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VIETNAM – NEWS AND REGULATIONS November 6, 2015

Contents

FINANCE HOW WILL THE GOVERNMENT PAY BACK THE DEBT TO SBV AND VIETCOMBANK? BANK RESTRUCTURING ON RIGHT TRACK WITH POSITIVE RESULTS ECONOMY VIETNAM'S VINAMILK SHARES JUMP ON $4 BLN STAKE OFFER REPORT, F&N SAYS NO FORMAL APPROACH VIETNAM URGED TO PREPARE FOR FTA WITH EU INVESTMENT VN FIRMS INVESTING $2.4 BILLION IN RUSSIA APPLE OPENS SUBSIDIARY IN VIETNAM: MEDIA REAL ESTATE DEUTSCHES HAUS HO CHI MINH STADT HOSTS GROUNDBREAKING CEREMONY GARDEN HILL PROJECT STILL UP FOR GRABS ENERGY – OIL&GAS – MINING WIND, SOLAR POWER CAN HELP VIETNAM SOLVE ENERGY PROBLEM: EXPERTS NEW PLANTS POWER UP GRID INFRASTRUCTURE NORTH EXPRESSWAY SPEEDS UP TRADE PLAN PROPOSES CONSTRUCTION OF NORTH-SOUTH ROAD LEGAL TEXT OF TRADE DEAL RELEASED, WAVING A GREEN FLAG FOR THE DEBATE TRANS-PACIFIC PARTNERSHIP TEXT HAS BEEN RELEASED

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FINANCE

How will the Government Pay Back the Debt to SBV and Vietcombank? Tri Thuc Tre The Central Institute of Economic Management (CIEM) said that government debt of VND30 trillion to the State Bank of Vietnam (SBV) put pressure on monetary policy. The loan was mentioned in CIEM’s report about the national economic performance in the third quarter of 2015.

How the government, which has borrowed money from SBV and Vietcombank, a commercial bank, will pay the debt is a question raised by Nguyen Anh Duong, deputy head of CIEM’s Macroeconomy Division?

“The government has borrowed from the central bank and commercial banks. In the third quarter, it borrowed VND30 trillion from SBV. A question has been raised about how it will pay the debts when the year nearly ends?” he said. “Will this help develop the monetary market, or will the government have to issue bonds?” he continued.

Duong pointed out that the credit growth slowed down in the third quarter (2015) in comparison with the second quarter since commercial banks were cautious amid the bad debt and interest rate pressure. The dong/dollar exchange rate has been fluctuating due to factors outside the national economy, including the Chinese yuan devaluation.

Vietnam’s exports grew slowly in the third quarter (2015), with export turnover increase obtained thanks to the higher export volume. The trade deficit was $0.9 billion in the third quarter, thus raising the total trade deficit to $4.3 billion this year. However, the state budget deficit has not put pressure on the dong/dollar exchange rate.

The biggest challenge for the national economy now is the pressure from the fiscal policy. The public debt has nearly hit the ceiling set by the National Assembly (65% of GDP), while the state lacks money to disburse development projects.

In principle, to be able to pay debts, the government will have to increase its revenue. However, if it tries to increase revenue from tax collections, it will place a burden on businesses which have suffered heavily from economic recession. The government can issue bonds to mobilise capital from the public, but it now finds it difficult to issue long-term bonds. It is easier to issue short-term bonds, but the debt payment pressure will be heavy.

“In 2012-2013, the government issue short-term government bonds in large quantities. It borrowed money when the year began and had to pay debts when the year finished, which put pressure on the state budget,” Duong said.

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According to Duong, there are three problems in fiscal policy: strict discipline in expenditure and investment has not been followed; no debt payment plan has been figured out; and the private sector does not sufficiently favourable conditions to make investments.

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Bank Restructuring on Right Track with Positive Results VNA

The government is on track to settle its bad debts and cross-ownership, under a scheme to restructure credit institutions from 2011 to 2015. According to the State Bank of Vietnam (SBV), more than 424.1 trillion VND in non-performing loans, or 91.2 percent of the total as of September 2012, was recouped between 2012 and August 2015, bringing down bad loans at lenders to 3.21 percent of total lending in August 2015. The figure is expected to drop below 3 percent later this year.

SBV deputy Governor Nguyen Kim Anh put the success down to the adoption of new standards on debt classification that unlock capital inflows into efficient economic areas. She also called for the involvement of ministries, departments, localities and businesses in the process, and for authorities to devise proper policies.

