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BUSINESS IN BRIEF 30/11
Belgian
businesses interested in Vietnamese students
The
Belgium-Vietnam Alliance (BVA) on November 28 held an exchange between
Belgian businesses from the East Flanders and Vietnamese students studying in
Duong
Minh Tri, a BVA representative said that many businesses from the East
Flanders have cooperated with
Xavier
Potier, a representative from PricewaterhouseCoopers (PWC), the world’s
biggest audit and consulting firm said that the company highly appreciates
young talent in
He
expressed hope that Vietnamese students will become a human resource for its
branches offices in
Lucere
Callebaut, another representative from the energy and lighting company named
ERBEKO said she was impressed by
The
Flanders region has some investment projects in Vietnam, focused on such
areas as diamond industry, port services, industrial and hi-tech parks,
health care, logistical support, coffee growing, chemical and pharmacy
business.
Last
year’s two-way trade turnover between
Local
sugar industry under heavy pressure
The
Vietnam Sugar and Sugarcane Association (VSSA) has proposed delaying removing
import tariffs in anticipation of newly reached Free Trade Agreements (FTA).
The
VSSA asked the Ministry of Agriculture and Rural Development (MARD) to
postpone the application of 0 percent import taxes until 2020 instead of
being scheduled for 2015.
VSSA
Secretary General Nguyen Hai said removing sugar import tariffs will place
unreasonable burdens on
Hai
suggested delaying the 0 percent tax rate imposition until 2018 or 2020 would
give local sugar producers a chance to improve their competitiveness. “VSSA
members are encouraged to take the initiative to raise the productivity and
quality of their crops independently,” Hai said.
Le Van
Tam, a farmer in the Mekong Delta province of Hau Giang’s Phung Hiep
district, said his household had large sugarcane plantations but earned a
part of VND7 million (US$340) from his VND7 million investment in 2012–2013.
According
to recent VSSA statistics, sugar inventory levels in the country already
exceeded 236,000 tonnes by September 2013. The problem of excess stock was in
part exacerbated by the smuggling of sugar from
VSSA
Chairman Nguyen Thanh Long said the industry cannot cope with a reduction of
import tariffs from their present 5–10 percent levels.
One
reason he pointed out is that Thai firms buy input materials at a very low
price: VND6,000–7,000 per kilo, while Vietnamese producers pay 150 percent
higher - around VND10,000 per kilo. The domestic sugar industry finds it
impossible to compete against smuggled imports.
Long
insisted on the Government to negotiate for a postponement of FTA-mandated
import tariff reductions in the process of international integration. Vietnamese
sugar producers need to develop a long term strategy for efficient growth.
The
establishment of an ASEAN Community by 2015 will boost regional growth
through job creation and investment cooperation. The community can also
deliver an equitable and healthy trading market for ASEAN member countries to
exploit under multilateral trade agreements signed within the bloc.
Six
out of the ten members have already gone ahead with their tax reduction
roadmap. The four remaining members—
OCBC
sells its shares at VPBank for local investors
Oversea-Chinese
Banking Corporation Limited (OCBC Bank) has disposed Vietnam Prosperity Joint
Stock Commercial Bank (VPBank) for US$55.5 million, according to the
Singapore Business Review.
The
paper reported that OCBC Bank has sold its entire 14.88% stake, comprising
85,830,457 ordinary shares of VND10,000 each, in the capital of VPBank to a
group of individuals, namely Ms Ngo Thu Thuy, Mr Huynh Ba Lan and Ms Pham Vu
Thi Nhu Hoang.
OCBC
was approached with a proposal to purchase the sale shares, and after
considering the proposed terms, it decided to divest its entire 14.88% stake.
The
consideration for the sale shares was US$55.5 million payable in cash, and
was decided following a willing buyer and willing seller basis after taking
into account the latest net assets value of VPBank which was approximately
VND6,637 billion (US$389 million) audited on 31 December 2012.
The
sale is not expected to have a material impact on the net tangible assets or
earnings per share of OCBC group for the current financial year.
