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BUSINESS IN BRIEF 6/11
Deputy
PM urges acceleration of Noi Bai-Lao Cai highway
Deputy
Prime Minister Hoang Trung Hai has asked the Ministry of Transport and
relevant agencies to manage and disburse investment to accelerate the
construction of the Noi Bai-Lao Cai national highway.
Inspecting
the construction site in the northern mountainous
Contractors
must meet all technical requirements, he added.
The
Noi Bai-Lao Cai expressway, the construction of which was started in 2009,
has a total length of nearly 265km and an investment capital of over 1
billion USD. It links
Bailout
disbursed in dribs and drabs into real estate
Only
120 individual clients in
The
capital had been disbursed to 45 of them, totalling 15.67 billion VND
(750,000 USD), the municipal People's Committee said, adding that there were
no businesses in the city who could access this preferential package.
The 30
trillion VND bailout to low-income homebuyers and corporate customers
developing social housing projects is planned to help shore up the real
estate sector, with the focus on social housing, the market segment with very
high demand and low supply.
It
will offer property developers loans with low interest rates, hovering around
6 percent per year. Besides, credit loans will be also provided for
low-income earners who rent or buy houses.
However,
too many obstacles, including the current difficult economic climate, the
frozen real estate market and barriers in fulfilling all the required
documents, have made the bailout impossible for many individual clients and
property developers to access the bailout money. This has resulted in its
sluggish disbursement, the committee said.
In
order to deal with the problem, the city had suggested that the Government,
the Ministry of Construction and the State Bank of
In
addition to petitioning for VAT and corporate income tax exemptions for
businesses which could develop affordable housing projects or shifting their
commercial ones to social housing, the city has also called for VAT reduction
for people who are first-time house buyers. Perfecting the legal framework to
better facilitate loan access will also be included.-
Goods
fair draws border shoppers
Some
10,000 people flocked to a three-day Vietnamese goods fair in Vinh Gia
commune, Tri Ton district, the Mekong Delta
Twenty
businesses from regional provinces and
The
fair from November 1 – 3 generated over 1.1 billion VND (52,400 USD) in
revenue for the firms, much higher than organisers’ estimate and the figures
at the previous three fairs held in the locality this year.
This
was part of the “Bringing Vietnamese Goods to Rural Areas” programme,
co-organised by the Vietnam Trade Promotion Agency and the An Giang Trade and
Investment Promotion Centre.
Central
Bao
Loc in the Central Highland
Located
at an altitude of over 800m, 190km from
The
“capital of sericulture" boasts large silk producers such as Bao Loc
Silk Joint-Stock Company, A Chau Silk Joint-Stock Company, Kimono Company,
Vietsilk Company and about 20 private silk production workshops.
In
2004, the Vietnam Sericulture Corporation (Viseri) joined hands with
Matsumura Company (Japan) to establish three large factories in Bao Loc,
including Silk Spinning Factory No. 4 with an annual capacity of 85 tonnes of
silk cords and two factories producing silk for making ties and kimonos with
an annual capacity of 486,000m and 480,000m respectively, opening a new
development period for the sericulture sector in Bao Loc.
Bao
Loc silk is produced with the modern technology of
At
present, Bao Loc produces over 20 different categories, such as satin,
crepedechine (CDC), jacquard, Habutai, oganza, Georgetee (GGT.Voal), Taffetas
and visco mixed fabrics and cotton mixed.
Nguyen
Tien Dung, former Deputy Director of Viseri, established Vietsilk Company
after his retirement from a State-owned company. He recently installed 60
power-looms of weaving small-size jacquard cloth in the Japanese technology
to make kimonos and 20 power-looms of producing silk lining for making
kimonos.
“I believe
that the brocade will bring high economic value because it is a high-grade
product which is in great demand in developing countries,” said Dung who has
a great zeal for
Vietsilk
exports about four tonnes of brocade and silk per month to
Thai
Binh agriculture leads the charge
Thanks
to scientific and technological achievements in production, crop and
livestock restructuring in the
Among
hundreds of scientific topics and projects and thousands of innovations put
into practice in Thai Binh province, the most prominent achievement is the
research and test of 637 rice varieties and 282 varieties of other food
crops. Through selection, six rice varieties have been put into production.
In
terms of livestock and seafood breeding, the province has put new strains
into production, such as pigs with high lean meat percentage, poultry, white
butterfish, snake-head fish, bass, black shrimps, crabs, clams, oysters and
turtles.
In
addition, it has also applied new manufacturing process, such as integrated
crop management (ICM), integrated pest management (IPM) and cleaner
production. In particular, the province has built a seed processing plant
based on European advanced technology with a capacity of 6,000-10,000 tonnes
per year.
