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of the upgrade of Tien Sa port into the list of projects benefiting from Japans ODA in the 2013 fiscal year. Danang port to be modernised The volume of container goods and tourists through Tien Sa port records an annual increase of 20 percent and the capacity is expected to reach 170,000 TEUs next year. The Da Nang City Peoples Committee has affirmed that the expansion of Tien Sa port in the second phase will help promote the development of Da Nang and the East-West Economic Corridor, in which it is a terminal and a main gateway to the East Sea for transit goods among countries along the corridor. cadn.com.vn The first geothermal power plant project licensed in Vietnam On September 23, The Quang Tri provincial Peoples Committee has granted an investment license for a project to build a 25MW geothermal power plant in Dakrong district. The project aims to promote exploration for new sources of energy in the near future. Ta Huong, Deputy Chairman of the Vietnam Thermal Association, says Vietnam has the potential for developing geothermal power in almost all provinces and cities nationwide, especially in Phu Tho, Quang Binh and Quang Tri. The geothermal power plant, which is said to be environmentally friendly, can operate 24 hours a day without being affected by weather conditions. However, it is difficult to develop

this energy source because we need the modern technology, huge investment, estimated up to 2,5 million euro/MW. The US top the list with its geothermal power output accounting for 32 percent of all geothermal power produced in the world.

An almost 3 billion VND scheme has been adopted to upgrade the management and utilisation system of Da Nang port into a modern container port in central Vietnam. Thanks to the system, the port will able to better manage container goods and facilitate ships in handling goods. Under the strategy from now until 2015 and with a vision to 2020, Da Nang port will be upgraded into one of Vietnams leading ports pursuing container and tourist ship development. By 2015, the port is expected to handle 6 million tonnes of cargo and welcome 250,000 TEUs for container cargoes.

baodientu.chinhphu.vn Inauguration of the starch processing plant post-

On the morning of 26th October, Vietnam Mingyang Biochemical Co., Ltd. held the inauguration of Phase 1 and the start of Phase 2 of the poststarch processing plant in the Industrial Park B, Nhon Hoi Economic Zone. The inauguration was attended by the Chairman of Binh Dinh Peoples Committee, Mr Le Huu Loc, representatives of the investor, relevant department and sectors and more than 20 partners of the company. After more than two years of construction, the plant with capacity of 100,000 tons per year of the Vietnam Mingyang Biochemical Co., Ltd - China has completed its phase 1, with the designed capacity of 30,000 tons of post-starch per year and a number of other products. At

Da Nang city authorities have proposed to include the second phase

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the same time, the company has started the Phase 2 with the items of building more production lines to achieve a capacity of 100,000 tons/year; construction of storage of raw materials and goods. According to theplan, the second phase will be completed and put into operation by the end of 2013.

are, the more investors come to Vietnam. At the end of the meeting, the representative of Thai Foods Group had general information about foreign direct investment (FDI) in Central Vietnam in particular and Vietnam in general as well as incentive conditions in such areas that they care. They also desire to have close cooperation with IPCC in strengthening promoting project. One again, Mr.Van emphasized that IPCC will follow and support Thai investors and enterprises until their projects come into operation. N. Phuong IPCC Surveying and speeding up in investment promotion into Nam Giang District, Quang Nam Province On October 18th, 2012, the delegation of Investment Promotion Center for Central Viet Nam (IPCC), including leader and investment consultancy division had a meeting with the Peoples Committee (PC) of Nam Giang District, Quang Nam Province for speeding up investment promotion activities into the area.

