200314intellasia Finance Vietnam

finance & business news
20 March 2014
FINANCE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Lower saving rate, depositors prefer long terms
1
Sacombank to be put at disadvantages when merging
with Southern Bank
3
Eximbank to earn great profit on capital withdrawal from Sacombank 4
Sluggish lending attributable to bad debts but not interest rates 4
Foreigners unhappy with meager FOL rise
5
High NPL limits rate reduction's support
6
FX, gold trading via floors illegal in Vietnam: SBV
7
Vietcombank to conform to US tax rule
7
New stimulus package for agriculture discussed
8
Cambodia, Vietnam aim for stronger trade links
9
Vietnam sees Switzerland as major European partner
9
Two-digit export growth expected this year: report
10
Vietnam-EU FTA negotiations due for end of the year completion 11
Small tax debts collected
11
Vietnam ETF Roars as Bad Debt Effort Takes Shape
12
Foreign capital inflows pour back into Vietnam
12
Many giant groups face great debts
14
Lax firms suffer as their brands are duplicated
15
How much is Vinalines worth?
15
Vinalines has new CEO
16
Market heats up as big foreign retail mall exploiters turn up 17
BIZ NEWS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Business Briefs March 20
Stocks up despite petrol price hike
Many listed firms announce to advance 2013 dividend

Hanoi improves competitiveness ranking
Textile exports predicted to leap this year
Textile and garment sector urged to restructure soon
Vietnam's fabric & garment exports up 19.3pct in Jan-Feb'14
Vietnam's coffee sales slow as prices fall
Vietnam imports over 70pct of dairy input
Stable 2014 pepper output predicted
Vietnam focuses on saving, effective energy use
Fuel retailers raise petrol prices
EVN has to spend 70b dong/day on using oil for
electricity generation
Power supply strained by gas pipeline leakage
Power demand surges in south
Quang Ngai looks forward to big-ticket gas-power project
Russian firm says will build nuclear centre in Vietnam
Quang Binh seeks $4b for 40 projects
Vietnam raises pump prices on global hikes
HK group opens new garment factory in Vietnam
US investor joins $4 bil casino project in central Vietnam
Lotte Mart to open four more supermarkets this year
Site clearance delays highway upgrade
Savills Vietnam gets new director
SUZUKAKU builds a new factory in Vinh Phuc
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FINANCE
F I NA N CE
Lower saving rate,

depositors prefer long
terms
20/MAR/2014 INTELLASIA | INFONET.VN
On the first day after the saving rate cap was reduced to 6 percent/year, most new depositors chose medium and long-term deposits and turned away short-term ones.
Right after the State Bank of Vietnam (SBV)'s decision to reduce the deposit interest rate
ceiling for less than six-month term to 6 percent/year, all large and small banks simultaneously announced new interest rate benchmark. Notably, banks reduced the deposit
rates for not only less than six-month terms, but also in fact for medium and long-terms.
At big banks, the lowest recorded interest rate for one month term of 5 percent/year belongs the Joint Stock Commercial Bank for Investment and Development of Vietnam
(Bidv-BID), followed by Vietnam Commercial Bank (Vietcombank-VCB) with 5.5 percent/year, and Vietnam Export Import Commercial JS Bank (Eximbank-EIB) with 5.8 percent/year starting from March 18.
For terms from two to five months, interest rates were listed at 5.5-5.8 percent per year.
Notably, the interest rate reduction was not only given to short terms, but also to long
terms, with a fall of 0.3-0.5 percent. For example, at Bidv, the interest rate for six to 11
month terms fell by 0.5 percentage points, from 7 percent per year to 6.5 percent per year
and it fell to 7 percent per year for 12 month term.
In some other big banks such as Vietcombank, Vietnam Bank for Agriculture and Rural
Development (Agribank), Eximbank, etc. the deposit rate for 12 month term also reduced
to 7.3-7.5 percent/year.
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FINANCE
Vietnam finance & business
20 March 2014
Not only large state-owned banks adjusted down longer term deposit rate, but also
joint stock banks lowered the saving rate for 12-month terms. At Tien Phong Commercial Joint Stock Bank (TPBank), the interest rate for 12-month term fell to 8.95 percent
since March 18 and it is just 7.1 percent per year at Dong A Bank. Or at Petrolimex
Group Joint Stock Bank (PGBank) which used to offer the highest interest rate in the
market also reduced the interest rate to 8.1 percent per year for 12 month term, and 9
percent for 36 month term from March 18.
Explaining the slight reduction of interest rate for long terms by banks, a Fund manager at a Hanoi-based Joint Stock Commercial Bank said, in addition to the capital restructuring when the short-term interest rates fall, the simultaneous reduction in
interest rate for terms of from 12 months onwards is to help banks save and balance
their cost of capital.
It is not surprising that people choose to deposit long-terms instead of short-terms as
before, the director revealed: "currently, only 40 percent of deposits choose short terms
instead of the ratio 70 percent previously and most customers coming today for transactions choose to deposit for terms of from 12 months onwards."
The "shift" to long-term deposits instead of short-term ones has been foreseen by the
leader of the central bank as well as commercial banks before the central bank's interest
rate cut policy came into effect. At his meeting on March 17, deputy Governor Nguyen
Dong Tien also believed that the short-term interest rate will have a direct correlation
to long term thereby people and businesses will benefit from long-term loans. He added, in the current context of the market and inflation, the central bank had considered
impacts before making the decision and forecasted that the influence will not be so big.
Considering that the interest rate ceiling cut by 1 percent is a positive and reasonable
measure of the central bank in the current economic context, Nguyen Duc Huong, permanent vice President of Lien Viet Post Joint Stock Commercial Bank (LienVietPostBank) supposed that money will not be withdrawn from the banks to pour into other
investment channels such as gold or stock because the current reduction in interest rate
is not strong enough to lead to a reduction in capital mobilisation sources but only reduce the short-term deposits, and also increase the medium and long-term ones.
This means the deposit terms shall be restructured, in which medium and long-term
deposits shall "attract" more depositors, said Huong.
Bidv's deputy general director Tran Xuan Hoang also believed that banks have anticipated the scenarios when lowering interest rates following the central bank's policy.
With Bidv's deposit growth in the first two months of the year of 1.2 percent and 1.6
percent in credit growth, the deputy director totally believed that people will still
choose savings as a safe channel to keep their money though interest rate reduction.
He stressed that "To say whether this interest rate reduction affects the bank's capital
mobilisation, I think it surely does, but it is not too much. Capital shall be still going
into the bank and enough to supply to the credit division".
Assoc. Pro. Dr Tran Hoang Ngan, vice Rector of Economics, University HCM City
said: if the target of restraining inflation becomes clearer, interest rates can be maintained at 5-6 percent, enabling to reduce the lending interest rates and facilitate businesses' capital access at banks to carry out their projects whereby supporting the
economic growth.
In addition, people who have idle money may look at other investment channels instead of putting their money into savings, such as investing in business and production or securities if they have knowledge of this field. Thus, capital will flow into
business and go into areas where capital is currently needed.
In particular, total social investment capital in the last year has not been reached with
low growth. The reduction in interest rate shall promote investment and support job
creation and economic development.
What is important now is that we have to keep interest rate low and stable for a long
run. We have a clear ability to control inflation, and investors are willing to have medium and long loans to invest in machinery, equipment, product innovation and productivity improvement.
Intellasia
20 March 2014 2 / 31
FINANCE
20 March 2014
Declined interest rate also helps reduce the cost of using capital in businesses. The lowered interest shall help interest rates in Vietnam to be compatible to the current rates,
regional countries such as Thailand, Singapore, and Malaysia whose loan interest rate
ranges around 5-6 percent/year. This will help Vietnamese enterprises to compete fairly with foreign ones and enhance their competitive advantages in the international arena.
Sacombank to be put
at disadvantages when
merging with
Southern Bank
Intellasia
20/MAR/2014 INTELLASIA | DAN TRI
Vietnam is the best stock market in Asia from the beginning of 2014 to date (increase
level of 19 percent to date). In such brisk market, share of Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank - coded STB) did not post the best performance.
As per the analysis report sent to investors, ACB Securities Company (ACBS) reported
that STB has been one of the best shares of the banking industry in recent years. Capitalisation value increased from the third position to the first position in the group of
private banking shares ($673 million in October 2011 to $1.1 billion at current time).
Compared to other bank shares, basic indexes of STB were most remarkable. Specifically, return on equity (ROE) is 15 percent compared to ROE a number of Eximbank
(coded EIB) and ACB and has exceeded two numbers of Vietcombank (coded VCB)
and VietinBank (coded CTG). The return on assets (ROA) is 1.4 percent compared to
ROA (0.4 to 0.5 percent) of EIB and ACB and about 1 percent of VCB and CTG.
Moreover, price of STB shares seems quite cheap compared to PE trailing and is 50 percent lower than the unweighted average level of VCB, EIB and ACB. Of course, the actual data of the whole industry are still a question mark when bad debts are not
recognised completely, but these figures partially reflect basic things of shares.
The chart of STB shares showed suspicious movements. Price of STB was almost flat
in the second half of 2013 and increased 20 percent in January 2014 before rumour of
paying great dividend in cash. Yet, the bank announced to pay dividend in shares later
and share price was not adjusted. ACBS made the question: "May Vietnamese investor
prefers paying dividend in shares?"
The current bigger problem is merger plan with SouthernBank. Tram Be is a large
shareholder of Sacombank with ownership rate of nearly 7 percent and his family
owned 21 percent of stake in this bank. Thus, minority shareholders of Sacombank
have reasons to worry about the appropriate rate of share swap.
Actually, with 21 percent owned family members in Southern Bank (the ownership
rate can be much larger when taking into account other relationships), Tram Be must
consider this rate towards bringing benefits to Southern Bank, ACBC commented.
It will not be easy to quantify current difficulties, but expert Mekong Man of ACBS
said that it will be bad. Outstanding loans of Southern Bank are equal to 40 percent of
Sacombank but Southern Bank's chartered capital is equal to 32 percent of Sacombank.
Net interest margin (NIM) is only a fraction of Sacombank.
In addition, Phuong Nam is a net borrower; while Sacombank is a net lender in the interbank market (net borrowing rate of SouthernBank can be 2.5 trillion dong while net
lending rate of Sacombank is estimated at 2 trillion dong. Mekong Man forecasted that
SouthernBank's bad debt rate can be many times higher than that of Sacombank according to the calculation of Moody's.
In summary, the swap rate must be reasonable, minority shareholders of Sacombank
will suffer loss (if no), ACBS report noted.
According to ACBS, Vietnam Asset Management Company (VAMC) plays a very important role in this deal: How much VAMC will buy the bad debts and how much
these bad debt costs. If the swap rate is calculated based on the value of current book
value (one STB share will swap 1.3 share of SouthernBank) will be a great big disadvantage for shareholders of Sacombank unless VAMC accepts to acquire most bad
debts of SouthernBank.
20 March 2014 3 / 31
FINANCE
Eximbank to earn
great profit on capital
withdrawal from
Sacombank
Sluggish lending
attributable to bad
debts but not interest
rates
Intellasia
20 March 2014
According to the new investor support bulletin that was announced by ACB Securities
Co (coded ACBS), the company said that Vietnam Export Import Commercial Joint
Stock Bank (Eximbank) will most likely to withdraw capital from Sai Gon Thuong Tin
Commercial Joint Stock Bank (Sacombank). Information was given based on a working
day of ACBS with Sacombank.
Information comes ahead of an annual shareholders' meeting 2014 of Sacombank. The
meeting is expected to attract attention when it will be submitted to shareholders for
merger with Southern Commercial Joint Stock Bank (SouthernBank) and dismissal of
members of director board. In a talk with Fica.vn. chair of Sacombank director board
Pham Huu Phu said that he will return to Eximbank.
In January 2013, Eximbank and Sacombank signed a cooperation agreement to
strengthen competitiveness. The agreement is effective for five years. Notably, the two
sides will research, consider and submit to the shareholders' meeting and state competent agencies for merger plan in three to five years later.
At current market value, Eximbank will earn great profit from an investment after over
two years of holding stake when it withdraws capital from Sacombank.
On January 9 2012, Eximbank bought nearly 103.26 million STB shares from ANZ Vietnam at the price of 16,000 dong per share. Total investment value is 1.652 trillion
dong.
In June 2013, Sacombank paid first round dividend in cash at the rate of 14 percent and
in the share at the rate of 6 percent. After payment stage, Eximbank received 145 billion
dong and nearly 6.2 million shares. Eximbank increased the number of shares to 109.46
million units, equivalent to holing rate of nearly 10 percent.
In December 2013, Sacombank paid dividend in cash at the rate of 8 percent. Thereby,
Eximbank received barely 88 billion dong of dividend.
Closing trading session of March 17 2014, each STB share was valued at 19,900 dong.
Assuming that Eximbank sells STB shares at this price level, it will gain 2.178 trillion
dong. Including dividend paid in cash, Eximbank will earn about 46 percent of the
profit from its investment in Sacombank after two years of holing.
If selling Sacombank shares, Eximbank will recognise over 500 billion dong of profit in
the financial statement. Eximbank incurred 222 billion dong of loss in Q4/2013 and
gained 658 billion dong of profit before tax.
In case of Eximbank's capital withdrawal, two relevant organisations still hold large
volume of shares.
Specifically, Exim Saigon Investment Joint Stock Bank holds over 500 million shares
(including dividend of 6 percent) and Saigon-Asia Financial Investment Joint Stock Co
- an organisation related to the chair of Sacombank director board Pham Huu Phu
holds over 28.4 million STB shares.
Since March 18 2014, deposit interest rate ceiling has decreased from 1.2 percent per
year to 1 percent per year for deposits of non term and under one month. The maximum interest rate has decreased from 6 percent per year compared to current levels of
7 percent per year for deposits of one month and six months.
Refinancing interest rates have decreased to 6.5 percent per year compared to levels of
7 percent per year; rediscount interest rate has declined from 5 percent to 4.5 percent
per year. The overnight lending interest rate in interbank electronic payment and interest rate of loans to offset capital shortages in compensation payment has lowered
from 8 percent per year to 7.5 percent per year. Besides, USD deposit interest rate has
reduced to 1 percent per year instead of the current level of 1.25 percent per year.
Deposit interest rates tend to decrease slightly, which will be a favourable condition to
lower lending interest rate level. This information is expected to affect the stock market
in the week of March 17 to March 21 2014.
According to Vietcombank Securities Joint Stock Co (coded VCBS), there is not much
motivation for banks to further decrease lending interest rates. Limited output of
20 March 2014 4 / 31
FINANCE
20 March 2014
banks is mainly due to bad debts, health and capital absorption capacity of enterprises
not unreasonable interest rates.
According to own information of VCBS, most enterprises could easily access bank capital in the past time. The main factor to promote credit growth of banks is loans with
preferential interest rate of 7 percent to 8 percent. Accordingly, there is a little geographical balance that can be further decline from this interest rate level.
Thus, if bad debt settlement does not have obvious changes, decrease in lending interest rates will mainly come from old loans.
In stock market perspective, a strong point increase of the stock market and significant
improvement of liquidity in the first two months of 2014 have contribution of cheap
price flow in the context of maintaining economic stability and gaining better recovery
potential.
Thus, a further decrease in deposit interest rates is a quite positive information and the
stock market is expected to have good attraction and lure more money flow. This information can be a hick to help the market pass psychological resistance at 600 points
this week.
VCBS said, to pass level of 600 points, blue-chips will be most likely to lead the market's increase momentum. Moreover, it is likely that industry-leading enterprises will
continue to offer positive information in the shareholders' meeting and announcement
of business results of Q1/2014 in coming time.
Accordingly, investors can consider disbursing large capitalisation stocks that have a
good foundation and are expected to have strong support information such as high
dividend payment, optimistic business results of Q1/2014, good projects, etc., VCBS
recommended.
Foreigners unhappy
with meager FOL rise
Intellasia
20/MAR/2014 INTELLASIA | SAIGON TIMES DAILY
Strategic foreign investors on March 18 showed disapproval of a scant increase of the

