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BUSINESS IN BRIEF 2/12
FPT
brings IT expertise to State Audit Office
FPT
Corporation will support the State Audit Office of Viet Nam to implement
information technology (IT) in the 2014-20 period.
Under
a recent strategic co-operation agreement, the company will bring advanced
technology to administrative management and audit operations and provide the
state agency with IT and telecoms services at preferential prices.
The
agency hopes the co-operation will help build modern IT infrastructure and
boost auditors' IT skills.
The
total quantity of goods shipped through
According
to the port's general director, Nguyen Hung Viet, container cargo exceeded
740,000 TEUs (twenty-foot equivalent units).
The
port was expected to distribute the largest volume of goods, over 24 million
tonnes, among the northern ports in 2013. It would gain some VND1.9 trillion
(US$90.48 million) in turnover by the year-end.
VietJetAir
offers discount for ANZ customers
VietJetAir
said yesterday it would offer a 30 per cent discount to all ANZ credit card
users from now until January 31, 2014.
The
promotion is a collaboration between VietJetAir and ANZ to provide cheaper
tickets to customers.
The
number of discounted tickets is limited to 100 tickets per week.
Life
insurance market to surpass annual growth target
This
year's revenues for this segment is estimated at more than VND21.15 trillion
(US$1.01 billion), Viet Nam Insurance Association general secretary Phung Dac
Loc said at a two-day conference that opened yesterday.
The
"Viet Nam Insurance 2013 – Capturing Viet Nam's Fast Growing Insurance
Market" conference is organised by IBC Asia, a division of Informa Plc,
the largest publicly owned organiser of conferences and courses in the world.
The
non-life insurance segment is expected to meet the 10 per cent growth target
for the year, although it saw a negative growth rate of minus 5 per cent in
the first quarter.
However,
the segment rallied in the second and third quarters with growth of 5 per
cent and the third quarter sees 8.6 per cent growth. It is expected to post
revenues of VND25.034 trillion ($1.19 billion) this year.
The
country would celebrate 20 years of Vietnamese insurance market development
next month, Loc said, adding the demands on life insurance and health
insurance has increasing rapidly in the past time.
Over
the past 20 years, there were 20 million school students, 5 million
labourers, 1.5 million auto owners, 7 million motorbike owners, 200,000
business owners and more than 6 million other people who have joined life
insurance schemes.
Many
foreign-invested companies in transportation, telecommunication, oil
exploitation, electricity, tourism and shipbuilding sectors have also
purchased insurance, he said.
Organisers
said the conference aims to provided a platform for insurance companies and
finance organisations to capitalise on the Vietnamese market.
The
conference will focus in particular on the latest strategies in product
development, designing effective marketing campaigns and establishing
cohesive distribution channels.
Among
the topics discussed yesterday were the strengthening of regulatory
frameworks to support further development of
Jack
Howell, chief executive of Prudential Viet Nam, said the Vietnamese insurance
market is relatively small now, but poised to grow in the near future.
He
said, "strong GDP growth will help drive the Vietnamese insurance market
and a strong distribution system will help drive growth for firms in
The
market growth needs to incorporate anticipated product needs based on the
economy and demographics, Howell said.
Along
with sales, companies are responsible for educating consumers on the value of
life insurance and financial planning since it (customer education) a is key
pre-requisite to customer acquisition, he said.
Education
will help to ensure that the market enjoys sustainable and responsible
growth, he said.
Le Hai
Phong, executive director and chief financial officer of Bao Viet Holdings,
said that the insurance industry played a relatively weak role in the
Vietnamese economy, but has the capacity and potential to expand and
contribute much more.
He
said there were still many gaps between local practices and international
best practices that need to be narrowed, especially in capital management,
risk management and International Financial Reporting Standards. Industry
regulators in
Today,
conference participants will continue their discussions on raising insurance
awareness in developing markets, the future of micro-insurance and private
health insurance development in
Fisherman
opt for makeshift canal over costly fishing port
Head
of the fishing port Tran Sau has said local fishing vessels prefer to use
small canals for handling fish and maintenance over Tien Chau Fishing Port.
