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BUSINESS IN BRIEF 26/11
First
private Vietnamese investment project in US
A
Vietnamese home furnishing product maker in the southern
The
Vinh Long Import-Export Manufacturing Joint Stock Company (SJC) produce a
wide range of home furnishing products made from natural fiber and mixed with
industrial materials.
Its
major products include boxes, bags, baskets, placemat, furniture, decorative
accessories, and carpets.
The
US$5 million project in Morrilton city will manufacture kitchenware tailored
to the North American market.
Arkansas
Governor Mike Beebe welcomed Vinh Long’s decision to expand project in the
city, saying it will help boost the city’s economic development.
Vietnamese
Ambassador to the US Nguyen Quoc Cuong said the project is yet another
demonstration of the fruitful economic and trade ties linking
Based
in Vinh Long city, the company’s 2012 revenue exceeded US$20 million. It is
currently employing 10,000 workers.
Dunkin'
Donuts enters Vietnam
Dunkin'
Donuts, an American global doughnut company and coffeehouse chain based in
This
is the result of a franchise deal signed in early 2013 between Dunkin' Donuts
and its partner Vietnam Food & Beverage Services Co. Ltd. (VFBS) under
the Imex Pan Pacific Group (IPP Group).
At the
inaugural ceremony, John Varughese, Vice President of Dunkin' Brands in the
Middle East and Southeast Asia and
Dunkin'
Donuts has established 10,800 restaurants across the globe, including nearly
900 in the
Over
US$1.4billion for central region expressway
A
ground-breaking ceremony was held in Quang Ngai province on November 24 for a
140-km expressway linking Danang city and Quang Ngai in the central region.
The
project will be built at a total cost of US$1.475 billion in official
development assistance (ODA) sourced from the Japan International Cooperation
Agency (JICA), the World Bank (WB), and the Vietnamese Government.
Once
completed in 2017, the four-lane expressway will enable vehicles to travel at
a design speed of 120km/h.
The
road will play a key role in connecting large economic centres in Danang to
Chu Lai economic zone (EZ) in Quang
The
route is also expected to help reduce traffic congestion and fuel economic
development in the central region.
Addressing
the ceremony, Deputy Prime Minister Nguyen Xuan Phuc urged investors and
bidders to work closely with local authorities to ensure the project runs to
schedule in a safe and efficient manner.
He
also asked local authorities to create favourable conditions for displaced
residents to stabilize their lives in the new resettlement areas.
November
CPI kept at low level
The
low November figure brought the eleven-month index to 5.54%, and the entire
year’s CPI to estimated 6.2-6.3%.
This
will help keep the country’s inflation rate at the lowest level ever seen in
the past decade.
The
GSO said that the CPI edged up 0.29% in urban areas and 0.37% in rural areas
in November. The Mekong Delta city of
Goods
items experiencing high prices in November included food and foodstuff,
healthcare services, building materials, garments, footwear, beverage,
tobacco, and tourism services.
Post
and telecommunications services saw a CPI reduction of 0.2%, and transport
costs also reported a decline of 0.34%.
Gold
prices hit record low
Gold
prices on the domestic market have declined sharply to around VND35.7
million/tael – a record low since June 28. However, they are still VND4.2
million/tael higher than those on the global market.
At the
November 25 trading session, DOJI Group offered VND35.78-35.84 million/tael,
VND90-100,000/tael lower than two days ago, while Phu Nhuan (PNJ) gold was
traded at VND35.79-35.85 million/tael.
Gold
prices on the Vietnamese market are forecast to drop to less than VND29
million/tael as ever recorded last June.
On the
world market, gold was listed at US$1,242.4/ounce, close to the four-month
lowest level of US$1,236/ounce reported earlier last week.
EIU
affirms
A
The
EIU said after several years of achieving low economic growth, the Vietnamese
economy has showed signs of recovery with increasing investment in the
manufacturing sector. Although there remain shortcomings in terms of
macro-economic instability,
The
Communist Party of Vietnam is fully aware of the need to pay due attention to
job training for young labourers and improving people’s living standards
along with maintaining political stability.
One of
the first measures taken by the Vietnamese Government is to increase the
maximum salary since the beginning of 2013. The next pay rise will come soon
when inflation is well under control.
The
foreign-invested sector in
Meanwhile,
some the world’s leading retailers also want to penetrate the potential
market.
