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BUSINESS IN BRIEF 5/10
NFSC
assesses Jan-Sep economic performance
Though
economic indicators showed improvements, more efforts are still needed for
attaining the 5.5% GDP growth target, according to the National Financial
Supervisory Committee (NFSC).
The
NFSC reported that economic production bounced back slowly. Inventory levels
of industrial manufacturing dropped sharply and industrial production index
constantly rose, soaring 5.4% in September. However, import growth rates of
raw materials remained modest.
Total
demand was relatively weak in which the January-September retail sales of
goods and services increased by 12.5% against the same period last year.
GDP
growth pace in Q3 was higher than forecast thanks to the Government’s efforts
to maintain macro-economic stability and prioritize inflation curbing.
Nevertheless,
the economy still faces challenges including inefficient credit freeze and
weak consumption demand which are hampering production.
In
addition, GDP growth rate relying heavily on exports poses unexpected risks
to national economic sustainability.
Thanks
to better macro-economic performance,
At
international markets, foreign investor confidence improved considerably in
which the country’s credit risk level measured by the Credit Default Swap
(CDS) was lowered from over 300 points in the same period last year to around
220 points over the previous months.
According
to the Committee, the monetary market has been improved. The liquidity of the
banking system was much better than in the previous period.
Meanwhile,
lending interest rates sometimes surged unexpectedly but usually was kept
between 3-4% in the first nine months.
Exchange
rates were also relatively stable except for small seasonal changes and are
expected to be maintained for the rest of the year as the supply and demand
would be balanced and foreign reserve would be increased.
Local
book company among top 500 Asia-Pacific retailers
The
This
is the fourth year Fahasa has received the noble award.
Launched
in 2004, the annual Asia-Pacific Top 500 Retail Awards are based on surveys
of business turnovers by Euromonitor International in 14 regional countries,
including
Fahasa
was also selected as one of top ten leading retailers in
Fahasa
General Director Pham Minh Thuan said developing reading culture is Fahasa’s
top political and economic task.
The
book company launched promotional programs across the country with total
discounts of VND2 billion.
Despite
economic difficulty, Fahasa earned VND1,200 billion in the past nine months
and is expected to raise the figure to more than VND1,600 billion by the
year’s end.
Tuna
exports to ASEAN surge
The
volume of processed tuna, excluding canned tuna, accounted for more than 51%
of the total figure.
According
to the Vietnam Seafood Exporters and Processors (VASEP), ASEAN has become the
fourth biggest importers of Vietnamese tuna, after the
However,
not all ASEAN members import tuna from
One
reason is that Vietnamese tuna businesses are more interested in the EU
market to enjoy tax incentives than in the ASEAN market, not mention that
they are facing stronger competition from tuna exporters in neighbouring
countries.
Vietnam
has trade surplus with Germany
Of the
figure,
In the
first six months of this year, bilateral trade between the two countries
showed a year-on-year increase of 29.5% to US$3.7 billion.
Computers
and electronics, paper products, telephones and accessories, clothing and
apparel products were among key items
By
late 2012,
Ha
Giang-Yunnan cooperation promoted
Nguyen
Van Son, Vice Chairman of the Ha Giang provincial People’s Committee, said
the two sides have achieved significant progress in strengthening mutual
understanding, trust and friendship, and cooperation in all fields.
To
further boost bilateral cooperation, the two provinces will step up
investment and trade promotion for the benefit of socio-economic development
in each locality, he said.
Ha
Giang will give priority to infrastructure upgrade at the Thanh Thuy, Xi
Man-Dulong and Sam Pun-Tianpeng Border Gates.
Ha Giang’s
import-export value already reached US$352 million in 2012, a year-on-year
increase of 23 percent. Its trade turnover has hit US$350 million over the
past nine months and is expected to reach US$400 million by the end of this
year.
Singaporean
investor awarded Friendship Medal
Low
Sin Leng, Co-chairperson of the Vietnam-Singapore Industrial Park (VSIP)
Limited Company, was awarded the Friendship Medal at a ceremony in Binh Duong
province on October 2.
The
award was in recognition of Low’s contribution to
Low is
one of the Singaporean investors in the VSIP Joint Venture. The industrial
park was established under an agreement signed between the two governments to
boost
From
the first one in Binh Duong, the VSIP JV has by now built four more
industrial parks in
The
VSIP system has so far attracted over US$6.4 billion of investment and
generated jobs for 140,000 employees.