Thanks
to scientific and technological achievements in rice production, Thai Binh
province has a surplus of 400,000 tonnes of rice each year. In particular, it
reaches an average productivity of 12-13 tonnes of rice per hectare per year.
All
high-quality rice varieties have been cultivated in the province. For
example, BC15 rice variety has been cultivated in An My (Quynh Phu), Bac Hai
(Tien Hai) and Thanh Tan (Kien Xuong) communes, bringing a value of 80-90
million VND (3,900-4,400 USD) per hectare per year.
The
bass, tilapia and mud clam breeding model in Thai Thuy District has strongly
developed in recent years. Nguyen Van Lieu from Thuy Lien commune, Thai Thuy
district, said the breeding model was implemented based on research results.
He raised 1,665 bass, 2,500 tilapia and 500kg of mud clams on a total area of
5,000sq.m. After nine months, total production of about 1.8 tonnes of bass, one
tonne of tilapia and over 1.6 tonnes of mud clams brought him 150 million VND
in revenue or 50 million VND of profit. In other communes, the model has
greatly improved economic efficiency.
Since
implementing the project on applying scientific and technological
achievements in production, households in An Binh commune, Kien Xuong
district has got out of poverty. Hong Tien, Vu Binh, Thanh Ne, Quang Trung
and Tra Giang communes have applied a turtle raising model and achieved
considerable success.-
VietjetAir,
Chinese partners ink cooperation deal
VietJetAir
has signed a strategic partnership agreement with China Construction Bank
(CCB) and CCB Financial Leasing Corporation Limited, the private carrier
announced on November 1.
The
agreement would facilitate cooperation between the three sides in financing
and aircraft leasing, including aircraft engines and other capital high-value
aviation materials and equipment, it said.
It was
among VietJetAir's initial steps in financing the order of 100 aircraft with
Airbus last month. The first batch of this order is due for handover next
year.
This
addition would help VietJetAir develop a new generation and modern fleet in
the Asia Pacific, it said.
SBV
puts forward plan to increase lending given low credit growth
The
State Bank of
Under
the proposal, customers experiencing temporary difficulties in production and
business but can produce credible loan plans will be considered for debt
restructuring and new bank loans.
The
SBV also proposed allowing banks to lend in excess of the permitted 15-
percent-equity limit to customers with priority projects.
Credit
growth this year is expected to be lower than the 12-percent annual target.
After
five months of slow growth, credit in June started to show recovery signs,
posting a 4.5 percent increase against December 2012. By the end of August,
outstanding loans to the economy had increased by 6.45 percent, while the
figure reached 6.82 percent by the end of September.
Manh
said that low credit growth since 2012 was largely due to troubles in both
the world and domestic economy, leading to decreased aggregate demand and
difficulty in absorbing capital into the economy. However, credit had been
focused on more effective manufacturing sectors as well as ensuring economic
growth.
Despite
this, to reach the 2013 target of 12 percent, credit in the remaining months
must achieve an average growth rate of 1.4-1.5 percent. This figure is
equivalent to 40 trillion VND (1.8 billion USD) per month, representing a
huge challenge for the banking industry.
To
stimulate credit growth and handle bad debts, the central bank has directed
commercial banks to focus funding on five priority sectors.
Public-Private
Mix urged to improve TB prevention
A
seminar discussing the enhancement of the Public-Private Mix (PPM) model in
tuberculosis and HIV prevention in
With
rising demand for treatment at private medical facilities, the US Agency for
International Development (USAID) started a PPM project five years ago in
efforts to support the National Tuberculosis Control Programme (NTP) in four
initial provinces and cities, Hai Phong, Nghe An, Can Tho and Ho Chi Minh
City.
The
project has proven progress by raising the number of health facilities
participating in the project from 210 in 2007 to 1,100 in 2013 along with
helping the localities gradually address challenges such as tuberculosis and
HIV co-infection and drug-resistant TB.
It has
also helped increase case detection through the connection of private and
public facilities.
With
its success, the model was multiplied in more than 20 provinces and cities
nationwide.
However,
the project is facing difficulties, namely the maintenance of the private
services’ involvement, the lack of connection between private facilities with
public ones, and a shortage of human resources in maintaining PPM operations,
according to Nguyen Tuyet Nga, the project’s manager.
About
1.2-1.5 million people die from TB every year in the world and drug-resistant
TB is common in almost all countries, the World Health Organisation reports.
In
Vietnam
Airlines to sell 2.7pct stake in Techcombank
The
country’s national flag carrier Vietnam Airlines will sell more than 24
million shares it is holding in Techcombank on December 2, announced the
Hanoi Stock Exchange.
This
is the second time the corporation has called for the auction after the first
auction failed on September 26, as only one investor registered to buy.