Economist Vu Dinh Anh pressed for more efficient operation of the State-run Vietnam Asset Management Company, a powerful legal entity established to restructure bad debt. He suggested building and operating a secondary debt market accessible by both domestic and foreign investors, and fine-tuning relevant legal regulations.

In his view, a large amount of toxic debt was still owned by State groups and corporations that were being restructured. Le Xuan Nghia, former vice chair of the National Financial Supervisory Committee, acknowledged initial achievements in addressing cross-ownership and market corner behaviours, thanks to the application of international-standard risk management, accounting, financial statements and safety indicator practices.

National Financial Supervisory Committee vice Chair Truong Van Phuoc hailed better banking management quality, which was possible thanks to manpower and financial support following mergers and acquisitions.

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Since 2011, 17 credit institutions and branches of foreign banks have shut down through mergers, acquisition or dissolution, Anh said.

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ECONOMY Vietnam's Vinamilk Shares Jump on $4 Billion Stake Offer Report,

F&N Says No Formal Approach Reuters

Shares in Vinamilk, the country's biggest listed firm, hit a lifetime high on Tuesday after local media said drinks maker Fraser and Neave Ltd plans to buy the state's 45 percent stake in a $4 billion deal. Vinamilk rose 5% to a record intraday high of 123,000 dong ($5.52) following a report in The Saigon Times, which cited an unidentified chief executive of a foreign fund represented on Vinamilk's board. The government has instructed its State Capital Investment Corporation (SCIC) to sell out of Vinamilk, a company 11.03 percent owned by F&N subsidiary F&N Dairy Investment. "F&N has not submitted any offer letter to Vinamilk or the SCIC with regard to any possible offer to purchase SCIC's stake," F&N said in a statement. Representatives of Vinamilk, or Vietnam Dairy Products JSC, were not available for comment. Vinamilk has a market value of $6.3 billion, so a $4 billion purchase would surpass SCIC's $2.8 billion stake. "It's not surprising," said analyst Tran Minh Hoang at Vietcombank Securities. "Vinamilk is one of the top companies in Vietnam with good business results and promising prospects." An F&N offer would be the latest move by Thai tycoon Charoen Sirivadhanabhakdi to expand in Vietnam and tap strong economic and retail growth in a country of 90 million people. Charoen, ranked Thailand's second-richest man by Forbes Magazine, controls 88 percent of F&N through Thai Charoen Corp Group (TCC) and his flagship Thai Beverages PCL.

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TCC subsidiaries have shares in a top Hanoi hotel and own more than 100 Vietnamese convenience stores. ThaiBev is also interested in Vietnamese state brewer Sabeco, its CEO said in May. Vichate Tantiwanich, ThaiBev's senior vice president, said no move had been made for a larger share of Vinamilk. "We already have a stake through F&N," he told Reuters. Increased interest in Vinamilk has long been anticipated, buoyed by new laws allowing 100 percent foreign shareholdings in many equities. But would-be investors are awaiting clarity on which firms can be wholly foreign owned. SCIC has been instructed to divest from Vinamilk and nine other firms, but at a time of its own choosing. Dang Quyet Tien, vice head of the finance ministry's financial department for enterprises, said foreign ownership in Vinamilk would not be restricted. "There's no limit right now," he told Reuters. "But it's up to SCIC how it wants to sell its stake." Vinamilk closed up 2.56 percent at 120,000 dong at the midday break.

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Vietnam Urged to Prepare for FTA with EU STD

To make the most of opportunities from a free-trade agreement (FTA) with the European Union (EU), Vietnam needs to be well-prepared in terms of infrastructure and food hygiene and safety, said the new ambassador and head of the EU Delegation to Vietnam.

Bruno Angelet told a meeting with reporters in HCMC last Friday that the FTA between Vietnam and EU will bring in huge trade and investment flows if Vietnam has adequate preparations for fulfilling its commitments. Europe is currently the biggest investor in ASEAN, according to Angelet. Many European companies have invested in Vietnam via their affiliates in Singapore and Hong Kong, as European businesses regard Singapore and Hong Kong as the gateways to enter Asia.

Vietnam is among the markets European companies target if they change their investment destinations though many other countries in the region have better infrastructure than Vietnam. Therefore, Vietnam should improve infrastructure to attract those companies.

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A young labor force is among Vietnam’s competitive advantages. But a large number of rural laborers have moved to cities but do not have proper training, and Vietnam will have to ensure they will be trained in the coming years. The Government also needs to support local small and medium enterprises (SMEs) to grow and get access to financial sources in a fair way.

