Bericht über SUSTAINABILITY Clovers-Geschäft wird unter Berücksichtigung unserer rechtlichen, ethischen und wirtschaftlichen Verantwortlichkeiten durchgeführt. Einleitung Dieser Bericht über die Nachhaltigkeit umfasst sowohl die Anforderungen des Gesellschaftsgesetzes, 71 von 2008 (das Gesetz) in Bezug auf die Regelung 43 als auch den Königsbericht über die Regierungsführung für Südafrika 2009 (König III) über eine verantwortungsvolle Staatsbürgerschaft. Der Bericht befasst sich auch mit den wichtigsten und wesentlichen Fragen, die erhebliche Auswirkungen auf die Fähigkeit von Clovers haben könnten, Wertschöpfung für ihre Stakeholder voranzutreiben. Clover ist eines der wenigen südafrikanischen Unternehmen, die schon seit über 100 Jahren existieren und wir erkennen, dass wir, um zu überleben und erfolgreich zu sein, mit Nachhaltigkeit zu tun haben. Der Sozial - und Ethikausschuss hat die Nachhaltigkeitsthemen berücksichtigt, die für Clover relevant sind. Die Zuständigkeiten und das Funktionieren des Ausschusses für Soziales und Ethik (Ausschuss) richten sich nach dem vom Verwaltungsrat genehmigten formellen Mandat und werden regelmäßig überprüft. Das Hauptziel des Ausschusses ist es, dem Gremium zu helfen, dafür zu sorgen, dass Clover nach wie vor ein verantwortungsbewusster Unternehmer mit nachhaltigen Geschäftspraktiken ist, indem er die sozialen, ethischen, ökologischen und sozialen Aspekte der sozialen, ethischen, Und160King III. Um diese oben genannten Aufgaben zu erfüllen, hat der Sozial - und Ethikausschuss einen formellen Arbeitsplan entwickelt und verabschiedet, der die in Reglement 43 des Gesetzes und Königs III. Die Umsetzung dieses Arbeitsplans ist vorrangig, um die ordnungsgemäße Erfüllung seiner gesetzlichen Aufgaben über einen Zeitraum von drei Jahren zu ermöglichen. Der Ausschuss unterstützt den Ausschuss, indem er den entsprechenden Ton und sein Verhalten festlegt und die Kommunikation zur ethischen Kultur von Clovers beiträgt. Dieser Bericht beschreibt die Arbeit und die Schlussfolgerungen des Ausschusses in seinem zweiten Jahr der Gründung. Über die Anforderungen des Gesetzes hinaus hat der Geltungsbereich des Berichts auch die Nachhaltigkeitsberichterstattungsrichtlinien der Global Reporting Initiative berücksichtigt. Kurz gesagt, es versucht, die wichtigsten Aspekte des Clovers Geschäft, die für seine langfristige Zukunft entscheidend sind zusammenzufassen. Governance - und Compliance-Überlegungen Der Umfang dieser Überprüfung bezieht sich auf Clovers South African Operations und wird im Laufe der Zeit auf ihre Tochtergesellschaften in anderen Ländern ausgedehnt. Obwohl König III verlangt, dass die Nachhaltigkeitsberichterstattung unabhängig gesichert ist, ist der Ausschuss der Ansicht, dass es verfrüht wäre, externe Sicherheit zu erhalten, bis die Gruppen soziale und umweltbezogene Aufzeichnungssysteme reif sind. Clover hat Verfahren, um die Einhaltung aller anwendbaren Gesetze und gesetzlichen Anforderungen zu gewährleisten. Es ist die Gruppe beabsichtigt, qualitative und quantitative Informationen zu verbessern, während Systeme fortschreitend niedergeschlagen werden. Wesentliche Verbesserungen wurden im Berichtsjahr geleistet, insbesondere in Bezug auf den Aktienbeschaffungsplan von Clovers, die Schulung von Mitarbeitern und die Weiterentwicklung, die Formalisierung der Sozial - und Ethikpolitik sowie die Umweltpolitik. Darüber hinaus überwacht und beobachtet Clover die relevanten Gesetze, sonstige gesetzliche Vorgaben und geltende Verhaltensregeln in Bezug auf die soziale und wirtschaftliche Entwicklung, die gute Gesellschaftszugehörigkeit, die Umwelt, die Gesundheit und die öffentliche Sicherheit, die Verbraucherbeziehungen sowie Arbeit und Arbeit Beschäftigung. Alle wesentlichen Risiken in Übereinstimmung mit den oben genannten Nachhaltigkeitstreibern werden in das Clovers-Risikouniversum einbezogen und unter dem Risikomanagementprozess von Clovers überwacht, wie ausführlicher im Abschnitt "Governance" dieses Berichtes beschrieben. Darüber hinaus wird die rechtliche Einhaltung von Regulation 43 des Gesetzes vollständig im Abschnitt "Nachhaltigkeit" dieses Berichts beschrieben, während die Einhaltung des Clovers-Regulierungsuniversums unter "Compliance" im Abschnitt "Governance" beschrieben ist. Alle rechtlichen Compliance fällt unter die Aufsicht des Generalsekretärs, der sicherstellt, dass das gesamte regulatorische Universum überwacht wird. Die Gruppe beabsichtigt, künftig die vorherrschenden Kodizes bewährter Verfahren in Bezug auf die Verordnung 43 weiter einzubeziehen. Im Berichtsjahr hat das Komitee für Soziales und Ethik die in den nachfolgenden Rubriken stehenden Clovers überwacht und bewertet. Nach Auffassung des Ausschusses, auf der Grundlage der ihm übermittelten Informationen, entsprechen die folgenden Aussagen der Stellung des Clover-Konzerns. Ethische Führung und gute Corporate Citizenship Ethische Führung Clover und seine Führer haben eine Philosophie eingebettet, die die Rechte und die Würde anderer respektiert. Bei Clover sind wir uns bewusst, wie unsere Entscheidungen andere beeinflussen, und diese Prinzipien sind in unsere Denk - und Entscheidungsprozesse integriert. Unsere ethischen Führungsprinzipien sind integraler Bestandteil unserer Vision und Mission und werden durch unsere Projekte unter Beweis gestellt. E fehlerhafte Führung auf der Grundlage einer ethischen Grundlage Die Clovers-Strategie, ein nachhaltiges Unternehmen aufzubauen, betrachtet die lang - und kurzfristigen Auswirkungen unserer Operationen auf Wirtschaft, Gesellschaft und Umwelt. Es ist unsere Absicht, die natürliche Umwelt nicht zu gefährden, und wir betrachten die Auswirkungen unserer Operationen auf interne und externe Stakeholder. Förderung der Gleichberechtigung, Verhinderung der Diskriminierung aufgrund unlauterer Diskriminierung und Verringerung der Korruption Clover verpflichtet sich zur Förderung der Gleichstellung und zur Verhinderung einer ungerechtfertigten Diskriminierung mit allen Akteuren, wie die Clover-Ethik-Politik zeigt. Wir verpflichten uns, unsere besten Bestrebungen zu verfolgen, die folgenden Grundsätze einzuhalten: Die Grundsätze der Vereinten Nationen für den Globalen Pakt. Die Grundsätze der Organisation für wirtschaftliche Zusammenarbeit und Entwicklung (OECD) über Korruption. Internationales Arbeitsamt (ILO). Um die Einhaltung dieser Grundsätze zu gewährleisten, arbeiten die Mitarbeiter von Clovers Human Resources und das Risk Department jährlich über die Leistungen der Gruppe. Basierend auf den für das Berichtsjahr durchgeführten Bewertungen wurden keine wesentlichen Abweichungen gemeldet. Unsere ethischen Leitungsprinzipien, die sich mit Korruption befassen, werden in unserem Bericht160on Governance, Risk and Compliance weiter erläutert. Laufende Bewusstsein wird durch Clovers Ethics Bewusstsein Sessions bei allen Operationen für Zwecke der Durchsetzung Clovers ethischen Prinzipien, wie in Clovers Ethics Policy auf Clovers Website beschrieben. Gute Corporate Citizenship Clovers Geschäft wird unter Berücksichtigung unserer rechtlichen, ethischen und wirtschaftlichen Verantwortlichkeiten durchgeführt. Wir wollen in den Gemeinden, in denen wir tätig sind, höhere Lebens - und Lebensqualität schaffen und gleichzeitig die Rentabilität für unsere Aktionäre erhalten. Gesellschaftliche und gemeinschaftliche Investitionen Das Ziel des Projekts Clover Mama Afrika ist es, Frauen zu identifizieren, die bereits in ihren Gemeinden einen Unterschied machen und ihnen helfen, selbstständige Frauen mit Fertigkeiten zu erwerben, die sie nutzen können, um Einkommen zu erlangen, um verwaist und missbraucht zu helfen Kinder, ältere Menschen und 160. Nach dem Erlernen dieser wesentlichen Fähigkeiten geben unsere Mamas dann ihr Wissen weiter und lehren andere in ihren Gemeinschaften, um sich selbst zu stärken und ihre Gemeinschaften zu erheben. Nun in seinem neunten Jahr hat Clover Mama Afrika Trust derzeit 36 Mamas landesweit, die gemeinsam für mehr als 14160200160 Kinder und mehr als 2 500160lderly kümmern. Clover Mama Afrika basiert auf einem einfachen, aber leistungsstarken Konzept, die Gemeindebetreuer mit lebensfähigen Fähigkeiten zu stärken, die sie wiederum an andere weitergeben, um ein nachhaltiges Einkommen für die Gemeinschaft zu erzielen. Dies geschieht, während die Betreuung von sozial benachteiligten Mitgliedern, darunter verwaiste und missbrauchte Kinder, HIVAids-Opfer und vernachlässigte Senioren. Werttreiber Kompetenzselektionszentren: Relevante, verwertbare und marktfähige Kompetenzen sind auf die Bedürfnisse der jeweiligen Gemeinschaften abgestimmt, um sicherzustellen, dass die Zentren sich selbst nachhaltig werden. Nach dem Skill-Training bietet Clover Mama Afrika Start-up-Ausrüstung für sofortige Einkommen Generation und Weitergabe von160skills. Site Verbesserung: Clover Mama Afrika unterstützt Gemeinden mit den Reparaturen und Renovierungen zu grundlegenden Einrichtungen wie geeignete Wasch-Einrichtungen. Monitoring und Evaluation: Es wird ein regelmäßiges Monitoring und Evaluation jedes Selbsthilfeprojekts durchgeführt, welches die Identifizierung von Stärken und Schwächen auf individueller Basis ermöglicht. Sofern erforderlich, werden sofortige Unterstützung und Unterstützung geleistet. Partner: Blue-Chip-Partner tragen zum Erfolg von Clover Mama Afrika bei und kofinanzieren 43 der Trusts-Aufwendungen. Blue Chip Partner sind: Expeditors International. HCI-Stiftung. Eqstra Flexi Flotte. MiX-Telematik. Plascon. Clover Mamas-Mitglieder geschult Auszeichnungen Clover Mama Afrika hat seit dem Beginn des Projekts prestigeträchtige Preise gewonnen: 2005 PMR Diamond Arrow Award 2005 PRISA Prism Gold Award 2005 Stolz SA Homegrown Brückenbauer des Jahres Award 2006 Stolz SA Homegrown Corporate Social Investment des Jahres 2008 PMR Goldpfeil-Preis 2009 PMR Gesamtdiamant-Pfeil-Preis 2010 FoodBev SETB Baobab-Preis 2010 PMR Gesamtdiamant-Pfeil-Preis 2010 Post-Verstärker-Wächter Investieren in den zukünftigen Preis Firmenkategorie 2011 stolz SA Homegrown CSI Meister des Jahres Award 2012 PMR Diamant-Pfeil-Preis Klee Mama Afrika hat sich als erfolgreiches, preisgekröntes Beispiel für ein nachhaltiges und effektives CSI-Projekt positioniert, das einen großen Unterschied im Leben vieler bedürftiger Südafrikaner ausmacht. Basierend auf der jüngsten von EmpowerLogic durchgeführten B-BBEE-Überprüfung erzielte Clover eine vollständige Aufteilung der verfügbaren Punkte im Rahmen der sozioökonomischen Entwicklung der B-BBEE Balanced Scorecard. Rekord von Sponsoring und160charitable Givings Clovers Sponsoring Budget für den Berichtszeitraum wurde eingereicht und genehmigt durch die Geschäftsleitung. Das Management ist verantwortlich für die Verfolgung, Bilanzierung und Berichterstattung an die Social and Ethics Committee alle Patenschaften, Spenden und gemeinnützige Givings. Unterstützungsdokumentationen werden von jedem Geschäftsbereich gepflegt, um eine transparente Berichterstattung zu ermöglichen. Sponsorships werden mit dem Ziel verwendet, Markenbekanntheit, Corporate Identity oder Verbraucherloyalität zu gewinnen, die