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BUSINESS IN BRIEF 12/8
Amata
calls for hi-tech incentives
Thai
property developer Amata Corporation is asking for special incentives from
the Vietnamese government for its proposed $2 billion hi-tech park and urban
township in the
A
source at Quang Ninh Provincial Investment Promotion Agency said Amata and
its Vietnamese partner, Tuan Chau Au Lac Limited, are looking to the prime
minister for approval of the incentives. However, he declined to give further
details as they were still in discussions, adding that the incentives would
make the mega-project more feasible, and the investors were ready to start
the project in October once the prime minister approved the proposal.
“At
present the incentive proposal is still in the early stages of
consideration,” he said.
Last
month, Quang Ninh Provincial People’s Committee allowed Amata to conduct a
feasibility study of the proposed 1,000 hectare site in Quang Yen district.
According
to Amata’s proposal, the hi-tech park and urban township comprises a green
industrial park, residential suburb, sports facilities, convention centre,
schools, a university and entertainment facilities.
Having
entered
The
Thai developer last year announced it would develop the giant
The
project in Quang Ninh is the largest one Amata has planned in
In the
recent years, Quang Ninh has emerged as an attractive destination for foreign
investors and in 2012 alone foreign investors committed approximately $396
million to the province, 15 times than that of 2011, raising the total
foreign investment capital planned to $4.15 billion.
Apart
from Amata, Rent-A-Port, a Belgian company, is also doing a feasibility study
for a port and industrial park in the province.
Land
allocated for key fruit plantations
The
southern region will reserve more than half its fruit growing area to develop
cultivation of 12 key fruits in the coming years.
Under
a plan approved by the Ministry of Agriculture and Rural Development, the 12
fruits will be planted on a total area of 257,000ha, or 52 per cent of the
region's total orchards, by 2020.
The
Cuu Long (
Of the
12 key fruits, mango will have the largest area (45,900ha), followed by
longan (29,800ha), banana (28.900ha), grapefruit (27,900ha), orange
(26,250ha), dragon fruit (24,800ha), pineapple (21,000ha), rambutan
(18,300ha), durian (15,000ha), soursop (8,300ha), mandarin (5,850ha) and star
apple (5,000ha).
The
Mekong Delta
It
will also have the highest number of key fruits – 11 of the 12 identified,
soursop being the sole exception.
The
plan also envisages that by 2020, all the fruits grown in the concentrated
fruit-growing areas will meet food safety and hygiene standards.
More
than 50 per cent of the key fruits will be planted under international and
national GAP (good agriculture practises) standards.
The
plan aims to increase varieties of the 12 key fruits and their output. It
also seeks to raise the export value of the key fruits by 70 per cent over
the next seven years.
It
estimates that revenues from the concentrated fruit-growing zones will top
VND150 million (US$7,100) per hectare a year by 2020.
To
meet the targets, priority will be given to creating high quality strains of
the key fruits, farmers will be taught advanced planting techniques and
several exports promotion measures carried out.
Farmers
will also be advised to participate in fruit cultivation co-operatives, and
co-operation between enterprises and farmers at all stages, from cultivation
to sales, will be strengthened.
To
ensure steady supply and stable prices, the ministry is considering
out-of-season cultivation of five key fruits – dragon fruit, mango, rambutan,
durian and longan – in the southern region.
Many
farmers in the southern region have applied techniques for fruits grown out
of season in recent years, supplying many kinds of fruits all year round for
domestic and export markets.
The
southern region has about 415,800ha of orchards at present with an annual
output of around 4.3 million tonnes of fruit.
This
accounts for 53.2 per cent of the country's total fruit growing area and 57
per cent of the country's total output, according to the ministry's Plant
Cultivation Department.
Poor
global demand hits major export staples
The
export turnover of agro-forestry and aquaculture products is expected to
reach US$15.59 billion for the first seven months of this year, down 1.6 per
cent year-on-year, according to the Ministry of Agriculture and Rural
Development (MARD).
The
decrease is largely attributed to the year-long downward trend in global
demand and falling prices for farm produce exports, said Nguyen Viet Chien,
director of MARD's Informatics and Statistics Centre.