The
growing investment in highly-valued industries shows that
With
signs of improvement in manufacturing and business, as well as in the foreign
invested sector, there is high hope about
Vietnamese
businesses are showcasing a wide range of farm products, food and drinks at
the 2013 Asia-Pacific Food Expo (APFE) in
This
is a good opportunity for local businesses to seek trade partners,
distributors and consumers in
The
event, the largest of its kind in
Steven
Ng, a member of the APFE organizing board, highly valued Vietnamese products
and hoped that more exhibitors will come from
5.8%
GDP target for 2014 realistic?
The
target has been set by the National Assembly after weighing up the pros and
cons of the domestic and global landscape.
Evidence
suggests that despite a significant period of difficulty,
The
government’s measures to ease business difficulties and support people’s
lives such as tax breaks, lowered interest rates, and stable currency
exchange rate, have paid off, creating the prerequisite for the economy to
bounce back in 2014.
“The
recovery of the global economy will bring impetus to the
Ministry
of Planning and Investment (MPI) statistics show the national economy is
gaining momentum, with GDP growth increasing steadily on a quarterly basis,
from 4.76% in Q1 to 5% in Q2 and 5.54% in Q3. The Q4 figure is estimated at
between 5.6-5.7% to bring the entire year’s growth rate to 5.4%.
In a
report to the current National Assembly session, Prime Minister Nguyen Tan Dung
highlighted the important factors behind economic recovery in 2014, stating
that the government will continue with flexible monetary, tight fiscal, and
appropriate interest rate policies along with tight inflation controls and
the ironing out of existing problems for businesses.
Dr
Tran Hoang Ngan, a member of the National Monetary and Financial Policy
Advisory Council, says the government has identified barriers against
national economic growth and has taken steps towards removing them. Its
resolutions on facilitating business operations have been implemented and
reviewed gradually to overcome weaknesses.
The
government has also prioritised finalising institutions and laws to
accelerate economic restructuring – a compulsory requirement for continued growth
in 2014-15.
“It is
imperative to build on the achievements we have made in 2013, including
controlling inflation, maintaining low interest rates, fixing a steady
currency rate and keeping trade deficit at around 6%,” says Ngan.
Dr
Tran Du Lich, former director of the Ho Chi Minh City Institute of Economics,
believes lowering lending and deposit rates, together with other
macro-economic policies, will create optimum conditions for economic growth.
The
crux of the matter, according to Lich, is realising major tasks and solutions
the National Assembly has approved in its resolution on socio-economic
development for 2014, with priority given to improving administrative reform
to create a sound investment environment.
“We
need a transparent mechanism for controlling the macro-economy.
However,
there is growing concern about high inflation, commercial bank’s
noon-performing loans, and business bankruptcy in 2014 that will slow down
economic recovery.
The
government has identified these challenges and introduced viable solutions
for keeping the economy on the right track.
FDI
flow into
The
total newly-registered and additional FDI capital poured into Vietnam in the
first 10 months of this year hit US$19.2 billion, a year-on-year increase of
65.5 percent, outdistancing this year’s target of US$13-14 billion.
According
to statistics from the Ministry of Planning and Investment’s Department for
Foreign Investment, during the January-October period
Meanwhile,
US$6.16 billion was added to 393 ongoing projects, a year-on-year rise of
42.5 percent.
The
growth is attributable to efforts by the Government, ministries and
localities in improving the business environment and simplifying
administrative procedures to attract more foreign investors.
However,
Chief Representative of Alstom Group in Vietnam Henri Noirhomme suggested
that to keep current investors and attract new ones,
He
also asked banks and financial organisations to focus on solving bad debts.
RoK
funds hi-tech zone project in Can Tho
The
Mekong Delta
Funded
by the Government of the
Deputy
Prime Minister Vu Van Ninh told launch ceremony attendees the project is the
result of a bilateral cooperation programme on nuclear power, energy, and
industry between
It
will fuel technology development and encourage business investment in local
agriculture and fisheries, he said.
The
Deputy PM asked Vietnamese and RoK investors and contractors to coordinate
closely to ensure the project will take shape in 2014 as planned.
The
zone is scheduled to run trials one year later as personnel training and
technology transfer processes continue.
Korean
experts will help Can Tho install necessary equipment and train local
engineers. A number of Vietnamese officers will visit the RoK for additional
professional development.