mit der Vision von Clovers und der Vision übereinstimmt. Soziale und wirtschaftliche Entwicklung Clovers Unternehmen zielt auf die Verbesserung der BIP, Lebenserwartung, Alphabetisierung und Beschäftigung. Gemäß Artikel 43 Absatz 5 Buchstabe a Ziffer i des Gesellschaftsgesetzes (Gesetz Nr. 71 von 2008) überwacht das Sozial - und Ethik-Komitee, soweit es in die südafrikanischen Gesetze aufgenommen ist, die Aktivitäten von Clovers in den Bereichen Soziales und Wirtschaft Entwicklung in Bezug auf die folgenden Punkte: Die 10 Grundsätze der Vereinten Nationen Global Compact (UNGC) Die universellen Prinzipien, auf die sich Clover verpflichtet, die Menschenrechte, die Arbeit, die Umwelt und die Korruptionsbekämpfung einzubeziehen: Die OECD-Empfehlungen zur Korruption Ist verpflichtet, ihre Geschäftstätigkeit rechtmäßig und in einer Weise zu leiten, die die von Clover geschätzten Qualitäten, insbesondere Ethik, Integrität und Einhaltung der Gesetze, verbessert. Korruption kann in vielen Formen, einschließlich Erpressung, Nepotismus, Unterschlagung, Bestechung, Cronyismus, Patronage unter anderem auftreten. Korruption wirkt sich direkt oder indirekt auf die nachhaltige Entwicklung der Stakeholder von Clovers aus. Clovers Geschäftsprozesse, Mitarbeiterverhalten und tägliche Aktivitäten auf allen Ebenen der Organisation werden in Übereinstimmung mit den OECD Empfehlungen zur Korruption durchgeführt. Weitere Informationen zur Kompatibilität von Korruption finden Sie in unseren Berichten zu Risk Governance und Compliance. Das Beschäftigungs-Eigenkapital-Gesetz Clover zeichnet Employment Equity Gesetzgebung und relevante Codes der guten Praxis aus, die auch im Clover Beschäftigung Equity Plan umfaßt wird. Es sollte keine unlautere Diskriminierung in Bezug auf Rasse, Hautfarbe, Sprache, Religion, Geschlecht oder politische Ansichten oder aufgrund einer Behinderung bestehen. Daher erhalten alle Mitarbeiter gleiche Chancen, sich entsprechend ihrem Verdienst und ihrer Fähigkeit weiterzuentwickeln. In Übereinstimmung mit den Anforderungen des Employment Equity Act hat Clover seinen Employment Equity Plan entworfen. Die Ziele des Plans sind, die Unternehmens-Beschäftigungs-Equity-Politik insofern zu verwirklichen, als sie sich auf Beschäftigungs-Equity-Ziele bezieht. Der Beschäftigungs-Equity-Plan wird auch dafür sorgen, dass der Arbeitsplatz von Clovers von unlauterer Diskriminierung befreit ist und angemessene Fortschritte bei der Beschäftigung am Arbeitsplatz erzielt werden. Das Exekutivkomitee ist verantwortlich für die Umsetzung und Überwachung des Clovers-Beschäftigungs-Equity-Plans. Der Sozial - und Ethikausschuss wird bei der Wahrnehmung seiner Aufgaben bestimmten Personen und Führungskräften im Allgemeinen besondere Aufgaben übertragen. Die Verantwortung für die Umsetzung von Beschäftigungs-Equity-Plänen an den verschiedenen Clover-Arbeitsplätzen wird an die Standortverwalter delegiert. Alle160Eingänge sollten im Einklang mit Clovers Beschäftigung Equity-Politik durchgeführt werden. Clovers HR ist verantwortlich, diese Aktivitäten zu überwachen und dem Sozial - und Ethik-Komitee mindestens einmal jährlich über die Fortschritte bei der Überwachung von EE160-Zielen Bericht zu erstatten. PROZENT DER MITARBEITER Prozentsatz des Personals aus bestimmten Gruppen Clover definiert bestimmte Gruppen in Übereinstimmung mit dem Beschäftigungsgesetz. Eine bestimmte Gruppe bedeutet schwarze Menschen, Frauen oder Menschen mit Behinderungen. Clover hat die Anzahl der Mitarbeiter aus bestimmten Gruppen, wie auf der rechten Seite gezeigt, erhöht: Ziele des Beschäftigungs-Equity-Plans Um die Vielfalt am Arbeitsplatz zu verbessern und insbesondere das Niveau der Repräsentation von Personen aus bestimmten Gruppen zu erreichen, verpflichtet sich Clover, die gesetzten Ziele zu erreichen Unten: Beschäftigung Eigenkapitalmessung gegen Ziele Ziel 30 Juni 2013 Das breitbandige Black Economic Empowerment Act. Clover sieht eine breit gefächerte "Black Economic Empowerment" (B-BBEE) als Chance zur Steigerung der Wirtschaftstätigkeit160 und schafft so nachhaltige Lebensgrundlagen für die Landbewohner sowie einen wachsenden, nachhaltigen Konsumentenmarkt. Clover ist derzeit ein Level-6-B-BBEE-Mitarbeiter. The160Group unterzeichnet die Prioritäten der nationalen Regierungen in Bezug auf Transformation und Empowerment und umfasst die Prinzipien von B-BBEE. Es wird ein positiver und konstruktiver Beitrag zum Land bleiben. Aus diesem Grund passt die Gruppe ihre Gesamtstrategie mit einer B-BBEE-Strategie an, um eine höhere Compliance zu erreichen. Im Laufe des Berichtsjahres hat Clover EmpowerLogic benannt, um das derzeitige Niveau der B-BBEE-Compliance gegenüber den im Dezember 2012 veröffentlichten neuen Agri-BEE-Sektorcodes abzugrenzen. Die Ergebnisse dieser Bewertung bilden die Grundlage von Clovers Juni 2013 Zur Ermittlung von Leitaktionen und zur Festlegung der notwendigen Schwerpunkte, um ein höheres Maß an Compliance zu erreichen. Clover zählt derzeit relativ gut in Bereichen bevorzugter Beschaffung, Unternehmensentwicklung und sozio-ökonomische Entwicklung. Im Hinblick auf ihre Strategie wird der Konzern den Bereichen Eigenkapital, Managementkontrolle, Beschäftigungs - eigenkapital und weitere Kompetenzentwicklung besondere Aufmerksamkeit widmen. Umwelt, Gesundheit und öffentliche Sicherheit Clover bemüht sich, sein Geschäft so zu bewirtschaften, dass das Umfeld angemessen geschützt wird und die Nutzung der natürlichen Ressourcen minimiert wird und dass Umweltmanagementprogramme geschaffen werden, um zu den Nachhaltigkeitszielen des Unternehmens beizutragen. Clovers grün Initiative Strategie wurde formalisiert und begann im Jahr 2011 mit dem Ziel, eine formale ökologische Nachhaltigkeit (grüne) Strategie zu etablieren. Im Hinblick auf die Erreichung dieser Vision erkennt Clover seine Verantwortung an, die Auswirkungen seines Geschäfts auf die Umwelt zu reduzieren und so weit wie möglich zu beseitigen. Clover erkennt an, dass es bei der Erreichung der umweltpolitischen Exzellenz einen Wettbewerbsvorteil gegenüber seinen Kollegen erlangen würde, da die Energie - und Dienstleistungskosten des Nahrungsmittelherstellers etwa 30 feste Kosten enthalten. Diese Verantwortung bezieht sich nicht nur auf Operationen innerhalb der Clovers-Kontrolle, sondern auch auf Clovers-Supply-Chain-Partner, die im Zuge der Bereitstellung von Clover für erhebliche Umweltauswirkungen verantwortlich sein könnten. Bei der Verwirklichung dieser Verantwortung hat Clover ein Umweltmanagementsystem (EMS) entwickelt, das einen strukturierten Rahmen bietet, an dem kontinuierliche Verbesserungen gemessen werden können. Clover überwacht aktiv die Umwelt, die Gesundheit, die Sicherheit und die Qualität durch die Nutzung des dedizierten Entropy-Risikomanagementsystems und anderer Formen der Sicherheit. Es ist vorgesehen, dass die Entropiemessung schrittweise auf andere Bereiche der ökologischen Nachhaltigkeit ausgeweitet wird. Tabelle der verschiedenen Arten von Monitoring durch die Gruppe Informieren Supply-Chain-Partner auf Aktivitäten zur Reduzierung der Umweltbelastung und Partner mit ihnen, ihre eigenen Auswirkungen zu reduzieren. Forschen Sie mit Partnern in der Lieferkette. Gewährleistung der Sicherheit und des Gesundheitsschutzes während des gesamten Betriebs. Kontinuierliche Überwachung, um eine sichere Arbeitsumgebung zu gewährleisten. 8226 Diese Ergebnisse werden weiter in diesem Abschnitt in der Reihenfolge der obigen Tabelle beschrieben. Clover verlangt, dass jeder Geschäftsbereich regelmäßig seinen Beitrag zum Umweltschutz über vereinbarte Maßnahmen des Sozial - und Ethikausschusses berichtet. Der Chief Engineer: Instandhaltung und Sicherheit, Gesundheit und Umwelt (SHE) für die Produktion zusammen mit dem Divisionsingenieur for160Distribution sind beide verantwortlich für die Berichterstattung über die grüne Strategie von Clovers und die Einhaltung von SHE für das Sozial - und Ethik-Komitee vierteljährlich. Qualität Qualität der Rohmilch gesammelt Clovers Milchbeschaffung Geschäftseinheit sucht kontinuierlich neue und bessere Wege der Durchführung ihres Geschäfts. Im Laufe des Berichtszeitraums hat es sein elektronisches Tankersammelsystem (ETCS) abgeschlossen. Dies ist eine erste für die südafrikanische Milchindustrie und ist eine enorme Verbesserung gegenüber den in der Vergangenheit verwendeten Methoden. Obwohl wir während der Testphase einige Schwierigkeiten hatten zu lösen, sind wir zuversichtlich, dass alle diese Herausforderungen angegangen werden und dass dieses System zukünftig einen Mehrwert für Clover und seine Milchproduzenten schaffen wird. Die wichtigsten Vorteile dieses neuen Systems sind: Automatisierung der Übertragung von Milch aus den Tanks an das Clover-Milchsystem. Menschliche Eingriffe sind auf das absolute Minimum während des Milchauffangprozesses beschränkt, um ein Höchstmaß an Genauigkeit, Wiederholbarkeit, Konsistenz und Hygiene zu gewährleisten. Die Abstimmung der Milchmengen kann innerhalb weniger Minuten nach dem Abladen in den Fabriken, aufgrund der Verfügbarkeit der Daten erfolgen. Qualität über das produzierte Endprodukt Alle Clover Produkte werden in Bezug auf Qualität, Hygiene und Lebensmittelsicherheit nach internationalen Best Practices hergestellt. Alle Clover Fabriken sind ISO 9001 und HACCP zertifiziert und akkreditiert von Dritten Auditoren und erfüllen alle internationalen Standards, die für Lebensmittelsicherheit und Qualitätsmanagement-Systeme. Clover Quality Assurance führt verschiedene Tests in allen Phasen des Produktionsprozesses aller seiner Produkte durch Gut ausgebildete Techniker, in gut ausgestatteten Laboratorien, um eine konstante Qualität, Lebensmittelsicherheit und die Erfüllung der gesetzlichen Mindestanforderungen zu gewährleisten. Kleequellen Milch von 231 sorgfältig ausgesuchten Produzenten Laufende Qualitätssicherung Produktverantwortung über Rohmilchzufuhr Übergreifendes Engagement für Qualität beginnt auf den Betrieben seiner Produzenten. Im Rahmen des Programms Clovers Best Farming Practices (BFP), das auf der Internationalen Dairy Federations-Richtlinie aufbaut, konzentrieren sich die folgenden Aspekte auf: Tiergesundheit und Herdmanagement Tierfutter und Wasser Tiermedizinische und landwirtschaftliche Chemikalien Milchhygiene und - sicherheit Umweltmanagement Personal und Menschen Behandlungs - und Hygieneregister Erforderliche Register und Aufzeichnungen Seit Juni 2009 haben alle Clovers-Milcherzeuger am BFP-Programm teilgenommen. Compliance wird durch regelmäßige externe Audits gesichert und Produzenten, die 99,85 der Clovers-Milchaufnahme repräsentieren, verabschiedeten die Audits. Clover hat das oben erwähnte BFP-Programm in ein viel breiteres Clover Sustainable Dairy Model (CSDM) integriert und die Details dieses Programms wurden in einem Benutzerfreundliches Microsoft Excel-Modell, mit der Unterstützung von Volition. Dieses Modell ist nun bereit für die Umsetzung und angesichts der komplexen und sich entwickelnden Art des Programms, will Clover Phasen in der Umsetzung über eine Reihe von 160 Jahren. Die vorläufigen Schwerpunkte