foreign ownership limit (FOL) in local banks.
The central bank's Decree 01, which took effect late last month, caps the share ownership percentage of a foreign strategic investor at less than 20 percent of chartered capital of a Vietnamese credit institution, five percentage points higher than that in the
previous Decree 69/2007/ND-CP.
However, the total percentage of shares owned by all foreign investors in a domestic
bank shall not exceed 30 percent, unchanged from the current regulation.
In special cases, to restructure weak banking institutions, the prime minister may decide whether those ratios could exceed the limits on a case-by-case basis.
Speaking at a seminar on business environment improvement in Hanoi on March 18,
Nicolas Audier from the European Chamber of Commerce in Vietnam (EuroCham),
said the new ratio discouraged most foreign investors who are interested in investing
in local banks.
The decree contains no significant improvements as total foreign ownership at a bank
remains at 30 percent while the 20 percent limit for strategic investors has been in place
already.
Audier mentioned Asia Commercial Bank had been controlled by a group of shareholders while Standard Chartered Bank and the International Finance Corporation
(IFC), which owned shares in the local lender, did not know about it. As foreign partners did not have enough power, they could not do anything positive for banks with
their involvement.
Vietnam should weigh a higher FOL, especially at a time when the banking industry
is facing a lot of problems such as huge bad debt, complicated cross ownership and
poor governance. Without the involvement of strategic foreign partners, merging
weakened banks could not help settle bad debt, Audier said.
Remco Gaanderse from ING Bank said the government should have raised the ownership limit applicable to foreign strategic partners to 50-51 percent, instead of 20 percent.
If the 20 percent limit is maintained, Vietnamese banks still manage themselves and
20 March 2014 5 / 31
FINANCE
20 March 2014
they cannot approach modern governance models of international banks, he said.

Mac Quang Huy, managing director of Maritime Bank Securities Company, said if the
FOL was revised up five or 10 years later, the goal of attracting strategic foreign investors to the nation to join the bid to solve bad debt would turn meaningless. "We should
increase the FOL right now," he stressed.
However, representatives of government agencies expressed concerns over the suggestions.
Nguyen Manh Hung at the banking strategy institute under the central bank said foreigners now hold around 6 percent of total chartered capital of the banking system.
Only some lenders such as ABBank and VietinBank have seen the strategic foreign
room full. Therefore, foreigners actually have yet to make strong investments in Vietnam.
However, foreigners strongly disbursed money into the local stock market in 2007 and
2008 and then withdrew it. So, it is necessary to stay cautious, Hung added.
http://english.thesaigontimes.vn/Home/business/financial-markets/33600/Foreignersunhappy-with-meager-FOL-rise.html
High NPL limits rate

reduction's support
Intellasia
20/MAR/2014 INTELLASIA | VIR
The State Bank of Vietnam (SBV) yesterday announced to cut deposit rates and refinancing rate in order to spur the credit growth, but this action is likely to have little
effect. Eugenia Fabon Victorino, economist of ANZ Banking in Asia Pacific, discusses
with VIR's Ngoc Linh.
According to the SBV, the credit growth declined 1.66 per cent in the first two months
this year. In your view, what do you see are the reasons for the decline?
In our view, the decline in outstanding credit is due to banks unwinding short term
loans that were offered in the last two months of 2013. We believe a significant portion
of the loan growth in November and December 2013 had been offered in response to
the regulations set by the SBV at the latter part of the year to achieve full-year credit
growth target. Without these temporary incentives which expired at the end of 2013,
we believe the credit growth target of 12 per cent would not have been met. Hence, the
contraction in outstanding loans in the first two months of 2014 reflects what happened in end-2013.
The SBV yesterday cut rates to spur credit growth. In your opinion, how is this action
effective?
We see the latest reduction in interest rates as having a limited effect on credit growth.
Since the start of 2014, banks have initiated a series of deposit rate cuts, while loan rates
have remained broadly stable since November 2013. We reiterate our view that the
sluggish credit growth is more a reflection of tight credit supply due to high nonperforming loans.
How will the rate reduction affect the fund mobilisation of banking sector?
We expect the recent rate reduction to have a limited effect on fund mobilisation in the
banking sector. The SBV has been on an easing bias since 2012. Despite cutting various
interest rates by more than 850 basis points, credit growth remains soft reflecting lackluster domestic demand.
We believe cutting deposit rates would further drive local depositors into Vietnam's
stock market as deposit accountholders search for higher yield. However, we still expect credit growth to remain muted until much more is done in solving the structural
problem of high non performing loans.
Since last year, Vietnamese government has taken some actions to deal with bad debts
like the establishment of VAMC. But you mentioned the rate reduction would provide
limited support to credit growth and the structural problem of high non-performing
loans continued to limit domestic demand keeping credit growth soft. How effective
do you see government's recent actions to the economy?
We see the establishment of the VAMC as positive in improving sentiment in the banking sector. However, in our view, the capital allotted to the VAMC is not sufficient to
fully solve the structural problem of bad debts in the system. We believe the imple20 March 2014 6 / 31
FINANCE
20 March 2014
mentation of Circular No.2 without further delays should shed light on the true level
of non-performing loans in the system. Unless, there is more transparency on the matter, we believe banks will continue to ration credit, thereby denying credit to certain
sectors of the economy.
To further spur the credit growth, what should SBV do in upcoming time?
To spur credit growth, we believe more transparency on the level of nonperforming
loans is required. To this end, we are constructive in our view on Circular No.2 which
should standardise the classification of debt in banks' balance sheets. However, we believe the announced delay of at least 6 months with regard to the classification of bad
debts is a step back in policy.
In the meantime, we think the SBV should promote credit growth to small and medium enterprises and the agricultural sector, while maintaining credit standards. In
2013, it was reported that most of the credit was still focused on large entities and stateowned enterprises, depriving small and medium enterprises of much-needed capital.
http://www.vir.com.vn/news/en/money/high-npl-limits-rate-reductions-support.html
FX, gold trading via

floors illegal in
Vietnam: SBV
Vietcombank to
conform to US tax rule
Intellasia
20/MAR/2014 INTELLASIA | TUOITRENEWS
Forex trading conducted through accounts is a form of margin trading in which the net
worth of the accounts are constantly re-evaluated according to the fluctuations of currency exchange rates or changes in the prices of commodities and raw materials, including gold, said Nguyen Quang Huy, director of the SBV's Foreign Exchange
Management Department at a press conference in Hanoi.
"Forex trading via exchange floors is not a kind of trading activity intended to satisfy
the foreign exchange needs of a nation, but it is purely a speculation," he said.
According to Huy, local organisations and individuals can only carry out foreign exchange transactions in accordance with SBV rules with an authorised credit institution.
Other exchange activities must be allowed by the prime minister and licensed by the
SBV, Huy said.
Despite never being treated as a legal trading activity, a number of local organisations
and individuals have engaged in this kind of trading in Vietnam, he added.
"In addition to legal risks in which rule breakers can be fined up to VND50-100 million,
organisations and individuals also face the risk of paying a transaction fee to trading
floor owners without knowing that they can intervene in the transaction process in
ways that are detrimental the traders," Tuan warned.
"In particular, the forex market is the most fluctuating and unpredictable among financial markets," he remarked. "As investors in Vietnam still have limited access to information, the risk of losses is very high," he said.
This is the first time the SBV has stated its views on forex trading after announcing a
ban on gold trading via accounts, which took effective in March 2010.
However, the SBV found that many underground exchange floors still operate widely
in Vietnam.
In HCM City alone, dozens of companies are now participating in those activities.
http://tuoitrenews.vn/business/18443/fx-gold-trading-via-floors-illegal-in-vietnamsbv
20/MAR/2014 INTELLASIA | VNS
Vietcombank plans to be the first Vietnamese bank to conform to the US' Foreign Account Tax Compliance Act (FATCA).
The registration procedures are expected to be completed before April 25.
The bank announced this in a news report earlier this month, as it selected the consulting firm KPMG Vietnam to advise it on the issue.
FATCA is a set of new tax laws which will be effective from July 1, 2014. The US government enacted the law in 2010 to prevent and detect tax evasion by US taxpayers
who are hiding income and assets overseas. The rules affect almost every financial institution in the world, including those in Vietnam.
20 March 2014 7 / 31
FINANCE
20 March 2014
Vietcombank deputy general director Nguyen Danh Luong said that, with this move,
the bank expresses the determination to comply with not only domestic laws but also
international conventions.
The bank also aims to increase its prestige and competitiveness in international transactions, as it plans to expand agent networks worldwide.
According to the bank, obeying FATCA means that financial institutions will save significant business costs, since the Act sets a tax rate of 30 per cent for those which do not
conform. The tax will be imposed on revenues originating from the US, including interests, dividends and incomes from the liquidation of profitable assets.
http://bizhub.vn/banking/4981/vietcombank-to-conform-to-us-tax-rule.html
New stimulus package

