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BUSINESS IN BRIEF 31/8
HDBank
acquires Société Générale VietFinance
The
State Bank of Vietnam (SBV) has issued a document permitting the HCM City
Development Joint Stock Commercial Bank (HDBank) to acquire the 100 percent
equity of Société Générale VietFinance (SGVF), one of the largest
foreign-owned finance companies in
Accordingly,
SGVF will become a subsidiary of HDBank. This is the first transaction of its
kind which will open up the possibility for other institutions in
Le
Thanh Trung, deputy general director of HDBank, said that with its stable
growth, the bank will provide customers with modern, safe and convenient
financial products and services.
He
added that the bank maintains the whole system of human resources, customers
and business partners.
SGVF
is a wholly foreign-invested company that was licensed by the State Bank of
Over
900 businesses have registered to participate in the annual sales promotion
month in
The
programme, jointly organised by the city’s Departments of Industry and Trade
and Culture, Tourism and Sports, kicks off with a fair at the Phu Tho Indoor
Stadium in District 11 selling garments, foodstuff, household appliances and
consumer goods.
There
will be 12 other fairs during the month to take goods to the doorsteps of
workers in industrial parks and export processing zones and students living
in dorms.
Businesses
like supermarket chain Saigon Co-op and Saigon Trading Group (SATRA) will
send trucks with goods, especially essential ones to remote areas, as part of
the city's price stabilisation programme.
Under
the month-long promotion programme, many retailers like Big C, Co.opmart,
Maximart, Metro, and Thien Hoa Interior Furniture and Electronics Centre are
set to offer big discounts.
Saigon
Co.op will launch a US$7.1 million "Proud of Vietnamese goods"
campaign, its biggest promotion of the year, involving more than 600
suppliers.
It
will offer discounts of up to 50% on more than 2,000 products at its outlets
as well as Co.opXtra Thu Duc and Co.op Food chain from August 28 to September
24.
Big C
supermarket chain will first offer discounts of up to 50% on 1,500 products
until September 2, National Day, and then on thousands of products for the
promotion month.
Besides
fresh and processed foods, dry foods, household appliances, fashion items,
cosmetics, and electronic products, it has also slashed prices on hundreds of
products like moon cakes, lanterns, and toys for the Mid-Autumn Festival.
Francis
issued his encouragement at an August 29 business forum in
Francis
promised the
The
Vietnam-Seychelles Business Forum offered enterprise representatives a chance
to brief each other on their countries’ respective policies and investment
environments and lay the groundwork for possible future collaboration.
Vietnam
Chamber of Commerce and Industry (VCCI) Chairman Vu Tien Loc noted two-way
trade between
The
VCCI and SCCI used the presidential visit to sign a cooperative agreement
pledging support for trade links between the two nations’ business
communities.
Indonesian
businesses eye Vietnamese market
The
Southeast Asian region in general and especially
In
2012,
The
Indonesian National Coal Corporation confirmed it regards
As of
May 2013,
Eight
state-owned Indonesian businesses are planning to enter the Vietnamese market
in the very near future, focusing on processing, manufacturing, medicine and
pharmacy mining, electricity, and information technology.
Easing
credit burdens on farmers
Farmers
are struggling to access credit despite a range of bank incentives
specifically designed to iron out snags in the process.
Bank
capital lending for agricultural and rural development has grown by 20
percent annually but is far from meeting customer demands.
In
fact, the Government decree 41 on credit support for farmers has achieved
certain results. After three years of implementation, the Bank for
Agriculture and Rural Development claims to have allocated 70 percent of its
total amount of around VND560 trillion on credit to the agriculture and rural
development. Its bad debt percentage has dropped to below 3 percent.
Vietnam
Farmers’ Association (VFA) Vice Chairman Lai Xuan Mon says borrowers are
still vulnerable to natural disasters, and risks of epidemic spread in the
country.
However,
most credit organisations like to give loans to agricultural businesses
rather than independent farmers while banks require certain deposits in
advance.
The
VFA’s total amount of credit has reached VND13 trillion over the past three
years, but it is accessible to only four percent of rural households.
SBV
Credit Department Head Nguyen Viet Manh says banks are focused on ironing out
snags in preventing them from lending more capital to farmers.