Thai Investor explores investment opportunities in Central Vietnam On October 3rd, 2012, the leader of Investment Promotion Center for Central Viet Nam (Foreign Investment Agency Ministry of Planning and Investment) and Investment Consultancy Division met the representative of Thai Foods Group (Thailand). Thai Foods Group aimed at making study on investment climate and opportunities in agro aquaculture in Central Vietnam. At the meeting, Mr. Trinh Minh Van Director of IPCC presented potential and investment opportunities in Central region, including List of Projects Calling for Investment into agro-aquaculture and forestry that the representative is interested in. The representative also introduced the project investing in agroaquaculture. Besides, they would like to study investment incentive when expanding business as well as their desire to invest in Central Viet Nam. Up to Sep 20th 2012, Thailand has ranked in the list of Top Ten investors in Vietnam with 292 projects, nearly U$ 6 billions of total registered-capital. This is an encouraging figure which show that Vietnam is one of the attractive destinations for Thai investors. The more attractive investment climate and incentive policies, mechanism

At the ceremony, the Chairman Le Huu Loc appreciated the company's efforts in ensuring the project progress to bring the first phase of the plant into operation. The project will create jobs for local labor and open up a new page of the economic cooperation between Binh Dinh Province and Guangxi in the future. In the meantime, the Chairman Le Huu Loc encouraged the investor to comply with its commitment to environmental protection, use of labor ... The project has a total investment of USD 50 million. After construction and at operation, the plant will produce the post-starch products, products for manufacturing paper, food, animal feed, building materials and pharmaceutical products. IPC Binh Dinh

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At the office of Nam Giang District PC, Mr. A Lang Mai the Chairman and representative of related divisions such as Natural Resources & Environment, Finance & Planning, Economic & Infrastructure Affairs, etc gave the IPCC delegation a warm welcome. Mr. A Lang Mai presented some information about the socioeconomic situation in Nam Giang District. He also introduced favorable investment incentives as stipulated in the Law on Investment as well as mentioned difficulties in calling for investment into the district. He expressed desires to speed up and improve the efficiency of investment promotion in order to raise living standard of local people in particular and contribute much more to the state budget in general. According to him, investment promotion is one of important ways to boost socio-economic development. After the meeting, the IPCC delegation carried out a site visit to some locations chosen by Nam Giang District PC. This site visit helped the IPCC delegation get an overview and define good and suitable destinations meeting investors requirements for speeding up investment promotion activities in such a difficult area with potentials as well as challenges. Leader of IPCC affirmed that IPCC will give necessary supports in investment promotion and calling investors to do business in Nam Giang District. As the site visit ended, the Director of IPCC and the Chairman

of Nam Giang District PC agreed that two sides will coordinate closely in investment promotion in order to strengthen attraction of investors into Nam Giang District in particular and Quang Nam Province in general. N. Phuong IPCC Solving Difficulty for Japanese Investors The Foreign Investment Agency recently held a workshop to review the survey results and work on solutions to problems Japanese enterprises in Vietnam are facing. The workshop is an important step to improve the investment environment; support policies and address the problems faced by Japanese firms in Vietnam.

prerequisite for the Ministry of Planning and Investment to evaluate and research to improve the system of policies and laws to solve difficulties for Japanese enterprises.

According to the Foreign Investment Agency, by September 20th 2012, Japan had 758 direct investment projects effective in Vietnam with a total registered capital of US$28.6 billion, ranking 1st among 96 countries and territories investing in Vietnam. Japanese investment projects distributed across 63 provinces, however focusing in the big cities such as Ho Chi Minh City, Ba Ria Vung Tau, Hanoi, Dong Nai and Binh Duong. Mr Hirokazu Yamaoka, Chief Representative of the Japan Trade Promotion Organization (Jetro) evaluated that trade and investment relations between Vietnam and Japan have developed based on sustainable political platform. This is shown in the recent growing number of Japanese investors to Vietnam seeking business opportunities. A new addition is that not only big investors, but also small and medium enterprises (SMEs) of Japan also view Vietnam as potential and promising market for long-term

According to Deputy Minister of Planning and Investment Dao Quang Thu, the Ministry conducted a survey and monitored 500 Japanese business practices as well as the difficult problems encountered when doing business in Vietnam. In particular, aspects such as the implementation of the provisions of the Enterprise Law and Investment Law, the application of accountancy policies, labour policies, wages, land and building are researched. Results of the survey will be an important