Commercialisation
of high potential technology promoted
An
annual conference of
The
workshop organised by the park’s management board aims to prepare for
entering a new period of technological innovation in the city and the
country.
It
looks to share experience on building and developing potential and modern
high-technologies and products in IC technology, biotechnology, automation,
and new material technology.
A park
leader said the meeting will connect businesses with enterprises and experts
to cooperate in technology transfer, production and commercialisation of
high-tech products as well as developing their domestic supply chains.
In the
two-day conference, the board will organise meetings on partners’ programmes,
scientific seminars and an exhibition on high-tech industry.
To
date, the
As the
world has a soaring demand for cacao while supply is shrinking due to climate
change,
The
outlook was shared by experts at the second forum to strengthen sustainable
development of cacao, which is jointly held by the Ministry of Agriculture
and Rural Development (MARD) and the Dutch Embassy in
They
argued that though developed 10 years ago in the southern region, cacao
planting has seen its potential thanks to appropriate natural conditions there.
According
to Cas Vander Horst,
Providing
that
The
country increased 900 ha of cacao harvested in 1999 by tenfold in 2007, and
recorded 22,000 ha today, mainly in the
To
this end, the MARD has signed a Dutch-funded project to promote sustainable
development of cacao in
The
project is expected to be a nudge for the Vietnamese cacao industry to
develop by providing technical support to raise the capacity of researchers,
managers and farmers in hope to increase the output and quality of cocoa, and
expand market access for businesses.
WTO
integration – extension to Vietnamese reform
Deputy
Minister of Industry and Trade Tran Quoc Khanh made the remark at a
conference in
Apart
from
The
country will strive to overcome shortcomings in the coming time, he stated.
Thanks
to the integration, Vietnamese exporters have had better access to foreign
markets and greatly contributed to national export turnover.
Many
administrative reform programmes have been carrying out effectively to help
businesses reduce costs and raise the effectiveness of their investments.
Addressing
the event, Head of the EU Delegation to
He
further said the economy needs appropriate trade policies to enhance its
comprehensive effectiveness, capacity and competitiveness, which are the key
to efficiently implementing the Vietnam-EU Free Trade Agreement to be signed
in the future.
The EU
will continue to support
The
results also revealed that trade liberalisation and foreign investment have
bolstered national economic modernisation, bringing about considerable
improvements such as a big tariff reduction and the comprehensive renovation
of services and the better enforcement of intellectual property rights.
Deputy
PM:
The
Vietnamese Government has always paid attention to developing the oil and gas
sector, considering it a driving force of the country’s economy, said Deputy
Prime Minister Hoang Trung Hai.
The
Deputy PM made the remark at the tenth conference and exhibition of the ASEAN
Council on Petroleum (ASCOPE) in
He
voiced his hope that the event will help enhance cooperation and the exchange
of the most advanced technologies and comprehensive coordination between
national oil and gas groups within the ASCOPE as well as international ones,
especially in the exploration, exploitation, processing and transport of oil
and gas.
Founded
on October 15, 1975, the ASCOPE gathers representatives of national petroleum
companies and management agencies in the Association of Southeast Asian
Nations (ASEAN).
The
Vietnam National Oil and Gas Group (PetroVietnam) joined the council in 1996.
Held
every four years by ASCOPE members in turn, this year’s event, themed
“Renovation and Development - Looking towards the future”, focuses on the
latest developments in the global and regional petroleum industry, as well as
opportunities, challenges and solutions.
The
event, to last until November 30, will introduce cutting-edge equipment and
technologies in the exploration, exploitation, processing and transport of
oil and gas.
RoK’s
city showcases exemplary exports in Vietnam
Businesses
from Bucheon city in the
The
exhibited items vary from industrial machinery, electronic and portable
devices, and electrical equipment to cosmetics, household utensils and
footwear.
A
representative from the Bucheon Chamber of Commerce and Industry said the
event will facilitate the expansion of the city’s business in
At the
three-day exhibition, 17 Bucheon businesses are presenting their products on
153 square metres of floor at The Garden trade centre.
The
event is co-organised by the Bucheon chamber and the Vietnam National Trade
Fair and Advertising Company.
