APEC 2017: Startups face numerous difficulties, says VBS delegate

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Too many regulations, too much paper work, too many rules and a lack of capital are among difficulties startups in the Asia-Pacific region are facing, said a US delegate to the Vietnam Business Forum (VBS).

Talking to a Vietnam News Agency reporter on the sidelines of the event, which took place in the central city of Da Nang on November 7, Virginia B. Foote, President and CEO of Bay Global Strategies, emphasised the importance of startups to any economy, adding that it is necessary to set up a regulatory regime to facilitate their activities.

“Part of what we are working on is to help get smaller sums of capital available to startups or groups of startups working together and help each other to get access to loans and capital,” she shared.

According to her, it’s hard for the government to help startups because they know better what they want than the government does.

“To mostly not regulate them, the government needs to sometimes get out of the way,” said Virginia.
She also suggested set up an environment where startups are free to experiment.

Virginia, who used to be the chair of the American Chamber of Commerce in Vietnam, appreciated the VBS’ theme “Vietnam: We Mean Business.”

“With this theme, Vietnam sends a message that Vietnam opens for businesses, welcomes businesses, is working to grow the economy and bring in international standards and open the door to the world,” she said.

Regarding Vietnam’s investment potential, she said most foreign investors in Vietnam, which has attracted foreign investment for 20 years, have done very well.

“Vietnam reputation is quite good,” she said, adding that the country has joined trade agreements and continually raised standards for doing business.

It not only attracts foreign investment but also helps domestic investors, according to her.

Initiated by Vietnam, the VBS was part of the ongoing APEC 2017 Economic Leaders’ Week in Da Nang city from November 6-11.

Established in 1989, APEC comprises Australia, Brunei, Canada, Chile, China, Hong Kong (China), Indonesia, Japan, the Republic of Korea, Malaysia, Mexico, New Zealand, Papua New Guinea, Peru, the Philippines, Russia, Singapore, Chinese Taipei, Thailand, the US, and Vietnam.

It represents 39 percent of the world population, 57 percent of the world GDP and 47 percent of the total trade.

Source: VNA

A prosperous year for Viet Nam’s banking industry

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Profits of many commercial banks this year will hit the highest levels since 2012 thanks to rising capital demand, experts have forecast.

Financial reports from banks showed that although two months still remain until the end of the year, many banks have already met profit targets set for the whole of 2017.

According to the Orient Commercial Bank (OCB), it completed its whole year profit plan within the first nine months, with pre-tax profit of VND789 billion (US$34.75 million) and completion rate of 101 per cent.

As of September 30, 2017, OCB had total assets of VND70.87 trillion, accomplishing 83 per cent of the year’s plan. Total mobilisation was nearly VND56.34 trillion, achieving 85 per cent of the plan; outstanding loans were VND46.84 trillion, fulfilling 99 per cent of the plan; and non-performing loan (NPL) ratio was controlled at less than 2 per cent.

Tien Phong Commercial Joint Stock Bank (TPBank) also announced its financial statement for the first three quarters of 2017, with nine-month accumulated pre-tax profit of VND807 billion, exceeding the whole year’s plan of VND780 billion.

As of September 30, 2017, TPBank’s total assets were VND114.5 trillion, up 28 per cent year-on-year; outstanding loans were over VND67 trillion, equal to 97.8 per cent of the year’s plan and growing nearly 20 per cent; capital mobilisation improved nearly 21 per cent from the beginning of the year, hitting nearly 95 per cent of the year plan; and NPL ratio was less than 0.8 per cent.

An Binh Bank (ABBank) also posted its business results and became the next bank to earn profit matching the whole year’s target in just nine months.

Specifically, in January-September 2017, ABBank attained pre-tax profit of VND429 billion, up 122 per cent year-on-year, and completed 132 per cent of the nine-month plan, equal to 95 per cent of 2017’s target.

Prior to the above mentioned banks, the market also saw an unexpected profit increase for HCM City Development Bank (HDBank), which exceeded the whole year’s plan in just nine months.

LienVietPostBank came close to achieving its profit target for the whole year.

The announced business results made it clear that the year 2017 is unique as for the first time since the Government applied an economic stimulus package in 2009-12, Vietnamese commercial banks have witnessed such rapid progress in profit generation.

Experts attributed banks’ high profits to rising capital demand. According to statistics from the State Bank of Viet Nam, credit growth in the first nine months of this year rose 11.02 per cent against December last year. The increase was much higher than the rates of 10.78 per cent and 10.46 per cent in the same period in 2015 and 2016.

Source: VNS

Guide to Register a Company in Vietnam

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GBS – Creation of a company in Vietnam is slightly different to what an entrepreneur from another country might be used to. While the opportunities for companies based in Vietnam are compelling, the company registration process is more complex and bureaucratic than the USA, Australia and Singapore, for example.

