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BUSINESS IN BRIEF 31/10
Bibica’s
disputes will be settled next year
Large
shareholders of local confectionery producer Bibica at a meeting of he board
of directors (BOD) last Saturday agreed not to mention the issue of changing
the firm’s charter and voting for its new BOD members, so the shareholder’s
meeting on Monday approved the points, meaning the disputes over its
management could only be clarified at next year’s meeting.
This
year’s Bibica shareholders’ meeting was finally held on Monday after being
delayed for many times with the participation of up to 122 shareholders.
Obviously, the meeting was also attended by big group shareholders like Lotte
and SSI Asset Management (SSIAM) under Saigon Securities Inc. (SSI).
What
made local media and small shareholders surprised was an announcement that
the content on revising the firm’s charter and the voting of new BOD members
as stated in the document for the meeting did not need to be approved.
That
is because these two issues were the key elements affecting the situation of
Bibica following a series of hot arguments between Lotte and the board of
management of Bibica in recent times.
Bibica’s
management wants to keep the current charter and the board of management
structure unchanged with three persons out of five BOD members being
Vietnamese. However, Lotte wants to change the charter and elect new BOD
members as the two representatives it had appointed to the BOD are going to
finish their terms.
Speaking
with local media during the tea break of the shareholders’ meeting, Truong
Phu Chien, CEO of Bibica Corporation, said delaying the two important
contents at this meeting would mean related sides would continue considering
and reaching an agreement on the issues in the next meetings.
Furthermore,
as the involved parties have failed to recommend good candidates to the BOD,
they agreed to delay the voting plan until the next meeting. Until then, the
two members of Lotte will still continue holding their present positions in
the BOD, he added.
Vinaconex
sells debts in Cam Pha Cement
Viet
Nam Construction and Import-Export Joint Stock Company (Vinaconex) (VCG) has
announced on its website a recently signed contract with Viettel Group to
restructure the debt of Cam Pha Cement Joint Stock Company.
Vinaconex,
listed on Ha Noi Stock Exchange, has yet to provide more detailed information
about the contract.
Allegedly
worth US$127 million, the deal includes the sale of Cam Pha Cement's debts to
Viettel, although they remain guaranteed by Vinaconex. Vinaconex currently
owns 99.6 per cent of Cam Pha Cement Joint Stock Company's equity, equating
to VND1.99 trillion ($94.76 million). Cam Pha Cement Company had been a
financial burden on Vinaconex since going operational in 2008. Statistics
show that since then, Vinaconex has paid VND2.393 trillion ($113.95 million)
to service Cam Pha's debts, pushing Vinaconex into financial difficulty,
according to Dau Tu Chung Khoan newspaper.
Up to
2012, Cam Pha Cement Company's aggregate losses were estimated to have
reached VND1.588 trillion ($75.61 million). Withdrawing capital from Cam Pha
Cement Company is expected to help Vinaconex secure its solvency. The deal's
terms are expected to be completed within 30 days.
SBV
outlines scheme to stabilise forex, gold rates
The
State Bank of Vietnam (SBV) plans to scrutinise foreign currency and gold
trading in order to keep the forex rate stable in the last few months of the
year.
The
central bank said on Monday it had tightened market management by restricting
borrowing of foreign currencies, strictly controlling illegal forex trading
and preventing gold smuggling.
SBV
asked local branches and credit institutions to heighten forex and gold
trading management.
Economists
expected that foreign currency demand would not suddenly change and the forex
rate would remain stable at 1 per cent. Changes in the market were mainly due
to psychology, they said.
SBV
plans to analyse the macro-economy and international payment balance and take
necessary measures to stabilise the market. If sudden changes occur in the
forex market, it will assess these changes and provide information and
solutions.
SBV
will also be ready to support foreign exchange liquidity by creating policies
on interest rate and short-term liquidity in dong to stabilise the market.
Le
Quang Trung, the Vietnam International Bank's deputy general director, said
there would not be much pressure on the forex rate in the year-end months as
macro-economics factors have helped stabilise the monetary market.
Trung
said the forex rate would be changed to the maximum level of one percentage
point this quarter if monetary policies were adjusted.
He
added that the forex would exceed the amplitude of VND21,300-21,500 per US
dollar.
The
central bank said flexible monetary policies have helped curb inflation
despite a surge in foreign reserves and a large supply of dong in the
domestic market.
VN
farmers learn new ways to preserve, process farm produce
Hi-tech
use of solar energy to dry rice and fruits was among several technologies
presented to farmers and other stakeholders at a two-day seminar that opened
in Long An Province yesterday (October 28).