The
shares, accounting for 2.7-percent stake in the bank, will be auctioned at
the
Although
no share were sold in the first auction, Vietnam Airlines had successfully
sold all of its nearly 828,000 ten-year convertible bonds in the first
auction to five investors, earning more than 109.8 billion VND (5.18 million
USD).
The
selling is part of the road map to withdraw capital from non-core lines of
business, in accordance with a restructuring scheme approved by Prime
Minister Nguyen Tan Dung for the 2012-15 period.
Vietnam
Airlines currently has 82 aircraft of various types, such as Boeing 777,
Airbus A330, Airbus A321, and it plans to expand its fleet to 101 planes by
2015 and to 150 planes by 2020.-
Gov’t
asked to contain inflation to attract more investors
The
chairman of the Bank of New York Mellon (BNY Mellon) in Asia Pacific has
suggested Vietnam continue putting great efforts on inflation control to
attract more foreign investors and to give a fresh catalyst to the country’s
growth.
“Investors
tend to be wary of a high inflation market,” Stephen D. Lackey answered the
Daily when asked about the way to effectively draw investment and to mobilize
capital for projects in Vietnam in tough times as currently when he made his
business trip to HCMC earlier this week to meet customers.
Lackey
said inflation in
“That
shows that the Government is serious about running the economy in a professional
manner and that helps bring in further investors,” he stressed.
The
Government’s report for the ongoing sitting of the National Assembly
indicated that drastic fiscal and monetary measures for macro-economic woes
over the past years had paid off. As a result, the consumer price index
plunged to 6.81% last year from 18.13% in the year before.
The
Government puts inflation at 7% this year, or one percentage point lower than
previous projection but still higher than last year.
Lackey
named higher growth projections in major export markets, including the
He
said, “If monetary policies are tight globally, that will continue to pull
money away from the emerging market, which may be difficult for
“Growth
rates for the
However,
“Unfortunately,
there are still a number of negatives for foreign investors and one of them
is high budget deficit. The second is accounting that is still viewed as
cloudy. Thirdly, that is very important for investors is the law within
From a
banker’s perspective, Lackey said
Lackey
noted the Government had taken policies regarding cleaning up the banks,
liberalizing the market or containing inflation, but everything could not
happen overnight.
Lackey
suggested by making the banking system more attractive, it was likely to
bring in foreign investments from the banks, who want to be serving the
financial needs of the Vietnamese.
Binh
Duong cancels $350 mln horse racing project
Earlier,
the province, immediately to the north of
Its
South Korean investors had expected a betting service, hotel, and shopping
mall would be included in the project.
However,
the luxury project failed to get a nod from the government.
Binh
Duong’s local government said it will build a 153-ha urban area and an
81.7-ha complex of various constructions on the land plot zoned for the
horseracing track.
The
proposal has been approved by the construction ministry.
Crown
opens new can factory in Vietnam
The
The
more than $40 million factory in the
Crown
Danang supplies two-piece cans for Vietnam Brewery Limited Danang, Saigon
Beer, Suntory Pepsico in neighbouring Quang
Crown
Danang is the largest foreign-invested project in
Lien
Chieu was developed by Saigon-Danang Investment Company under Saigon Invest
Group and is home to 23 Vietnamese and two foreign-invested projects. It
covers 182 hectares and more than 141 ha of that have been occupied.
Government
wage hike plan draws criticism
The
government plans to raise the minimum wage by 14-15 per cent in 2014.
According
to Government Office Chairman Vu Duc Dam, the government has received a
regional minimum wage increase proposal with hike levels ranging between 14
to 17 per cent from the National Wage Council and is under consideration
before making a final decision. The wage hike shall be applicable from
January 1, 2014.
“We
understand the importance of this wage increase to the lives of labourers,
who are struggling against many hardships. However, we have to carefully
consider the overall economy as well. We are being thorough and cautious,”
Dam said.
When
the National Wage Council proposed a regional 14-17 per cent wage hike for
2014, the
Though
a final decision is still pending, Dam said it is likely to be 14-15 per
cent.
At
current there are four minimum salary levels applied to labourers in
different regions. The highest is VND2.35 million ($110) per month and the
lowest is VND1.65 million ($79) per month.
Some
companies, such as Thanh Hoa-based Bim Son Cement say the increase will not
affect their workers’ pay as they are already getting well over the minimum
wage, around $140-$190 a month. The pay hike is a problem for the company
because it will require they pay more to social insurance.
“With
more than 2,000 workers we will have to spend several hundred thousand
dollars more to social insurance, thus driving up our input expenses at a
time we are seeing slowing sales. This would put us in a very difficult
situation,” said a source from Bim Son.
Also
against pay rises head of the Import Export Department at Phuc Yen Footwear
in Hanoi Nguyen Chi Toan said they would also be heavily burdened by
increased social insurance payments.