The
port, located in Tuy An District of central coastal
Located
near the small canal, daily deliveries to the port have dropped to a mere 200
tonnes of fish per year, only 3.3 per cent of the facility's total capacity,
he said.
This
trend has rendered the port a wasteful infrastructure project, he added.
Pham
Quang Quam, a local fisherman who spoke with Lao Dong (Labour) newspaper,
explained the depth of the 1.6-km stream, which leads fishing vessels to the
port, was so low that it was too difficult to enter.
The
dock of the port was also 2-3 metres higher than the broadside of fishing
vessels, he said, adding that alluvial sendiment had caused the low sea
levels.
Fishermen
are not finding it hard to load or unload fish, he said.
A lack
of fishing-related logistical services at the port, including sorting and
processing facilities, was one of the major reasons why fishing vessels were
ignoring the port, he said.
Meanwhile,
the small canal now frequented by fishing vessels, run by several local
dealers, was being used by fishermen to sort and preserve their fish, he
said.
The
port submitted to the People's Committee of the district to finance a
fisheries logistics service to lure more fishing vessels, but no feedback has
been received, he said. Sau also added that an inspection team from the
Ministry of Agriculture and Rural Development had visited the port earlier
this month.
The
Regional
forum tackles petrol woes
The
ASEAN Council on Petroleum (ASCOPE) Conference and Exhibition opened
yesterday at
Held
every four years, alternating between member countries, the event is one of
the most important activities of ASCOPE.
It
showcases the ASEAN petroleum industry to the world and provides a forum for
the regional and global petroleum industry to discuss new technologies,
petroleum economics, co-operation in energy security and environmental
concerns.
This
year, the three-day conference and exhibition hosted by Viet Nam Oil and Gas
Group (PetroVietnam), includes the theme of "Innovation and Co-operation
– The Way Forward."
It has
attracted about 120 international and local exhibitors and 300 conference
delegates.
In his
welcome message, Deputy PM Hoang Trung Hai said, "We are living in an
era overwhelmed by rapid economic growth, rising populations and accelerating
urbanisation, which increase demand for oil and gas resources."
"
Hai
added: "How will the ongoing global climate change impact natural
resources? What can we do to preserve, on the one hand, and utilise, on the
other, such valuable resources?"
He
went on, "And how does the oil and gas industry contribute to future
economic growth and energy security of each and every country? Those are not
the only concerns for
During
the three-day exhibition, leading companies of the oil and gas industry will
showcase tools and technologies for oil and gas exploration, production and
transportation; equipment for energy resources; metering and control; and
automatic process control systems, and local area networks.
They
will also demonstrate integrated operational systems for plant management;
software and innovative projects for oil and gas facilities construction; a
wide variety of fittings; and protective equipment and services for oil and
gas complex.
In
addition to pavilions from members, there are also booths from
Other
conferences will also be organised during the event to focus on the pressing
issues of the oil and gas industry and provide timely insights into ASEAN
petroleum business and challenges as well as solutions.
ASCOPE
was established in 1975 as an instrument for regional co-operation among
ASEAN countries.
ASCOPE-member
countries are represented by their respective national oil companies or
authorities in charge of petroleum issues.
Hanoi
to ensure goods supply for Tet
The
Hanoi People’s Committee has pledged to make preparations ahead of the
upcoming Lunar New Year (Tet) to balance supply and demand of goods and
stabilise prices of staple commodities.
The
city has ordered businesses to proactively conduct surveys and source
commodities from other localities in addition to local products.
Thirteen
businesses that have registered to join in the price stabilisation programme
are set to sell their goods at 610 outlets across the city.