Binh
Duong province is home to a total of 2,167 FDI projects with combined capital
of US$18.2 billion.
Promoting
women’s role in economic development
Women
should be encouraged to get involved in economic development as a way to
promote gender equality and social progress.
The
statement was made by Chairman of the Vietnam Chamber of Commerce and
Industry (VCCI) Vu Tien Loc at a forum in
Loc
said the Party and State have introduced a number of policies to develop the
female business community in
The
International Labour Organisation (ILO) Country Director Gyorgy Sziraczki
said the forum will help raise women’s leadership role in business
organizations, promote gender equality and honour businesswomen’s
initiatives.
A
country cannot eliminate poverty, achieve prosperity and develop sustainably
unless women are empowered and fully engaged in economic activity, he said.
UN
Women Chief Representative in Vietnam Shoko Ishikawa said barriers should be
removed to encourage women to take part in labour market by accelerating
reform and ensuring the best working conditions and human rights for both
women and men.
Participants
at the forum discussed two main issues: creating the best possible conditions
for businesswomen to develop and empowering women in production and trading
in
Supply
chain congress attracts key experts, executives
The
Supply Chain Congress 2013 opened in
Themed
“Purchase – Production – Retail – Distribution,” the biggest annual event of
its kind in Vietnam, has attracted businesses specializing in the fields of
retail, logistics, automobiles and motorbikes, electronics, construction
materials, footwear, garments, chemicals, food, beverage, energy, pharmacy
and wood.
Throughout
the three-day congress, 60 domestic and international speakers, including
world renowned doctor John Gattoma, will present 15 reports on supply chain,
with a focus on purchase, production, retail, and logistics.
Participants
will examine issues related to management of supply chain, ranging from
purchase to distribution, helping Vietnamese businesses keep up to date with
the latest information, new techniques, real experience and effective
application methods in supply chain management across the world.
They
will touch upon important issues such as trade promotion, creation of product
value and competitive edge, purchasing opportunity and forecast, logistics
barriers to the rice industry and the recent development of the convenience
stores system in
Measures
for GDP growth in Q4
The
Ministry of Industry and Trade (MoIT) has insisted on practical measures to
boost GDP growth in the last three months of this year, with priority given
to industrial production, export value, and market stabilization.
The
MoIT expected to see higher industrial production increasing in the fourth
quarter at a year-on-year rate of 5.7%.
It
asked the industrial sector to strictly inspect its production activities and
closely cooperate with associations in helping local businesses iron out
their snags.
In
addition, it is essential to lower inventory level on the domestic market and
launch promotion programmes in both
It
also asked the industrial sector to speed up the implementation of key
projects in the support industry.
The
MoIT forecast that
The
Ministry said it is currently engaged in bilateral and multilateral
negotiations to expand market share and promote export activity. The focus
will be on implementing the already signed free trade agreements (FTAs),
exploring traditional markets, and penetrating new markets in the Middle
East, West Asia, South Asia, Africa, and
Regarding
the domestic retail market, the MoIT proposed balancing supply and demand and
stabilizing market prices. Retail sales and services in 2013 are expected to
rise 13% compared to last year’s figure.
The
Ministry stressed the need to implement promotion programmes in rural, border
and remote areas and encourage local consumers to buy made-in-Vietnam
products.
It
also requested relevant agencies to pay due attention to combating
counterfeit and low-quality products and protecting consumer rights.
Lighting
expo opens in HCM City
The
latest lighting equipment and components are on display at the LED/OLED
Lighting World Expo which opened at the Saigon Exhibition and Convention
Centre on October 2.
The
third edition of the expo has attracted 100 companies from 10 countries and territories,
including the Republic of Korea (RoK), Japan, the US, Singapore, Thailand,
China and Vietnam.
On
display are 220 booths including LED, OLED and solar energy lights, lights
for automobiles, transportation and mobile systems, brightness measurements
and others.
At the
opening ceremony, Bui Van Quyen, chief representative of the Ministry of
Science and Technology’s southern office, said the event will be a platform
for networking and exploring business opportunities, and developing local and
international partnerships.