The
seminar, titled "Post-harvest Maintenance and Processing of Farm Produce
in
Several
advanced technologies and methods to mprove post-harvest maintenance and
processing of farm produce in
The
seminar also informed the farmers of relevant EU regulations on the use of
plant protection chemicals, packaging, and cultivation of safe vegetables.
The
seminar also discusses future co-operation plans between the farmers'
associations of
The
deputy chairman of Viet Nam Farmers' Association, Leu Vu Dieu, said he hoped
that both Government and non-government organisations from
He
asked the German Farmers' Association in particular to help their Vietnamese
counterparts to build a model for preserving and processing farm produce to
meet EU standards so as to promote export of
Tienphong
Bank offers loan package
TienPhong
Bank has offered flexible choices for consumers with preferential lending
rates.
From
now until November 12, individual customers can opt for a lending package
with an interest rate of zero per cent for the first month and 12 per cent
annually in the subsequent 11 months. Customers can also choose to pay an
interest rate of 8.8 per cent for the first six months and a floating rate in
the next six months.
VPBank
gets PCI DSS certification
VPBank
has become the first bank in
The
standard was developed by the founding payment brands MasterCard Worldwide,
Visa International, American Express, Discover Financial Services and JCB to
help facilitate the broad adoption of consistent data security measures on a
global basis.
Suresh
Dadlani , Control Case's director, said PCI DSS was a strict standard with
several technical requirements.
The
Nhan Hoa Pomelo Wine Company in Bien Hoa City of Dong Nai Southern Province
has exported around 10,000 litres of grapefruit wine to
According
to Nguyen Thanh Nhan, director of Nhan Hoa Grapefruit Wine Company, the firm
has exported about 15,000 grapefruits to
Korean
businesses eye opportunities
Sixteen
South Korean companies which supply the Samsung Heavy Industries made a
working visit seeking business opportunities in
Chelhwa
Jung, director of purchasing at Samsung Heavy Industries, said the purpose of
the working visit was to introduce products relating to shipbuilding, oil rig
construction and support equipment from
ACE
opens
ACE Life
Insurance Co Ltd, part of the ACE Group which is a global leader in insurance
and reinsurance, has announced the establishment of its first fund management
company in
A full
licence was granted for the ACE Life Fund Management Company (ACE Life FMC)
by the State Securities Commission of Viet Nam on Monday.
Finalisation
arrived three months after the company received approval in principle for its
establishment during the visit of President Truong Tan Sang to the
Nokia
and FPT ink agreement
A
Memorandum of Understanding (MOU) between Nokia Corporation and FPT
Corporation was signed on Monday, creating new prospects for cooperation
between the two companies.
The
signing ceremony was attended by Stephen Elop, Executive Vice President,
Devices and Services of Nokia Corporation, Truong Gia Binh, Chairman of FPT
Corporation and Bui Quang Ngoc, CEO of FPT Corporation.
Nokia
and FPT also agreed to jointly promote the development of mobile applications
for the Windows phone in
In
particular, Nokia and FPT together will develop Windows phone mobile
applications for use in the public and private sectors; adapting or localising
global applications for use in
In the
last few months of the year,
Thai
Van Re, director of the city's Planning and Investment Department, said
October's retail sales and services turnover had reached VND52.2 trillion
(US$2.5 billion) of 12.5 per cent.
Total
retail sales and services turnover of the first 10 months of the year is
estimated to bet over VND493 billion (nearly $23.5 million), up by 12.2 per
cent over last year.
However,
the city's export turnover of $2.3 billion was down by 16.5 per cent compared
with the same period last year, while its imports remained at $2.3 billion.
The
city's first 10 months showed that exports reached $21.76 billion, a
year-on-year decrease of 6.8 per cent. Major export staples seeing decreases
included rice, coffee, seafood and footwear.
Exports
of raw materials and semi-processed goods (such as footwear) and the low
added values of other exported goods (such as farm produce and seafood) were
the reasons behind the decrease in this year's export turnover.
The
struggling global economy has also affected Viet
Dao
Thi Huong Lan, director of the city's Finance Department, said total revenues
of the city's State coffers in the first 10 months reached VND186.5 trillion
(nearly $8.9 billion), accounting for 78.8 per cent of the year's target, and
a year-on-year increase of 8.3 per cent.