sind: Herdenmanagement, einschließlich der Verwaltung von Treibhausgasemissionen. Tierfutter, Weide - und Bodenbewirtschaftung einschließlich Treibhausgasemissionen und - bindung. Wasserwirtschaft und - behandlung. Tiermedizin und landwirtschaftliche Chemikalien. Molkereiprodukte und Ausrüstung (einschließlich Infrastruktur, Hygiene und Sicherheit). Milchzusammensetzung und - qualität. Umweltmanagement, Mistabwicklung und Bio-Diversität einschließlich Treibhausgasemissionen und - reduzierung Energiemanagement und Nutzung alternativer Energieressourcen zur Reduktion von Treibhausgasemissionen Bio-Sicherheit mit Schwerpunkt auf der Krankheitsbekämpfung Personal und Personen Arbeitssicherheit Mitarbeiter können Nur effizient und effektiv in einer sicheren und gesunden Arbeitsumgebung arbeiten. Es bestehen formale Gesundheits - und Sicherheitspolitiken sowie Systeme und Prozesse, um diese umzusetzen und zu überwachen. Es gibt ein einheitliches Sicherheits - und Gesundheitsschutzverfahren für jeden potentiell gefährlichen Stoff oder Betrieb am Arbeitsplatz. Alle Clovers Produktionsanlagen und großen Vertriebsanlagen wurden von einer akkreditierten externen Partei für die Sicherheit im Berichtszeitraum auditiert. Es wurden Maßnahmen nach ISO14000 (Environmental Management) und dem Arbeitsschutzgesetz (OHS) angewendet. Audits werden jährlich durchgeführt, um kontinuierliche Verbesserung zu überwachen. Folgende Ergebnisse wurden erzielt (als Prozentsatz der Einhaltung der OHS): Clover will in den kommenden zwei Jahren eine Compliance-Rate von 95 erreichen. Facility wird im Rahmen des Clovers Cielo Blu Projektes geschlossen. Beziehungen zu den StakeholderbeziehungenKonsumbeziehungen Im Laufe des Geschäftsjahres 2013 hat sich der Konzern aktiv mit allen wichtigen Stakeholdern beschäftigt. Das Management hat alle wesentlichen Stakeholder sowie deren legitime Interessen und Erwartungen des Konzerns kontinuierlich identifiziert, da die Interessen der Stakeholder im Konzern dynamisch sind und Änderungen unterworfen sind. Sobald die Stakeholder identifiziert werden, entscheidet das Management durch Konsultation mit den verschiedenen Stakeholder-Gruppen, wie weiter mit jedem Wahlkreis zu engagieren. Dieser Prozess ist Teil des Risikomanagements des Konzerns. Als Ergebnis von Clovers diverse Geschäftsmodell, Clover interagiert durch eine breite Palette von Funktionen innerhalb des Unternehmens mit verschiedenen Stakeholder-Gruppierungen auf einer kontinuierlichen Basis. Die Clover-Stakeholder, die identifiziert wurden, sind alle Stakeholder-Gruppen, die maßgeblich die Erreichung der strategischen Ziele von Clovers beeinflussen können, aber genauer gesagt sind es jene Gruppen, Einzelpersonen oder Einheiten, die von den Aktionen und Operationen von Clover oder im Gegenteil betroffen sein können Whos Operationen können erheblich auf Clovers Operationen auswirken. Unter allen wichtigen Stakeholder-Gruppierungen identifiziert Clover ein eigenes Kriterium für seine strategischen Stakeholder-Partner, deren Beziehungen für die Gruppe erforderlich sind, um ihre künftigen strategischen Ziele zu erreichen. Clovers materielle Stakeholder Stakeholder-Engagement Wie wir mit unseren Stakeholdern engagieren Ihr Beitrag zur Wertschöpfung Was unsere Stakeholder von uns erwarten Was unsere Stakeholder betrifft Method of Governance Communities, traditionelle und zivilgesellschaftliche Gesellschaft Direkte Interaktion durch verschiedene soziale Investitionsinitiativen und Umweltkampagnen in verschiedenen Gemeinschaften Partizipation Mit der Gemeinde bietet Clover die Möglichkeit, ihre Bedürfnisse zu verstehen und unser Geschäft in einer Weise, die das Leben unserer Gemeinden im Ganzen verbessertes Engagement für unsere zentralen strategischen sozialen Investitionen Initiativen hinzufügen, um das Wohlergehen der Gemeinschaft Betrachtung der Interessen der Gemeinschaft Corporate Soziale Investitionen und Spenden Bevorzugte Beschaffungspolitik Clover Mama Afrika Corporate Governance Politiken Promotions und gemeinnützige Initiativen, Social Media, Clover Consumer Center, Consumer Goods Council Loyale Konsumenten setzten ihre bewährten Marken und vertrauenswürdigen Produkte fort Die meisten bewunderten Marken bei der Erfüllung der Bedürfnisse von Verbrauchern Forschung in der Gewinnung von Consumer Insights in Produktkategorien Regelmäßige Kommunikation über alle Kernmarken über Social Media Wirksame Verbraucher-Center Umgang mit Beschwerden und Anfragen GDA-Tabelle (Guideline täglichen Menge) informiert die Verbraucher von Nährwerten in Clover-Produkte Kostenwettbewerbsfähigkeit Produkte Lebensmittelsicherheitsstandards Soziale Medienpolitik, Verbraucherkrisenpolitik, Wettbewerbspolitik, Produktqualitätssicherungsprogramme Tagungen, Konferenzen und Workshops, CSC-Aufträge aus dem Handel Umfangreicher Einzelhandelsabsatz, der die Basis für weiteres Wachstum bildet. Cloverrsquos Markenerweiterung durch Retail-Expansion in Afrika Bereitstellung qualitativ hochwertiger Produkte zu wettbewerbsfähigen Preisen Produktqualität Wirksame Produktverantwortung Wirksame Merchandising-Dienstleistungen Valutierte Partnerschaften für mehr Effizienz und weiteres künftiges Wachstum Werbemaßnahmen Handelsausdrücke Kategorie-Erweiterung Kosteneffizienz Service Level Agreements Intranet, CE Briefs, Management (In Clover), Workshops und Konferenzen, Trainingsprogramme, Anschlagtafeln, Intranet-Kommunikation und Performance-Reviews Mitarbeiter, die in Übereinstimmung mit Cloverrsquos Werte der Achtung, Integrität, Fairness und Verantwortung bilden die Grundlage unserer Geschäft. Durch die Bereitstellung von Clover-Mitarbeitern rechtzeitig aktualisierte Geschäftsinformationen und relevante strategische Informationen, würde Clover seine Strategie einbetten, während die Erreichung der Unternehmensziele Ein anregendes und erfreuliches Arbeitsumfeld und bietet gleichzeitig Perspektiven, um Karrierewachstum Aspirationen Gesundheit und Sicherheit Fortlaufende Ausbildung und Entwicklung Offene Kommunikation zwischen Mitarbeitern und Führungskräften Transformation im Einklang mit EE160Plan Zugang zu HIV-Beratungs - und Mitarbeitersozialprogrammen SHE Politik, EE-Plan, Beschäftigungspolitik Regierungs - und Regulierungsbehörden Persönliche Treffen, schriftliche und mündliche Kommunikation durch Geschäftsorganisationen, parlamentarische Portfolioausschüsse Die Regierung gibt uns unsere Lizenz, Erleichterung des ordnungspolitischen Rahmens Fortgesetzter Beitrag zum Wirtschaftswachstum und zur sozialen Erleichterung der Gemeinschaften, in denen wir tätig sind. Ausübung guter Corporate-Governance-Praktiken bei gleichzeitiger Sicherstellung der Einhaltung aller anwendbaren Gesetze Erhöhung des Beitrags für die südafrikanische Wirtschaft einschließlich der Schaffung von Arbeitsplätzen und Jugendentwicklung Gute Corporate Citizenship Zeitliche Zahlungen von Steuern Empowerment, Transformation und Einhaltung der überarbeiteten BEE-Codes Reduzierung des Energieverbrauchs Offenlegung und Management Der CO2-Emissionen Bereitstellung von Input für politische Veränderungen im Agrarsektor und Ernährungssicherheit Sitzungen und Standortuntersuchungen Sicherstellen, dass Clover Versicherungsschutz für wesentliche versicherbare Schadenereignisse hat Offene und transparente Kommunikation, die es Versicherern ermöglicht, Risiken angemessen zu bewerten Angemessenheit von Brandschutzmaßnahmen Instandhaltung von Brandschutzausrüstungen Medien Aussagen und Briefings, Social Media Seiten Die Medien tragen dazu bei, unser Markenimage zu erhalten und das Bewusstsein für neue Produkte, Community Development Programme und Veränderungen in unserer Geschäftsstrategie zu stärken Gute Corporate Citizenship Transparente und verantwortungsbewusste Berichterstattung Nichteinhaltung der Rechtsvorschriften Protokoll zur Reaktion auf Medien, Soziale Medienpolitik Rundschreiben, regionale Einzel - und Gruppentreffen mit Produzenten, Medien und den Clover-Produzentenforen Cloverrsquos-Milchproduzenten liefern Rohmilch der guten Qualität für die Herstellung unserer Milchprodukte Ein stabiler Markt für die zur Lieferung an den Klee produzierte Milch Große Schwankungen der Milchpreise Erhöht In Farm Overhead-Kosten Landreform Vertrags - und Service-Level-Vereinbarungen, - Treffen, Transaktionsinformationen, die über entsprechende ERP160-Systeme integriert werden Beteiligung am wachsenden Platzbedarf von Einzelhändlern bei gleichzeitiger Skalenersparnis und Kostensenkung in der Supply Chain Rechtzeitige Lieferung des bestellten Produktes mit professioneller Store Merchandising Clover Die nicht den vereinbarten Leistungsstufen in Vertriebs - und Merchandising-Aktivitäten entsprechen Service Level Agreements Aktionäre, Investoren und Analysten Investorenpräsentationen und Roadshows, Rundschreiben an die Aktionäre, Integrierter Geschäftsbericht, Hauptversammlung, Pressemitteilungen, Ankündigungen und Mitteilungen durch SENS, Clover-Website Investoren bieten Das notwendige finanzielle Kapital zur Aufrechterhaltung des Wachstums. Die Aktionäre werden ermutigt, an der companyrsquos Jahreshauptversammlung teilzunehmen, um über Beschlüsse zu entscheiden und relevante Fragen mit den companyrsquos Direktoren und dem Management zu besprechen. Geben Sie anhaltende Investitionsrenditen durch die Erreichung von Unternehmenszielen durch Lieferung auf eingebettete Strategie, fundiertes Risikomanagement, strategische Wachstumschancen und gute Regierungsführung zu identifizieren Praktiken Durchgängig überlegene Finanzergebnisse für nachhaltiges Wachstum Führung und strategische Ausrichtung von strategischen Chancen Strategien und Verfahren zur Sicherung von Governance, dh ERM - Politik Corporate Governance und Ethik Fortschritte bei der Projektpipeline und zukünftigen Wachstumsvorhaben Investitionen in aktuelle und zukünftige Perioden Effektivität des Risikomanagementprozesses Stabilität von IT-Systeme Preissensible Informationspolitik, Insider-Handelspolitik, ERM-Politik, Governance-Politik Lieferanten und Dienstleister Lieferanten-Meetings, Standortbesuche, Performance-Evaluierung und Audits, Business-Assoziations-Meetings Unsere Lieferanten stellen uns qualitativ hochwertige Rohstoffe und Dienstleistungen zur Verfügung Qualitativ hochwertige Produkte für unsere Kunden Geschäftsführung transparent und für beide Seiten vorteilhaft und nachhaltig durchzuführen Langfristige Versorgungssicherheit Wirksamkeit des geplanten Procure-to-Pay-Prozesses Bevorzugte Beschaffung Effizienz mit Importen Regelmäßige Treffen mit Gewerkschaften und Tarifverhandlungsforen Ein positiver Umgang mit Angelegenheiten, die ihre Mitglieder beeinflussen, sowie Fragen von beiderseitigem Interesse Positive Arbeitsbeziehungen im Umgang mit Fragen vernünftig im Verhandlungsprozess Bereitstellung von wettbewerbsfähigen Vergütungspaketen und sicheren Arbeitsbedingungen Remco, Tarifverträge Verbraucherbeziehungen, Werbung, Öffentlichkeitsarbeit und Compliance Zu Gesetzen des Verbraucherschutzes Gesetze 43 (5) (a) (iv) des Gesellschaftsgesetzes (Gesetz Nr. 71 von 2008) verpflichten Unternehmen, ihre Tätigkeiten