for agriculture
discussed
Intellasia
20/MAR/2014 INTELLASIA | VNA
The State Bank of Vietnam and Ministry of Agriculture and Rural Development have
held discussions on a new stimulus package to boost farming production chains and
apply technology in agriculture.
As of now, details about the value of the package, incentives, and lending conditions
are yet to be revealed. Major stakeholders are seeking lending mechanisms that can reassure banks to offer loans to farmers and use the government's support policy.
Although presently the State Bank encourages credit institutions to offer loans to farmers, they are hesitant because of high risk and the borrowers usually do not have collateral.
In a cabinet meeting last month, the government requested the State Bank to work with
the Ministries of Agriculture and Science and Technology to outline a credit programme for the agriculture sector that provides preferential loans for models that promote the linkage of farming production chains, scientific and technological
application, and the linkage between production and export.
Director of State Bank's Credit Department Nguyen Viet Manh stated that time and detailed regulations were needed to launch a new stimulus package for agriculture.
"To ensure the effectiveness of the package, they have to review planning on the subfarming sectors, production areas, and the linkage of input and output," he noted, adding that comprehensive examination can lead to sustainable financing or even banks
will be able to offer loans to borrowers without the need for mortgage.
The package will also target large-scale production models and land consolidation.
Vice director of State Bank's branch in HCM City, Nguyen Hoang Minh, claimed that
this year, credit for farming and rural areas will focus on projects that applied technology or are related to farming product processing in order to improve the quality and
competitiveness of the products.
Chair of Vietnam Farmers' Association Nguyen Duy Luong remarked that although
since 2010, the government has passed a decision on credit for agriculture, rural areas,
and farmers, the crediting was still limited.
Beneficiaries somehow failed to show interest in such preferential loans due to limited
access.
For instance, banks will not offer another loan if the borrowers did not pay the previous ones, Luong reported, noting that the requirement was too strict.
Former Governor of State Bank Cao Sy Kiem stated that a lending mechanism based
on production chain was new but reasonable, as it can meet the capital demands of
farmers and farming enterprises and will help the banks to recover the issued loans.
This will help to avoid scattered loans, he remarked.
This year, loans for agriculture are expected to be worth 35-37 trillion VND (1.67 billion
- 1.76 billion USD), about 70-85 percent higher than that of last year. Currently, the interest rate for agriculture loans are less than nine percent per year and the State Bank
is encouraging banks to lower the rate.
http://en.vietnamplus.vn/Home/New-stimulus-package-for-agriculture-discussed/
20143/47703.vnplus
20 March 2014 8 / 31
FINANCE
Cambodia, Vietnam
aim for stronger trade
links
20/MAR/2014 INTELLASIA | VOV
Vietnam sees
Switzerland as major
European partner
20/MAR/2014 INTELLASIA | TUOITRENEWS
Intellasia
20 March 2014
The Association of Vietnamese Investors in Cambodia (AVIC) aims to lift its foreign
direct investment (FDI) in Vietnam to $4-4.2 billion in 2015.
The figure was released at a meeting hosted by the AVIC in Phnom Penh on March 19
to seek measures for trade promotion and business expansion of Vietnamese firms in
the Cambodian market.
The Association is set to achieve a two-way trade turnover of $5 billion next year, and
drive up the number of Vietnamese visitors to Cambodia by 30 percent annually to 1.6
million in 2015.
Many local businesses showed their keen interest in the fields of agriculture, energy,
aviation, finance, banking, health care, and infrastructure development.
The AVIC hoped to boost Vietnam-Cambodia border trade and promote the exchange
of goods favoured by Vietnam such as fertilisers, petrol, and energy.
Vietnamese ambassador Ngo Anh Dung spoke highly of Vietnamese businesses' investment contributions to delivering economic benefits to Cambodian people as well
as strengthening traditional friendship, solidarity and cooperation between the two
countries.
He asked the AVIC to enhance its role in creating a close link among local investors,
and encourage its members to make further contributions to social welfare and community development in Cambodia.
By the end of 2013, the total Vietnamese investment in Cambodia reached over $3 billion with 128 projects, ranking fifth among the largest foreign investors in the country.
Vietnam also became Cambodia's third largest trade partner among more than 140
countries and territories trading with Cambodia.
Last year, Vietnamese firms raised $5 million for Cambodia's social welfare activities.
http://english.vov.vn/Economy/Cambodia-Vietnam-aim-for-stronger-trade-links/
274458.vov
The visit was made at the invitation of President of the Swiss National Council (Lower
House) Ruedi Lustenberger.
After an official welcome ceremony for NA Chair Hung at the headquarters of the
Swiss parliament in Berne, the Vietnamese lawmaker held talks with his host.
Chair Hung expressed his pleasure at the development of the two countries' friendship
and multifaceted cooperation over the past years.
He hopes that Switzerland will continue encouraging its businesses to invest in Vietnam, especially in finance, banking, insurance, high technology, chemicals and pharmaceuticals, the Vietnamese official added.
The chair also thanked the Swiss parliament and government for their support and
provision of official development assistance (ODA) to Vietnam.
He told his host that Switzerland's ODA capital has been used effectively in Vietnam,
contributing to the country's poverty reduction programme, rural development, environmental protection, and socio-economic development.
He also invited President Ruedi Lustenberger to visit Vietnam and attend the 132nd
Inter-Parliamentary Union Assembly (IPU-132) to be held in the country in March
2015.
Meanwhile, President Ruedi Lustenberger highly valued the Vietnamese National Assembly's adoption of a new constitution, describing it as an important milestone in the
country's legislative work.
He also agreed that the two countries will further promote their bilateral cooperation
in all areas, saying that the Swiss parliament, with its experience, is ready to assist Vietnam in implementing the constitution.
In order to develop the Vietnam-Switzerland comprehensive cooperation, the two
countries should maintain the exchange of all-level delegations, especially friendship
parliamentarian groups, and promote people-to-people exchanges, the two leaders
said.
20 March 2014 9 / 31
FINANCE
Two-digit export
growth expected this
year: report
Intellasia
20 March 2014
A HSBC report released yesterday anticipates that Vietnam's merchandise exports will
grow at around 12 per cent annually between 2014-2016, although last year's figure
was 15.4 per cent in nominal US dollar terms.
The HSBC Global Connections Report completed last December covered 23 markets
with a sample of 5,550 exporters, importers and traders from small and mid-market
enterprises on trade volume, buyer and supplier risks, and the need for trade finance,
among others.
It gauges sentiment and expectations on trade activity and business growth over the
next six months.
Of the Vietnamese businesses surveyed, 70 per cent see Asia as the most promising region for trade "over the next six months" (2014's H1). Europe was cited by 14 per cent
of respondents, reflecting the return to growth in the Eurozone; and 10 per cent selected North America.
Almost 90 per cent of businesses surveyed trade elsewhere within Asia. Around 45 per
cent trade with Europe and nearly 20 per cent with the Americas.
Vietnam's trading reach is becoming more international, with 10 per cent of businesses
reporting trade with the Middle East and/or Latin America compared with less than 5
per cent when the survey was first conducted in 2009.
The currency of choice for trade is predominantly the US dollar, identified by almost
80 per cent of respondents. But currency volatility is a concern for almost 40 per cent
of traders, and half of respondents reported that trade was negatively affected by weak
product demand.
The report says the economic growth rate is set to pick up in the medium term, helped
by a strong improvement in foreign direct investment. Lower inflation and credit constraints will support domestic activity.
Rising incomes across emerging markets will help to drive strong trade flows from Vietnam to these markets.
China will replace the US as Vietnam's largest export destination by 2030, while Malaysia will move from fifth place in 2012 to third place by 2030.
The Asean Free Trade Area (ACFTA) will pay dividends, helping exports to Indonesia
and Malaysia to grow around 15 per cent a year until 2030.
Clothing and apparel will still be Vietnam's biggest export sector in 2030, reflecting
sustained wage competitiveness, but exports of ICT equipment are forecast to increase
by 10 per cent a year until 2030, by which time it will have become the second largest
export sector.
China and Korea will still be Vietnam's largest import partners in 2030.
Imports from India are forecast to rise rapidly, growing almost 20 per cent a year, making India its third largest import partner by 2030.
Industrial machinery is expected to account for more than 25 per cent of the growth in
goods imports, as Vietnam develops its infrastructure needs.
Focus on technology
In 2013 almost 20 per cent of Vietnam's exports were high-tech goods, up from around
5 per cent ten years before.
Vietnam imports slightly more high-tech goods than it exports; some are final consumer products, but other high-tech imports are intermediate inputs into the ICT production process.
Around a third of Vietnam's population now lives in cities. The rapid pace of urbanisation should provide an increasingly skilled workforce to help the country develop
its foothold in global ICT. However, this will depend on increasing spending on R&D.
http://vietnamnews.vn/economy/252564/two-digit-export-growth-expected-thisyear-report.html
20 March 2014 10 / 31
FINANCE
Vietnam-EU FTA
negotiations due for
end of the year
completion
Small tax debts

collected
Intellasia
20 March 2014
Vietnam and the European Free Trade Association (EFTA) are in Free Trade Agreement (FTA) negotiations and are expected to complete them by the end of this year.
This information was released during talks between Vietnamese minister of Trade and
Industry Vu Huy Hoang and his Norwegian counterpart Monica Mland in Hanoi on
March 19, as part of the Norwegian Crown Prince Haakon Magnus's official visit to Vietnam from March 18-21 at the invitation of Vietnamese State vice President Nguyen
Thi Doan.
The two ministers agreed that the FTA between Vietnam and the EFTA (comprising
Iceland, Liechtenstein, Norway, and Switzerland) will boost bilateral trade ties and
create a legal framework for investors from both sides.
Minister Hoang thanked Norway for its continued support and called for relevant parties to speed up FTA negotiations and boost cooperation in hydro-electricity, navigation aquaculture, and support industries.
In response, the Norwegian guest pledged his determination to expedite FTA negotiations between Vietnam and the EFTA, with a view to taking full advantage of trade
liberalisation and fostering trade links.
The two sides expressed hope that Vietnam-Norway trade and investment will continue to grow, especially post signing of the FTA.
They also reached consensus on exchange visits to promote mutual understanding
and offer further cooperation opportunities in the future.
A round-table discussion is due to be held among senior officials regarding the FTA
between Vietnam and this bloc.
http://www.dtinews.vn/en/news/018/33879/-vietnam-eu-fta-negotiations-due-for-end
of the year-compeletion-.html
Despite efforts by customs officers, the amount of tax arrears collected is tiny compared to the total, with more debts categorised as irrecoverable now from being
termed recoverable.
According to the latest report of the HCM City Customs Department, as of February
28 the total tax debts that must be recovered in the city amounted to VND1.65 trillion
and are all overdue debts. The amount categorised as recoverable accounts for
VND719 billion while VND904 billion is seen as irrecoverable.
Compared to December 31, 2013, recoverable debts declined while others increased
sharply.
However, only VND25.5 billion was collected among the debts incurred between July
1, 2013 and February 28, 2014, equivalent to 2.62 percent of the target set by the general
Department of Customs.
The HCM City Customs Department admits that such an amount is small and accounts for only 1.6 percent of the total tax arrears (VND1.572 trillion). Meanwhile, with
debts incurred on January 1-June 30, 2013, VND4.316 trillion was collected.
A leader of the department told the Daily that it could be seen that debts were moving
around, reflected by the dropping recoverable debts and the increasing amount of potentially unrecoverable debts.
It is because recoverable debts if not being collected will become potentially unrecoverable debts, which will affect revenues for the State budget.
According to the department, HCM City's import turnover reached $5.3 billion in the
year's first two months, up $270 million from last year's same period. Meanwhile, the
export turnover rose by $587 million to $5.48 billion.
The amount of budget collected from export-export business in the period was
VND12.85 trillion, rising by 39 percent and equivalent to 17 percent of the target.
http://english.thesaigontimes.vn/Home/business/vietnam-economy/33604/Small-taxdebts-collected.html
20 March 2014 11 / 31
FINANCE
Vietnam ETF Roars as

