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BUSINESS IN BRIEF 25/11
The
internet, mobile, social media gaming and a new wave of consumers are
changing the foundations of businesses. In
Experts
believe the trend of using digital advertising including online and mobile
advertising will pick up in the near future.
According
to Nguyen Tien Dung, manager of the digital section of Maxus
There
are over 30 million internet users in
Facebook
is still the most popular social network in
Two
actions that local Facebook users usually perform are to press the button
“Like” and make comments, while in other developed markets, Facebook users
often check in, meaning they inform their friends when they visit certain
locations and upload pictures, Dung remarked.
However,
he noted that it was not easy to make advertising on social networks and
digital advertising effective, adding most local enterprises have made
inconsiderable investments in digital advertising, which accounts for less
than 5 percent of the total budget for marketing.
At the
seminar, Phan Quoc Cong, general director of the International Consumer
Products Corporation (ICP), said that his firm began paying attention to
advertising on the Internet some years ago due to the rising number of
Internet users then.
The
marketing budget at ICP is divided into the ratios of 70 percent, 20 percent
and 10 percent, Cong informed. The 70 percent volume has been carried out on
local media, especially television, and has proved its efficiency, while the
20 percent volume is set aside for new channels whose efficiency is
measurable and the remainder is used for new campaigns but its efficiency has
yet to be measured, he stated.
The
fact that an advertising campaign of ICP on television costs 1 million USD is
normal, Cong asserted. But he said the cost would be only one-tenth, or
around 100,000 USD, if the enterprise launched the campaign on the Internet,
with the sum used for many different processes, ranging from creation and
production to advertising.
Le Ho
My Duyen, who is in charge of the high-end brands of ICP, argued that
advertising on social networks should not be separated and that it should be
integrated with plenty of other traditional channels, from television,
newspapers, selling points to other related activities.
According
to the market research company eMarketer, advertising sales on the Internet
in
Advertising
sales on local media in
Electricity
market on the horizon in Vietnam
Prime
Minister Nguyen Tan Dung has signed a decision on roadmap, conditions and
structure to formulate and develop an electricity market in
Under
Decision 63/2013/QD-TTg, the future market will see the formation of a
competitive power generation market by late 2014 as in the first phase.
The
second phase will focus on competitive power trading which will be piloted in
2015-16 before coming into being in 2017-21.
In the
third phase, a competitive retail sale power market will be operating on a
trial basis in 2021-23 and officially run from 2023.
The
Ministry of Industry and Trade is responsible for building and submitting a
project to restructure the power sector to realise development phases of the
power market. It is also tasked to direct the implementation of the roadmap.
The
Ministry of Planning and Investment must work with the Ministry of Finance to
allocate enough capital for the process.
Meanwhile,
the Electricity of Vietnam (EVN) has to invest and perfect necessary
infrastructure for the operation of the competitive power market.
According
to the decision, EVN’s power generating corporations and plants (excluding
large-scale ones which play an important role in socio-economic, national
defense and security) will no longer connect with power trading, transmission
and regulatory units.
The
decision will come into force on December 25, 2013.-
The
targeted realms include trade, industry, credit finance and investment,
health, agriculture, water supply, environmental protection, information
technology and communications, education and training, science and
technology, tourism, transport and infrastructure.
The
Vietnamese Ministry of Industry and Trade (MoIT) said on November 21 that the
two sides reached consensus on the early signing of cooperation agreements in
banking and vegetation quarantine in order to boost their economic and trade
ties in the coming time.
The
committee’s fifth session was co-chaired by MoIT Deputy Minister Ho Thi Kim
Thoa and Hungarian State Secretary for Foreign Affairs and External Economic
Relations at the Prime Minister’s Office Peter Szijjiarto.
Representatives
of over 200 businesses nationwide are attending the 2013 Red River Delta –
Hai Duong trade fair in the
They
are putting on show industrial, handicraft products and consumer goods at
more than 400 booths
The
event creates a good chance for local and foreign firms to seek partners and
sign trade deals.
A
seminar will be held during the fair to provide participants with information
on the market and demand in the region.
As
part of the 2013 national trade promotion programme, this year’s fair also
comes as a response to the campaign “Vietnamese prioritise Vietnamese
goods”.-
Lotte
trade centre put into use in Binh Duong
The
Lotte retail group from the
The
three-storey building worth nearly 30 million USD was built on an area of
21,300 square metres, not merely serving as a trade centre it includes a
cinema, an amusement park, shops and restaurants.
