BUSINESS
IN BRIEF 13/10
SBV sells out
gold at latest auction
The State Bank of
Viet Nam sold all 15,000 taels of gold offered in the 64th auction to 11
credit institutions at VND37.28-37.29 million (US$1,775-1,775.7) per tael
yesterday.
Gold prices declined
slightly by VND60,000 (nearly $3) per tael on local markets when the Saigon
Jewellery Company (SJC) posted a rate of VND37.25-37.35 million
($1,773-1,778) on its website at 3pm.
Meanwhile the
kitco.com trading floor listed the price at $1,289 per ounce, or $1,564 per
tael, leaving prices in
Since March 28, SBV,
the only gold importer in
The Viet Nam
Association of Financial Investors (VAFI) called for a special consumption
tax on gold, suggesting a rate of 20 per cent for gold and gold jewelry
purchasing.
The association said
gold and gold jewelry trading should be added to the list of products on
which consumption tax is imposed, which includes beverages, beer, cars and
automobiles, as gold and gold jewelry are also luxury goods that need to be
under control.
The tax would only be
applied to the buying side. People were encouraged to sell their gold to the
State Bank of
VAFI said this was
the only way to prevent the "goldisation" of the economy, which
refers to people's propensity to use gold instead of money.
VAFI stated that the
State Bank of
VAFI predicted its
solution would save billions, bringing another $30 billion to make the $60
billion forex reserves and improving the Vietnamese economy.
Farm expo
opens in HCMC
Agricultural products
and state-of-the-art equipment and technology for storage and agro-processing
are being showcased at the five-day Viet Nam Farm Expo at the Tan Binh
Exhibition and Convention Centre in
More than 80
enterprises with 150 booths are displaying key Vietnamese agricultural
products for export such as rice, coffee, vegetables, cashews, pepper,
seafood and rubber at the event, which opened on Thursday.
The event connects
domestic producers and enterprises as well as international importers.
It is expected to
attract 5,000 domestic and foreign enterprises, importers and distributors in
the agricultural sector from many countries, including Australia, South
Korea, Thailand, Malaysia, Singapore, the US and Indonesia.
Seminars on export markets
and updated legal regulations for export to the
Atkins seeks
to join infrastructure projects
Atkins is looking for
more opportunities to participate in projects in infrastructure and other
areas in
Alex Winchester,
regional business development and commercial director of Atkins for Asia
Pacific, said the company expected the chance to plan, design and enable
projects in Vietnam, as the country was in dire need to speed up
infrastructure development, including metro and urban rail projects in HCMC
and Hanoi as well as new airports around the country.
“We will look at all
the opportunities that are on for tender… We are exploring, discussing with
people how we can assist whether it is a metro or the new airport,”
“We need to learn the
best work that the authorities here want. We need to understand what is the
best way for us to work in order to realize their expectations,”
HCMC is making every
effort to develop metro lines with combined investment capital of billions of
U.S. dollars in order to ease traffic pressure in this economic hub of
Given
Atkins is also eyeing
other promising markets of the region, including
Atkins has opened an
office in
“All the projects are
at the concept stage. As we spoke earlier that learning how to work in a new
country means learning about the time, from one stage to another,”
SBV promotes
technology application in management
The State Bank of
Vietnam (SBV) on October 8 inaugurated and put into use a system of
collecting and processing foreign exchange transaction information in the
inter-bank foreign exchange (FX) market via the Reuters Dealing system.
The system was built
and provided by Thomson Reuters, which is the world's leading company in
providing solutions to gather, manage, store and analyse FX transaction
information, under a contract it signed with the SBV in January this year.
Based on the Reuters
Dealing electronic transaction system, which is widely used by many banks in
According to a
representative from Thomson Reuters, the system will contribute to improving
the SBV’s management, while promoting the long-term development of the
inter-bank FX market.
The SBV has applied
the system in more than 60 financial institutions that have FX transactions
with the bank. The system is expected to be used for other credit
organisations in the future.
Experts
promote sustainable aquaculture practices
Application of good
agricultural practices, or GAP, to improve quality and safety will enable
sustainable development of aquaculture, a conference heard in
The conference sought
to create a platform for stakeholders in aquaculture to share information and
seek co-operation in strengthening application of VietGap, the Vietnamese
version of GAP, and boosting sales of VietGap-certified products.