im Bereich der Verbraucherbeziehungen, einschließlich der Werbung, der Öffentlichkeitsarbeit und der Einhaltung des Verbraucherschutzes, zu überwachen. The Groups strong and honest relationships with its consumers, principals, retail and wholesale businesses, agents and distributors, continued during the year under review. This ensures that the Groups products reach consumers throughout South Africa in good condition and at market related prices in a very competitive market. Clovers emphasis on quality products is strongly embedded in the quality raw milk which the Group procures from its producers. Consumer relations are managed through the Clover Consumer Centre (CCC). The CCC strives to consistently service our consumers expectations and needs by demonstrating the required respect for their needs and opinions. All complaints and enquiries are handled professionally by trained consultants to ensure that the image of Clover, Clovers brand names and services are protected, while ensuring compliance with the Consumer Protection Act. As required by the Consumer Protection Act, a procedure is in place and will be applied in situations where a serious risk or threat exists for Clover in160general, Clovers brand names or products, Clovers personnel or on possible environmental impact. Complaint which can: Damage the image of Clover or the Clover brand name. Threaten the health or safety of the consumer andor Clover personnel. Hold a contamination threat to the environment. Result in a consumer suffering damages as a result of a Clover product. Possibly result in negative publication in the media. Possibly result in legal action against Clover. Possibly result in the consumer referring the matter to the Consumer Council. Client requests feedback in writing The complaint receives urgent attention and the consumer is kept informed by the head of the Consumer Centre until such time as the investigation is completed and complies with the requirements of the consumer. Client wants to speak with manager Complaints, which are not satisfactorily dealt with by the consultant and where the consumer insists on communicating with the head of the Consumer Centre, the complaint must be escalated to her for her attention. Completed by consultants Complaints are attended to by the consultant with the information at hand and no further escalation of the complaintincident is necessary. Consumer engagement and the Way Better philosophy Clovers corporate strategy is to build onto existing competencies within the Group and to establish a culture of exceptional performance with a view to creating a platform for future market expansion. Key to all of Clovers activities is the expansion of capacities to share in the strong growth in consumption in the product segments in which it has a leading market share. Clover has identified a unique set of strategic pillars on which the success of the business is founded. The philosophy behind the Way Better initiative is therefore more than a marketing campaign. It represents a cultural step-change in seeking optimal ways of delivering on the corporate strategy and is aimed at setting new standards in best practice and to attract the best in the industry to Clover. The Way Better metaphor was created in order to engage and introduce Clovers consumers to this enhanced approach to doing business. Although primarily a marketing campaign, Clover Way Better draws on Clovers position as a market leader that innovatively adds value through convenience and quality as highlighted by the number of ideas and compliments that we received during the year. Public Relations within Clover is managed through the Corporate Services department. No Clover employee may comment or conduct any interviews with the media on behalf of Clover. Media communication in Clover is restricted to two executive members namely Johann Vorster (Chief Executive), Jacques160Botha (Chief Financial Officer) and Jacques van Heerden (Company Secretary). Written communications are outsourced to an external agency. Compliance with Consumer Protection Laws The Group has taken proactive steps to ensure that it is fully prepared for the application of the Consumer Protection Act (CPA). High-level induction programmes to key individuals in the Group on the potential effect of the application of the CPA are ongoing. The process of establishing a CPA Centre of Excellence is in progress which will enable Clover to maintain its commitment towards compliance with laws and regulations. The marketing department provides the Social and Ethics Committee with a regular reports of its activities to enable the Social and Ethics Committee to monitor compliance to CPA. Furthermore logs are maintained for any promotional and trade coupon promotions in line with the CPA: Trade coupon and promotion policy, which are also reported to the Social and Ethics Committee. The Company Secretary together with the Group Manager: Product Innovation and Technology are responsible for the annual review of the companys compliance with regards to the following acts: Consumer Protection Act. Food stuff, cosmetics and disinfectants Act. Other labelling legislation. Labour and employment Project Driven During the financial year, Clover launched Project Driven which outlines the broad strategy for addressing the Human Capitalsresponse to: Attraction and retention of employees Clover recognises that there is a limited pool of skilled resources available, and as part of our Way Better and Driven campaigns, we aim to enhance the attraction and retention of employees. Achieving our Vision and Mission is largely dependent on Clovers ability to attract and retain high-calibre individuals. Change of the labour landscape Clover recognises the need to assess and respond to the dynamics in the social and labour environment on an ongoing basis. Special focus is placed on optimising industrial relations platforms at different levels in the Company. At Clover, we respect the rights of our employees. Productivity improvement Productivity and continuous improvement initiatives are part of the Clover culture. Through Project Driven there is renewed focus on team performance, multiskilling, variable pay opportunities and a number of other Way Better initiatives Alignment of employees We believe the alignment of employees is critical for business success, and to build a culture of exceptional performance. Our approach towards performance management and the mechanisms that support individual and team performance are being reviewed. A range of communication platforms are used to enhance alignment examples include management breakaway sessions, team meetings, in-house publications, union meetings, etc. To secure Clovers position as one of southern Africas leading fast moving consumer goods companies, the Group proactively engages in the development of employees in all disciplines. Specific focus has been on Merchandiser Learnerships, technical training in our production facilities, the upskilling of sales personnel and management and leadership development. Financial assistance for study purposes was further extended, and a number of internships were introduced. Going forward, it is acknowledged that a range of new skill sets will be required. This will necessitate renewed focus on fast tracking, coaching and mentoring of young160talent. The dynamic environment in which we operate and our expansion plans demand that we review our resourcing strategies. Project Driven will enhance how Clover attracts, engages, motivates and rewards our workforce, so as to maximise the likelihood of achieving our vision through developing and reinforcing a shared mindset. The company fully supports employment equity in the workplace and various measures are in place to assist in reaching employment equity objectives. These include bursaries, internships and other employee development initiatives. (For further details refer to paragraph 4.3 above) as highlighted in the Employment Equity report. Innovation and technology We encourage innovation in Clover and acknowledge the need to equip personnel with technology that will enhance performance. A number of projects that will result in new generation business systems being introduced, are in progress. Our decision to exploit opportunities which exist in Africa are placing new demands on the business. The Human Resources function is assisting with the process of manning these operations. Clover is committed to conducting its business activities lawfully and ethically. To ensure compliance with legislation, measures are in place and regularly reinforced. Clovers strategy for continued sustainable development Economic viability In order to remain economically viable, Clover needs to continuously evolve its business, partnerships and products. During the review period, Clover continued with its strategy of investing in and concentrating on branded and value-added products. During the period under review, Clover commenced with the final phase of project Cielo Blu, the Groups capital expansion and repositioning programme commissioned in 2011, with the move of the Mayfair beverages factory into the Clayville facility. The relocation of the Groups dairy equipment to coastal regions has been completed and has drastically reduced supply chain management complications faced in the prior year. The savings from Project Cielo Blus capacity and efficiency improvements are delivering against expectation and are expected to fully accrue to Clover over the next year. Cielo Blu has made a significant impact on the amount of fuel used for transporting product. Prior to the relocation of the production facilities closer to the milk source, Clover had to transport raw milk in specialised trucks to the production facilities. Due to their specialised nature, these trucks carried no load on the return leg. With production facilities closer to the milk source, pre-packed products can now be transported on conventional trucks, with a second payload on the return leg, significantly reducing Clovers transportation costs. Sustainable supply Sustainable milk supply Clover is one of few large dairy processors who have a longstanding history of purchasing milk from previously disadvantaged producers. Economic factors and sustainable milk quality are the largest barriers to entry for these farmers. Likewise, a number of Black Economic Empowerment (BEE) initiatives have failed due to a lack in expertise, support and dedication at farm level. There are, however a number of very good examples of commercial producers partnering with communities and labour. Most of these projects were initiated by Amadlelo Agri (amadlelo. co. za) and are sustainable. Sustainable supply is ensured through Clovers Unique Milk Procurement System (CUMPS) and the Company pays a market related price for raw milk. The Best Farming Practice (BFP) programme further assists producers to increase efficiency and become more sustainable. The downward trend in the Groups milk producer numbers is a result of continuous consolidation in the primary industry and is not a