According
to the group, the 30 million USD Lotte Mart in Phan Thiet is scheduled to be
fully operational by the end of this year.
Similar
projects have been put to service in
Credit
institutions asked to deal with bad debts
Recently,
Governor of the State Bank of Vietnam (SBV) Nguyen Van Binh issued Document
8421/NHNN-TTGSNH on the implementation of the Prime Minister’s directives
detailed the Decision 843/QD-TTg dated May 31, 2013 approving the two
projects of "Dealing with bad debts of the credit institutions
system" and "Establishing the Vietnam Asset Management
Company". Vietnam Business Forum finds out more.
Based
on this document, the SBV has called for credit institutions (CIs) to develop
and implement plans to settle bad debts and improve credit quality in the
2013-2015 period (part of the overall plan to restructure credit
institutions), following the spirit of Decision 254/QD-TTg dated March 1,
2012 (Decision 254) and Decision 843/QD-TTg (Decision 843) dated May 31, 2013
of the Prime Minister.
The
objective is by the end of 2015, the current bad debts will have been
basically cleared, credit quality effectively controlled and enhanced,
successfully complete the objectives from the project "Restructuring the
credit system 2011-2015" issued under the Prime Minister’s Decision 254
and the project "Dealing with bad debts of credit institution
system" issued under the Prime Minister’s Decision 843.
The
Governor has called for banks to assess bad debts and credit quality in 2011,
2012 and the first six months of 2013, including bad debts of credit level,
bad debts from buying corporate bonds, fiduciary bonds and credit; bad debts
divided into groups, collateral value and provision for risk corresponding to
each group; bad debts with collateral (real estate and future real estate,
commodities and other collateral) and without collateral; bad debts classified
by customers of the State level (State-owned enterprises, including bad debts
of state corporations and other businesses), individuals or households; bad
debts classified by industry; bad debt incurred by affiliates, transaction
offices, branches and units of CIs.
In
addition, Vietnamese banks have also been required to perform analysis and
evaluation on bad debts’ data and structure at the time of June 30th 2013
based on following classifications: bad debts defines under Decision
493/2005/QD-NHNN dated April 22, 2005 and Decision 18/2007/QD-NHNN dated
April 25th 2007, but not under Decision 780/QD-NHNN dated April 23, 2012 of
the SBV Governor; bad debts defined under Circular 02/2013/TT-NHNN dated
January 21, 2013 of the SBV Governor (Circular 02) on asset classification,
provision and provisioning method, as well as using reserves to handle risks
in banking activities of CIs and foreign banks’ branches.
CIs
also need to review, produce statistics, assess the status of loans including
interest due but not paid which is added to the loan, in which clearly report
the total debts classified in Group One, Group Two and other groups; loans
for interests. CIs must evaluate accurately the level of risk of those
aforementioned loans, financial situation and business activities relating to
them.
Especially,
CIs should propose solutions to deal with estimated bad debts in accordance
with Circular 02 and Decision 843, estimate removable bad debts for each
solution and each year up to 2015, including loans sold to the Vietnam Asset
Management Company; solutions and plans to deal with bad debts of affiliates,
branches and units of credit institutions.
In
terms of improving credit quality, CIs need to develop measures to enhance
the quality of appraisal and lending decisions (including changes in credit
conditions, record, process, procedure, process of credit appraisal and
approval, responsibilities of individuals and units in the process); measures
to strengthen monitoring to guarantee loans are used for the purposes stated
in the credit agreements.
Finally,
the Governor requires CIs to introduce measures to strengthen internal
inspection and control as well as internal audit of credit quality (for
example proposing changes in internal control rules, inspection content and
procedures, inspection before, during and after the credit approval); methods
to handle illegal loan or loan posing a risk to CIs: classify, accounting
these kind of debts in accordance with the law; to closely supervise the
restructuring and handling; to create mechanisms which help prevent the
arising of these kind of debts; and to stop providing illegal loans.-
Increasing
connectivity boosts farm produce sales
Ten
months after it was kicked off, the programme for cooperation in farm produce
and food supply between
Early
this year the Hanoi Department of Agriculture and Rural Development signed
agreements on the sale of safe vegetables, fruits, food, forest products and
seafood with its counterparts in
Nam
Dinh province Department of Agriculture and Rural Development Deputy Director
Nguyen Phung Hoan said that after signing the agreement, the amount of farm
produce and food that Nam Dinh provided for
Since
early this year, Nam Dinh has supplied to
Thai
Binh province Poultry and Agricultural Farm Association Chairman Quach Thuoc
said that Thai Binh was supplying to
In the
first 10 months of this year, Thai Nguyen province launched onto the market 7
million poultries and about 500,000 pigs, 50-60 percent of which were sold to
Lao
Cai, Son La and Vinh Phuc provinces worked with
Although
it hasobtained initial achievements, the programme still needs to be improved
as its range of products remains poor and the programme has not satisfied
market demand in terms of quantity.
