Starbucks opens fourth Ha Noi store

Starbucks opened its fourth store in Ha Noi this morning.

The American coffee chain previously opened three coffee shops in the capital city in August. The new store is located on the ground floor of the Indochina Plaza Hanoi shopping centre at 241 Xuan Thuy Street, Cau Giay District.

"Starbucks provides more than just the finest cup of coffee. We offer a community gathering place where people come together, connect with family and friends, and celebrate the local coffee culture and heritage," said Patricia Marques, General Manager of Starbucks Vietnam.

Standardized seaport to take shape in Phu Quoc island

Around VND1,254 billion will be invested in building a seaport in Phu Quoc island which is able to receive foreign tourist ships.

The decision was made on October 3 by representatives of the Transport Ministry and leaders of Kien Giang southern province.

The port will be built in Duong Dong township to receive cruise ships each with between 5,000-6,000 passengers.

Vingroup was invited by the province to invest in the project after the private-public partnership (PPP) model.

Deputy Minister of Transport Nguyen Van Cong has asked the Vietnam Maritime Administration to cooperate with Portcoast Consultant Corporation and Vingroup to develop a financial plan for the construction.

Northern provinces establish partnership for tourism development

The four northern provinces of Bac Giang, Thai Nguyen, Hai Duong, and Quang Ninh need to work together closely to tap into their tourism potential, according to participants in a workshop in Bac Giang on October 4.

The event concluded that tourism in the four localities, which are rich in natural and cultural resources, could generate substantial revenue from cooperating and developing new tourism services.

Participants pointed out the lax coordination between the provincial tourism sectors. In particular, Thai Nguyen, Bac Giang and Hai Duong were yet to make full use of their proximity to Hanoi and Quang Ninh, two major tourism hubs in northern Vietnam , thus limiting the number of international tourists to the area.

Deputy General Director of the Vietnam National Administration of Tourism Ha Van Sieu said the localities needed to base their tourism cooperation on the specific features of each province and the common regional identity to create appropriate tourism services that reflected the characteristics of both the region and the individual provinces.

Additionally, they were also asked to run joint promotional campaigns, train human resources together, draft joint tourism development plans, and improve regional traffic and tourism infrastructure.

During the workshop, officials from the four provinces agreed that coordination was an effective tool for developing tourism and pledged to increase cooperation in this field.

Leather-footwear sector not well informed of EU market

Local leather-footwear industry is facing barriers to entering the European market as local players are not yet updated on requirements when exporting commodities there, especially at a time when Vietnam is preparing to sign a free trade agreement with the European Union (EU).

Many experts at a seminar held two days ago noted that local enterprises still lack information and are not knowledgeable about legal standards and requirements in the EU regarding product safety. The seminar was held to disseminate information about a project to support local leather-footwear firms to comply with product safety regulations.

Nguyen Van Thong, head of the Textile Research Institute, mentioned certain shortcomings such as lack of information and knowledge on legal and private standards of the EU. Moreover, many of Vietnam’s test results and certificates for its products are not internationally recognized.

In addition, Vietnam has yet to have an organization responsible for updating enterprises of the EU’s mandatory requirements. A survey shows that local footwear enterprises are still ignorant of eco-safety standards, which means they will face barriers when shipping products to the EU.

Bui Van Huan, deputy chief of the School of Textile-Leather and Fashion, said ecological safety of leather-footwear products is a new aspect which local producers and exporters should heed. Most companies fail to pay attention to these criteria.

Export revenues of EU-bound leather-footwear products have declined significantly in recent years because many safety standards for leather-footwear products have taken effect with requirements beyond the capacity of local enterprises, especially small and medium ones.

Local firms should look into the related matters and take practical measures to meet the importers’ demand, added Thong of Textile Research Institute.

The project to support local leather-footwear firms to comply with product safety regulations in the EU is expected to be conducted in 30 months with a total cost of over 314,000 euros.

The project aims to provide necessary information for enterprises to meet the EU’s safety standards, and help them approach testing services at affordable prices and get internationally-recognized certificates.

Phan Thi Thanh Xuan, general secretary of Vietnam Leather, Footwear and Handbag Association, said three operational laboratories in Vietnam will be improved in line with global standards thanks to the project. In addition, many small and medium enterprises will also receive training to enhance their competitive edge and boost exports.

No local enterprise enjoys support industry incentives

The Government has issued a lot of decisions of giving priorities to support industry development, but none of domestic enterprises have been able to access incentives.