threat to the sustainability of milk supply in the short - to medium term, but does have an impact on job creation, as bigger producers tend to mechanise more. The consolidation of milk producers and high barriers to entry, especially for emerging farmers is not in the160best interest of rural development or job creation. It is therefore very important for the industry and government to find a way of ensuring a viable agricultural sector and dairy160industry. Sustainable milk supply Cielo Blu focus Pinetown production Installed a steriliser (18 000 litreshr). Installed aseptic tank storage. Installed a UHT filling line (1000 Slimline) bringing the total to 4. Upgraded utilities. Plant capacity increased by 30m litres per year. Created 14 additional jobs. Clover is cognisant of the fact that integrated reporting is a phased approach. The Group continues to collect, collate and report on an increasing number of key sustainability performance data to enhance the overall quality of Clovers performance in this regard. The Group remains committed to continuous improvement in all matters that affect the sustainability of Clover and its160activities. This Report of the Social and Ethics Committee will be presented by one of its members to the Companys Annual General Meeting. In the opinion of the members of the Committee this report fairly presents the standing of the Company and Group in relation to the matters specified in regulation 43 to the Companies Act 2008 for the year ended 30 June 2013. TA Wixley ChairmanHanoi declares tax debt firms The Hanoi Taxation Department has continued declaring the list of businesses with tax debts including many from construction and real estate fields. Of the debtors, 184 have been named this time with the total debt of VND196 billion (US8.79 million). The number of tax debtors has increased and one of reasons for this is attributed to the Ministry of Finances decision to reduce the fine rate on the debtors from 0.05 percent to 0.03 percent, which is lower than bank rate. Moreover, some businesses have intentionally delayed tax payment to have funds for their projects. Therefore, the declaration of tax debtors has received public concurrency because it will contribute in improving the real estate markets transparence so that customers can make the right investment decisions. Experts have proposed that after declaring the debtors, tax agencies should apply stronger sanctions on them, for instance land or project revocation, to further the real estate markets transparence. Vietnam needs to build food brands: experts Building a brand strategy for Vietnams food industry will help increase recognition of the countrys food products on the world market, thereby boosting the sectors growth through stronger exports. Deputy Minister Industry and Trade, Do Thang Hai, told a workshop in Hanoi on October 4 that building a food brand strategy is part of the national branding programme aimed at developing brands for Vietnams export commodities in highly competitive fields. Under the programme, companies will be given advice while promotion activities will be intensified to develop a national image for the food industry. Vietnamese foods do not command high prices or attention in domestic and international markets, despite their high quality. Last year, Vietnams total agricultural export turnover was up to US20 billion, accounting for 12 per cent of the countrys exports. Nguyen Ngo Vi Tam, general director of Vnh Hon Company, said Vietnamese agricultural products encounter barriers and exporters are short of market information. Recently, some fruit has been exported to developed countries. However, the export volume has been small without clear trademarks or products recognition, Tam said. Bui Huy Sn, director of the ministrys Vietnam Trade Promotion Agency (Vietrade), said the country has diversified food resources different from others in the Asian region. However, the efforts of individual producers cannot provide foreign customers with adequate awareness of Vietnamese foods quality, value and supply ability. The promotion of Vietnamese food to foreign markets has not been effective as the country has not built a common trade market, Sn said. He added that foreign customers often pay attention to a countrys whole food sector, rather than to separate products. Companies should apply modern technology to minimise material loss and ensure food safety. They also need to do market research, diversify products to match the taste of each market, and consolidate distribution networks, he added. In the Republic of Korea, for example, the Government has designated the food industry as a foundation for the countrys development and culture. Thus, the number of Korean restaurants in foreign countries has surged and is expected to reach 40,000 in 2017. The development of the food sector has also considerably improved business opportunities in agriculture, forestry, tourism and culture. Bruno Angelet, Ambassador and Head of the EU Delegation to Vietnam, said the country has become a big exporter. However, the added value of several agricultural products was still low. He said brand names not only build name recogniition but also help reorganise logistics systems and control the quality of production chains. Vietnam has registered records in rice and coffee exports. Hence, brands would help improve those products competitiveness in global markets. Food producers should review supply chains and take advantage of geographical differences to improve trade mark value, he added. A memorandum of understanding on co-operation in implementing the programme was signed this week by Vietrade, the Netherlands Centre for the Promotion of Imports from Developing Countries (CBI), and the European Trade Policy and Investment Support Project (EU-MUTRAP). Vietnam, Mexico tighten economic link Mayor of Toluca, capital city of Mexico State, Mexico, Fernando Zamora Morales said he wished to welcome Vietnamese investors, including those from Da Nang, to do business in the city. During a reception on October 3 for visiting permanent Vice Secretary of the Da Nang municipal Party Committee Vo Cong Tri, the Toluca Mayor expressed his delight at receiving the first Da Nang delegation to Mexico and Toluca, the two first twinned cities between the two countries. He lauded Toluca as a safe destination for foreign direct investment. With similarities and cooperation potential in high technology, education-training, tourism and sustainable development, Tri expressed his determination to advance Da Nang-Toluca ties to bring benefits for the two peoples. Briefing the host about Da Nang, Tri invited Toluca officials to the city next year on the occasion of the Asia-Pacific Economic Cooperation (APEC) Summit and pledged to consider projects from them. At the reception, Vietnamese Ambassador to Mexico Le Linh Lan hoped that Mexican President Enrique Pena Nietos visit to Vietnam next year would lift bilateral ties. She wished that the Toluca officials will visit Da Nang in the near future to discuss strengthening bilateral ties within the framework of the APEC forum and the Trans-Pacific Partnership agreement, to which both Vietnam and Mexico are members.-VNA German investors shift attention to Vietnam German businesses are seeking new investment opportunities in Vietnam, an entrepreneur told reporters from Dau tu (Investment) newspaper. The newspaper quoted Marko Walde, chief representative of German Industry and Commerce Vietnam (GICAHK Vietnam) as saying that German firms noticed the increasing attractiveness of Vietnam thanks to the establishment of the ASEAN Community and the countrys signing of important free trade deals, not to mention its existing advantages. According to the German Embassy in Hanoi, many major German companies, which are operating in various fields such as automobile, energy and industrial machinery in Vietnam, plan to expand their presence in Vietnam to take advantage of the improved investment climate and signed free trade agreements (FTAs). For example, Terra Wood, a company specialising in green energy solutions, has proposed two projects on wind and solar power with a total investment of 400 million USD and combined capacity of 300 MW in the central province of Quang Ngai. Some sources revealed that Marquardt Group will arrive in the central city of Da Nang next month to discuss with municipal authorities the production of hi-tech automobile equipment and components. The project would have an investment of about 39-50 million USD and generate jobs for some 500-600 local workers. Mercedes-Ben also has plans to expand business in Vietnam after investing 20 million USD in the country in 2013-2014. Vo Quang Hue, Managing Director of Bosch Vietnam, said Vietnam was one of the companys key markets in Southeast Asia in the 2015 fiscal year, posting a 50 percent in sales revenue. We want to turn Vietnam into a strategic center for our manufacturing and research and development activities in the region, he said. This year, Bosch injected over 20 million USD into its manufacturing plant in the southern province of Dong Nai, bringing the companys total investment in Vietnam over the past five years to 340 million USD. President and CEO of Siemens Vietnam Pham Thai Lai also described Vietnam as an important market of Siemens in the region, revealing that the company will continue investment in the country in the years to come. Vietnam will enjoy big benefits from the Vietnam-EU Free Trade Agreement (EVFTA) and the Trans-Pacific Partnership (TPP) agreement when they come into force, he said, adding that Siemens wants to get involved in thermal power and transport projects in the market, for example, the metro No.2 in Ho Chi Minh City. According to a recent survey conducted by GICAHK Vietnam, more than 50 percent of German businesses said they are optimistic about the economic development prospects in Vietnam, while 47 percent of respondents expressed their confidence in the countrys economic growth next year. As many as 70 percent of German enterprises said they are satisfied with their business outcomes in Vietnam while 58 percent are confident in future revenue increase. In particular, 54 percent of respondents confirmed that they will increase investment capital in Vietnam and 58 percent have recruitment plans in 2017. Close to 300 German businesses are operating in Vietnam with 268 valid projects worth 1.36 billion USD. German Ambassador to Vietnam Carl Georg Christian Berger said apart from giants such as Mercedes Benz, BMW, Siemens and Bosch, most of German businesses in Vietnam are small-and medium-sized ones. Germanys investment in Vietnam will increase further in the future if the Southeast Asian country could remove obstacles in administrative and judicial procedures, the Ambassador said, adding that the embassy is coordinating with the Ministry of Industry and Trade and the Ministry of Planning and Investment to build a mechanism to support German businesses and define fields that need to draw German investment. Vietnam Securities Depository marks 10 years of operation The Vietnam Securities Depository (VSD) is now managing 1.6 million securities depository accounts, it was reported at a ceremony in Hanoi on October 3 to celebrate the VSDs 10 years of operation. According to VSD General Director Duong Van Thanh, the total payment value of securities transactions in the first eight months of 2016 hit 1,300 trillion VND (around 58.3 billion USD), up 21 times compared to the figure of ten years ago. VSD has granted 19,625 transaction codes to foreign organisations and individuals. As many as 15 out of 17 open-end funds and two exchange-traded funds operating in Vietnam selected VSD as the provider of transfer agent services as of August 31. On the occasion, the VSD was awarded the Labour Order - second class. 