Lan
said the target total revenue set by the central government for
According
to Tran Anh Tuan from the HCM City Institute for Research and Development,
the city attained industrial growth rate of 5.9 per cent in the first 10
months of 2013, but the growth rates of the four major industrial sectors
were only 5.5 per cent.
The
low growth rate of 2.9 per cent attained by the city's electronics industry
was due to low purchasing power, and the 4.7 per cent growth rate of the
city's mechanics sector was caused by the low competitiveness of the
industry.
Meanwhile,
the transportation and tourism sectors attained high growth rates, indicating
the city's efforts to re-structure its economy, said Tuan.
He
asked the city authority to give more attention to the stabilisation of
prices of essential goods, to speed up disbursements for investment projects
in the city, and to better link re-structuring banks and enterprises and
public investments.
Commercial
banks given operational guidance
The
State Bank of Vietnam (SBV) issued Circular 21/2013/TT-NHNN on the
operational network of commercial banks on 9 September 2013.
The
Circular regulates the procedures for establishment, change of name, change
of location, termination of operation, and dissolution of domestic branches,
transaction offices, representative offices, professional units and overseas
branches, representative offices or Vietnamese commercial banks abroad. The
Circular has more specific and tight provisions to govern the operational
network of commercial banks as compared with the previous provisions. Some
major provisions are listed below.
No
more transaction departments, saving deposit funds and transaction places
The
commercial bank is required to convert its transaction departments into
branches, and saving deposit funds and transaction places into transaction
offices on the basis of meeting requirements of the Circular within 24 months
after the effectiveness of the Circular. If the commercial bank does not
convert them, the commercial bank must terminate their operations.
Authority
of the SBV Governor
Under
the Circular, in conformity with the objectives for operating the monetary
policy from time to time, the SBV Governor has authority to approve or not
approve of establishment, termination of operation or dissolution of a
domestic branch, transaction office, representative office or professional
unit, or establishment of an overseas branch, representative office or
Vietnamese commercial banks abroad. The SBV Governor can authorize directors
of State Bank branches to approve or not approve of the followings of
commercial banks:
1.
Change of name, change of location of the domestic branch or transaction
office within the locality;
2.
Termination of operation of the transaction office within the locality (in
case of voluntary termination of operation);
3.
Change of the branch which manages a transaction office within the locality;
4.
Satisfaction of conditions to open operation of the domestic branch or
transaction office within the locality.
In
some specific cases, the SBV Governor will consider a request of the
commercial bank to establish a domestic branch, transaction office,
representative office, professional unit, or overseas branch, representative
office or Vietnamese commercial banks abroad for serving the objectives of
developing the economy, society, politics, national security and defense,
diplomacy, and operating the monetary policy from time to time, in compliance
with the Circular and in conformity with actual conditions.
Tightening
conditions to establish operational units of commercial banks
One of
the conditions for the commercial bank to establish a domestic branch,
transaction office, overseas branch or Vietnamese commercial banks abroad is
that its bad debts ratio over total debts on 31 December of the year
immediately preceding the year of the request must not exceed 3 per cent or
another ratio determined by the SBV Governor from time to time. (Decision
13/2008/QD-NHNN of 29 April 2008 only provides a ratio of bad debts over
total debts less than 3 per cent at the time of the request of opening a
domestic transaction department, branch or overseas branch, representative
office). The commercial bank is permitted to establish a maximum of 10
branches in each inner Ha Noi or
Additionally,
the commercial bank which has been operating for less than 12 months (from
the opening day until the request time) is only permitted to establish a
maximum of three branches. The branches must not be within the same province
or city under central authority. If the commercial bank has been operating
for 12 months or more (from the opening day until the request time), it is
only permitted to establish a maximum of five branches within one financial
year.
The
commercial bank which terminates the operation of its branches in inner Ha
Noi or
To
establish an overseas branch or Vietnamese commercial banks abroad, the commercial
bank must have total assets of VND100,000 billion or more in accordance with
its audited consolidated financial statements on 31 December of the year
immediately preceding the year of request.
This
Circular takes effect on 23 October 2013 and replaces the SBV Governor
Decision 13/2008/QD-NHNN on the operational network of commercial banks.
Bilateral
trade between
During
a business conference held in Ha Noi yesterday, Dung emphasised the
importance of drawing up a specific action plan with the aim of fostering
trade relations between two business communities.