Major
agricultural exports during the period are estimated to earn $7.84 billion,
down by 11.9 per cent year-on-year while aquaculture products brought home
$3.41 billion (up 0.7 per cent). Earnings from forestry products topped $3
billion, registering a year-on-year rise of 12.2 per cent.
Major
export staples such as rice, rubber, coffee and tea saw decreases in price.
Rice suffered the lowest price reduction to $443 million per tonne, a 6.7 per
cent year-on-year decrease.
During
the first seven months of the year, the country exported 4.22 million tonnes
of rice bringing home $1.88 billion in earnings, a fall of 11.3 per cent in
volume and 13 per cent in value over last year.
Rubber
exports also saw a substantial decrease in export price, with prices falling
by an average of $2,540 per tonne, or a year-on-year decline of 15.9 per
cent.
It is
estimated that about 498,000 tonnes of rubber was exported during the first
seven months, bringing a total export value of $1.21 billion.
Coffee
and tea saw slight increases in export prices. However, export volume for
coffee was estimated to have fallen to 890,000 tonnes, down by 23.7 per cent,
and posting a total export turnover of $1.91 billion.
Tea
exports were estimated to reach 77,000 tonnes with an export turnover of $120
million. Tea exports to
Cashews
and pepper registered a rise in volume. Cashew exporters earned $759 million
from exporting 136,000 tonnes or a year-on-year increase of 5.9 per cent in
value.
Pepper
exports went up 22.8 per cent in volume to 94,000 tonnes while export value
reached nearly $618 million with a year-on-year climb of 17.7 per cent. The
During
the first seven months, exports of wood and wooden products topped $2.9
billion, or an increase of 12.3 per cent over the same period last year.
The
Ministry of Agriculture and Rural Development has instructed agencies to
continue raising the quality of export items and ensure requirements on food
safety and hygiene are met.
Apart
from traditional markets, exporters needed to enhance trade promotion and
expand export markets while connecting with businesses and associations to
propose policies to boost exports and tap potential markets during the
remaining months of the year.
The
HCM City Department of Transport is making efforts to speed up site clearance
on a main section of a new expressway being built from Tan Son Nhat airport
to Thu Duc District. It aims to have the section open to traffic on National
Day (Sept. 2).
The
South Korea-based GS Group is the sole investor in the Tan Son Nhat – Binh
Loi – Outer Ring Road project.
The
city has urged contractors and investors to work closely with officials in
Tan Binh, Go Vap and Thu Duc districts so the road's main section can be
completed in time for the holiday.
The
road's main section extends from
According
to the GS Group, more than 70 per cent of the road has been completed, and
construction on Rach Lang, Binh Loi and Go Dua bridges as well as four
pedestrian bridges is nearly finished.
Many
other sections also await site clearance. About 115 households in Tan Binh,
Go Vap and Thu Duc districts need to be moved, according to the GS Group.
The
13.7-km expressway starts from the Truong Son intersection in Tan Binh
District near the airport, passes the Nguyen Thai Son intersection in Go Vap
District, crosses Sai Gon River via the Binh Loi Bridge, runs through the
Binh Trieu intersection and Linh Xuan crossroads in Thu Duc District, and
then connects with National Highway 1.
The
expressway, which has six lanes in some parts and 12 lanes in other sections,
is 30 to 60 metres wide, depending on the section.
The
road has four main intersections and is covered by four bridges. The
expressway, when completed, is expected to help reduce traffic congestion
from the city centre to the city's eastern area.
The
Central city of
Huynh
Van Thang, deputy head of the committee, said the main shelter area Au Thuyen
Tho Quang had capacity for only 1,100 of its 1,700 boats.
He
asked
Phung
Tan Viet, deputy chairman of the city's People's Committee entrusted the
Department of Construction and other authorities to decide on more effective
plans to protect boats and fishermen from storms.
In the
mountainous district of Hoa Vang, authorities have also been asked to take
preventive measures against storms, floods and landslides.
They
were also told to provide plans to shift residents in low-lying areas near
the Dong Nghe and Hoa Trung reservoirs.