Pham Anh Tuan, the
Fisheries General Department's deputy general director, said rapid
development of the aquaculture industry in the last few years has led to
environmental pollution and disease outbreaks, threatening the industry's
development.
Consumers nowadays
not only demand quality products but are also concerned about how they are
produced, he told the conference, organised by the General Department of
Fisheries and Metro Cash&Carry Viet Nam.
"Like other
aquaculture certificates such as GlobalGap and ASC, VietGap certification
also covers environmental protection, food hygiene and safety, social
responsibility, and product origin to ensure our aquaculture industry can
produce a lot of fish and shrimp, but do not have an adverse impact on the
environment and can easily trace product origins."
It would help
Vietnamese aquaculture products gain wider acceptance in both domestic and
international markets, he said.
Nhu Van Can, deputy
director of the Department of Aquaculture, said the country's good
agricultural practices focus on inspection of on-farm production and inputs
to raise awareness of standards among producers and develop brands for
Vietnamese aquaculture products.
When farmers adopt
VietGap they can easily upgrade to other certificates required by import
countries, he pointed out.
Under the
Government's policy on VietGap development in aquaculture, the country would
foster its application in breeding of key export items like tra fish, tiger
prawn, and white-leg shrimp, he said.
Government agencies
are also working to find more markets that accept VietGap-certified products,
he stated.
But he admitted that
it is not easy to popularise VietGap among aquaculturists.
Many participants
said farmers are reluctant to adopt the safe production method because they
think it is expensive and makes them uncompetitive.
Tuan said adoption of
VietGap standards may cause high production costs in the initial stage, but
in the long run it helps reduce costs and improve the quality and
competitiveness of Vietnamese goods.
Adopting the standards
helps farmers sell their produce more easily and significantly cut costs
since fish contract fewer diseases, he explained.
Philippe Bacac,
chairman and managing director of Metro in
The programme aims to
raise productivity and incomes for farmers while securing the sustainability
of both the fisheries industry and the environment, he said.
Under the programme,
since 2011 Metro has worked with farmers in the Cuu Long (
Truong Dinh Hoe,
general secretary of the Viet Nam Association of Seafood Exporters and
Processors, said: "Most seafood processing firms have good food safety
control systems. We need to focus more on checking the pre-processing stage
to ensure sustainable development ."
APEC urged to
build enterprise support centre
The APEC Business
Advisory Council (ABAC) has called on APEC to set up a centre supporting
small, micro and medium-sized enterprises (SMMEs) in the region to promote
economic development.
The recommendation
came following ABAC’s two-day meeting in
The centre will use
advanced technology to facilitate trade and ensure the efficiency of
e-commerce system.
Vice Chairman for
APEC Small Medium Enterprises Entrepreneurs, Erwin Aksa, stressed that SMEs
had played an important role in promoting regional and global economic growth
in the future.
ABAC will also
propose the drafting of a policy that guarantees SMEs access to capital sources,
especially Public Business Credit, he added
Meanwhile, Chairman
of the ABAC SMME Working Group, Juan Raffo, said it is necessary to
facilitate SMMEs’ access to capital resources, while providing them with the
requisite consultancy to help promote their business.
Vietnam-
Russia Trade and Investment Forum 2013
Vietnamese and
Russian businesses have signed 10 cooperative agreements including foodstuff,
agricultural processing, medicine and tourism at the Vietnam- Russia Trade
and Investment Forum 2013.
The Vietnam- Russia
Trade and Investment Forum 2013 opened in
The forum,
co-organised by the Vietnam Embassy in Russia and provincial Kursk authority,
introduced investment opportunity in diverse fields, especially in
agriculture, food processing, mining and construction.
Addressing at the
forum, Vietnamese ambassador to Russia Pham Xuan Son said the forum had
provided a good opportunity for both sides to explore opportunities and find
economic-trade and investment partners.
Besides traditional
cooperation fields, Russian participants at the forum expressed interests in
expanding their cooperation in culture and tourism
Kursk Mayor Alexandr
Mikhailove expressed his hope that Russian and Vietnamese businesses will
hold similar events in the future. He also affirmed that the provincial
authorities will create all favourable conditions for entrepreneurs from
Two-way trade between
Wild veggies
a new delectable, healthy dish
As many as 126 breeds
of wild vegetables specific to
Gone is the time when
wild vegetables were limited to the daily meals of the ethnic minority people
who live near forests.