From
now until the Tet holiday,
At a
working session with the People’s Committee on November 28, Deputy Minister
of Industry and Trade Ho Thi Kim Thoa requested the city to focus on staple
commodities and intensify market control to ensure food safety.
In the
periods before and after Tet, Hanoi consumer demand increases 15 – 18 percent
compared to other months, and mainly for food, confectionery and soft
drinks.-
Manulife
survey suggests poor planning likely to lead to future hardship
A
gaping savings hole between the expected savings and actual retirement needs
of Asian investors points to financial hardship in retirement for many,
according to the latest Manulife Investor Sentiment Index, released last
week.
The
survey, based on 3,500 interviews across seven
As a
result, a large proportion of investors are relying on fall-back options,
such as extending their working life or relying on their children’s support,
which may not prove reliable.
“For
anyone leaving it until later in life to start planning for their retirement,
making up the shortfall will become harder and harder. The reality is that,
without a clear plan, it won’t be alright on the night," said Robert A.
Cook, President and CEO of Manulife Financial in
Pensions
also became a hot issue in
Currently,
only 21 per cent of elderly people in
According
to the survey, Asian investors on average expect to depend on retirement
savings for an average of 19 years, but the amount they claim they will have
saved by the time they retire will cover only 13 years – a six-year
shortfall. In some markets the gap is even higher, rising to 13 years in
And
since Asians are living longer and commonly underestimate their longevity, it
is highly likely that for many the retirement gap will end up being even
greater.
The
survey also pointed out that many Asian investors are either leaving their
retirement planning too late or not starting to plan at all. Of those who
have started planning (55 per cent), about one-in-five did not start until a few
years before retirement, while another quarter waited either until having
children or until their children had finished school. Of the 45 per cent of
investors who do not yet have a plan, nearly half said they would wait until
their children had finished school or until they were nearly retired, while
another fifth said they did not expect to start at all.
Reflecting
the lack of robust retirement planning, many investors appear to be relying
on factors that may be out of their control, like health, the job market and
other people being willing and able to help, said the survey.
Across
the region an average 55 per cent expect to continue in full-time or
part-time work during so-called retirement. This response was even higher in
Korean
food giants look to
As
part of their continuing expansion in Asian markets, Korean food giants have
growing demand for materials from
In
September,
The
plan is split into two phases. In the first CJ is experimenting with a one
hectare area through 2014.
In the
next the two sides will discuss cooperation in growing a large scale chili
area over 10 years, or longer. About 3,000 local farmers are expected to be
involved with an estimated output of 3,000 tonnes of dried chilies per year,
from 12,000 tonnes of fresh chilies.
The
Korean group is also considering building a chili processing and packaging
plant in the province. It aims to also produce different sauce products once
material production is stable.
CJ
Group experts would provide high-quality chili varieties and technology
transfer, as well as guarantee appropriate purchasing prices from farmers.
“In
the past,
“Strict
production, delivery, and good quality control are of paramount importance at
CJ,” Lee added.
Leading
Korean retailer Emart is also looking to diversify its material supply
sources.
Emart
assessed the quality of vegetables and lobsters from Vietnamese producers and
was reportedly not pleased with the results.
“Vietnamese
firms need to improve their production standards and redesign their packaging
to convey the message of quality to their consumers and import partners,”
said Lee Chang Hun, in charge of procuring food and agricultural products for
Emart.
Lee
said Vietnamese instant coffee brand G7 and several household appliances in
Emart only account for 2 per cent of similar imported product volumes at
their stores and that online sale of Emart products in
Regarding
Emart’s plan to open its first mega-supermarket in
General
secretary of the ASEAN-Korea Centre Chung Hae Moon said there are great
efforts by countries in Asia, particularly in
“Korean
firms need to reach strong, sustainable agreements on material supply with
Vietnamese firms to effectively tap the region’s development opportunities
after 2015,” said Chung.