Only one foreign enterprise has been listed to enjoy the preferential policies, said head of the Legislation Department under the Ministry of Industry and Trade Nguyen Sinh Nhat Tan in Ho Chi Minh City on October 2.

He was speaking at a seminar discussing a Government’s draft decree on support industry development.

According to the department, domestic support industry has met only 10-15 percent of demand in automobile, electronic and shipbuilding industries.

The number of businesses in the support industry is too few compared to the total number of enterprises in Vietnam.

Delegates at the seminar said that relevant ministries and department should work together while implementing the Government’s preferential policies to bring more local enterprises incentives.

The draft decree should detail the incentives especially in tax, customs, interest rate and land policies, they said. Procedures in implementation of the policies should be simple and clear.

Australian shipbuilder wants to build cruiser yard in Da Nang

After conducting a survey in the central city of Da Nang, director general of Corsair Marine International Company under the Australian SeaWind Group Mike Rees expressed desire to invest in a cruiser building yard there.

An announcement from the city People’s Committee on October 2 said that the yard will build 70 cruisers from composite material and carbon fiber a year. It will also supply repair and upgrade services to high class pleasure boats.

The US$20 million work is expected to make the city for development of sea amusement industry, and contribute in boosting shipbuilding and support industries in Vietnam, said Mr. Rees.

The SeaWind Group provides 60-100 cruisers to the US, European and Australian markets annually. In Vietnam, its five cruisers are operating for resorts in Nha Trang City.

Vietnam’s economic situation introduced at WTO Public Forum

A Vietnamese delegate on October 3 presented to the World Trade Organisation (WTO) Public Forum in Geneva an overview of Vietnam’s economic developments as well as opportunities and challenges facing EU businesses when investing in the country.

In his presentation, Ambassador Nguyen Trung Thanh, Vietnam’s permanent representative to the United Nations, the WTO, and other international organisations in Geneva, highlighted the role of world trade in Vietnam’s economic success in recent years in the context of the country accelerating transition to a more modern market economy and deeper and more extensive integration into the global market.

After 15 years being a WTO member, Vietnam enjoyed a more than 10-fold increase in trade turnover, with 2012 marking the first time the country recorded a trade surplus in the past 20 years, the ambassador said.

In the first eight months of 2014, the country’s foreign trade turnover hit 191.4 billion USD, a year-on-year rise of 12.5 percent. Of the total, imports were valued at 94.16 billion USD, whilst export revenue reached 97.23 billion USD.

Vietnam has enjoyed stability in macro-economy with lower inflation, growing trade and increase in investment inflow, Thanh said, adding that the economic growth rate, however, is slowing down due to the careful restructuring of the banking system and State-owned enterprises.

The country is also facing a middle income trap and still lack outstanding policy-makers and economists and skilled workers, while economic growth in an open market mechanism is putting a burden on natural resources and sustainable environmental development, Thanh stated.

The official affirmed Vietnam’s commitment to continue with economic reform, maintain a stable political situation, create a social consensus in economic policies and become a cheap and safe destination for tourists.

Regarding the relations between Vietnam and the EU – one of its most important trade partners and investors, the diplomat affirmed that the two sides experienced a strong development in bilateral economic and trade ties over the past decade.

He attributed the development to a number of agreements signed between the two sides, notably the Partnership and Cooperation Agreement (PCA). They are also negotiating for a free trade agreement (FTA), which is expected to be inked by year-end.

Last year, the value of EU exports to Vietnam increased by 4.2 percent against the previous year. The union was the sixth largest investor of Vietnam in 2013 with 71 newly-registered projects.

In the time ahead, Vietnam will expand negotiations on bilateral trade agreements, prioritise developing information technology and support industries, reduce the export of natural resources and facilitate the operation of businesses, especially small and medium-sized ones, he stated.

This year’s WTO Public Forum took place on October 1-3 with 68 discussion sessions on “Why trade matters to everyone”

Workshop seeks ways to increase business competitiveness

A workshop was held in the central city of Da Nang on October 3, offering a chance for authorities, economists and businesses in the city and other central localities to discuss ways to increase competitiveness in the country’s economic integration and restructuring process.

Nguyen Dinh Thien, head of the Institute of Economics, said that to help enterprises find the right way for development and accelerate economic restructuring, a high-level institutionalised market economic zone should be set up in Ho Chi Minh City while special economic zones should be established in the three strategic areas which are northern Quang Ninh province’s Ha Long-Van Don, southern Kien Giang province’s Phu Quoc Island and the southern coastal province of Ba Ria-Vung Tau.