According
to the Hydro-meteorological Centre of central region,
Shrimp
firms cash in on higher demand and price
Shrimp
exports in the first half of this year amounted to US$1.1 billion, a rise of
8.6 per cent over the same period last year, according to the Viet Nam
Association of Seafood Exporters and Producers (VASEP).
The
major import markets including
Domestic
shrimp production has also recovered from the damage caused by the outbreak
of diseases in 2012, which are presently being eradicated, according to the
association.
While
Early Mortality Syndrome (EMS) still badly affects many other Asian countries
such as
Exports
to
The
export price for some varieties of shrimp destined for the Japanese market
has also jumped by 35 per cent due to demand outstripping supplies of the
crustacean.
Shrimp
exports to the
However,
difficulties remain for shrimp exports to some markets such as
Industry
insiders have urged Vietnamese businesses to try and expand their current
markets in North America, the Middle East and
Experts
also predict that
In the
first five months of this year, shrimp exports to
Truong
Dinh Hoe, chairman of Vasep, has forecast that shrimp exports will hit $2.4
billion for the full year, 6.5 per cent higher than last year.
He
urged exporters to work closely with farmers to ensure supplies of high
quality shrimp, which will help to overcome technical barriers set by
overseas import markets.
Dark
days for handicraft sector
Handicraft
enterprises have faced a host of challenges in production and the problematic
business climate this year, making it difficult for them to reach their
export targets, say industry insiders.
The
Viet Nam Handicrafts Association (Vietcraft) says that almost every
enterprise in the handicrafts industry is either a small or medium sized
operation. Subsequently, they have suffered a lot from recent changes in the
market and macro-economy, that have seen many of them fall into crisis.
Meanwhile,
high input costs, high interest rates on loans and difficulties in accessing
banking loans have had a detrimental effect on their production and
commercial activities.
According
to Vietcraft's statistics, 30 per cent of the industry's enterprises recorded
losses in production in the last two years, so they had to cut production
back or even stop production temporarily.
Dang
Quoc Hung, deputy chairman of the HCM City Handicrafts Association, said the
handicraft industry faced high production costs and serious pressure from
importers to reduce export prices.
Almost
every enterprise has received reduced orders and only a few larger
enterprises will get large export orders by the end of the year, said Hung.
In
addition, importers also asked enterprises for price cuts of 20 per cent due
to their economic difficulties, when in fact they only make a profit of 10
per cent in the first place.
The
General Department of Customs reports that from earlier this year to
mid-July, the industry only made US$352.6 million from exports, so it does
not expect to achieve its export target of $1.5 billion for this year.
The
major export markets for traditional Vietnamese handicrafts include the
Vietcraft
says that importers have increased their orders for Vietnamese handicrafts
due to their good design, quality and competitive prices, but the global
economic downturn has affected the industry's export value.
Bad
employment and payment policy blamed for slack officials
The
current payroll policies for state officials are outdated and do not
encourage employee engagement and development of skills, one expert has said.
Dr. Do
Ngoc Quang, a lawyer, made the statement during a recent interview with the
Vietnam Television.
His
comments came after Deputy Prime Minister Nguyen Xuan Phuc’s recent
announcement that around 30% of state officials do not work during the
working hours.
“When
I was deputy director of the People's
He
attributed the situation to the lack of a criteria-based system of job
requirements for state officials. Under the current payment policies for
state officials, new-comers often get much lower pay than those who have
longer tenure, even though the newer employees often do the same or even more
complicated jobs and are more efficient.
“Due
to the lack of a clear criteria system, there are often more employees than
needed, which leads to employees not taking responsibility and being slack in
their duties. Many state officers don’t try to improve themselves or work
more efficiently, so it’s easy to understand why up to 30% of state officials
failed to pass a recent exam by the Ministry of Home Affairs for promotions,”
he commented.
He
said that payment for state officials should be decided on a merit-based
system and the complexity of the job, and that salaries should be enough to
cover living costs.
Redundancy
in the workforce has resulted in a reliance on others to complete tasks while
low payment for those who have lower seniority forces those employees toward
corruption to earn a decent living, he added.
“It’s
really necessary that the government restructure the payment system so it is
based on tasks performed. The current policies discourage new-comers from
improving themselves or devoting themselves to the job. Due attention should
also be paid to the supervision process to review the efficiency of state
employees and make timely adjustments,” he recommended.