In the past few
years, these plants have become increasingly popular in restaurants of Lam
Dong province’s Dalat city. They are a newfound delicacy, popular with
tourists and locals alike.
According to Mai Xuan
Dung, who owns a small chain of restaurants in Dalat, nothing was known about
these wild vegetables until recently, when they suddenly became popular.
A plate of mixed
vegetables such as “la bep”, “sam dat”, “mountain mong toi,” and “rau phan”,
all popular choices, varies from 40,000-70,000 VND (2-3.3 USD).
“Wild vegetables are
now ‘in vogue’ as they are highly nutritional, hygienic and relatively cheap.
On a busy night, we often run out of them,” Dung said.
The vegetables are
usually prepared into simple but tasty boiled and fried dishes and soups.
Most of the
vegetables come from ethnic minority households in such districts as Lac
Duong, Da Huoai and Da Teh.
Lien Kim, a farmer in
Lac Duong district, said that since orders from restaurants started flooding
in, he has begun to grow them himself while continuing to harvest those that
grow naturally in nearby forests.
“Wild veggies are
very easy to grow and safe for human consumption. They don’t require much
care, such as plowing or fertilisers, or processing time before cooking.
We’re planning to increase our growing areas to cope with the surging
demands,” Kim added.
Attracted by the ease
of growth and high profitability, many locals have asked Kim f or seedlings
to grow them at home.
The owner of Chau
Loan restaurant, located near Lang Biang tourism complex in Lac Duong
district, said that most of her customers order dishes with wild vegetables.
She has to place
orders with the farmers a long time ahead, and even sends her staff to
purchase them directly at the farms in Dalat or neighboring provinces.
The vegetables have
recently become her restaurant’s main specialty and are now a fixture on the
menu, as her daily revenues drop by half on days when she runs out of them.
“Many diners also ask
us for fresh tender shoots to grow them at home. Maybe we’ll build a sapling
greenhouse soon,” she smiled.
Few know that behind
the increasing popularity of wild vegetables on the menus is a large-scale
scientific project to identify and study the vegetation thoroughly.
“I was quite
surprised seeing the ethnic minority people cook the vegetation they bring
home from the forests. But when offered, I was really amazed at their
delicious, exotic taste,” Luong Van Dung, vice dean of
The research team
currently has 252 dried specimens of the 126 breeds, which range from edible
vegetables and seasoning herbs to those with medicinal properties and can
cure such ailments as hypertension, coughs, toothache, hepatitis and
rheumatism. The vegetables all contain proteins and lipids, and a number
contain valuable amino acids.
Among the 126 studied
breeds, one plant, “dang sam” (codonopsi javanica), has been enlisted in the
Vietnam Red Book of Endangered Species. Thirty-two of the plants are both
tasty and boast medicinal properties.
According to Dung,
cultivation of clean wild vegetables is possible using local farmers’ safe,
meticulous farming techniques.
The team has selected
nine highly nutritious and best tasting breeds for experimental farming. They
are all easy to grow and can be grown alongside industrial plants such as
coffee, rubber and cashews year-round.
“The project has
mapped out a new direction for wild vegetables regarding their nutritional
and economic values, while attending to the conservation of such valuable
natural resources. We’re positive that with the proper attention, we can
maintain the development of these valuable plants,” said Phan Van Dat, from
the provincial Department of Science and Technology.-
Taiwan firms
explore distribution opportunities in Vietnam
Executives from 46
Taiwanese companies are in
At an exchange
organised on October 4 by the Taiwan Trade Centre (Taitra), they showcased
products like cosmetics, home appliances, machinery, automobile parts, many
of them technologically advanced.
Food, foodstuff,
cosmetics, and other companies looking for franchise partners were introduced
to Vietnamese companies, the first time Taiwanese franchise opportunities
have come up here, a Taitra official said.
She added that a
similar exchange had been organised a few months ago, and it was extremely
successful.
Many Vietnamese
companies saw the benefit in cooperating with Taiwanese companies and
approached Taitra looking for more opportunities, she said.
Trade ties between
Rubber
exports to fetch 4.5 billion USD this year
The rubber industry
expects to bring home 4.5 billion USD in export this year, according to Tran
Thi Thuy Hoa, Chief of the Office of the Vietnam Rubber Association (VRA).
