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BUSINESS IN BRIEF 21/11
Fuji
Xerox Co Ltd yesterday opened a factory manufacturing digital colour
multifunction devices and small-sized LED printers in northern
The
facility has an output capacity of around two million products per year.
With
it, Fuji Xerox aims to avoid the need to focus on existing factories in
The
company began works on the plant in
Trade
deficit with
In the
first nine months of this year,
Among
many products exceeding the level of more than US$1 billion were machinery
and equipment, telephones and components, computers, electronics, cotton, and
steel.
The
country’s deficit with
According
to the Ministry of Industry and Trade, it is growing wider year by year. The
reason is that
They
are striving to raise it to US$60 billion in 2015.
Vietnam
to boost economic ties with Italy
These
offices will help increase trade information exchanges, seek investment and
business partners, and establish coordination mechanisms between
The
information was released at a seminar in
In his
opening speech, Ambassador Nguyen Hoang Long highlighted
However,
he said, Vietnam-Italy trade has yet to match their potential.
Bilateral
trade ties have been strengthened in recent times. Business delegations from
At an
international trade seminar in
A
number of economic seminars were held in
Demand
for urea stood at 2.2 million tonnes, SA at 900,000 tonnes, NPK at 4 million
tonnes and DAP at 1.8 million tonnes.
While
domestic producers can satisfy demand for some kinds of fertilisers, they
still have to import others, the ministry said.
Last
month alone, the Ministry of Industry and Trade estimated the country's
fertiliser imports totaled 450,000 tonnes, a 2% surge over the previous month
but a 6% decrease year-on-year.
Urea
imports saw the highest rise, surging 98% against the same period last year
to 138,000 tonnes.
Dinh
Vu Fertiliser Plant in the northern city of
The
country has to spend hundreds of millions of US dollars importing over
800,000 tonnes of DAP every year.
The
Vietnam National Chemicals Group (VINACHEM) will invest in building a plant
with a similar capacity in northern Lao Cai province's
In
2015, local enterprises will be able to meet 100% of demand for urea,
phosphate and NPK, 70-80% of demand for DAP and 30% for SA.
Industrial
parks promote investment opportunities in
The
capital city of
The
Ministry of Planning and Investment worked with Vietnam Invest Network to
organise the exhibition, themed “Promoting investment and cooperation in
Vietnamese Industrial Zones”.
Attendees
will learn about the advantages of investing in economic zones and industrial
parks via a selection of images, documents, maps, sand tables, and lists of
projects actively seeking capital.
The
exhibition also encompasses cooperation agreement signing ceremonies and a
seminar outlining the latest developments in industrial park management and
investment policies.
Trade
surplus with EU hits US$10.8 billion
Of the
total, exports to the EU earned US$17.8 billion, a 24.7% improvement on 2012,
and imports hit US$7 billion, up 11%.
Property
disputes mar development
The
country's legal system has not kept pace with rapid real estate development,
triggering a number of disputes between investors and customers.
There
were many disputes between real estate investors – who made large profits in
a short time –and home buyers, who felt that investors were not professional
in their transactions, an expert said at a conference in Ha Noi yesterday.
Former
deputy minister of Natural Resources and Environment, Dang Hung Vo singled
out Le Van Luong Residential Project and Dai Thanh Apartment Building as
areas where disputes had occurred over such issues as service fees and
certificates of home ownership.
The
Law on Apartments and other legal documents lacked regulations on building
management boards and other key issues, according to Vo.
Moreover,
contracts between investors and customers failed to protect the rights of
home buyers or require supervision from authorities.
He
proposed completing such regulations and urged investors to provide customers
with legal information about projects.
State
management agencies and associations should also implement drastic measures
to resolve the disputes, he said.
Tran
Huu Huynh, chairman of the Viet Nam International Arbitration Centre, agreed,
saying the disputes would get more severe if State agencies and relating
authorities did not intervene.
Lawyer
Nguyen Truc Hien, director of the Viet Nam International Law Firm (Vilaf)
Hong Duc, said that in several property projects, investors contributed only
a small amount of the capital, while the rest was mobilised from customers
and loans.
For
this reason, investors were ready to run away from projects if there was a
dispute, he pointed out.