2016 wages of apparel laborers up 12 The average salary of laborers in the textile and garment sector has increased by 12 this year compared to last year, shows a survey of online recruitment provider JobStreet. Data of JobStreet showed Vietnamese apparel employees can earn US402-604 per month each, equivalent to only half of that in Malaysia, 25 of Singapore, 1.1 times lower than in the Philippines but 1.2 times higher than in Indonesia. The wage is also higher than the countrys average salary of US384-582 per person per month. Earlier this month, the International Labor Organization (ILO) announced Vietnam as a country with the lowest non-compliance rate of 6.6 recorded for the minimum wage in the garment, textile and footwear sectors among seven garment exporting countries in Asia. The rate meant for every 100 wage employees in the sectors, 6.6 earn less than the minimum wage set to protect wage earners from unduly low pay, the ILO said. The Philippines topped the list with a rate of 53.3 while Cambodia and Indonesia are among countries which pay laborers in the sectors well below the minimum wage. According to Jobstreet, the recruitment demand for laborers in the apparel sector in the first six months this year surged four times against the same period last year. Firms, banks to ink contracts worth VND90 trillion Around 537 businesses in HCMC look set to sign loan contracts worth a combined VND90 trillion (US4 billion) with lenders next week under an enterprise-bank matching program, the State Bank of Vietnams (SBV) HCMC branch said on October 3. The city governments socio-economic performance report in January-September showed that banks had pledged more than VND159.9 trillion in loans for 18,916 corporate borrowers in the program as of September 12. After lenders and borrowers ink contracts on October 10, the amount will swell to nearly VND250 trillion, well above VND212 trillion pledged by 17 banks early this year. Annual interest rates are not higher than 7 for short-term credit and 8-10 for medium - and long-term loans within the enterprise-bank matching program. At a review conference on the implementation of the program held early this year, the SBVs HCMC branch said lenders had registered a bigger sum to give firms this year than they did in previous years. Besides, the program will focus on small - and medium-sized enterprises (SMEs) and those active in supporting industries in HCMC. HCMC vice chairman Le Van Khoa told the conference that SMEs have found it hard to take out bank loans due to mortgaged asset issues. He said lenders should be flexible about lending to support businesses to gain access to capital. Earlier, the city government set a target of lending VND60 trillion to companies in the 2015 program. In reality, the sum reached VND173.18 trillion, with short-term rates standing at 6-7 per annum and medium - and long-term rates at around 9 per year. The enterprise-bank connectivity program has been conducted over the past four years in HCMC with support from the city government, the SBVs HCMC branch, the municipal Department of Industry and Trade and other relevant agencies. According to the citys January-September socio-economic performance report, by end-September capital mobilization had reached an estimated VND1,724 trillion, a 10 pickup from end-2015 and a 15.58 rise from a year earlier. Deposits in the Vietnam dong increased stronger than those in foreign currency, and accounted for over 87.5 of the total. Meanwhile, total outstanding loans had exceeded VND1,399 trillion as of September 30, up 13.3 versus the end of last year and 20.93 year-on-year. Of the amount, 75 went to the manufacturing sector and the remainder to sectors like real estate and securities. By the end of July, the bad debt ratio of the baking system in HCMC had dropped to 3.86, down 0.06 percentage point from end-2015. Lending rates fell slightly and remained stable, which helped more firms take out bank loans. Credit focused on the production sector and supported businesses to expand operations. Thai Central Group pledges long-term investment in Viet Nam Deputy Prime Minister Vuong Dinh Hue praised the Thai-based Central Groups investment in distribution, wholesale, and retail sectors, saying that he expects the group to continue to invest in these sectors. At a reception for the groups general director in Viet Nam Jariya Chirathivat in Ha Noi on October 3, Hue praised the group for complying with Viet Nam law, including paying tax after its acquisition of the Big C super market chain in Viet Nam. The deputy PM suggested that the group join production chains of Vietnamese businesses in the industrial and agricultural sectors to produce safe, quality products. Jariya Chirathivat, who is also Central Groups legal representative in Viet Nam, pledged that the group would provide high-quality products for the country, adding that it had a policy to work with Vietnamese producers to make products for the Big C supermarket chain in Viet Nam and for export to Thailand. In July, the group in collaboration with the Ministry of Industry and Trade of Viet Nam successfully organised Vietnamese Goods Week in Thailand. Through the event, it found several Vietnamese producers to make goods for exporting to Thailand, she said. Previously, the group has supported Binh Duong-based furniture company Binh Phu to supply US1.2 million worth of in-room furniture to its six-star Park Hyatt Hotel. Earlier, the Thai group purchased Big C Vietnam and a 49 per cent stake of Nguyen Kim electronics retailer and has taken over e-commerce site Zaloras operation in Viet Nam. Number of businesses increases in Viet Nam Viet Nam had 81,451 new registered businesses in the first nine months of this year, focusing on manufacturing and processing. According to the General Department of Statistics, the newly established businesses have the total registered capital of VND629 trillion (US28 billion), an increase of 19.2 per cent in terms of the number of businesses and 49.5 per cent in terms of registered capital, compared with the same period last year. On average, an individual business registered capital increased by 25.4 per cent to VND7.7 billion (344,000). The number of registered labourers for the said businesses increased to 928,700, equal to 92.9 per cent of 2015s number. In the first nine months of 2016, 20,510 businesses resumed operation, an increase of 59.6 per cent compared with the 2015 increase of 8.2 per cent. This brings the total amount of new businesses and reinstated businesses to some 102,000. The General Department of Statistics said the production and business trend within the manufacturing and processing sectors had witnessed a rise, with positive outlook for the third quarter of 2016. These sectors showed an increase of 7.4 per cent in production for the first nine months of 2016. This growth trend shows the effectiveness of the new Governments solutions and legal framework in supporting and encouraging business development to find new orientation and opportunities. G-bond mobilisation lower in September Ha Noi Stock Exchange helped offload VND13.7 trillion (US617 million) in government bonds (G-bonds) through 17 auctions held in September, down 58.3 per cent from the bonds offloaded in August. In particular, the State Treasury mobilised VND11trillion, the Bank of Social Policy mobilised VND2.14 trillion and the province of Ba Ria-Vung Tau raised VND500 billion. The coupon rates of five-year term bonds ranged from six to 6.77 per cent per annum, seven-year term bonds were at 6.2 per cent per annum, 10-year term bonds were from 6.5 to 7.5 per cent per annum, 15-year term bonds ranged from 7.47 to 8.07 per cent per annum, 20-year term bonds were 7.73 per cent per annum and 30-year term bonds were from 7.98 to7.99 per cent per annum. Compared with August, coupon rates in September of seven-year bonds reduced 0.14 per cent per annum, 15-year bonds decreased by 0.18 per cent per annum and 30-year bonds declined 0.02 per cent per annum. On the secondary bond market, the total volume of G-bonds traded outright reached over 951 million bonds, equivalent to transaction value of over VND100 trillion, up 10.4 per cent in value compared with August, while repos transaction reached more than 496 million bonds, equivalent to the transaction value of VND48.7 trillion, down 10.5 per compared with August. Foreign investors also made outright purchases of more than VND7.9 trillion and outright sale transactions of over VND5.3 trillion. Thus, foreign investors were net buyers of VND2.6 trillion on the bond market. They made repos sale of over VND309 billion and no repos buys in September. Coteccons plans to issue 115.5 million bonus shares Coteccons Construction JSC (Coteccons) plans to issue 16.37 million bonus shares at an issuance ratio of 3:1 for shareholders to increase its equity. That means each shareholder will receive one new share for every three shares that they own. The total value of the bonus shares is in the region of VND2.6 trillion (US115.5 million). Funding for the issuance will be deducted from the companys share premium, which was more than VND1.38 trillion at the end of last year. Coteccons will finalise the list of shareholders to receive the new shares on October 18. The companys employees have recently received VND530 billion worth of 2.4 million shares from the employee stock ownership plan. The companys shares, listed as CTD on the HCM Stock Exchange, yesterday jumped 3.9 per cent to close at VND269,700 after the plan was published. VRC derailed by low-cost airlines, modern highways After two straight quarters of falling revenue the Vietnam Railway Corporation (VRC) said recently it wont be amping up hiring or revving up mothballed locomotives anytime soon. Tran Ngoc Thanh, chair of VRC, told an audience gathered at a recent business forum in Ho Chi Minh City that the railways revenue for the first half of 2016 dropped 22.50 on-year to US88.60 million (VND1.95 trillion). Passenger and cargo volumes have fallen for two straight quarters, he said, but he didnt offer any information on how the railway is continuing to pay ongoing operating expenses with such a devastating loss of top-line revenue. He attempted to cast the blame for the lower revenue in part on the collapse of the Ghenh Railway Bridge