In an interview
granted to Thoi bao Kinh te
She said that the
increasing global rubber demand in recent years has encouraged
She added that the
country also ranked fourth in terms of the amount of natural rubber for
export, which accounted for 10.6 percent of the market share in 2012. The
nation’s rubber tree productivity is about 1,707 tonnes of latex per ha,
generating 105 million VND, ranking third after
Market difficulties
have arisen this year due to the insufficient recovery of the global economy,
the increase of world supply and the growing amount of competition, Hoa
noted.
For a sustainable
rubber export strategy, Hoa said the VRA is working with the Trade Promotion
of the Ministry of Industry and Trade to rebuild a trade promotion programme
with more focus.
It is also
encouraging companies to exchange information on price, consumption and
market situation to create a suitable trading plan.
Rubber companies, for
their part, should improve product quality to meet the demand for export, Hoa
said, adding that the VRA is planning to establish a rubber trading floor in
2015 to ensure transparent prices for both the buyers and the sellers.-
Thanh Hoa
calls for more investment
A senior official
from the central
Deputy Chairman of
the provincial People’s Committee Nguyen Dinh Xung made the call while
talking with local businesses in the province on October 5 to mark Vietnamese
Entrepreneurs’ Day (Oct. 13).
He stated that the
province’s Thanh Hoa city will soon inaugurate Nghi Son oil refinery, which
will offer opportunities for local enterprises.
In January-September,
Thanh Hoa enjoyed economic growth of 10.1 percent, double the national
average. Agriculture-forestry-fisheries earned nearly 5.5 trillion VND (26.1
million USD), up 3.6 percent year on year.
This year’s exports
are expected to hit 688 million USD, up 27.1 percent.
On the occasion of
Entrepreneurs’ Day, former Minister of Agriculture and Rural Development Le
Huy Ngo presented awards to business people who have rendered their services
to the nation’s development in 2013.
He also launched a
fund raising drive in support of victims of the recent tropical storm Wutip.
During this year,
Thanh Hoa’s businesses have raised tens of billions of dong for war heroes
and their relatives.-
The southern Lao
Under the agreement,
Vinacafe will lease 1,000 hectares of land to grow coffee with an initial
investment of about 5 million USD. The location will be in the Boloven
highlands of the province’s Pakson district.
The project will not
only boost two-country trade cooperation, but also create thousands of jobs
for local people whilst contributing to poverty reduction in the region.
The province exported
over 34,000 tonnes of coffee worth 83 million USD in the 2012-2013 period.
European and Japanese
customers particularly like the taste of coffee originating from the Boloven
highlands.
Indian
businessman keeps 30-year friendship with
The Vietnam Union of
Friendship Organisations (VUFO) hosted a get-together in
VUFO Chairman Vu Xuan
Hong expressed sincere thanks to the Indian businessman for all what he has
done for the friendly and cooperative ties between the two countries.
Shantanu Srivastava
first came to
The Indian businessman,
who has lived in
At present, he
sponsors the establishment of Vietnam Houses in the Indian capital
Shantanu Srivastava,
who was conferred the Friendship Order of Vietnam in 2003 and the insignia
For Peace and Friendship among Nations in 2006, said he has some new ideas
for the cooperation between the two countries that he plans to discuss with
the VUFO.
The businessman
suggested a programme to encourage Vietnamese companies to open
representative offices in
Law changes
fines for tax violators
The revised Law on
Tax Management introduced in July has given tax agencies more tools to fight
tax fraud, said the vice-head of the Department of Taxation's Tax Policy
Division, Vu Van Cuong.
Under the revised
law, there are more tax enforcement measures, including measure on customs
procedures for importing and exporting goods - and measures to ensure the
collection of tax debts when people default.
Fines for taxpayers
who delay paying taxes have been increased if the period is longer than 90
days, he said, noting that previously, the daily fine just accounted for 0.05
per cent of the unpaid tax, regardless of time. However, since July, the rate
has been 0.07 per cent for debts older than 90 days.
Violators who make
tax declarations that reduce the tax payable or to increase tax refunds have
to pay a fine equal to 20 per cent of the total tax instead of 10 per cent as
previously.
Cuong said that tax
agencies now inspected tax-related activities at the offices of companies
yearly to set-up a database on them and then classify them into groups based
on their conformity to the law - good, average or bad.