In
addition, to date leaders have yet to make estimates of their human resource
needs, so they tend to recruit more people than they actually need. Some even
take bribes in exchange for granting employment to unqualified people.
Many
associations of wood processing machine suppliers worldwide are expected to
take part in the 10th Vietnam International Woodworking Industry Fair
(Vietnamwood 2013), according to the organizing committee.
Speaking
in HCMC on Tuesday, David Yang, director of Chan Chao International Company,
a representative of the organizing committee, said that many international
associations such as European Federation of Woodworking Machinery
Manufacturers (Eumabois), German Engineering Association, Italian Woodworking
Machinery and Tool Manufacturers’ Association, Taiwan Woodworking Machinery
Association and American Hardwood Export Council will join the event.
Compared
to previous years, enterprises joining this year’s fair will display the
latest technologies that help save energy and materials, he added.
Dang
Quoc Hung, deputy chairman of the Handicraft and Wood Industry Association of
HCMC (Hawa), said that the nation’s wood processing and export industry has
seen strong growth. The industry generated an export value of nearly US$2.5
billion in the first half of the year, up 18% against 2012.
The
sector has made a positive development over the past 10 years and the demand
for machine and production line upgrading has soared, creating conditions for
machine production and imports to grow.
Vietnamwood
2013 will take place from September 25-28 at the Saigon Exhibition &
Convention Center in HCMC’s District 7. There will be over 500 booths of 260
exhibitors from 19 nations.
The
event is co-organized by Vietnam National Trade Fair & Advertising
Company, Chan Chao International and some associations such as Hawa, the
Forest Products Association of Binh Dinh and Eumabois.
Displaced
IZ firms promised adequate compensation
Companies
operating in Dong Nai-based Bien Hoa 1 Industrial Zone (IZ) are promised
adequate compensation for forced relocation from the IZ, which will be turned
into an urban, service and commercial area.
Corporation
for the Development of Bien Hoa Industrial Zone (Sonadezi) is assigned by the
provincial government to make a plan for relocation of the firms in Bien Hoa
1 IZ.
Speaking
at a press conference held in Dong Nai this Tuesday, Tran Thanh Hai, deputy
general director of Sonadezi, said the corporation was drawing up the plan
with adequate compensation and sufficient time for companies in the IZ to
move away.
Businesses
are allowed to stay if they are financially capable enough to adjust
themselves to meet the new functions of the zone. If not, they will receive
compensation or support in development of production facilities in new
locations.
Another
option is those unable to adapt to the new zone will be given priority to
become shareholders of a company to be set up to manage the urban, service
and commercial area. Their stakes will be proportional to the areas they are
currently occupying in the IZ to ensure fairness.
If
they refuse to become shareholders of the aforesaid company, owner of this
company will look for strategic partners to replace them.
With
the above options, Hai said the firms subject to relocation would not suffer
from disadvantages if land in Bien Hoa 1 IZ became expensive after its
transformation.
In
addition, the government of Dong Nai has issued policies on labor support so
that the displaced companies can stabilize production in new locations. The
province promises to offer the displaced firms the biggest incentives.
Bien
Hoa 1 IZ is one of the biggest sources of pollution in the
The
Dong Nai government has encountered many difficulties in its plan for
converting the functions of Bien Hoa 1 IZ, especially in relocation of 104 companies,
including 97 active ones with 26,100 employees. The cost of this conversion
is nearly VND15 trillion.
Companies
in Bien Hoa 1 IZ will be relocated to industrial parks like Giang Dien, Nhon
Trach and Ong Keo, according to Sonadezi. However, so far, no company has
moved away.
Many
businesses say they feel uneasy about moving to Giang Dien IP or other
industrial parks, which are 20-60 kilometers from their current production
base, pushing up costs in the context of financial distress.
Moreover,
they are concerned their workers will be struggling when their plants have to
halt operations for relocation. During this process, they will have no
products to supply to customers and thus will easily lose their market.
Road
to airport to open to traffic in Sept.