Co-organised
by Eifec Co.Ltd and Exporum Inc, one of the leading exhibition organizers in
the RoK, the expo will finish on October 4.
ATM
card holders have $4b
ATM
card holders in
The
central bank said that overall savings were down by VND10 trillion ($454.54
million) from early June, but were higher than the last months of 2012.
By the
end of the first quarter, the amount in ATM accounts number was VND99
trillion ($4.5 billion), much higher than the VND85 trillion ($3.86 billion)
for the same period last year.
The
SBV said by the end of the second quarter, year-on-year current accounts rose
from 10 per cent to 15 per cent both in account number and value, however, no
specific comparative figures were released.
According
to the Viet Nam Card Association, nearly 20 years after being introduced,
millions of
The
central bank has taken measures to boost non-cash transactions, including a
draft decree on limiting the use of cash for large transactions which is
expected to be submitted to the Government for approval this year.
Under
the draft, individuals will not be allowed to pay for securities, houses,
land and large vehicles with cash.
Organisations
will not be allowed to use cash for transactions in real estate, securities,
aircraft, ships and cars, or transactions exceeding the limit set by the
central bank.
The
central bank is also implementing a project on non-cash payments. It hopes to
have 150,000 point of sales (POS) nationwide by 2015 compared to the present
94,000.
Hygiene
key to European trade
Negotiations
on the Sanitary and Phytosanitary Systems (SPS) play a pivotal role in
promoting free trade between
The
message was delivered at a workshop held by the Ministry of Industry and
Trade (MoIT) in Ha Noi to conceptualise the SPS for domestic enterprises.
Chief
negotiator Tran Trung Thuc said that the SPS applied by the EFTA (including
This
means exporters must meet the EU's requirements if they wish to export to the
EFTA.
According
to Thonmas Tison, an EFTA expert, the SPS contains the highest similarity
between the EFTA and the EU. When the EU ratifies, no country in the EFTA
would be allowed to reject SPS-certified products from
The
workshop introduced common regulations on the SPS that directed domestic
firms to enhance the export of meat and seafood, cereals and vegetables,
processed food and pharmaceutical products.
Since
May of this year,
Together
with FTA negotiations, the EFTA and
More
orders boost manufacturing sector
A
survey of manufacturers last month has brought positive news on the health of
the sector, according to a HSBC report released on Tuesday.
The
Purchasing Managers' Index (PMI) for September said new orders and employment
both increased at survey record rates, and there was a marked gain in foreign
sales.
There
were reports that underlying economic conditions were improving, supporting
demand and raising market activity, it said.
The
headline seasonally adjusted PMI – which is meant to provide a snapshot of
operating conditions in the manufacturing sector – rose back above the 50.0
no-change mark to 51.5.
That
was an improvement on August's 49.4 and the best reading since April 2011,
the first month for which survey data is available.
Driving
the PMI higher were new business and employment.
Growth
of new business was solid, the survey said, reflective of an improvement in
underlying demand from domestic and foreign clients.
Better
product quality and competitive pricing – with the latest survey showing a
sixth successive monthly decline in prices – also supported sales growth.
New
export business rose at a series record pace. It was the first time in four
months that an increase in new export sales had been registered.
Encouraged
by higher sales, payrolls continued to expand in the manufacturing sector.
Backlogs
of work continued to decline, marking the 18th consecutive month that work
outstanding had been cut.
Stocks
of finished goods rose slightly and manufacturers were able to add to stocks
and cope with a rise in new orders while maintaining a broadly stable level
of output.
Despite
easing from August's high, the degree to which average costs rose was again
marked and, with prices falling in line with ongoing competitive pressures,
profit margins continued to be squeezed.
Fuel,
utility, and raw material costs all rose.
Commenting
on the survey, Trinh Nguyen, the bank's
"While
we expect output to pick up in [the second half] thanks to an expected
recovery in the euro zone,
A
forum to promote economic co-operation between
Participants
reviewed the development of bilateral co-operation in recent years,
especially after the two countries established their strategic partnership.
They
discussed the acceleration of setting up a joint commission on economic
co-operation coordinated by
Speaking
at the event, Industry and Trade Deputy Minister Ho Thi Kim Thoa said a
number of Italian giants, such as the Italian national oil and gas group
(ENI), Piaggio, Ariston, Bonfiglioli and Perfetti, consider
She
expressed her belief that the joint commission will create favourable
conditions for the two sides to consult, exchange and complete the legal
framework and investment and co-operation incentives.