Angelet said the agricultural sector would face more challenges than other sectors when the Vietnam-EU FTA or the Trans-Pacific Partnership (TPP) trade pact takes effect. Around 20% of Vietnam’s GDP is contributed by the Mekong Delta region whose strength is farm produce exports. However, Vietnam’s farm produce exports to the EU remain limited due to the low quality and problems concerning food safety.

Angelet said farmers should be supported by the Government and trained to turn out farm products meeting hygiene and safety requirements.

Angelet said farmers and small businesses do not have strong financial capacities, so they always try to recover their investments quickly and thus do not care about food safety and quality. Therefore, they should be provided with more and faster access to credit sources. In August, Vietnam and the EU announced they had virtually concluded FTA talks after two and a half years of intense negotiations and the agreement is expected to be signed this year. But the ratification of the FTA will take some time.

Angelet hoped before the agreement is ratified and comes into force, leaders of Vietnam should build good policies to better preparations for and capitalize on the opportunities when the agreement becomes effective. He added the EU is willing to provide technical assistance for Vietnam to make such preparations if Vietnam’s Ministry of Industry and Trade clarifies what the country needs from the EU.

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INVESTMENT

VN Firms Investing $2.4 billion in Russia VNS

Viet Nam invested a total of US$2.4 billion in 18 projects in Russia by end-September, according to the Foreign Investment Agency (FIA) under the Ministry of Planning and

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Investment. The key projects included one by the Viet Nam National Oil and Gas Group (PetroVietnam) to develop the Rusvietpetro Joint Venture Company with a total investment of $2.02 billion to explore and exploit oil and gas in Russia.

PetroVietnam had also invested a total of $125 million in another oil exploitation project in Russia. Another large project by a Vietnamese investor in Russia involved building the Ha Noi Moscow Trading Centre, with a total investment of $190 million.

Meanwhile, the agency reported by the end of September that Russian investors had registered to invest $1.96 billion in 114 projects in Viet Nam. Russia has ranked 17th on the list of 105 nations and territories investing in Viet Nam. Russia has made its largest investment in the processing and manufacturing sector, with $1.13 billion, accounting for 58 per cent of its total investment in the country, distributed amongst 37 projects.

Two other sectors receiving large Russian investments were mining and real estate, with capital of $581.2 million and $72.7 million respectively. Some large Russian-invested projects included the Bus Industrial Centre Company, with total capital of $1 billion; the building of a factory for producing and assembling parts for buses in Binh Dinh Province; and a project to exploit oil and gas, with capital of $328 million.

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Apple Opens Subsidiary in Vietnam: Media Thanh Nien News

Apple, the technology giant, has reportedly opened its subsidiary in Ho Chi Minh City, soon after expanding its retail network in one of the world's fastest growing mobile markets.

Apple Vietnam LLC was established at the end of October by Apple's Irish subsidiary Apple Operations International, with a capital of VND15 billion, or more than US$667,000, local media reported on Thursday. It was licensed to export, import and distribute Apple products and services, according to the reports.

Gene Daniel Levoff, vice president of Apple Operations International, is the company's legal representative. In late August, Apple added another two authorized resellers in Vietnam, where subsidiaries of information technology group FPT and telecommunication giants Viettel and Viettel have already held rights to either retail or distribute its products.

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Vietnam's huge interest in Apple products grabbed international headlines in April, when the giant released its financial report for the first half of the year, naming the country its fastest growing market.

Apple's sales in Vietnam tripled, or five times faster than its sales growth in India, while iPhone sales in the country doubled quarterly.

With smartphone sales of all brands surging 27 percent in the first six months to 6 million units, Vietnam is now one of the fastest-growing markets in Southeast Asia, according to the latest report by German market research company GfK.

Another smartphone giant, Samsung, has opened production facilities in the country.

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REAL ESTATE

Deutsches Haus Ho Chi Minh Stadt Hosts Groundbreaking Ceremony VIR

The Deutsches Haus in Ho Chi Minh City will set a new benchmark and standard in Vietnam in terms of “Wellness” for tenants and their employees, creating value for different workspaces.

The Deutsches Haus Ho Chi Minh Stadt has officially celebrated its official groundbreaking-ceremony at the construction-site of Deutsches Haus at 33 Le Duan street, District 1 in Ho Chi Minh City. More than 350 guests from the German, European and Vietnamese business community in Vietnam, representatives from the Vietnamese and German government and members of the diplomatic corps attended the event.