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investment plans. However, Japan also wants the Vietnamese Government to have more specific plans for reform administrative procedures, laws and regulations on accounting, auditing, taxation and regulations on investment and business to create more favourable conditions for Japanese investors. In addition, Japanese firms also said that the rapid development of industrial parks in the development orientation of the Vietnamese Government has left many Japanese enterprises facing labour shortage. This led to difficulty in the recruitment of local human resources, and finding trained workers and skilled engineers. Japanese businesses hope the Vietnamese government will build a practical training program at the request of the industry to raise the quality of vocational schools, training programs and technical workers to meet actual needs, focusing on practical skill. In particular, a feasible measure from Japanese business is to establish their training schools in Vietnam. In addition, Japanese companies also expect to have stable power supply, and upgraded information and industrial infrastructure. vccinews.com Danang South Businesses 2012 Seminar Korea

22/12/2012), in the morning of Oct 12, 2012, Danangs People Committee in cooperation with Vietnam Chamber of Commerce and Industry (VCCI) in Danang and Korea Chamber of Commerce and Industry (KCCI) hosted Danang South Korea Businesses 2012 Seminar.

The seminar witnessed the participation of Mr. Vo Duy Khuong Vice Chairman of Danangs People Committee, Mr. Kim Ho Kyun Director of KCCI, Mr. Kim Dae Ja Commercial Counselor of the South Korean Embassy in Vietnam and representatives of the related departments, existing Korean investors in Danang and local enterprises dealing with Korean businesses. At the seminar, the leader of IPC Danang introduced to the enterprises about the current status and the vision for socio-economic development towards 2020 of the city through the presentation named Danang the city of innovation. Also, Danang Tax Bureau made a detailed explanation on tax-related regulations in force since June 2011. As of September 2012, there were 27 foreign direct investment projects from South Korea to Danang with a total registered capital of more than US$700 million and 14

representative offices in Danang. South Korea is currently the second largest investor in terms of registered investment capital among 30 countries and territories having investments in Danang, mainly in real estate, manufacturing, textile and garments, etc. The export turnover from Danang to South Korea in the first half of 2012 reached US$4 million with the items of seafood, textile and garments, toys, etc. The import turnover from South Korea into Danang is US$17 million, mainly in pharmaceuticals, machinery, chemicals, etc. Mr. Kim Ho Kyun affirmed that with current advantages, Danang would certainly attract more investments from Korean enterprises in the coming time. He committed that KCCI will play as a bridge to call for more Korean enterprises to invest in Danang, especially in the fields of ICT, hi-tech industries, etc. In the discussion section, Korean enterprises raised many questions and suggestions on the issues of promoting the image of Danang City in South Korea, tax policies, land rental price, legal procedures in opening representative offices, etc. On behalf of Danangs People Committee, Vice Chairman Vo Duy Khuong highly appreciated the recommendations of Korean enterprises, gave feedback to their questions and asked the related departments of Danang City to resolve remaining problems in a timely manner to facilitate the businesses operation in Danang. IPC Da Nang

On celebrating the 20th anniversary of the establishment of Vietnam South Korea diplomatic relationship (22/12/1992

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Nhon Hoi EZ: Actively Calling for Investment into Key Projects Nhon Hoi Economic Zone (EZ) was established under the Decision 141/2005/QD-TTg of the Prime Minister. Recently, it has done a huge amount of work and achieved initial success in attracting and promoting investment. The development of Nhon Hoi EZ contributes to the exploitation of new potential, and exerts leverage for Binh Dinh province to rise and integrate into the countrys development.