Hanoi
Department of Agriculture and Rural Development Director Hoang Thanh Van said
that agricultural businesses in the capital have met only 69, 32, 84, 33 and
18 percent of the city's demand for cattle meat, fish, poultry eggs, fresh
vegetables and fresh fruit, respectively. Therefore,
At a
recent conference reviewing 10 months of cooperation between the Hanoi
Department of Agriculture and Rural Development and its counterparts in the
18 provinces and cities, representatives from localities expressed desire to
increase the connectivity between the participating parties, including that
with businesses and co-operatives to invest in the production and sales of
agricultural products for farmers.
Lao
Cai province Department of Agriculture and Rural Development Director Ma
Quang Trung proposed that Hanoi expand cooperation with Lao Cai in the
production and sales of products that are Lao Cai’s strengths, such as Seng
Cu rice, tea, off-season vegetables, highland fruit (pears, peaches, plums,
grapes, kiwi and cherry), black pig and black chickens.
The
Hung Yen province Department of Agriculture and Rural Development also
proposed that
Hanoi
Department of Agriculture and Rural Development Director Hoang Thanh Van said
that to increase connectivity in product sales between Hanoi and the other
provinces and cities before, during and after the coming Lunar New Year which
will fall by the end of the next January, localities should strengthen
cooperation and information exchange in order to control the quality of
products to be launched onto the market, improve accountability in disease
prevention and quarantine, and control cattle slaughtering and origins to
help protect consumers.
Foreign
investors refind confidence
Although
Israeli
billionaire Igal Ahouvi recently kicked off his first project in
Meanwhile
representatives from the Walton International Group recently visited
According
to Walton International Group marketing director Christopher Koh, real estate
in
Koh
especially expressed his interest in neighbourhoods lying just outside the
city centre.
According
to Mauro Gasparotti, executive director of real estate consultancy firm
Alternaty Vietnam, there is a growing interest specifically towards
“There
are tangibles signs of increased confidence among international investors
regarding the real estate market in
A
large number of investment funds and private companies were searching for
deals over the past few years with limited results due to discrepancies on
land value and achievable returns on investments. Investor interest dried up
in 2012 and the first half of 2013 when the financial situation was unstable
and the future outlook seemed bleak. Investors were increasingly focused on
alternative investment destinations such as
However,
Gasparotti noted that over the past few months, as the financial situation
seems to have stabilised with inflation brought under control, interest from
these groups has returned because
According
to Rudolf Hever, another executive director of Alternaty, there were
fundamental changes and game changing trends occurring right now in the
region.
“Those
who will prosper over the next decade will be the ones who recognise and
embrace the opportunities that are emerging,” Hever noted.
The
rapid rise of the middle class in Asia is only just beginning and is led by
“This
segment will have a strong appetite to travel abroad, and their target
destinations, one of which is clearly
A few
problems remain to be solved, such as bad debts, but
“The
local developers and land owners have been through tough times, but they are
now finding increasing reasons for optimism,” he added.
$200
million allocated for Starlake project
Korean-backed
Tay Ho Tay Development Company has received a $200 million boost from the
Korean Development Bank for its urban development Starlake in
The
funds will go into the project’s first phase, thus far totally invested in by
Daewoo E&C. The Korean Development Bank’s (KDB) injection will enable
Daewoo E&C to continue the project over the next two years and have its
infrastructure system up and working immediately after getting land clearance
from the Hanoi People’s Committee.
As
well as infrastructure, the funds will go toward starting construction on the
villa and housing complex expected to start in 2014.
The
KDB made the financial commitment after a seminar in
KDB is
a major stake holder in Daewoo E&C with more than 50 per cent and is also
responsible for mobilising capital for the group’s projects.