Soc
Trang provides sweeping opportunities for wind power
The
Mekong Delta coastal
With a
72km long coast and the estuaries of Tran De, My Thanh and Dinh An, the
province has enormous potential for the development of processing industries,
tourism and shipping services, and particularly wind power.
In the
province’s coastal districts, wind velocities at a height of 60 metres
average 6.3 metres per second. It was estimated that with some $3.45 billion
in investment Soc Trang could host wind farms capable of producing 1.177
gigawatts of electricity.
The
districts of Tran De and Cu Lao Dung and Vinh Chau town have been
specifically earmarked for wind power development.
Field
surveys in Vinh Chau town’s coastal areas conducted by Enercon Group - a
global wind power equipment manufacturer, found the area had huge potential
for wind power development compared to other locations in the Mekong Delta.
A
source from Enercon revealed the group would take the plunge and begin
procedures for a one billion euro/2,600 megawatt-capacity wind power
investment project in Soc Trang.
According
to
The
Soc Trang Provincial People’s Committee has given in-principle agreement for
eight wind power investment projects in the province with a combined capacity
of about 1,000MW.
These
include the Tran De district-based wind power farm project by Lien Nghia
Investment JSC with an estimated capacity of 565.4MW, Vinh Chau town wind
power farm project owned by a consortium consisting of local partner Traseco
and Germany’s EAB Group with an estimated capacity of 120MW, Cong Ly Soc
Trang wind power farm owned by Cong Ly Construction-Trade-Tourism Limited in
Vinh Chau town’s Lai Hoa commune with an estimated capacity of 200MW and Quoc
Vinh Company Limited’s wind power farm project in Vinh Chau town’s Vinh Hai
commune with an estimated capacity of 120MW.
Despite
economic difficulties in the past year, Soc Trang has managed a robust pace
of growth. In 2012 the province’s gross domestic product (GDP) registered a
9.1 per cent growth compared to the national average of 5 per cent.
Soc
Trang is drafting its wind power development plan for the 2012-2020 period
with a vision towards 2030 which will soon be submitted to the Vietnamese
government for consideration.
Can
Tho intensifies IP construction
In the
past years, the Mekong Delta city of
The
city authorities have attached special importance to industrial park (IP)
development providing the bedrock to spur provincial socioeconomic
development.
From
January to October this year, Can Tho’s export processing zones (EPZs) and
industrial parks (IPs) attracted six investment projects worth $20.5 million
in total committed capital while 19 existing projects received $20.7 million
in supplemental capital. Two other projects are also expected to locate to
Can Tho’s EPZs and IPs while an existing project will seek supplemental
capital before the year’s end.
Can
Tho’s EPZs and IPs are home to 208 projects covering 564.9ha of land for
industrial production with a total committed capital of $1.85 billion of
which disbursed capital amounted to $842 million, tantamount to 45.5 per cent
of total.
Of
them, 186 domestic investment projects registered $1.6 billion worth in total
committed capital and $677 million in disbursed capital, equal to 40.5 per
cent of total. Twenty-two direct foreign investment projects reported a total
committed capital of $182.4 million. Disbursed capital reached 90 per cent of
total committed capital, equivalent to $165 million.
Of
existing IPs in Can Tho, the 135 hectare Tra Noc I IP has leased out its land
for industrial production to investors with a total registered capital of
$383.5 million across 122 projects. Tra Noc II IP, covering 157ha, reported
an 86 per cent plus occupancy rate with 58 investment projects worth $575
million in total registered capital.
Besides
these two IPs, another six IPs are under construction in the city.
Hung
Phu I, Hung Phu 2A and Hung Phu 2B IPs are located just 4km from the centre
of Can Tho. Adjacent to these IPs is the state-of-the-art Cai Cui seaport
which can receive 10,000-20,000 dead weight tonnage ships, while road links
intersect with
These
IPs are located just 12km away from Can Tho airport and 11km from Can Tho
port.