Mr Man Ngoc Ly, Head of Management Board of Economic Zones of Binh Dinh province, said that so far, Nhon Hoi EZ has basically finished land use planning, mapped out the detailed plan of using land for non-tariff zone, industrial parks, seaports, tourist areas and its new urban area. At the same time, Nhon Hoi EZ Board of Management implements land clearance compensation of a project area of above 2,200 hectares. Industrial parks in the economic zones have been basically built and are able to attract manufacturing projects. Lately, Binh Dinh province has focused on implementing the project of building a road from Quy Nhon city to Nhon Hoi EZ (located on Phuong Mai Peninsula) with the Thi Nai Bridge, 2,500 metres in length, being the highlight. Besides, due attention is paid to other traffic projects on retracing routes, widening the provinces road 635 from Phu Cat airport straight to the north area of the EZ, and building a new road named DT 639 from the EZ along the coast to the north area of the province. Those projects have basically addressed the outbound traffic of the EZ. Currently, Nhon Hoi EZ is served by Quy Nhon seaport cluster, eight kms away from the EZ and one of the ten major seaport clusters of the country, with facilities for 3,000-tonne ships and currently approved by the Ministry of Transport to be invested in flow dredging to be available for 5,000tonne ships.

Inner infrastructure of the EZ has also gradually completed. In the EZ, there is a 5 kilometre road from Hoi Thanh to Nhon Ly, linking Nhon Ly commune with its neighbouring area, a mountain route connecting Nhon Hoi and Nhon Hai, and a main road (in phase one) in the NorthSouth direction, 80 meters wide and 15 kilometres long, running through main functional areas of the EZ. Up to now, Nhon Hoi EZ has attracted 36 investment projects with registered capital of VND33,520 billion, 9 of which are foreign invested, with total registered investment capital of US$522 million. In 36 projects issued investment certificate, eight have come into operation; others are in the phase of basic construction. In 2012, it is expected that two more projects will come into operation. The total capital of those projects is estimated to be around VND2,237 billion. In the EZ, 13 projects have rented 62.08 hectares, and four manufacturing projects have come into operation. Additionally, some large-scale projects have been approved to invest in the EZ including a refinery and petrochemical project with the capacity of 30 million tonnes per year and invested capital of US$21.5 billion, a pigment titan manufacturing project with the capacity of 50,000 tonnes per year and invested capital of US$ 200 million and project investing in Tan Thanh tourism zone which covers an area of 80 hectares with invested capital of VND1,600 billion.

Nhon Hoi EZ is currently considered a driving force for the economic development of Binh Dinh Province. A major advantage of this EZ is the diversity of traffic types available, from Quy Nhon international seaport, roads such as Highway 1A and Highway 19, the Thong Nhat railway to Phu Cat Airport with many direct flights from Hanoi to Ho Chi Minh City and vice versa daily. In comparison with many other EZs, the infrastructure construction of Nhon Hoi EZ is highly appreciated, fully qualified to support projects in a variety of sizes and investment sectors.

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Mr Man Ngoc Ly said that to accelerate the building of essential infrastructure and enhance the ability to attract investment into Nhon Hoi EZ, in the time to come, it is critical that Binh Dinh provinces authority focus on building infrastructure, especially Nhon Hoi general seaport, promote investment and create favourable conditions for big economic groups to attract investment so that other enterprises follow suit. vccinews.com Industrial, Economic Zones: Focusing on Projects Generating Momentum Industrial zones in Phu Yen province, especially Nam Phu Yen Economic Zone, are playing a more and more crucial role during the integration process of the province. In the recent past, the growth of the local industrial and economic zones has greatly contributed to the industrialisation and modernisation of the local economy and helped boost the industrial capacity of the province.

Phu Yen Economic Zone is among the 15 economic zones in coastal areas. Located in Dong Hoa District of Tuy Hoa City, Nam Phu Yen Economic Zone is a collective economic zone, boasting modern urban infrastructure with an area spanning 20,730 ha and various functional zones such as nontaxation and taxation zones. The Economic Zone has within it many different industries producing core products with high level of quality and competitiveness, namely industry, tourism and agriculture, providing a strong foundation for sustainable development. Hoa Hiep Industrial Zone is among the industrial zones whose establishment was approved by the Prime Minister in August 1998. The first phase of construction attracted 23 projects with total registered land area of 53.91 ha and invested capital of VND1,173 billion and US$17.095 million. The second phase of construction, located in Hoa Hiep Trung and Hoa Hiep Nam village (Dong Hoa) so far has attracted one investment project with total registered capital of US$13 million. An Phu Industrial Zone alone attracted 30 investment projects with total registered land area of 31.11 ha and total invested capital of VND288 billion and US$1.86 million. Dong Bac Song Cau Industrial Zone has 21 projects with total registered land area of 73.6 ha and total invested capital of VND579 billion and US$1.111 million. In 2011 and during the first six months of 2012, the Management