“Our
company is in the field of export processing and exports are down because of
shrinking global consumption. These wage hikes would require us to negotiate
higher value contracts with foreign partners, and this is very difficult,”
said Toan.
EuviPharm
sells 65% stake to foreign partner
Local
pharmaceutical company EuviPharm has sold a 65% stake to
HCMC
Securities Corporation (HSC) is active as financial consultant for EuviPharm
during the price assessment and dealing negotiations between the two sides.
Nguyen
Thi Cat Trinh, research director of HSC, said both sides had started talks on
the deal since early last year and then finished the stake transfer at the
end of July. To sell its shares to the Canadian partner, EuviPharm had issued
more shares to increase its chartered capital from VND190 billion to VND542
billion.
With
the deal, Valeant now holds a majority stake in EuviPharm, which enables
Valeant to manage the local enterprise actively with its wealthy experiences
to prop up the firm, Trinh noted, adding EuviPharm also had developed a good
distribution system. Holding the big stake is also a good chance for Valeant
to make pharmaceutical products right in
EuviPharm,
based in the Mekong Delta
Before
EuviPharm, many other local pharmaceutical companies had also transferred
shares to foreign partners like Domesco and Pymepharco.
In
fact, foreign investors including a slew of investment funds are tightly
holding big stakes in local pharmaceutical enterprises with few share
transfers seen. Foreign holdings in most local listed drug firms such as Hau
Giang Pharmaceutical Joint Stock Co. (DHG) and Traphaco have reached the
limit.
In
related news, pharmaceutical enterprises posted strong growth in profits in
January-September due to stronger demand in the market in recent times.
The
financial report of DHG indicates that the firm’s after-tax profit grew by up
to 112% in this year’s third quarter or around VND209 billion from the
previous quarter. Overall, the enterprise’s first nine-month after-tax profit
rose 26% over the same period in 2012.
Similarly,
Traphaco just announced its business performance in the third quarter, with
the company’s gross profit jumping 15.5% compared to the third quarter in
2012, while its net profit posted higher growth, at 41.5% or some VND40.5
billion. The entity achieved VND108 billion in profits in January-September,
leaping 35.8% year-on-year.
A
recent report of PriceWaterhouseCoopers unveils that due to worsening climate
change and environmental pollution, pharmaceutical demand per capita in
Securities
firms see clear divergence
The
securities industry has seen clearer divergence with large enterprises
earning high profits whereas small firms are struggling with losses or even
facing the danger of bankruptcy.
Only
around 80 out of 105 brokerages registered at the State Securities Commission
(SSC) are really active now. For the remaining enterprises, some have lost
membership status at the two local stock watchdogs or stopped giving main
services such as proprietary trading and brokering. Other firms have merged
with each other to reduce losses and escape the distress.
The
stock market is following a law of divergence, of which 20 biggest
enterprises hold a market share of nearly 80% while the remaining 20% is shared
among 60 small companies.
On the
Hochiminh Stock Exchange, the 10 securities firms with the biggest brokering
market shares in the third quarter accounted for up to 65.4%, a strong rise
compared to 57.7% in late 2012.
HCMC
Securities Corporation (HSC), for instance, held a 14.14% market share
against around 11.77% last year. HSC has always taken the lead for market
share since the stock watchdog started to announce brokering service data.
SSC
chairman Vu Bang said that securities firm restructuring process is taking
place. Small enterprises are still trying to reduce debts borrowed by
customers and other securities firms, make their financial situation
healthier and focus on risk management.
Some
small enterprises have had the intention to go bust but have failed to get
approval from SSC because of their unsettled financial arrears. After the
restructuring period ends, aside from enterprises that can survive
difficulties thanks to new capital and investors, some enterprises will have
to leave the playground in the coming time, Bang said.
In the
third quarter, many securities enterprises escaped from losses and gained
back earnings as proprietary trading brought about profits given better
developments on the stock market. The enterprises included HSC, SSI and ACBS,
which had strong financial capability and biggest brokering market shares.
Meanwhile,
small firms such as Viet Thanh, An Thanh, Kengana, Mirae Asset, Woori and Sen
Vang were still facing great hardship due to small market shares. They also
failed to continue proprietary trading or had no financial capability.
The
HCMC Farmers’ Association from next year will send farmers with good skills
in agricultural production abroad to learn technologies and pick up some new
experiences.
According
to the association, 100-125 directors and farmers of the city will head to
those with strengths in high-tech agricultural production such as
The
first overseas training trip will take place in
However,
one of the activities that the project has mapped out is to send farmers to
learn shrimp farming technologies in Asian countries, even though the
large-scale shrimp farming level of
Regarding
this matter, Nguyen Van Tui of the economic committee of the association,
explained that his association had put shrimp farming into the project as Can
Gio was home to shrimp farming households but that several fields in the
project could be changed in the future.