Fortunately, the days of needing 2-3 months to register a company have passed, as has the insistence on local partners. Steady improvements are being made to processing times too. Nonetheless, there is some work to prepare for the formation of a foreign-owned startup in Vietnam. This article provides an overview.

The Company Registration Process in Vietnam

A registered company is key for your startup to enter into contracts, employ staff and collect revenues in Vietnam. A foreign-owned Limited Liability Company (LLC) is the most common company structure for foreign-owned startups in Vietnam.

For this type of company, you’ll go through a two stage process. You’ll need approval from the Department of Planning and Investment (typically in the form of an Investment Registration Certificate, IRC) for your project in Vietnam, and then an Enterprise Registration Certificate (ERC) for the creation of your company. The official timelines are about 45 days for the completion of these stages but preparation is key.

Preparation for Company Registration

Delays are often encountered where the required preparation has not been completed. There are four key considerations:

1) Clarify your Business Lines and Scope
Vietnam’s accession to the WTO required that the nation opened its economy to foreign investment in a wide range of business lines. The majority of tech startups will target ‘software development’ or ‘consulting’ business lines. Applications for these business lines are relatively straight-forward.

However, some business lines remain restricted to foreigners in Vietnam (for example, real estate and finance). Some of these other fields remain subject to case-by-case review or conditional approvals (eg. trading), caps on foreign ownership (eg. tourism) or require licenses and sub-licenses (eg. F&B).

2) Check your Capital and Proposed Scale
Vietnam requires you to prove you’re serious about your business. While there isn’t a strict law on what represents the minimum capital, approval from the Department of Planning and Investment will only be issued with proof of sufficient capital for your nominated business line. This capital must be deposited soon after creating the company.

3) Get a Company Address
Physical proof of your company’s planned location in Vietnam is key to your application. This can present a chicken-and-egg argument, as you will need to be incorporated before you can sign a lease, and you can’t incorporate until you have a signed lease. An MOU with your intended address may suffice, but there are other practical solutions to this issue.

4) Confirm your Ownership & Management Structure
You will need to nominate the owners of the business and verify their credentials. Note that the supporting documents required for a foreign owner that is a company are different to those documents required if the foreign owner is an individual. You might be tempted to form a Vietnamese-owned company to avoid some of these hassles, but remember that this incurs some risks and will complicate the payment of any dividends to foreigners.

The management structure underneath this may vary depending on how many owners your company will have. You may also need to think about a Controller and Chairman at this stage.

Get Expert Guidance

Of course, there are many other options when it comes to company formation, including other company structures (such as a Joint Stock Company) and activity codes (including E-Commerce). Contact GBS for further information on the establishment of a company in Vietnam.

APEC announces first Digital Prosperity Award winner

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The first APEC Digital Prosperity Award was given to Airlala, a Viet Nam-based e-commerce platform, on Tuesday as APEC senior officials began their policy deliberations.

Airlala’s mission is to support local artisans selling products globally, according to a press release issued by the APEC Secretariat.

The APEC Digital Prosperity Award is a special prize to acknowledge the creation of a digital product that uses innovation to increase prosperity and inclusive growth across economies in the Asia Pacific region.

“We are honoured to receive the first APEC Digital Prosperity Award,” said Hai Nguyen, Founder and Chief Executive Officer (CEO) of Airlala. “The award offers great support towards our mission of supporting local artisans and small businesses in the APEC region.”

“Airlala is more than a marketplace, it is empowered by machine-learning that will match international buyers with local artisans and small firms, based on the information buyers and sellers put through the platform,” he added.

The e-commerce platform was selected for the APEC Digital Prosperity Award from a pool of eleven teams that participated in the first-ever APEC App Challenge in May, where Asia-Pacific’s most talented developers competed to build an app for small businesses on the sidelines of the APEC Ministers Responsible for Trade Meeting in Ha Noi.

“Small businesses are key to boosting innovation in the Asia-Pacific region and form the backbone of the region’s business sector,” highlighted APEC Secretariat’s Executive Director Dr. Alan Bollard.

“Given its importance and potential, they must continue to be afforded an environment that enables them to thrive.
“The APEC Digital Prosperity Award aims to motivate the region’s creative entrepreneurial spirit to solve the challenges small business players are facing through innovation and technology,” he added.

The APEC Digital Prosperity Award Selection Committee is comprised of the Asia Foundation, the APEC Secretariat, the Viet Nam Ministry of Industry and Trade, and Google.

“Airlala provides the platform for SME players to expand their businesses outside their home market,” said John Karr, Senior Director of The Asia Foundation’s Technology Programs. “It uses the familiar and proven marketplace model which has high scalability and replicability. This is the reason why we decided to grant the APEC Digital Prosperity Award to Airlala.”

“Small businesses hold great potential. All they need is to have the tool to sell online, sell their crafts, skills and their goods to the world,” added Andrew Ure, Google’s head of Trade and Economic Affairs in Asia Pacific.