Bad Debt Effort Takes
Shape
Foreign capital
inflows pour back into
Vietnam
Intellasia
20 March 2014
20/MAR/2014 INTELLASIA | ETFTRENDS
The Market Vectors Vietnam ETF (NYSEArca: VNM) is not moving much Wednesday,
but the lone Vietnam ETF resides just 4.7 percent below its 52-week high.
A return to that high and additional gains are not out of the question for the $541.9 million VNM. More than 10 percent of VNM's current assets under management tally has
come into the ETF this year and more could be on the way as the Vietnamese policymakers and central bankers continue enacting plans that make the frontier market an
attractive destination for foreign capital. [Blue Chips Lift Vietnam ETF]
State Bank of Vietnam Governor Nguyen Van Binh told Bloomberg the central bank is
urgently trying to enact legislation "for a government-backed asset management company, lenders and investors to buy and sell bad-debt assets and collateral at banks."
The legislation is crucial because although VNM has tried higher on an annual basis
over the past two years, the ETF tumbled in the second quarters of 2012 and 2013 due
to fears about the fragility of Vietnam's banking system, which has been riddled with
bad loans and toxic debt. VNM allocates 37 percent of its weight to the financial services sector, the ETF's largest sector allocation. [Vietnam ETF Rallies on Higher Foreign
Ownership Limits]
"Moody's Investors Service estimated bad debt at Vietnamese banks comprised at least
15 percent of total assets in a note last month," Bloomberg reported. The Vietnamese
Asset Management Company, that country's spin on TARP, has purchased almost $2
billion in bad loans and debt since the end of 2013. In the past 90 days, VNM has
surged 20.1 percent, easily outpacing major emerging and frontier markets benchmarks in the process.
On Monday, Vietnam's benchmark VN Index touched a new 52-week high Monday,
helped by news of VNM buying some new securities to add to its lineup. VNM is adding food producer Masan Group and PetroVietnam Transportation along with real estate firms Vingroup and HAGL, Reuters reported.
Market Vectors Vietnam ETF
http://www.etftrends.com/2014/03/vietnam-etf-roars-as-bad-debt-effort-takes-shape/
20/MAR/2014 INTELLASIA | VIETNAMNET
Investors ahoy!
Bridge Capital and other five institutions have just spent a combined almost $23.7 million acquiring 25.5 million shares of the bourse-listed housing developer Nam Long
Group (NLG) through an additional offering.
This is to some extent a happy end to a story that started in October 2012, when they
met each other at an international investment conference co-organised by Viet Capital
Bank and Viet Capital Securities Co. (VCSC).
Until that day, Nam Long did not list yet. deputy director Nguyen Vinh Tran joined
Vietnam Access Day 2012 with a presentation on opportunities to invest in his firm in
the hope of finding suitable investors for a placement. Fortunately, his dream has now
become a reality.
Speaking at a ceremony held two weeks ago to mark the admission of the new shareholders, Nam Long chair Nguyen Xuan Quang said: "It's great that we've found partners who understand and want to work in concert, especially in a situation where the
real estate market is still in a tough time."
Bridge Capital is happy too. The fund entered Vietnam in 2008 but it has been able to
make three investment deals only to date, with Nam Long being the latest.
The organisers might be totally unaware of such outcome, but that was what they
hoped to see after the Vietnam Access Day 2012 event.
Encouraged by sharpening enthusiasm among foreign investors for getting into Vietnam, Viet Capital founders want to make Vietnam Access Day a periodic two-year
event.
Vietnam Access Day 2014 will provide investors with a complete panorama of the local
economy as well as detailed information about specific sectors of interest. Business
leaders and think-tanks will converge to give presentations and host panel-led de20 March 2014 12 / 31
FINANCE
20 March 2014
bates.
They will discuss a host of issues, including economic outlook, changes in consumer
trends, risks to the banking system, and derivatives and new products for the stock
market.
The organisers hope to see 200 global investors at the event, where some 38 leading Vietnamese firms will be able to promote investment opportunities.
Vietnam Access Day 2012 gathered 210 local and global investors, 60 representatives
from leading Vietnamese businesses and 34 guest speakers, making it the largest event
of its kind about Vietnam.
Come on in!
Upon the financial crash and subsequent recession in the West, confidence evaporated
and capital fled for adventures in emerging markets. But since developed economies
showed signs of turnround with the US Federal Reserve tapering its QE programme,
funds have been retreating to the rich world.
The capital outflows from emerging markets would end shortly. History data tracked
by a securities firm have shown that it takes 40-50 weeks for such a flight to cease. If
history repeats itself, this means funds will stop fleeing emerging markets from April
or May, and even reverse their trend towards Asia.
Vietnam has emerged as a more attractive market as regional peers such as Thailand
is facing political instability, Indonesia will host a presidential election and possible
subsequent changes, while the Philippines is characterised by relatively expensive
stocks. Even China's official non-manufacturing PMI is worsening.
The local bourse generated a return of roughly 22 per cent last year and a 16.23 per cent
plus in the first two months of this year, an adequate reward for the risks foreign investors are taking. Moreover, Vietnam's political and economic stability alongside
stronger efforts to reform the banking system, state-owned enterprises and the economy as a whole are beckoning investors.
Many offshore institutional investors have expressed an interest in Vinamilk, REE,
DHG Pharma, FPT and Binh Minh Plastics, but few opportunities exist for further investment. So, the long-awaited decision to lift foreign ownership cap to 60 per cent
from the present 49 per cent should attract certain foreign capital inflows once approved, although stock prices have already taken the information into account.
So far this year, net buys by foreign investors reached $133 million, equivalent to as
much as 40 per cent of last whole year. While exchange-traded funds (ETFs) still make
up a significant portion of foreign capital inflows, many other funds are much more
active now. One foreign fund jumped in right after the country's traditional Tet holidays and two others are mulling an entry. Meanwhile, some existing leading funds
have successfully raised new capital, thus indicating that a significant amount of money is pouring in.
"Foreign investors show more and more interest in Vietnam's market," research head
with a securities firm said. "Specifically our institutional research team has received
many offshore institutional investor visits to Vietnam in the year to date. This year, foreign investors tend to diversify their assets to more stable and potential markets and
we think Vietnam is one of the markets they are keen on. When they visited Vietnam,
they showed more interest in such sectors as consumer, oil and gas and affordable residential real estate which are closely tied to Vietnam's growth."
A picture is worth a thousand words, goes a popular saying. Vietnam Access Day 2014
will provide investors site visits to Dat Xanh Group's housing projects, Vinamilk's factory and HCM City Infrastructure Investment Co.'s Thu Duc water plant. The overall
picture should be rosy enough and foreign investors might view Vietnam a destination, rather than just a stopover.
http://english.vietnamnet.vn/fms/business/97826/foreign-capital-inflows-pour-backinto-vietnam.html
Intellasia
20 March 2014 13 / 31
FINANCE
Many giant groups

face great debts
Lax firms suffer as

their brands are
duplicated
Intellasia
20 March 2014
20/MAR/2014 INTELLASIA | INFONET
Besides fame due to huge profit each year, owners of groups are also the first and the
second largest debtors at banks for their loans worth up to several trillion dong.
HPG's liabilities are higher than equity
In 2013, revenue from sales and service supply of Hoa Phat Group Joint Stock Co (coded HPG) reached over 19.2 trillion dong, increasing 13 percent compared to that of
2012 and exceeding the plan by 4 percent. This group announced 1.954 trillion dong of
net profit, two times higher than levels of 2012 and exceeding set target by 63 percent
(1.2 trillion dong).
As of December 31 2013, inventory value reached nearly 8 trillion dong, up over 1 trillion dong compared to beginning of 2013. Although announcing greater revenue and
profit, HPG's total liabilities far exceeded equity in late 2013.
Specifically, liabilities as of December 31 2013 reached 13.377 trillion dong, up nearly
3 trillion dong compared to the beginning of 2013 (including 11.012 trillion dong of
short term debts and 2.365 trillion dong of long term debts). Meanwhile, HPG's equity
was at 9.498 trillion dong in late 2013, approximately 4 trillion dong lower than total
account payable at the same time.
Ocean group takes loans at high interest rates
According to the financial statement of 2013, Ocean Group Joint Stock Co (coded OGC)
gained 290.6 billion dong of profit before tax, up 66 percent and 168 billion dong of
profit after tax, up 80 percent.
Yet, this group announced loans worth trillion dong at very high interest rates (saving
interest rate in 12 months plus 7 percent per year), Ocean Group incurred nearly 500
billion dong of borrowing interest in 2013. In Q2/2013, OGC and its branches had 558.7
billion dong of long term loans from OceanBank. OGC owns 20 percent of capital in
this bank.
Statistical loans reached 1.535 trillion dong in 2013, including 452 billion dong of loan
from HDBank (up 416 billion dong), 97 billion dong of commercial loans from OceanBank, etc. 918 billion dong of due loans includes 500 billion dong of SouthernBank
bond, 200 billion dong of HDBank bond, 500 billion dong of Techcombank bond at
coupon rate of 10 percent per year and commercial loans of Oceanbank that will be due
in 2014. In addition, OGC had 2.079 trillion dong from commercial banks and other
creditors.
HAGL's debts hit the record
According to the financial report of late 2013, Hoang Anh Gia Lai Joint Stock Co (coded
HAGL) had the second largest loan balance in the stock bourse with 14.255 trillion
dong of borrowed money.
HAGL is multi-sectoral group that owns a series of rubber and sugar cane projects.
This group announced to leave the domestic real estate market, but it expanded property business in Myanmar. In 2013, HAGL sold six hydropower projects.
According to the latest figures, this group issued 8.376 trillion dong of bonds to partners and banks. Bank loans as of the end of 2013 reached 5.879 trillion dong. Short term
loans reached 2.689 trillion dong. Specifically, the group had 1.097 trillion dong of
loans from Bidv, 921 billion dong of loans fro Vietcombank, 499 billion dong of loans
from Sacombank, 100 billion dong of loans from Viet-Lao Bank, 47 billion dong of
loans from Vietinbank, 17 billion dong from Agribank and 5 billion dong from the
SHB. Total long term loans reached 4.046 trillion dong. Of which, the group had 1.784
trillion dong of loans from Bidv, 1.164 trillion dong of loans from Sacombank, 480 billion dong of loans from Eximbank, 332 billion dong of loans from Lao-Viet Bank, 147
billion dong of loans from ACB, 126 billion dong of loans from Vietcombank, etc.
Poor vigilance by Vietnamese companies has allowed the trademarks of their wellknown products to be mimicked by foreign competitors - a situation that is likely to
escalate if left unchecked.
Some 25 per cent of Vietnamese enterprises don't allocate a budget for branding, while
20 March 2014 14 / 31
FINANCE
20 March 2014
70 per cent invest a little without forming any strategies and 5 per cent run comprehensive strategies for branding and marketing.
The case against fake trademarks spoofing Buon Ma Thuot coffee in China earlier this
year, which involved costly legal proceedings, has reignited a sense of self-preservation in the business community.
Other major brands such as Trung Nguyen Coffee and Phan Thiet Fish Sauce, Vinataba, were also illegally registered abroad to cash in on their fame. It is also extremely
expensive and time-consuming for Vietnamese firms to fight against trademark infringement.
These notorious incidents have set a precedent for trademark nfringement against Vietnam's products, thus damaging the reputation of the genuine product and stealing
the producer's revenue.
If enterprises don't make a concerted effort to invest in the development and protection of their brands, they may have to pay a much heavier price later on.
However, it seems that Vietnamese companies have not fully understood the significance of this issue, said Vo Tri Dung, an industry expert.
The bulk of the country's exports, including rice, fruit, and fisheries products, lack major brand names, stated Tran Huu Hiep, head of the South-West Region Steering Committee's Economic Department.
Hiep noted that the task of creating location-specific brand names for key products
with cooperation between the government, farmers, scientists, and corporations had
been attempted in the past but had not been very successful.
On the global market, products that are made in Vietnam are overshadowed by foreign brands; in many cases, they have to rely on these foreign brands to help them penetrate world markets as subcontractors.
Their intellectual property rights are infringed upon by competitors, or they get exploited in foreign markets.
The Vietnam Trade Promotion Agency (Vietrade) under the Ministry of Industry has
suggested that building a national programme to increase awareness and support local enterprises in building, protecting, promoting and developing their brands is an
urgent and strategic requirement.
On the other hand, cooperation between the state and the business community also
plays an important role in promoting a common image for Vietnamese products,
which is seen as a cost-effective, time-saving way to facilitate penetration and to gain
a strong foothold in foreign markets for individual Vietnamese brands.
Speaking on issues affecting the export of local products, Fabienne Berger-Remy, a lecturer in marketing and brand management at IAE Paris, pointed out that culture and
location were important factors in brand building, which explains why adaptation is
necessary when approaching a new market.
However, she warned, enterprises should be very cautious in determining the degree
of adaptation they will follow while retaining the signature style of their products.
L'Oreal, IBM, Coca Cola, and Apple, as well as Disney are icons of success that Vietnamese companies nurturing dreams of international branding can emulate.
http://vietnamnews.vn/economy/252571/lax-firms-suffer-as-their-brands-are-duplicated.html
How much is
Vinalines worth?
Intellasia
20/MAR/2014 INTELLASIA | TBKTSG
The investors' thoughts now concentrate on the IPO of the Vietnam National Shipping
Lines (Vinalines) which would go equitised in the first quarter of 2015.
Vinalines has been found in the list of the state owned economic groups and general
corporations which must go equitised in 2014-2015. The minister of Transport Dinh La
Thang has also shown the ministry's determination to fulfill the equitisation soon,
which "not only aims to collect money from the stake sale, but also to change the management platform."
However, investors do not know well about Vinalines. What they have heard is that
Vinalines is incurring losses, while two of its subsidiaries - Vinashinlines and Falcon 20 March 2014 15 / 31
FINANCE
20 March 2014
are following the procedures to declare the bankruptcy, but it is still really attractive.
Figures make investors confused
On Vinalines' website, investors can read that the corporation made a profit of
VND1.241 trillion in 2010, VND62 billion in 2011. However, it took a loss of VND2.439
trillion in 2012. Meanwhile, there is no figure about profit in 2013.
As such, if referring to the information on the website, the corporation began taking
loss in 2012.
Meanwhile, the Report No. 146/BC-CP dated June 12, 2012 submitted by the government to the National Assembly showed that the general corporation met big difficulties in 2011, when it incurred the loss of VND434 billion after it made a profit of
VND142 billion in 2010 and VND317 billion in 2009.
As such, if referring to the government's report, the corporation began taking loss in
2011.
In another document - the government inspectors' report about Vinalines' capital use,
management and total assets in 2007-2010, one can read that Vinalines took a loss of
VND412 billion in 2009 and VND1.274 trillion in 2010, a very big loss.
As such, if referring to the government inspectors' report, Vinalines began incurring a
loss in 2009 already.
The different statistics released by different sources have made investors puzzled.
They cannot find the answer to the question how big the Vinalines' accumulated loss
is.
What are Vinalines' debts like?
The government's Report No. 146 showed that by the end of 2011, Vinalines' total
debts had reached VND43.135 trillion, including VND9.309 trillion worth of short
term debts.
Unable to pay debts, Vinalines has to negotiate for the debt restructuring. minister of
Transport Dinh La Thang reported at the November 2013's National Assembly's meeting that Vinalines had restructured VND7.885 trillion worth of debts at BIDV.
Meanwhile, it had successfully negotiated with the other creditors on the delays of
debt payment.
In the latest news, at the working session with the Ministry of Transport on February
24, Vinalines affirmed that it had drawn up the plan on restructuring the VND54.7 trillion debts incurred by the holding company and subsidiaries, and restructured the
$196 million loans with foreign credit institutions and restructured the VND43 trillion
loans with domestic banks.
The question about Vinalines' total assets
Analysts believe that the assets of the corporations mostly lie in its fleet and sea ports.
The northern ports, namely Doan Xa and Dinh Vu, have been operating well with the
profits sometimes equivalent to 100 percent of their chartered capital. The ports in the
central and southern regions have been less profitable, but satisfactory, despite the
shipping crisis.
Meanwhile, there is not much information about the current situation of its fleet after
a lot of purchase and sale deals made recently.
http://english.vietnamnet.vn/fms/business/97818/how-much-is-vinalines-worth-.html
Vinalines has new