From
now until the end of 2013, the banking system will continue implementing
credit policies for farmers for key agricultural and rural development areas
and gradually help them settle bad debts.
Deputy
Agriculture and Rural Development Minister Vu Van Tam says there is a plan
afoot to launch new programs tailored to farmers’ production processes.
But
the agricultural sector needs restructuring itself to raise the added values
of its products, such as tra fish, rice, and coffee for sustainable
development growth and exports.
Leveraged
buyouts to create waves
Leveraged
buyouts (LBO) are a common feature of many developed economies. LBOs can be a
means to a friendly merger— or they can be hostile, as a controversial tactic
employed by so-called “corporate raiders.” Is
The
VIR-organised
A “leveraged
buyout,” or LBO, is a term to describe the acquisition of a target company
for a majority or its entire stake and the purchase price is financed mainly
by loans from financial institutions. These assets are provided as collateral
either by the target company’s operating cashflow or its assets, or by
issuing high-yield bonds which usually have more relaxed covenant terms
compared to loans from financial institutions or by a mixture of loans and
high-yield bonds.
To
complete an LBO transaction, the investor usually sets up an entity and uses
that entity to raise funds, in which the debt/equity structure is determined
by the detailed plan for that LBO transaction. This entity will use the
entire capital raised to acquire the target company’s shares or equity
capital and make loans to the target company to repay its existing loans and
debts. After the LBO transaction, the new entity will control the target
company and use its operating cashflow - in some cases through dividends paid
by the target company - to repay the loans and debts used for financing the
LBO transaction. If the investor wants to exit the investment, it can sell
the entity or make the entity public through an IPO. By setting up such a
structure, the investor has indirectly changed the target company’s capital
structure - usually increasing the loans and debts portion significantly.
During the LBO transaction, financial advisors usually participate to assist
the investor in analysing the appropriate LBO financing structure, valuing
target companies and raising funds from the capital market.
LBO
transactions create value in two specific ways.
The
first way is that the cost of debt is usually lower than cost of equity.
Therefore, using leverage can decrease the weighted average cost of capital
of the company, increasing the intrinsic value of the target company.
The
second way is for the investor, after the transaction, to perform operation
and business restructuring for the target company, helping to boost growth
and the target company’s value.
Because
of the high risk involved with the high leverage capital structure used, the
success of an LBO transaction depends on numerous factors.
The
first factor is the target company usually has valuable and liquid assets
which can be used as collateral for loans financing the LBO transaction. Its
debt portion of capital is low, its operating cashflow is stable and has a
high ratio over its revenue. Its business is less susceptible to business
cycles, its working capital and future capital expenditure is minimal and
there is sufficient cashflow for repaying loans and debts.
If the
target company, after the LBO transaction, is managed and operated in the
most efficient way by a capable management team that has experience with the
company and industry it will achieve business targets estimated by the
valuation performed during the LBO transaction.
Meanwhile,
if the capital market as a whole is liquid, the cost of debts will remain
stable at a low level.
Macro
factors of the economy, business environment and a stable legal environment
are also factors to support the company’s growth.
The
history of LBO transactions in the
There
are conflicting opinions regarding the pros and cons of the LBO transactions
to the target company as well as the economy.
On the
positive side, the investor will restructure the target company’s business,
operations, finance and manage the company more efficiently to achieve the
expected return on the investment. The LBO transactions, especially where the
target company is a listed company, will add a lot of value to the existing
shareholders because the offer price is usually much higher than the market
price. The LBO transactions, however, also negatively affect the company as
well as the economy. After an LBO transaction, the target company is usually
highly leveraged, increasing credit risk and market risk. In some LBO
transactions, the investor focuses only on reducing costs and repaying debts
over a short period, not considering the company’s long-term growth, by
laying off employees as well as breaking up and selling the target company’s
assets piece by piece. The use of operating cashflows is mainly down to pay
large amounts of debt and leaves the company with less capital to reinvest
into the business.
As a
result, it can lose its competitiveness compared to other companies. The
over-heated booming of LBO transactions can also create asset price bubbles -
especially when private equity funds chase few large target companies,
boosting up the valuations - as well as credit bubbles with increased debt
over GDP ratio.