The
city has always offered policies and capital targeting hi-tech agriculture
development in recent years, focusing on high-value products such as orchids,
dairy cows and ornamental fish.
The
city has recently introduced a high-tech experimental dairy farm based on the
financial and technical support from the Israeli Government to increase the
milk supply from the dairy cow herd citywide from 5,000 kilos per head
annually to 8,000 kilos.
Besides,
the municipal agriculture department now is deploying a project on
establishing and boosting outlets for local ornamental plants, including
developing new orchid varieties to replace imported ones.
With
the hi-tech investment in the agriculture industry, the revenue of one
hectare under agricultural cultivation in the city averaged out at VND239
million annually in 2012, up VND43 million against 2011 and nearly VND99
million from 2010.
Spearhead
industries in city barely grow
The
average growth rate of HCMC’s four key industries, namely mechanical
engineering, electronics-information technology, chemicals and food
processing, is only 5.5% in the January-October period while such industries
account for up to 57.3% of the city’s total manufacturing sector.
At the
city government’s meeting on socio-economic performance and budget spending
in October, experts said that the competitiveness of major industrial
products, especially electronic and engineering ones, was still blunt.
The
HCMC Department of Planning and Investment’s report indicates that the
average growth rate of the four major industries is lower than the overall
growth index of 5.9%. Besides, electronics-information technology and
mechanical engineering grow by only 2.9% and 4.7% respectively.
According
to Tran Anh Tuan from the city’s Institute for Development Studies, there are
many reasons for such low growth of the four major industries that have been
termed spearhead industries, but the big concern is the weak competitiveness
of engineering products and the declining purchasing power of electronic
items.
“I
think the four industries need more supports in terms of policy,” Tuan said.
HCMC
exported US$15.8 billion worth of products in the ten-month period, down 3.2%
year-on-year (crude oil excluded) while import spending increased by 15.5% to
US$21.6 billion, resulting in a big trade deficit of US$5.4 billion.
The
decline in export turnover, according to Tuan, also results from the low
competitiveness of products compared to those of other countries.
Some
products with dropping export turnover are rice with a decline of 49.6%,
coffee with 22%, seafood with 17.2% and footwear with 3%.
A
senior finance official of HCMC said on Tuesday it is extremely difficult to
realize the budget revenue target this year given the shortfall in
collections in the year to date.
Dao
Thi Huong Lan, director of the municipal Department of Finance, told the
10-month socioeconomic review on Tuesday that the city had to collect VND26.7
trillion each month in the rest of this year to realize the target. In the
year to date, budget revenue collections averaged out at VND19.2 trillion per
month.
“The
city will have to collect some VND16.82 trillion from domestic sources and
over VND9.95 trillion from import-export taxes if the target set by central
authorities is to be realized,” she said.
Of the
amount of VND192 trillion collected for the State budget in January-October,
some VND100.4 trillion was generated from domestic sources, VND26 trillion
from crude oil, and VND60.14 trillion from import-export taxes. The total
amount accounts for 80% of the year’s target.
“Given
the budget revenues realized in the year’s first ten months, it is extremely
difficult for the city to collect VND26.7 trillion each month in the rest of
this year,” she stressed.
The
city government estimates total revenues collected for the State budget this
year should be around VND216.95 trillion, or a shortfall of nearly VND20
trillion compared to the target assigned to the city by the central
Government.
2013
proves to be a tough year for the city’s economy with many enterprises
incurring losses. Despite the central Government’s policy to exempt, reduce
or reschedule tax payments for enterprises, the budget revenue target for the
city is still 20.7% higher than the realized amount in 2012.
Despite
the seemingly-insurmountable hardship, HCMC Vice Chairman Hua Ngoc Thuan at a
meeting of the city’s Party Committee two weeks ago still promised to collect
sufficient revenues for the State budget.
Thuan
said measures would include thorough examinations for prompt collection of
taxes. In addition, tax inspections would be launched to fight tax evasions,
especially those related to transfer pricing, transfer of assets and trade of
copyrights and brands.
Spearhead
industries in city barely grow
The
average growth rate of HCMC’s four key industries, namely mechanical
engineering, electronics-information technology, chemicals and food
processing, is only 5.5% in the January-October period while such industries
account for up to 57.3% of the city’s total manufacturing sector.
At the
city government’s meeting on socio-economic performance and budget spending
in October, experts said that the competitiveness of major industrial products,
especially electronic and engineering ones, was still blunt.
The
HCMC Department of Planning and Investment’s report indicates that the
average growth rate of the four major industries is lower than the overall
growth index of 5.9%. Besides, electronics-information technology and
mechanical engineering grow by only 2.9% and 4.7% respectively.