According
to Tay Ho Tay, the company has already invested more than $94 million into
land clearance and compensation and nearly 80 per cent of the land needed for
the first phase has been cleared.
Starlake
has been in stasis since a ceremonial groundbreaking in January last year for
several reasons.
Starlake
would have a total investment of around $2.5 billion and is planned to be a
modern, environmentally-friendly urban area by 2019 with 25,000 residents.
The
project will include a promenade, parks, trees and lakes alongside the more
traditional urban structures, as well as 25 hectares of open space devoted to
public service activities and a headquarters building.
The
developer hopes it will be a cultural hub and an international commercial and
financial centre that follows the orientations of
The
project spans Tay Ho, Cau Giay and Tu Liem districts and joins up with the
diplomatic area in the north with road linkages to the city’s spacious main
arteries.
Starlake
also plans to link up with a range of other key projects in
The
project’s entertainment and retail businesses are expected to promote
cultural exchange between
It is
high time for
Pham
Van Thuyet, an expert at the World Bank, told local reporters in HCMC that it
is time now for drastic changes in FDI attraction, prioritizing investment in
supporting industries.
Thuyet
noted how the FDI flow had brought about positive changes in the economy, but
such developments alone are not enough for
“In
the 1990s, bicycles overwhelmed the street, but they were being gradually
replaced by motorcycles and cars. However, the regrettable issue is that all
such motorcycles and cars are assembled rather than manufactured in Vietnam,
meaning the country still lacks a genuine automotive industry,” Thuyet said.
Another
drastic change benefiting the local economy greatly is the country’s trade
liberalization as
Thuyet
urged the Government to make changes to FDI policy so as to work with foreign
investors to build a solid industrial foundation, especially the development
of supporting industries. They should initiate talks with foreign investors
on investment stories, the expert said.
“This
is a time when
Thuyet
observed that
Thuyet
doubted the possibility of
Therefore,
to escape chaotic industrial development and to avoid stagnation that the
country has suffered over the past few years,
Over
10,000 cars sold in October
The
local automobile market kept growing in October and hit sales of over 10,000
units for the first time this year.
According
to the latest report of the Vietnam Automobile Manufacturers’ Association
(VAMA), nearly 10,300 cars were consumed in the local market last month, up
5% against the previous month and 29% against the same period of 2012.
This
was the first month this year auto sales surpassed 10,000 units and the
seventh straight month car sales volume reported a year-on-year increase.
Explaining
the strong sales, local firms said that consumers usually have high demands
for cars in the final months of the year. In addition, the ninth Vietnam Auto
Show in HCMC in September helped push up sales as many enterprises introduced
new cars and offered preferential sales policies.
Last
month, over 7,800 domestically-assembled cars were sold, up 2%
month-on-month, while sales of imported cars increased 17% to nearly 2,500
cars. Of which, Honda Vietnam sold 422 automobiles, up 94%, Vinamazda sold
438 cars, up 242%, Ford Vietnam 890 cars, a 66% increase, and Toyota Vietnam
with over 3,200 cars, up 28%.
Between
January and October, over 87,000 automobiles were consumed in the country, up
19% year-on-year. Of which, there were over 75,700 locally-assembled cars, up
18%, while imported cars increased 25% to 11,400 units.
Local
manufacturers expect that the market will keep improving and car sales will
stay at over 10,000 units a month until the year-end. Big cities in the
country have also reduced registration fees for new cars, stirring up the
market.
VAMA
expects that 109,000 automobiles will be consumed in the country this year,
up by 9,000 compared to estimates earlier this year.
Meanwhile,
around 3,000 cars were imported to
In the
first 10 months, the nation imported around 28,000 cars worth US$551 million,
up 30% and 12.9% year-on-year respectively.
HAGL
to sell oversea-made sugar to local firm
Hoang
Anh Gia Lai Company (HAGL) is offering 30,000 to 40,000 tons of sugar it has
produced in
Earlier,
some sugar companies expressed concerns over HAGL’s investment in sugar
production in
Nguyen
Van Loc, general director of Bien Hoa Sugar Company, told the Daily that if
Bien Hoa buys sugar from HAGL, it will mainly buy crude sugar and then refine
it and export to other markets.
Therefore,
the deal between the two companies will not cause any impacts on production
and business of other sugar firms in the country, Loc said.
However,
Doan
Nguyen Duc, chairman of HAGL, said that the enterprise is negotiating with
Bien Hoa Sugar to carry out transactions as mentioned above.