The
HCMC Department of Transport has been asked to work with Tan Binh, Go Vap and
Thu Duc districts to soon finish site clearance so that the road from
The
eastbound road from the airport is being developed by South Korean GS Group.
The city government urged the project investor and other sub-contractors to
finish the road’s key section from
According
to the investor, the road has now been over 72% completed. Rach Lang, Binh
Loi, and Go Dua bridges as well as four pedestrian bridges on the road have
also been virtually finished.
However,
some sections on the road have not been constructed due to slow site
clearance. Currently, around 115 households in Tan Binh, Go Vap and Thu Duc
districts remain to be relocated.
Tan
Son Nhat-Binh Loi-outer ring road is an expressway of the city’s belt road
system. Having a total length of 13.7 kilometers, the road starts from Truong
Son intersection in Tan Binh, links to Nguyen Thai Son intersection in Go
Vap, crosses the
The
road with 6-12 traffic lanes will help reduce a large volume of vehicles
running from the city’s center to the eastern area.
Voluntary
pension insurance put on the right track
Legal
framework unveiled for voluntary pension insurance to be introduced in
"The
Ministry of Finance (MoF) is now working on the long-awaited circular guiding
the establishment of voluntary pension funds and the implementation of
pension insurance for release this month," said a circular drafter who
is also the representative for the MoF's Insurance Supervisory Authority.
Pension
insurance is a voluntary form of savings to fund retirement, usually
supported by employers and encouraged by the government through tax benefits.
It benefits people by providing financial independence and security during
old age, aids the government by channeling individual savings to national
development, and helps employers by providing an efficient means of rewarding
their employees.
Under
the circular draft, to be allowed to supply pension insurance products,
insurance firms must meet the hold charter capital of more than VND1 trillion
($48 million), have a liquidity ratio higher than VND300 billion ($14.4
million), and are obligated to establish a voluntary pension fund not lower
than VND200 billion ($9.6 million).
Currently,
some insurance firms which have qualified to implement pension insurance such
as Dai-ichi, Bao Viet, Prudential, AIA, Manulife and PVI Sun Life are
awaiting the circular’s imminent release.
Some
of these firms such as Dai-ichi and Bao Viet have established voluntary
pension insurance products which will be submitted to the MoF for approval
after the circular comes into force.
Meanwhile,
in late June, the MoF also released Decree 65/2013/ND-CP guiding the
implementation of the Personal Income Tax (PIT) Law which took effect from
July 1, 2013 which stipulated conditions for insurers to implement pension
insurance products.
Firstly,
Article 3 of the decree regulates that accumulated premiums from life
insurance and other non-compulsory insurances in the voluntary retirement
fund, which are bought or paid for by the employers, is included in taxable
incomes of individuals.
Before
paying the insurance amount, individuals, insurers and companies managing the
voluntary retirement fund are responsible for withholding tax at the rate of
10 per cent for accumulated premiums from July 01, 2013.
Secondly,
the decree states that the maximum premium level of the voluntary retirement
fund that is deducted from taxed incomes specified in this clause does not
exceed VND1 million per month in accordance with the MoF guide.
In
cases where individuals who reside in Vietnam but work abroad and having
incomes from businesses, wages or salaries abroad have participated in buying
compulsory insurance in those countries, the individuals are entitled to
deduct these premiums from their taxable income. These types of taxes
incurred while working abroad incude social insurance, health insurance, unemployment
insurance and professional liability insurance.
Thirdly,
the revised law raised the threshold of personal income tax from the current
VND4 million ($190) to VND9 million ($428) per month and raised the deduction
for families from the current VND1.6 million ($76) to VND3.6 million ($171)
per dependant per month.
"Reasonable
tax rates and deductions will help taxpayers to reduce their tax burden to
join in pension insurance," said a representative of a foreign insurance
firm which is in the process of preparing to implement pension insurance.
Viettel
Post earns big profit
State-owned
Viettel Post Joint Stock Corporation has reaped a big crop in this year’s
first half.
The
corporation (Viettel Post) last week reported that during this year’s first
six months, its revenue totaled $23.7 million, up 26 per cent on-year,
including over $638,000 in profit. It also contributed $1.43 million to the
state budget.