Lawyer
Phan Vu Anh, former director of Vinaconex's legal department, said the
Government could prevent hundreds of disputes by taking measures to make home
buyers feel secure and encouraging banks to pour money into property projects
given the quiet real estate market and increasing bad debt.
Banks
focus on human resources
Commercial
banks have accelerated staffing adjustments in the face of a tough economic
outlook, according to Dau tu Chung khoan (Securities Investment).
Asia
Commercial Bank (ACB) staffing levels fell to just over 9,000, after the bank
dismissed nearly 1,300 employees within the first nine months of this year,
with more than 700 jobs slashed in the third quarter.
ACB
deputy general director Nguyen Thanh Toai said better market conditions had
enabled the bank to expand until 2012, before the economic downturn. The bank
has since had to modify expansion plans and restructure its workforce to stay
competitive.
He
confessed that salaries at ACB had become less attractive for employees as a
result of sharp declines in profit, with many people leaving the bank in
search of better pay packets.
The
bank reached a pre-tax profit of around VND1 trillion (US$47.6 million) in
the past year, with losses in gold trading amounting to VND1.7 trillion
($80.95 million).
Techcombank
said it discharged around 1,000 employees in 2012 and was continuing to slim
its workforce as third-quarter profits slumped nearly 84 per cent over the
same period last year.
The
bank's earnings came in at VND562 billion ($26.76 million) in the first nine
months, declining 66.4 per cent from last year.
Eximbank
chairman Le Hung Dung said late last week that the bank had terminated nearly
50 contracts, repositioned over 300 people and slashed management-level
salaries; in an effort to strengthen sales and boost retail activities.
He
said the bank had been trying to reshuffle jobs and limit job cuts, a move
typically undertaken by banks in periods of low profits.
Meanwhile,
Sacombank staffs have reached more than 11,300 people after the bank
recruited an extra 700 employees last year and more than 1,000 this year.
General director Phan Huy Khang said the bank would continue to hire as
branches were showing strong growth.
But he
admitted that market difficulties remained and the bank would need to keep
restructuring staff to ensure leaner and higher quality operations.
Compared
with the market's larger lenders, staffing levels at small- to medium-sized
banks remained almost unchanged this year. At the end of the third quarter,
Southern Bank had 2,960 employees, shedding only 24 people from the end of
2012.
Chairman
of a HCM City-based bank with VND4 trillion ($190.5 million) in equity, said
his bank had not changed staff numbers this year, but had reshuffled staff
between different sections of the business.
Industry
insiders say this tactic was used primarily because small banks had downsized
sharply in the last few years, with many employees fired as a result of
mergers and acquisitions.
Former
Governor of the State Bank of
The
downsizing of banking staff is due to continue next year if market demand
remains weak and business borrowing stays low.
Debts
restructured to support failing firms
Credit
institutions have restructured nearly VND300 trillion (US$13.63 billion) in
debts, accounting for 10 per cent of total outstanding loans.
According
to Governor of the State Bank of
As
many as 60 per cent of the restructured debts would have become bad loans
without the restructuring, he said.
The
restructuring has also eased borrowing conditions for businesses with no
penalty interest payments being applied.
Binh
said the measures for self-handling NPLs of banks, including debt
restructuring have yielded positive and meaningful results for both
businesses and banks.
In
late May, the central bank had to delay the application of Circular 2 on bad
debt classification and risk management until June 2014.
The
move aimed to help enterprises access credit, boost lending and reduce
lending interest rates to fight looming economic downturn and rising
bankruptcy rates.
As a
result of the delay, credit institutions have been permitted to restructure
repayment periods for loans.
Circular
2, which reflected international norms and was compatible with economic
conditions, will prevent banks and financial institutions from intentional
misconduct.
However,
the implementation of the circular would see tighter conditions for
enterprises seeking bank loans and force banks to contribute to risk funds.
Vice
Chairman of the Viet Nam Asset Management Company, Nguyen Quoc Hung, told
Thoi bao Ngan hang (Banking Times) that as of November 15, the company had
bought VND17.3 trillion ($786.36 million) in debts from 20 credit
institutions.
As
many as 24 banks have registered with the company to sell debts valued at
VND40 trillion ($1.818 billion). The company is currently reviewing debts for
future deals.
