anniversary on July 30 in Ho Chi Minh City. Uber’s Director in Vietnam, Mr. Dang Viet Dung, and its Marketing Director in Asia-Pacific, Mr. Douglas Ma, spoke of four strategies in the plan: Uber Chopper, cash payments, Uber Pool, and creating 10,000 jobs for drivers.

Uber Chopper is rental helicopter service. Though Uber hasn’t revealed the time it will begin in Vietnam it was established in Shanghai, China, this year. In Shanghai Uber Chopper help guests book a helicopter within 30 minutes to fly in the city. Chinese media have said that the service attracts couples and tourists.

Uber Pool, meanwhile, is an app that saves guests’ money by inviting several people to get into a taxi and sharing the fare.

Uber is currently researching the Da Nang and Nha Trang markets to expand its business. “Vietnam is one of the fastest-growing markets of Uber in the world,” Mr. Dung said. “The incredible growth of Uber in Vietnam is higher than our most ambitious targets.”

In Hanoi and Ho Chi Minh City a customer books a car every five seconds via Uber. “Moreover, the waiting time has fallen significantly, to about four minutes on average,” he said.

Uber has created 3,000 jobs for drivers and helps them improve their income, he added. It also improved the efficiency of car use, to 65 per cent of the time available compared to the average of 30 to 40 per cent.

Mr. Ma also stressed that the process of selecting partners is strict and they must have a business license. Passengers in Uber cars can share their trip with friends and evaluate the quality of service to help drive improvements.

PNJ's reaches 60% of annual profit target

The Phu Nhuan Jewelry Joint Stock Company (Code: PNJ) has recently announced its estimated business performance for the first half of 2015, with revenue of VND3.855 trillion  ($179 million), an increase of 6 per cent over the same period in 2014.

Estimated profit after tax is VND228 billion ($10.6 million), growing 46 per cent and accomplishing 60 per cent of the annual target.

Jewelry retail was the main contributor to its impressive, with 75 per cent of the gross profit.

According to the latest report from the World Gold Council (WGC), Vietnam’s jewelry demand in first quarter of 2015 rose again, with 4.1 tons (equal to 10 per cent growth), which contributed to boosting the growth of PNJ’s retail business. In first half its jewelry retail sales grew 56 per cent and gross profit 48 per cent over the same period last year.

So far this year PNJ has officially opened 17 new large gold stores nationwide, reaching 49 per cent year target. It was to open four more in July, in preparation for the peak season, in the fourth quarter.

Beside its positive business performance, PNJ has also entered the final round of three important categories in the JNA Awards (Jewelry News Asia), including Top Enterprise of the Year, Top Asian Enterprises of the Year, and Retailer of the Year.

PNJ is one of only a few stock with its full complement of foreign ownership. At the end of the trading session on July 3 its market price was VND39,200 per share, equivalent to VND3.852 trillion ($179.16 million) in equity.

$253 million loan for deepwater port

Four State-owned commercial banks have signed a credit agreement to finance the Coastal Power Center Seaport project of the Power Generation Corporation 1 (EVN Genco 1).

Vietcombank, Vietinbank, BIDV and Agribank are to lend VND5.5 trillion ($253 million) for the project’s first phase.

At the signing ceremony, Vietcombank also expressed a desire to continue to finance the project’s next stage.

The project is part of national electricity development planning in the 2011-2020 period and vision to 2030, under the government’s Decision No. 1208, with total investment of over VND10.7 trillion ($492.2 million).

The deepwater port, in Dan Thanh commune, Duyen Hai district, in the Mekong Delta’s Tra Vinh province, will used for the Coastal Power Center, consisting of a wharf that can berth coal vessels of 30,000 DWT and oil vessels of 1,000 DWT annually, to serve the operation of power plants within the center.

Established in June 2012, EVN Genco 1 is 100 per cent owned by Electricity of Vietnam (EVN). The Coastal Power Center Seaport is the first project of EVN Genco 1 to be co-sponsored by four State-owned commercial banks.

SBV updates bad debt ratios

The State Bank of Vietnam (SBV) has updated the bad debt situation in the finance sector as at March. The bad debt ratio continuously rose in the first three months of the year, to 3.49 per cent in January, 3.59 per cent in February, and 3.81 per cent in March.

The SBV said the bad debt ratio is now more accurate and there is no significant difference between the figures tallied by the SBV and those tallied by financial institutions.

In accordance with Circular No. 02/2013/TT-NHNN and Circular No. 09/2014/TT-NHNN issued by the SBV, from January 1 financial institutions had to benchmark the classification of bad debts on each customer from information of the National Credit Information Center of Vietnam (CIC). This may be why bad debts increased every month during the first three months of the year, the SBV said.

Gamuda Land assigns distributor for Celadon City

Malaysia’s Gamuda Land has assigned the Real Estate Project Supermarket System (STDA), South Branch, under Cengroup as the exclusive distribution agent of Celadon City from August 1, after successfully cooperating in selling and marketing other projects in the past, such as Botanic Precinct in Gamuda Gardens and The One Residence Condominium in Hanoi.