“If we’re able to double the number of small businesses in Asia-Pacific that are exporting, it would add 35 million new jobs, and US$1.5 trillion in export sales in the region.”

The winner of APEC Digital Prosperity Award was announced during the Concluding Senior Officials’ Meeting in conjunction with the 2017 APEC Economic Leaders’ Week in Da Nang, Viet Nam.

Source: VNS

The rise and fall… and resurrection of bubble tea in Vietnam

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First appearing in Vietnam around 2002, bubble tea, a beverage made of tea, milk powder, fruit flavours and tapioca balls or jelly, soon become a favourite drink amongst young people.

After a period of being snubbed, bubble tea has quickly returned to its heyday, which raises the question as to whether or not this kind of beverage will go out of fashion similar to other fast food fads, such as spicy noodles, smoked ice cream or a milk jelly dessert known as “che khuc bach”.

Bubble tea used to enjoy strong growth but soon became unpopular in late 2009 due to rumours concerning the origin of its ingredients. 2013 marked the re-emergence of the beverage with franchises from Hong Kong and Taiwan. And from a popular drink, bubble tea has become a chic drink with beautifully designed packaging and a greater variety of flavours.

Many in Hanoi will be stunned at the spectacular growth in the number of bubble tea shops in the last two years. Starting with Ding Tea, now almost all of the major streets in Hanoi are lined with several bubble tea shops.

Ask any young person and they can list the names of various bubble tea brands such as Chatime, Gong Cha, Royaltea, Heekcaa, Coco, Bobapop, Chago and Goky. It is estimated that there are more 1,500 bubble tea shops in Vietnam, belonging to over 100 brands, offering prices from VND40,000 to VND60,000 a serving.

A survey by the market research company Q&Me shows that 73% of the respondents said that they knew about bubble tea. Another survey by the food website Lozi shows that more than half of the respondents said they drank bubble tea at least once a week. Most of the respondents stated that bubble tea is good, refreshing and suitable for younger people.

“Bubble tea is a product of joy because it is both a food and beverage that consumers can drink while chewing enjoyably, making it a favourite amongst young people”, said Lozi CEO Nguyen Hoang Trung, adding that “if in the past, bubble tea was only popular among pupils and students, the drink is now embraced by other people, especially office workers.”

Some investors have said that opening bubble tea shops in Vietnam now is like the fad of opening cafes and selling other refreshments in the past and this mode of business always faces potential risks.

Since consumers usually prefer products that are novel and unique, other kinds of refreshments will quickly sweep through young people as the craze for bubble tea subsides. If shop owners fail to keep up to date with the changes in consumers’ taste, their businesses will run into trouble.

But according to Nguyen Phi Van, executive director of Retail & Franchise Asia, there is still room for bubble tea products in Vietnam because the domestic food and beverage market is projected to continue growing until 2020.

Furthermore, this kind of drink has become a bright spot in the fast-moving consumer goods market in recent quarters, contributing nearly 40% of the industry’s total revenues, according to a report by Nielsen Vietnam.

Van said that another reason for further growth is that young people between 15 and 34 currently account for more than 36% of the Vietnamese population so the country remains a market with great potential for bubble tea.

Source: Nhan Dan

HAG Group: 2018 might be the turning point

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From 2018, the fruit segment is expected to make bigger contributions to HAG, with an annual production output surpassing 334,000 tonnes

Nine-month business results: profit or loss?

According to HAG’s latest consolidated financial statement, the group registered nearly VND4 trillion ($182 million) in net revenue in the first nine months of this year, down 18 per cent on-year, but sharply declining capital costs helped the group post over VND1.26 trillion ($57 million) in cumulative profit during the period, a 65 per cent jump on-year.

In the nine-month period, HAG posted more than VND1.6 trillion ($73 million) in financial earnings, but interest payment pressure was mounting with VND1.1 trillion ($50 million) in interest expenses.

Sales expenses shed VND30 trillion ($1.3 million), business management expenses amounted to VND492 billion ($223 million), and other expenses came to nearly VND203 billion ($9.2 million).

Consequently, the group posted more than VND1.19 trillion ($54 million) in pre-tax profit during the period, a very positive result compared to the minus VND1.18 trillion ($54 million) incurred in the corresponding period last year 2016.

If financial earnings were excluded, HAG, however, incurred a net loss of more than VND400 billion ($18 million) in business activities.

At a meeting with investors on October 31, 2017 at the Ho Chi Minh City Stock Exchange (HoSE), where the HAG ticker is listed, one investor straight-out asked HAG’s leader whether the group’s nine-month business results had ended with profit or loss.

According to Vo Truong Son, HAG’s general director and board member, with VND1.19 trillion in pre-tax profit during the period, if excluding the VND950 billion ($43 million) income from liquidating the sugar production arm to Thanh Thanh Cong Group, HAG was about VND200-300 billion ($9-13.6 million) in profit.