The inspections
centre on companies where tax frauds are not uncommon, such as traders of
farming products; importers or exporters using sales invoices issued by
companies not based in the growing areas; companies registering to provide
multi services in different sectors but whose registration capital is small;
companies whose scale of business is many times higher than their capital.
In efforts to help
people fulfill their duty and save time and other resources for both
taxpayers and agencies, the Viet Nam General Department of Taxation (GDT) has
developed a plan to improve the quality of tax agents by 2020. (The agents
prepare tax returns and any declarations necessary.)
Under the plan, the
country hopes to have at least 3,000 tax agents by 2015 and about 8,000 by
2020.
However, at present,
according to the general department's statistics, there are only 129 tax
agents in the country, mostly in Ha Noi and
Chairwoman of the
Viet Nam Tax Consultancy Association Nguyen Thi Cuc said misunderstandings
about the operation of tax agents made companies hesitant about using their
services.
Cuc said that to
promote tax agency work, the legal framework should be improved and agents
come under a special law.
Ready for
In 2012, not only was
Japan ranked as Vietnam’s second largest trading partner, but also the top
source of foreign direct investment (317 projects approved, worth $4,371
million). Until now,
In addition,
Although it takes a
considerable amount of time for Japanese firms to conduct thorough
preliminary surveys and make investment decisions, few companies have pulled
out once they have decided to invest, and their investments have taken root.
Many enterprises, through the process of training Vietnamese staff with a
medium to long-term outlook, have grown close to their employees and regard
them as family members.
Obviously
According to a JETRO
survey of Japanese companies investing in
Moreover, Japanese
enterprises view the ASEAN bloc as a huge key industrial and consumer market.
This is attributed to the fact that the decision to establish the ASEAN
Economic Community (AEC) in 2015 will help the implementation of production
activities in the region much smoother; and a plan to approach the gigantic
consumer market of 600 million people has been realised. At present, it is
definitely difficult to say that
For example, the
business operations of many Japanese enterprises that have penetrated
At the Japan-Vietnam
Economic Forum chaired by the Vietnam Chamber of Commerce and Industry
(VCCI), with JETRO and Nikkei BP as co-organisers, held in Hanoi early last
month, a panel discussion was held on infrastructure, industrialisation and
fostering of supporting industries and training of human resources - three
areas in which Japan can contribute to Vietnam’s development.
Regarding the
challenges facing
Furthermore, I
believe that to improve the quality of local products requires the upgrading
and expansion of public financial support schemes for machinery purchases,
etc. For the development of human resources, the Vietnam-Japan Human
Resources Co-operation Centre (VJCC) has put in place programmes directed
towards local businesses in Vietnam, for example in business administration,
quality control, marketing, human resources management, etc., but it is
necessary to implement more programmes that many local businesses can take
advantage of.
More concerted
efforts should be made towards the introduction of foreign capital and
supplementing policies regarding incentives for investment, such as an
exemption or reduction of corporate income tax, based on the consideration of
the medium and long-term merits and their impact on the country’s economy. In
particular, these measures are extremely important when it comes to
attracting high-tech firms.
It is necessary to
expand the geographical areas that are considered to be candidates for
attracting foreign investment through the upgrade of infrastructure related
to distribution such as the road network, harbours, etc. To have more
supporting industries it is necessary to strengthen financial regulations for
medium and small-sized businesses, and the need for the development of human
resources should also be considered.
Regarding the
measures related to incentives for investment,
In addition, based on
the results of a survey by JETRO in 2012, we know that among 1,783 Japanese
enterprises investing in
Additionally, there
are provinces that could substantially reduce the travel time to major cities
like
Given the development
of infrastructure through Japan’s official development assistance (ODA) and
also funding from the Asian Development Bank, the World Bank, western
countries, South Korea, China, etc., we can believe that there are still many
hidden investment opportunities for foreign investors, especially Japanese
firms.
From JETRO’s side, we
will put in our best effort to advance investment in
Trade surplus
with EU reach US$17 bln
Of the figure, the
nation’s exports earned US$20 billion and its imports were estimated at
US$8.5 billion.
The European market
also has the fastest export growth among
The country’s major
European export markets in 2013 will be Germany with estimated export
earnings of US$4.6 billion, the UK (US$3.3 billion), the Netherlands
(US$2.7billion), France (US$2 billion) and Russia (US$1.8 billion).