Board of the Economic Zone has accepted six investment project application portfolios and granted Investment License for projects at Hoa Hiep and An Phu Industrial Zone. An Phu Industrial Zone granted investment licenses for four projects with a land area of more than 53,824 sq. m and Hoa Hiep Industrial Zone granted investment licenses for two projects with a land area of more than 113,649 sq. m. As of now, there are 77 registered projects in the province with a total registered land area of more than 2,617.6 ha and invested capital north of VND12,041 billion and $US1,733 million respectively. In general, the current infrastructure at these industrial and economic zones satisfies investor demand. There are currently 61 projects operational with the 2011 accumulated revenue of VND3,250 billion; export turnover of $US123 million; contribution to Governments budget in the amount of VND47.5 billion. In the first six months of 2012 alone, accumulated revenue at these industrial zones were more than VND1,411 billion; export turn-over of US$ 47.13 million; contribution to Governments budget in the amount of VND15 billion. Mr Truong Phuoc Cuong, Director of the Management Board of Phu Yen Economic Zone commented, In the next few years, given a lacklustre global economic climate, investment attraction and business operation at Nam Phu Yen Economic Zone and local industrial zones will continue to face numerous

Phu Yen economic zone zones with facilities, ready

currently has one and three industrial almost complete for investors. Nam

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challenges. Nevertheless, based on the 2011 and the first six months of 2012 statistics, business operation within the industrial zones is expected to remain relatively stable and even slightly improve. Investment in the infrastructure at the oil refinery in Hoa Tam Industrial Zone as well as the establishment of Hoa Xuan multi-industry industrial zone will help attract additional new projects.

improving the efficiency of attracting investments into the Nam Phu Yen Economic Zone and industrial zones, both in terms of quantity and quality. The Board will also encourage and promote activities to attract more investment; actively cooperate with provinces, responsible governmental agencies, trade commissioners, foreign investment and commerce consulting agencies to hold events to promote commercial activities in the local economic and industrial zones. The Management Board will try its best to maintain and improve the formalities and reform procedures, creating the more conducive environment for investors. vccinews.com

sign is the export of foreign investment enterprises (including crude oil) increased by 32,2% compared to the same period last year . By sectors: The processing, manufacturing sector continued to have the lead with 66,2% of the registered capital, the real estate sector ranked second accounting for 17,6% of the registered capital. The third is wholesale, retail and repair. Particularly, telecommunications attracted over US$402,3 million of registered capital. By partners: There were 52 countries and territories investing in the first 10 months of 2012, led by Japan the total registered investment capital obtained US$4,92 million, accounting for 46,9%; the second were South Korea, the total registered investment capital of US$ 936,7 million; the third were Samoa with the total registererd investment capital of USD899,8 million, accounting for 8,6 %,followed by Singapore, the total capital reached US$675,4 million; the British VirginIslands ranked fifth, the total registered investment capital of US$ 623,38 million. By areas: The areas with favorable conditions located in the key economic Southern and Northen region have the lead in attracting investment, Binh Duong ranked first (US$2,17 billion of registered capital), Ho Chi Minh city ranked second (US$1,12billion of registered capital), the third were Hai Phong (US$1,08 billion of registered capital), the fourth were Dong Nai

Also according to Mr Cuong, the result from recent investment attracting activities in Nam Phu Yen Economic Zone and local industrial zones is encouraging. However, most of the projects are small-scale; there is not yet a project which has the potential to generate momentum for the socioeconomic development of the province. Business activities within the industrial zones are separated, utilising outdated technology, leading to a low level of competitiveness and little contribution to the socioeconomic development of the province. In order to resolve these limitations to attract more infrastructure development projects, projects that can create momentum on the socio-economic development, the Management Board will focus on