“Though the price of rubber has recovered, creating money flows for us, the profit margin remains low on account of interest payments. Besides, our beef cattle segment is temporarily being narrowed and the fruit production segment is in its initial stages, therefore the group’s ability to cover interest and management costs to reach the break-even point means a success,” Son said.

Will fruit production help HAG to take off?

At the recent meeting with investors, Son said that although only a part of HAG’s fruit growing areas has generated harvests, the group reaped $50 million in revenue from selling 50,000 tonnes of fruit.

The money flows from selling fruit helped the company to slash debts by about VND1 trillion ($45 million).

According to HAG Management Board Resolution dated October 23, 2017, by the end of 2017’s third quarter, HAG has been cultivating more than 17,000 hectares with 20 types of fruits and spices in Laos, Cambodia, and Vietnam.

All the areas follow GlobalGAP standards and HAG has been cooperating with Bureau Veritas, a global leader in certification services, on the acquisition of the GlobalGAP certification for its fruit tree projects.

As of now, 2,000 hectares generated harvest, and 1,364 hectares either have or are going to receive the GlobalGAP certification.

According to Son, this year the group would sell 180,000 tonnes of fruit, gaining a revenue of VND2.1 trillion ($95 million) and VND1 trillion ($45 million) in earnings before interest, taxes, depreciation and amortisation (EBITDA).

From 2018, the fruit segment is expected to make bigger contributions to the group’s development with an annual production output surpassing 334,000 tonnes, generating more than VND7.5 trillion ($341 million) in annual revenue and more than VND4.09 trillion ($186 million) in EBITDA.

A HAG representative said that with the advantages of large-scale production, adherence to GlobalGAP standards, and good infrastructure (83 cold storage facilities in four countries), HAG is in a position to sell directly to wholesalers to save costs.

According to HAG’s management, their core fruit export market is China as this country accounts for 40 per cent of global fruit consumption. The demand for fruit in China is sharply increasing by virtue of the fast-increasing medium-income households, speedy urbanisation, and modern supply chains.

When the financial restructuring become a success?

By the end of September 2017, HAG’s total debt volume came to VND34.6 trillion ($1.57 billion), down more than VND4 trillion ($182 million) compared to the beginning of the year. Short-term loans shed nearly VND3 trillion ($136 million) to stand around VND2.8 trillion ($127 million) and long-term loans dropped VND1.3 trillion ($59 million), to VND20.3 trillion ($926 million).

Son said that this year HAG is set to pay out about VND5 trillion ($227 million) in debts. Next year, as negotiated with the lenders, HAG only needs to pay interest, but will try to pay an additional VND1 trillion ($45 million) in principal. The principal payment will be gradually increasing from 2019.

This means that if the money flows from fruit production are favourable, HAG would see far less liquidity pressure, as the fruit segment’s EBITDA was estimated at more than VND4 trillion ($182 million) from 2018.

How does HAG plan to tackle more than VND23 trillion ($1.04 billion) in loans?

Capital divestment from its properties in Myanmar and selling the rubber arm were reported as two remedies.
Regarding the rubber arm, a HAG source once said that they used to decide on selling the rubber business, and the business partner would have willingly paid VND8 trillion ($364 million) to buy it, but eventually they decided to stop.

The best asset that could be sold in HAG’s capital divestment plan is its property project in Myanmar.

“If we could divest the 30 per cent investment at the current price level, HAG could reduce its debts by an additional VND3 trillion ($136 million). But we may not necessarily be able to sell it because the investment has been basically completed,” Son said.

If the group’s 30 per cent investment capital in Myanmar could be divested as planned, and if fruit production turned beneficial, next year could create a cornerstone in HAG’s development.

Source: VIR

ExxonMobil progressing with largest offshore gas investment in Vietnam

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American oil and gas corporation ExxonMobil is set to reach final agreement with Vietnam over the development of a massive gas project in the East Vietnam Sea by no later than 2019, a company executive said on Tuesday.

The project, code named Blue Whale or ‘Ca Voi Xanh’ in Vietnamese, involves the exploitation of a gas field of the same name that lies 88 kilometers off Vietnam’s central coast.

The Blue Whale gas field has an estimated 150 billion cubic meters of reserves, and is scheduled to begin production in 2023.

“We are actively involved in progressing the largest offshore gas investment ever made in Vietnam,” ExxonMobil Development Company president Liam Mallon was quoted by Channel NewsAsia as telling a business forum on the sidelines of the Asia-Pacific Economic Cooperation (APEC) Leaders’ Week in Vietnam’s Da Nang.

ExxonMobil Development Company is an off-shoot of Exxon Mobil Corporation, an American multinational oil and gas corporation headquartered in Texas.

According to Mallon, the upcoming project would be the corporation’s largest and most complicated offshore investment involving the extraction of gas from a depth of 1,500 meters.

The gas would then have to be transported onshore via an 88km pipeline to power four power plants yet to be built in Vietnam’s central Quang Nam Province, he said.