CEO
Intellasia
Le Anh Son has been appointed general director of the Vietnam National Shipping
Lines Corporation or Vinalines. Son will officially assume the position from March 20.
Son, who is currently Vinalines deputy general director, will replace the predecessor Nguyen Canh Viet, who has just been promoted to the position of deputy director of
the Storm and Flood Control Committee of the Ministry of Transport.
Son was born in 1971 and holds an MA in Finance - Banking. He used to serve as director of the Maritime Consulting Company and Head of the Financial Consulting
Committee of Vinalines. He is the 2nd child in a family with several generations working in the transportation industry.
In 2013, Vinalines did not operate effectively when its key business - cargo shipping 20 March 2014 16 / 31
FINANCE
20 March 2014
remained losses. Meanwhile, the equitisation process went slowly.

At the conference on restructuring State-owned enterprises last month, prime minister
Nguyen Tan Dung criticised Vinalines for slow equitisation. At present, up to 11 subsidiaries of Vinalines are not equitised yet.
Also at the conference, the prime minister asked ministries and localities to replace
leaders of the State-owned businesses where equitisation is performed slowly.
Transport minister Dinh La Thang said that he replaced two leaders (General director
and Chair) of the Traffic Engineering Construction Corporation No. 8 (Cienco8) for the
similar reason.
http://english.vietnamnet.vn/fms/business/97849/vinalines-has-new-ceo.html
Market heats up as big

foreign retail mall
exploiters turn up
Intellasia
20/MAR/2014 INTELLASIA | DNSG
Parkson has returned, while Ocean Group has jumped into the HCM City market. The
moves taken by the big guys are believed to heat up the market.
Any slight commotion by the "big guys" would have influences to the retail premises
market.
On March 15, Parkson, the big guy from Malaysia, took delivery of six trade floors at
Leman Luxury Apartments in district 3 developed by C.T Group. This is the second
project co-developed in cooperation between Parkson and C.T Group. The other one
is Parkson Shopping Mall at C.T Plaza in Tan Binh which has been operational.
Prior to that, in December 2013, the shopping mall exploiter, belonging to Malaysian
Lion Group, inaugurated another shopping mall in district 2, its eighth shopping mall
in Vietnam.
As such, Parkson has developed nine shopping malls, including six in HCM City, two
in Hanoi and one in Hai Phong City) with the total floor area of 172,000 square meters,
since the day it arrived in Vietnam in June 2005.
The retail premises area occupied by Parkson Vietnam is the third largest among the
six markets Parkson has invested in so far, including Malaysia, Indonesia, China, Sri
Lanka, Myanmar and Vietnam.
However, the number of Parkson shopping malls in Vietnam is really modest if compared with China, Malaysia, Indonesia and Sri Lanka.
Tham Tuck Choy, general director of Parkson Vietnam, said 2013 was a difficult year
for Parkson and retailers, but declined to talk about the revenue.
However, The Edge Financial Daily has reported that the revenue of Parkson Holdings
Bhd, which holds the controlling stakes of Parkson Retail Asia, was lower by 4.2 percent in the first quarter 2014 than the 2013's first quarter, while the shopping malls in
Vietnam's revenue decreased by 2 percent.
Though the market is getting tougher, Parkson still keeps confidence on the long term
potentials of the Vietnamese market. It plans to open one or two more shopping malls
a year, after considering the market performance and the retail premises market.
In 2014, a shopping mall would be opened in the central city of Da Nang, while Parkson are looking for retail premises to set up more shopping malls in Hanoi and Hai
Phong.
Also in March 2014, South Korean Lotte Group put its seventh Lotte Mart in Vietnam
into operation. This is one of the three shopping malls the group plans to set up this
year. The other two are located in the Go Vap district in HCM City and in Can Tho
City.
The Japanese Aeon would put its second shopping mall into operation in Binh Duong
province after it opened the first one in Tan Phu district in HCM City.
Not only foreign investors, Vietnamese corporations have also jumped into the market. Ocean Group is about to inaugurate a shopping mall on the Van Thanh "golden
land plot" in HCM City.
The ambitious business plans to develop 70-80 Ocean marts and Ocean malls nationwide by 2015 which would cover the area of 200,000 square meters in total.
Ocean Group, together with Vincom, the Vietnamese financially powerful groups, are
believed to be the redoubtable rivals for foreign investors.
20 March 2014 17 / 31
BUSINESS
20 March 2014
Ocean Group has made its presence in the southern market by developing the five Vissai Hotel.
http://english.vietnamnet.vn/fms/business/97819/market-heats-up-as-big-foreign-retail-mall-exploiters-turn-up.html
BIZ NEWS
BUSINESS
Business Briefs March
20
Intellasia
20/MAR/2014 INTELLASIA
* EI.T Investment Company (FIT) has announced March 26 as the ex-dividend date to
pay 2013 share dividend for existing shareholders at the 5: 1 ratio and issue over 10.2
million shares at the 5:1 ratio and issue over 10.2 million shares at the 100:65 ratio
* CSC Vietnam Joint Stock Company has bought 680,000 shares of Pan Pacific Corporation (PAN).
* Gia Lai Electricity Joint Stock Company has offloaded around five million shares of
Gia Lai Cane Sugar Thermoelectriciry Company (SEC), an 18.3 percent stake. Gia Lai
Electricity Joint Stock Company has offloaded around five million shares of Gia Lai
Cane Sugar Thermoelectriciry Company (SEC), an 18.3 percent stake.
* Thanh Thanh Cong Tay Ninh Company (SBT) has decided to contribute VND189 billion to establishment of Thanh Thanh Cong Alcohol Trading Production Joint Stock
Company to secure a 90 percent stake in the latter.
* Kim Cuong Investment Joint Stock Company has sold over 902,000 shares of Vung
Tau Real Estate and Construction Company (VRC) to reduce its holding from 14.5 percent to 8 percent.
* Vietnam Property Fund Limited has sold nearly 4.2 million shares of Hoang Anh Gia
Lai Company (HAG), or a 0.6 percent stake.
* Sacombank has launched a promotion programme to refund 10 percent of transaction value to customers who pay electricity, water, telephone and Internet bills via its
iBanking service from now to June 3.
* Vietcombank has got approval from the central bank to inaugurate a branch in Binh
Duong Province.
* Tan Tien Plastic Packaging Company (TIP) plans to buy back over 1.4 million shares
as treasury shares at VND28,000-33,000 each. Transactions will be made from March
27 to April 25.
* Chailease International Leasing Co. Ltd has obtained approval to open a representative office in Can Tho City while Mirae Asset Financial Company has been allowed to
establish a representative office in Binh Duong Province.
* The central bank has given approval to HSBC Vietnam Bank to raise its chartered
capital from VND3 trillion to over VND7.5 trillion.
* Saigon-Hanoi Commercial Bank has cooperated with Smartlink Card Service Joint
Stock Company to help its customers make online payments on websites of Smartlink's partners.
* Hoang Anh Saigon Real Estate Company has offered for sale apartments of the Hung
Ngan Garden project at a price starting from VND10.9 million per square meters. Located in HCM City's District 12, Hung Ngan Garden consists of four 22-floor blocks
providing over 1,300 apartments of 53-65 square meters. Apartments will be transferred in next year's first quarter.
* Lock&Lock has opened the first Cas a Zen furniture store in HCM City, which is also
the second store of the kind in Vietnam. The new store is on level 4 of Crescent Mall in
District 7. On this occasion, Lock&Lock is offering discounts of up to 30 percent on all
products at Cas a Zen until March 31.
* Saigon Railway Station will operate more HCM City-Nha Trang train journeys from
April 29 to May 3 to meet the increasing transport demand in the Reunification DayMay Day holiday. Besides, trains running from HCM City to Phan Thiet, Quy Nhon,
Hue and Hanoi will be added with more carriages in the period.
* Binh DuongWater Supply, Sewerage and Environment Company (Biwase) on Mon20 March 2014 18 / 31
BUSINESS
20 March 2014
day kicked off the project to upgrade Ba Bo Canal's section in Binh Duong Province's
Thuan An Town. The project worth over VND345 billion will be finished after eight
months.
* Toyota Vietnam yesterday introduced the all new Vios 2014 with four models, including Vios 1.5G priced at VND612 million, Vios 1.5E at VND561 million, Vios Limo
at VND529 million and Vios J at VND538 million.
Stocks up despite
petrol price hike
Many listed firms