Dutch
centre supports Vietnam’s exports to EU
The
Centre for the Promotion of Imports from Developing Countries (CBI) under the
Dutch Foreign Ministry has greatly supported
CBI
Managing Director Hans Klunder told a November 28 ceremony in
The
relations between the CBI and
The event
showed increasing possibilities of cooperation and training, and enhanced
import activities, he said.
Deputy
Chairwoman of the municipal People’s Committee Nguyen Thi Hong praised the
centre’s collaboration with Vietnamese partners over the years, noting that
it has launched many activities such as setting up a trade and investment
portal, offering training programmes to raise capacity and support export
activities for the wood processing industry, which provided Vietnamese
businesses with updated information on the EU market.
Conference
seeks e-commerce opportunities
The
31st Asia-Pacific Council for Trade Facilitation and Electronic Business
(AFACT) has begun its plenary session in
Deputy
Minister of Industry and Trade Tran Tuan Anh said AFACT’s
The
two-day session allows government agencies and the domestic business
community to highlight the potential for e-commerce development.
AFACT
Secretary General Mahmood Zargarsaid coordination between council members and
official cooperative programs have both been expanded. AFACT will continue to
facilitate trade in private and state sectors, organise training courses, and
consult member nations as they work to build up their electronic business
capacities.
The
plenary session includes the eAsia Award presentation ceremony and the EDICOM
exhibition. The eAsia Award is granted to projects promoting trade and business
in the public sector, boosting private sector investment, and furthering the
application of advanced technology in business activities.
Local
and foreign businesses will use the EDICOM exhibition to introduce their
e-commerce solutions for business and production activities.
Manufactures
drive 5.6% industry surge
The
country's Index of Industrial Production (IIP) saw a year-on-year increase of
5.6 per cent in the first 11 months of this year, according to the General
Statistics Office (GSO).
The
surge, the highest level so far this year, was driven by an expansion in one
industrial sector, industrial manufacturing and processing, which had a
yearly rise of 7.1 per cent in the period, GSO said, adding that this rate
was much higher than 5.4 per cent seen in same period one year ago.
During
the January-November period, industrial manufacturing and processing also
contributed 5 per cent to the country's IIP increase while electricity
production and distribution contributed 0.6 per cent.
While
the two economic hubs,
Among
industries witnessed consumption growth including automobile assembly (up 37
per cent), leather and leather-made products (up 31 per cent) and rubber and
plastic (up 18 per cent).
In
addition, the inventory index of the manufacturing and processing industry as
a whole rose 9.4 per cent from the same period last year – as of November 1 –
with some sectors recording higher inventories including beverages (up 121
per cent), pharmaceuticals (up 80.2 per cent), paper production (up 33.2 per
cent), and chemical products (up 25.5 per cent).
Experts
said that an inventory index set below 10 per cent was an optimistic sign for
the economy at this time, especially in relation to the previous year.
The
Ministry of Industry and Trade forecast that overall inventory would decline
in the remaining months of this year as demand usually went up in this period
because businesses shipped goods out to fulfill orders, particularly in the
footwear and apparel sectors.
Boosting
industrial production was considered a key factor in developing the national
economy as emphasized in the 2011-20 Socio-Economic Development Strategy, the
2011-15 Socio-Economic Plan and Socio-Economic Planning for 2013.
BIDV
to sell its non-performing loans to VAMC
The
Bank for Investment and Development of Viet Nam (BIDV) plans to sell
non-performing loans worth VND1.5 trillion (US$71.4 million) to the Viet Nam
Asset Management Company (VAMC) this week, the Viet Nam Economic Times
reports.
BIDV
is the third State-owned commercial bank to sell its bad debts to VAMC since
early last month. The first one was the Viet Nam Agriculture and Rural
Development Bank, which sold non-performing loans worth more than VND8
trillion ($380.95 million) and the second was the Mekong Housing Bank with
VND500 billion ($23.8 million).