Located in Tan Phu district in Ho Chi Minh City, Celadon City, with a total area of 82 ha, was officially taken over by Gamuda Land on July 18, after Sacomreal and Thanh Thanh Cong transferred the project to the Malaysia developer for some VND1.4 trillion ($64.17 million).

Celadon City is a residential precinct stretching across 27 hectares and featuring 7,000 medium-end and premium contemporary apartments specifically designed for young urbanites who prefer innovative lifestyles amid a harmonious living environment and thriving community.

Gamuda Land, a real estate corporation under Gamuda Berhad Malaysia, is one of the biggest infrastructure companies in Malaysia. The company marked its presence in Vietnam with its first project, the 500 ha Gamuda City in Hanoi. With total investments of $5 billion, Gamuda City includes five key components: Yen So Park, Gamuda Lakes, Gamuda Central, Gamuda Plaza, and Gamuda Gardens.

STDA is a notable real estate agent in Vietnam, distributing high-quality products from renowned developers. Many local and international developers have chosen to engage it to bring their projects to the market, including Khang Dien, Vinhomes (Vingroup), TID, and Mipec, among others.

2,500 businesses to join Online Friday 2015

The second online shopping day--Online Friday 2015 will be held on the first Friday of December, announced the Viet Nam E-Commerce and Information Technology Agency (VECITA).

About 2,500 businesses featuring more than 15,000 products will participate in the online shopping event which will take place on December 4. The revenue is expected to reach VND500 billion (US$23 million), said the organizers.

The first Online Friday event bringing VND154 billion (US$7.07 million) attracted more than 1,000 traders with over 3,200 products and draw 10 million views via the website onlinefriday.vn.

The VECITA will organize training courses on developing and applying for online trading from now until 2020. Around 25,000 enterprises throughout the country are expected to take part in the program.

Hung Loc industrial complex invested over VND 300bln

Dong Nai Textile and Garment Corporation in Hung Loc Commune, Thong Nhat district of the southern province of Dong Nai on July 31 inaugurated to build Hung Loc industrial complex in Dong Nai.

The project covers an area of 42 ha with total investment capital of over VND 300billion. It is to prepare for removing textile & garment manufactory of Dong Nai textile & industrial garment company that located in Bien Hoa 1 Industrial Zone in Bien Hoa city.

Japanese businesses seek VN aviation industry investment opportunitie

A delegation of Japanese businesses that specialise in manufacturing aircraft spare parts and devices visited Viet Nam to seek opportunities in the aviation industry.

In a meeting with leaders of the Vietnam Chamber of Commerce and Industry (VCCI) on August 3, the Japanese delegation's representative, Tamai Na Richika, said Japanese businesses would like to co-operate with Vietnamese partners in producing spare parts for aircraft.

He also expected to be introduced to other areas that Japanese small and medium businesses could help develop in Viet Nam.

Chairman of VCCI Vu Tien Loc welcomed the Japanese businesses and said the businesses should relocate their supporting industries for aircraft spare parts and devices to Viet Nam.

He said Viet Nam offered several advantages in terms of workers, land and workshops, while Japan was strong in terms of capital and technology. Therefore, the co-operation between the two sides was necessary.

Loc mentioned Mitsubishi as an example. The corporation established its aircraft spare parts production unit in Viet Nam successfully. It has been producing wings for the Boeing 7E7 Dreamliner in the country.

The VCCI leader said Japanese businesses should also invest in the textiles and garment sector, electronic industry, and automobiles, hi-tech agriculture, real estate and tourism sectors in Viet Nam.

The automobile industry has great potential for investors in Viet Nam, which has a population of more than 90 million and an increasing demand for cars.

Viet Nam is also the leading ASEAN exporter of garments and textiles to the United States. However, it has to import many machines and equipment from other countries.

"With the signing of trade agreements in the recent past, and the possibility of joining the Trans-Pacific Partnership in the future, Viet Nam will have several advantages in exporting goods to large foreign markets. This will provide potential for the development of related industries," Loc said.

Malaysian tissue paper producer negotiates $5.2m orders in Viet Nam

Tissue paper manufacturer NTPM Holdings Bhd of Malaysia is negotiating for a couple of orders worth about US$5.2 million per year for its new operations in HCM City, StarBiz online newspaper of Malaysia reported.

Group managing director Lee See Jin told the newspaper that the orders were among the several business deals that the group was trying to seal for the new manufacturing entity in Viet Nam.

He said around 450 tonnes of tissue paper products would be consumed in the Vietnamese market each month.

The new plant in Viet Nam has the capacity to produce up to 1,000 tonnes of tissue products per month.

"Our actual production per month is 800 tonnes, running on one production line. There are plans to add another four production lines at the Vietnamese plant in the future.

"There are also plans to introduce personal care products such as sanitary napkins, diapers, wet wipes and facial cottons for the Vietnamese market," he said.

Lee said the group had invested $10.2-13 million in the Vietnamese operations, which would help it to grow about 3% a year in terms of revenue and bottom line.

NTPM currently has six plants in Malaysia – located in Penang, Parit Buntar in Perak, Bentong in Pahang, and Sabah – producing 220 tonnes of tissue products daily, of which about 30% are exported.

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