announce to advance
2013 dividend
20/MAR/2014 INTELLASIA | DAU TU CHUNG KHOAN
Intellasia
Shares advanced on both the national stock exchanges yesterday despite a hike in the
price of petrol.
The petrol price hike was expected to have a negative impact on the stock market during the afternoon trade. However, the market moved against expectations due to significant capital inflows and firm investor confidence.
On the HCM City Stock Exchange, the VN Index added 5.74 points, or as much as 0.96
per cent, to close yesterday at 605.59 points, as it recovered from Tuesday's loss.
A total of more than 192 million shares changed hands yesterday with the total trading
value reaching VND3.2 trillion (US$152.3 million).
With gainers overwhelming losers by 19-4, the VN30-Index, tracking the southern
city's 30 largest shares by capitalisation and liquidity, gained 1.23 per cent to end the
day at 681.94 points.
The Tan Tao Group (ITA) was the pick of the investors yesterday as more than 18.5
million of its shares changed hands and led the bourse in terms of liquidity.
Shares of ITA increased by VND600 (US$0.028) per share to its ceiling price of
VND9,500 (US$0.45) after the news that the group was working with a French electricity group on the Kien Luong 1 Thermoelectric Plant project.
Banking stocks were also active yesterday after the State Bank of Vietnam amended
the Circular 02 about bad debt. Vietinbank (CTB), Eximbank (EIB), Military Bank
(MBB), Sacombank (STB), and Vietcombank (VCB) all closed in the black.
Other big gainers included FPT Group (FPT), Hoa Phat Group (HPG), Hoa Sen Group
(HSG), and Ocean Group (OCG).
Those gains pushed the benchmark indices to close higher, while the shares of PetroVietnam Low Pressure Gas Distribution (PGD), PetroVietnam Transportation (PVT),
Ree Corporation (REE), and Vinamilk (VNM) dropped.
Overall, 183 codes on the southern bourse gained, while 55 codes lost values.
On the Hanoi Exchange, the HNX-Index posted a gain of 2.38 per cent to end at 89.68
points and the HNXFF-Index closed at 90.38 points, with an apparent rise of nearly
2.95 per cent.
Liquidity was at a high level as the total trading value reached VND1.4 trillion
(US$66.7 million) and nearly 130 million shares were traded.
The HNX30-Index, tracking the top 30 stocks, advanced 3.73 per cent to finish at 183.97
points.
A record of more than 31.4 million shares of the Sai Gon - Hanoi Bank (SHB) successfully changed hands yesterday, the highest recorded level for a stock to be traded in a
single trading session.
http://vietnamnews.vn/economy/252561/stocks-up-despite-petrol-price-hike.html
Some listed companies on Hochiminh Stock Exchange (STC) have just announced the
Board of directors' Resolution on 2013 dividend payment.
Accordingly, four companies including Tuong An Vegetable Oil Joint Stock Co (TAC),
Seaprodex Refrigeration Industry Corp (SRF), Import Export & Economic Cooperation
Joint Stock Co (SAV) and Petrolimex Insurance Corporation (PGI) shall advance 2013
dividend to their shareholders in the near future. Specifically:
TAC: the Company's Board of directors has approved 2013 dividend payment of 16
percent in cash (equivalent to 1,600 dong/share) starting from May 16, 2014. Ex-interest
date is on March 25. Registration deadline date for shareholders is March 27.
20 March 2014 19 / 31
BUSINESS
20 March 2014
SRF: the Company's Board of directors has decided to close the list of shareholders to
make temporary dividend advance for February 2013 in cash at a rate of 12.5 percent
(equivalent to 1,250 dong/share). Time for payment is scheduled to start from April 02,
2014.
Previously, SRF have advanced 10 percent of 2013 dividend at the end of September
2013 also in cash. SRF is expected to pay 2013 dividend at 35 percent.
SAV: The Company's Board of directors agreed to make advance payment of 2013 dividend of 4 percent in the second quarter of 2014. Specific time for payment is decided
by the general director. In 2013, SAV planned to pay 25 percent of dividend in stock.
PGI: The Company's Board of directors has decided to advance 2013 dividend of 8 percent, lower than the previously set rate of 10 percent. At the same time, the Board also
decided to organise annual general meeting (AGM) at 8.30 am on April 23, 2014 at Daewoo Hotel, 360 Kim Ma, Ba Dinh, Hanoi.
Hanoi improves
competitiveness
ranking
Textile exports
predicted to leap this
year
Intellasia
Hanoi climbed up 18 notches from 51st to 33rd place in the latest 2013 provincial competitiveness index (PCI) rankings released on March 20.
The central city of Danang topped Vietnam's 2013 PCI list for cities with 66.45 points,
marking the third time it carved out the lead, though it only placed 12th overall.
A number of provinces in the Mekong Delta region were cited among the top five
provinces on the list, including Kien Giang (63.55 points, 3rd) and Dong Thap (63.35
points, 5th).
HCM City - the economic hub of the south - leapt up three steps to make it into the 2013
PCI's top ten.
The central province of Thua Thien Hue secured 65.56 points and 2nd position, while
the northern province of Quang Ninh ranked fourth, eking out 63.51 points.
Many northern mountainous provinces were listed among those with the lowest PCI.
http://english.vov.vn/Economy/Hanoi-improves-competitiveness-ranking/
274453.vov
Some major firms in the apparel industry have predicted the industry's export value
this year to grow by a staggering 30 percent this year given the strong demands in Vietnam's traditional markets.
Nguyen Van Thoi, board chair of TNG Investment and Trading Joint Stock Company
as a major apparel exporter, told the Daily that he had observed greater demands, and
the growth rate of Vietnam's textile industry is expected to hit 30 percent.
According to the Vietnam Textile and Apparel Association (VITAS), the industry last
year obtained export revenues of $20 billion, a rise of 18.7 percent against 2012. Of all,
textile and garment shipments accounted for $17.9 billion while yarn fetched $2.1 billion.
The turnover is projected to reach $26 billion this year, Thoi said, adding many enterprises have had full orders for 2014.
Foreign clients consider 2014 a golden year for Vietnam's enterprises because many
buyers of Vietnam's apparel products had cleared all stocks last year.
TNG's export revenues climbed to over $70 million last year, with exports to the US
representing 60 percent of the company's total export sales. Thoi expected his company's apparel exports to fetch nearly $100 million this year.
Bui Van Tien, CEO of Viet Tien Garment Joint Stock Company, also expressed his surprise over the fast-growing rate in the industry.
"More and more orders are flowing to Vietnam. At the moment, we can choose better
ones instead of taking them all with low prices previously," said Tien.
Even though things have turned out to be more optimistic, fierce competition in prices
is also a concern. Therefore, firms with low capacity may run into difficulty.
VITAS said Vietnam's exports to the US, the EU and Japan last year generated $8.6 billion, $2.7 billion and $2.3 billion respectively, all showing double-digit growth rates.
20 March 2014 20 / 31
BUSINESS
Textile and garment

sector urged to
restructure soon
Vietnam's fabric &

garment exports up
19.3pct in Jan-Feb'14
20/MAR/2014 INTELLASIA | FIBRE2FASHION
Vietnam's coffee sales

slow as prices fall
Intellasia
20 March 2014
Vietnam should soon restructure its textile and garment industry by increasing competitiveness, and offering value-added products, stated deputy prime minister Hoang
Trung Hai.
During his speech at an opening ceremony of Esquel Group's new garment factory in
the northern Hoa Binh province yesterday, the deputy PM noted that apart from the
six signed free-trade agreements (FTAs), Vietnam was in the process of negotiating six
others, such as the Trans-Pacific Partnership, FTAs with EU, and the Customs Union
of Belarus, Kazakhstan, and Russia.
Three of them were expected to be finalised in 2014, he remarked, adding that this was
a historic time for the domestic textile and garment sector to restructure and be an integral part of the global production chain by producing hi-quality and value-added
products.
In order to achieve this goal, he called for greater efforts by the government, ministries,
local authorities, and the business community including the foreign-invested sector.
The Esquel Group vice Chair and CEO John Cheh stated that the $25 million garment
plant in Hoa Binh Province's Luong Son Industrial Zone was the group's third plant in
Vietnam, besides its existing facility in the southern Binh Duong Province and another
factory in the neighbouring Dong Nai Province.
The new factory with start operating at full capacity next year and will produce seven
million hi-quality shirts annually for renowned international brands such as Hugo
Boss, Tommy Hilfiger, and Muji and will provide jobs to 3,000 locals.
He added that the group also planned to develop a fabric mill in Vietnam this year.
Esquel Group is one of the world's leading producers of premium cotton shirts. It has
also opened production facilities in China, Malaysia, Mauritius, and Sri Lanka.
http://vietnamnews.vn/economy/252562/textile-and-garment-sector-urged-to-restructure-soon.html
The exports of fabric and garments from Vietnam increased by 19.3 percent year-onyear to $ 2.936 billion in the first two months of 2014, according to the data released by
the general Department of Customs, Vietnam's Ministry of Finance.
With $1.435 million worth of goods, the US turned out to be the largest importer of fabric and clothing items from Vietnam during January-February 2014, followed by Japan
and South Korea with imports of $379.366 million and $278.098 million, respectively.
Among the European countries, Germany was the top buyer of fabric and garments
from Vietnam with imports valued at $106.783 million. Spain, the UK and the Netherlands were the other large importers of Vietnamese fabric and apparel last year with
goods worth $99.159 million, $74.697 million and $34.249 million, respectively.
Vietnam's fabric and garment exports to Canada were valued at $57.352 million, while
those to China and Taiwan were worth $55.308 million and $26.809 million, respectively, during the first two months of 2014.
During the two-month period, Vietnam also exported 113,454 tonnes of yarn worth
$341.675 million, of which 48,460 tonnes of yarn was supplied to China, while Turkey
imported 14,829 tonnes of yarn from the Southeast Asian country, the Customs data
showed.
In 2013, Vietnam's fabric and garment exports grew by 18.9 percent year-on-year to
$17.946 billion.
Vietnamese firms are expecting an increase in export orders this year due to economic
recovery in developed countries and prospects of the signing of the 12-nation trans-pacific partnership (TPP) agreement by June this year.
http://www.fibre2fashion.com/news/textile-news/newsdetails.aspx?news_id=161058
20/MAR/2014 INTELLASIA | BRECORDER
Coffee prices in Vietnam fell on Tuesday, pulled down by a decline in London robusta
futures market, putting a brake on farmers' selling that began early this month, traders
20 March 2014 21 / 31
BUSINESS
20 March 2014
said. Robusta prices rising beyond a key level of 40,000 dong per kilogram in Vietnam,
the world's largest producer of the bitter beans used mainly for making soluble coffee,
has prompted farmers to accelerate selling in the past two weeks.
On Monday, global coffee markets retreated as a forecast for widespread rain in top
grower Brazil's coffee belt took out some of the market's weather premium. May robusta on Liffe finished 0.7 percent lower at $2,159 a tonne. On Tuesday prices in Vietnam, which closely track London futures prices, eased around 1 percent from the
previous day to 41,000-41,300 dong ($1.94-$1.96) per kilogram, well below 41,60041,700 dong a week ago.
"After a strong sale last week, farmers are not selling now as prices ease a bit," a trader
in HCM City said. Farmers in the Central Highlands coffee belt, who grow coffee on
some 80 percent of the region's total coffee acreage, had earlier expected prices to rise
to 45,000 dong per kilogram on dry weather affecting the Brazilian crop. But lower
prices in London pulled Vietnamese prices down this week, and also narrowed the
discounts of Vietnamese beans.
On Tuesday, Vietnamese robusta grade 2, 5 percent black and broken were offered at
$70 to $90 a tonne below the May contract, down from $85-$110 last Tuesday. In the
same period last year, the beans were offered at premiums of $40 a tonne to London
futures prices. While sales slowed this week, Vietnam's coffee export data for February
suggested supply to the global market was ample.
Last month Vietnam exported 184,100 tonnes (3.07 million bags) of coffee, a surge of
83.4 percent from a year ago, Vietnam Customs said last Thursday, far above market
expectations. Some coffee farms have been facing water shortage in the central highland province of Kontum, as the dry season peaks in the region, state-run Liberation
Saigon daily said on Tuesday.
The newspaper report followed a similar statement issued on March 6 by the Vietnam
Coffee and Cocoa Association (Vicofa), the industry body, which said the dry weather
could be one of the reasons to reduce output of the next 2014/2015 crop. Traders widely
dismissed Vicofa's forecast, saying the crop has not been hurt. The crop year lasts from
October to September.
"There's been no impact from the dry weather on coffee at all," said a trader in Dak Lak,
the country's largest coffee growing province in the Central Highlands. "Farmers are
watering trees in the third phase and everything so far has been normal." Kontum is
the smaller coffee growing province among the five provinces in the Central Highlands, producing around 25,000 tonnes a year, or 1.5 percent of Vietnam's total output.
Farmers often water trees three to four times, starting in February, with each phase
lasting about 10 days and intervals of around 20 days each, until rain returns in early
May.
http://www.brecorder.com/agriculture-a-allied/183/1164246/
Vietnam imports over

70pct of dairy input
Intellasia
The domestic dairy industry currently imports 70-80 percent of its input materials, creating a strong link between the price of Vietnamese dairy products and corresponding
global prices.
In recent times, local dairy producers have, out of necessity, increased prices of products on the back of rising prices in the world market, which is giving rise to concern
and the need for an improved alternative strategy for cow breeding.
Since the prime minister approved a policy on cow breeding in 2001, Vietnam has domestically met only 28 percent of its annual total demand for dairy input materials.
Vietnam Animal Breeding Association Chair Nguyen Dang Vang, directly attributes
the local dairy sector's severe shortage to the sharp increase in dairy prices experienced
by the Vietnamese market in recent years.
The State has yet to promptly issue appropriate zoning plans on cow breeding to increase supply sources of input materials for the local dairy industry.
As a result, Vietnam, for the first time, spent in excess of $1 billion purchasing dairy
input from overseas markets last year, he noted.
20 March 2014 22 / 31
BUSINESS
Stable 2014 pepper