Priority
investment areas in the IPs are mechanical manufacturing, electrical and
electronic assembling, agricultural and seafood processing, frozen and tinned
poultry and meat products; building material production, pharmaceuticals and
cosmetics, and other processing industries; transport and import-export
business.
Thot
Not IP, 60km north of Can Tho, faces National Highway 91 in the south and
The IP
welcomes investors in agricultural and seafood processing and mechanical
engineering serving agriculture and rural areas as well as urban development.
Besides
these six IPs, Can Tho is engaged in planning the 600ha O Mon IP and 400ha
North O Mon IP which are positioned in O Mon district, 20km from the heart of
Can Tho.
Construction
of these six IPs has lagged behind schedule due to land clearance woes or
capital shortages on the part of investors. Can Tho Export Processing and Industrial
Zones Management Authority asked the IP developers to provide a report on
their problems in order to allow their difficulties to be resolved, helping
speed up the pace of construction.
For
the IPs which still source developers, Can Tho city is calling financially
capable investors to come on board to build IP technical infrastructure, from
there helping the province attract more investors serving socio-economic
development.
In
2013, businesses based in Can Tho EPZs and IPs expect to rake in $1.387
billion in total revenue. This included $1.028 billion in total industrial
production value and $358 million from trade services. Their total export
value was an estimated $538 million.
In the
long-term, Can Tho believes it would see a bright outlook in attracting
investment to its EPZs and IPs as the city’s investment environment has been
steadily improved.
The
Vietnamese government recently focused on upgrading and developing technical
infrastructure in the Mekong Delta region, particularly the transport
network. Many key national-level utilities have been built in Can Tho, such
as Can Tho international airport, Can Tho bridge, Cai Cui seaport, the road
in the south of Hau River and O Mon power generation complex. The results of
these giant construction works provide a major opportunity for the city to
catch the eyes of investors.
Vinh
Long prepares for investment wave
The
Mekong Delta
Vinh
Long is a fertile agricultural land with convenient transport links for trading
with Southwestern provinces and cities. The province lies at the lower
section of the
The
province has a dense network of rivers and streams, linking Vinh Long through
the estuaries of Tieu, Dai, Ham Luong, Co Chien and Dinh An. These
characteristics have made Vinh Long an important location in the development
strategy of the Mekong Delta region and the southern key economic zone.
Vinh
Long is located between the economic hubs of
Like
many other provinces and cities across the country, Vinh Long has a temperate
climate that is suitable for aquaculture, rice cultivation and many other
high value crops. With an annual yield of one million tonnes of rice, 500,000
tonnes of fruit and 200,000 tonnes of aquatic products, Vinh Long is an ideal
place for agricultural processing industry investors.
In
addition, Vinh Long is known for famous traditional craft villages such as
brick and tile, porcelain and pottery, embroidering and knitting and weaving
sleeping mats. Many of these products have been shipped abroad. The province
is also famous for long-standing cultural and historical sites like Van Thanh
Temple, Van Xuong Cac, Tien Chau Pagoda and Cong Than Temple.
The
province is also considered one of the Mekong Delta’s human resource training
centres, with universities, colleges and vocational training schools which
pass thousands of graduates each year.
In
order to make land available for investors, Vinh Long has planned to set up
three industrial parks (IPs) at Binh Tan, Dong Binh and An Dinh, and 13
industrial clusters in districts and the city of
According
to Dang Quang Tan, vice head of Vinh Long IPs Authority, the province’s IPs
have attracted 33 projects worth VND3.2 trillion ($152.4 million) in domestic
investment and $121 million in foreign direct investment. The authority is
proposing that the provincial people’s committee approve in principle a $30
million textile-garment-dyeing project invested in by a South Korean group at
Hoa Phu 2 IP and $14 million tyre export recycling project at Binh Minh IP.
“We
target to fill Hoa Phu 2 and Binh Minh IPs by 2015,” said Tan.
In
order to reach the target, Vinh Long will encourage new investment through
existing investors, apply flexible land lease payments, simplify
administrative procedures and co-ordinate with other agencies to call for
investment, said Tan.