ADB
provides US$50 million loan to support SMEs
The
Asian Development Bank (ADB) has committed a US$50 million concessional loan
to boost the development and competiveness of small and medium-sized
enterprises (SMEs) in
A
document to this effect was signed in
“While
the Government made great efforts to enhance policy reforms to support the
creation, survival and growth of SMEs, more needs to be done to foster a greater
scale of SME development essentially required for the country to achieve more
sustainable and inclusive growth,” said ADB Country Director for Vietnam
Tomoyuki Kimura.
“ADB
firmly supports the Government to successfully manage the continued reform agenda
aimed at improving the business environment for the development of SMEs and
the private sector in
The
loan has a duration of 25 years with an annual interest rate of 2%.
It
will support SME development efforts in
The
Vietnamese Government has assisted the development of SMEs with a combination
of landmark policy reforms since approval of the Enterprise Law in 2000.
As a
result, by the end of 2011, the number of registered enterprises in
The
domestic private sector accounted for 59% of total employment in 2011, up
from 29% in 2000.
SMEs
are now considered the key generators of employment and income, and drivers
of growth and poverty reduction in the country.
Vietnamese,
Japanese localities strengthen cooperation
The
document was signed at a working session between Chairman of the Thua
Thien-Hue provincial People’s Committee Nguyen Van Cao and
The
two sides committed to strengthening the relations for mutual benefits while
respecting each locality’s characteristics, exchanging information and
cooperating in education-training, preservation of cultural values, tourism
and trade.
Cao
said
The
country has so far provided US$500 million in ODA for the province, he said,
adding that eight Japanese partners have implemented 20 cooperative projects,
mostly in culture, in the locality.
The
two sides have also enjoyed good relations in education and training, human
resource training and health care, Cao said.
The
Chairman said he hopes to receive Japanese ODA for the building of an
international university in the province and suggested that the two
localities focus their cooperation on cultural heritage preservation,
cultural exchange, and training.
Governor
Keiji Yamada pledged to work hard to sign an agreement on cooperation with
Thua Thien-Hue next year.
The
President, who is on a State visit to Vietnam from November 21-24, said his
country boasts a vast land area and a developed animal husbandry sector, so
Mongolia and Vietnam can cooperate in meat trading, as well as in other
sectors of great potential in Mongolia, such as coal mining, oil exploration
and tourism.
He
added that
The
President emphasized that his country has issued the Investment Law with many
favourable policies for foreign investors.
Deputy
Chairwoman of the HCM City People’s Committee Nguyen Thi Hong said
She
noted
The
forum provided a good chance for Mongolian businesses to study Vietnamese
market, especially
She
affirmed that
Vietnamese
enterprises used the seminar to promote products made in
Korean
Importers Association Chairman, Shinn Tae-Yong noted the 8,000 importers from
his association are responsible for over 80% of the RoK’s imports.
Korean
companies have become interested in
Shinn
Tae-Yong believes the seminar offers both countries’ business communities a
chance to contribute to raising bilateral trade turnover by expanding
mutually beneficial trade and investment relationships.
Local
and international experts attended a November 22 forum in
Themed
“Growth Recovery and Economic Restructuring: Opportunities and Challenges”,
the Central Institute for Economic Management (CIEM) and the German
Development Cooperation GIZ organised the forum as part of its Macroeconomic
Reform Programme.
Participants
assessed
Experts
hope their suggestions will serve policy makers and state management
officials as references during the continuing process of reform.
Acting
CIEM President Nguyen Dinh Cung said the master plan for economic restructuring
defines a relatively rigid framework for growth model transformation.
Progress is still in its initial stages.
“There
remain many difficulties and challenges in implementation,” he said.
Dr.
Cung emphasised the pressing need to shift the focus of economic
restructuring policies from aggregate demand management to supply-side reform
solutions.
GIZ
Chief Technical Advisor Dr. Michael Krakowski said its Macroeconomic Reform
Programme intends to strengthen
He
believes the forum’s outcomes are valuable contributions to
Ten
months’
Vietnam
Customs and the General Statistics Office (GSO) report
Telephone
and component exports’ US$1.12 billion in revenue was 47.9% higher than a
year earlier and accounted for more than 30% of the country’s total
Footwear’s
US$445.8 million in revenue marked a 9.3% rise, while garments and textiles
earned 5.3% more or US$392 million.
Transport
vehicle and spare part exports, with US$65.4 million in revenue, enjoyed the
highest annual growth rate of 109.8%.