During
the forum, Italian businesses were provided with updated information on the
investment environment in
After
the forum, the participants had a round-table discussion on topics related to
the co-operation potential in the fields of energy and retail, distribution,
development and investment promotion plans in the industrial sector and
experience of Italian investors operating in
The
forum, organised by the Ministry of Industry and Trade (MoIT) and the
Vietnamese Embassy to
It
takes place in October in order to celebrate the 40th anniversary of Viet
Nam-Italy bilateral relations.
Unclaimed
luxury cars may be sold as abandoned goods
The
Ministry of Finance may shorten the time to seize unclaimed cars at ports in
several cities by classing them as abandoned property.
According
to the plan, the ministry will seize unclaimed cars held in ports for more
than 30 days, instead of the 90 days previously.
The
cars will be later sold publicly and the money added to the State budget.
The
ministry's General Department of Customs last month asked offices in Hai
Phong,
According
to a source close to the department, five imported luxury Lexus cars,
including a RX 350, LX 570 and GX 460F held in central
Customs
officers have been asked to carefully verify each case and report to the
General Department any evidence of smuggling.
In May
30 this year, a total of 178 used cars (mostly manufactured in 2011, 2012 and
2013) imported by overseas Vietnamese were being held at ports.
Investigations
have shown that legal ownership for these cars has not been established.
In
many cases, the owners are illegal immigrants or do not have permanent
residency in
In
several other cases, the applications for importing cars do not meet set requirements.
New
admin offence ruling
Decree
No 108/2013/ND-CP ("Decree 108") has just been issued on September
23 and replaces Decree 85/2010/ND-CP on penalties for administrative offences
in securities and securities market sector ("Decree 85"). In comparison
with Decree 85, Decree 108 includes some major changes as follows:
Decree
108 adds "forfeiture of using rights of the certificates of registration
of operation applicable to representative office, securities business
practising certificates from over 03 months to 24 months" to the main
forms of penalties.
The
rate of fine stipulated in Decree 108 is also changed: (i) the maximum rate
of fine is specified; accordingly, it shall be VND2 billion and VND1 billion,
applicable to an organisation and individual that commits an administrative
offence, respectively; (ii) along with the maximum rate of fine, Decree 108
also provides the rates of fine on the basis of percentage and multiple of
the unlawful incomes.
For
instance, the formation, verification of an application file for registration
of a public offer of securities having fabrication shall be fined from 1 per
cent to 5 per cent of the unlawful mobilised amount of money; the
organisation that conducts a public offer of securities without the
certificate of acceptance of the public offer of securities shall be fined
the amount of money that is from 01 to 05 time (s) as much as the unlawful
income. Pursuant to Decree 108, some new administrative offences are also
supplemented; for example, breaches of provisions on private placement of
shares within the territory of Viet Nam by public company and breaches of
provisions on issuing private bonds in Viet Nam; breaches of provisions on
bonds issuance in the international market, offers of securities in foreign countries
and new placement of securities to offer securities depository certificates
in foreign countries or to support the issuance of securities depository
certificates in foreign countries on the basis of the issued shares in Viet
Nam.
According
to Decree 108, the position of Head of specialised inspection group of State
Securities Commission has the same authority to impose penalties for
administrative offences as the Chief of the Inspectorate of the State
Securities Commission.
Besides,
the maximum fine that the competent persons can impose is also remarkably
increased: the Chief of the Inspectorate of the State Securities Commission
can impose a fine up to VND100 million in the case of an organisation instead
of VND70 million as previously stipulated; the Chairman of the State
Securities Commission shall have the right to impose a fine up to VND2
billion with respect to an organisation, and VND1 billion with respect to an
individual.
Provisions
on sanctions against administrative violations in the fields of price,
charge, fees and invoices management.
On
September 24, 2013, the Government issued Decree 109/2013/ND-CP to replace
Decree 106/2003/ND-CP, Decree 84/2011/ND-CP and Decree 51/2010/ND-CP Chapter
V on application of administrative fines in the field of price management,
charge, fees and invoices.