HCMC, Long
Thanh airport to be connected by railway
A railway of over 37
kilometers will be built in the years to come to transport passengers between
HCMC and
According to the
Vietnam Railway Administration, there will be some new railways added to the
detailed railway planning in HCMC and neighboring provinces until 2020.
The railway
connecting HCMC with
With a length of over
37 kilometers, the railway will have 18 stations, with an elevated section of
nearly 12 kilometers in HCMC.
Under the planning, a
railway leading to Hiep Phuoc port will be built to transport goods. This
railway will be 38 kilometers long and divided into two sections.
The first section
will start at Long Dinh station in Long An Province’s Can Duoc District while
the second one will begin at Hiep Phuoc port station and end at Long An port
station in Can Giuoc District.
Besides, the planning
also includes eight railways linking HCMC with neighboring provinces like
Dong Nai, Binh Duong, Ba Ria-Vung Tau, Long An and Tay Ninh.
These eight railways
will need an estimated cost of VND341.3 trillion, equivalent to US$16.5 billion,
sourced from official development assistance (ODA) loans, Government bonds,
State budget and capital of enterprises.
The Vietnam Railway
Administration is calling for investments from the private sector for four
railway projects, including upgrade of the north-south railway, the Nam Ho
Tay-Ngoc Khanh-Lang-Hoa Lac-Ba Vi railway, the Bien Hoa-Vung Tau railway, and
the railway leading to
The total investment
of these four projects mobilized from the private sector is estimated at
VND170.63 trillion.
Number of
apartments offered for sale surges
The apartment market
in HCMC which has stayed quiet for a long time started to see positive
changes when there is a strong increase in number of apartments put up for
sale with around 1,700 units recorded in the third quarter.
A market research of
CBRE Vietnam indicated that the number of apartments offered for sale
increased by nearly 46% from the second quarter, and over 72% of these
apartments were low-cost ones.
According to Marc
Townsend, managing director of CBRE Vietnam, such an increase has reflected a
partial recovery in investors’ confidence.
Home buyers have also
reacted well to apartment projects with a higher number of successful
transactions in both medium-end and high-end segments.
Some investors used
to be cautious about protracted payment duration but they now are more
flexible. The most popular payment method is half of the apartment’s value
paid in advance and the rest paid in 2-3 years’ time.
WB hails
Vietnam’s stability, warns challenges ahead
The World Bank (WB)
in an economic report released on Monday praised
In its East Asia
Pacific Economic Update, the global lender highlights the sustained stability
at the expense of slowing growth, as
WB explains that
“stabilization measures implemented in 2011 and 2012 helped
The report states
that the improved trade and current account balances have helped the State
Bank of
Headline inflation,
meanwhile has been falling in the last 24 months. In July 2013, headline
inflation had fallen to 7.3%, largely attributed to the easing of food price
and stabilization measures.
The important
achievement is that “greater macroeconomic stability has helped
Export performance is
in good shape, according to the report.
Total export value is
estimated to have grown by 14% during the first seven months of 2013 after
achieving a growth rate of 18% in 2012 and 34% in 2011. While earnings from
commodity exports are declining due to falling global prices,
A noteworthy addition
to the export composition has been the exports of hi-tech and high-value
products such as cell phones and parts, computers, and electronics and
accessories, which have emerged as the largest and fastest-growing export
items in 2013.
The solid export
performance is largely attributed to the foreign-invested sector, which now
accounts for two third of
While macroeconomic
performance improved in the last two years, growth slowed in the face of
structural problems in the state-owned enterprise (SOE) and banking sectors.
Growth is estimated
at 5.2% in 2012, the lowest level since 1999. Growth is likely to remain
moderate in the medium term in the absence of visible progress in addressing
the problems confronting the financial and SOE sectors.
“
The World Bank
predicts
It also stresses
challenges ahead facing
“First, slower growth
may intensify demand for further loosening of monetary and fiscal policies,
with the risk of stoking inflationary pressures and reversing the recent
gains in macroeconomic stability.
“Second, if the
implementation of structural reforms is delayed further, investor confidence
would be undermined, further worsening growth prospects.”
The bank further observes
that credit activity remains subdued as banks have become more reluctant to
lend on account of impaired balance sheets, poor financial health of the
SOEs, and general lack of transparency in the policy-making process.
Minh Long
launches new product line
Porcelain maker Minh
Long I Co. on Monday introduced Ly’s Horeca, a new line of products specially
designed for hotels and restaurants.