He also stressed the need to swiftly revise the State Budget Law and relevant laws in order to make funds allocated to localities reasonably.

Vo Duy Khuong, Vice Chairman of Da Nang People’s Committee said the city now has 15,000 businesses, of which 99 percent are small and medium-sized.

So far this year, 1,200 enterprises have had to dissolve or temporarily stop operation due to the gloomy market’s impact and lack of production capital.

He reported that the city has carried out practical measures to support local businesses, adding that in the time to come, Da Nang will focus on developing more big businesses, with priority given to the fields of tourism, services and high technology.

According to a pending project on enterprise development by 2020, the city sets targets of raising the number of businesses by 10 percent per year, and creating jobs for additional 31,000 people annually.

Government bonds fetch 5 trillion VND

The Hanoi Stock Exchange (HNX) organised an auction for government bonds issued by the State Treasury, including bonds with five-, ten- and fifteen-year terms, mobilising a total of 5 trillion VND (238 million USD).

Fifteen bidders signed up for 5.12 trillion VND worth of 5-year bonds, seeking annual interest rates of 5-6.3 percent. In the end, bonds worth one trillion VND were sold at interest rates of 5.05 percent.

Ten bidders registered for 3.979 trillion VND worth of 10-year bonds, seeking annual interest rates of 6-8 percent. Bonds worth two trillion VND were sold with an interest rate of 6.28 percent per year.

A total of 2.92 trillion VND worth of 15-year bonds was registered by 8 bidders looking for interest rates of 6.7–7.8 percent per year. The State Treasury sold bonds worth two trillion VND at an annual interest rate of 6.96 percent.

Since the beginning of this year, the State Treasury has mobilised more than 176 trillion VND through government bonds.

Vietravel receives World Travel Award

Vietnam’s only nominee, Vietravel was honoured a title of the World Travel Awards 2014 (WTA) at the awards ceremony in Bangkok, Thailand on October 2.

This is the fourth year in a row that Vietravel has been honoured by TTG Asia magazine’s Travel Award.

Established in 1995, Vietravel has recorded significant growth and become a leading tourist company in Vietnam and the Asian region.

During the first nine months of 2014, Vietravel welcomed 457,000 customers and generated 3.5 trillion VND (164 million USD) in revenue, up by 25 percent compared to the year before.

Vietravel faced the challenge of a decline in the number of Chinese tourists and a failure to develop South Africa as an attractive destination for Vietnamese tourists. However, Vietravel promoted other markets such as Japan and the Republic of Korea (RoK).

Additionally, the company introduced its services on the EU and US markets, which have started to attract 400-500 tourists a month.

The domestic market has also been stimulated, with a focus on Da Nang, Phu Quoc and Nha Trang, recording a growth rate of 25 percent year-on-year.

Vietravel has an extensive office network both domestically and abroad, with more than 40 offices nationwide and branches in Cambodia, Thailand, and the US.

According to the company’s five year plan for 2015-2020, Vietravel aims to become Vietnam’s first multinational tourist company.

Work starts on VND2.3 trillion tole producing factory in Nghe An

National Assembly Chairman, Nguyen Sinh Hung, on October 4, joined local authorities and investors to kick start construction for the Hoa Sen Nghe An tole manufacturing factory in Nam Cam Industrial Park, central Nghe An province.

The VND2.3 trillion (US$108 million) project, invested by the Hoa Sen Group, consists of 12 steel pipe production lines with a total design capacity of 100,000 tonnes a year, a colour-coated tole production line with a capacity of 100,000 tonnes per year, and a chain of cold rolling mills of 400,000 tonnes per year, among others.

It is expected that the three phases of the project will be completed by August 2018, creating jobs for about 500 local workers and contributing significantly to the local budget and socio-economic development of the North-Central provinces.

The facility will also improve the group’s production capacity of steel products to meet the local market demand and increase exports to Southeast Asian countries.

At present, Hoa Sen Group makes up nearly 40% market share of tole and more than 20% market share of steel pipes in Vietnam, providing its products via 130 branches across the nation. Its products have been exported to over 40 countries and territories around the world.

Also at the ceremony, NA Chairman Hung presented the Labour Medal, second class to Le Phuoc Vu, Chairman of the Board of Directors of Hoa Sen Lotus, for his outstanding achievements in leadership and business activities, and contribution to national development.