Over
the past few years, two-way trade reached US$70-80 million annually. To date,
Bulgarian companies have pumped $30 million into seven projects in
In
order to capitalise on both countries' great business potential, the two
sides should continue to perfect mechanisms and policies to remove all
administrative barriers, according to Aleksandar Aleksandrov from the
Bulgarian Embassy in
Improving
the efficiency of the two countries' trade and investment programmes was also
necessary, he said, suggesting the establishment of joint-venture projects in
several sectors such as agriculture, industry and transport would open up
anew for the bilateral relationship.
Chairman
of the Bulgarian Chamber of Commerce and Industry Tsevetan Simeonov confirmed
that the 30 Bulgarian companies attending the Vietnamese trade event,
specialising in automotives, construction, energy, food, agricultural
products, hotels and tourism were willing to establish long-term partnerships
with their Vietnamese counterparts.
Connecting
Vietnamese and Japanese businesses
The
Vietnam Chamber of Commerce and Industry (VCCI) organized an October 29 meeting
in
VCCI
President Vu Tien Loc noted the two countries’ ever-increasing economic
cooperation, cementing
In the
first ten months of this year, Japanese businesses poured nearly US$5 billion
into
Loc
said the VCCI and its Japanese partners are eager to serve as a bridge
linking the business communities of both nations.
Japan-Mekong
Business Committee President Kohei Watanabe passed on the Japan Chamber of
Commerce and Industry’s enthusiasm for the Vietnamese market and its
intentions to facilitate Japanese business delegation surveys of the
Vietnamese business environment.
Japanese
enterprises hopes
Japanese
businesses are currently rearranging their favoured investment destinations,
a restructuring that could help satisfy
Cooperation
with
Deputy
Industry and Trade Minister Tran Tuan Anh described the event as part of an
annual policy dialogue programme.
Tran
Huu Linh, head of the Ministry of Industry and Trade’s (MoIT) E-commerce and
Information Technology Agency, said the two countries’ e-commerce cooperation
has reaped remarkable results in recent years.
The
MoIT instructed the Agency to host the biennial conference in recognition of
this. This year’s event was held on its largest scale yet, attracting
participation from relevant ministries, agencies, and prestigious e-commerce
experts.
Linh
said the policy dialogues have helped Vietnamese managers, researchers, and
authorities learn more about the e-commerce infrastructure required for
the Vietnamese industry’s successful international integration. It has also
assisted with policy formulation for facilitating e-commerce’s development.
The
seminar discussed issues including e-commerce and the law, e-commerce and
mobile devices, e-commerce and tourism, and e-commerce’s distribution
challenges.
Japanese
experts also shared their experience in creating new services and adding
value to existing e-commerce systems.
They
emphasised how their attempts at encouraging the private sector to embrace
e-commerce are useful lessons for
Ca
Mau hosts seafood trade fair
Nearly
200 domestic businesses are showcasing their products at the 2013 Mekong
Seafood Trade Fair in Ca Mau city as part of the national trade promotion
programme.
The
event, the largest of its kind in the southernmost
This
is a good opportunity for local firms to popularise their products at over
400 pavilions as well as promote trade and investment cooperation in the
country and the Mekong Delta in particular.
Manufacturers
will help local farmers promptly access and apply the latest machineries and
science-technology in agricultural production.
Many
discount schemes will be launched during the event to change the local habit
of choosing foreign products, and buy high-quality Vietnamese goods instead.
Prestigious
domestic companies and enterprises are invited to the fair with the aim of
responding to the “Vietnamese people use Vietnamese goods” campaign, said
Director of the Trade, Tourism and Investment Promotion Centre Tran Van Bo.
State
Treasury plans more market-friendly manoeuvres
The
State Treasury will carry out several new measures in order to create an
impetus for capital mobilisation, according to the Viet Nam Financial Times.
The
paper quoted Tran Minh Hang, deputy general director of the treasury, as
saying that in the first six months of the year, more than VND124.331 billion
(US$5.9 million) had been raised through the issue of government bonds.
By
late September, a total of VND145.812 billion ($6.9 million) had been
mobilised, representing 108 per cent of the figure recorded in 2012.
These
figures are seen as positive, helping ease pressure on the State Budget and
partly meeting the Government's capital demand for spending and development
investments.
Hang
said the positive results were made possible by increased economic stability
with growth rate and inflation maintained at reasonable levels.
These
changes helped improve investors' confidence in the government bond market
and facilitated capital mobilisation, she said.
Hang
also said that mobilisation is likely to be slower in the remaining months of
the year.
Since
the third quarter, many tenders for government bonds did not generate
expected results and there were even instances of failure, she said.