According
to Tran Anh Tuan from the city’s Institute for Development Studies, there are
many reasons for such low growth of the four major industries that have been
termed spearhead industries, but the big concern is the weak competitiveness
of engineering products and the declining purchasing power of electronic
items.
“I
think the four industries need more supports in terms of policy,” Tuan said.
HCMC
exported US$15.8 billion worth of products in the ten-month period, down 3.2%
year-on-year (crude oil excluded) while import spending increased by 15.5% to
US$21.6 billion, resulting in a big trade deficit of US$5.4 billion.
The
decline in export turnover, according to Tuan, also results from the low
competitiveness of products compared to those of other countries.
Some
products with dropping export turnover are rice with a decline of 49.6
percent, coffee with 22 percent, seafood with 17.2 percent and footwear with
3 percent.
State
budget for IT application trivial
The
State budget allocated for information technology (IT) application at
State-owned companies in 2014 and 2015 is only VND200 billion, which is said
to be too small compared to the demand, heard a meeting in
At the
meeting, Phung Van On, director of the IT Center under the Government Office,
ascribed the low State budget set aside for IT application at State-run
companies to financial constraints.
Nguyen
Thanh Phuc, head of the IT Application Department under the Ministry of
Information and Communications, commented that the central budget for IT
application at State firms was just a small fraction compared to the actual
demand.
Statistics
compiled by Phuc’s department indicate that trillions of Vietnam dong is
needed for meeting IT application demand among local ministries, agencies and
localities while only VND200 billion is to be sourced from the State budget.
In the
meantime, another report of the information and communications ministry said
that the IT application demand in eight cities and provinces set for next
year alone exceeds VND206 billion.
The
ministry therefore has suggested tackling capital shortages for IT
application at State enterprises, including extending the implementation
schedule of many projects set for the 2014-2015 period. Such projects are
needed to create a foundation for developing the e-Government model.
As per
Decision 1605/QD-TTg issued on August 27, 2010 approving the national program
on IT application by State entities in 2011-2015, there will be 56 IT schemes
deployed with an estimated cost of VND1.7 trillion. However, the State budget
allocated to these projects was trivial, at only VND120 billion in 2011 and
VND100 billion in 2012.
Can
Tho targets 1.3 mln tonnes of rice in 2014
The
Mekong Delta city of
Local
authorities decided to broaden VietGAP and Global GAP standard large-scale
rice fields to 14,000-20,000 hectares in the year in a bid to increase the
output of high-quality rice to help farmers earn higher incomes.
As a
regional granary, Can Tho has set to gradually speed up the ecological rice
farming process as well as renovate its processing technology to churn out
rice products of high economic value.
In
2013, rice productivity in the locality averaged 5.77 tonnes per hectare on
the total rice farming area of 236.538 hectares, giving a yield of over 1.36
million tonnes of paddy rice.
Can
Tho has set a target of exporting 860,000 tonnes of rice in the year, up
40,000 tonnes from 2012.
As by
October 14, the city shipped 755,000 tonnes of rice, earning 359.7 million
USD, showing a year on year rise of 14 percent in volume and 22 percent in
value.
Apart
from main markets in Asia, Africa, Europe, Oceania and the
Office
helps further Vietnam-Bulgaria economic ties
Bulgarian
businesses will have more chances to increase their operations in
Bulgarian
President Rosen Plevneliev, who is on an official visit to
Addressing
the event, the President described the establishment of the office as a sound
and timely initiative to help realise important cooperative documents reached
by the two countries and direct their relationship towards a strategic
partnership and a new economic cooperation model.
The
leader committed to making it easier for Vietnamese goods to enter
Bulgarian
businesses wish to invest in
For
her part, Hong said the office marks a new height in economic and trade ties
between
She
expressed her hope that with a strong contingent of businesses operating in various
fields,
The
same day, Roesen Plevnelive and his entourage visited the historical relic
site of Cu Chi underground tunnel and
Earlier
on October 30, the President attended an artistic programme at the HCM City
Conservatory of Music staged by Bulgarian artists and met with Vietnamese
people who once worked or studied in
Seminar
aims to promote integrity in doing business
The
role of enterprises in corruption fight was one of the focuses of a seminar
on enhancing business engagement in promoting integrity in doing business in
The
two-day seminar, jointly held by the Government Inspectorate, the Vietnam Chamber
of Commerce and Industry (VCCI) and the British Embassy, was the third of its
kind on implementing integrity in businesses’ operation.
The
outcomes of the event would serve as the inputs for the 12 th Anti-Corruption
Dialogue between the Vietnamese Government and international donors to be
held on November 12.
Participants
also discussed corruption challenges faced by businesses in doing business
and the response of the Vietnamese legal system to settling corruption cases.