Export
earnings growth was also seen from seafood (26.8%); pepper (23.7%);
confectionery and cereal products (27.2%); plastic products (4.1%); rattan,
bamboo, and carpet (19%); and wood and wooden products (15.9%).
Confectioners
become hungry for Tet
Leading
domestic confectioners including Bibica, Kinh Do, Trang An, Biscafun and Hai
Chau have basically completed plans to prepare goods for the upcoming Tet
(Lunar New Year), which falls on January 31, 2014.
Despite
forecasts that purchasing power this Tet will not be as high as in previous
years, major confectioners still plan to increase production by 5-20 per cent
over the last Lunar New Year season.
Nguyen
Quoc Hoang, deputy general director of the the Bien Hoa Confectionery
Corporation, or Bibica, told Dau Tu (Vietnam Investment Review) that they
plan to supply nearly 1,300 tonnes of confectionery by the end of this year
and for Tet, up 10 per cent over the previous year.
Its
wide distribution network of 110 distributors and 65,000 sales points has
enabled the company's products to be present in all areas of the country, he
said.
The
Kinh Do Confectionery Joint Stock Company has said it plans to produce 4,500
tonnes of confectionery for this Tet, a year-on-year increase of about 20 per
cent.
The
company, which accounts for 30 per cent of the domestic confectionery market,
has also said it expects to keep prices stable for this Tet.
Besides
traditional confectionery lines, the company will continue providing to the
market top-ranking products like Korento cookies and many other kinds of cake
and candy, it said.
The
Quang Ngai Confectionery Factory (Biscafun) has completed a high-grade
product catalogue for Lunar New Year 2014.
A
representative of the Trang An Confectionery Joint Stock Company in Ha Noi,
also confirmed that they have completed preparation of goods for this Tet
season.
The
company is committed to not increasing prices since confectionery production
costs have been somewhat stable this year, the representative said.
With
consumers tending to tighten spending amidst the ongoing economic crunch,
confectionery producers have focused more on launching products with
attractive designs, good quality and reasonable prices that can serve as Tet
gifts.
Industry
insiders are hopeful that with prices 20-40 per cent cheaper than imported
products, and having the advantage of having clear origins, local
confectionery products will dominate the market this Tet season.
They
say the bigger domestic firms have invested in modern lines and good quality
raw material to make high-quality products. Locally-made confectionery also
is delicious, good-looking and hygienic, they add.
Rising
shrimp exports boost industry growth
Shrimp
breeders from central and southern provinces are pleased that exports and
prices are on the rise as the local tra fish industry had been in troubled
waters.
Over
the last two weeks, shrimp have been selling between VND190,000 (for 20gr
shrimp) and VND320,000 (for 50gr shrimp) per kg in the Mekong Delta.
Ngo
Thi Hau from Phuoc Long Commune in
Damages
caused by pests to the local shrimp-breeding industry have been reduced
greatly, according to figures released at a conference held by the Ministry
of Agriculture and Rural Development in Can Tho earlier this month.
The
areas under shrimp breeding affected by pests in the first 10 months of the
year fell by half compared with the same period last year.
This
year Ca Mau Province, the largest shrimp breeding locality in
As of
early October, the province attained total production of 242,700 tonnes of
shrimp, accounting for 85.2 per cent of the year's target.
The
delegate from the Mekong
Pham
Khanh Ly, deputy chief of the aquaculture division under the Ministry of
Agriculture and Rural Development, said the shrimp breeding sector had
improved from two years ago when many shrimp breeding areas across the
country were hit by pests, causing big losses to farmers.
This
year, owners of many shrimp breeding ponds have earned high profits as the
demand for Vietnamese shrimp from big markets such as the
Shrimp
exports significantly contributed to the export turnover of US$5.5 billion
attained by the local seafood sector in the first 10 months of 2013, an
increase of 7.3 per cent compared with the same period last year.
Shrimp
exports are expected to reach $2.8 billion for 2013, up by 27 per cent over
2012, and an increase of $300 million to $400 million compared with targets
set earlier this year.
VASEP
said they were "significant figures" as the country saw slumps in
exports of a number of other seafood products over the same period, including
a decrease of 2 per cent scored by tra fish, a 4.5 per cent decrease by tuna,
and a 12.3 per cent decrease in crab exports.
HCM
City is facing fines of VND2.5 billion ($119,050) per day for delays in site
handover for the Metro Line No 1 that would link Ben Thanh Market in District
1 and Suoi Tien Tourism Park in District 9.