She
explained that interest yielded by government bonds were no longer attractive
to investors. In addition, recent fluctuations in the exchange rate and a
tendency among foreign investors to withdraw capital from new markets
including
Furthermore,
commercial banks, which have always been customers of bonds when other
investment channels prove less profitable or loss-making, were also short of
capital.
With
production and service industries entering the year's peak season,
enterprises were increasing their borrowings from banks, which means that the
latter did not have much capital left to invest in government bonds, Hang
said.
To
improve the situation, the State Treasury announced early this month a
multi-pronged plan to mobilise VND25.2 trillion ($1.94 billion) in the fourth
quarter by issuing bonds with terms from less than one year to 10 or 15
years.
Under
the scheme, the agency would increase the frequency of issuing bonds and
treasury bills.
In
addition to issuing bonds with terms of between two and 10 years, it would
issue treasury bills that would mature in 26 weeks.
The
short and long term bonds aim to mobilise all idle capital sources from
banks, insurance companies and investment funds.
The
treasury would also organise regular meetings with investors to assess real
demand and provide the market with proper products.
Flexibly
adjusting the rate of government bonds in ways that would match market
fluctuations and the central bank's monetary policies is another important
measure that will be taken in the capital mobilisation effort.
The
office also said it would continue restructuring the catalogue of listed
bonds in line with the approved plan to improve liquidity in the bond market.
IIP
fails to hit former heights due to economy
The
index of industrial production (IIP) saw a 5.4 per cent year-on-year increase
in the January-October period, according to the General Statistics Office
(GSO).
In
October alone, the index edged up an estimated 5.9 per cent compared to the
same period last year.
GSO
experts said industrial production did not bounce back strongly due to global
economic turmoil. IIP growth in the first 10 months this year was much lower
than in previous years (9.2 per cent in 2011 and 5.6 per cent in 2012).
They
attributed the low growth to high inventory. The volume of stockpiled goods
in the processing and manufacturing industry hit 9.7 per cent early this
month.
Industries
with higher inventory include motorcycle production (up 168.8 per cent),
paper production (up 101.5 per cent), electronic home appliances (up 100.9
per cent), sugar processing (up 98.4 per cent), pharmaceutical chemicals (up
54.8 per cent) and steel production (up 18.4 per cent).
However,
some industries saw consumption grow, such as urea (up 27 per cent), powdered
milk (up 13.8 per cent), refined sugar (up 12.9 per cent), ready-made cloth
(up 11.4 per cent), processed seafood (up 8.6 per cent) and automobile
assembly (up 13.4 per cent).
Can
Tho pours investment into seafood sector
Can
Tho plans to double the area devoted to aquatic cultivation to 26,000ha by
2020, according to the city's Department of Agriculture and Rural
Development.
The
target within seven years is a total output of 355,000 tonnes a year and
export of 160,000 tonnes of seafood products worth US$1 billion.
Cultivation
areas have been divided into two major zones, one in two districts and on
several islets on the
It
will specialise in blue-legged prawns, tra fish and freshwater fish on a
total area of 16,000ha.
The
other zone, located in several districts, will breed tra and other fresh
water fish in a total area of 10,000ha.
Can
Tho authorities have also decided to rotate rice and shrimp cultivation on
the same paddy field, or rice and fish.
To
meet local demand, the city will set up several aquatic breeding centres that
will supply 1-2 billion fries of various aquatic species, including tra and
basa fish, anabas, bighead catfish and blue-legged prawns.
The
city will also apply advanced farming techniques, and promote Good
Agricultural Practises and other food safety hygiene standards in aquatic
cultivation to communes.
By
2020, Can Tho expects to have at least 33 seafood processors with a total
capacity of 192,000 tonnes of seafood a year.
Can
Tho now breeds tra fish and blue-legged spawns on 1,700ha in Vinh Thanh, Co
Do, O Mon and Thot Not districts.
This
year, the city's Aquatic Cultivation Sub-departments implemented a pilot
project to raise male blue-legged prawns on a paddy field in O Mon District's
Thoi Hoa Ward.
After
six months of raising male blue-legged prawns, Nguyen Huu Huynh, the paddy
field's farmer, earned a profit of VND40million per hectare.
The
model of farming one crop of rice and one crop of blue-legged prawns on a
same paddy field per year will help save costs and have higher yields and
fewer diseases, according to Huynh.
The
pilot model also protects the environment as there is no use of chemicals or
antibiotics, he said.
"The
development of this model will help farmers increase their income," he
said.