Hoa Sen Group also awarded scholarships and gifts to needy students in Nghe An’s Anh Son district.

Retail sales nationwide grow slows

Vietnam’s total retail sales of goods and services in the first nine months of this year expanded by 11.1% year-on-year to more than VND2.15 trillion, and this growth rate was seen lower than the same period in previous years.

According to the General Statistics Office (GSO), September’s retail revenues from goods and services reached VND244.5 trillion, up only 0.7% month-on-month and 9.1% year-on-year.

Last month, retail sales of goods accounted for just over VND186 trillion, rising by 0.9% compared to August and 10.4% year-on-year. Revenues from accommodation, catering and tourism services were VND31.3 trillion, down 0.9% month-on-month but up 10.4% over a year ago.

Sales of accommodation and catering services in Hanoi picked up only 1% last month from August while the rise in HCMC was 9%. The capital city reported a decline of 3.8% in tourism revenues while HCMC saw a 1.2% drop.

According to GSO, last year’s total retail sales of goods and services increased by 12.6% over 2012 to around VND2.62 trillion. If the price factor was excluded, total retail sales of last year inched up 5.6% compared to 6.5% in the previous year.

Experts attributed the slowed growth in retail sales this year to the impacts of economic difficulties on the incomes and spending of consumers, particularly on fashion and non-essential products. Consumers mainly buy necessary items for their families.

Retailers of modern channels reported increases in their revenues in the year to date over the same period last year but this has resulted from the expansion of their sales channels and higher goods prices.

Consumption has not improved as much as expected despite a number of promotion programs and discounts offered by large and small stores.

The State economic sector posted a total of almost VND217 trillion in retail sales of goods and services in January-September, up 8.4% and accounting for 10.1% of the national number. The respective figures of the foreign-invested sector were and VND72.6 trillion, 21.6% and 3.4%.

Goods sales made up VND1.617 trillion, or 75.4%, of the national figure in January-September, accommodation and catering services VND259.5 trillion (12.1%), tourism VND22.3 trillion (1%) and other services VND246.5 trillion (11.5%).

HSBC: More orders support manufacturing sector

A pickup of new business orders contributed to improving operations of the manufacturing sector in Vietnam at the end of the third quarter of the year, according to HSBC Bank.

The bank said in a report on September’s Purchasing Managers’ Index (PMI) on Wednesday that the rates of growth in output and employment were slight following the dip in new orders in August while the input cost increase eased for the second month in a row and was the slowest since June 2013.

The headline seasonally adjusted PMI rose to 51.7 in September from 50.3 in the previous month.

The reading signaled a stronger improvement in operating conditions in the manufacturing sector than in August, albeit one that remained only modest. Business conditions have now strengthened in each of the past 13 months.

The bank said the improvement in operating conditions was backed by a rebound in new orders, which increased solidly following a decline in August.

Panelists reported that customer demand had increased during the month and new export orders also returned to growth.

Manufacturers responded to the rise in new orders by increasing production, extending the current sequence of growth to 12 months. The rate of expansion quickened to the fastest in three months but remained slight.

The fall in new orders in August had enabled firms to work through outstanding business, leading backlogs of work to decrease solidly last month, the report said.

In addition, the rate of input cost inflation eased further in September and was the weakest since June 2013. Input prices went up as a result of higher transportation costs.

Output prices were broadly unchanged during the month. While some respondents increased charges in response to higher input prices, competition and efforts to boost new business had led a number of firms to lower their output prices.

According to the report, stocks of both purchases and finished goods rose in September amid reports of attempts to build inventory reserves. This was also a factor behind a rise in input buying, which grew at the fastest pace in four months.

Suppliers’ delivery times lengthened marginally with the latest deterioration in vendor performance the weakest in six months. Where delivery times lengthened, this was linked to the truck weight restrictions and shortages of some materials.

Commenting on the Vietnam Manufacturing PMI survey, Trinh Nguyen, Asia economist at HSBC, said the pickup of manufacturing activity reflects improving external demand.

“Given that new orders are stronger than inventories, we expect output to continue to expand next month. Easing inflationary pressures also help, as shown by the slower pace of expansion of input prices,” she said in the report.

The bank projected the manufacturing sector to perform well into the fourth quarter as the country is competitive in terms of labor, electricity and water costs. “Anticipation of good news in 2015 or 2016 regarding trade liberalization will also help the sector,” the expert said.