This
increases the risk of a collapse in the financial system, including those
financial institutions and other investors who finance those LBO
transactions.
In
Vietnam, although not officially labelled LBOs, there are some M&A
transactions in which the purchase price was financed by loans or in exchange
for existing loans based on the target company’s assets acting as collateral.
However, the details are usually not publicised. As an M&A advisor, VCSC
advises its clients to restructure the target company’s debt capital
structure by decreasing interest rates, revising repayment schedules, and
adjusting the collateral’s value to ensure the success of the transaction.
Although LBO transactions have certain positive values as discussed above, we
believe that LBO transactions will take a while to gain traction in
Firstly,
the corporate bond market in
Secondly,
although showing signs of improvement, the economy still has certain risks
which can negatively affect the target company’s performance. Such risks can
leave the target company unable to achieve the business plan used to evaluate
the LBO transaction. This will lead to bad investment returns or, in the
worst case, make the target company bankrupt due to the highly leveraged
capital structure.
Thirdly,
with LBO transactions, highly leveraged capital structures do not add much
value to the banking system’s effort to restructure assets, decrease
non-performing loans, increase capability to value and manage risks. Due to
these reasons, investors should be careful during the due diligence period in
setting a valuation of the target company, analysing an appropriate capital
structure for the transaction and especially valuate the business plan of the
target company with all the possible scenarios together with relevant
business, industrial and legal risks, executed by a capable, experienced
management team.
Banks
recommit to credit risk management
Over
the next 12 months banks will increase their investment into better credit
risk management processes.
A KPMG
Banking Survey released on August 21 supported this assertion with nearly all
the banks surveyed reporting plans to increase investment into credit risk
management.
The
survey posed questions to the 20 largest banks in
40 per
cent responded that they were not satisfied with the current internal credit
ranking system.
“This
statistic is very worrying,” said KPMG partner Tran Dinh Vinh, “Vietnamese
banks need to seriously consider their credit rating systems to maintain
credit quality.”
The
root of credit risk is poorly designed credit models, and Vietnamese banks
are using internal rating models that were developed four or five years ago.
These models fail to keep up with the present situation and banks have lost
confidence in their models because they approved many borrowers that have, in
fact, defaulted on their loans and left the country’s financial sector with a
very high rate of non-performing loans (NPL).
NPLs
have significantly increased since 2009 and officially stood at 4.67 per cent
as of April 2013. However, independent rating agencies and economists believe
the unreported real number to be much higher.
Vinh
added that NPLs are primarily sourced to banks’ subsidiary securities
companies, other lending institutions which extended credit to those who
could not borrow from banks, and state-owned enterprises whose defaulted
loans the government won’t allow to be classified as NPLs.
“The
official NPL rate does not include debts which were sold and not included in
banks’ balance sheets, over-due corporate bonds, and bad debts restructured
by the State Bank’s Decision 780. As such, the current NPL rate is a poor
reflection of the true state of the Vietnamese economy and of banks’ credit
quality,” said Vinh.
The
KPMG survey also showed that most banks replied “no” to the question “Do you think
it is possible to have 15-17 domestic banks by 2015?” as per the government’s
banking system restructuring plan.
The
survey reflected that the restructuring plan had been slow and that there
were still more than 40 Vietnamese banks at current.
“It is
not easy to merge financial institutions. You have to combine people,
processes, technology, branches, and brands. Moreover, the number of banks
has risen so rapidly since 1992 that there is little to no local experience
in terms of M&A between banks,” reported the survey.
Vinh
speculated that banks would have more confidence in the government’s
consolidation plan if the deadline was moved back to 2017 or 2020.
Unbaked
brick makers buoyed by strong exports
Many
unbaked brick makers in the country’s south have said they are still able to
maintain production as strong exports have helped offset low domestic sales
volume.
Phan
Hoai Thanh, general director of Tan Ky Nguyen E-Block Joint Stock Company,
said the factory of his firm in the Mekong Delta province of Long An was
operating at some 60% capacity of 150,000 cubic meters in the first seven
months of the year and that sales volume was better than in the same period
in 2012.
However,
80-90% of the plant’s products were exported to other Asian nations because
local demand has been low due to the protracted real estate market slump.