In a
survey on corruption, bribe and fraudulence in business operation conducted
in 2012, most businesses agreed that corruption is a matter of great concern,
just after high living costs, according to Deputy Inspector General of the
Government Inspectorate Tran Duc Luong.
The
seminar offered a chance for mangers, enterprises and relevant agencies to
exchange views and reach a consensus on the issue, contributing to creating a
transparent, equal and non-corruption business environment towards
sustainable development in
According
to British Ambassador Antony Stokes, enterprises are both victims and actors
of bribery. Thus, they will be the pioneers in corruption fight towards
integrity and transparency in doing business.
More
than 800 leading CEOs and top economists and policy makers in Vietnam
gathered at Vietnam CEO Forum 2013- CEO 3.0: “Reform to Perform” to discuss
on how CEOs do effective change management amid upheaval global economy in Ho
Chi Minh City on October 30.
Addressing
the forum, Minister of Science and Technology Nguyen Quan said to reach the
sustainable development goal in the new context, the role of CEOs was vital
in dealing with challenges and opportunities for local businessmen,
contributing to sustainable growth.
He
hoped that the forum will help businesses pay more attention to updating
information, improving management skills and investing more in machinery so
as to increase production and produce highly competitive products.
Under
the event’s framework, economists provided participants a broad picture of
Vietnam economy, and their forecast on the upcoming challenges, and the
impact of future trade agreements on Vietnamese businessmen. They also
proposed solutions on how to overcome challenges and worked out management
changes so that Vietnamese businessmen can change to success.
The 2
nd annual largest CEO event was co-organised by top five business
associations in Vietnam and the Young Businesspeople Association of Ho Chi
Minh City.-
Vietnam-China
int’l trade fair slated for mid-November
The
2013 Vietnam-China International Trade Fair is slated to take place in the
northern border province of Lao Cai from November 13-18 under the theme
“Cooperation-Friendship and Integration-Development”.
Lao
Cai and China ’s Yunnan province take turns to host the annual event with the
aim of promoting trade cooperation between the neighbouring localities.
It is
expected to accommodate nearly 700 pavilions, of which more than 200 run by
Chinese businesses, showcasing a wide range of products such as
agro-forestry, seafood, machinery, electronic equipment, chemical,
handicrafts, pottery, timber furniture and household commodities.
A
number of activities will be hosted during the event, including a seminar on
Vietnam-China business exchange and a conference to forge trade links between
enterprises from China , Lao Cai and Vietnam ’s southern province of Dong Nai
. Several economic contracts are expected to be signed on the occasion.
UAE
among Vietnam's 10 largest trade partners
On the
occasion the Forum on Economic Cooperation between Vietnam and partners from
the Middle East and North Africa to be organised on November 4-5, Vietnam
Business Forum introduces an article by Ahmed Ali Almualla, Ambassador of the
United Arab Emirates to Vietnam.
We are
delighted at the distinguished record of active cooperation ever since we
established diplomatic relations in 1993. Today, our two countries have
continued an effective cooperation in politics, trade, investment, culture,
education and labour, as well as reinforced high-ranking visits and friendly
exchanges.
Additionally,
many investment and trade promotion delegations between the two countries
have been underway over the last time. Both UAE and Vietnam always stand to
support and coordinate with each other in international forums. We share a
common point of view of international issues, regional security.
Bilateral
trade turnover has rapidly increased over the past 10 years from 67 million
USD in 2002 to more than 2.4 billion USD in 2012. During the first quarters
of 2013, the bilateral trade was estimated about 3.4 billion USD. It is
therefore predicted to reach over 4 billion USD for the whole year 2013.
Vietnam has often a trade surplus with UAE. So far, the UAE has become the leading
market for Vietnam's exports in the Middle East and North Africa, and is
acknowledged as one of the top ten trade partners of Vietnam. Meanwhile, the
UAE has invested extensively in Vietnam through many projects. The UAE’s
companies also accept a large number of employees of Vietnam who play a major
role in the development of the UAE and we look forward to increasing the
number in the coming years.
Recently,
the launch of direct flights Dubai – Ho Chi Minh City by Emirates Airlines in
2012 and Abu Dhabi - Ho Chi Minh City by Etihad Airways in 2013 - the two of
the world’s fastest growing airlines, have expanded their global network with
daily service between UAE – Vietnam that has contributed further the
development of trade, investment and tourism between the two countries.
Indeed, our direct flights have met the travel demand for tourism and
business purposes as well as cargo transportation between Vietnam’s bustling
trade hub of Ho Chi Minh City and the UAE, the Middle East and the EU.
With
its strategic location, comprehensive infrastructure, more than 30
state-of-the-art free zones throughout the country and open economy policies
to attract foreign investment, the UAE is the second biggest economy in the
Middle East and also plays an important role in the region’s business and
economic affairs.