Vietnam Air to take delivery of first Airbus A350 XWB next year

Vietnam Airlines is expected to take delivery of the first fuel-efficient wide-body Airbus A350 XWB in the middle of next year as part of its major fleet modernization and network expansion plan.

European plane manufacturer Airbus said in a statement that the first A350 XWB (Xtra Wide-Body) for Vietnam Airlines has entered into the final assembly stages at the Roger Béteille Final Assembly Line in France’s Toulouse and delivery is scheduled in mid-2015.

“The aircraft will see Vietnam Airlines become the first Asian airline to fly the A350 XWB and the second operator in the world of the all-new, fuel-efficient wide-body aircraft,” Airbus said in the statement sent to the Daily on October 2.

According to Airbus, Vietnam Airlines has a total of 10 A350 XWB on order and the national carrier will operate the aircraft on its premium long-range services.

At present, Vietnam Airlines operates more than 80 aircraft on its domestic and international routes. The carrier plans to expand its fleet to more than 100 planes by 2015 and 150 in 2020, including modern jetliners like Boeing B787-9 and A350 XWB.

Vietnam Airlines is one of the 39 customers worldwide who have already placed 750 firm orders for the A350 XWB to date.

The A350 XWB uses 25% less fuel, an equivalent reduction in carbon dioxide emissions compared to existing aircraft of this size category. Airbus said the five A350 test aircraft currently flying have accumulated some 2,600 flight hours in more than 600 flights, with entry into service planned for the fourth quarter of this year.

State budget reports need transparency

Reports on the State budget in general should be transparent and publicized, suggested Phung Quoc Hien, head of the National Assembly (NA) Committee for Finance and Budget.

Hien made the statement while reading a report appraising the revised Law on State Budget at a session of the NA Standing Committee held on October 2.

Review, inspection and audit activities by social organizations and individuals should be provided for in the Law on State Budget.

He said that estimates for budget revenue and spending should not be treated as confidential when such reports are submitted to the Assembly and other People’s Councils. Only information related to the nation’s security and defense should be kept confidential, Hien added.

Hien also noted that there must be estimates for State budget revenue collection and spending. Therefore, he suggested that a sum cannot be withdrawn from the State Treasury for expenditure if its estimate has yet to be approved by the competent authorities.

The State budget should also include Government bonds to secure transparency.

The growth of State budget revenue collection has increased substantially in the recent past. The budget revenue exceeded the target by more than 18% per year on average between 2004 and 2013 with last year’s revenue collection up 5.4 times against 2003.

Exports to China grow strongly

Vietnam’s exports to China in January-September jumped 16% year-on-year, or twice the growth rate in the corresponding period of last year.

The Government said in a report submitted to the National Assembly Standing Committee that bilateral trade between Vietnam and China in the year to date has not been affected by the East Sea tensions.

Exports to China made up 10.2% of the country’s total export revenue, while imports from China also grew more than 16% and accounted for 28.7% of the country’s total import bill.

Vietnam shipped US$1.2-1.3 billion worth of products to China a month in January-September. Most items posted positive growth except for coal which fell 51% in volume.

The report also showed that monthly imports from China reached US$3.38 billion in January-July of this year, with May seeing the highest value of US$4 billion.

Overall, import-export growth rate in this market was higher than the average of the country.

Vietnam dong depreciates against greenback

Vietnam dong continued to slightly fall against the U.S. dollar on October 2 after staying firm for a long time.

Vietcombank quoted the greenback at VND21,290 on October 2 morning before lowering it to VND21,280 in the afternoon. Meanwhile, Techcombank sold a dollar at VND21,295. Since mid-September, the dong-U.S. dollar exchange rate has increased mildly and remained stable in general.

Earlier, the dollar had stood at VND21,210-21,230 for around a month, much lower than the ceiling level of VND21,458 and even lower than that before the central bank devaluated the domestic currency by 1% to support exports in June.

After the central bank’s move, the local currency, unlike earlier expectation, kept appreciating due to strong dollar supplies backed by trade surplus, foreign direct and indirect investment inflows, official development assistance (ODA) capital and overseas remittances.

Regarding the appreciation of the greenback over the past 10 days, an economic expert said enterprises have had higher demand for foreign currencies at the end of the third quarter to pay for imports. Besides, foreign-invested enterprises also have to buy dollars for repatriation to their parent firms.