Foreign investment situation in the first 10 months of 2012 in Vietnam According to the report of the Foreign Investment Agency, Ministry of Planning and Investment, foreign direct investment in the first 10 months of 2012 has continued to have positive changes, although the socio-economic situation in the country has had many difficulties and challenges but realized investment capital of 10 months still reached US$ 9 billion (equaling 98.9% over the same period last year).In which, although the newlyregistered capital was only 63.3% over the same period, the additional registered capital increased by 12.3% over the same period. Another good

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(US$1,06 billion of registered capital) and followed by Hanoi (US$984,6 million of registered capital) FDI in Central Vietnam In the first 5 months of 2012, 13 provinces in Central Vietnam from Quang Tri to Khanh Hoa (including 5 Highland provinces) have attracted 57 new projects with the registered capital of over US$ 367 million, equal to 92% of the projects and 61% of the registered capital compared with the same period last year. Khanh Hoa province topped the list of 3 largest FDI recipients with the registered capital of US$ 190 million. Da Nang ranked the second with over US$ 110 million and followed by Lam Dong province with more than US$ 24 million. FDI in Central in the first 10 months of 2012

FDI in Central Vietnam by sector (in the first 10 months of 2012)

By late October 2012, this region has attracted 812 FDI projects with the registered capital of over US$ 24,2 billion, accounting for 5.69 % of the number of projects and 11.61% of the registered capital compared with the whole country. Among them, Central Key Economic Zone has attracted 515 projects with the registered capital of over US$ 15.5 billion, making up 64% of the whole region. IPCC

US$4.68 billion, accounting for nearly half of Foreign Direct Investment (FDI) injected into the country. To find out what things made FDI flows from Japan into Vietnam increased so sharply, Vietnam Economic News interviewed Counselor Le Huu Quang Huy, the Head of Investment Promotion Office of the Vietnamese Embassy in Japan on the sideline of seminar "Experience exchange in Investment Promotion in the Northern region" held by the Ministry of Planning and Investment on October, 16. As the Head of Investment Promotion Office of the Vietnamese Embassy in Japan, can you tell us what has made FDI flows from Japan into Vietnam increased so sharply recently? First of all I have to say Japan and Vietnam are strategic partners and in economic relations, Japan always regards Vietnam as its leading partner in terms of ODA, FDI and trade. The Japanese Government also showed consistency in supporting Vietnam by the increase in ODA commitment to Vietnam in 2010. Japanese and Vietnamese cultures also have many characteristics in common and the people of both countries are friendly and helpful. After the earthquake and tsunami incidents in Japan in March 2011, the Japanese also felt the affection showed by the Vietnamese people. In addition, Vietnam has a favorable geographical position, stable political state, high GDP

Retaining Vietnams attractiveness to Japanese investors FDI projects in this region have focused on industry-construction sector with the registered capital of over US$ 311 million (accounting for 84,83%), followed by trade and service sector with more than US$ 38 million (10,45%) and the registered capital of USD 17 million in agriculture-forestry-aquaculture sector. From fourth position, in 2012 Japan has risen to become the first among 96 countries and territories investing in Vietnam with over 14,000 projects totaling registered capital of more than US$200 billion. In the first nine months of this year, Japan continued to affirm its leading position among foreign investors in Vietnam with newly registered and added capital totaling

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growth rate, young population and the legal framework to attract FDI is getting more and more complete. The traffic routes between two countries is quite favorable with about 46 flights from Vietnam to Japan every week. Particularly, undertaking investment abroad is also the demand of the Japanese economy due to high appreciation of the Yen and high enterprise income tax. These are favorable conditions that make Japanese FDI flows into Vietnam increased sharply recently.