Under
this Decree, the maximum rate of fine applicable to individuals is VND150
million regarding violations in price management and VND50 million with
respect to violations in management of charge, fees and invoices. For a same
administrative violation, organisations shall be applied with a twofold fine
levels in comparison with those applied to individuals.
According
to the Decree, the time limit for sanctioning administrative violations in
the invoice domain is 01 years, in the management of price, charge and fees
is 02 years.
Regarding
administrative violations in invoice domain which lead to tax evasion, tax
fraud, lateness of tax payment, lack of tax declaration, the time limit shall
be in accordance with the tax laws.
This
Decree takes effect on 09 November 2013.
Milk
companies subject to thorough inspections
Several
ministries will cooperate to carry out an overall inspection of the baby
formula milk industry in the next few days in an attempt to control the
price.
According
to the law, dairy products are subject to the government management but food
supplements and nutritional products are not. Taking advantage of certain
loopholes, several enterprises have classified their products as food
supplements to avoid price stabilisation policies.
It was
announced on September 30 that the Ministry of Health will have to issue a
list of dairy products by October 5 so the Ministry of Finance can set up
prices for those products.
Meanwhile
the Ministry of Finance and the Ministry of Industry and Trade (MoIT) will
carry out an inspection and suitable price adjustment at milk companies for
possible price fixing. The management agencies under the MoIT are also
authorised to carry out inspections and punishment of violators.
Nguyen
Xuan Chien, deputy head of Domestic Market Department, under the MoIT, said
that this is an order from the Prime Minister after signs of price gouging
were revealed.
Speaking
on the recent problem for fuel markets after the MoIT proposed to let
wholesalers increase fuel retail prices by the maximum of 5%, Chien said this
proposal will help to develop the market mechanism. Even if the wholesalers
are allowed to raise fuel prices, they are sill under the government's
management.
Chien
also said they will lower the fuel prices in October as soon as they see the
chance.
Non-performing
loan resolution requires inter-ministerial efforts
Despite
the government's positive steps to address problems in the banking sector,
A
non-performing loan resolution can only be achieved with strong
inter-ministerial collaboration in Vietnam, the ADB said in its report.
Illustrative photo.
The
report also suggested the establishment of an inter-ministerial steering
committee for implementing banking restructuring to help this process. An NPL
resolution would allow interest rates to be lowered sustainably without
increasing inflation.
The
Update to ADB’s annual economic publication, Asian Development Outlook (ADO)
2013, which launched today, maintains the forecast for GDP growth for Vietnam
at 5.2% for 2013, and expected gradual progress in dealing with NPLs could
slightly lift growth to 5.5% next year. The inflation forecast is revised
down, from ADO 2013, to 6.5% for this year, because food price inflation has
decelerated more quickly than expected. Inflation is projected to climb to an
average of 7.2% for 2014 due to monetary easing and increased liquidity.
The
ADO Update commended the positive steps taken by the State Bank of Vietsam,
(SBV), to deal with NPLs in the banking sector; in particular the formation
of the Vietnam Asset Management Company (VAMC). The Update, however noted
that the success of VAMC could depend on other supporting legislative and
policy reforms not under the direct mandate of the SBV. The Update also
expressed concern over delays in implementation of improved loan
classification and provisioning standards.
“The
creation of VAMC is very positive but its success could depend on
strengthening the legislative framework for dealing with secured assets,
which will require strong inter-ministerial coordination and collaboration,”
said Tomoyuki Kimura, ADB Country Director for Vietnam. “Implementation of
improved loan classification and provisioning standards would have reduced
risks to the banking system and improved investor confidence.”
Despite
policy rate cuts, growth in lending was constrained by banks’ impaired
balance sheets, concerns over the financial health of borrowers, a sagging
property market, and weak demand for credit. The ADO Update suggested that
progress on an NPL resolution would allow further lowering of interest rates
and increase cash flow to productive sectors of the economy.
“Gradual
progress in resolving NPLs will improve business confidence,“ added Mr.
Kimura. “As this happens, policy stimulus, including the cuts in interest
rates this year, could gain traction in boosting credit and GDP growth.”
VAMC
sees bad debt purchase off to a good start
Vietnam
Asset Management Company (VAMC) has seen encouraging signs of its endeavor to
purchase bad debts from credit institutions, with a contract signed on
Tuesday to buy trillions of debts and many more in the days to come, a senior
executive said.