Retail
banking the wave of the future, experts say
The
trend toward retail banking will only get stronger in
"The
experience of the monetary crisis in 1998-99 and 2007-08 showed mistakes.
Commercial banks had invested a great deal in sectors that easily brought
high profits such as real estate and security. They forgot retail, a
potential, stable sector," Ha Huy Tuan, deputy chairman of the National
Financial Supervisory Commission, told the forum.
Bankers,
financial experts and technology consultants attending the forum agreed that
the fast pace of urbanisation, the country's rising population and higher
incomes, and an increasing number of small- and medium-sized enterprises
(SMEs) had pushed the development of retail banking in the country.
During
the one-day meeting, experts spoke about operational excellence and the need
to differentiate and transform banking channels.
Tuan
said the increase in population and income had created "much potential;
moreover, 90 per cent of companies in
"That's
why developing retail banking is becoming the key strategy of banks and
financial institutions," he said.
Le
Cong, CEO of Military Bank, said that only 30 per cent of Vietnamese
residents had been approached by banking services, and the remaining 70 per
cent represented a huge market for retail services.
Nguyen
Tu Anh, CEO of Smartlink Card Joint Stock Company, said that retail banking
had become more important in the Vietnamese banking sector in the last three
years.
"For
big banks like Vietcombank and Vietinbank, capital mobilisation from the
retail sector accounts for 50-55 per cent. Meanwhile, the figure is more than
80 per cent at smaller banks," she said.
Tu Anh
said the number of cards and banking accounts had continued to surge.
"As
of June, there were about 50 million banking cards and many other payment
tools. The payment network has also developed with more than 16,000 auto
teller machines (ATMs). Many companies are accepting online payments. In
addition, many other payment methods such as mobile banking are being
used," she said.
Despite
the potential, many forum participants said that competition was tough as the
banking sector was one of the first to open to foreign players.
To win
the market, banks must be able to differentiate themselves in service and
products from their competitors, they said.
The
forum said that service payments and money transfers at banks in
Developing
better management skills and investing more in information technology were
two other necessary steps, speakers said.
"Banks
in
The
ASEAN Banker Forum was co-organised by the association and International Data
Group (IDG). This was its third annual meeting.
Six
banks win Outstanding Banking prizes
Six
banks in
The
award honoured those banks that had achieved an outstanding performance and
had contributed to the development of the banking and financial sector.
The
title outstanding retail bank was bagged by Techcombank; outstanding
e-banking award, Vietinbank; outstanding security initiative banking award,
HDBank; outstanding trading platform banking award, Vietinbank; outstanding
branch of foreign bank ward, CitiBank; and Oceanbank and TienPhong Bank,
outstanding innovative banking products and services award.
The
board of judges included representatives from Government agencies,
ministries, associations and experts in the fields of finance and banking
technology.
Ailing
Trang An offloads accounts
Trang
An Securities Company would transfer its 12,000 trading accounts to the Viet
Nam Investment Securities Company (IVS), the account receiver announced
yesterday.
The
number of shares held by these accounts reached around 30 million shares,
according to the Viet Nam Securities Depository's data as of November 15.
Among
the accounts, a large proportion belongs to Chinese investors as the current
chairman of Trang An Securities holds Chinese nationality.
In
April last year, Yang Xiao Dong, the largest shareholder of Trang An
Securities, was appointed chairman of the company, replacing Le Ho Khoi who
was then arrested earlier this year for appropriating clients' assets.
In May
last year, many investors opening accounts at Trang An Securities reported
that their money and securities disappeared without a reason.
After
increasing his stake in Trang An Securities, Yang offered a loan of VND29.8
billion (US$1.4 million) to the company.
"In
fact, the shareholder succeeded in acquiring the brokerage at a low price,
and he can restructure it in his own way," a securities analyst said
under the condition of anonymity.
Yang
said he wanted to transfer the accounts to a domestic brokerage firm and
continue to invest while the Vietnamese market remains promising.
Trang
An Securities was de-listed in September, while the Viet Nam Investment
Securities is performing normally, having no accumulated losses.
Yamaha
recalls faulty Nozza scooters due to petrol leakage
The
Viet Nam Competition Authority said that in first six months of this year,
Yamaha Viet
Early
this year, Yamaha recalled 83,000 Nozza scooters due to possible petrol leaks
from the pipe connecting the fuel tank to the engine.