“With
such big revenue, we have already accomplished 49 per cent of the year’s
business plan. This has been the biggest level we have achieved from the past
till now,” said the corporation’s general director Luong Ngoc Hai.
“It is
expected that we will be able to join
The
six-month achievements have reflected the corporation’s sound and sturdy
business strategy, in which on some new services have been focused on.
For
instance, Viettel Post began in May 2013 cooperation with state-run Military
Insurance Company (MIC). Under which MIC would use Viettel Post’s express delivery
and office stationery services, and promote its brand name on Viettel Post’s
envelopes. MIC would also introduce Viettel Post’s posting services to its
customers and partners.
Meanwhile
Viettel Post will directly distribute MIC’s insurance products to customers
wanting to join these products via its transaction offices nationwide. In
addition, MIC will insure Viettel Post’s all assets and responsibilities with
competitive costs and best insurance conditions.
“Viettel
Post has earned a monthly revenue of VND250 million from this cooperation,”
Hai said.
The
corporation has also implemented EMS in southern
The
corporation has also fetched big business windfalls from overseas markets.
For example, Viettel
Hai
said Viettel Post also targeted to grow 15-20 per cent in revenue, profit and
staff for this year’s second half.
At its
recent annual shareholders’ meeting 2013, Viettel Post adopted its business
plan for 2013, with the total asset of VND246 billion ($11.82 million), up 26
per cent on-year.
Viettelpost’s
revenue for this year will be $48.8 million, up 15 per cent on-year.
After-tax profit will total $1 million, up 13 per cent on-year and the
workforce will rise 7 per cent, and dividend rate will be 12 – 15 per cent.
Half
of Vietnamese banks see lower profit in first half of 2013
A
survey by the State Bank of Vietnam (SBV) showed that nearly 50% of
Vietnamese banks made lower pre-tax profit between January and June this year
against the second half of 2012.
The
biggest profit fall ranged from 20% to 30%, according to the survey on banks’
business trends conducted by the SBV’s Monetary Statistics and Forecast
Department.
Only
30.4% of banks said that their business activities improved during the
period, meanwhile 21.5% disclosed that they got worse business results.
The
survey also indicated that the business environment from now to the end of
the year (2013), still poses many risks, therefore, bad debts have remained
the greatest challenge to customers.
Most
banks said the risk-level of customer groups increased between January and
June this year, thus, more than 50% of them forecast that their bad debt rate
can only stay the same or rise by late 2013, compared to the end of 2012.
However,
71.4% of surveyed banks expect higher profits-- somewhere just below 10%-- in
the second half of this year. Banks also think that interest rates,
particularly lending interest rates, would probably continue falling in the
next three to six months inclusive.
Up to
89.8% of banks interviewed said their outstanding loans would increase in
number by late 2013 compared to the number at the end of last year.
Authentic
noodle makers incur business slump due to safety concerns
Many
noodle makers in northern
Recently
environmental crime prevention police in the southern
Such
substances include Tinopal, an optical brightener for papermaking, detergents
and cleaners like Oxalic acid that is used for cleaning or bleaching,
especially for the removal of rust.
The
incidents have stirred up public concerns over noodle food safety and
hygiene. Having no other choice, many are compelled to opt not to consume
such a popular food, causing a considerable fall in noodle sales recently.
Even
though the incidents were reported in the south, many traditional villages in
the north that make noodles are seriously affected, incurring a major slump
in business, although there is no proof of bleaching in these villages.
Khac
Niem Commune in
Nguyen
Thi Hoan, a local resident, has reported a considerable decrease in noodle
sales recently. Sales fell to less than one ton per day compared to the
previous amount of around 1.5 million tonnes daily.
“My
whole family and several workers have been making a living from noodle
production for years. The recent reports about substandard noodles in the
south have seriously affected our business even though we still strictly
comply with food safety and hygiene regulations. Our revenues have been
reduced by around VND3 million (USD141.60) per day,” Hoan said.
Vu Thi
Lan, another local woman, complained that several restaurants have continued
to return noodles as most of their customers have opted not to eat noodles
for health concerns after the incidents.
“Our
noodles sales have critically decreased to little more than 300 kilos per
days. Noodles orders and delivery are rather quiet,” she said.