Le
Quoc Hung, vice chairman of VAMC, told the Daily in an interview that
“several contracts to buy bad debts from joint-stock banks will be signed
right this week.” He was speaking after signing a frame contract with Vietnam
Bank for Agriculture and Rural Development (Agribank) to buy the first batch
of bad debts from the latter with the book value of over VND2.4 trillion.
“After
this deal with Agribank, both sides will sign 27 sub-contracts for every
specific bad debt. And this is just the first sign, since many more deals
with other banks are being processed,” Hung told the Daily.
He
cited for example a frame contract to be inked with SCB covering bad debts
with book value amounting to hundreds of billions of Vietnam dong, another to
be signed with SHB, and one with PGBank, the last one having book value of
some VND200 billion but to be purchased at VND170 billion.
Hung
said VAMC had to screen through all the debts on offer to single out what
debts to be purchased.
For
example, for the frame contract signed with Agribank, VAMC looked through the
total amount of VND3 trillion of bad debts, and picked out only VND1.7
trillion for the agreement.
Asked
to comment on the quality of bad debts, Hung said some are really bad, but
there are also many that should not be hastily sold. “I have looked at some
debts and mortgaged assets that are really valuable once the market recovers,
so it will be regrettable if such assets are offloaded in a rush,” he said.
He
also noted that banks are changing for the better their attitude toward VAMC,
as more lenders are approaching the company with numerous offers.
“Initially,
we had to contact credit institutions, but now they are coming to us. They
are more open and cooperative, which can be seen as initial but encouraging
results,” he said.
Currently,
VAMC has received hundreds of dossiers from banks wanting to sell between 500
and 700 bad debts. “I feel assured of the target to buy back bad debts with
book value of VND30 trillion within this year.”
Commenting
on the capacity to liquidate bad debts, Hung said many international
organizations have approached VAMC in recent times to buy debts. However, the
company will not offload all such bad debts, but will retain a certain
number, then restructure and improve them to render more support to
enterprises as debtors.
Hung
likened bad debts to patients that need to be hospitalized, and what is
important is to have good doctors and good treatments.
“If
bad debts remain at VAMC like patients in hospital, that is no recovery at
all. What should be done is to improve the debts so that they can be
discharged from hospital,” he said.
As
covered in the Daily on Tuesday, bad debts at Agribank are the first
purchased by VAMC.
VAMC
will issue special bonds with the total value of over VND1.7 trillion for
this contract. Mortgaged assets in the contract have the total value of over
VND3.6 trillion.
These
debts have met conditions required by the Circular No. 19/2013 on bad debt
trading and handling, the source said.
VAMC
targets to issue VND35 trillion worth of special bonds to buy bad debts from
now to the end of this year.
Incham
cuts trade deal with Dong Thap
The
Indian Chamber of Commerce in Vietnam (Incham) will help the Mekong Delta
province of Dong Thap export its farm produce to India, according to a
memorandum of understanding (MOU) signed by both sides in HCMC last Saturday.
Under
the MOU signed at the seminar on trading and investment cooperation promotion
between Incham and Dong Thap, the province will be given supports from Incham
to export rice, fruit, tra fish and crayfish to the huge Asian market.
The
seminar was organized as an initiative of the provincial Department of
Industry and Trade with an aim to set up partnerships and joint venture ties
between businesses from the two nations. The bilateral cooperation is
expected to comprise of investment, science and technology, training and
tourism besides commodity trading and exchange.
Speaking
at the seminar, Nhi Van Khai, director of the department, called Indian
companies’ attention to key products of the province to meet import demand
from India as well as applying science and technology to create additional
values for local farm produce. Khai also proposed Incham consider
opportunities in making investments in agricultural and tourism projects in
the province.
Dong
Thap Province’s vice chairman Nguyen Van Duong at the seminar promised to
offer the highest incentives to Indian investors so that they could deploy
projects in a timely manner.
Indian
Consul General Deepak Mittal meanwhile said he was willing to support trading
and investment relationships between Indian enterprises and Dong Thap
Province. He committed to working with Incham and the provincial government
more closely to bring more Indian-invested projects to the province.