The
Japanese motorbike maker said it would fix and replace all the pipes and
their holding systems, which were not correctly assembled.
The
recall applied to the model produced between August 2011 and March 2013,
Yamaha Viet
Nozza
owners could bring their bikes to Yamaha dealers for repair and replacement
work, which would take about 30 minutes and be free of charge, the company
said.
Viet
Nam enjoys growing rice export revenue, especially from Africa
The
Viet Nam Food Association said in the first two weeks of this month,
Since
the beginning of the year,
Africa
is the largest importer of rice from
Shrimp
sales drive seafood exports to $1.7b in Q4
The
export value of seafood in the last quarter of this year is expected to
increase 6.5 per cent to US$1.7 billion, bringing the annual total to $6.5
billion.
The
Viet Nam Association of Seafood Exporters and Producers (VASEP) said the
surge would be mainly due to increasing shrimp exports, while exports of tra
fish would likely struggle to recover and exports of tuna and other kinds of
seafood would be lower than last year.
Mollusc
exports, including cuttlefish and octopus, would continue to decline, it added.
In the
first three quarters of this year, seafood export value saw a year-on-year
rise of 6.4 per cent to $4.8 billion. The total grew by $1.9 billion in the
third quarter, 17.4 per cent higher than last year.
Thua
Thien-Hue tempts development investment
A
workshop to introduce adjustments to
Project
Director Ohn Yeong-te said the master plan, funded with non-refundable aid
from the Korea International Cooperation Agency, is divided into three
stages.
During
2011-2015, several key sectors that have potential to draw short-term
investment will be chosen to drive durable economic growth.
Between
2016 and 2020, industries, services and sectors linked with planned
development will come under the radar.
From
2021-2030, the province will make the most of hi-tech sectors to create high
added value.
Chairman
of the provincial People’s Committee Nguyen Van Cao vowed all possible
resources to overhaul administrative procedures and create a legal
environment that is conducive to future production and training.
The
province will improve a system of urban infrastructure in transport, culture,
tourism, healthcare, education and science-technology, raising its reputation
as a major hub of the region and the whole country, he said.
To
this end, Thua Thien-Hue will ensure the progress of key tourism projects
like Chan May – Lang Co economic zone, Phu Bai and Phong Dien industrial
parks, he added.
Sweeping
changes will also be seen in general education and vocational training, with
attention paid to rural areas and the workforce in the tourism sector,
industrial zones and local hospitals.-
Phu
Quoc stimulated to become key special economic zone
The
launch of the 110kV Ha Tien-Phu Quoc undersea cable project is an important
premise for fostering socio-economic development of the southern
The
undersea cable project has created a turning point for province to become
nation’s key special economic zone and a high-quality green tourist
attraction, added Minister Hoang.
The
58km system linking the island to the national power grid is the longest of
its kind in Southeast Asia with a total investment of over 2.3 trillion VND
(110 million USD), partly financed with a World Bank loan.
Approving
the overall development of Phu Quoc island to 2010 with a vision to 2020 has
given a new impetus to transform the island district into a special economic
zone.
Many
domestic and foreign organisations and individuals have sought investment
opportunities on the island since the overall development plan approved in
2004, according to Minister Vu Huy Hoang.
Under
the provincial master plan, Kien Giang has put into use a number of
infrastructure projects, including the Phu Quoc international airport and An
Thoi international seaport.
The
major transport axis connecting the island’s northern and southern sections
is currently under construction, while the Ha Tien-Phu Quoc undersea cable
system is expected to become operational on the occasion of the 2014 Lunar
New Year.
Phu
Quoc has seen a stable and high level of economic growth with Gross Domestic
Product (GDP) on average increasing by over 22 percent a year during the
2005-2013.
In
addition to witnessing rapid development in trade-services, construction and
transportation, the island is also attractive to tourists at home and abroad.
The
province welcomed nearly 2.9 million visitors in the first nine months of
this year, fulfilling nearly 70 percent of its yearly target.
The
island is expected to attract 5-7 million domestic and foreign visitors by
2030.-
Pro-property
solutions on path to realisation
A
positive change in the property market has been seen in the last quarter of
2013 thanks to the Government’s solutions, according to Minister of
Construction Trinh Dinh Dung.