Since November 2014, the construction of the Deutsches Haus in Ho Chi Minh City is under way. Currently a 4-level basement is under construction, offering 13,764 square metres for parking. Completion of construction and development of the building will be the third quarter of 2017.

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Deutsches Haus is a pioneering premium grade office tower strategically located on the corner of Le Duan and Le Van Huu streets in the heart of Ho Chi Minh City. The 25-storey building consists of approximately 40,000sqm, including retail areas, a multifunctional exhibition, event and conference area, the Consulate General of the Federal Republic of Germany in Ho Chi Minh City, F&B areas with outdoor terrace and apartments and penthouses.

Its location in the heart of Ho Chi Minh City will therefore be the ultimate destination to be, for doing business with ASEAN and Vietnam for German and Central European headquartered companies and institutions. At the same time Deutsches Haus will be the ideal trading platform for Vietnamese companies doing business with Germany and the European Union.

Deutsches Haus has all modern state-of-the-art facilities and services one would expect from a centrally located premium grade office building. The building will be home to the Consulate General of the Federal Republic of Germany, making it the destination for German and Central European companies, promoting German and Vietnamese relations.

The building presents itself to the city as a transparent and inviting building with a cost-effective design, low energy consumption, the use of German green building materials, combined with the latest German technologies, and coupled with a high degree of sustainability, including the installation of photovoltaic equipment and panels to generate renewable energy.

One of the key features is the double façade which reflects the latest of German technology. It is a first in Vietnam and South East Asia and serves to emphasize the energy-saving structure under the climatic conditions of Vietnam. It will the premier green office building in Ho Chi Minh City, aiming for the LEED Gold certification (Leadership in Energy and Environmental Design) and DGNB certification, the German equivalent.

Already, the Federal Ministry of Economic Affairs and Energy in Germany has awarded Deutsches Haus in Ho Chi Minh City as the only building worldwide, the distinction “Energy Efficiency - Made in Germany".

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Garden Hill Project Still Up for Grabs VIR

Hanoi-based Building and Infrastructure Development of Vietnam Joint Stock Company officially introduced its commerce centre and luxury apartment complex Garden Hill project which attracted a lot of attention recently. Located at a prime location on Hanoi’s Tran Binh street in Hadong district, the Garden Hill project was identified as the worthiest living apartment of the year which will bring a dreamy living space and classy lifestyle for all families.

Covering an area of 5,500 square metres, the complex will feature commercial centres, offices for rent, and entertainment areas with two, 29 and 25-floor towers with 2 basements and 375 apartments. Apartment sizes vary between 57.8 and 110 square metres.

With its prime, extremely favourable location, residents can easily reach the city’s centres of economy, trade, culture, education, and entertainment, such as the National Convention Centre (3 kilometres), Hanoi Museum (3km), Hanoi National University, (Institute?) Bachelor of Commerce (1km), Media Propaganda Academy (3 km), The school class as Doan Thi Diem school, Le Quy Don School and Lomonoxop (2km), Business Center Big C, Metro (2km), Thu Le Park (2km), and Yen Hoa Park (1km)

The project is expected to begin selling apartments during the first quarter of 2016 and hand them over in 2017. Homebuyers could enjoy preferential 80 per cent loans for purchasing apartments, with 20-year pay-back terms. In addition, investors said they would pay interest rates until the apartments are handed over to the owners, along with owners receiving two years of services at no charge.

Also at the ceremony, the investor, BID Vietnam signed co-operation agreements with five partners. Accordingly, Bank for Agriculture and Rural Development of Vietnam will provide finance capital, Military Bank will offer loans to home buyers, Savills will operate the buildings, Japanese JCM will manage and supervise the quality of construction works and An Phu Company will handle the marketing of the project.

Tran Van Manh, chairman and general director of BID Vietnam, said the co-operation is expected to help the company complete the project with the highest quality, fastest progress, and providing the most convenient sale policies for customers.

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“We believe that Garden Hill project is the right choice to nurture dreams, adorn the soul, and invest for the future,” said Manh.

BID Vietnam was established in 2006 and has become a powerful player in architectural design, civil and industrial project construction, real estate investment management, and material export-import, on account of its members’ experience and prestige.