Vietnamese Prime Minister Nguyen Xuan Phuc (L) speaks at a business summit during the APEC Economic Leaders’ Week in Da Nang, November 7, 2017. Photo: Tuoi Tre

The Blue Whale deal was first announced during then-outgoing U.S. Secretary of State John Kerry’s final visit to Vietnam in January.

Last month, Prime Minister Nguyen Xuan Phuc told Exxon Mobil that he hoped to have the project begin officially at the APEC summit, when U.S. President Donald Trump and U.S. government officials are expected to attend, national broadcaster Vietnam Television reported.

PetroVietnam, Exxon Mobil’s Vietnamese partner, has said the project would contribute nearly US$20 billion to the state budget.

Mallon said the project would be progressed in time for an official launch in late 2019, with specific agreements expected to be reached by the end of this year.

Source: Tuoi Tre News

Vietnam wins top 3 prizes at APEC Photo Contest 2017​

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Three photos taken by Vietnamese photographers have claimed the top three prizes at the APEC Photo Contest 2017.

The winners were announced by the APEC Secretariat’s Executive Director Alan Bollard at the Concluding Senior Officials’ Meeting on Tuesday morning in the central Vietnamese city of Da Nang, according to a press release issued by the APEC Secretariat the same day.

According to the announcement, Tinh Than won the first prize for his photo titled “Sunset Life,” while Huong Vinh with “The Sea Flower” and Dinh Thuong Tran with “Building the Flower Industry” were awarded the second and third prizes.

The Popular Choice Award went to “Up and Forward” by Yu-Han Kung from Taiwan.

In order to reach a wider audience, for the first time this year the contest welcomed entries from Instagram through the APEC Secretariat’s official account, @apec, with the hashtag #TradeforAll.

A special “Influencer Award” was also introduced and the winner was selected by the number of likes the photo received.

The first winner of the award was Oky Arisandi from Indonesia whose photo titled “Harvest Time” received nearly 3,000 likes.

The APEC Photo Contest is an annual initiative of the APEC Secretariat to collect stakeholders’ views on APEC’s messages and priorities.

The contest seeks the public’s visual interpretation of APEC’s priorities for 2017 including promoting sustainable, innovative and inclusive growth; deepening regional economic integration; strengthening small businesses’ competitiveness; and enhancing food security and sustainable agriculture.

The winners were evaluated by a judging panel consisting of world-renowned photojournalists, industry experts and senior public officials including APEC Executive Director Alan Bollard, AFP Photo Editor for North America Eric Baradat, award-winning photographer Palani Mohan, multi-year APEC Photo Contest winner and photographer Truong Huu Hung, and Permanent Deputy Foreign Minister and Chair of APEC 2017 Bui Thanh Son.

Now in its seventh year, the 2017 contest received 2,126 entries from various APEC member economies including: Australia, Brunei Darussalam, China, Indonesia, Japan, Malaysia, Mexico, New Zealand, Papua New Guinea, Peru, the Philippines, Russia, Singapore, Taiwan, Singapore, Thailand, and Vietnam.

Below are the winning photos of APEC Photo Contest 2017:

The photo titled “Sunset Life” by Vietanmese photo grapher Tinh Than which won the first prize at APEC Photo Contest 2017

“The Sea Flower” by Huong Vinh

“Building the Flower Industry” by Dinh Thuong Tran

“Up and Forward” by Yu-Han Kung

“Harvest Time” by Oky Arisandi

Source: Tuoi Tre News

​Vietnam premier highlights solutions for development at APEC business summit

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Vietnamese Prime Minister Nguyen Xuan Phuc has underlined three key solutions for boosting Vietnam’s development during a business summit held in parallel with the ongoing 2017 Asia-Pacific Economic Cooperation (APEC) week.

The first Vietnam Business Summit (VBS) was organized in the central city of Da Nang on Tuesday with the attendance of Vietnamese government leaders and officials, representatives from prestigious international organizations, scholars and hundreds of business influencers from across the Asia-Pacific region.

During his speech at the event, PM Phuc said that Vietnam was determined to build an action-oriented, enabling government in the service of its people and businesses.

“We will continue to pay attention to macro-economic stability, institutional and legal policy reform, sustainable development, job creation and the improvement of living conditions for the people,” he continued.

The head of government highlighted three essential solutions for national development in the coming years.

Firstly, Vietnamese authorities will continue improving the legal, institutional and policy frameworks, encouraging private sector development, strengthening state governance capacity, maintaining macroeconomic stability toward sustainable growth, ensuring social progress, and narrowing the gap between income groups.

“We will focus on investing in infrastructure connecting urban areas to the countryside, mountainous regions and remote areas,” the premier said, adding that Vietnam already pays great attention to the development of healthcare and education, as well as social welfare.