Construction
of the Metro Line No 1 began on August 28 last year. It was scheduled to become
operational in 2018.
Under
a contract signed with the consortium of
The
HCM City Management Authority for Urban Railways (MAUR) has extended the
handover schedule on several occasions, with the last one having been set for
September 30. But now some 100 households remain living on the site.
In an
announcement on the project's construction progress released in late October,
the city's People's Committee said the belated site clearance was mainly in
Thu Duc District and Di An Town in
According
to the deputy chief of MAUR, Le Hong Ha, the city authority has been
negotiating with the Sumitomo - Cienco 6 consortium to reduce the fines set
for delays in site handover.
He
said it was difficult for
To
hand over the site to the contractor as soon as possible, the city's
authorities have asked Thu Duc District and Di An Town to accelerate site
clearance compensation and re-settlement formalities for households living on
the site.
The
nearly 20-km-long Metro Line No 1 would pass through the city's districts of
1, 2, 9, Binh Thanh and Thu Duc, and Di An Town of Binh Duong Province.
The
first 17.1-km of the line is an overhead section that runs from Ben Thanh
Market in District 1 to the Suoi Tien area in District 9.
The
11-station overhead section, from Ba Son Shipyard in District 1, will run
along Van Thanh Park and the Tan Cang area in Binh Thanh District, and
Under
a contract signed with MAUR, the consortium of Sumitomo - Cienco 6 will
design, survey, execute, supply equipment, test, operate, offer utility
services, and maintain stations of the 17.1-km overhead section of
The
package is worth $560 million.
The
Metro Line No 1 also consists of a 2.6-km underground section connecting Ben
Thanh Market and Ba Son Shipyard, with three undergound stations. It is
divided into three packages.
The
other packages are for construction of an underground section between Ben Thanh
Market and Ba Son Shipyard and for mechanical-electrical devices and
maintenance.
Line 1
will cost $2.2 billion, with 83 per cent of the capital coming from Japanese
Official Development Assistance and the rest coming from the city budget.
Homebuyer
incentive
Commercial
banks taking part in the Government's VND30 trillion ($1.42 billion) stimulus
package have granted loans of VND333.1 billion ($15.86 million) to 939
household and individual clients.
According
to the State Bank of Viet Nam (SBV), as of October 31, loans of VND220.9
billion ($10.52 million) from the package had been disbursed to 905
homebuyers.
Vietcombank
has committed loans of VND109.4 billion to 309 clients, Vietinbank VND82.3
billion to 253 clients, BIDV loans of VND 101.9 billion to 234 clients,
Agribank VND26 billion to 93 clients, and MHB VND13.5 billion to 50
homebuyers.
SBV
said BIDV, Vietinbank and Agribank have also signed contracts to provide
loans of VND870.4 billion ($41.45 million) from the package to seven property
firms in HCM City, Thua Thien - Hue, Can Tho, Bac Ninh, Hai Duong and Da
Nang. These include disbursements of VND122.6 billion ($5.84 million) to four
of these property firms.
SBV
also urged commercial banks under the VND30 trillion stimulus package to
report on any hindrances facing homebuyers under the programme.
In
related news, the HCM City People's Committee has directed district, commune
and ward administrations to simplify formalities for homebuyers in their
respective localities.
The
directive comes following residents' complaints about cumbersome procedures
that prevent them from accessing preferential loans. These loans are designed
to help low-income people buy their own homes, and are also expected to
enable a real estate market revival.
According
to Nguyen Hoang Minh, deputy director of the SBV's HCM City branch, as of
September, 137 individual clients in HCM City had signed contracts for loans
of VND78.46 billion ($3.74 million). Of this, VND22.6 billion ($1.08 million)
had been disbursed to 58 applicants, he said.
Digital
advertising set to grow
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,
Dung noted that it was not easy to make advertising on social networks and
digital advertising effective. Most local enterprises have made
inconsiderable investments in digital advertising, which accounts for less
than 5% of the total budget for marketing, he told the seminar.
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%, 20% and 10%, Cong
informed. The 70% volume has been carried out on local media, especially
television, and has proved its efficiency, while the 20% 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 US$1 million is
normal, Cong asserted. But he said the cost would be only one-tenth, or
around US$100,000, 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 Vietnam posted nearly VND11 trillion in the first
half of this year, with television holding up to 92%, Kantar Media Vietnam
reports. The figure, however, is exclusive of sales of digital advertising.