New
Zealand to export potatoes to Vietnam
Radio
Mehta
said
Necessary
procedures for potato exports to
The economic
cooperation forum between
At the
forum policy makers will meet to identify specific areas of economic
cooperation and discuss measures to improve relations
The
Middle East-North African region stretches from
With a
total population of more than 520 million, the region has great potential for
economic development to meet the growing demand for diversified products.
In
recent years, the traditional ties of friendship and cooperation between
Its
two-way trade turnover in 2012 reached US$7.4 billion, up 87% from 10 years
ago.
Many
Middle East businesses have invested in big projects in
Vietnamese
businesses have also invested in some projects in Middle East – North African
region, such as the National Oil and Gas Group in
Around
26,000 Vietnamese workers are working in infrastructure development projects
in the region.
Russian
businesses expand cooperation in Vietnam
Leading
Russian businesses are making a fact-finding trip to
They
will work with the National Assembly Committee on Science, Technology and
Environment, make a presentation at Hanoi-based at Vietnam-Russia Tropical
Centre introducing Russian operations in
The
event provides an excellent opportunity for the two sides to share experience
and introduce their latest achievements.
At the
press conference in
During
their trip, Russian business representatives will work on the long-term
project "Russia-Vietnam: the new economy," and are willing to
cooperate with
At the
press briefing, Russian companies introduced their potential areas of
strength for cooperation with Vietnamese partners, including electrical
engineering, automation, diagnostic medicines production, information
technology, detergents, electrical appliances, physical protection systems,
drilling, and new technology products for human health.
Steel
market remains stagnant
Steel
sale is yet to recover on the local market, despite domestic steel producers'
efforts to boost consumption coinciding with the start of the building
season, according to the Viet Nam Steel Association (VSA).
The
association said building steel sales in September declined 3.87 per cent
against August and 2.29 per cent year-on-year to 353,792 tonnes.
Production
in September also fell 9.46 per cent from August and 7.43 per cent against
September 2012 to 347,780 tonnes.
However,
in the first nine months of this year, the steel production reached 3.36
million tonnes, a marginal increase of 0.02 per cent against the same period
last year, while consumption rose 2.46 per cent to 3.38 million tonnes.
The
steel inventory reached 317,504 tonnes in the first nine months of this year,
VSA figures showed, adding the inventory remained at a normal rate.
Producers
had a steel ingot inventory of 520,000 tonnes, which was expected to meet
production demand in the coming months.
Meanwhile,
the selling price of building steel in the north was reduced by
VND100,000-350,000 to VND12.24-12.95 million per tonne in September, as
producers sought to counter low demand, according to the domestic market
management team under the Ministry of Industry and Trade.
But
the domestic market still sits precariously at the building season start,
because increased electric prices have pushed up steel production costs,
making it even more difficult for suppliers to remain competitive.
The
association said the building season got off to a slow start in September, as
many storms and floods hampered projects.
The
team expected steel prices to remain stable, while production and consumption
would also see little change in months to come.
The
association also reported that
More
encouragingly,
The
surge in exports had helped reduce consumption pressure on local steel
producers, the association said.
Fuel
traders told to keep prices steady
The
Ministry of Finance has told fuel wholesalers to limit their use of the price
stabilisation fund from VND300 to VND200 per litre.
The
decision was announced in Dispatch No14239/BTC-QLG on fuel price management,
in which the ministry said it would keep fuel prices, import tariffs and
deductions for the price stabilization fund unchanged.
Currently,
the reference price of gasoline is VND24,084 per litre, while the retail
price is around VND23,880 per litre.
Similarly,
each litre of diesel and kerosene is now sold for VND22,310 and VND22,020,
while their reference prices are VND22,902 and VND22,934 respectively.
For
diesel, the ministry has permitted fuel wholesalers to continue earning
commissions of VND100 per litre and charging VND300 per litre to the price
stabilisation fund, to limit price increases.
Petrol
hubs selling kerosene are expected to retain earnings of VND100 per litre and
reduce the use of the price stabilisation fund to VND700 from VND800.
For
mazut, traders will continue to take VND200 per litre from the fund.
The
price stabilisation fund was reported to be sitting at VND58.6 billion
(US$2.7 million) at the end of September, after rising over VND 3billion
($141,911), the Ministry of Finance stated on its website.
According
to the latest statistics, of the 12 petrol dealers who contributed to the
fund, six of them had a positive fund balance. Petrolimex's September balance
stayed over VND205 billion ($9.7 million), while the Military Petroleum Corporation
with over VND180 billion.