industries, we should draft overall development plans to attract investment in main areas. We also have to overcome the language barrier by training Japanese for Vietnamese workforce, even workers to help Japanese enterprises during their operations in Vietnam. A new wave of Vietnamese investments in Japan have recently risen but the efficiency was not high. So what should Vietnam do to undertake investments successfully in Japan? It is true that many investment promotion delegations from Vietnam has recently been to Japan to seek investment chances. According to the Vietnamese Embassy in Japan, as many as 64 Vietnamese investment promotion delegations came to Japan in the first half of this year. To undertake investments successfully in Japan, localities should make preparations from three to five months in advance. They should not go in large numbers and choose the right time for investment promotion activities. For example, they should not promote business with Japan in August since this is one of Japan's major holiday seasons. On the other hand, we need diversify cooperation with other Japanese investment promotion agencies such as banks, research institutes, associations and even local commercial departments but not necessarily to focus only on the Japan External Trade Organization (JETRO)./. Vietnam Economic News

Danang Accelerating Development of Key Economic Sectors

Mr Van Huu Chien, Chairman of the Danang People's Committee, has granted an exclusive interview to Vietnam Business Forum on the citys development of key economic sectors in the coming time. Could you tell us Danang Citys advantages when it draws investment capital into industrial zones, and incentives that businesses will get when they invest in Danang High Tech Park? Danang Industrial Park is known as one of industrial zones situated on a prime location and planned to ensure stability and sustainability of State policies. Its technical infrastructure system is invested synchronously and its social infrastructure is cared properly. The Management Board of Danang Industrial Park also makes every effort to build a friendly, transparent and effective investment environment. Besides, Danang also possesses a lot of other potentials and strengths. Hence, these factors make Danang Industrial Park a centre of investment attraction in central Vietnam. Investors in Danang High Tech Park will be granted highest

Many countries in the Southeastern Asian region are currently competing with Vietnam to attract FDI, especially Myanmar. This has put some challenges to Vietnam in attracting FDI from Japan. In such a context, what should Vietnam do to be always attractive to Japanese investors? There are some issues seen as "barriers" for FDI attraction into Vietnam, including undeveloped infrastructure and support industries and the lack of workforce who is proficient in the use of Japanese. To resolve these problems, we have to promote investment in infrastructure, especially the electricity infrastructure. As for the support

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investment incentives and supports. Danang City issued clear policies on investment activities in Danang High Tech Park for domestic and foreign investors. Investment projects are granted exemption and reduction in land rents if they attract high-tech human resources to work in the park. The city is responsible for building the construction ground and shared infrastructures in the hightech park, including information and telecom system, traffic system, public utilities, water supply network, and wastewater treatment system , for investors. If investment attraction is good but the access to capital source is difficult, it is eventually not good for investors. So, how has Danang City supported investors to access bank loans, particularly in the current tough time? Over the past years, the banking system has contributed positively to the socioeconomic development of Danang City. Banks always strive to mobilise capital for development investment and supply premium service quality. Especially, banks actively provide credits for and invaluable supports for the citys socioeconomic development. Bank credits play a driving role in maintaining high-rate economic growth for many consecutive years. Banks also pays high attention to funding businesses and results are very good. As of June 30, 2012, outstanding loans for industrial companies, commercial companies and construction companies

accounted for 21.37 per cent, 19.45 per cent, and 12.8 per cent of the total outstanding loans, respectively. Especially, in recent years, when we adopted inflation curbing by applying aggregate demand reduction measures, we carried out tightened monetary policies launched by the State Bank of Vietnam and restructured credit funding. To this effect, channelling capitals into prioritised sectors was considered a top task. Credits for the business sector increased from 73 per cent of total outstanding at the end of 2010 to 78 per cent loans at the end of 2011. The industry also plays a very important role in the citys socioeconomic development process. What are the citys views on industrial development? Industrial development is an important task of the citys social and economic development, making Danang one of the country's biggest cities and a centre of economy, culture, science, technology in the central region, and a strategically important position in terms of defence and security of the central region and the country. Danang is oriented to develop a sustainable and efficient industry, promote its advantages in central key economic zone, to ensure the connectivity on the basis of reasonable distribution of territorial space and industrial sector structure. Industry will be selectively developed and sectors employing advanced sciences and technologies