Earlier,
speaking at the annual general meeting in April, Duc had said that sugar
produced in
If
Vietnamese firms could export sugar to
However,
Duc told the Daily via telephone on Wednesday that HAGL has plans to offer
its sugar in many markets. The enterprise wants to offer sugar in
Local
enterprises have faced many difficulties in exporting sugar to
In the
2013 sugarcane crop that began in October, material sugarcanes in the Mekong
Delta have been bought at just VND850 per kilo of cane, down by VND100-150 a
kilo against the same period last year.
First
Aeon store to open in early Jan
Japan-invested
Aeon Vietnam will open around 20 shopping malls across Vietnam in the next
seven years, with the first one scheduled for opening next January, said the
company’s chief executive officer.
General
Director Yasuo Nishitohge said at a scholarship awarding ceremony in HCMC on
Thursday that its first shopping mall in
“Aeon
Tan Phu Celadon will have total floor space of 80,000 square meters, with
half being the commercial area comprising of the shopping mall and a section
for lease with some 300 stands,” he said. The remaining half will be sparking
space able to accommodate 1,000 cars and 2,800 motorcycles, he said.
After
this first mall, the company will open its Aeon-Binh Duong Canary mall next
October, and Aeon Mall Long Bien in
“We
plan to open 20 shopping malls in
Regarding
the first shopping mall, Aeon Vietnam has poured some US$100 million into the
project. This shopping center is part of the 82-hectare complex
Each
Aeon shopping mall will recruit some 2,000 people. To do so, Aeon Vietnam has
over the past three years awarded scholarships to Vietnamese students
learning the Japanese language, especially those at the
Nishitohge
said that in this year’s academic year, his company offered 60 scholarships
worth VND6 million each for students of the two universities. Until now,
nearly 200 students have benefited from the company’s scholarship fund.
The
CEO furthered that Aeon has maintained an international scholarship fund
since 2006 by deducting 1% of the group’s gross profits coupled with
donations from other philanthropists.
In
another scholarship award event last year, Nishitohge said Aeon Group would
cooperate with Vietnamese producers and suppliers to bring domestic products
to its global retail network. He said then that Aeon had held a meeting for
suppliers in the city as a first move to secure local supply. The enterprise
would pay attention to export products
Bayer’s
world tour arrives in Vietnam
Bayer’s
Global Anniversary Tour initiated to mark the Germany-headquartered
multinational company’s 150th birthday has arrived in
The
four-day event, attracting thousands of visitors and Bayer Vietnam’s
partners, featured multimedia platforms combining both entertainment and
education with an aim to disseminate information about the company to the
audience, reflecting Bayer’s commitment to community development.
The
world tour, which began in Germany’s Leverkusen in late February, has taken
in 30 destinations around the world, showing to Bayer’s partners how the
group has made its contributions to improving the livelihood of millions of
people in the world, Bayer Vietnam said in a statement.
“Bayer
“With
vivid illustrations from the real life, the exhibition clearly indicates how
Bayer has contributed to improving the lives of millions of people in the
world,” he said in the statement.
At the
exhibition, visitors were encouraged to interact with the exhibits being 22
boxes, each containing a capital letter that when combined together
represents Bayer’s mission of “Science for A Better Life.” Each letter stands
for a topic related to Bayer, such as E standing for energy-efficient
mobility or S representing science.
Visitors
could also engage themselves in the various games at the exhibition, by which
they would learn about Bayer’s products or services.
The
exhibition also incorporated other activities, such as a dinner party for
Bayer’s partners, a discovery festival for students, and a seminar on
sciences for a better life.
Bayer
is a multinational group specializing in such key areas as healthcare,
agriculture, and high-tech materials. The group last year obtained total
revenue of 39.7 billion euros.
Hoa
Sen to raise output by 20%
The
management board of Hoa Sen Group (HSG) plans to increase its production
capacity by 20% in the next fiscal year, said general director Tran Ngoc Chu.
In the
fiscal year 2012-2013 which ended last month, Hoa Sen earned an estimated
VND11.752 trillion in revenues. Meanwhile, its after-tax profit was VND580
billion, increasing by up to 58% year-on-year and equivalent to 145% of the
target.
With
such results, HSG is one of the listed enterprises to beat its targets and
achieve good business results in 2013 on the stock market.