C.T
considers logistics properties
Ho Chi
Minh City property developer C.T Group’s C.T Song Than has plans to build
airport logistics property projects in its home city, Danang, and Hanoi.
The
projects are in response to the company’s already fully occupied logistics
centre in the southern Binh Duong province.
The
group identifies logistics centres as in high demand from foreign investors.
Garment firms
making major expansions
As
competition between textile and garment producers and exporters heats up,
several have invested into increasing their production lines to expand their
potential markets.
Since
early this year, Hue Textile Garment Joint Stock Company (Huegatex) has pumped
$2.3 million into machinery and equipment to diversify their production,
reported a source inside the company.
The
company expanded from eight production lines to 50 to boost their export
potential.
“Based
on our current signed orders, Huegatext envisions reaching our annual export
target of $66 million ahead of schedule,” said the company’s deputy general
director Ho Van Dien.
In the
first eight months of 2013, Saigon Garment Manufacturing Trading JSC (GMC)
marked revenues of $43.3 million with profits of $2.4 million.
“If
things continue to go smoothly, we will have completed our annual businesses
targets of $52.3 million revenue and $2.9 million profits early this year, by
mid-November,” said a company source.
GMC is
also considering hiking its production by 25 per cent in 2014.
According
to company chairman Le Quang Hung, GMC will install six more production lines
at its second-phase export garment facility in Ba Ria-Vung Tau province, and
six more at its Quang Nam plant.
By
2015, the company’s production is expected to increase by 70 per cent.
GMC’s
next benchmark is to transition from the original equipment manufacturer
(OEM) model to original design manufacturer (ODM), a value-added system that
is expected to propel the company’s revenue to $100 million by 2018.
Hoa
Tho Textile Garment JSC in Danang city in the central region is also
considering a $6.6 million injection into production capacity this year.
The
capital would go into a suit production line valued at $1.4 million, a
$950,000 garment plant, and fibre investments totalling $1.9 million, as well
as other improvements and expansions.
“To
advance our competitiveness in the coming years, increasing production and
implementing innovative technology and equipment is a must. There is growing
competition between textile clothing firms and that is pushing us to
improve,” said Hoa Tho’s general director Tran Van Pho.
Advisor
to the Vietnam Textile and Apparel Association Le Quoc An said that Vietnam
has great potential in the textile and garment industry and major world
markets held its supply capacity and garment quality in high regard.
Investors
to be allowed to decide condo areas
The
draft amended Housing Law which is now open to public comments allows project
owners to decide apartment sizes themselves instead of forcing them to adhere
to the minimum flat area in line with the prevailing regulation.
Under
the current rule, commercial apartment projects are required “to design
condos measuring at least 45 square meters a unit.” In the meantime, the draft
amended version removes the aforesaid rule, with housing developers allowed
to decide on building commercial homes with different sizes to ensure the
homes conform to the construction planning details and housing development
plans and programs that are approved besides construction criteria.
The
apartment size has been a controversial issue in recent times. Those
supporting flats with a flexible area say that the small condos would be sold
easily as their prices are affordable to many homebuyers. Meanwhile, others
argue that such a rule would ruin the zoning plan, putting higher pressure on
the projects’ infrastructure as a result.
Land
lot projects in Binh Duong find more buyers
Binh
Duong New City and the new administrative center which are almost completed
have helped property projects in Binh Duong Province become more attractive
to buyers lately.
Similar
to the apartment segment in HCMC which is offering price discounts to attract
home buyers, owners of many land lot projects in Binh Duong have also lowered
selling prices.
Over
one month ago, land lots of the ijc@vsip project in Binh Duong New City were
announced to be priced at some VND3.5 million per square meter. These land
lots have an area of 150-300 square meters each.
However,
at the launch of the project last Saturday, the project’s distributor Tac Dat
Tac Vang Joint Stock Company said that the selling price of land lots was
adjusted down to around VND3 million per square meter, or a 14% discount.
ijc@vsip
invested by Becamex IJC and VISP consists of commercial houses, shopping
center and other amenities in an area of 128 hectares.
Similarly,
Kim Oanh Real Estate Joint Stock Company is also seeking customers by
offering for sale land lots of the Ben Cat Center Point project in Ben Cat
District and next to National Highway 13.