and using high-quality human resources will be attached priority. In addition to the development of modern, advanced modern industries, the city will focus on the development of traditional industries. The city places priority to industries that create products for tourism development, create jobs for citizens, increase incomes for workers, narrow socioeconomic development gap between rural and urban areas, and accelerate the process of agricultural and rural industrialisation. Industrial development must be associated with environmental protection, sustainable development, social stability and national security. Danang City is branded as a 'paradise' of tourism on earth. Tourism is also considered its key economic sector. So, how will Danang focus on developing this area? Tourism development is a key economic sector. The city is attracting more and more tourists, especially foreigners. It effectively enhances tourism quality and diversifies tourism products, particularly the combination of tourism with culture. It also completes tourist infrastructure and tourism investment projects; build modern tourism environment, create high-quality tourism human resources; increase the contribution of tourism to the city's GDP to 7 per cent in 2015. Fishery is the comparative advantage of Danang City over other

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provinces and cities in the country. Could you talk about how will the city plans to do to create development breakthroughs for this sector? Danang has a more than 70-km coastline, with deep-water bays and ports like Lien Chieu and Tien Sa. According to a survey by the Ministry of Agriculture and Rural Development of Vietnam, the central fishing grounds currently hold a reserve of 1.14 million tonnes of marine creatures belonging to more than 670 species, including 110 species with high economic value. According to the agricultural and countryside development plan till 2020, the city will modernise and industrialise its fishery sector by restructuring ship fleet and fishing activities, building offshore fishing logistics services, and organising processing activities to enhance quality and economic efficiency. To make breakthroughs in quality and output in the fisheries sector, Danang City will continue investing in fishing logistics infrastructures. The city will have support policies for fishermen to boost up fishing capacity, offshore fishing. It will advise new shipbuilding, offshore fishing, seaman training, crew insurance, etc. It also will also apply scientific advancements to fishing activities like horizontal sensing, net winches, and satellite communication devices. Vietnam Business Forum

Khanh Hoa increasingly popular with Russian tourists Expansion of high-tech industrial park approved The expansion of Da Nangs high-tech industrial park project has just been approved by the central government. The industrial park will now have a total area of over 1,120ha, an increase of 110ha compared to the citys previous plan. The additional area will be designated for tree planting, water features, and technical infrastructure which will help to connect it with other similar parks. Cam Ranh International Airport in central Khanh Hoa province will see the daily arrival of three direct flights carrying tourists from Russias Far Eastern region to central Khanh Hoa province from now until April 2013.

The first three direct flights from Russia s Far Eastern Region, conducted jointly by the travel agent Anh Duong and its Turkish partner Pegas Turistik, touched down the airport on October 25 with a total of 550 passengers aboard. More than 206ha of the park will be reserved for high-tech manufacturing companies. The remainder will be for centres of research, development and training, and centres of management, services and business development. In addition there will be accommodation, green spaces, water features, parks, sporting facilities, parking areas, technical infrastructure and logistics and service areas. The project will be developed in 3 stages - the first from 2012 to 2015, the second from 2016 to 2018, and the third from 2019 to 2020. Danang Today The passengers, of whom the majority is tourists, will holiday on the coast near Nha Trang in Khanh Hoa and around Phan Thiet in southern Binh Thuan province. According to Hoang Thi Phong Thu, President of the Board of Directors of travel agent Anh Duong, Anh Duong and Pegas Turistik started to fly in tourists from nine cities in Eastern Russia to Khanh Hoa and Binh Thuan in late October last year with one flight a day. So far, they have brought 60,000 Russian tourists to Vietnam , most of them from the Eastern region.

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The companies expect to transport between 70,000-100,000 Russian holiday-makers to Khanh Hoa from now to April 30. Khanh Hoa still leads the central region in attracting Russian tourists, welcoming more than 53,000 visitors annually. Vietnam Investment Review