Pham
Thanh Khon, vice director of the local Department of Planning and Investment
said “In addition to our geographical location, land, plentiful materials and
skilled workforce, Vinh Long attaches special importance to providing a
favourable, safe and reliable investment environment for investors and always
highlights the role of businesses in provincial development. Vinh Long always
gives the best incentives for investors.”
Manufacturing-processing
attract most FDI capital
Processing
and manufacturing industries attracted as much as four fifths of
foreign-invested capital in the first 11 months of this year, accounting for
nearly 16.1 billion USD.
It is
noteworthy that many major corporations raised their investment in the
country, reflecting their growing confidence in the investment and business
environment in
The
RoK’s Samsung Group is a typical example, as apart from investing 5.7 billion
USD in Bac Ninh and Thai Nguyen provinces, it is working on a plan to build a
thermoelectricity plant in the central
Also
in recent months, the Nghi Son oil refinery, invested by Japanese, Kuwaiti
and Vietnamese investors, in the central province of Thanh Hoa saw an
additional 2.8 billion USD in investment.
According
to statistics released by the Ministry of Planning and Investment's Foreign
Investment Agency, a total of 20.8 billion USD in foreign direct investment
(FDI) was poured into Vietnam in the first 11 months of 2013, 54.2 percent
higher year-on-year.
Over
13 billion USD of the amount came from 1,175 newly licensed projects and the
remaining 7 billion USD was from additions to the existing 446 projects.
The
FDI flow has also reached 53 out of the total 54 provinces and cities in the
country. The northern midland province of Thai Nguyen took the lead with
3.357 billion USD, accounting for 16.1 percent of the total capital. Thanh
Hoa province and the northern port city of Hai Phong followed with 2.9
billion USD and 2.6 billion USD respectively.
Of 54
countries and territories investing in Vietnam , the largest investor
remained Japan with total capital of almost 5.7 billion USD, accounting for
27.3 percent of total invested capital in the country.
Singapore
and the Republic of Korea ranked second and third, with 4.2 billion USD and
4.1 billion USD respectively.
FDI
disbursement in the period was estimated at 10.55 billion USD, up 5.5 percent
from the same period last year.
Strengthening
governance of monetary policies
According
to experts, in Vietnam, the issues of credit flow circulation and the process
of handling bad debts should be continued and solved with different policies,
including monetary policy. Report by Vietnam Business Forum.
To
implement the socio-economic development plans for 2014 and 2015, approved by
the National Assembly in its ongoing 6th session, the State Bank of Vietnam
(SBV) has held a conference to collect comments, analysis and evaluation of
the economic experts from ministries, research institutes, and universities
on the economic status and the effectiveness of the policies in recent years,
accordingly forecasting the trends, to make recommendations and propose
solutions on the macroeconomic policies in general and monetary policy in
particular for 2014 and 2015.
In the
very last months of the 2013, although the production and business activities
still remain tough, the macroeconomics and the currency markets have exposed
many positive changes. The economic growth is higher in each quarter; it is
more likely to achieve the growth rate of 2013 from 5.2 percent to 5.4
percent. The inflation rate continues to be curbed at 6.5 percent, lower than
the 6.81 percent rate in 2012; the interest rates is sharply declining; the
exchange rates remain stable; the dollarisation of the economic is declining;
and the country's foreign exchange reserves are enhanced. However, the
experts said the issue of credit flow circulation and the process of handling
the bad debts should be undertaken by many other policies, along with the
monetary policy.
According
to the forecast of the macro-economic situation, many experts believe that
the economy in 2014 and 2015 will be improved, compared to 2013, because the
economic growth has signs of recovery and the export activities and foreign
direct investment will be enhanced after Vietnam signs the Trans-Pacific
Partnership agreement (TPP).