Secondly, the country will strengthen its growing start-up and innovation economy by providing favorable conditions, protecting innovative ideas and new inventions, and ensuring intellectual property rights within the framework of Intellectual Property Law as well as within the FTAs that Vietnam is currently party to.

PM Phuc called on investors to participate, and hoped for the operation of more start-ups and venture funds in Vietnam to further encourage a strong start-up culture.

Finally, focus will be directed toward tax reform to increase the country’s competitiveness, with the aim of meeting the Organization for Economic Cooperation and Development ‘s high standards of transparency, fairness and efficiency.

Vietnam’s corporate income tax is currently at 20 percent and will be reduced to 15 to 17 percent in the near future, the premier added.

Vietnam will also establish tax incentives for investors in priority fields including high-tech industry, supporting industries, high-tech agri-business, and labor-intensive industries.

Answering a question by Virginia Foote from Amcham Vietnam, PM Phuc said that Vietnam would try to achieve a GDP growth target of at least 6.7 percent this year, despite many challenges, including natural disasters.

The country will strive for an average GDP growth rate of 6.5 to seven percent in the coming years, the PM continued, adding that the goal will only be met with a stable political and social situation.

Speaking at the VBS, Victoria Kwakwa, the World Bank’s Vice President for the East Asia and Pacific Region, said that the WB had been supporting businesses in Vietnam, especially smaller-scale ones and those run by female entrepreneurs.

Several countries have recently asked for the establishment of a fund exclusively for female entrepreneurs, Kwakwa added.

According to Philipp Roesler, managing director of the World Economic Forum, the organization has signed an important deal with Vietnam for economic development.

The 2017 Asia-Pacific Economic Cooperation (APEC) week is the culmination of Vietnam’s year-long hosting of APEC meetings.

Running from November 6 to 11, the week’s conferences will be attended by world leaders like U.S. President Donald Trump, Chinese President Xi Jinping, Russian President Valdimir Putin, and Japanese Prime Minister Shinzo Abe.

Source: Tuoi Tre News

Vietnam action agenda must focus on inclusion: APEC Secretariat

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Editor’s note: Denis Hew, Director of the APEC Secretariat Policy Support Unit, spoke to Tuoi Tre News on the challenges to be addressed at the ongoing 2017 Asia-Pacific Economic Cooperation (APEC) Economic Leaders’ Week in the central city of Da Nang.

What are the topline points of the APEC summit most relevant to Vietnam?

One of the key issues for Vietnam is how to come up with an action agenda for economic, financial as well as social inclusion. For many years we have looked at promoting open trade, free trade and globalization, but we know that there are people left behind in this growth, and we also see a concern around job losses and long term unemployment; so growth should be more inclusive.

The action agenda that Vietnam is trying to have endorsed will be very important. In the future, if it is endorsed and implemented, when taking initiatives on trade or investment, we should take into account inclusion so people will not be left behind once we open the market and promote trade.

Another emerging issue is how to promote business opportunities for Micro, Small and Medium Enterprises (MSME); how they are able to utilize technology to move forward on the global supply chain. We have come out with something we call the APEC Internet and Digital Economy, which addresses key areas like how to support and provide business opportunities for MSME.

The other worrying thing is that technology is changing things very quickly. We all know that. Of course the impacts of these new technologies are great in advanced economies. We see new kinds of technology like Uber and Airbnb that change an entire industry and how business is being done, but they can also create job losses. That’s beginning to impact developed economies, and new technology like artificial intelligence will have an impact on jobs in developing nations.

In the past, when we talked about global value chain, what companies were trying to do was to move part of their production to Vietnam and other developing countries where wages were lower. But in the time of new technology, this is not possible because they no longer have to do that: businesses will stick to their own countries and use robots or different kinds of machinery to do the job.

These are things we need to understand and find solutions that address some of these challenges.

Talking of inclusive growth, what is the simplest explanation for this? Is it that growth must be achieved in a way so that ‘no one is left behind’?

That’s right. We want to make sure no one is left behind, especially for the most vulnerable groups of society, children, women or handicapped people. The problem is what kinds of policy can be put in place so that everyone tends to benefit when we increase globalization.

There are things that have been done by a number APEC economies, and we are trying to learn from each other what we can do.

The TPP-11 is being discussed in Da Nang during the APEC summit. Do you think it can be finalized within the framework of this event?

Right now we don’t know because negotiations are still in progress. We only know they are trying to come to an agreement to move forward with the TPP-11.

The TPP is still quite important for Vietnam as it is one of the few developing economies in the TPP. Vietnam will be one of the biggest beneficiaries in terms of global chain connectivity if TPP can move forward.

We have to wait and see what happens next.

What will the upcoming official visit of U.S. President Donald Trump mean to Vietnam-U.S. trade ties?

It’s only the first year of the Trump administration and we are trying to get a clearer understanding of his view. We will know in a few days’ time what his trade policies are.