Duong
Minh Du, head of Tien Ngoai Hamlet in Khac Niem Commune said, “We’ve worked
in noodle production for years and don’t use any toxic substances. It’s
unfair for us to be victims of others’ misconduct.”
Several
communal authorities said local noodles sales have decreased by nearly 30%,
causing losses of hundreds of millions VND per day to producers.
In
order to help improve the situation, local authorities have been making
efforts to intensify propaganda to improve people’s awareness of the issue,
he noted.
“Noodle
producers in Khac Niem Communes have strictly complied with food safety and
hygiene standards. Consumers should feel safe when using their products,” he
added.
Luxury
As
foreign owned high-end hotels in
According
to Phan Xuan Can, chairman of SohoVietnam, a merger and acquisitions
consulting firm, many domestic investors are actively finding opportunities
to either partly or fully take over
Can
said he had advised a new investor to obtain a site in the heart of
According
to Can, many other investors were coming to him for advice on hotel
development projects. “However, operating a hotel is a long term capital
investment, so investors must be very consistent and have long investment
vision,” Can countered.
In
order to be successful in the hotel business, the top condition for any
investor is location. “The location must be in a central street and have
convenient transportation links,” said
An
outstanding case is Metropole Sofitel, one of the city’s oldest and most
prestigious hotels. The hotel was built in 1901 by two French companies and
was the first ever five-star hotel in
Opened
in 1996, Daewoo Hanoi was one of the first luxury hotels in
The
trend to domestic ownership in the five-star hotel market continued with the
case of Hilton Hanoi Opera. In operation since 1999, Hilton Hanoi Opera was
originally a joint German-Austrian project. In 2006 VinaCapital bought 70 per
cent of the company as part of a joint venture with domestic Thang Long
Corporation. Three years later, VinaCapital announced that it sold its entire
stake to BRG – a strong domestic financial group.
Meanwhile,
notable exceptions to the trend are
Melia
was initially built in 1994, by Thai Group SAS Trading in a joint venture
with Hanoi Electromechanical Manufacturing JSC, and is today owned by
renowned Thai billionaire Charoen Sirivadhanabhakdi.
Similarly,
Mega-resort
deal downsized
Investment
management and real estate development firm VinaCapital is seeking approval
for changes to the development plan of its $4 billion integrated resort in an
effort to help the firm find a new partner to replace Malaysian casino
operator Genting that pulled out in 2012.
An
anonymous source of the central
“VinaCapital
thought that the change of the project’s development plan will be supportive
in finding new partners to replace Genting,” said the source, adding that the
investor was intent on finding a major partner within the third quarter of
this year.
Nguyen
Duc Huong, director of public relation at VinaCapital, did not respond when
VIR’s reporter contacted her last week.
VinaCapital
and Genting Malaysia Berhad (GENM), a subsidiary of Genting Group, gained an
investment certificate to develop the $4 billion integrated resort in Quang
According
to Quang Nam Provincial People’s Committee, the project consists of five-star
hotels, resorts, villas and a gaming facility for foreigners.
VinaCapital
was founded in 2003 and is now managing $1.5 billion of assets in
VinaCapital
and Genting previously planned to start the construction of the project last
year after completing site clearance work. However, the construction has not
begun yet, as Genting suddenly announcing their withdrawal from the project
in September 2012, forcing VinaCapital to find other partners.
“Actually,
VinaCapital introduced the local authorities to some foreign companies to
replace Genting. But none of them has seriously discussed about investing in
the project,” said the source.
He
said VinaCapital was still committed to pursuing the project and had made
plans to open the first phase of the project in the fourth quarter of 2015.
The
first phase covers an area of 23ha and will comprise 500 hotel-rooms, 90
gambling tables and other tourism facilities. This is said to be similar to
the first phase of Ho Tram Strip project opened last month by
Licenced
gaming tightened
After
nearly a year in the works, the Vietnamese government has just issued a new
decree regulating the operations of electronic gaming service providers
thereby creating a comprehensive regulatory framework for the industry in
The
governmental Decree 86/2013/ND-CP, dated July 29, stipulated that all 5-star
or equivalent hotels and resorts were free to open electronic gaming services
as long as they are in a separate facility and satisfy security requirements.