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ENERGY – OIL & GAS – MINING

Wind, Solar Power can Help Vietnam Solve Energy Problem: Experts ThanhNienNews

Greater energy efficiency and expansion in renewables could help Vietnam meet an expected 7-10 percent increase in power demand each year through 2030, experts said at a recent conference. The country needs to tap into various energy sources, including coal, natural gas, wind, solar and hydropower, to ensure sustainable, reliable and affordable power supply amid growing power demand, they said at the conference in Hanoi on Wednesday.

Low-carbon development may help boost economic growth in the long run, according to a report issued at the conference. Vietnam has a high share of renewable energy in the total generation mix, with hydropower accounting for 42 percent of power generation, much higher than that of many other countries.

However, even if Vietnam fully taps into its potential in renewable energy, it may still not be able to fully meet future energy demand.

“To ensure the financial sustainability of the power sector, Vietnam needs to promote effective competition and ensure large public and private sector investment,” said Anita Marangoly George, Senior Director, Energy and Extractives of the World Bank.

Since 1990, the proportion of Vietnamese population with access to electricity has jumped to 98 percent from 54 percent.

Over the two decades, 10 million households, with 40 million people, have gained access to electricity, mainly through rural electrification under the national poverty reduction program. Back to Top

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New Plants Power Up Grid VIR

With a series of build-operate-transfer coal-fired power plants due to come online in the near future, manufacturers in Vietnam are looking forward to a more stable power supply.

Last week, AES-VCM Mong Duong Power Company Limited held a ceremony to mark the successful operation of the Mong Duong 2 build-operate-transfer (BOT) coal-fired power plant, which began full commercial operation in April 2015, approximately six months ahead of schedule.

The Mong Duong 2 power plant is the largest foreign invested power project in Vietnam and the country’s first new private sector power plant to be commissioned in the last ten years. Initiated in December 2010 in the northern province of Quang Ninh, it has two units with the total generation capacity of 1,240 megawatt and the total investment capital of approximately $2.1 billion. The plant was built under a BOT agreement and will be transferred to the government after 25 years. The plant is expected to add more than 7.6 billion kWh of electricity annually to the national power grid.

Deputy Minister of Industry and Trade Cao Quoc Hung hailed the completion of the Mong Duong 2 power plant as a meaningful and important milestone for Vietnam’s power industry. “The successful completion of this project is a positive move forward, and has once again raised the hopes of boosting power investment under the BOT model,” said Tran Viet Ngai, chairman of the Vietnam Energy Association.

Last month, the consortium of Japan’s Marubeni Corporation and Korea Electric Company started construction on the Nghi Son 2 coal-fired power plant in the central province of Thanh Hoa. The BOT project has the total investment capital of $2.3 billion. The first turbine of the Nghi Son 2 thermal power plant is expected to come online in 2019, and it is scheduled for completion sometime in 2020.

Meanwhile, after several false starts with other partners, the Hai Duong thermal power plant, which is mainly invested by Malaysia’s Jaks Resources, has been brought back on track with the participation of China’s Power Engineering Consulting Group.

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In a recent press release, Jaks Resources said, “With the financing secured, we believe there is now a higher likelihood that we would meet the project’s financial deadline of October 31.”

In past years, only seven power plants have been licensed to foreign investors under the BOT model. They are Phu My 3, Phu My 2.2, Mong Duong 2, Hai Duong, Vinh Tan 1, Nghi Son 2, and Duyen Hai 2.

The list of foreign-invested BOT power projects looks set to increase, as several foreign companies are currently in negotiations, or are conducting feasibility studies for developing power plants nationwide, such as South Korea’s Samsung C&T Corporation, India’s Tata Power, Singapore’s Sembcorp Industries, and Thailand’s EGATI.

According to the Vietnam Institute of Energy and the National Centre for Socio-Economic Information and Forecast, Vietnam’s power demand and GDP are expected to grow by 11 per cent and 7 per cent, respectively, over the next five years. The Vietnamese government has plans to increase the country’s installed capacity by more than 60GW over this period.

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INFRASTRUCTURE

North Expressway Speeds Up Trade VIR

The Hanoi-Haiphong expressway, a national strategic investment, is set to open for traffic in December of this year, removing the bottleneck between Haiphong and the Red River Delta.

In May, the expressway’s investor, Vietnam Infrastructure Development and Finance Investment Joint Stock Company (VIDIFI), opened the 22.7 kilometre section that links the junction with the National Road 10 to the junction with Pham Van Dong street in Haiphong. Most recently, on September 26, VIDIFI opened an additional 52.5km section to traffic that links the junction with the National Road 39 in the northern province of Hung Yen with the junction at National Road 10 in Haiphong’s An Lao district. Speaking at the opening ceremony of the section, Nguyen Van Tinh, general director of VIDIFI confirmed that the expressway would be completed in December 2015.