output predicted
Vietnam focuses on
saving, effective
energy use
Intellasia
20 March 2014
The country's pepper output is expected to equal last year's yield, which was 120,000125,000 tonnes, according to the Vietnam Pepper Association (VPA).
However, in Binh Phuoc Province, one of the country's largest pepper cultivation areas, output is expected to be 5,000 tonnes this year, down 20 per cent against last year.
But two of the five provinces in Tay Nguyen (Central Highlands) will have a higher
output, with Dak Nong Province at 3,500 tonnes, up 25 per cent against last year, and
Dac Lak Province at 800 tonnes, up 5 per cent.
The average price of black pepper has remained stable this year at VND120,000
(US$5.7) per kilogramme.
Harvest yield as well as the buying and selling prices of pepper remain similar to last
year's levels, and in some cases are tending to rise, according to the VPA.
Most pepper orchards in Binh Phuoc, Dong Nai, Ba Ria - Vung Tau, Dak Nong, Dak
Lak and Gia Lai provinces, which have had pepper plants for seven to 10 years, have
had a declining yield. The yield is expected to continue to fall next year.
In Gia Lai Province, hundreds of hectares of pepper cultivation could disappear within
the next two to three years because of disease outbreaks that have occurred on a large
scale.
However, in provinces like Dak Lak and Dak Nong, which have favourable natural
conditions as well as farmers with financial means, the area for pepper orchards has
expanded.
http://vietnamnews.vn/economy/252566/stable-2014-pepper-output-predicted.html
20/MAR/2014 INTELLASIA | VNA
Vietnam has invested in tapping alternative energy sources and developing nuclear
electricity to reduce the nation's dependence on fossil fuels to ensure energy security
and sustainable development, a top official has confirmed.
Deputy minister of Industry and Trade Cao Quoc Hung highlighted the policy at a Vietnam-Norway workshop on hydro-power and electricity market reform in Hanoi on
March 19.
According to Hung, the country is also using its energy more effectively and has embraced the application of low-carbon emission technology.
However, he admitted that challenges exist relating to the management and operation
of hydro-power plants. Particularly, terraced plants built on rivers are struggling to
meet their targets for power generation, irrigation for agricultural production, flood
regulation while ensuring environmental safety.
In addition, the ministry also needs to learn from foreign experience in developing a
competitive national electricity market by 2020, he added.
Monica Maeland, Norwegian minister of Trade and Industry, said Norway is able to
share its experience in the field.
Per Christer Lund, an electricity industry consultant based in Singapore, said that the
electricity market needs more participants and more balance to be truly effective, because Vietnam already has a competitive power generation market and links to the retail sale marketplace.
He suggested Vietnam connect with other regional countries to address the issue because hydro-electricity is still a major power generation source.
According to the Ministry of Industry and Trade, Vietnam's energy consumption was
57 million tonnes of equivalent oil in 2013 and is forecast to increase by seven percent
a year during the 2010-20 period and five percent for the decade after.
In its electricity development planning for 2011-2020 with a vision to 2030, Vietnam
continues to prioritise the development of hydro-power, bringing total hydro-electricity production to 21,300MW in 2020 from the current level of 14,000MW.
http://en.vietnamplus.vn/Home/Vietnam-focuses-on-saving-effective-energy-use/
20143/47701.vnplus
20 March 2014 23 / 31
BUSINESS
Fuel retailers raise

petrol prices
EVN has to spend 70b

dong/day on using oil
for electricity
generation
Power supply strained

by gas pipeline
leakage
Intellasia
20 March 2014
Domestic petrol retailers on March 19 raised prices by VND180 per litre after getting
the approval from the relevant ministries.
Accordingly, as of mid-yesterday, all petrol stations of Petrolimex, PV Oil and Mipec
nationwide marked their prices of RON 95 and RON 92 at VND25,190 and VND24,690
(US$1.17) per litre respectively.
The price of diesel was also increased by VND70 per litre to touch VND22,840.
However, the price of gasoline remained unchanged at VND22,630 per litre, while the
price of fuel oil (FO) was adjusted down by VND120 per litre and now ranges
betweenVND18,490 and 18,890 depending on the kind of fuel.
According to the ministries of Finance, Industry and Trade, the prices of petrol products, excluding fuel oil (FO), in the world market have remained high in the past
month. They estimated that the average price in the past 30 days in the world market
was between VND71 and VND654 per litre higher than the domestic retail price. Domestic petrol retailers therefore suffered a loss of nearly VND500 per litre.
The fuel oil (FO) price in the global market was VND113 lower than the domestic price,
the ministries estimated.
To balance the benefits for the domestic petrol retailers and the consumers, the retailers were allowed to increase their prices, the ministries said.
The finance ministry also asked petrol retailers to get VND300 per litre from the Petroleum Price Stabilisation Fund to offset their losses. The retailers would not get money
from the fund for gasoline and diesel, it said.
It is the second petrol price hike this year after the adjustment of VND300 per litre on
February 21.
The price of one litre of RON 92 is currently lower than the record high of VND25,070
per litre that it reached on July 17, 2013.
http://bizhub.vn/news/4980/fuel-retailers-raise-petrol-prices.html
Electricity of Vietnam Group (EVN) has said that with the leak in entire gas supply
pipeline at two gas-fuelled power plants in the southernmost province of Ca Mau, the
total oil-fuelled power output was about 15.2 million kWh, giving an additional cost
of about 70 billion dong per day.
Citing the information from Ca Mau Gas Co, EVN said, the leak in the gas supply pipeline happened in the rig run by Malaysia-based Talisman Co.
During the time of gas supply suspension, the PM3 Ca Mau gas pipeline is still able to
maintain the operation of the auxiliary equipments but it is unable to maintain the operation of Ca Mau power plants.
Currently, Ca Mau 1 and 2 power plants have total electricity generation capacity of
1,500 MW, accounting for 21.03 percent of the total capacity of gas-fuelled turbines
nationwide and making up about 14.98 percent of the consumption demand for electricity in the southern, accounting for 53.57 percent of the consumption demand for
electricity in the western area.
To ensure the uninterrupted, stable and safety operation of the southern power system, EVN said it and relevant units have to mobilise one turbine from O Mon power
plant, which is operated by fuel oil (FO) in the Mekong Delta province of Can Tho, and
2-3 gas turbines from Ca Mau power plants, which are operated by diesel oil (DO).
As estimated, the total electricity output to be mobilised by oil fuel would be about 15.2
million kWh/day, of which, the cost arising from the oil fuel for plants is about 70 billion dong per day.
Power supply in the country will remain strained in the next couple of days due to a
gas leak on the PM3 pipeline that has disrupted gas supply for Ca Mau power plants
since last Saturday, said the gas pipeline operator.
It is expected to take PetroVietnam Gas Ca Mau Company under PetroVietnam Gas
20 March 2014 24 / 31
BUSINESS
20 March 2014
Joint Stock Corporation three days to restore gas supply, the company said in a statement.
The incident has forced Electricity of Vietnam (EVN) Group to resort to oil to generate
power as the gas-fired power plants with combined capacity of 1,500 MW were affected.
EVN also calls on households to save on power to ease the strain. EVN also called for
power users to economise on power use in the current dry season when the demand
normally shoots up.
Shortage of water in the southern region is projected to last through early June.
The National centre for Hydro-Meteorological Forecasting predicts that the rainfall in
the southern region this March and April will be lower than usual, and the water flow
will only be equal to other previous years by August.
Heat waves, droughts and lack of water will continue affecting the Central Highlands,
the southern region and central provinces of Ninh Thuan and Binh Thuan until early
June.
Meanwhile, residents in HCM City and other southern provinces are struggling with
the hot weather, with the temperature reaching nearly 40 degrees Celsius at noon.
EVN said the national consumption of electricity in the first two months this year
jumped by 9 percent compared to the same period last year.
http://english.thesaigontimes.vn/Home/business/infrastructure/33588/Power-supplystrained-by-gas-pipeline-leakage.html
Power demand surges

in south
Intellasia
While Vietnam Electricity Group (EVN) has been running most power plants at full capacity, power demand in the southern region keeps soaring given hot weather with
consumption on Monday hitting the highest level since early this year.
Pham Minh Luong, managing director of the Southern Load Dispatch Centre, told the
Daily on March 18 that total power consumption in the south reached 210 million kWh
on Monday, or one million kWh higher than early last week.
Power demand is expected to rise further in the coming days. Currently, EVN has to
run O Mon and Ca Mau diesel-fueled power plants due to a gas supply shortfall
prompted by a leakage of the gas pipeline PM3 last Saturday, he said.
Backup power supply in the region remains low at the moment. Therefore, demandsupply imbalance may occur in some occasions this year, according to EVN Southern
Power Corporation.
In a statement released on Monday, EVN said it is spending an extra sum of around
VND70 billion each day running diesel-fired power plants as the leakage has disrupted gas supply for Ca Mau power plants since late last week.
Pham Quoc Bao, deputy general director of HCM City Power Corporation, told the
Daily that power consumption in the city alone hit 57.8 million kWh on Monday, the
highest since early this year, with maximum generation output of nearly 3,000 MW.
Though the city has yet to see a power shortage, demand is expected to increase in the
future as residents are increasingly using air-cons and other cooling devices due to hot
weather. Output is expected to reach the maximum level of 3,400 MW a day, higher
than in the dry season last year, at 3,050 MW, Bao said.
EVN Southern Power Corporation said only two generators of Vinh Tan 2 coal-run
thermal plant will be put into operation this year with a capacity of 1,200 MW, so there
will be tension in power supply in the region. Demand is estimated to reach its peak
between March and June with consumption rising by around 15 percent.
Meanwhile, electricity grids in neighbouring provinces such as Binh Duong, Ba RiaVung Tau, Dong Nai and Long An provinces are running at full capacity. Construction
of some 220 kV stations such as Nhon Trach, Phu My 2, Vung Tau, My Xuan, Tay Ninh,
Ham Tan and Duc Hoa have also fallen behind schedule.
However, unlike the dry season in 2013, some cement and steel enterprises have yet to
report power shortages for production so far.
20 March 2014 25 / 31
BUSINESS
Quang Ngai looks

forward to big-ticket
gas-power project
Russian firm says will

build nuclear centre in
Vietnam
Intellasia
20 March 2014
PetroVietnam (PVN) has declined to confirm a $20 billion joint venture project between PVN and the US group Exxon Mobil Corp. planned for Quang Ngai Province,
but sources said progress has been made on the plan.
The two sides are looking for a good location to set up a gas and power complex with
a capacity of 1,500 MW, covering a total area of 200 hectares in the first phase of the
project. The second phase is expected to double the initial capacity and build a gas
plant.
PVN has recommended to its partner ExxonMobil a site in Quang Ngai Province's
Dung Quat Economic Zone where it has a subsidiary named Binh Son Refining and
Petrochemical Company that is operating the country's first oil refinery.
ExxonMobil has exploitation rights in Blue Whale oil field located in lots 117, 118 and
119 in the Red River basin after buying other foreign partners' interests and has been
in operation since 2013.
PVN and ExxonMobil singed a framework agreement on tapping the Blue Whale
project in July 2013. Both sides had discussed a comprehensive plan and roadmap for
the project.
However, there have been no official documents on gas reserves, implementation of
the project, and investment location to date. Only when they formally reach agreement
on gas purchase contract and PVN builds a gas processing plant will the gas-power
complex project be set up in central Vietnam.
http://english.thesaigontimes.vn/Home/business/investment/33606/Quang-Ngailooks-forward-to-big-ticket-gas-power-project.html
Russia's Rosatom Nuclear Energy State Corporation and Vietnam's Ministry of Science
and Technology are making preparations to build a $500 million nuclear research and
technology centre as a prelude to the construction of Ninh Thuan 1 nuclear power
plant.
Speaking to the Daily at the 30th anniversary ceremony of the Da Lat nuclear reactor
in Da Lat City on March 18, Vyacheslav Pershukov, deputy general director of Rosatom, said that both sides are looking for a location and drafting the feasibility study
for the nuclear centre project using Russia's credits.
Nuclear energy experts from the two countries have built up research programmes for
the centre with two facilities, one in Da Lat and the other in Hanoi, he said.
The centre will meet demands for scientific and technical research and manpower
training for the first nuclear power project in Vietnam. It will also study applications
of nuclear irradiation in industrial material production, biotechnology and pharmaceutical sectors.
For the Da Lat facility, Rosatom suggested building a nuclear reactor and infrastructure components for safe operation. The reactor will have a capacity of 15MW, or 30
times higher than the current reactor in the resort city.
Meanwhile, the Hanoi base will focus on theory and testing of results obtained at the
Da Lat base.
Construction of the centre is expected to kick off in 2015 and finish in 2020 with around
400 to 500 Vietnamese and foreign experts employed for the two bases. In addition,
over 240 Vietnamese students will be trained at universities and nuclear centers underway in Russia to serve the centre in Vietnam.
Last year, 51 apprentices for Ninh Thuan 1 nuclear power plant were sent to construction sites of Rostov nuclear power plant in Russia.
Pershukov said that the Russian firm and the investor Vietnam Electricity Group
(EVN) are preparing for the construction of Ninh Thuan 1 project in Thuan Nam District, Ninh Thuan Province.
Given the approval by the National Assembly in 2009, construction of the project was
scheduled for this year with reactors to be up and running in 2020. However, it has
been delayed for a couple of years to ensure the highest levels of safety and security.
20 March 2014 26 / 31
BUSINESS
20 March 2014
According to a statement released on March 18, Rosatom affirmed that the project will
start operating in 2023 or 2024 as negotiated by both sides in February 2013.
http://english.thesaigontimes.vn/Home/business/investment/33601/Russian-firmsays-will-build-nuclear-centre-in-Vietnam.html
Quang Binh seeks $4b