The
permanent Deputy Chairman of VAMC, Nguyen Quoc Hung, said the company had so
far bought around VND18 trillion ($857.14 million) worth of bad debts going
by book value. Twenty-four credit institutions had registered to sell bad
debts worth more than VND40 trillion ($1.9 billion) to the firm.
Hung
told Dau tu Chung khoan (Securities Investment) that the VAMC had been
classifying the debts into various groups and hopes to begin selling them in
2014. It was also prepared to sell them immediately if it is more profitable
for the credit institutions and enterprises.
He
said there were many domestic and foreign investors willing to buy debts from
the company.
There
were many legal obstacles needed to be sorted out, including asset ownership,
especially real estate owned by foreign investors, and foreign investors'
shareholding ratios at enterprises, he noted.
Loans
likely below target
Experts
have backed predictions that national lending growth will end the year below
target, despite a significant surge in bank loans in November.
Prime
Minister Nguyen Tan Dung recently announced the economic update with total
outstanding loans growing 9 per cent in the first 11 months, while the State
Bank of
The
monthly increase equalled growth from the first five months of this year.
According
to news website ttvn.vn, banks relaxed lending on hopes that businesses would
lift capital investment by the end of the year.
An
Binh Bank deputy general director Nguyen Thi Ngoc Mai said company demands
for capital increased strongly in the final months of this year despite
continued slumps in market demand and tough economic conditions.
Mai
said that stringent Government policies to stabilise the economy, liquidity
measures from the State Bank, and the easing of non-performing debt by the
Viet Nam Asset Management Company, had facilitated credit growth.
Maritime
Bank deputy general director Tran Xuan Quang said banks and enterprises were
sprinting to fulfill annual targets.
Banks
are still treading carefully to avoid accumulating new bad debts from
companies facing low demand and massive investment plans. Meanwhile,
preferential interest rates are being offered to firms with stable financial
and feasible business plans, he said.
Officials
agreed that banks needed to improve risk management and control bad debts to
boost lending, but acknowledged the target credit growth rate of 11-12 per
cent may be unlikely this year.
Truong
Van Phuoc, vice chairman of the National Financial Supervisory Council, said
an annual credit growth rate of 10 per cent would be satisfactory in the
current climate.
Meanwhile,
former State Bank Governor Cao Sy Kiem urged greater importance to be placed
on the quality of credit rather than just general growth.
A
report by the National Committee for International Economic Co-operation has
rated
The
City leads Viet Nam's 63 cities and provinces in the committee's second
Provincial Economic Integration Index (PEI Index) measuring each city's
capacity to integrate with the global economy based on eight criteria.
The
criteria assesses each city and province's infrastructure, culture, local
natural features, human resources, trade, investment and tourism sectors.
The
first report was launched in 2010 with
According
to the report,
According
to the report, Ha Noi retained the biggest advantage in work force quality
and culture which helped improve the political capital's competitiveness.
Ha Noi
and
In
terms of trade,
The
total number of foreign direct investment (FDI) projects approved in the four
localities totalled 4,000 projects, accounting for 60 per cent of the
country's FDI projects.
The
Mekong Delta provinces of An Giang and Kien Giang saw improved trade figures
after moderating prices of key products, including rice and aquaculture
produce.
However,
some localities including Ca Mau, Ben Tre, Dien Bien and Soc Trang fell in
their competitiveness.
Speaking
at the report launch ceremony yesterday, Deputy Minister of Industry and
Trade Nguyen Cam Tu said the report had helped to qualify the efforts and
impacts of locality efforts to tap into global trade and improve the welfare
of citizens.
The
results will be used to help the Government support localities looking to
implement integration policies, he said.
Mai
Thi Anh Tuyet, director of Industry and Trade Department of southern An Giang
province, said the report's PEI Index would make localities aware of their
comparative advantages to improve the accuracy of policy efforts.
Raymond
Mallon, senior technical advisor of the Beyond WTO Programme, said that
although most economic integration agreements were being made at the top
level, the implementation of agreements at the sub-national level was
critical for development.
He
said economic integration and policy changes could be sped up if provinces
co-ordinated their efforts and that the assessment of each province was an
important step to boosting regional and national integration with the global
economy.