As mobilization rates are low, banks also have demand to use dong funds to buy U.S. dollars, thus piling pressure on the exchange rate.

BIDV Securities Company in a report released on October 2 said the exchange rate is expected to inch up towards the end of this year. It is almost unlikely that the rate is adjusted further in the fourth quarter of this year.

In case the country wants to speed up exports, the dong could be depreciated but at a modest rate (even lower than 1-1.43% within this year as announced by the central bank’s governor Nguyen Van Binh at a question-and-answer session before the National Assembly early this week) as Vietnam’s public debt is still high, the report said.

Average rates on the inter-bank market continued to decline last week, according to Vietnam News Agency.

The overnight rate stood at 1.50% per annum, down 0.14 percentage point against a week earlier. Average rates for tenors of one month or less hovered from 1.87% to 2.75% per annum.

SCPE invests US$90 million in local agricultural firm

Standard Chartered Private Equity (SCPE), an investment arm of Standard Chartered Bank, has spent US$90 million acquiring shares at An Giang Plant Protection Joint Stock Company (AGPPS).

According to a statement released by Standard Chartered Vietnam Bank Wednesday, SCPE will provide strategic input for AGPPS’s business planning and support the management of its development plans. However, the fund did not disclose the stake it holds at the local firm.

AGPPS chairman Huynh Van Thon said with their experience and global operations, Standard Chartered will play a vital role in contributing to the growth of AGPPS’s operations in the rice, plant protection chemicals and seed segments and other promising areas across the agricultural value chain in Vietnam and worldwide.

“Standard Chartered is a shareholder that fully understands and strongly supports AGPPS’s strategy in developing the agricultural value chain. We believe that Standard Chartered will become a strategic shareholder that supports AGPPS to successfully develop an agricultural value chain, thereby contributing to the development of agriculture in Vietnam and bringing more value to the farmers,” Thon said in the statement.

As published on VinaCapital’s website on September 26, VinaCapital’s Vietnam Opportunity Fund (VOF) will sell its 23.6% stake in AGPPS for US$63.1 million in cash, or VND85,000 per share.

Earlier, according to the 2014 annual general meeting of AGPPS in April, Thon said the firm is restructuring shareholders as some are not suitable for its development goals.

SCPE is one of two potential investors that AGPPS considers, he said.

Early this year, Standard Chartered Bank lent US$70 million to AGPPS to aid developing a model of large-scale paddy fields in the Mekong Delta.

The AGPPS stake acquisition is the second investment deal in Vietnam SCPE has announced. On September 16, the fund said it had invested US$35 million in Golden Gate Trade & Services Joint Stock Company, the owner of restaurant and beer club chains such as Kichi-Kichi, Sumo BBQ and Vuvuzela.

Nguyen Cao Tri, director of Golden Gate’s HCMC branch, said aside from the 10% stake bought from Mekong Capital, SCPE has also acquired stakes of some minor shareholders.

Funds highlight conditions to invest in startup projects

Investment funds at a seminar in HCMC on Tuesday highlighted criteria they often consider when making decisions to invest in business startups, especially experiences of founders, organizational structures, and market segments for products.

According to Than Trong Phuc, managing director of DFJ VinaCapital, funds also look at the workforce of such young enterprises and their sets of working processes.

Phuc said his firm pays attention to startups or projects in the information technology sector, especially technologies that are invented in Vietnam yet can be applied abroad or developed into commercial products.

DFJ VinaCapital has spent US$30 million on Vietnamese firms with a minimum investment of US$300,000 and a maximum of US$5 million.

Many representatives from private investment and venture capital funds expressed their concern about business ethics.

Investment risks are considered higher than before due to unclear explanations of rules and regulations, as well as quality of human resources, they said. Issues related to copyright are not properly respected, while many businesses compete by undercutting one another.

Meanwhile, Dragon Capital is looking for startups that have survived difficulties in the start-up years and are capable of absorbing investments of US$10 million or more, according to Le Hoang Anh, managing director of the investment fund.

The total amount of investment this fund has spent on projects in Vietnam over the last 11 years is over US$1 billion, he said.

Phuc of DFJ VinaCapital said it is quite simple for business startups to approach investment funds for capital. Representatives of startups can apply directly at the office or send their projects via email and wait for a response from the investment fund.

Owners of viable projects will be invited to the fund’s office for further discussion, he said.