The
minister noted that in recent months, the property market has seen an
increase in transactions, particularly in affordable medium and small-scale
housing, adding that supply for the segment still fails to meet the demand.
He
said the sharp drop in real estate prices over the past two years is
inevitable after prices reached artificial high levels well above the
purchasing capacity, and forecast that the liquidity of property products
will be improved when prices come close to affordability.
Discussing
the implementation of the Government’s 30 trillion VND package for low-income
homebuyers and corporate customers developing social housing projects,
minister Dung admitted that disbursement of the preferential source is still
sluggish.
He
said the country needs more than one million social homes, but the construction
could not be done in a short time. At the same time, many obstacles,
including tight procedures and low profit, discouraged housing developers
from investing in social housing projects.
The
minister reiterated the resolve to carry out the programme, and urged the
banking system and local administrations to try and cut unnecessary
procedures, facilitating people’s access to the bailout money.
Moreover,
he stressed the need to fight against wastefulness and loss in construction,
which is an urgent issue.
The
over-supply of property products is the result of spontaneous investment
without planning, leading to “suspended” projects and bad debts in the real
estate sector.
The
government has issued two decrees to tighten management of urban development and
construction quality, and will continue to refine legal documents related to
this field.
Workshop
promotes export trademark protection
A
workshop was held in
The
event was organised by the National Office of Intellectual Property (NOIP)
under the Vietnamese Ministry of Sciences and Technology and the Economic Cooperation
Programme of the ASEAN-Australia-New Zealand Free Trade Agreement, with
assistance from the World Intellectual Property Organisation (WIPO).
Speaking
at the event, NOIP Deputy Director Tran Huu
In
2012, NOIP received over 5,000 applications from international organisations
wishing to register trademarks in
Luu
Duc Thanh from NOIP underlined the importance of registration of trade name
protection for exports, saying that the move helps enterprises develop their
export market, while protecting them from unhealthy competition.
There
are currently 90 countries registered with the
Aquatic
exports to hit 1.7 billion USD in Q4
The
figure will help raise the year’s total to over 6.5 billion USD, an increase
of 5 percent against last year, according to the Vietnam Association of
Seafood Exporters and Producers (VASEP).
In the
first nine months of 2013,
Among
the aquatic products, shrimp accounted for 43 percent of the country’s total
export value. Since March, the product has enjoyed a two-digit monthly export
growth, ranging from 20 percent to 66 percent.
In the
January-September period, shrimp export turnover exceeded 2 billion USD, up
27 percent compared to the same period last year.
Meanwhile,
the tra fish sector has seen slow recovery, and even some drops, in recent
months. Its exports in the first three quarters reached nearly 1.3 billion
USD, down 1.4 percent year-on-year.
The
export of tuna and sea fish has also come to a standstill due to the EU and
Japanese markets’ falling demands and higher standards. Tuna exports in the
first nine months fetched only 415 million USD, a decline of 4.5 percent over
the same period last year.
Cuttle
and octopus saw continuous decreases in the Jan-Sept period, earning 309.5
million USD, down 17.2 percent.-
Real
estate market faces further challenges ahead
It is
forecast that there will be many challenges for real estate businesses to
overcome in the coming time.
The Ho
Chi Minh Construction Department says since the beginning of this year, more
than 4,400 properties have been sold to reduce the real estate sector’s
inventory level by 30.62%). But as many as 10,053 houses worth over VND17,600
remain in the buffer even though they are offered on 10% - 20% price
discount.
High-end
apartments and villas are no exception as Phat Dat company in Novaland group
has agreed to cut down selling prices by 50% and Vincom has committed to
accept 10-year house rents at a fixed price.
Tran
Trong Tuan, Director of the HCM City Construction Department, says high
inventory level in the local real estate sector have forced investors to
reduce housing prices and launch more promotion programmes to increase
demand.
Nguyen
Van Duc, Director of Dat Lanh real estate company argues that consumers will
get some benefits from buying completed houses at a lower price but they many
face the risk of buying houses which are still under construction.
There’s
growing concern about the Government’s VND30,000-billion aid package to help
iron out snags in the local real estate sector. By August 31, 2013, VND105
billion was disbursed for 331 borrowers.