HSG
continues to prove its leading position in producing roofing sheets in
Its
sale volume rose by 33% from the fiscal year 2011-2012 to over 600,000 tons,
including an export volume of 279,000 tons, up 55% and accounting for 122% of
the target.
“This
is the first year we have exported steel roofing sheets to Africa and the
absorption rate there is relatively good,”
“We
will expand the exporting markets to Eastern Europe,
Regarding
risks of anti-dumping lawsuits in some regional markets, HSG has settled all
the lawsuits with
According
to Chu, HSG was still working on the target ‘three 1-s’, which are sale
volume of 1 million tons, revenues of US$1 billion and after-tax profit of
VND1 trillion.
To
achieve this, HSG is increasing the production capacity and expanding the
closed production process via investing in the second phase of Hoa Sen Phu My
steel sheet plant. The fifth production line is expected to be put into
operation by September, 2014.
HSG
has spent over VND20 billion on social activities this year. Besides, it
signed a deal on Tuesday to grant VND1.5 billion to
Last
month, HSG donated 22,000 square meters of roofing sheets worth around
VND1.25 billion for people in
Dai-ichi
Life
Dai-ichi
Life
At the
Asia Insurance Review Awards 2013 in Singapore last week, judges honored the
company for its “commitment of substantial resources and time to achieve
significant and sustainable benefit to the community in environmental arenas
- the outstanding community initiative of providing clean drinking water
project for rural pupils in the country.’’
Takashi
Fujii, chairman and general director of Dai-ichi Life
“With
our corporate vision ‘Thinking People First,’ Dai-ichi Life
Last
year, Dai-ichi Life Vietnam in partnership with East Meets West Foundation
initiated a community project entitled “For A Better Life” to provide clean
drinking water to over 18,000 pupils in rural areas of 10 provinces in
Vietnam. The company donated US$50,000 to install 24 UV water filtration
systems in 24 rural schools nationwide.
Dai-ichi
Life
Interest
rates inch up as year-end cash demand rises
Short-
and medium-term deposit rates have been rising steadily since early this
month as banks compete for funds to meet the cash demand expected to rise in
the final months of the year.
Before
the current rate rally, the deposit rate for months on end at most banks was
hovering around 6% a year or less for short-term deposits, while the rate for
longer terms of between six months and one year was some 7%.
But
the rate at most banks has risen since a fortnight ago to 6.5-7% for
short-term funds and 7-7.5% for tenures of up to one year, while longer-term
deposits are subject to rate of 8-9%.
Le
Thanh Trung, deputy general director of HD Bank, explained that it was
reasonable when interest rates inched up at this time as the demand for cash
to pay wages and bonuses as well as capital to import goods for the upcoming
shopping season is running high.
“Banks
have to prepare for cash to meet the high demand,” he said.
Phan
Huy Khang, CEO of Sacombank, reasoned that many debts were restructured from
short-term to long-term debts, which also impacted the cash flow, resulting
in higher demands.
Another
banker in HCMC said the race to mobilize funds at rates higher than the
ceiling of 7% was not quite widespread, with smaller banks offering a deposit
rate of 8-9% for short-term deposits of two to six months, or some 1-2
percentage points higher than at big banks.
A
senior leader of the central bank, meanwhile, cited several reasons for the
rate hike. These include the slower cash flow at smaller banks, the
increasing amount of bad debts at certain banks, and the dwindling injection
of funds by the central bank via open market operations, he said.
Therefore,
most banks seek to attract funds from the public to repay due deposits at the
year’s end as well as to meet the rising demand for capital, as the credit
growth often accelerates in the final months of the year.
Another
reason, said the source, is that certain smaller banks have used short-term
deposits to make long-term loans, and now they have to attract funds to
compensate for the shortfall when such deposits are due.
At
bigger banks, however, the demand for funds is also higher since many of them
have spent big amounts on Government bonds, resulting in short positions.
Around VND170 trillion has been spent by banks on such bills, said the
central bank’s official.
The
source said that the amount of deposits at banks now totals between VND150
trillion and VND170 trillion, while banks should inject some VND100 trillion
into the economy if the overall credit growth is to attain 10% as targeted
compared to the current growth rate of 7%. Therefore, the rate hike now is
understandable, the source said.
All
industry sources said the rate hike was not caused by liquidity problems, as
banks still have ample funds since deposits still outpace the credit growth.
As an evidence, the total amount of inter-bank transactions since early this
year has fallen, which show that banks are not borrowing from one another.