TPP is a free trade agreement previously involving 12 member states of the Asia-Pacific region, including Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the U.S. and Vietnam, and had been expected to serve as a counterweight to China’s growing regional dominance.

However, the White House announced the United States’ withdrawal from the deal in January, leaving the remaining 11 members to adopt the new name of TPP-11 to continue negotiations without the U.S.

Source: Tuoi Tre News

Vietnam stock hits fresh near 10-yr high

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Vietnam stocks firmed to hit a fresh near decade high on Wednesday, while Singapore held on to two-year highs.

Vietnam shares gained 0.9 percent, with real estate developer Vingroup Joint Stock Company climbing 4.7 percent to an all-time peak.

Global equities were largely muted as concerns of a delay in U.S. tax reform proposal and apprehension over Saudi Arabia’s rising tensions with Iran soured investor sentiment.

“Markets seem unsure which way to go next – equity markets are largely becalmed…,” ING analysts said in a note.

Most Southeast Asian stock markets were muted today, with Indonesia slipping from a record close, as investors took a breather in the absence of market-moving data.

Indonesian stocks slumped 0.3 percent from a record close, dragged by the telecommunications sector, with Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk, down 1.7 percent.

Singapore index was largely flat, with real estate giant CapitaLand Ltd down 1.1 percent and Keppel Corp Ltd giving up 0.9 percent.

Philippine stocks edged 0.3 percent lower, with industrial stocks accounting for majority of the losses, as SM Investments Corp slumped 2.8 percent, and food processor JG Summit HoldingS dropped 1.2 percent.

Real estate stock Ayala Land was the biggest drag on the index, declining 2 percent. Manila-based RCBC Securities analyst Fio De Jesus attributed the stock’s move to profit-taking after it rose 1.3 percent in its previous session on strong nine-month earnings.

Thai shares pared early gains in the session to trade down 0.1 percent ahead of the Bank of Thailand’s rate decision due later in the day. The central bank is expected to leave its benchmark interest rate near record lows again, with the current level seen supporting the country’s economic recovery while inflation stays benign.

Source: Reuters/Karthika Namboothiri

Telco giant Viettel named biggest tax payer in Vietnam, followed by Japan’s Honda

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The country raked in $4 billion in corporate tax from its 1,000 biggest contributors in 2016.

A list of the 1,000 businesses that paid the most tax last year in Vietnam has been released, and includes three foreign firms in the top 10.

Military-run telco giant Viettel topped the list after earning a pre-tax profit of nearly VND40 trillion ($1.76 billion), followed by Japanese motorbike and automobile producer Honda and state-owned energy group PetroVietnam, according to a report by the General Department of Taxation.

Viettel is Vietnam’s largest telecom firm in terms of earnings, and operates mobile networks across 10 countries in Southeast Asia, South America and Africa with further plans for expansion. UK-based Brand Finance ranks its brand value seventh in Southeast Asia and 93rd globally.

Japanese automobile maker Toyota and Dutch brewery Heineken were also named among the top 10 biggest tax payers in Vietnam last year.

The rest of the top 10 was made up of state-owned enterprises: telecom firm MobiFone, major lenders Vietcombank and VietinBank, dairy giant Vinamilk and the Airports Corporation of Vietnam.

Details of how much tax each company paid were not released, but the report said that the 1,000 biggest payers contributed more than VND90 trillion (nearly $4 billion) to the state budget in 2016, up 12 percent from the previous year.

The top 10 accounted for nearly 75 percent of that figure, it said.

Vietnam imposes a corporate tax rate of 20 percent.

Source: Nguyen Ha

Vietnam, Canada establish comprehensive partnership

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Canadian PM Justin Trudeau has already stamped his mark on an official visit.

Vietnamese Prime Minister Nguyen Xuan Phuc and his Canadian counterpart Justin Trudeau signed a comprehensive partnership agreement at a press briefing held in Hanoi on Wednesday, marking a milestone in Vietnam’s partnership with the G7 member.

The two leaders, who met previously at the G7 Summit in Japan in May last year, agreed to enhance cooperation for economic development and peace in the region.

Phuc expressed his support for Canada’s engagement in Asia, while Trudeau said his government will not be too hasty before making a decision on the in-the-balance Trans-Pacific Partnership agreement.

The fate of the trade deal has been left hanging after the Trump administration withdrew the U.S. from the pact at the start of the year.

Trudeau said Canada is willing to develop trade relations but will not rush to push the TPP forward.

He said his government will study the agreement to ensure it benefits the Canadian people.

Trudeau, 45, arrived in Hanoi on Wednesday morning for his first official visit to Vietnam, which will include a trip to Ho Chi Minh City on Thursday.

He will join the APEC Summit on Friday in Da Nang, when U.S. President Donald Trump, Japan’s Shinzo Abe and China’s Xi Jinping are expected to speak at the CEO Summit. The Leaders’ Meeting, the most important event of the summit, will be held on Saturday, gathering leaders from the 21 APEC economies.