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The project worth VND45.6 trillion ($2.13 billion), and which began construction in May 2008, is 105.5km long, with a maximum speed limit of 120km per hour. The route is 100 metres wide, with six lanes for traffic and two lanes for emergency stops.

As part of the most important and modern expressway system in the country, this route will shorten travel times between cities and provinces in the north of Vietnam, cutting the journey between Hanoi and Haiphong from over two hours to less than an hour.

According to Vietnam’s road infrastructure development plan towards 2020, ratified by the prime minister, the Hanoi-Haiphong expressway and the expressways linking Hanoi to Lao Cai, Thai Nguyen, Lang Son, Quang Ninh, and Ninh Binh will allow localities to realise their economic potential by reducing transportation costs, thus enhancing the competitiveness of the region. The expressway is also part of the ASEAN road corridor and part of the implementation of the co-operation agreement between countries in the wider Mekong River region.

In addition to boosting trade between provinces in the Red River Delta, the Hanoi-Haiphong expressway will also become an important facilitator of trade between the north of Vietnam and the rest of the world. The expressway is directly connected to the Tan Vu-Lach Huyen road and bridge, linking it to the Lach Huyen deep sea port (the Haiphong international gateway port) – the biggest port in the north of Vietnam.

With these mega projects, companies operating in Haiphong can benefit from significantly reduced operating and distribution costs. As a result, the Dinh Vu/Deep C industrial zone (IZ), an area where three national-scale infrastructure projects (the Lach Huyen port, the Hanoi-Haiphong expressway, the Cat Bi international airport) meet, will become a hub for investment, logistics, manufacturing, and trade.

According to Frank Wouters, general director of Dinh Vu IZ JSC, one of the most important advantages of the Dinh Vu IZ is the fact that it is the only IZ directly linked to the Hanoi-Haiphong expressway and the Tan Vu-Lach Huyen expressway, and is the closest IZ to the Lach Huyen international deep sea port and the Cat Bi international airport.

In the proximity of the existing IZ, there are two other on-going transport projects, namely the Bach Dang bridge and the Halong-Haiphong expressway linking to the Hanoi-Haiphong expressway, both of which are expected to be finished at the end of 2016. As such, the shareholders of Dinh Vu IZ JSC have further plans to make use of the nationally strategic transport system being built in the area. The expansion to the surrounding of the existing

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Dinh Vu IZ and the Lach Huyen deep sea port will eventually create the Deep C IZ of 2,000 hectares lying amidst a deep sea port, an airport, and expressways.

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Plan Proposes Construction of North-South Road VNS A project proposal has been sent to the HCM City People's Committee regarding the construction of a north-south road for an estimated VND8.5 trillion (US$377.7 million).

The plan proposes the construction of a 7.5km-long, six-lane road connecting Nguyen Van Linh Street and Ba Chiem Bridge in south HCM City. The land clearance costs have been included in the proposal, Vietnamese enterprises Hoa Phong and Moc An, the investors, said.

The proposed road will be part of the north-south connecting route, extending from Highway 22 in District 12 to the suburban Hiep Phuoc Industrial Park in Nha Be District. Another north-south line had been proposed earlier by the HCM City Urban Traffic Management Zone No.1, according to which a new road will be built from Hoang Dieu Intersection in District 4 to Nguyen Van Linh Street to tackle the heavy traffic jams that occur in the area. The construction of the road, measuring about 3.8km in length, is expected to cost VND6.74 trillion ($299.5 million).

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LEGAL

Text of Trade Deal Released, Waving a Green Flag for the Debate The New York Times

WASHINGTON — The release on Thursday of the full text of President Obama’s trade accord with 11 Pacific Rim nations brought out opponents and supporters and officially opened what may be the last big battle of the president’s tenure: winning congressional approval of the largest regional trade deal in history.

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The opposition mainly came from the left, as an array of unions, environmental groups and public advocacy organizations that typically resist global trade agreements registered their dismay. But some businesses, like Ford Motor, also joined the emerging resistance to the Trans-Pacific Partnership.

The reaction confirmed that in this final fight, Mr. Obama will have to rely on the Republicans who control Congress if he is to sell the legacy-making agreement in the months before the House and Senate vote next spring. Republican leaders were withholding endorsements for now, leaving the president to make the case on his own.