for 40 projects
Vietnam raises pump

prices on global hikes
Intellasia
The central province of Quang Binh is seeking nearly $4 billion for 40 projects in highly
competitive areas during 2014-15, officials said.
Nguyen Huu Hoai, the province chair said that the areas included infrastructure, especially in industrial zones, tourism, industrial production, and agriculture. The province is also looking for investment in culture, healthcare, and education sectors, he
said.
The province has called for investment in two key infrastructure projects, such as Bao
Ninh and Phu Hai Urban Areas with a capital investment of at least VND1.1 trillion
($52.3 million).There are 9 tourism-related projects, including Phong Nha-Ke Bang, Da
Nhay-Ba Trai tourism complex, and Dong Hoi golf course.
In the industrial area, the province have been looking for investment in 17 projects, including the Quang Trach 2 Thermal Power Plant with a 1,200MW capacity in the Hon
La Economic Zone with an investment of $1.3 billion and a 20-hectare auto assembling
factory with an investment of $500 million.
The wholly foreign-invested Hon La Port and oil pipeline project to Laos has an investment of $200 million.
Addressing a conference of potential investors in Hanoi yesterday, Hoai remarked
that the province has been considered as one of the destinations having a favourable
business environment for both domestic and foreign investors in Vietnam. The event
jointly held by the province and the Bank for Development and Investment of Vietnam
was part of its preparation for the upcoming conference to promote investment in the
province earlier next month.
"The Quang Binh Province has received 267 registered projects with a total investment
of VND100 trillion ($4.76 billion), of which 158 projects have been under implementation with a registered capital of VND78.9 trillion ($3.75 billion)," Hoai added.
He reported that the province has announced special preferential policies for attracting investment. The important policies initiated by the province were related to taxes
on land use right, land and water rentals and corporate income tax.
"In addition, the province will also initiate other policies to assist investors, such as labour training costs, land clearance, and technical infrastructure," he noted.
Dang Minh Truong, the general director of Sungroup that specialises in tourism and
real estate claimed that the province has a lot of unexplored potential.
Truong stated that the group plans to invest in some tourism projects in the province
while seeking commitments from the province in resolving possible issues relating to
procedures and land clearance.
Hoang Anh Tung, the project development director of Vietjet Air reported that this
year, the carrier will buy seven new aircraft, thereby bringing the total to 18.
"We plan to open new routes this year to fully utilise the new aircraft. We expect to receive support from the province as we will open the HCM City-Quang Binh Route this
year," Tung remarked, adding that the route will promote tourism in the province.
Luong Ngoc Binh, the provincial People's Committee chair noted that Quang Binh is
committed to quickly resolving the difficulties faced by investors in order to accelerate
their projects.
http://vietnamnews.vn/economy/252563/quang-binh-seeks-4b-for-40-projects.html
20/MAR/2014 INTELLASIA | THANHNIENNEWS
Another round of gas price hikes greeted Vietnam motorcyclists Wednesday as fuel giant Petrolimex increased prices for the second time this year, citing upward movements on the global market.
The price of 92-RON gasoline, the most commonly used fuel in Vietnam, went up by
20 March 2014 27 / 31
BUSINESS
20 March 2014
VND180 at VND24,690 (US$1.17) per litre, effective 12 p.m. Wednesday.

The diesel price was up VND70 to VND22,840 per litre. The kerosene price remained
unchanged at VND22,630 while fuel oil (FO) now retails at VND18,890 per kilogram,
down VND120 from earlier.
The finance and trade ministries, which approved the hikes, said while world crude
oil prices failed to show a clear upward or downward trend, the price of oil products
is increasing.
They also allowed fuel traders to continue taking VND300 from the fuel price stabilisation fund for every litre of gasoline but stopped the businesses from taking the subsidy for diesel and kerosene.
The fund, established in 2009, gets VND300 from retailers for every litre of fuel they
sell, and is used to subsidise prices during periods of high global prices or when the
government wants to keep prices low.
http://www.thanhniennews.com/business/vietnam-raises-pump-prices-on-globalhikes-24728.html
HK group opens new

garment factory in
Vietnam
US investor joins $4
bil casino project in
central Vietnam
20/MAR/2014 INTELLASIA | THANHNIENNEWS
Intellasia
The Esquel Group of Hong Kong, one of the world's leading producers of premium
cotton shirts, on March 19 inaugurated a new garment factory in Vietnam's northern
province of Hoa Binh.
Speaking at the opening ceremony in Luong Son industrial zone, deputy prime minister Hoang Trung Hai asked the provincial authorities to create favourable conditions
to help the factory operate effectively and make quality products, contributing to the
integration process of Vietnam's garment industry.
The $25 million factory in Hoa Binh is the third built in Vietnam by the Esquel Group,
following two others in southern Binh Duong and Dong Nai provinces.
It is expected to produce about 7 million shirts for export a year and create jobs for
about 3,000 people living in the province and surrounding areas.
The Esquel Group now earns more than $200 million each year from exports produced
at its factories in Vietnam and generates jobs for 10,000 Vietnamese workers.
http://english.vov.vn/Economy/Hong-Kong-group-opens-new-garment-factory-inVietnam/274449.vov
A $4 billion casino project near the historic town of Hoi An is set to move again as a US
investor has jumped in to replace a withdrawing Malaysian company.
Vietnam's leading asset management group VinaCapital said it has made the Iowabased Pacific Peninsula Group, which provides design-through-construction services,
its new partner for the project, news website VnEconomy reported.
Work at the South Hoi An casino had been delayed after Malaysia's hospitality investor Genting backed out in September 2012.
The project was approved in 2010 to take up around 1,540 hectares (2.471 acres) of two
districts in the central province of Quang Nam.
But the new joint venture has received approval to scale the area down to 1,000 hectares but increase the gambling tables by 20 to 90, and to include a golf course as well
The project is expected to also include 500 hotel rooms and is planned to open in 2015.
A statement from local economic management authorities said the US investor is running several similar projects at home and representatives from VinaCapital and the local government had recently paid a visit.
In August 2013, the Communist Party's decision-making Politburo allowed Vietnamese meeting certain criteria to gamble in a casino to be built in the Van Don Economic
Zone in Quang Ninh Province bordering China. Vietnamese tycoon Dao Hong Tuyen
and US firm ISC Corporation are investing in the $7.5 billion project that includes a casino, marinas, a convention centre and golf and tennis clubs.
Currently, Vietnam currently only opens casinos to foreigners or people with foreign
visas.
20 March 2014 28 / 31
BUSINESS
20 March 2014
The five-star casino-resort The Grand Ho Tram Strip, part of a $4.2 billion tourist development aimed at attracting foreign visitors, became the sixth casino in Vietnam
when it opened last July in Ba Ria-Vung Tau Province, some four hours by car from
HCM City.
Foreign investors seeking to operate a casino in Vietnam have to build a large-scale integrated resort including malls, restaurants, entertainment, and luxury hotels. They
also need to invest at least $4 billion and have 10 years' experience operating casinos.
Vietnam's loosening gaming laws are music to the ears of casino developers.
http://www.thanhniennews.com/society/us-investor-joins-4-bil-casino-project-in-central-vietnam-24713.html
Lotte Mart to open

four more
supermarkets this year
Site clearance delays

highway upgrade
Intellasia
Since the opening of the first supermarket in Vietnam in 2008, Lotte Mart has now had
six supermarkets and commercial centers, but it will speed up the tempo by opening
four more retail outlets this year.
Lotte Mart Dong Da, the seventh supermarket-commercial centre of Lotte Mart, will
be opened on March 27 in Hanoi City's Dong Da District. This retail outlet has five
floors with a total area of over 20,000 square meters.
Besides, the Korean-invested retailer plans to open one at Pico Plaza in HCM City's
Tan Binh District on August 8, one at Hanoi centre in Hanoi's Ba Dinh District on September 2, and another in Ba Ria-Vung Tau Province's Vung Tau City on November 30.
A Lotte Mart supermarket will be present in HCM City's Go Vap District early next
year but its location has not been revealed.
As a result, the Lotte Mart system will have 11 supermarkets-commercial centers in Vietnam after seven years.
Lotte Mart entered Vietnam in 2006 via Lotte Vietnam Commercial centre Co., Ltd, a
joint venture with privately held firm Minh Van Trading and Production.
Lotte Mart became wholly foreign-owned in October, 2012 after buying the entire
stake of Minh Van. Besides, Lotte Mart adjusted charter capital of Lotte Vietnam from
$65 million to $120 million.
The South Korean retailer targets to open 60 supermarkets nationwide until 2020 instead of 30 as announced when entering the Vietnamese market.
http://english.thesaigontimes.vn/Home/business/trade/33610/Lotte-Mart-to-openfour-more-supermarkets-this-year.html
A project to upgrade a section of National Highway No 1A in central Quang Ngai

Province is behind schedule because of slow site clearance by contractors.
The project, costing VND4.8 trillion (US$225 million) is being implemented in two
parts. The first, under the build-operate-transfer model with investment capital of
VND2.1 trillion ($98 million), is to widen the road in Tu Nghia, Mo Duc and part of
Duc Pho districts.
The second part, with investment capital of more than VND2.7 trillion ($126 million)
from the State budget, is to upgrade the road in Binh Son, Son Tinh, Tu Nghia, part of
Duc Pho districts and Quang Ngai City.
About 5,400 households will be affected by site clearance. However, in the two months
since work began, only 1,220 households have budged from their sites.
Of the rest, most claim not to know about the project or compensation levels.
Nguyen Thanh Tinh, a resident in Son Tinh District's Phong Nien Thuong Village, said
his house was close to the highway and part of it, including a front yard and a well,
were likely to be eliminated.
"They sent us a paper informing about the site clearance, but said nothing about the
compensation," he said.
"This area has no water plant. If they take the yard, we'll lose the well and have no water."
Last month, the provincial Department of Tranport and the board of traffic manage20 March 2014 29 / 31
BUSINESS
20 March 2014
ment for the project, met with people from 300 households in Son Tinh District. They
informed them that land clearance must be finished by the end of this month, but
many said they were still not sure if they had to move.
Le Van Mui, chair of Duc Pho District's People's Committee, said the committee had
informed people about the project, but investors had yet to deliver legal papers to inform them in detail.
A report from the provincial Department of Transport indicates that four out of the six
construction packages had not even started because they still did not have project
managers or building materials warehouse.
They are the Phuc Loc Corporation, Petro IMICO Construction Invesment JSC, Phuc
Son Group JSC and Vinaconex Construction Investment JSC.
Ha Hoang Viet Phuong, deputy director of the department, agreed that those contractors had failed to meet requirements.
The department will seek to replace contractors who have made no progress.
Last week, at a meeting to boost progress, deputy prime minister Nguyen Xuan Phuc
urged local authorities to take drastic measures to speed land clearance and relocation
by April.
Localities unable to afford resettlement funding should report to the government so
that appropriate agencies could provide assistance, he said.
http://vietnamnews.vn/economy/252595/site-clearance-delays-highway-upgrade.html
Savills Vietnam gets

new director
SUZUKAKU builds a
new factory in Vinh
Phuc
Intellasia
Savills Vietnam has appointed Matthew Powell as the director of its Hanoi office, the
company said on March 18.
Matthew has previously worked for Savills in Hanoi for five years from 2007.He will
manage the Hanoi office across all business lines with a geographical remit that includes North and Central Vietnam.
Matthew has extensive Hanoi experience, particularly with commercial and residential agencies. He has advised clients such as property developers, landlords, office and
retail occupiers, investors and residential buyers.
The company provides comprehensive property services.
Savills Vietnam wasawarded the Golden Dragon Award 2013 as the leading property
services provider in Vietnam. It has the largest and most experienced real estate practice with offices in Hanoi and HCM City.
At the moment, Savills manages around 60 buildings nationwide.
http://bizhub.vn/property/4974/savills-viet-nam-gets-new-director.html
Construction work on a new factory started in the northern Vinh Phuc province's
BaThien 2 industrial park on March 19.
The $5 million project invested by SUZUKAKU Vietnam Co,Ltd aims to produce components for the automobile and motorbike assembly industry for which Vinh Phuc are
calling on investment to promote the support industry.
The factory is equipped with the latest technology and a modern environmentally
friendly production assembly line.
It is the second Japanese investment project in Ba Thien 2 IP, bringing Japan's total
number of projects in the province to 21.
As scheduled, the factory will begin operation in August 2014 and generate hundreds
of jobs for local people.
SUZUKAKU Vietnam general director Kakunori Suzuki, said that building its latest
facility in Vietnam is, to enhance competition with other factories in the US and Japan
and contribute to the SUZUKAKU group's stronger growth.
Ha Hoa Binh, vice Chair of the provincial People's Committee said that Vinh Phuc will
make every effort to facilitate SUZUKAKU Vietnam's operations and co-ordinate with
the company to alleviate any difficulties in the process of carrying out the project.
20 March 2014 30 / 31
BUSINESS
20 March 2014
Binh expressed his hope that the company will mobilise all resources to ensure the
progress, quality and efficiency of the project.
http://english.vov.vn/Economy/SUZUKAKU-builds-a-new-factory-in-Vinh-Phuc/
274431.vov
End
Intellasia
20 March 2014 31 / 31

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