in Dong Nai Province, which, he alleged, had resulted in lower transport of cargo and passengers in May and June. Another excuse he proffered was that the massive fish deaths in the four central coastal provinces somehow negatively impacted the volume of freight and passengers, but it was never clear to anyone exactly what point he was trying to make. One seemingly logical explanation he offered for the decline was that the overall improved highway transportation system has resulted in more travellers and cargo being transported by vehicle. He specifically pointed to the opening of the Noi Bai-Lao Cai Highway last September, noting that passenger and cargo transport by rail has steadily declined since the ribbon cutting ceremony. The number of passengers on the Hanoi-Dong Dang railway line along with the quantity of cargo and passengers on the Gia Lam-Nanning international train have also plummeted due to the inconvenience travellers face passing through the Vietnam-China border-gate, added Mr Thanh. The VRC has submitted a proposal to the Ministry of Culture, Sports and Tourism to address the unfortunate situation, he said, that calls for streamlined procedures making it more convenient for travellers. Nguyen The Vinh, deputy director of Saigontourist, in turn noted his belief that a major contributing cause of the decline in rail passenger traffic is that more tourists are now travelling by air and foregoing rail. He suggested that this is due to the fact that airlines are offering a bevy of low cost air tickets this year. The price of an air ticket at one airline, he said, recently was US26.72 (VND600,000) for a one-way ticket from Hanoi to Danang while the rail fare was US31.18 (VND700,000) per bed, one-way for a 4-bed cabin, with air conditioning. In his opinion, he didnt think that VRC could compete on price or quality of service with the airlines at these rates and, as a result, its cutting heavily into revenue and profits of the railway. Dao Anh Tuan, director of Saigon Railway Transport Joint Stock Company, added credence to Mr Vinhs claim saying the number of passengers booking tickets on routes from Ho Chi Minh City to Danang, Hue, Dong Hoi and Vinh, was done sharply this summer against last. Nguyen Hong Hai, deputy director of Saigon Railway Transport Joint Stock Company, said all railway charges should be re-evaluated and lowered with the overarching goal of boosting revenue. In particular, he said, discounts should be offered for large cargo shipments. Obviously, there is much more to this story say market analysts because if the revenue drop was as significant as reported by Tran Ngoc Thanh, chair of VRC, roughly US26 million, then how is the railway paying its bills. A US26-million-dollar loss of revenue would certainly derail most companies and it just doesnt pass the smell test that low cost airlines and modern highways alone would have this significant an impact without alarm bells having rung long ago. Hai Duong lures more than US200mln in FDI The northern province of Hai Duong has attracted US202 million in foreign direct investment since the beginning of this year, as heard a local meeting on October 3 between the provincial Commission for Popularisation and Education and Hai Duong newspaper. Head of the business registration office from the provincial Department of Planning and Investment Le Xuan Hien said the province licensed 15 new projects worth US76 million and allowed investment increases for 31 projects. So far, the province has lured US6.9 billion in 321 foreign-invested projects. Besides, VND3 trillion (US136.3 million) was poured in 43 new projects and 17 existing ones by domestic investors in the period. In the first nine months of this year, 900 new businesses were established, up 25 year-on-year. Nguyen Hong Son, head of the provincial Commission for Popularisation and Education Hai Duong aims to become one of the 20 most competitive localities by 2020. To that end, the province has committed to cutting business registration to two working days and 50-60 of administrative procedures under the authority of the provincial Peoples Committee. All delayed cases will receive documents of explanation or apology. By 2020, Hai Duong strives to increase the number of businesses 1.5-fold and boost dialogues between authorities and enterprises, making it easier for businesses to give feedback on local policies. Vietnam to launch combined stock index this month The VNX Allshare index will be officially launched on October 24 with a base value of 1,000. Vietnam will launch a major new stock index on October 24 that will include shares listed on the Ho Chi Minh Stock Exchange (HOSE) and the Hanoi Stock Exchange (HNX), the government has announced. The existence of two stock markets has held back investors, especially foreigners, whose investment has accounted for around 15 of total trading value on the HOSE so far this year, up slightly from 2015. The move aims to consolidate the two into one index called the VNX Allshare index that reflects the price movements of all stocks on the market, said HOSE Chairman Tran Dac Sinh. Together with the launch of the derivatives market in 2017, this joint index is expected to attract more foreign investment and take Vietnam one step closer to international practices. Currently, there are 208 companies listed on the HOSE and 180 on the HNX. In order to list companies must meet certain standards including liquidity and free-float rate. Vietnams current benchmark VN Index was Southeast Asias best performer in 2015, and has gained over 18 so far this year, the second strongest in Asia, according to data from Reuters. VinMart stores to reach 1,000 by end of 2016 The number of VinMart convenience stores of Vingroup is expected to reach 1,000 in total by the end of this year. The group currently runs 650 shops across the nation. Le Viet Nga, Deputy Director of the Domestic Market Department under the Ministry of Industry and Trade, said the convenience stores help boost Vietnams retail market. The Ministry has offered numerous incentives to support convenience stores to enhance domestic consumption. The group set a retail development strategy involving the construction purchase of 100 VinMart supermarkets and 1,000 VinMart convenience stores by 2017. The strategy aims to provide perfect service and quality goods for consumers. Danang property market continues to attract buyers The condotel market in the central city of Danang had the strongest growth in Quarter 3, according to property service group CBRE Vietnam. CBREs quarter report for Danang noted that more than 2,800 condotel units were put on sale in Quarter 3, bringing the total supply to nearly 6,000 units in 2016, with 67 in the high-end category. As of the end of the third quarter, 70 of high-end condotel units have been sold while the figure in the mid-end segment is 30, down 4.2 percentage points and 67.9 percentage points, respectively. Marc Townsend, Managing Director of CBRE Vietnam, said one reason behind the sales slowdown was greater choice for customers, making them more cautious. The resort villa market did not change much in the past quarter and supply is limited because there are few new projects. 80 of resort houses have been sold but no major supply will come on the market in the next quarter. The number of apartments sold in the quarter dropped by 34 from the previous quarter and 47 from one year ago, with 85 of the sold units belonging to the mid-end segment. According to the Danang Tourism Department, the city welcomed 4.41 million tourists in the first nine months of this year, of which international tourists accounted for 29, an increase of 48 from 2015. With the positive tourism prospects, condotel will maintain stable growth and remain attractive, CBRE said. Meanwhile, the apartment market saw a 34 drop in sales from Quarter 2, the company reported, adding that 85 of the sold units were in the mid-end range, and buyers were mostly local residents. Townsend remarked that the market faced fierce competition from condotel, which attracted investors from Hanoi and Ho Chi Minh City. Vietnam to scrap controversial online business rule The startup community in Vietnam can breathe a sigh of relief now that the government has decided to get rid of a rule that would criminalize online business violations with possible jail sentences. The Justice Committee of the National Assembly, Vietnams top legislature, on October 3 agreed with the justice ministry that Article 292 should be removed from the 2015 Penal Code. The assembly is expected to make the final decision soon, but it is almost certain that the rule will be scrapped. Under the article, companies providing services online without being properly registered would be fined as usual, just like most business offenses. But the rule would take a step further: when businesses generated a profit of VND50 million (US2,200) or revenue of VND500 million (US22,000), there would be criminal charges that could lead to jail terms of up to five years. The article was enshrined in the 2015 Penal Code, which itself had been scheduled to come into effect on July 1 but later postponed due to multiple errors and loopholes. Article 292 is one of the most controversial parts of the code. Justice Minister Le Thanh Long said the article has met with strong opposition. The local startup community, with most members providing services online, in July filed a petition calling for the criminalization to be reviewed. The petition, sent to both the National Assembly and the cabinet, had nearly 6,000 signatures. Lawyer Tran Duc Hoang said Vietnamese startups would be hurt by the article while foreign services providers such as Facebook are not subjected to strict rules. The Vietnam Chamber of Commerce and Industry has recently asked legislators to scrap the article, warning of negative impacts on the economy. The chamber, which represents thousands of local companies, said the rule would be incongruous with the modern era of online services and startups. Malaysia Berjaya group interested in investment in Danang Malaysia-based Berjaya Group will study on implementing some projects in central Danang City, said the group President Vincent Tan at an October 3 meeting with Secretary of Danang Party Committee Nguyen Xuan Anh. Mr Anh said real estates and high-grade apartments and resorts obtain an average annual growth rate of nearly 30, making a considerable contribution to the city tourism and trade. This year, the city is expected to welcome more than 5.1 million visitors, including over 1.5 million foreigners. He hoped that with its advantages and incentives for investors, Danang will become a destination for Berjaya group. For his part, Mr Tan expressed his deep impression on the citys dynamic development and acknowledged its potential in real estates and tourism. The Danang leader told the guest that Malaysian businesses have invested in 11 projects in Danang with a total registered capital of around US118.1 million. Danang leaders have held many meetings with Malaysias leading businesses, encouraging