Mr. Obama immediately sought to do so. Early Thursday, the White House posted the text of the deal on Medium, a social media sharing website, along with the president’s statement hailing the agreement as a “new type of trade deal that puts American workers first.”

The accord ties together countries from Canada to Chile and Japan to Australia that account for 40 percent of the world’s economy. While the 12 nations’ trade ministers concluded the agreement a month ago, after years of negotiations, Mr. Obama said that the disclosure of the details now should build support. He cited the agreement’s labor and environmental protections, the end of many tariffs and trade barriers among the countries, and expanded markets for American goods and services.

“It eliminates 18,000 taxes that various countries put on American goods,” Mr. Obama said. “That will boost Made-in-America exports abroad while supporting higher-paying jobs right here at home. And that’s going to help our economy grow.” He cited the strategic as well as economic advantages of a trade alliance that would counter a rising China, which is not a party to the agreement.

“When it comes to Asia, one of the world’s fastest-growing regions, the rule book is up for grabs. And if we don’t pass this agreement — if America doesn’t write those rules — then countries like China will,” Mr. Obama said. “And that would only threaten American jobs and workers and undermine American leadership around the world.”

The president’s post on Medium came hours after the United States trade representative first released the 30 chapters, side agreements and other attachments that make up the voluminous accord in the middle of the night, simultaneous with other nations doing so.

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Also on Thursday, he officially notified Congress of his intent to sign the agreement in 90 days, a period specified by law to give the House and Senate time to begin deliberating over its terms. Congress has additional time beyond that to debate and vote on legislation to enact the agreement.

Final action is expected by perhaps May, ensuring that Congress’s debate will occur against the backdrop of a presidential campaign in which leading candidates of both parties already have gone on record against the accord.

Senator Bernie Sanders of Vermont, who is challenging Hillary Rodham Clinton for the Democrats’ nomination, said the trade text was proof that the accord “is even worse than I thought” — a threat to American jobs, food and product safety and access to affordable drugs, for the benefit of international corporations and third-world countries.

Without naming Mrs. Clinton, who last month announced her opposition to the agreement, Mr. Sanders summoned the phrase she once used as secretary of state to hail the emerging Pacific accord. “It is clear to me that the proposed pact is not, nor has it ever been, the gold standard of trade agreements,” Mr. Sanders said.

The agreement also must be approved in the other 11 nations. Besides Chile, Canada, Japan and Australia, they are Mexico, Peru, New Zealand, Singapore, Vietnam, Malaysia and Brunei. The Obama administration is hoping that the accord’s labor protections, along with separate bilateral agreements on labor and human rights between the United States and Vietnam, Malaysia and Brunei, will help persuade some Democrats to back the deal. The administration is especially eager to promote its agreement with Vietnam, which commits its communist government to change its laws to allow workers to freely unionize and to strike, not just for better wages and hours but also for improved working conditions and other rights.

“Without reservation, I think this is the best opportunity we’ve had in years to encourage deep institutional reform in Vietnam that will advance human rights, and it will only happen if T.P.P. is approved,” Tom Malinowski, the assistant secretary of state for democracy, human rights and labor, said in an interview.

The organization where Mr. Malinowski formerly worked, Human Rights Watch, is among the skeptics who say Vietnam’s commitments are unenforceable, especially given the track record of the United States trade office. John Sifton, the group’s Asia advocacy director, said

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workers should have been given the same right that corporations have under this trade agreement and others: to take complaints about a country’s compliance directly to a dispute settlement panel. “Are trade unionists who actually produce all the capital that we’re talking about here allowed to bring complaints against a country for violations?” he asked. “No, of course not.” For the first time as part of a trade accord, the Pacific partners agreed in a “joint declaration” to avoid manipulating the value of their currencies for trade advantage, to report interventions in foreign exchange markets and to meet annually to hold one another accountable. The language did not persuade some Democrats — or Ford, which broke with other big businesses supporting the agreement — that it would prevent Japan and other countries from intervening to underprice their exports unfairly.

The annual currency forum “does nothing to change the status quo,” Ford said in a statement, adding, “It fails to include dispute settlement mechanisms to ensure global rules prohibiting currency manipulation are enforced.”

While the Obama administration played up environmental standards included in the accord as precedent-setting, the Sierra Club and the Natural Resources Defense Council were among groups that came out in opposition, calling the language weaker than in trade pacts negotiated during the George W. Bush administration.