Ly’s Horeca provides
a wide range of products for hotels and restaurants to cater to weddings and
buffets with Asian and European styles. Products of the line are hard,
durable and reasonably priced.
Ly’s Horeca products
can be used in ovens, microwaves and dishwashers. Besides, these products are
priced at 10-30% lower than Minh Long’s normal products but their quality is
still the same thanks to advanced technology and mass production.
SCG says will
acquire more Vietnamese firms
Speaking at the press
briefing in HCMC last Friday, Kan Trakulhoon, president and CEO of SCG, said
that investment expansion in
SCG has invested over
US$2.1 billion in potential markets of
“SCG considers
SCG currently is
focusing on acquiring domestic firms to fasten penetration into the local
market. If no enterprises with feasible projects are chosen, SCG will invest
in new projects in the country.
Vietnamese firms and
other enterprises in the region SCG has acquired have brought about profits
and operated better. Notably, acquiring an 85% stake of the local building
material firm – Prime Group Joint Stock Company – has sent SCG to the leading
position in the world’s glazed tile production industry.
Meanwhile, the cement
factory of Buu Long Industry & Investment Joint Stock Company in
SCG has invested in
19 enterprises in
Sustainable
development and human resources are the key to success of SCG. The principles
have also been applied in member enterprises in
Last year, SCG
reported revenues of over VND6.7 trillion, up 11% against 2011, due to high
demand for packaging paper. In the second quarter of 2013, the group
generated revenues of over VND3.1 trillion.
SJC resumes
jewelry exports
Saigon Jewelry
Holding Co. (SJC) has resumed jewelry exports, albeit modest volume, after
stopping the business in late 2010.
SJC is the second
firm in the jewelry industry that is trying to ship jewelries abroad besides
Phu Nhuan Jewelry Company (PNJ).
Do Cong Chinh,
general director of SJC, informed that his enterprise was sending small
batches to
Many foreign
customers have already signed contracts with SJC after examining the
processing technology and prices offered by the local company.
SJC has sought
permission from the central bank to import materials temporarily for
re-exports to process jewelry for partners. Chinh deems this practice as the
best way now as it is very difficult to compete with rivals from
PNJ is a jewelry
exporter with steady exports done over the years. However, Nguyen Thi Cuc,
deputy general director of PNJ, reported that jewelry export sales only
contributed some 6% to her company’s total revenues while the export profits
were low.
After an export tax
rate of 10% was slapped on jewelry products having gold content of less than
99.99%, foreign customers have become lukewarm to high-valued home-made
jewelry items.
PNJ earns around
US$12.5-13 million from jewelry exports annually while its jewelry exports
generated up to US$29 million in the first five months of 2010 when jewelry
exports by local firms were strong due to softer domestic gold prices then.
According to the
Vietnam Gold Business Association, as other Asian countries apply jewelry
export duties of 0%, their export values of gold and jewelry products always
stay high. Gold jewelry exports by
Three banks
sell VND840 billion of bad debts
Vietnam Asset
Management Company (VAMC) over the weekend signed contracts to purchase bad
debts from three commercial banks with the total special bond value of over
VND840 billion.
The lenders were
Saigon Commercial Bank, Saigon-Hanoi Bank and PGBank. They are also among the
first banks to sell bad debts to VAMC after Agribank.
A source from VAMC
said that over VND840 billion worth of special bonds will be issued to buy
the debts, which have the total book value of over VND1.1 trillion.
As the total original
debt minus risk provisions makes the special bond value, these figures mean
that these banks have deducted VND357 billion for risk reserve funds for
these loans.
VAMC said that it
will sign contracts to buy debts with the total value of over VND1 trillion
with one or two banks this week. It will also sign more specific
sub-contracts to buy debts of Agribank and the three banks mentioned above.
The enterprise signed
the first bad debt purchase contract with Agribank on October 1. VAMC expects
to buy around VND10 trillion worth of bad debts by the end of the month.
Agribank, which is
said to have the highest bad debt ratio in the banking system, expects to
sell at least VND5 trillion worth of book-value bad debts to VAMC before the
end of the year. The bank now has to handle around VND21 trillion worth of
bad debts.
A leader of VAMC said
that the huge debts of troubled shipping group Vinashin at credit institutions
have not yet been targeted by the enterprise.
Source: VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
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Thứ Bảy, 12 tháng 10, 2013
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