PVN
in talks to boost joint oil exploration with neighbors
The
national oil and gas group PetroVietnam, or PVN, is in talks with partners in
the Southeast Asian countries of
Nguyen
Quoc Thap, deputy general director of PVN, told a press briefing in HCMC on
Wednesday to introduce the 10th Ascope Conference and Exhibition that
the
related sides are in talks to establish the boundaries of the joint oil
exploration areas. The exhibition, organized every four years, will take
place in HCMC on November 28-30.
PVN
joined Ascope in 1996, and ever since, the group has cooperated with other
regional partners to establish boundaries of joint oil exploration areas,
Thap said.
The
overlapping waters between
In the
coming time, PVN will continue negotiations with other countries on the joint
oil tapping programs, such as Thailand, Brunei and Cambodia in waters
southwest of Vietnam, and with China in the Northern Gulf.
“PVN
is stepping up talks with (partners from) these countries, and it is expected
that these joint exploitation projects will be realized in the near future,”
Thap said.
Asked
to clarify the areas of cooperation, Thap said the joint programs would
include exploration and exploitation of oil and gas, petroleum processing,
construction of oil and gas pipelines, oil trade, and oil and gas technology
among others.
He
also referred to the gas pipeline linking
According
to Thap, ASEAN countries have recently agreed to renew the ASEAN Memorandum
of Understanding on the Trans-ASEAN Gas Pipelines by another ten years to
2024 after the original one expires in May next year.
The
10th Ascope Conference and Exhibition will have the participation of 120 oil
and gas companies, showcasing technologies and equipment in the oil and gas
industry.
The
ASEAN Council on Petroleum (Ascope) was established in 1975 and now groups
ten members. These are Petroleum
Foreign-funded
social assistance projects approved
The PM
has approved the project on Strengthening Viet Nam Social Support System in
2013-2016, which is sponsored by the United Nations Development Program
(UNDP).
The
project will be carried out from November 2013-December 2016 by the Ministry
of Labor, Invalids and Social Affair.
The
total expenditure for the project is worth US$2.3 million, of which US$2
million is non-refundable aid and the corresponding capital is US$300,000.
The
project aims to realize Resolution No. 15/NQ-TW dated June 1, 2012 on a number
of issues relating to social policies for the 2012-2020 period.
The PM
has also ratified the project on Improving urban transportation in
The
project's funding of US$155.85 million will include US$ 142.25 million from
the International Bank for Reconstruction and Development and US$13.6 million
from the
The
project aims to help passengers get access to bus rapid transit (BRT),
guarantee that the BRT operate effectively, increase the effectiveness of the
project and reduce the density of circulation of private vehicles.
The PM
also allowed relevant agencies to negotiate with the WB on an Aid Agreement
and legal documents relating to the Viet Nam Social Assistance System
Strengthening Project.
The
negotiation is expected to be held at the end of November 2013 in Ha Noi.
The
State Bank of
Despite
a sizeable leather shoe exporting country, domestic producers still heavily
depend on material imports as they fail to find out quality supplies in the
nation.
Lien
Anh Co. Ltd. in
Depending
on material imports is not a wise solution, so the enterprise has plans to
buy a tanning factory in
Local
tanneries have for long offered low-quality cow skin that fail to meet export
standards. Meanwhile, it is also difficult to control quality of imported
hide for tanning in the country.
Many
other shoe producers have also depended on imported materials. To get
high-quality materials for production, they have to import leather from
Diep
Thanh Kiet, deputy chairman of the Vietnam Leather and Footwear Association
(Lefaso), said that there are over 400 leather shoe companies in the country,
making great contribution to the total export revenue. However, local
tanneries have met only 20-30% of material demands of local enterprises.
General
Secretary of the HCMC Leather and Footwear Association Nguyen Van Khanh told
the Daily that many tanneries in the city have moved to other localities
after the environment scandal of Hao Duong Company.
The
city now has around 10 tanning factories with daily output of 10 tons each,
including large factories such as Hung Thai and Dang Tu Ky. Hao Duong Company
mainly imports hide and tan the product for exports.
Meanwhile,
there are around 100 leather shoe enterprises in the city. Most firms have to
import materials from
According
to the Ministry of Industry and Trade, the nation used to import six million
square meters of tanned leather each year. Local shoemakers therefore just provide
outsourcing service given heavy dependence on material imports.
Source:
VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
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Thứ Hai, 25 tháng 11, 2013
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