The
report also polled around 2,300 citizens and 2,300 businesses, mostly
including limited companies and joint stock companies.
The
report's investigation was conducted in the fourth quarter of last year as
part of a research project funded by the Australian Agency for International
Development and the UK Department for International Development through the
Beyond WTO Programme.
Property
trader ITA in debt
Tan
Tao Investment and Industry Corporation - ITA is struggling with its credit
commitments, with $85 million owed to 10 credit institutions.
Almost
90 per cent of its loans are long-term at around 13 per cent per annum and
are backed up by land use rights and associated assets.
Maritime
Bank is ITA’s biggest creditor having laid out $10.22 million at 15.5 per
cent per year. The loans are secured by land in
BIDV
has lent the company $19.7 million, based on collateral such as land use
rights, company shares, and apartments.
Other
long-term mortgages included PVcomBank (formerly Western Bank), Indovina,
Vietnam Development Bank, HDBank, and Agribank.
Another
$7.99 million is short- term loan from Navibank and Agribank
However,
this year, the company’s cost of capital has gone down to $3.29 million as
interest rates have fallen, saving ITA, equal to a 22 per cent drop.
The
company is also in debt to state-owned Ho Chi Minh City Finance and
Investment Company (HFIC), Southern Engineering & Informatics Investment
Corporation, and Vinh Long Development and Investment Fund with loans
totalling $2.8 million.
ITA
has reported a 17 per cent decrease in profit for the first nine months of
this year, blaming its poor performance on the ailing real estate market.
By the
end of the third quarter, Tan Tao (traded as ITA) showed after-tax profits of
$0.66 million, a significant drop against last year.
ITA general
director Thai Van Men said the company’s business is focused on leasing and
selling properties with completed infrastructure and production facilities.
“The gloomy real estate market is making it very difficult for us to invest
and expand, and this is the main reason for our drop in profits,” he said.
In the
first nine months, ITA’s subsidiaries were mostly to blame for its losses,
whereas last year they contributed $2.45 million in revenues.
The
company’s revenues from sales and services so far this year have fallen 37.5
per cent to $14.26 million. Meanwhile its inventories rose by 7 per cent and
are valued at around $142.6 million.
Bosch’s
extra $208 million for Dong Nai plant
Robert
Bosch
The
company will execute the fresh investment project over three years to 2016 to
expand and increase the capacity of the Continuously Variable Transmissions
(CVT) push belt production line of the Bosch plant in
The
additional capital takes the total investment for Bosch
Vo
Quang Hue, managing director of Bosh
Apart from
the fresh investment, Robert Bosch
The
trainees recruited by Bosch will be studying for three years and a half by
learning theory at Lilama 2 and practicing at the Bosch plant in Long Thanh.
They will be subject to free school tuitions and be given monthly allowances.
Graduates
will be granted two certificates, one of
Twenty-four
trainees of the first intake started their training early last month.
With
the extra investment, Bosch not only raises the production capacity but also
develops local human resources to ensure a continued success for the company,
he said.
The
group has been present in
Luxurious
condo developers race to lure clients
Developers
of high-class apartment projects in HCMC are trying to raise competitiveness
by launching various promotional programs to attract homebuyers.
Given
the crisis of the real estate market, few new high-class condos have been
launched in HCMC except for those offered earlier such as Star Hill, Happy
Valley of Phu
My
Hung Corporation, Him Lam Riverside of Him Lam Group, Celadon City of Sai Gon
Thuong Tin Tan Thang Company, Sunrise City and Tropic Garden of Novaland.
While
investors of low-cost condos have seen the light at the end of the tunnel
thanks to affordable home products, those developing luxury projects have
faced tough competition to lure customers.
As
home demands usually pick up before the Lunar New Year holiday, or Tet, the
investors have launched many promotion programs. The investors of Him Lam
Riverside and
This
month, Novaland has launched discounts and a program of installments over a
period of 46 months. Customers of
35% of
the condo value in the first payment and 1.15% each month after that. Buyers
will also get gifts and join a lucky draw program.