Pham Hong Quat, director of the Market and Sci-Tech Enterprise Development Department, said the Ministry of Science And Technology has raised funds for commercializing products of scientific research.

The Government has not yet established venture capital funds to invest in startups. Therefore, the ministry highly appreciated investments from companies and private venture funds, he said.

Local retailers face tough competition

Local retailers do not require preferential treatment, only a level playing field, they told a seminar on retail market development organised by the Viet Nam Retailers Association in Ha Noi on Friday.

The chairwoman of the association, Dinh Thi My Loan, said Germany's Metro entered Viet Nam as a wholesaler but its 19 outlets operate as retailers.

Local retailers face difficulties in competing with these "wholesale giants," she said.

Local retailers do not require protection only equal and transparent policies, Tuoi Tre Online quoted her as saying.

Nguyen Tien Vuong, deputy general director of Ha Noi Trading Corp (Hapro), said many foreign investors want to establish joint ventures with his company, but always on the condition that they would hold a 51 per cent stake.

They were rejected because "we do not like the Hapro brand name to be changed into a foreign name," he said.

Many Vietnamese retailers like Saigon Co.op, Phu Thai, HC, and Nguyen Kim have proved highly successful.

But they face intense competition from foreign giants like E-Mart, Big C, Lotte, and Lock & Lock who have entered the local market over the past several years.

Tran Nguyen Nam, deputy head of the Ministry of Industry and Trade's Domestic Market Department, said the Vietnamese retail market is worth US$125 billion a year.

Pham Dinh Doan, chairman of Phu Thai Group, said a number of large foreign wholesalers in Viet Nam are seeking to expand their operations.

Japan's Aeon Group has a large mall in HCM City and plans to opens another big one in Ha Noi next year, he said.

An investment of US$100,000 is required to open a 24-hour shop, but to be profitable 300 outlets need to be set up, he said.

To succeed, local retailers should seek to set up joint ventures with foreign partners, he added.

Fisheries output up in 9 months

Both seafood and aquaculture output are up in the first nine months of the year, according to the Ministry of Agriculture and Rural Development.

Fishermen caught 2.1 million tonnes of fish and other species from the sea and 140,000 tonnes from rivers, canals, and ponds for a total catch that was up 4.8 per cent from the same period last year.

The ministry attributed the increase to favourable weather, productive fishing grounds, and greater investment in boats.

Fishermen also focused on catching high-value fish.

Many provinces have formed fishing fleets that work together at sea, and they have operating effectively, the ministry said.

With Government support, many fishermen have taken loans to buy fishing equipment, it said.

Provinces like Kien Giang, Binh Thuan, Binh Dinh, and Ben Tre have seen their fish catch increase greatly.

Kien Giang fishermen for instance caught 345,600 tonnes of fish and other marine products, a 14.2 per cent rise year-on-year.

The country's aquaculture output also rose, expanding by 4.9 per cent to 2.49 million tonnes.

But the output of tra, farmed almost exclusively in the delta, was down, according to local agriculture departments.

They blamed it on the low prices of the fish.

Several provinces in the Cuu Long (Mekong) Delta like Bac Lieu, Tra Vinh, and Kien Giang have seen the output of black-tiger shrimp increase.

The value of fisheries in the period is estimated at VND134 trillion (US$6.3 billion), up 6.5 per cent from the same period last year, according to the General Statistics Office.

VEC urged to accelerate restructuring efforts

Minister of Transport Dinh La Thang requested the Vietnam Expressway Corporation (VEC) complete its restructuring plans so the process can be concluded in 2015.

Restructuring the VEC’s organisational and operational model is urgent and a prerequisite for sound development in the future, he stressed.

Founded 10 years ago, the VEC was expected to fund seven expressway projects, five of which are currently underway with a total capital of more than 125.5 trillion VND (5.9 billion USD), according to General Director Mai Tuan Anh.

The corporation drafted its restructuring plan in 2012 and one year later the Prime Minister approved capital restructuring for five VEC-invested projects, namely the Cau Gie-Ninh Binh, Noi Bai-Lao Cai, Ho Chi Minh City-Long Thanh-Dau Giay, Ben Luc-Long Thanh and Da Nang-Quang Ngai expressways.

The restructuring process aims to improve the VEC’s operational capacity, business efficiency and competitiveness, Anh said. Together with the maximisation of funds for expressway development, restructuring would help improve the company’s financial capacity and ensure a stable financial structure in future.