By the
end of September 2013,
Such
snags in the real estate sector will only discourage investors from getting
involved in future housing projects.
Luxury
villas still lack access
Five
years ago, a row of seven villas was constructed in the new urban area of Bac
Linh Dam. However only three houses No. 16, 28 and 26 have been inhabited so
far. House No. 28, at the other end of the terrace, was just recently moved
into, making it the only other house with access to the surrounding
neighborhood.
The
remaining villas are isolated from the surrounding area as the investor has
utilised all of their land for the construction of the houses, expecting a
This
farcical situation only recently came to light when the Government requested
The
stupidity of the situation was underlined when one of the current owners of
the remaining villas was unable to enter his property with construction
materials as landlords in the surrounding area denied him access.
The
five-hectare Bac Linh Dam urban area has been developed by the Housing
Development Investment Joint Stock Company (HUD2), and consists of part of
the Linh Dam model new urban area in
The
company started construction of the urban area in 2003 and first houses were
sold in 2005. At present Bac Linh Dam houses around 3,000 residents.
Alongside
Bac Linh Dam, a municipal project was scheduled to build a 15-metre road in
front of the villas. HUD2 marketed the project with their project showing
plans including the road, which was supposed to be built by the city. However
delays in the municipal project have left the owners of HUD2 properties in a
difficult situation.
HUD2’s
Director Nguyen Thanh Quang, said the company was mulling over a plan to rent
land in order to construct a road for the isolated villas.
He
noted that the firm had yet to receive an official petition from the owners
complaining over the problem, and had become aware of the situation only
through recent press coverage.
In the
short term, HUD2 intends to co-operate with the
A
3,000 square metre land lot in front of the villa block belongs to 20
households who have yet to receive compensation from the management board.
Le
Thanh Hai, head of a site clearance group in Hoang Mai, said the project site
was expected to be entirely cleared in the third quarter of this year. This
means that at long last the owners of the Bac Linh Dam villas will have the
road access they were promised many years ago.
New
Zealand project mitigates disasters in Mekong
The
According
to the New Zealand Embassy in
The
project will run from 2013-2017 in high risk disaster areas in Vinh Long and
will benefit about 30,000 local residents. It will focus on assisting the
locals in developing sustainable agriculture livelihoods and community-based
disaster risk management.
Official
says
Dr.
Nguyen Dang Vang, Chairman of the Vietnam Animal Breeding Association, made
this statement at the 5th World Waterfowl Conference, which opened this
morning, October 6, in
The
three-day event attracted the participation of 20 scientists, managers, and
officials from 17 countries and territories, along with representatives from
outstanding farms in
“
According
to him,
Currently,
He
attributed the situation to the outdated technology of duck meat processing
and that the country should learn from the advanced technology of developed
countries like
Now
Sime
Darby Motors distributes BMW, Mini cars in Vietnam
At the
ceremony to hand over five cars of BMW Series 5 to the Sheraton Saigon Hotel
on Tuesday, Horst J. Herdtle, CEO of BMW Euro Auto as official importer and
distributor of BMW cars in
The
five sedans for the Sheraton Saigon Hotel are used to upgrade its limousine
service. BMW Series 5 sedans were launched at the Vietnam Motor Show 2013 two
weeks ago and have not been sold in
“With
an aim to expand business operation, BMW Euro Auto has sought a strategic
investor. After careful consideration, BMW Euro Auto has decided to sign an
agreement with the Malaysian partner,” said Herdtle.
According
to Herdtle, Sime Darby Motors not only contributes capital but also
experiences to develop the Vietnamese auto market.
BMW
Euro Auto will open a showroom for Mini cars (an auto brand of BMW) in Hanoi
late this year and another one in HCMC next year. Besides, the firm is
expanding its BMW showroom and customer care system.
SBV
efforts may stop dollar lending ahead of schedule
The
government’s anti-dolarisation plan will stop financial institutions from
lending in foreign currencies by 2020. Dollar lending specifically may end
even earlier following moves by the central bank.
By the
end of October growth in dong-denominated loans hit 11 per cent while those
in dollars shrunk by 13.6 per cent. Falling dollar lending is in-line with
the government’s anti-dolarisation plan which debuted in 2011 and is to run
through 2020.