Trudeau first visited Vietnam as a traveler in 1995. He is the second Canadian prime minister to visit Vietnam since the two countries established diplomatic relations in 1973.

Three agreements worth $60 million are expected to be signed during his visit.

Vietnam is Canada’s biggest trade partner in Southeast Asia. Two-way trade has been increasing steadily between the two counties, reaching $2.34 billion in the first eight months of 2017, a 20 percent increase from the same period last year.

Source: Staff reporters

Vietnamese president calls on APEC businesses to dig deeper for inclusive growth

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Economic growth and the productivity of the bloc have slowed while inequality has risen.

Businesses from APEC economies should do more to help the Pacific Rim to flourish, Vietnamese President Tran Dai Quang said at a forum held today in central Vietnam as part of the ongoing Asia Pacific Economic Cooperation Summit.

Thanks to contributions from businesses, both global and macro, the Asia-Pacific region now accounts for 60 percent of world’s gross domestic product (GDP).

“APEC has become an effective mechanism for businesses to develop,” Quang told the CEO Summit, that opened on Wednesday and will run until Friday in Da Nang.

The bloc has made remarkable achievements over the past 30 years and saved hundreds of millions from poverty, he said, while calling for more contributions from businesses to boost the development of the bloc.

APEC’s top priorities should be connecting member economies and the global economic recovery, while continuing to work as a pioneer of free world trade and achieving the goals that APEC leaders set when they gathered in Indonesia in 1994.

Those goals included achieving free and open trade and investment by 2010 for industrialized economies, and by 2020 for developing economies, by reducing trade and investment barriers and promoting the free flow of goods, services and capital.

He urged all businesses to support inclusive growth, social development, ensure food, water and energy security and spread the spirit of entrepreneurship and startups, while increasing economic empowerment for women.

For a better future, APEC members should try harder to realize its vision of a peaceful, stable, dynamic, connected and prosperous Asia-Pacific, Quang said.

Vietnam will continue its transformation with a focus on the completion of market economy institutions, the development of human resources and infrastructure, and deeper international integration, he added.

The CEO Summit has gathered more than 2,000 local and foreign businesses and is one of most important events of the APEC Summit, which is being joined by leaders from the 21 Pacific Rim nations and thousands of businesspeople, including Facebook COO Sheryl Sandberg, UPS CEO David Abney, and chairman and CEO of J.P. Morgan Asia Pacific Nicolas Aguzin.

Speaking at the opening ceremony of the CEO Summit, Vu Tien Loc, chairman of Vietnam Chamber of Commerce and Industry (VCCI), shared the same views as the president.

APEC has achieved a lot over the years, but is now facing certain difficulties as economic growth and the productivity of the bloc have slowed while inequality has risen, leading to an increase of trade protectionism that is causing more obstacles for the globalization progress.

“Further development and integration for mutual prosperity has now become a vital requirement for all APEC economies,” Loc said.

In order to do that, governments and businesses should work together to create a good environment and foundation for very-small, small and medium companies, companies with female leaders, and agricultural development, he said.

Source: Staff Reporters

Typhoon Damrey kills 106 in Vietnam, reservoirs brimming

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As residents of central Vietnam are cleaning up after Damrey, more flooding looms with water being released from 49 reservoirs.

Vietnam’s deadliest storm this year, Typhoon Damrey, has killed 106 people, while dozens of dangerously full reservoirs release water as the southeast Asian nation prepares to host a regional summit.

As of Wednesday, 106 people were known to have died because of the year’s 12th major storm, which struck on Saturday, leaving 25 missing and 197 injured, the country’s search and rescue committee said.

Authorities said vigorous efforts were being made to avoid flooding around the central city of Da Nang, which will host U.S. President Donald Trump, China’s Xi Jinping and Russia’s Vladimir Putin among Asia-Pacific leaders at this week’s summit.

Water was being released from at least 49 reservoirs that were dangerously full, the Steering Committee for Disaster Prevention said, with levels at major reservoirs being constantly monitored.

As much as 1,700 mm (67 inches) of rain was recorded at one weather station in the week to Monday. Rain is expected to continue until Wednesday before slackening off on Thursday.

Meetings of the Asia Pacific Economic Cooperation (APEC) grouping began on Monday, with Trump, Xi and Putin due to join other regional leaders at the main event on Friday and Saturday.

The rain has not disrupted the meeting schedule, but the leaders’ spouses may not be able to make an excursion to the UNESCO heritage town of Hoi An planned for Saturday.

Vietnam’s long coastline makes it prone to destructive storms and flooding. Floods killed more than 80 people in the north last month, while a typhoon wreaked havoc in central provinces in September.

The storm hit a key coffee-growing region of the world’s biggest producer of robusta coffee beans near the start of the harvest. But farmers in Dak Lak, the heart of the region, said the damage was limited.

Source: Reuters/Mai Nguyen

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