For
customers of the second stage, Novaland has offered a payment policy of VND32
million per month over 50 months.
Meanwhile,
Him Lam Group has announced five payment policies for Him Lam Riverside
project, allowing customers to pay for a condo over a long period, giving
discounts, gifts and service fee reductions.
Notably,
in a sales program to be launched this Saturday, the investor will offer two
interior decoration models to homebuyers and a set of home appliances worth
nearly VND1 billion.
Novaland
is also trying to boost the sales of its
Many
of Imperia An Phu condos in District 2 were handed over to customers earlier
this year, but the investor has still offered a preferential payment policy
to clear up stockpiles.
Homebuyers
will receive the condo after settling 10% of the condo value and pay the
remaining sum over two years without any interest sum. They will also receive
free parking and gifts worth VND250 million.
Phu My
Hung Corporation is set to launch the sale of
Similarly,
the owner of the
Bui
Xuan Hien, deputy general director of Khai Hoan Land Company, said that real
estate investors always have strong demand for cash at the end of the year,
so they have to speed up sales to recover capital. Notably, recent promotion
programs have given financial support to homebuyers.
Earlier,
many customers did not think that they could buy high-class condos. If
investors had launched such promotion programs sooner, transactions in the
high-class apartment sector would have been much better, Hien said.
Recently,
Vingroup Company has also spent VND200 billion investing in facilities and
giving management fee exemptions over 10 years for residents of
5.1%
of rice volume sold directly to exporters
The
country’s annual paddy yield reaches over 40 million tons, with more than 7.7
million tons exported in 2012, but the volume local farmers sell directly to
exporting companies only makes up 5.1% of the total.
The
information was given by Professor Nguyen Van Luat, former director of the
Mekong Delta Rice Research Institute, at a seminar on solutions on rice
production and consumption in Can Tho City on Thursday.
According
to Luat, research on the rice export value chain in An Giang Province
conducted this year indicates that rice products for export now are being
distributed through three major channels. The first is from farmers to
processing mills, accounting for 2.8%, and from the factories to exporting
companies, making up 24.2%. The second channel is from farmers to traders
with 91.2% and from the traders to processing plants with 31.3% and the third
is from processing mills to exporting firms, representing 24.2%.
“Only
5.1% of the total paddy volume is sold directly to exporting enterprises by
farmers,” Luat remarked.
Many
representatives at the seminar said that the lamentable situation was due to
rice exporting firms preferring purchasing rice to paddies to polish the farm
produce and then pack it subject to the orders of foreign partners. They also
attributed the problem to the difficulty of transporting paddies from local
fields to exporting businesses and rising transport costs forcing farmers to
sell fresh paddies on the spot right after the harvest.
Given
the presence of so many intermediate processes for delivering paddies to
exporters, profits earned by farmers are small, although they take on up to
50% of the work volume in creating the value chain for the rice industry.
In
fact, this was clarified in a report on analyzing the added value chain of
the rice industry Luat presented at the seminar. As such, the net value local
farmers enjoy is VND540 per kilo of paddies, equivalent to 27.8% of the
total. Meanwhile, rice traders collect VND39 (2%), processing mills collect
VND123 (6.3%) and polishing plants collect VND50 (2.6%). In particular, rice
exporters alone earn as much as VND556 or 28.7% for one kilo of rice exported.
TPP
talks closer to conclusion
Negotiations
on a Trans-Pacific Partnership (TPP) agreement are taking place in the
Speaking
at Can Tho University on Thursday, Shear said TPP would bring about
short-term benefits to
In
long term,
Delta,
TPP will open the door for many modern farming tools and technologies,
helping
Concerning
disadvantages the TPP may cause for
VIB
speeds up IT application to cash in on retail banking
As
retail banking is expected to become the most important segment after 2015,
local banks have seen the need to invest in information technology (IT)
infrastructure to better retail banking services. Vietnam International Bank,
or VIB, is one among the credit institutions that have pioneered into the
technology to better cater to the need of clients.