The
new regulation requires projects with nine floors or higher to use light
unbaked materials that account for 30% of the total needs, which will then be
raised to 50% from 2015. But since the rule took effect from January 1 the
unbaked bricks market has not improved much as it only applies to newly-licensed
schemes. What is more, local home owners still prefer using traditional baked
clay bricks.
Dam
Thanh Tung, deputy director of Vuong Hai Joint Stock Company, noted building
material suppliers normally refrained from selling to property projects on
deferred payment terms since in many cases they hadn’t been paid by realty
developers in the last two years. Like other industry players, Tung’s company
sells about half of its total output of 60,000 cubic meters to
In the
three years after the unbaked construction material development program was
approved, the capacity of local factories has risen to over five billion
unbaked bricks, including around 1.9 million cubic meters of light concrete
bricks. Local sales of this kind of material are low, at 40-50% capacity,
forcing plenty of producers in the industry to turn to foreign buyers to
maintain production, the Vietnam Construction Material Association reports.
Thanh
of E-Block, meanwhile, noted local firms were also facing strong competition
from other countries in exports. One cubic meter of light concrete bricks
sells for roughly VND1.3 million, nearly doubling the price of traditional
baked bricks, while export prices are some 20% lower than domestic ones.
Similarly,
producers of other construction materials are also seeking to make their way
to foreign markets due to a domestic oversupply. As production capacity is
exceeding local demand by 20-30%, it is necessary to foster exports from now
to 2018, said Tran Van Huynh, chairman of the Vietnam Construction Material
Association.
Specifically,
10-15 million tons of cement, 120-130 million square meters of ceramic and
granite paving bricks, three to four million units of ceramic bathing
products and 40-50 million square meters of construction glass should be
exported in the period, which is projected to increase total export value of
the industry to more than US$2 billion.
Maersk
Line positive about second quarter results
In the
second quarter, Maersk Line
Shipping
volume grew by 9 per cent while revenue fell by 3 per cent, said the
Danish-backed company.
“Although
we saw a drop in revenue, we feel that our second quarter result is positive.
We increased shipping volume and saw significant cost reductions,
particularly in terms of fuel, which is one of our main outlays,” said Nguyen
Thi Ngoc Bich, CEO of Maersk Vietnam and Cambodia.
“These
improvements point to a very successful third quarter,” she added.
The
company is part of Maersk Line, the largest operating unit of
Copenhagen-based A.P. Moller-Maersk Group.
The
company’s second quarter report stated that
The
report added that despite difficulties in the global economy, the company saw
great opportunities in
Maersk
Line
SBV
Governor makes two awards to Standard Chartered Bank (
Standard
Chartered Bank (
The
first award, to SCBVL, is the title of “Excellent Labour Collective in 2012”.
The award is the result of SCBVL’s business achievements, management
innovation initiatives, fulfilment of duties towards State budget and
consistent effort to promote corporate social responsibility.
The
second award is a personal Certificate of Merit for SCBVL’s general director
Louis Taylor, for his contribution to the fulfilment of the banking sector’s
targets and the development of SCBVL during 2011 and 2012. This is only the
second time such an award has been made by the Governor to a foreigner.
Despite
a challenging economic environment in 2011 and 2012, SCBVL delivered strong
business performance. Its Consumer Bank launched many innovative and
award-winning products and services. Awards included: a “Visa Leadership
Award in Issuing Innovation”, a "Trust and Use Award for the Best Visa
Platinum Debit Card” and, most recently, the “Best Consumer Internet
Bank" award in 2012 and 2013.
Meanwhile,
SCBVL’s Wholesale Bank offered an increasing range of solutions for corporate
and financial institution clients. The bank was appointed the Sovereign
Credit Ratings Advisor to the Government of Vietnam, and signed a technical
assistance agreement with the Vietnam Securities Depository to build mutual
fund structures in line with international practice. Throughout a difficult
time, SCBVL maintained strong liquidity and excellent capital strength,
creating strong business momentum and an excellent level of activity for
2013.
In
parallel with its business activities, Standard Chartered Bank (
“We
are proud to receive these prestigious awards from Governor Binh. They
recognise our efforts and achievements over the last few years, as well as
providing encouragement for us to continue building our business in a
responsible and sustainable way. As a leading international bank in
Apart
from his role as general director of SCBVL, Louis has been vice chairman of
EuroCham and chairman of the Banking Working Group of the Vietnam Business
Forum (VBF). He participated in a wide range of economic events, where he
actively brought Standard Chartered’s expertise and recommendations to the
local business community and the authorities. He also acted as lecturer in
many banking training courses and played a significant role in the
preparation of EuroCham’s White Book.
In one
example of SCBVL’s community activities, Louis completed a 500 kilometre
cycle ride from Dong Hoi to Danang, raising funds for Newborns Vietnam, a
charity dedicated to reducing neonatal mortality in South East Asia, with a
specific focus on
Mitsubishi
authorises truck retailer
Goldbell
Equipment Vietnam (GEVN), a spin-off company of Goldbell
In the
past month, GEVN staged the Grendia-Grendia Premiere events at the Hilton
Hanoi Hotel and Park Hyatt Ho Chi Minh City to announce the cooperation deal
between the company and well-known Japanese group Mitsubishi Forklift Trucks.
GEVN
will also act as authorised dealer in
Also
at Grendia Premier event, GEVN had jumpstarted a supportive programme
offering charge free checks and consultation services relevant to lifting
equipment for individual and corporate customers.
Goldbell
Equipment Vietnam is a member of Goldbell Group of companies, a Singaporean
market leader in the leasing of industrial vehicles with business operations
spanning across the Asian region with a presence in
GEVN
currently offers distribution and leasing services covering lifting equipment
and equipment for use at golf courses.
SeABank
unveils new credit cards
Southeast
Asia Joint Stock Commercial Bank (SeABank) debuted new Visa international
credit cards with EMV chip security and several other exciting features.
The
new SeABank credit cards enable customers to easily manage their spending,
have fixed monthly payments and reasonable interest rates, as well as
comprehensive insurance systems (up to seven high-level insurance products
for the Platinum card), making SeABank’s credit card platform a welcome
trendsetter in the Vietnamese market.
SeABank
is offering credit limits up to $23,800, 45 days interest-free, and payments
and withdrawals at millions of points of sale and ATMs around the world.
The
new system will make it safe and easy for customers to change their PIN
numbers. Even more importantly, cardholders will be able to make payments in
a number of ways including from their SeABank accounts, bank transfers, and
via internet banking (www.seanet.vn).
SeABank
is also introducing a promotion to encourage people to apply for SeABank’s
Visa cards. From now till October 29, the bank is offering 50 per cent cash
back on a customer’s first three purchases within 45 days of receiving their
card. Maximum cash back for the Platinum card is $47.6, and for Gold and
Classic cards, $23.8.
Bitexco
assigned giant urban project
Bitexco,
a leading Vietnamese developer, has been assigned to be the investor of an
estimated $3 billion urban project in Binh Quoi-Thanh Da peninsula, Binh
Thanh district,
Bitexco’s
appointment is expected to end the almost 20-year log-jam in development in
the area.
According
to local authorities, residents in the project site have faced lengthy
difficulties as their houses were not permitted to be repaired or sold
because the site was earmarked for development into a new urban area.
The
site covers more than 426 hectares and Ho Chi Minh City People’s Committee
announced its plan to develop the area into a cultural sport and tourism
centre as far back as in 1992.
By
December 2000, the city had approved the detailed plan for the area. In 2004,
the committee decided to hand over the land to Saigon Construction Corporation
to develop the project. However, in 2007 the city decided to take the project
away from this investor due to their lack of financial capacity.
Two
years ago, Deputy Prime Minister Hoang Trung Hai permitted the committee to
designate a developer for the gigantic project and the municipal authorities
have decided on Bitexco as its developer.
According
to Ho Chi Minh City Zoning and Architecture Department, the area would be
dominated by green landscaping and an ecological tourism resort combined with
housing. Out of the total of 426 hectares, around 100 hectares will be
reserved for parks and public facilities with the remaining 48 hectares would
be devoted to transport infrastructure.
The
total development cost for the project, including the compensation claims of
local residents, is estimated at $3 billion.
At the
meeting held last week, chairman of the Ho Chi Minh City People’s Committee
Le Hoang Quan requested the local Department of Finance to focus on a
compensation assessment for approximately 3,000 households in the area that
would be affected.
The
local Department of Zoning and Architecture was assigned to work with the
developer on completing the approved plan. This department would also be
responsible for setting up a special team to guide the investor on
implementing the 1/2000 scale plan. The department proposed to add a
technology centre to the plan and increase the potential population size of
30,000 people, which was approved in 2007, to 41,000-50,000 people when the
project is finished.
Bitexco
has track records in developing and completing landmark property projects in
BR-VT
seeks to woo investors into supporting industries
Ba
Ria-Vung Tau Province has proposed an incentive mechanism applicable to
investors committed to Da Bac Industrial Zone and Phu My 3 Industrial Park
exclusively designed for supporting industries.
The
southern province and Haiphong in the country’s north have been picked by the
Government as machinery and electronics manufacturing areas to attract
investors, especially those from Japan.
As the
specialized industrial park in Haiphong’s Dinh Vu-Cat Hai Economic Zone has
offered many incentives due to its unfavorable conditions, BR-VT is seeking
similar incentives for its specialized industrial parks.
Investment
projects involved in supporting industries in BR-VT would get the same
incentives as those in socially and economically disadvantageous areas and in
priority sectors. BR-VT also wants incentives for developers of
infrastructure for industrial parks for supporting industries.
The
province has also proposed not setting up an evaluation board which is tasked
to weigh incentives for products of supporting industries as required by the
Prime Minister’s Decision 12/2011/QD-TTg in development policies for some
supporting industries.
Procedures
for recognizing supporting industries enterprises should be simplified. The
job of recognizing such businesses should be transferred to the provincial
government and management boards of industrial parks.
It is
not necessary to approve environmental impact assessments of supporting
industries projects involving small and medium enterprises, except for
painting, welding and plating ones, as most industrial parks have good
infrastructure, including central wastewater treatment facilities. Therefore,
a pledge of environmental protection would be enough.
According
to the provincial government, since BR-VT was chosen to set up industrial
zones for Japanese supporting industries, the province has conducted several
investment promotion programs to get access to Japanese firms active in
supporting industries as well as prepared infrastructure and human resources.
The
provincial government has signed memoranda of understanding with Japan’s
Kawasaki City, the Kawasaki Chamber of Commerce and Industry and Forval
Corporation to carry out promotion activities and introduce BR-VT to Japanese
companies.
The
conference themed ‘40 Years of Vietnam-Japan Cooperation and Development’
held in BR-VT last Friday attracted the participation of around 100 Japanese
enterprises. With this conference, the province listened to expectations of
Japanese investors who want to make investments here.
For Da
Bac Industrial Zone and Phu My 3 Industrial Park where investors can get
ready land in the fourth quarter, BR-VT has proposed many incentives for
investors committed to supporting industries. The province expects a 10% tax
rate in 15 years for sectors included in the list, a four-year tax exemption
after projects have taxable income and a 50% tax reduction in the following
nine years.
Regarding
sectors belonging to supporting industries but staying outside the list, the
province has proposed a 20% tax in ten years, a tax exemption of two years at
the maximum and a 50% cut in four years after that.
BR-VT
has also sought a zero import tax on imported goods used as fixed assets of
supporting industries projects and a five-year tax exemption for those
importing materials and components which are not produced locally.
Pacific
Place tenants row over rights
A
dispute between a group of residents and Pacific Place owner, Ever Fortune
JSC sees no end in sight despite a pause in development work as both sides
await an official response from authorities and avert further escalation of
tensions.
Located
at 83 Ly Thuong Kiet Street, Pacific Place is one of the most luxurious
buildings in central Hanoi.
The
operation of a medical clinic in the basement, a restaurant on the roof top
and the addition of three more lifts in the office building next to the
residential area were issues of contention between the residents and the
property owner. Residents complained that waste from the clinic could harm
the environment and that the restaurant was too noisy at night despite
closing before midnight. The residents also complained the new lifts would
spoil the architecture of the building.
According
to Cheng Huan Chai, general director of Ever Fortune, Pacific Place’s
management company, after the residents put forward their claims, Hanoi
Department of Construction carried out an inspection.
“The
clinic and the restaurant both operate under licensed permits and the purpose
for the additional three lifts is to enhance the quality of the building. The
installation of the lifts was also permitted by the Hanoi Department of
Construction,” the Ever Fortune spokesman confirmed.
“We’re
aware of the regulations related to the upkeep of the building and proper
environment controls. These include proper and separate collection and
disposal of discards from the clinic and minimising noise disturbances when
installing the lifts. In fact, before the start of the work we met with
residents in late May to inform them about the expected inconveniences and we
were not made aware of any objections then,” he said.
He
further explained that a dedicated 24-hour hot line and an email address had
been set up for residents to provide their comments and feedback.
However,
a group of residents was demanding more. They wanted the investor to remove
the clinic and the restaurant from the building, and to stop construction
while awaiting a final decision from authorities.
According
to Nguyen Hong Minh, director of the PMC property management company,
defining public and private areas between residents and property owners in
high-rise buildings was one of the main conflicts.
The
basic foundation to resolve the dispute however, according to Minh, was to
define which kind of the contract was signed between residents and building
owner.
Residents
would have the right to use areas in the building as outlined in the civil
code if a purchasing contract was signed between two sides. If they possessed
a lease contract, then the two sides would be bound by the contract’s
articles, Minh said.
“As an
investor and manager for Pacific Place, our interests are very much aligned
with both our residents and office tenants. By improving the quality of the
building, we will be able to improve the overall environment as well as
positioning for the building, and ultimately, increase value for all,” Chai
said.
Apart
from the issues of contention, residents also claimed that the company had
used one basement for a clinic and there was no longer sufficient room for
residents to park their cars.
Pacific
Place has five basements. The second to fifth level basements are reserved
for car parking leaving ample space for residents as well as office workers
to park. In addition, the fifth level basement is not being used.
According
to the original plans submitted for approval by the Hanoi Department for
Zoning and Architecture in 2005, the first level basement, where the clinic
is located, was marked for business use.
Completed
in 2007, Pacific Place is now owned by Singapore’s Mapletree group. It
consists of 144 long-term leasing units and 35 serviced apartments in one
part of the building, while more than 60 companies, enterprises and embassies
are occupying office space in another part of the building.
Malaysia
wants 500 Vietnam businessmen to attend summit
Malaysia
is looking to attract around 500 Vietnamese businessmen to the Global
Entrepreneurship Summit 2013 scheduled for October 11-12 in Kuala Lumpur.
Malaysia
External Trade Development Corporation and Malaysia Tourism Promotion Board
in HCMC introduced the event at a press briefing last week. The initial cost
to attend seminars and lectures is US$100 per person and there are special
offers for big groups of attendees.
“Thirty
businessmen registered at the press briefing to attend the summit. We will
contact Malaysia travel firms and businesses to provide special offers for
guests,” said Do Phan Vinh Hai, marketing manager of Malaysia Tourism
Promotion Board in HCMC.
According
to the board, Malaysia is focusing on developing MICE (meeting, incentive,
convention and exhibition) tourism and incentives could be extended to big
groups of participants such as express procedures at the airport. In
addition, there will be free airport transfers and special prices for early
birds.
Malaysia
expects to attract 3,000 attendees worldwide who are policy makers,
administrators and businessmen.
According
to Hai, Vietnam is one of the 15 markets sending the highest numbers of tourists
to Malaysia.
Some
211,000 Vietnamese visited Malaysia last year, up 21% from the previous year,
and the figure in the year’s first half was 112,782 with a year-on-year rise
10.3%.
Malaysia
expects to welcome 250,000 tourists from Vietnam this year.
HCM
City tourism industry lacks skilled human resource
The
Department of Education and Training and Tourism Schools in Ho Chi Minh City
have agreed to form a general council of principals and set rules for
trainees in the tourism industry, to improve quality and standards.
There
are around 50 schools offering tourism courses in the City, however, the
number of trained tourism students can meet only 60 percent of the demand.
Every
year, the tourism industry needs to recruit around 45,000 people but these
schools are able to provide only 15,000. Not to mention that travel companies
have to re-train most of their employees as they fail to meet requirements in
skills and foreign language knowledge.
Source:
VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
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Thứ Sáu, 30 tháng 8, 2013
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