Meanwhile,
as of September 30, PVOil reported a negative fund balance of more than
VND209 billion ($9.88 million), while Petec Trading & Investment
Corporation also saw a loss of over VND145 billion ($6.86 million).
Recently,
Minister of Finance Dinh Tien Dung stated that the ministry would publish
data on a quarterly basis rather than each month, to minimise costs to
relevant agencies.
VN
timber exporters enhance growth outlook
Earnings
from wood exports are predicted to exceed US$3.77 billion for the first nine
months of this year, up 12 per cent on 2012 figures, according to the
Ministry of Agriculture and Rural Development (MARD).
Wood
produce saw strong growth in shipments made to the US, South Korea, Japan and
China; driven by demand increases in most countries; including by 7.8 per
cent in the US, 17.1 per cent in China, 20.3 per cent in Japan and 49 per
cent in South Korea.
The
Wood
exports are expected to hit $5.5 billion this year, reflecting a growth rate
between 10-15 per cent, while
Nguyen
Ton Quyen, General Secretary of Vietforest, attributed the increase to the
global economic recovery and importers shifting orders from China to Viet Nam
due to lower wages and the need hedge risk against price volatilities.
Quyen
told Vietnam Economic Times that orders had increased by 20-30 per cent this
year.
Since
early August, wood exporters were inundated with orders from foreign
importers, with many exporters even negotiating orders for 2014. Many are
believed to be running at full capacity to make deliveries on time, with many
taking on extra staff to meet demand.
According
to the Vietnamese Customs agency, wood export turnover from FDI businesses
accounted for 64 per cent of the industry's total export turnover, while
growth in the sector's FDI had been aided by strong financial support, access
to local partners and distribution networks in foreign countries enabling
fast networking between buyers and sellers.
However,
foreign invested companies have been far more successful in reaping the gains
of the surge in demand for exported wood products. Statistics showed FDI
businesses were able to rent local workshops and warehouses of local wood
processors to expedite orders to the
Meanwhile,
local processors had been hampered by a shortage of finance, trained human
resources and raw materials. While Vietnamese timber is still well regarded
in foreign markets and contributes significantly to export turnover, high-end
manufacturing accounted for a minority of Vietnamese produce.
Additionally,
the country's $4.6 billion in timber exports still pales in comparison to
nearly $11 billion
According
to the Viet Nam Administration of Forestry, the domestic wood processing
sector saw consistent annual growth of 42 per cent between 2005 and 2010.
This astonishing growth has continued, holding at 20-23 per cent during the
last three years. Meanwhile, the scope of exports has increased dramatically,
with a global penetration of more than 100 countries and territories.
Polaris
plant back on track after long delay
Taiwanese
investor Polaris Kty International Vietnam will continue construction at its
delayed $1.8 billion complex in the central Ha Tinh province's Ky Anh
district to meet its 2018 deadline.
The
information was revealed to VIR last week by Ho Anh Tuan, head of Management
Board of Vung Ang Economic Zone. Tuan said that the management board had sent
a document to ask Polaris to speed progress on the project. The management
board and the investor would soon meet to solve site clearance and
compensation issues.
According
to Tuan, the huge project needed gigantic amounts of compensation that could
not be solved overnight, and it was not easy to persuade some local residents
to hand over their land.
Ngo
Dinh Van, deputy head of Management Board of Vung Ang Economic Zone added
that so far, the management board had poured VND70 billion ($3.4 million)
into compensation and site clearance costs and had asked Polaris to advance
compensation payments, but the investor had not responded.
In
July, Polaris asked for help from Ha Tinh Provincial People's Committee
because of substantial delays caused by the land clearance process. The
province asked the management board to report on the issue by August 20, Van
from Management Board of Vung Ang Economic Zone confirmed.
According
to the investor, only 50 hectares of the total 430 hectares had been cleared.
Polaris
added that the slow land clearance would affect the rate of return on the
project.
However,
Van explained that the investor had only finished the investment procedures
for just 50 hectares to develop the first phase, which included a two star
hotel complex, high-rise buildings, villas and agricultural facilities.
However, so far, only the hotel was under construction.
Van
said that a withdrawal of the investment certificate remained a possibility
because the investor may lack the financial capacity to pursue the project.
Two
months ago, the Taiwanese investor was accused of lacking sufficient capital
to implement the project, an accusation which the provincial people’s
committee backed.