Speaking
at the ASEAN Banker Forum organized by International Data Group (IDG) and the
Vietnam Banks Association in HCMC on Tuesday, Ha Huy Tuan, vice chairman of
the National Financial Supervisory Commission, said local banks have
concentrated too much on large customers while ignoring the retail banking
segment. However, given the economic woes now, the segment of big clients has
failed to bring about high profits for banks.
There
remains a big gap in the provision of banking services as the individual
client segment is still ignored. Just an estimated 20% of adult consumers are
using banking services, Tuan said.
Retail
banking has strong growth potential in the country thanks to a large population
and rising income per capita. Meanwhile, small- and medium-sized enterprises
always have strong demand for capital.
“To
develop retail banking, lenders must be creative in diversifying credit
products. Banks also have to invest in IT infrastructure and risk
management,” Tuan added.
Sharing
the same viewpoint, Tran Nhat Minh, member of the Board of Directors, and
Permanent Deputy CEO of Vietnam International Bank (VIB), said that
investment in technology is the foundation for retail banking development. In
the current context, Vietnamese banks, though going behind other
international rivals, have advantages in selecting and applying latest
technologies in retail banking, approaching individual customers and small
and medium-sized enterprises.
VIB
has obtained experiences during the retail banking development process,
taking the customer-oriented approach and combining it with the bank’s
business strategy. In the country, VIB has 151 branches connected to the core
banking system as the bank has built up a general IT structure right from the
start.
VIB
has selected solutions of Diasoft on the basis of four key factors.
Technology solutions must go along with business demands, be deployed
quickly, secure generalness and have service-oriented architecture (SOA),
Minh said.
In
addition, VIB has applied Enterprise Service Bus (ESB) technology, the first
step in construction of SOA. With ESB, the bank has minimized mutual
dependence of constituents in the banking technology system, make new
services and applications workable in the shortest time possible, save costs
and reduce impacts on existing systems.
Thanks
to modern technology, the bank has expanded its network quickly from five
branches in 2001 to 151 branches in 27 provinces and cities nationwide now.
At present,
VIB
continues to develop its system of banking units and other transaction
channels such as automated teller machines (ATM), points of sale terminals
and e-banking to better customer services. Next year, VIB has plans to launch
20 more branches and around 60 more ATMs into operation.
VCBS:
Exchange rate increase unlikely
Vietcombank
Securities Company (VCBS) in a macro economic report released recently
predicted that the dong-U.S. dollar exchange rate is unlikely to increase by
the year-end as the foreign exchange market may not see supply-demand
tension.
Given
seasonal factors, the demand for foreign currencies will pick up towards the
end of the year as enterprises will boost imports to serve production.
Meanwhile, trade deficit will also increase as local enterprises still
heavily depend on input material imports.
However,
foreign currency supplies remain stable and can meet demands of the nation,
VCBS said in the report.
Foreign
direct investment capital has increased steadily and foreign exchange reserve
has been equivalent to 12 weeks of imports. Meanwhile, the World Bank has
made an optimistic forecast on overseas remittances, saying that around US$11
billion would flow into the country this year.
As
inflation is no longer a worrying sign, the dong-U.S. dollar exchange rate
will increase by 1% but in early 2014. The increase, if any, will be suitable
with the Government’s easing policy, the dong devaluation scheme and
maintenance of low interest rates to support economic growth, the broker
said.
VCBS
also said that interest rates will be stable from now to the end of the year
as lending rates have dropped to levels in 2005 and 2006. The gap between
mobilization and lending rates has narrowed down to 2.8 to three percentage
points, so it is impossible for banks to cut rates further.
Meanwhile,
macro economic indicators have also suggested that mobilization rates may not
drop further this year.
In
addition, credit is expected to rise sharply in the last month as large banks
are trying to extend loans. The central bank has applied solutions to help
banks improve credit growth. It has asked for approval from the Government to
allow credit institutions to grant bigger loans to customers, especially
those developing key and priority projects.
Phu
Hung Life picks TRG as solution provider
Phu
Hung Life Insurance Joint Stock Company has chosen TRG International Company
(TRG) as a financial solution provider.