Besides
Abu Dhabi, Dubai is not only a big consumption market, but also an important
re-export centre for other countries in the region as well as the third
biggest re-export centre globally. The Emirate takes up 75 percent of total
imports of the UAE, Dubai takes up 82 percent of non-oil exports of the UAE,
Dubai accounts for 78 percent of total re-exports of the UAE to other Arab
countries and the MENA markets.
Every
year, a large number of international exhibitions and trade fairs are held in
Dubai, which are good opportunities for Vietnamese businesses to look for UAE
partners. We look forward more Vietnamese companies to participate in the
fairs and exhibitions i.e. Gulfood, Index, Big 5, Dubai Seafood, Autumn
Fairs, Garment and Textile Exhibition, Annual Festival for Global Village,
Dubai Rice, etc.
More
than 25 percent of the world’s top 500 companies currently base their
regional headquarters and trade centres in the Emirate, a testament to the
important role played by our country in the region’s business and economic
affairs.
I
think the Vietnamese Whole-sale Trade Centre established recently in Dubai in
line with the Vietnam export strategy to 2020 that will be a venue to
showcase Vietnamese products and organise workshops and seminars where
Vietnamese companies can sign big export contracts. The centre is located
near Dubai seaport which handles large volumes of goods shipped to the Middle
East. The Middle East is a promising market, especially for agricultural
products, since there is a population of more than 210 million while 60
percent of the food needs are imported.
In my
opinion, the centre should showcase agro-forestry and fisheries products and
furniture, textile and garments, products which UAE has high demand for, and
which are prevalent in Vietnam.
The
activities of trade promotion agencies and the private sector of both sides
should be strengthened further with a view to activate the agreed minutes
after the first session of the Joint Committee for Cooperation between
Vietnam and the UAE.
I am
pleased to know that many companies from the UAE want to participate in trade
fairs and exhibitions held in Ho Chi Minh City and Hanoi, like Vietnam Expo
as well as Vietnam companies to attend international trade fairs in the UAE
over the last time. After that, many business contracts and deals can be
signed between with the private companies of both sides.
Over
the last time, Vietnamese businesses highly appreciated the initiative by UAE
Embassy in coordination with the Vietnam Chamber of Commerce and Industry
(VCCI) to successfully organise the seminar on UAE-Vietnam Trade and
Investment Cooperation Opportunities in three big cities of Vietnam,
especially in the context of Vietnam strengthening its cooperation with other
countries in the Middle East and North Africa. Hopefully, more seminars and
forums like this will be held in both countries to boost trade and investment
in the coming time.-
Export
structure shifts vigorously
Viet
Nam has witnessed a relative export expansion in both scale and speed and
seen a positive shift in export structure.
Total
export turnover touched approximately US$ 108 billion in the past 10 months,
higher than the annual figure of the years prior to 2011. The figure was
estimated at US$ 131 billion for 2013, soaring 14.4% against last year.
Export
has shown as an outstanding field, a momentum and a gateway for the economy.
According
to the General Statistics Office (GSO), export turnover of raw materials
declined by over a third in 2005-10.
Specifically,
crude oil export fell from around 18 million tons in 2005 to 9.25 million in
2012 (a half) and over 5.94 million in the first ten months of 2013. Coal
export dropped to over 9.8 million tons in January-October in 2013 from 32.1
million in 2007 and 15.2 million in 2012.
According
to initial statistics, export turnover of raw materials and primary
commodities was estimated at US$ 32.1 billion in the first ten months of
2013, representing almost 30% of export revenue, down around 4.5% against the
same period last year.
Especially,
coal witnessed the sharpest decline of 29.1%; followed by coffee 23.9%; rice
16.9%; crude oil 14.2% and rubber 13.7%.
Meanwhile,
export of processed products valued around US$ 75.9 billion, occupying over
70% of total export revenue and surging 26.3% against the same period last
year. Overseas shipments of telephones and spare parts, computers, chemicals,
suitcases, umbrellas, garments and textiles, and footwear were higher than
the general growth rate of 15.2%.
Of the
products, high-tech commodities gained higher growth rate and made up a
relative proportion. The group of product earned over US$ 35.44 billion,
making up 32.8% of total export revenue and picking up 44.2% against the same
period last year.
The
positive shift in export line structure has helped develop the scale and
growth rate of export.
The
FDI sector mainly attributed to the shift in export line structure as they
mainly operate in high-tech and processing industries.
Experts
suggested the domestic sector seize the opportunities and accelerate the
development of the auxiliary industries in order to generate more jobs and
reduce heavy reliance of imports.
Source:
VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
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Thứ Tư, 6 tháng 11, 2013
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