them to invest in the city. Banking sectors goals achievable: SBV Deputy Govenor Deputy Governor of the State Bank of Vietnam (SBV) Nguyen Thi Hong expressed optimism about achieving its yearly goals during talks with members of the European Chamber of Commerce and Industry in Hanoi on October 3. Early this year, after several banks upped interest rates, the SBV lowered inter-bank rates and maintained suitable monetary supply to ease pressure on deposit and lending rates, Hong said. The SBV also increased foreign exchange reserves, took measures to stabilize exchange rates and issued more government bonds, she added. She said that as of the end of September, credit growth neared 11 and is forecast to reach 18-20 as targeted. On exchange rates, Hong said that since the beginning of this year, the SBV has fixed daily reference exchange rates based on movements in domestic and global markets, thus stabilising the exchange market. Affirming that banking restructuring and bad debt settlement is a continuous process, Hong said such efforts from 2011-2015 boosted the restructuring of businesses and financial markets. According to her, the SBV will consider submitting to the government a scheme on restructuring the system of credit organisations in combination with settling bad debts for 2016-2020, towards keeping bad debts below 3 and developing a modern, effective and safe banking system by 2020. RoK commences shoe factory construction in Can Tho The Republic of Korea (RoK)s Taekwang Group has started construction of a sport shoes factory in Hung Phu 2B Industrial Zone in Cai Rang District, southern Can Tho City. The over US170 million plant covers an area of 62 hectares and includes a workshop, a warehouse, and an office building. The project is scheduled to be completed in 2017, generating about 35,000 jobs and earning US455 million in revenue each year. General Director of the Teakwang Can Tho Co. Ltd Nam Jung Dae said the factory will use machineries and equipment in line with standards required by the USs Nike Inc. Its products will be distributed in accordance with Nikes orders and exported to countries worldwide. According to RoK Consul General in Ho Chi Minh City Park Noh Wan, as the third owned by Taekwang in Can Tho the project will help further expand economic co-operation between the two countries, adding that the Viet Nam-Korea Free Trade Agreement (VKFTA) and other FTAs signed between Viet Nam and its partners are facilitating bilateral economic links, contributing to soon realising the two nations US70-billion trade turnover target by 2020. Hi-Tech Parks join hands for integrity Hoa Lac High-Tech Park (HHTP), Danang High-Tech Park, and Saigon High-Tech Park (SHTP) have signed an agreement committing to transparency and the improvement of the local investment environment to increase their attractiveness. Accordingly, the parties agreed to continue sharing experience in collective action to strengthen integrity in business, improve the investment environment by promoting openness and transparency, while discussing the method and roadmap to replicate the models at Hoa Lac and Danang HTP. Pham Dai Duong, Deputy Minister of Science and Technology cum head of the management board of Hoa Lac High-Tech Park (HHTP), said at a recent seminar that, Transparency and integrity are the key elements to creating a healthy business climate which helps attract more investment and ensure healthy competition for businesses to thrive. Vietnam is now home to three national high-tech parks. To date, SHTP has signed several agreements with businesses on collective action to strengthen business integrity. In particular, in 2007, SHTP signed with the USs Intel Products Vietnam. The move was applauded by business community. Le Bich Loan, deputy chairwoman of the SHTP Management Board, said that one of the factors that contributed to the parks achievements is collective action to strengthen integrity in business, which is an urgent need among investors. We have so far attracted 101 projects worth over 5.6 billion in total registered investment capital. The parks land area is mostly filled, she added. Hoa Lac and Danang high-tech parks are also following the SHTP model. At the seminar, HHTP and VNPT Technology Company signed a commitment to transparency and integrity in business, making it the first of its kind at Hoa Lac. Pham Anh Duong, deputy director of Towards Transparency Organisation, said that, Through collective action initiatives like the one run by SHTP, businesses can proactively connect to each other, cooperate with state agencies and civil society organisations to turn transparency and integrity commitments into particular action and anti-corruption solutions. Cooperation is a sustainable approach for the Vietnamese business sector to develop towards full transparency and integrity. However, local businesses find it a rocky path to do business with integrity. Although Vietnam has developed a comparatively comprehensive legal framework on transparency and anti-corruption, the enforcement of various laws have been revealed to be weak, and the business community have not been really convinced to participate in anti-corruption initiatives and operate with integrity. The individual efforts of businessess to build up a corruption-free business culture more often than not stalls on a chronic lack of consensus, encouragement, and support from relevant stakeholders, admitted the deputy minister. CEOs discuss ways to promote joint forces of local firms How to join forces of Vietnamese enterprises to help them better capitalize on business opportunities was one of the key topics discussed at the Vietnam CEO Forum 2016 held in HCMC last week. Mai Huu Tin, chairman and CEO of UampI Investment Corporation, believed local entrepreneurs could join forces successfully. However, in addition to the efforts of businesses, the support of government agencies is necessary. The relationship between the State and businesses is symbiotic, said the UampI leader. While the Government encourages enterprises to foster links for stronger competitiveness, enterprises want the Government to be competitive as well, so they can walk together on the countrys international integration path. Once businesses and the Government are firmly linked and highly competitive, we will lose to no one. Then, there will be no need to call for startups, and the operational businesses will be more assertive. Tran Le Nguyen, CEO of Kido, said his group had recorded hefty growth and gradually consolidated its position in the food industry thanks to connectivity with business partners. However, small - and medium-sized enterprises have neither known how to join hands to improve competitiveness and drive growth, nor had opportunities to team up with one another. Nguyen Hoai Nam from Berjaya Vietnam said there are few Vietnamese firms at the Saigon Hi-Tech Park in HCMC District 9. HCMC chairman Nguyen Thanh Phong said that for sustainable development, enterprises must acknowledge three pillars: national pride, business ethics and the rule of law. Talking about the management role of State agencies, Phong said they must accompany businesses and consider them an object to serve. National Assembly deputy Truong Trong Nghia, who is consultant of the Research Department of the Prime Minister, said the role of the Government was to cut off privileges and unfair distribution of power. Regarding the objective of 500,000 enterprises in HCMC by 2020, Do Ha Nam, chairman and general director of Intimex Group, said this might not be realized. He raised concern after HCMC Party chief Dinh La Thang said that for the goal of having a million enterprises nationwide by 2020, HCMC would account for half. Thang raised a question at the Vietnam CEO Forum 2016 as to which conditions the city needs to accomplish this. Nam said problems for enterprises came from tax authorities. The biggest problem is that many businesses are wrongly listed as tax evaders, he said. Tax evasion does exist but it is not so difficult to deal with it. The taxman deems it very hard to detect tax evaders. Only when this problem is solved will businesses be able to survive. Some enterprises have been accused of tax debts in 10 years. The money they have made in the period is nothing compared to such tax debts, Nam said. Vietnams PMI hits 16-month high The Vietnamese manufacturing sector saw improved growth at the end of the third quarter that was reflected by the Nikkei Manufacturing Purchasing Managers Index (PMI) rise to 52.9 in September from 52.2 in the previous month, the most marked since May 2015. The rate of growth in manufacturing output solidly picked up to a three-month high in September. Higher production reflected a further rise in new orders, according to a report released by Nikkei on October 3. Andrew Harker at IHS Markit, which compiles the survey, said the standout number from the latest Vietnam PMI survey was the fastest rise in employment for five and-a-half years as firms responded to sustained new order growth. Higher inventory levels were also reported, and a number of respondents ascribed this to efforts to build reserves. This all suggests a level of confidence among manufacturers that output will continue to rise in the near term at least. With growth solid across the third quarter as a whole, the manufacturing sector looks set to help drive gross domestic product (GDP) growth in 2016. IHS Markit currently forecasts a rise in GDP of 5.9 in 2016, Harker said in the report. New business increased for the tenth successive month, with the rate of expansion quicker than that seen in August. Meanwhile, new export orders also rose. Growth of new work encouraged firms to take on extra staff in September. The rate of input cost inflation ticked up fractionally in September and was broadly in line with the series average. Panelists mentioned higher prices in global markets and shortages of the supply of raw materials. Output prices went up for the first time in four months as manufacturers attempted to pass higher input costs on to clients. However, the rate of inflation was only slight. Besides, supply shortages were also mentioned by respondents that saw a lengthening of suppliers delivery times in September. This was outweighed by competition among vendors, resulting in a first improvement in supplier performance since April. Vietnamese manufacturers purchasing activity increased at a sharp pace that was the fastest since May 2015. Firms credited the rise to higher new orders and efforts to build inventory reserves. Stocks of both purchases and finished goods rose in September. Pre-production inventories posted a further solid increase following the previous months joint-survey record, while stocks of finished goods were accumulated for the first time in ten months. Hanoi declares tax debt firms, Vietnam needs to build food brands: experts, German investors shift attention to Vietnam, 2016 wages of apparel laborers up 12, Firms, banks to ink contracts worth VND90 trillion
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