Ten-month
imports, exports hit US$217.59 billion
Latest
data from the General Statistics Office showed that total imports and exports
hit US$25.12 billion in October, up 11.9 percent compared to the previous
month.
Of
which, exports reached $12.61 billion, up 12.8 percent and imports touched
$12.51 billion, up 11 percent, resulting in a trade surplus of more than $100
million in October.
Since
the beginning of this year, total import and export turnover in the first ten
months was at $217.59 billion, up 15.9 percent year-on-year, with exports at
$108.72 billion and imports at $108.87 billion, up 16 percent and 15.9
percent year-on-year, respectively.
Total
imports and exports of foreign direct investment sector in first ten months
reached $128.65 billion, accounting for 59.1 percent of the country’s total
imports and exports.
By the
end of October, trade gap was at $146 million, down 6.8 percent compared to
the same period last year.
Soc
Trang Expands Dairy Farming
After
nearly 10 years, the dairy cow herd of the Mekong Delta province of Soc Trang
has risen to 4,000 head, a sharp jump from the initial 477 in 2004. Soc Trang
is calling for investment in dairy farming projects as part of its
“Developing dairy cows in Soc Trang Province in 2013-2020” strategy.
The
cowshed of Lieu Van Do, a member of Evergrowth Cooperative in Vien An
Commune, Tran De District, Soc Trang Province, is now home to 10 cows, from
just one in 2004. Each of the cows earns Do VND20-25 million a year, a dream
profit for many farmers!
Do is
one of more than 1,500 farmers who have succeeded in rearing dairy cows in
Soc Trang. According to Tran Hoang An, director of Evergrowth Cooperative,
there are now 3,957 cows raised in the province under the cooperative’s
management. Dairy farms are mainly in Tran De, My Xuyen, My Tu and Chau Thanh
districts. On average, a farmer can gain annual turnover of VND45-50 million
and profit of VND20 million per cow.
Evergrowth
has six milk purchasing outlets in Tai Van, Thuan Hung, Tham Don, Vien An,
Dai Tam and Thuan Hung communes.
The
cooperative has set out standards with which farmers are able to rear milk
cows in a sustainable way. The cooperative also maximizes benefits for
farmers, from ensuring milk purchases at highly stable prices to supplying
inputs such as bran, veterinary medicines and services at low prices. A team
of five well-trained veterinarians and 27 veterinary collaborators has been
maintained to help farmers raise cows and produce milk in accordance with a
high-quality technical process that can minimize costs to increase profits.
A
dairy cow can produce 13kg a day this year from 7kg in 2006. The volume of
purchased milk has also increased steadily, from 508 kilos in 2004 to 13.5
tons in 2012 and nearly 16 tons in the first 10 months of 2013. The main
buyer of Evergrowth’s milk is FrieslandCampina Vietnam (FCV) in Binh Duong
Province. In addition, FCV has signed a memorandum of understanding with Soc
Trang Province, according to which, FCV will invest 512,395 euros in building
a model farm to rear 80 cows, with 50 of them ready to give milk after three
years.
The
Soc Trang Province People’s Committee has requested the Department of
Agriculture and Rural Development to devise the “Developing dairy cows in Soc
Trang Province in 2013-2020” project. Cow rearing farms will be located in
Van Binh, Lieu Tu and Thach Thoi Thuan communes in Tran De District. By 2020,
all communes in Tran De District will have dairy farms in addition to Thanh
Phu and Thanh Quoi communes in My Xuyen District; An Hiep, Phu Tan, Thuan Hoa
and Ho Dac Kien communes in Chau Thanh District; and the suburbs of Soc Trang
City.
Soc
Trang Province has sent a document to the Government asking for the approval
of using 805 hectares owned by Soc Trang Forestry Co. for rearing dairy cows.
In the 2014-2016 period, there will be 50 farms, each covering six hectares
with 80 head including 50 ready to give milk. Similar figures are also set
for the 2017-2020 period.
Evergrowth
Cooperative has also called for support from FCV and the Netherlands’ Rabo
Foundation in its effort to raise the milk cow herd and profit. In 2013, the
4,000 dairy cows are expected to yield a profit of VND4.2 billion. In 2014
and 2015, the figures will be 4,500 and VND5.9 billion, and 5,400 and VND6
billion, respectively.
Source:
VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
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Chủ Nhật, 24 tháng 11, 2013
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