Under
the agreement signed on Wednesday, TRG will supply and implement Infor
SunSystems version 6 VAS edition, a complete financial management solution
which complies with both international and Vietnamese reporting standards.
The solution offers other features meeting requirements for financial
management for life insurance in
TRG
will design and deploy the software system, and provide training sessions,
support and maintenance for Phu Hung Life.
TRG is
a global professional services firm focusing on delivering technical
solutions. Meanwhile, Phu Hung Life, which officially entered the Vietnam
life insurance market this year, is the first joint stock life insurer in
Vietnam with an initial capitalization of VND633 billion.
Eximbank
lends VND1.5 trillion to Vinacomin
Vietnam
Export Import Commercial Joint Stock Bank (Eximbank) on Thursday signed a
credit contract to supply VND1.5 trillion to a subsidiary of Vietnam National
Coal and Mineral Industries Group (Vinacomin) to help the latter expand and
increase the capacity of Sin Quyen copper mine in Lao Cai Province. The
credit will be disbursed over 10 years.
Sin
Quyen copper mine is the nation’s only mining complex applying a closed cycle
from exploitation to processing and metallurgy with a total investment of
VND1.3 trillion.
The
complex operated by Vinacomin-Mining Corporation (Vimico) started operating
in 2006, producing refined copper ore, 99.95%-purity copper sheet, gold,
silver and refined iron ore.
Vimico
was established and started operating in October 1995. The enterprise
specializes in mining and processing. Between January and September this
year, Vinacomin obtained over VND10.7 trillion in revenue and VND1.8 trillion
in pre-tax profit.
According
to a representative of Vinacomin, the group has decided to invest further in
the complex given initial positive results. The project has total invested
capital of
VND2.6
trillion, including Vinacomin’s own funding and loans from Eximbank. The
project is expected to start operating at the end of 2015, raising total
output of the complex by 2.4 times.
This
is the core project in the development strategy of Vimico in the 2011-2020 period,
the representative said.
Van
Thai Bao Nhi, deputy general director of Eximbank, told the Daily that the
credit relationship between Eximbank and Vinacomin was founded many years
ago. Earlier,
Eximbank
had financed many projects of the group and helped its members supplement
working capital. The lender has granted huge loans at over VND1 trillion each
project to Vinacomin while the borrower has always settled interest and
principal sums as scheduled. Therefore, Eximbank has decided to disburse the big
credit to Vinacomin.
This
is not at all a hasty decision to speed up credit growth in the final months
of the year because the bank has set up a schedule to finance large projects
of Vinacomin, the banker said. Before signing the credit contract, Eximbank
had spent six months assessing the credit application and the bank’s leaders
had also visited the complex many times.
When
the upgraded complex begins operation, Vinacomin will continue to gain
profits in the coming years as domestic copper supply is still limited.
Vietnam still has to import copper from other countries, so the market for
Vinacomin is large. Therefore, the bank will not see challenges in recovering
debts, Nhi said.
In
August, Eximbank signed a credit contract worth VND2 trillion with National
Power Transmission Corporation and hundreds of billions of dong has been
disbursed, Nhi added.
Aside
from loans for large enterprises, Eximbank still pays attention to small and
medium-sized enterprises, exporters and importers that make up a high
proportion in the
bank’s
total outstanding loans. Though the bank’s credit growth rate in the year to
the end of October had been only 8% as compared to end-2012, Eximbank will
appraise credit applications carefully as bad debt is the most critical issue
for banks now, Nhi noted.
Eximbank
is one of the banks with much consideration in lending activities. Le Hung
Dung, chairman of Eximbank, said that giving substandard loans to clients
will push banks into distress soon. Therefore, Eximbank stays cautious in
dealing with any clients.
Speaking
to the press recently, Dung said Eximbank has sacrificed profits to ensure
safe operations and prepare for development in the following years. The
lender will sell some bad debts to Vietnam Asset Management Company (VAMC).
Between January and October, Eximbank obtained VND1.3 trillion in pre-tax
profit and it expects to get around VND1.5 trillion this year, or over a half
of last year’s figure.
Source:
VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
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Thứ Sáu, 29 tháng 11, 2013
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