Invested
by Becamex, BenCat Center Point covering some 55 hectares provides townhouse
land lots which are of 100-3,000 square meters each and priced from VND200
million per unit. In addition to this project, Becamex is selling land lots
of the Civilized City project.
According
to Becamex, projects with reasonable and affordable products are attractive
to customers. The firm has sold around 1,700 land lots in Binh Duong and Dong
Nai provinces.
Truong
An Duong, head of research and consultancy at Savills Vietnam, said that the
most potential housing segment in Binh Duong Province is the one for
medium-income earners.
A
research by Savills Vietnam indicated that there were 49 apartment and
villa-townhouse projects with some 11,000 apartments and land lots in Binh
Duong as of August. Those projects are mainly located in Thuan An, Di An, Thu
Dau Mot, Ben Cat and Binh Duong New City.
According
to Savills, most of the housing projects in Binh Duong Province direct at
customers who are State workers and home buyers from other provinces.
With a
population of some 1.7 million and laborers accounting for 75%, Binh Duong
Province is a potential market for property projects.
Japan-based
Tokyu is also investing in an urban area worth US$1.2 billion in Binh Duong
New City.
U.S.
urologist visits HoaLam-Shangri La Int’l Hi-tech Healthcare Park
Dr.
Shahram Gholami, a leading expert in urology surgery, visited
HoaLam-Shangrila International Hi-tech Healthcare Park before the opening of
City International Hospital, one of six hospitals in the park, on September
24.
Gholami
joined a fact-finding trip to the hospital with many government officials,
including Minister of Health Nguyen Thi Kim Tien.
Gholami
highly praised facilities and professional staff of City International
Hospital, saying that Hoa Lam-Shangri La Healthcare Co. Ltd. is a capable
developer with much experience for choosing Singapore’s Parkway Health as the
hospital manager and South Korea’s CJ Freshway as the catering service
provider.
“I
believe that City International Hospital is on the same level with big
hospitals in the world and even better than some large hospitals in
Shanghai,” Gholami said.
Gholami
also expressed hopes to become a partner of City Hospital in the mission of
serving community health. “Initially, we have offered to cooperate with City
in health check-ups and treatment. The hospital will provide testing and
scanning results so that we can join hands to bring best therapies to
patients,” he added.
International
Hi-tech Healthcare Park with a total area of 37.5 hectares is invested and
developed by Hoa Lam-Shangri La Healthcare Co. Ltd., a joint venture between
Vietnam’s Hoa Lam Corporation and Singapore’s Shangri-La Healthcare
Investment Pte Ltd.
The
project worth over US$1 billion is scheduled for completion after ten years
of construction. It consists of four components: a healthcare zone with six
hospitals offering 1,750 beds; an education and training zone; a support zone
with commercial center and office building and a public zone with hotel,
convention center and park.
Madame
Tran Thi Lam (2nd, R), chairwoman of the Members Council of Hoa Lam
Shangri-la, and Dr Shahram Gholami (1st, L)
City
International Hospital, the first hospital in the International Hi-tech
Healthcare Park to get going, welcomed first patients on September 24. With
320 patient beds, the hospital is designed as a general hospital, with major
wards like obstetrics and gynecology, pediatrics, cardiology, otolaryngology
ophthalmology and neurology etc.
Speaking
at the inauguration ceremony, Professor Tran Thi Trung Chien, former Minister
of Health and Chairwoman of the Medical Advisory Board of City International
Hospital, appreciated efforts of investors of the project in building up a
socialized health project that meet regional standards in Vietnam.
“As I
used to be the leader of the health industry, our hope was that the overload
situation at local hospitals would be reduced. The socialized healthcare
model with active participation of investors is a right choice,” Professor
Chien said.
Mr Lai
Voon Hon, General Director of Hoalam – Shangri-La Healthcare Limited
Liability Company, said that this is the first health project with
participation of Parkway Health. Within at least 10 years, Parkway Health
will not only manage the park following international standards but also join
the process of recruitment and training of health care employees to supply
high-quality manpower for the hi-tech healthcare industry in Vietnam and
regional countries.
“From
the day City International Hospital started to take patients, I believe that
a healthcare city in the International Hi-tech Healthcare Park has showed up,
making contribution to improving the community welfare system in
Vietnam,” Hon said.
Source:
VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
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Thứ Sáu, 4 tháng 10, 2013
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