According
to Banking Academy deputy director To Kim Ngoc, due to the State Bank’s (SBV)
dollar lending restrictions, dollar deposits against total means of payment
fell from 19.5 per cent in 2011 to over 11 per cent only by mid-2013.
Economic
experts have widely praised the SBV’s commitment to anti-dolarisation.
Le Xuan
Nghia, member of the National Financial Monetary Policy Council said
achievements in the foreign exchange market such as increased currency
reserves and stable exchange rates were all results of the SBV’s
anti-dolarisation policies.
“In
light of the government’s anti-dolarisation plan, raising and lending capital
in dollars will be finished by 2020. And lending in dollars may end even
earlier,” Nghia said.
Despite
advocating the government’s anti-dolarisation drive, deputy general director
of Military Commercial Joint Stock Bank (MB) Nguyen Thi An Binh still has
concerns.
“Dollar
lending has slowed, but to completely finish it will require a step-by-step
process. At MB we maintain a certain level of dollar-denominated deposits,”
Binh explained.
Numerous
other banks have also said they are concerned about the dollar mobilising
rate falling to zero as banks still need dollars to run their operations.
Businesses
are also worried about the effort. Nguyen Tien Dung, chairman and general
director of Hanoi-based Agricultural Products and Materials JSC (Apromaco) is
concerned that importers would find it difficult to make payments if they
could not access dollars from banks.
Responding
to banks and firms’ concerns, Ngoc said the government was moving toward
stopping dollar lending but that the process would go through tiered steps to
avoid severe market shifts. He backed up his point by pointing out that the
SBV has still maintained the dollar mobilising rate at 1.25 per cent per
year.
Gov’t-to-gov’t
rice contracts decline
The
ratio of government-to-government rice export contracts tumbled to only 13%
of total rice export volume between January and September versus 44% in the
same period of 2011, according to the Vietnam Food Association (VFA).
China
remained the biggest rice importer of Vietnam in the period with 1.76 million
tons, a 2.7% year-on-year increase. Local firms mainly exported rice to China
via private channels.
For
government-to-government contracts, the Philippines imported only 353,000
tons, or just 6.6% of total rice export volume. Malaysia also imported
348,000 tons, making up the same ratio.
Indonesia,
the Philippines and Malaysia are traditional rice importers via this channel.
However, the nations have reduced rice imports due to improving food self-sufficiency
and higher roles of private rice importing firms, said Nguyen Dinh Bich, an
expert in the rice industry.
According
to an official of VFA, many enterprises have been hurt by the decline of
government rice export contracts.
Vinh
Long Cereal and Food Corporation saw its after-tax profit slumping 35% in the
third quarter. In a statement sent to the Hochiminh Stock Exchange and the
State Securities Commission, Nguyen Thanh Hoang, general director of the
enterprise, explained that the low ratio of government rice export contracts
dragged down rice sales in the quarter.
The
enterprise used to be a State-owned firm under Vinafood 2, which joins
auctions for government-level rice export contracts. After equitization, Vinh
Long is no longer a member of Vinafood 2 but it is still allocated with some
rice export volumes from government contracts signed by the company.
Although
many private enterprises have joined the rice exporting market, most
exporters are State-run or equitized enterprises that have been familiar with
sharing government export contracts. As a result, they have suffered
challenges given a contract number decrease, said an expert.
Rice
export prices also depend on government contracts. Last month, as Vinafood 2
won a contract to export 120,000 tons of rice to the Philippines, local rice
prices increased by around 10%. However, the high prices will only be
maintained if more contracts are signed in the near future, the expert said.
Speaking
at a recent seminar, Pham Van Bay, vice chairman of VFA, said that the nation
may fail to export seven million tons as earlier estimated if no more
contracts are signed before the year-end.
Meanwhile,
VFA predicted that rice exports via niche channels will continue to rise in
border provinces in the north, causing risks for enterprises.
VFA
expects rice exports via official channels at around 6.7 million tons this
year, down by one million compared to 2012. In contrast, rice exports via
niche channels, especially to China, are estimated to rise strongly to 1.5
million tons.
Source:
VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
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Thứ Tư, 20 tháng 11, 2013
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