This also means hospitality businesses with less than five stars would no
longer be allowed to operate such services.
The
new decree replaced Decision 32/2003/QD-TTg, issued almost a decade ago,
which was the only legal framework regulating electronic gaming service
providers. According to the Ministry of Finance (MoF), the new guidelines
were much needed as the old policy was archaic and a decision was not
comprehensive enough to manage such a complex business.
The
new decree however does not include the operations of casinos, only
electronic gaming machines.
Decree
86 is unchanged regarding the prohibition of Vietnamese from entering gaming
facilities, but it is a significant step forward in the development of the
gaming industry.
“We
are very pleased with the new decree, as it shows the Vietnamese government
is taking the gaming business seriously and protecting both people and
businesses with an appropriate legal framework. From what we understand, the
government intended to start with electronic games and will subsequently
develop a structure for the casino business as a whole,” said Colin Pine,
general director of Ho Tram Project Company, a subsidiary of Canada’s Asia
Coast Development Limited, the owner of the $4 billion Ho Tram Strip
integrated resort casino in the southern province of Ba Ria-Vung Tau.
Pine
believed that to build a successful, safe, and organised gaming industry, it
is important to have an adequate legal framework that applies to all
enterprises operating in the industry.
“Decree
86 is a strong first step towards
The
Vietnamese government’s decision to narrow down businesses eligible for
electronic gaming to 5-star and ‘high-grade’ hotels means there would be
fewer businesses of this type in urban areas.
“This
strategy will create more interest in tourist destinations outside of the
major urban centres, which will help diversify tourism and promote economic
development outside major cities. Also, this will help focus gaming tourism
to specific areas with large-scale casinos that can be more carefully and
effectively monitored and managed,” Pine explained.
Electronic
gaming services were first allowed in
The
MoF reported that the total revenue from electronic gaming services reached
around $72 million per year, with the industry contributing $11.5 million per
year to the state budget.
VSIP
offers international standard development
Launched
in 1996, the Vietnam Singapore Industrial Park (VSIP) is part of an economic
cooperation between the governments of
VSIP
has developed 5 projects in Vietnam including VSIP I, VSIP II Binh Duong,
VSIP Bac Ninh, VSIP Hai Phong and the latest VSIP Quang Ngai.
Up to
240 investors from 27 countries around the world have chosen to base their
long-term investment projects in VSIP I of 500 hectares, VSIP has grown from
strength to strength. VSIP II, officially launched in 2006 with the area of
345 hectares, was fully occupied within two years after its launch with 130
tenants. In 2008, the VSIP II was expanded comprising of 1,000 hectares of industrial
zone and 700 hectares of township.
The
VSIP Binh Duong is well-placed to participate in the exciting emergence of
Binh Duong New City. Since 2007, VSIP has announced its expansion to the
north with two projects:
In
2011, VSIP announced its expansion to the central
industrial
park include food and beverages, fast-moving consumer goods (FMCG),
electronics assembly and other light industries catering to the oil, gas and
chemical sectors.
With
the latest project in Quang Ngai province, VSIP has established a total of
five industrial parks and township complexes in
Bayer
provides innovative solutions
The
one-day high-profile event held on August 1, on which Bayer Group also
celebrated its 150th anniversary, attracted more than 200 healthcare
professionals who are cardiologists and neurologists working in hospitals of
Ho Chi Minh City and neighbouring provinces.
The
symposium focused on the risk of stroke in patients with non-valvular atrial
fibrillation, the causes of the disease, its burden on society, and, most
importantly, preventative treatments available around the world. The
discussion highlighted the importance of preventing strokes in patients with
non-valvular atrial fibrillation.
Atrial
fibrillation is the most common sustained cardiac rhythm disorder. Major
cardiovascular organisations in the world such as
In
“Bayer
is working closely with health care practitioners to introduce innovative
drugs that will further improve the health of the nation. Strokes can be
devastating to both patient and caregiver, and prevention should be a key
priority,” said Manoj Saxena, country head of Bayer Health Care
Pharmaceuticals in
Source:
VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
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Chủ Nhật, 11 tháng 8, 2013
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