Other advocacy groups, including Doctors Without Borders, cited language that would give pharmaceutical companies up to eight years of intellectual property protections before their data is available for production of lower-cost generic drugs.

That has put the administration in a bind: Those protections, while too long for health care advocacy groups, are shorter than the 12 years the big drug companies currently enjoy. That has angered drug company allies in Congress, especially Senator Orrin G. Hatch of Utah, the chairman of the Senate Finance Committee, which has jurisdiction over trade. Without Mr. Hatch’s support, Senate approval could be impossible.

The senator was noncommittal on Thursday, promising only a “rigorous review” of the pact. Also staying neutral was the new House speaker, Representative Paul D. Ryan of Wisconsin. “We do not rubber-stamp anything around here, let alone trade agreements,” Mr. Ryan told reporters at the Capitol.

Oliver Massmann Partner - Duane Morris Vietnam LLC, Hanoi Page 19

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Trans-Pacific Partnership Text has been Released Thomson Reuters

Canada has entered into side letters with U.S., Japan, Malaysia as part of deal.

The long-awaited text of the Trans-Pacific Partnership (TPP) trade deal was released on Thursday, revealing the details of a pact aimed at freeing up commerce in 40 per cent of the world's economy but criticized for its opacity.

The partners — which in addition to Canada include Australia, Brunei, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States and Vietnam — have made commitments to discourage imports of goods produced by forced labour and to adopt laws on acceptable working conditions, and the first prohibition on harmful fisheries subsidies. But TPP, which will set common standards on issues ranging from workers' rights to intellectual property protection in 12 Pacific nations, was kept largely from public scrutiny, angering transparency advocates concerned over its broad implications.

The Liberals, before assuming power, criticized the Conservative government for a lack of transparency regarding what Canada may have given up in the negotiations, although they support the notion of free trade. Justin Trudeau, in a statement on Oct. 5, promised "a full and open public debate in Parliament to ensure Canadians are consulted on this historic trade agreement."

Ed Fast, seen speaking to reporters on Sept. 30 from the site of the most recent talks, Atlanta, said he believed the deal could be worth about $3.5 billion of additional economic activity to Canada. (Alex Panetta/The Canadian Press)

More recently, Trudeau and Japanese Prime Minister Shinzo Abe spoke over the phone and agreed to promote the deal. Chrystia Freeland, the new trade minister for the Liberals, will be responsible for ushering the deal through Parliament. She told the CBC's Metro Morning show in Toronto that the Liberal Government plans to have a full and open debate on the pact in parliament.

Oliver Massmann Partner - Duane Morris Vietnam LLC, Hanoi Page 20

Ed Fast, the trade minister under the Conservatives, said he believed the deal could be worth about $3.5 billion of additional economic activity to Canada.

In addition to the overall scope of the deal, Canada has entered into a number of so-called side letters with Japan (forestry, automobiles), Malaysia (automobiles), Australia and New Zealand (wine and spirits), and the United States (dairy and food safety regulations). Agreement on the pact, which was more than five years in the making, was trumpeted a month ago after intense talks in Atlanta broke a deadlock over trade in dairy products, pharmaceuticals and autos.

The TPP would be a boon for factory and export economies like Malaysia and Vietnam. Anticipated tariff perks are already luring record foreign investment into Vietnamese manufacturing and both countries are expected to see increased demand for their key exports, from palm oil and rubber to electronics, seafood and textiles.

That could put pressure on several of Asia's major developing economies, including the Philippines and Indonesia, which have recently expressed interest in signing up to the pact. Thailand said it was studying the deal and may consider joining.

Japan has pledged to ease trade barriers on imported French fries and butter - products which have been in short supply in the Asian market - while Malaysia will eliminate tariffs on all imported alcohol for the first time in a trade agreement.

In the U.S., it was opposed by labour unions and many of Barack Obama's fellow Democrats, including presidential candidate Hillary Clinton, who backed the developing trade pact when she was secretary of state during Obama's first term. Some pro-trade Republican lawmakers are also wary of the deal, heralding a tough fight to get the deal through Congress, although this is not expected before March. Republican White House contender Donald Trump has labelled it a "disaster."

China has responded with its own Regional Comprehensive Economic Partnership (RCEP), a proposed 16-nation free-trade area including India that would be the world's biggest such bloc, encompassing 3.4 billion people.

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Oliver Massmann Partner - Duane Morris Vietnam LLC, Hanoi Page 21

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