The
Tau Voi Lake Tourism and Services project began construction in August 2010,
and was Polaris Kty International’s first investment project in
Located
over 427 hectares in Ky Thinh and Ky Trinh commune, Ky Anh district, the
project includes two, three and five star hotels, golf course, farm,
amusement park, sports facilities, lake and entertainment facilities,
shopping and a convention centre. The project was expected to finish in 2018.
The
investor has earmarked 200 hectares to develop agricultural produce, such as
clean vegetables and chicken farming. It will also manufacture high-tech
agriculture products to serve the Vung Ang Economic Zone and other
surrounding customers.
Around
$300 million will be invested in the first phase, which will be used to
construct a two star hotel and high-rise buildings and housing for staff
working in companies in the area.
Social
housing credit plan plagued by slow disbursement
A
number of obstacles need to be removed to accelerate the disbursement of a
$1.4 billion government preferential credit package to low-income homebuyers
and corporate customers developing social housing projects.
According
to a source from state giant Vietcombank’s (VCB) Ho Chi Minh City branch, it
just appraised 24 loans for individual customers valued at $895,000, of which
$514,000 has been disbursed. No corporate customers have got loans under this
credit package from the branch.
VCB
executives said slow disbursement is due to scarce social housing.
Housing
for low-income earners has been a prevalent issue in
Also
hindering the credit package is that to be eligible people need to prove that
they have no property ownership and get this signed off on by their local
communal and ward authorities, who have been tentative in vouching for
applicants.
Another
problem is that notaries have not signed off on the homes as asset collateral
for the loan. Banks are therefore worried about credit defaults.
Deputy
director of the State Bank of
The
reasons above are why only $45 million of the $1.4 billion programme has thus
far been disbursed nationwide, after half a year running. In the southern hub
only a million has been released, and solely to individual applicants.
Minh
said that the credit package was using future houses and/or properties as
collateral for people to access preferential loans. Many notaries are
refusing to give homebuyers the necessary paperwork as they say under Housing
Law’s Clause 91 home loans first need housing certificates.
Another
issue is that low income borrowers are finding it difficult to prove they
will have a stable income necessary for repayment.
Deputy
chairman of the Ho Chi Minh City Labour Federation Nguyen Viet Cuong said
averaged workers’ monthly income at around $140-$190 makes the principal plus
interest of a 10-year loan, even at a preferential rate of 6 per cent per
year, very difficult to pay.
Cuong
proposed extending the loan duration to 20-25 years.
Regarding
corporate customers, deputy head of Transaction Bureau II under the Bank for
Investment and Development of Vietnam (BIDV) Pham The Nguyen said businesses
would be eager to join the credit programme if the lending conditions
changed.
Current
regulations require that programme participants first set aside a land fund
to ensure construction deadlines are met and records must be sent to the
Ministry of Construction for approval before banks will release funds.
“As of
now, only one of nine firms supposedly involved in the programme has records
sent to the MoC,” said Nguyen.
Head
of the Economic and Budget Committee under Ho Chi Minh City People’s Council
Pham Van Dong said the city had cleared space for social housing, but
developers needed to evaluate their locations carefully to attract customers.
Dong
also proposed relevant agencies loosen lending conditions to expand access to
individual and corporate customers.
Vietinbank
funds tunnel project in central region
The
Deo Ca Investment JSC and the Bank for Industry and Trade (Vietinbank) have
inked a credit contract worth over 5,400 billion VND (253.8 million USD) for
the construction of a tunnel running through the Ca pass, which links the two
central provinces of Phu Yen and Khanh Hoa along National Highway 1.
According
to Ho Minh Hoang, Director of the Deo Ca Investment JSC, the 3,900m tunnel
with a total investment of 6,500 billion VND (305.5 million USD) is a key
project which has significant political, socio-economic and security
meanings.
The
project is expected to help ease traffic congestion and reduce accident in
National Highway 1, while contributing to developing the economic, industrial
and tourism hubs in the central region and Phu Yen and Khanh Hoa provinces in
particular.
Addressing
the signing ceremony, Transport Minister Dinh La Thang urged the management
board to exert more efforts to ensure the project progress, so that the
tunnel can become operational by 2016, keeping pace with other projects on expanding
National Highway 1, the main North-South route in the country.
Chairman
of Vietinbank Board of Directors Pham Huy Hung affirmed that the bank will do
it utmost to ensure the timely disbursement and help the project be completed
as scheduled.-
Source:
VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
|
Thứ Tư, 30 tháng 10, 2013
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