According to Nguyen Chien Thang, head of the Ministry of Transport’s Business Management Department, the VEC’s restructuring process has seen initial results, with equitisation being the only way for the highway developer to effectively manage its huge capital.

Tran Van Lam, head of the ministry’s Personnel Organisation Department, said the restructuring plan needed to clarify the opportunities and challenges the corporation would face in the times ahead as well as areas to be reorganised.

Minister Thang also asked the VEC to draw lessons from each project in order to maintain its position as a key investor in transport infrastructure development.

To ensure the restructuring process stays on schedule, the corporation as a whole should be equitised at the same time as its various projects, he said, calling upon the VEC to clarify the proportions of State capital and private capital in its financial plans.

The corporation should focus entirely on the projects already underway, ensuring quality and safety whilst avoiding waste and losses, he added.

Thua Thien-Hue: IPs increase contributions to State budget

Enterprises operating in industrial parks (IPs) in the central province of Thua Thien-Hue have so far this year paid nearly 966 billion VND (46 million USD) to the State coffer, up 5.7 percent from the same period last year.

During the same period, those enterprises posted a combined production value of 6.84 trillion VND (325.7 million USD), up 4.3 percent, and total export value of 283.7 million USD, a year on year increase of 6.9 percent.

Meanwhile, an additional six projects were licensed in local IPs with a total registered capital of 775 billion VND (36.9 million USD), bringing the number of projects operating in the province’s six IPs to 91, worth a combined 18.37 trillion VND (874.8 million USD).

The six IP in Thua Thien Hue have proven their important role in the province’s economy, with two of them – Phu Bai and Phong Dien 2- reporting a 90 percent of occupancy rate.

Earlier, the province granted an investment licence to a 5 million USD foreign-invested project to build infrastructure for Tu Ha industrial park.

Authorities plan to pour over 22 billion VND (1.03 million USD) to build infrastructure at local industrial parks and support construction firms in ground clearance, mine removal, and building waste treatment plants.

Next year, the IPs aim to attract 2.9 trillion VND of investment capital.

Can Tho invites Japanese investment in key projects

Officials of the Mekong Delta city of Can Tho have called for Japanese investors to fund key projects, pledging to provide attractive conditions, during a meeting with business representatives from Japan ’s International Friendship Exchange Council (FEC).

The 12 key projects Can Tho is seeking investment in cover a number of fields, from technology, tourism and logistics to industrial parks and real estate.

Nakagaki Yoshihiko, FEC Vice President and Chairman of the Japan-Vietnam Cultural and Economic Exchange Committee, said the delegation’s visit aimed to explore investment opportunities in the fields of energy, industrial food production, logistics, housing and industrial park infrastructure.

He also expressed his hope for Can Tho to provide the best conditions possible and assist Japanese businesses in fulfilling administrative procedures during project implementation.

At the event, Chairman of the municipal People’s Committee Le Hung Dung committed to implementing concrete preferential policy measures for Japanese firms, including site clearance assistance, property rentals, land leasing and attractive interest rates.

Can Tho’s main exports to Japan include rice, aquacultural products, apparel, leather, handicrafts, and chemicals, according to the city’s Investment, Trade, and Tourism Promotion Centre.

In 2013, the locality earned 155.2 million USD from exports to Japan and imported 29.5 million USD worth of goods from Japan . During the first nine months of this year, exports were valued at 100 million USD and imports at 45 million USD.

Five Japanese businesses are currently operating in Can Tho, including three joint ventures.

Can Tho: Aquacultural exports on the rise

The value of aquacultural exports in the Mekong Delta city of Can Tho is predicted to rise by almost 20 percent this year compared to 2013 due to the sector’s rapid growth.

The city’s seafood export turnover increased steadily over the last three months, totalling 49 million USD in September compared to 38 million USD in June, Vice Chairman of the municipal People’s Committee Truong Quang Hoai Nam said.

The trend is expected to continue in the near future, with a seafood-export business in Can Tho being permitted to export to the Russian market, in line with the city’s strategic plan to expand into new markets.

Can Tho exports goods worth more than 90 million USD every month, with 47 percent being aquacultural products, according to Vice Director of the municipal Department of Industry and Trade Duong Nghia Hiep.

In addition to the traditional EU and US markets, Russia and Japan are considered potential markets for the city’s exporters of aquacultural products.

By September this year, the value of Can Tho’s export turnover totalled 914 million USD, which is expected to increase to 1.3 billion USD by the end of the year.

Source: VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR