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BUSINESS IN BRIEF 22/10
La
Poste Group, LienVietPostBank sign technical consultant contract
LienVietPostBank
and Vietnam Post signed a memorandum of understanding (MoU) and a technical
consultant contract with
Accordingly,
La Poste Group will provide consultancy to LienVietPostBank and Vietnam Post on
the three major issues including the merger of effective administration
models, the designing of retail products for post banks, the launching
process of new products to the market, and the building of a role model post
transaction office in five years.
LienVietPostBank
and La Poste Group will set up a project team consisting of experienced
experts. In addition, La Poste Group will also transfer technologies to
LienVietPostBank and Vietnam Post under human resource training program.
This
is the first consultant contract signed on the 40th anniversary of diplomatic
ties between the two countries. La Poste Group believed that the contract
will help
By the
end of June, LienVietPost Bank had a charter capital of VND6.460 billion and
a mobilized capital of over VND55trillion with total assets worth nearly
VND80,000 billion and nearly one million customers. The LienVietPostBank will
have its branch offices set up nationwide by the end of 2018.
IT
application improves business competitiveness
The
effective application of e-commerce and information technology (IT) has
helped improve business competitiveness considerably.
The
latent potential for e-commerce is undeniable.
The
Ministry of Industry and Trade’s (MoIT) E-Commerce and Information and
Technology Department Head Tran Huu Linh says e-commerce and IT application
are essential to maintaining business competitiveness in the current era of
globalization.
Via
the internet, businesses can directly access customers, reduce costs, and
increase revenues and profits when excess inventories, widespread bankruptcy
and business dissolution are leading to a decline in the purchasing power and
export performance.
Dr Vo
Tri Thanh, Deputy Head of the Central Institute for Economic Management, says
business survival depends on exploiting IT advantages such as high speed
connectivity and capacity for integration.
A
recent E-Commerce and IT Department survey of businesses’ marketing method
assessments showed 18 percent focus on search engines, 12 percent prioritised
social networks; 6 percent used print newspapers, 11 percent used online
newspapers, 5 percent advertise on television, and 6 percent resorted to
other means.
Pham
Tan Cong, Head of the centrally-run business bloc’s Party Committee Office
says 32 of the bloc’s businesses have created 1.3 million jobs, significantly
contributing to national budget revenue.
Another
survey of 19 businesses of the bloc found all respondents used the internet
and local area networks but only 12 opened a specific IT office and 8
integrated the IT section into the corporate budget.
All
these business have their own websites, only seven accept online orders, four
use online payment systems, six collect customer information via the
internet, and eight offer customers online consultancy.
Eleven
percent of surveyed businesses use a customer relationship management (CRM)
model and 29 percent apply an enterprise resource planning (ERP) system.
Only
three of businesses maintain a Chief Information Officer position.
FPT
Group representative Mai Cong Nguyen argues competitiveness includes access
to capital and materials, up to date technology, and management capacity.
Management
capacity is the key to international competition, he stresses.
A
Vietnam National Petroleum Group (Petrolimex) representative agrees that
State-run businesses must have new thinking and focus more on investment in
technology.
Pham
Tien Cong insists that businesses should fully realize the importance of
applying IT solutions in the building of a modern system of
administrative and operational management.
Russian
companies keen to sell meat to Vietnam
Russian
farming businesses plan to penetrate the Vietnamese market as of early 2014.
Among
them are Miratorg-Russian integrated meat and feed producer,
Prioskolye-leading manufacturer in the Russian poultry meat market,
Belgrankorm company, The Petelinskaya Poultry Factory and Ural Broiler- one
of the leading producers of high quality food products in
The
news has come from the ITAR-TASS News Agency in the wake of negotiations
between Rosselkhoznadzor, the Russian Federal Service for Veterinary and
Phytosanitary Supervision and the National Agro Forestry Fisheries Quality
Assurance Department (NAFIKAD) and Ministry of Agriculture and Rural
Development.
A
representative of Rosselkhoznadzor was quoted as saying that the provision of
meat and poultry to
Deputy
PM Hai was speaking at the annual VinaCaptial Investor Conference in
The
Deputy PM said the Government has asked its ministries and sectors to create
a favourable environment for investors in order to restore their confidence.
The
government is focused on stabilising the macroeconomy, promoting business,
and improving the State’s management skills to curb inflation.
The
conference will close on October 18.
Int’l
Agricultural Fair planned in Thai Binh
Nearly
300 local and foreign businesses have registered to participate in
Provincial
Department of Industry and Trade Deputy Director Tran The Dinh described the
annual fair as a prestigious occasion for businesses and investors to promote
trade, advertise their respective advantages, and learn more about scientific
and technological advances that could fuel the northern delta region’s
economic, trade, and agricultural development.
The
fair’s 400 pavilions will display strains of plants and livestock, machinery
and equipment, bio-technology, fertilizers, cattle feed, agricultural products,
seafood, beverages, processed food, electronics, telecommunications,
information technology, fashion, interior decoration, handicrafts, and
decorative plants.
It
also encompasses an exhibition introducing the region’s economic, cultural,
and social achievements.
Dinh
said the annual fair attracts more than 100,000 people. Participating
businesses often record sales worth an estimated VND20 billion.
Vietnam-India
trade turnover surges
The
two countries’ two-way trade turnover totalled US$3.94 billion after the
first nine months of the year, a 39.2 percent increase from last year’s same
period.
In his
October 17 report, Vietnamese Trade Counsellor to India Nguyen Son Ha said
The
trade deficit fell 29 percent to US$265.5 million. Bilateral trade turnover
already matches last year’s final total.
The
Vietnamese trade office in
Military
Bank named Best Domestic Bank
Asiamoney
Magazine has awarded the Military Commercial Joint Stock Bank (MB) its “Best
Domestic Bank in
According
to
Asiamoney
credited MB’s astute management and shareholders’ support with helping it
overcome the difficulties of the current economic downturn.
The
annual award, decided by financial experts and fund managers, is judged
according to growth rates, business initiatives, profits, and network
expansion.
Asiamoney
is a prestigious Asia-Pacific economic and financial magazine and part of the
Euromoney Institutional Investor PLC Group.
Begun
in 1990, the Best Bank award has become an important reference for customers
and researchers to assess financial institutions in the Asian region.
Vietnam
joins international trade fair in Macau
Vietnamese
products including rice, coffee, cashew nuts, and ceramics are on display at
the 18th International Trade and Investment Fair (MIF) opened in
The
annual four-day event, the largest of its kind hosted by
Businesses
consider it a useful forum for exchanging information, exploring potential
partnerships, and discovering investment opportunities.
This
year’s fair features more than 1,900 pavilions and 4,600 exhibitors from 50
countries and territories. Pavilion and participant numbers are up 4.6
percent and 17 percent respectively compared to 2012.
Since
its launch in 1996, the trade fair has grown into a key pillar supporting
Technical
support to insurer Bao Viet
The
Bao Viet Insurance Company and its strategic partner Sumitomo Life of
The
agreement was signed on December 20 last year after fact-finding tours by
both sides to study their business operation and development demand.
Under
the plan, the Japanese insurer will support its Vietnamese partner in life
insurance, non-life insurance and risk management within one year.
Bao
Viet General director Tran Trong Phuc said the agreement is expected to help
the group become a leading finance-insurance one in
Can
Tho targets 860,000 tonnes in rice export
The
Mekong Delta city of
In the
first nine months and two weeks of this year, the city shipped 755,000 tonnes
of rice, raking in 359.7 million USD, representing a year-on-year increase of
14 percent in volume and 22 percent in value.
Apart
from main markets in Asia, Africa, Europe, Oceania and the
Taking
advantage of the opportunity, the local authorities have directed enterprises
that engage in exporting rice to foster promotion and marketing campaigns to
seek more new markets.
It has
also encouraged local rice processors to improve their production in order to
enhance the quality of rice.
Can
Tho is looking to cooperate with other localities in the region to ensure
enough rice for export.
The
city has also decided to double its VietGAP standard large-scale rice fields
to 14,000 ha in the 2013-2014 winter-spring crop, in order to increase rice
output and quality.-
Int’l
agro-fair to attract 300 businesses
About
300 domestic and foreign businesses will join the International Agriculture
Northern Delta Fair 2013 in Thai Binh province from November 5 – 11.
Half
of the fair’s 400 booths are of the province’s businesses, the remainder come
from those in northern localities and such countries as Indonesia, the
Republic of Korea, and China.
Deputy
Director of the provincial Department of Industry and Trade Tran The Dinh
said that the event, held every November in Thai Binh, draws over 100,000
visitors each year.
It
will help businesses intensify trade promotion, advertise localities’
strengths, and apply advanced technology to production, thus creating a
driving force for economic and rural development in the region, he added.-
Ca
Mau works to earn 1 billion USD from exports
The
southernmost
With
focus on aquatic products and rice, the two major income earners of the
locality, Ca Mau is working to deal with material shortage by both buying
local aquatic materials and importing those from other countries.
Besides
targeting traditional markets like the
Ca Mau
has also asked sectors and businesses to restructure themselves to improve
operation efficiency while reducing costs and increasing the quality of
products. The province also assists local enterprises in coping with
difficulties in bank loans, inventories and labour shortage.
The
locality is aiming for 980 million USD in seafood exports and about 20
million USD from rice sales.
Ly Van
Thuan, General Secretary of the Ca Mau Seafood Exporters’Association, said
there were positive signals in the third quarter of this year with many
enterprises making a profit and successfully solving their inventory
problems.
Many
new contracts have been signed, creating better prospects for exports in the
last months of the year, he added.
As of
October 15, Ca Mau’s exports had already topped 750 billion USD.
Exports
increase in three quarters
The
Ministry of Industry and Trade, announcing the figures during a meeting in
By
now, there have been 19 products with export turnover topping 1 billion USD
each, 11 of which have topped 2 billion USD. Largest earners include
telephone and accessories with 15.52 billion USD (79.9 percent increase),
garment 13.1 billion (17.3 percent), footwear 6 billion (15.1 percent),
machinery 4.37 billion (5.1 percent), wood and wood products 3.87 billion
(14.9 percent).-
A
seminar themed “The European Union in the 21st century: The EU integration
process and the interaction between EU’s supranational institutions and the
national EU member states” was held in
The
presentations at the event, jointly organised by
Specifically,
the seminar reviewed the interaction between EU’s supranational institutions
and the EU member states as well as the decision-making of the EU
institutions and the negotiation process with the EU member states.
The
role of EU member states’ within the bloc and the European integration
process, with a particular focus on Belgium, drawing on 50 years of
experience as a member state of the Union, were also the prominent topics for
discussion at the event.
In his
speech, Dirk Achten, Vice-Minister, President of the Board of the Ministry of
Foreign Affairs, Foreign Trade and Development Cooperation of Belgium
highlighted the relations between Belgium and Vietnam, saying that this
relationships has evolved from development cooperation to a rich patchwork of
partnerships in various sectors, both at the level of central Governments,
regional authorities as well as through academic cooperation or business
partnerships.
“
Meanwhile,
Dr. Franz Jessen, Ambassador-Head of Delegation of the European Union to
“Advancing
our bilateral cooperation, recently by the EU-Vietnam Partnership and
Cooperation Agreement (PCA) signed in June 2012, is one of the EU priorities
in the region. Additionally, we believe that Europe's experience in regional
integration can also be of relevance for
The
Ministry of Finance, General Department of Taxation, Vietnam Tax Consultants
Association in coordination with the Asia-Oceania Tax Consultants Association
held the 21 st annual conference of the Asia- Oceania Tax Consultants
Association (AOTCA 21) in
The
event, first time in
Participants
also shared experiences in taxation policy formulation and management. They
also discussed on tax consultant service and tax agents in an effort to have
tax law implemented effectively and equally.
Speaking
at the event, Deputy Finance Minister Nguyen Thi Minh said
Vietnamese
government has also continued the tax policy reform introduced in the
2011-2020 taxation master plan. The taxation reform includes simplifying tax
procedures, tightening measures on anti- price transferring, tax fraud, and
enhancing the role of tax agents and tax consultants, added Minh.
The
master plan aims to create favourable conditions, transparency and fair
playing field for investors in
Thanh
Hoa rolls out welcome mat for Nghi Son EZ
Thanh
Hoa province, which boasts the Nghi Son Oil Refinery and Petrochemical
Complex Project, will organise a trade promotion conference on October 23-24
to introduce its socio-economic development strategy to 2020 with a vision
towards 2030 as well as its incentives for foreign investors. Report by the
The
Nghi Son Economic Zone (EZ) in Thanh Hoa province is expected to make more
breakthroughs in investment attraction in the coming time thanks to its
potential and the upcoming record breaking 9 billion USD Nghi Son Oil
Refinery and Petrochemical Complex Project.
To
attract a large amount of capital into the EZ, on October 23-24 Thanh Hoa
provincial People's Committee and the Ministry of Planning and Investment
will co-organise a forum on promoting investment in Nghi Son EZ and the
surrounding areas.
The
Nghi Son EZ is located in the south of Thanh Hoa province, about 200km south
of
The EZ
is planned into many important sections on a total area of 18.611ha,
including
Not
only having very favorable and strategic position for investment attraction,
Head of Nghi Son EZ Management Board Tran Hoa said the EZ is also one of
Vietnam’s five key EZs prioritized by the government to build important
infrastructure systems such as breakwaters along with traffic, water and
telecommunication systems.
By
now, the Nghi Son EZ has attracted 74 investment projects, including 66
domestic projects with total registered capital of 93 trillion VND and 8
foreign projects, totaling 12.1 billion USD.
Some
projects will have a large effects on the provincial, regional and national
socioeconomic development such as the Nghi Son Oil Refinery and Petrochemical
Complex with a capacity of 10 million tonnes of crude oil per year and total
investment capital of more than 9 billion USD; the Nghi Son 1 Thermal Power
Plant project with a capacity of 600MW invested by the Electricity of Vietnam
Group and total investment capital of 22 trillion VND; the Nghi Son 2 Thermal
Power Plant project with a capacity of 1,200MW and total investment capital
of 2.3 billion USD invested by the joint-venture Marubeni Group of Japan and
Kepco Group of the Republic of Korea.
Vice
Chairman of the Thanh Hoa provincial People's Committee Nguyen Dinh Xung
said, investment attraction in the Nghi Son EZ has obtained recognizable
results. However, the investments are only at an early stage and remained
modest maybe because the investors have not been fully aware of preferential
treatments, especially in terms of land and tax policies when undertaking
investments in this EZ.
In
terms of land policies, the investors’ land and water face hire costs will be
exempted for 11-15 years since the operations of projects, depending on the
fields and branches of the projects.
As for
tax policies, when undertaking investments in the Nghi Son EZ, the investors
will enjoy an Corporate Income Tax (CIT) rate of 10 percent applied for 15
years since the operations of projects. The CIT is exempted for the first
four years and reduced to 50 percent of payable tax amount for nine
subsequent years
Regarding
high-tech, large scale and important projects to the development of various
fields and branches or to the provincial, regional socioeconomic development,
preferential tax rates could extend to a maximum of 30 years. Goods import
taxes to make fixed assets and specialized transport means used in the
projects are exempted. Import taxes are applied for five years since the
operations of projects for production materials, accessories that
Hoa
said: “The success of investors at the Nghi Son EZ is also that of
Operators
ring 3G rate changes to better networks
Telecom
providers increased 3G fees in order to reinvest in their mobile networks,
VinaPhone deputy director Ho Duc Thang has said.
Customers
deserved the best service for their money, Thang said at an online discussion
organised by Infonet online newspaper on October 17, so VinaPhone was
building better 3G services with the Ministry of Information and
Communications (MIC).
However,
he warned that customers should not expect service quality to improve
immediately. "We have to build the network according to a detailed plan
so we are not able to finish it immediately," he said. "While the
network is in adjustment, the service quality may not be good."
After
MIC approved the three giant telecom providers' proposal to increase the 3G fee,
they all raised the monthly full-package fee to 70,000 VND (3.3 USD) for
600GB. Many wondered if they had colluded, although representatives of the
providers denied this.
Tran
Anh Son, deputy director general of the Competition Administration Department
under the Ministry of Industry and Trade, said that the department had asked
the telecom enterprises to provide relevant information.
"We
will collect information and find out more details. After that, we can give
our opinion on whether their simultaneous fee increase violates the law on
competition," he said.
Nguyen
Viet Dung, head of Viettel Group's business department, admitted that the
company had received complaints from customers but said that 3G signal
quality was a "top priority" for Viettel.
"After
being allowed to provide 3G services, the corporation invested in more
infrastructure than any other, with 26,000 emission stations. We will
continue to add more stations," he said.
Nguyen
Duc Trung, deputy general director of the Authority of Telecommunications
under MIC, said that the fee increase was unavoidable.
Most
telecom equipment in
"The
telecom providers need to adjust the fee. If there is not any change in the
market, the companies will continue increasing the fee in the future, as they
registered with MIC to ensure the fee is not lower than the cost," Trung
added.-
Banking
sector audit shows mixed results
The
State Audit of Viet Nam (SAV) has said the State Bank of
In the
report, SAV concludes that the management of interest rates in 2012 was
considered more flexible with many downward adjustments helping to curb
inflation at 6.81 per cent against the Government's target of 7-8 per cent.
However,
other findings were varied with credit growth falling short of 2012 targets,
holding at 8.85 per cent below a target range of 15-17 per cent. Meanwhile,
total means of payment surged 22.4 per cent, far above the 14-15 per cent
target.
SAV
noted its auditing results on 59 credit institutions showed the
non-performing loan ratio was also behind expectations, hitting 7.8 per cent
by the end of last year compared with the 4.08 per cent ratio reported by 120
credit institutions.
In
relation to the Viet Nam Development Bank (VDB), SAV indicated an imbalance
between the source and use of funds that led to a significant stagnation of
capital for the financial institution.
The
bank's lending activities also faced a number of obstacles, including project
inefficiency, large losses and insolvency. The bank also faced high bad-debt
ratios for preferential credit programmes and encountered errors in
accounting for management fees and compensation for interest rate gaps.
SAV
plans to focus on assessing the financial health, management and performance
of non-core investments from next year, with a particular focus on
restructuring State-owned entities, commercial banks and credit institutions
in line with growth models.
The
move will underpin recommendations provided to the Government and National
Assembly on restructuring State-owned enterprises and commercial banks, and
bolstering supervision of the two sectors next year.
SAV
will also audit this year's State budget and properties in 2014, in addition
to assessing monetary policy implemented by the central bank.
Under
SAV's plans, the Mekong Housing Bank (MHB)'s 2013 financial statements will
be audited to reveal the bank's bad loans and investments in non-core
businesses by the end of 2013 and June 30, 2014.
APA
to clarify tax admin issues
The
introduction of an Advance Pricing Agreement (APA) is expected to create more
transparency in the tax administration process involving both tax authorities
and taxpayers in an agreement and enabling both parties to control and
monitor transfer pricing (TP) issues.
This
argument was made by several experts at the 21st annual conference of the
Asia-Oceania Tax Consultants' Association (AOTCA) held in Ha Noi yesterday.
Vu Huong, a tax partner of Ernst&Young Viet Nam said that APA agreements
last for no longer than five years and determine the basis of tax
calculations and pricing methods prior to the submission of corporate income
tax and customs declaration.
"APA
will not only help enhance the enterprises' tax and transfer pricing
compliance level but also increase their confidence that a transfer pricing
audit is mitigated or avoided for the duration of the APA," Huong said.
She
added that
She
recommended introducing rules specifically applicable to complex high-risk
transactions and to less complex or low-risk transactions.
Sharing
his ideas, Mie Seyama from Zeirishi, a certified public tax accountant
member, said
Taxpayers
proposed a way to calculate the APA in advance. If the tax offices approved
the method, TP rules would not be imposed. He said bilateral APAs have been
the most effective to prevent TP disputes.
Talking
about experiences in building APA programmes in
As
many as 300 delegates and 200 senior tax experts gathered at the event which
was organised in
The
conference focused on six major topics regarding preferential tax policies
for investment encouragement: APA, legal regulations on tax evasion and impacts
on tax consultants, tax payers' rights and obligations, taxable income and
profit shifting – the cause and effects of developing countries and
principles of Organization for Economic Cooperation and Development (OECD).
The
Viet Nam Tax Consultants' Association joined the AOTCA in 2008 as an observer
and became a full member in 2009.
Investors to
reap higher gains in VN
The
statement was made by Deputy Prime Minister Hoang Trung Hai yesterday at a
conference in
Hai
said the Government has designed a series of solutions to address challenges
with top priority given to the stability of the macro-economy, a reasonable
growth rate, inflation control, production acceleration and improvement of
State management efficiency.
"We
have achieved positive results in the first nine months of this year,"
he told participants at the VinaCapital Investor Conference.
The
country posted GDP growth of 5.54 per cent for the third quarter, up from the
second quarter's 5 per cent and the first quarter's 4.76 per cent.
This
year's rate is expected to stand at 5.4 per cent, and is hoped to rise to 5.8
per cent next year.
"Interest
rates have continued to fall while credit growth saw signs of
improvement," he said.
Businesses,
though, are still faced difficulties, but are recovering, he noted.
Export
value was US$95 billion and the figure is expected to reach $129 billion by
the year-end, up 12.6 per cent from 2012.
The
registered capital of foreign direct investment was $15 billion, up by more
than 36 per cent over the same period last year.
He
said the country would continue its economic restructuring with a focus on
completing the market economy mechanism; creating a fair competition
environment; and improving administrative reform.
Rapid
human resource development, especially highly skilled staff, and
infrastructure development, are also priorities.
Economic
restructuring, with an emphasis on public investment, the banking system and
State-owned enterprises, will be linked to sustainable growth.
As for
handling bad debts, the Viet Nam Asset Management Company has been yielding
positive results.
The
deputy prime minister also promised a new legal framework to allow
participation by foreign investors.
Beginning
in 2014, the corporate income tax will be lowered to 22 per cent from the
current 25 per cent, and in some special cases the rate will fall further to
20 per cent.
Further
efforts will be made to tackle investors' difficulties, he said.
Andy
Ho, managing director and investment head of VinaCapital, said the investment
opportunity has potential and the investment window will open if signs of
stability return, such as stronger GDP growth, declining interest rates and
improved credit growth.
If
this occurred, it would help business expansion and the resolution of
non-performing loans.
He
also cited a P/E (price to earning) ratio of around 12-13, while elsewhere in
"Top
companies in defensive sectors like consumer goods, healthcare and
agriculture continue to produce good earnings growth," he said.
He
added even with the banking sector in difficulty, investment opportunities
are created due to low prices, citing VinaCapital's investment in commercial
banks like Eximbank and Military Bank.
VinaCapital
manages $1.5 billion in three funds listed with the London Stock Exchange
(Alternative Investment Market), VinaCapital Vietnam Opportunity Fund,
During
the one-day conference, investors were introduced to several topics including
the country's real estate and securities markets, infrastructure development
in
Vegetable
prices jump after Storm Nari
Vegetable
prices soared after storm Nari hit
In
Vegetable
supplies declined after the storm because regions growing vegetables were
flooded and transporting vegetables to the inner city was difficult, said
Nguyen Thi Hoa, a trader in Hoa Khanh Market.
Vo
Thanh Tung, head of the Hoa An Market management board, recommended traders
in the Hoa An Market not to sell vegetables for a significantly higher cost
despite the shortage. Meanwhile, he said, the price of other foods was stable
at VND250,000 ($11.9) per kilo of beef, VND90,000 ($4.3) per kilo of pork and
VND25,000-40,000 ($1.2-1.9) per kilo of fish.
The Da
Nang Industry and Trade Department said prices of building materials such as
steel and cement were unchanged.
The
department said vegetable prices would continue to increase in coming days,
but market watch teams would carry out inspections of trading activities in
markets.
The
price of rice and dried food such as instant noodles would remain stable
because eight companies had huge stockpiles of these products, including Da
Nang Food Joint Stock Co, Vissan Da Nang Co, An Hai Dong Cooperative and Da
Nang Me Coc Ltd Co.
Members
agreed to retain the economic targets set for this year.
According
to a report tabled by the city People's Committee at the meeting, the
services sector expanded by 10.4 per cent, agriculture by 5.8 per cent, and
industry and construction by 6.4 per cent.
Hai
said the city's gross capital formation in the first nine months was
estimated at VND123 trillion (US$5.82 billion), 3.3 per cent up from the same
period last year.
Hai
noted that in the past this had always been close to 40 per cent of GDP, but
has fallen to under 30 per cent now.
He
ordered relevant officials to identify the causes for this, but said in past
years the ration was higher thanks to abundant resources and liberal
investment policies.
The
banking sector's difficulties had been addressed but its weaknesses remain,
he admitted, adding that relevant agencies have to focus on efforts to
strengthen the banking system.
He
promised the city would improve social welfare measures.
According
to the People's Committee report, the city is likely to achieve economic
growth of around 9.2 per cent this year against a target of 9.5 per cent
plus.
Over
280 businesses cease operation in Thai Binh
Up to
286 businesses have stopped operation in
The
provincial Business Association chairman Tran Huu Khoa announced the figures,
saying the local firms' poor management and financial capacities and negative
influence of the global economic downturn were behind the situation.
Enterprises
will continue to face many challenges in the time ahead, Khoa said,
petitioning the State's further assistance in policies, administrative
procedures as well as finance in order to help them overcome difficulties.
Billions
of VND owed to the social insurance fund
The
unemployment insurance programme is owed billions of VND due to lax regulations
and lack of awareness.
The
problem was discussed at a review conference five years after the
implementation of the unemployment insurance programme held by the Ministry
of Labours, Invalids and Social Affairs (Molisa).
Currently,
around 8.3 million people are enrolled in the programme. In 2010 the fund was
at VND609 billion (USD29 million) but reached VND7.9 trillion in 2012.
However, the unpaid money has also sharply increased. In 2009, the debt owed
to the social insurance fund was VND43.1 billion, increasing to VND600
billion as of August 2013.
The
deputy head of the Social Insurance Policy Implementation Department, Nguyen
Hung Cuong, said there are a number of reasons that caused such a huge debt.
The first was the adverse effects from the economic downturn, and the second
was non-adherence to the law. However, 50% of the debt is from the
government.
According
to regulation, any participant must pay 1% of their monthly wages to the fund
and the government will match those funds. In reality, this 1% of support has
been disbursed very slowly.
At the
same time, many companies are avoiding their duties to employees. Even though
employees' wages are cut down a little for unemployment insurance, companies
do not follow proper procedures and try their best to keep employees working
longer hours.
Punishments
for violators are weak and the social insurance agencies also do not have
clear regulations for inspection responsibilities.
Representatives
from the Vietnam Chamber of Commerce and Industry suggested that social
insurance agencies should extend the debt payment deadlines depending on the
scale of the enterprise. They went on to recommend that the rules must be
more stringently enforced.
According
to the Molisa's Bureau of Employment, they will install new management
software that will be able to connect all of their offices with social
insurance agencies. This improvement is expected to shorten administration
procedures and to more quickly deal with employees' requests.
Agro
export revenue sees sharp drop in Vietnam
At a
meeting on October 17 to review agro-export revenues and plans for next three
months of the year, the Ministry of Industry and Trade said that export
turnover in first nine months of the year has declined.
According
to the Ministry, agricultural produce is the backbone of the country, which
unfortunately has seen a sharp drop in exports.
For
instance, cashew exports have dropped by 15.8 percent, coffee by 23.1 percent
in quantity and 22.4 percent in value, rice by 14.7 percent in quantity and
17.2 percent in value, and manioc and manioc-made products by 22.7 percent in
quantity and 21.2 percent in value.
The
domestic market is facing fierce competition. Genuine businesspersons have to
fight against fraudsters, despite intervention of tax agencies to shrink
purchase and selling price among firms. To resolve this problem, related
agencies must make concerted efforts to curb this menace.
According
to Nguyen Duc Thuan, Chairman of Vietnam Leather and Footwear Association,
the sector may earn export revenue of US$10 billion this year.
Nguyen
Van Tuan, Deputy General Secretary of Vietnam Textile and Apparel
Association, said the sector hopes to touch export revenue of US$18.5 billion
by year end.
US$490
mln ADB loan for two infrastructure projects in VN
The
State Bank of
The
Central Mekong Delta Connectivity Project will be funded $410 million from
ordinary capital resources of ADB and $134 million in non-refundable aid via
the Australian Agency for International Development.
The
above project aims to improve transport in the Mekong Delta region and link
roads from
Millions
of residents in An Giang, Can Tho, and
Within
the next five years, the project is expected to improve transport
infrastructure, reduce poverty, intensify national security and defense, and
foster socioeconomic development in the Mekong Delta and southwest region.
The
Rural Infrastructure Development Project for the Central Highland Provinces
will receive $80 million in preferential credit from ADB and will be
implemented during the period from 2014 to 2018. This is aimed at reducing
poverty by developing technical and social infrastructure and improving
socio-economic conditions for residents in the region.
Nam
Con Son Gas Pipeline Company on Wednesday marked a milestone of reaching
total output of 50 billion cubic meters of gas after ten years of operating
as a key fuel supplier for nearly 40% of
Le
Dinh Chau, operation manager of Nam Con Son Gas Pipeline Company, told local
media that at the moment, the company has total gas capacity of 22 million
cubic meters a day to satisfy the fuel needs for producing one third of the
nation’s electric power output.
The
company supplies gas – which is pumped from the offshore fields of Lan Tay,
Rong Doi, Chim Sao and Hai Thach-Moc Tinh – for many thermo-power stations in
the nation’s southern region such as Ba Ria, Phu My 1, Phu My 2, Phu My
3, Phu My 4 and Nhon Trach.
With
total investment capital of US$1.3 billion, the Nam Con Son gas pipeline
project is now operated by three partners: PetroVietnam Gas Corporation with
a 51% interest, ConocoPhillips with 16.33% and TNK Vietnam with 32.67%.
According
to Nam Con Son Pipeline, the company expects to obtain total revenue of US$226
million this year, a 5% pickup from last year. In 2003-2012, the company paid
some VND1.3 trillion in taxes.
Speaking
to the Daily during a media trip to the company’s gas treatment terminal in
An Ngai Village, Long Dien District in Ba Ria-Vung Tau Province on Wednesday,
Chau said the current gas demand of power plants had declined considerably in
the past two months.
As
observed by the Daily at the terminal on Wednesday, nine power plants in the
southern region on Wednesday consumed nearly 12 million cubic meters of gas
from Nam Con Son Pipeline while its designed output is 22 million cubic
meters a day.
Chau
explained that in the rainy season, State utility Vietnam Electricity Group
(EVN) often intensifies purchases of power from hydropower plants to enjoy
lower prices.
He
added the gas treatment terminal often operates at full capacity in the dry
season from March to May when the output of hydropower plants declines.
Source:
VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
|
Thứ Hai, 21 tháng 10, 2013
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