However,
others agree that inflation should not be ignored because risks may rise
during the process of implementing the measures to support economic growth
and increasing the budget deficit ceiling to 5.3 percent. The production and
business activities are still facing challenges and the capital absorption of
the economy remains weak; therefore, to achieve the economic growth targets
of 5.8 percent as required by the National Assembly, the Government should
come up with different solutions from many other ministries and authorities
to promote the credit flows in the economy.
Sumit
Dutta, CEO of the HSBC Vietnam, said that Vietnam has a sound economic
foundation due to the young population, high literacy rates, rapidly
declining poverty rate, high urbanisation rate and the least devaluation of
the country's currency in the region. This makes foreign investors have a
positive assessment of Vietnam's economy.
Therefore,
Sumit Dutta recommended that the establishment of the company to handle the
bad debts be a good solution in the current context, but the SBV should note
that the restructuring of the banking capital requires a higher awareness of
risk management issues.
According
to Cao Sy Kiem, president of the Small and Medium Enterprises Association,
the SBV has been back on track with the goals of a central bank of
stabilising the purchasing power of the currency and controlling the
inflation and this is a good signal for the economy.
He
further said the SBV has implemented monetary policies based on the market
principles to ensure transparency and create consensus of the business
community and investors.
However,
Kiem, a former governor of the SBV, said the tasks of the central bank will
be more difficult; for example, it is required for a series of comprehensive
solutions on the dollar and gold-related issues as well as the handling of
the bad debts as a central objective of the entire banking sector.
Sharing
the same views with Kiem, Le Xuan Nghia, director general of the Business
Development Institute, said that the SBV should pay particular attention to
handle bad debts and strengthen governance in accordance with the
international practices, as well as facilitate the supervision and
transparency of the information to enhance the confidence of the market in
the operating processes of the monetary policy and banking activities.
IFAD
grants 33 mln USD loan to Vietnamese farming
The
International Fund for Agricultural Development (IFAD) will provide 33
million USD in preferential loans for Vietnam’s sustainable agriculture
development, especially climate change response and credit for poor farmers.
An
agreement to this effect was signed by Vietnam’s Ambassador to Italy and
Permanent Representative to IFAD Nguyen Hoang Long and IFAD President Kanayo
F. Nwanze in Rome on November 27.
Speaking
at the event, Nwanze hailed Vietnam as a role model for its success in
reducing poverty by accelerating the development of its agriculture sector,
adding that the loan is to help Vietnamese farmers become more resilient to
crises, including climate change.
Ambassador
Long expressed hope that IFAD and Vietnam will strengthen their partnership
in the future, declaring that Vietnam will make the most of all the
international assistance that it receives.
In an
interview granted to the Vietnam News Agency, the ambassador revealed that
next month Vietnam will negotiate with IFAD on a 14 million USD loan for
climate change adaptation in the Mekong Delta provinces of Ben Tre and Tra
Vinh.
He
said IFAD highly values Vietnam’s efforts in effectively using loans over the
past 20 years, especially in poor and mountainous regions.
The
IFAD’s loan commitments to Vietnam manifest its trust in the country’s
poverty reduction cause, Long concluded.
The
United Nation’s IFAD groups 165 member countries, working primarily to
mobilise capital from advanced nations to help low-income earners in
developing countries with production and nutrition supply.
IFAD
has financed Vietnam since 1991 with low-interest loans of 40-50 years that
have been channelled to farmers, fishermen, disadvantaged women and ethnic
communities.-
Hai
Phong defines socio-economic development measures
Removing
difficulties for businesses and speeding up restructuring are just some of
the key measures that the northern port city of Hai Phong has decided to
promote in a bid to facilitate its socio-economic development in 2014.
During
a November 27 conference reviewing the task performance in 2013 and outlining
key directions for 2014, Secretary of the city’s Party Committee Nguyen Van
Thanh underscored measures to further social and cultural development, ensure
social welfare and increase local income.
The
city will also enhance administrative management efficiency and urban
development, while stepping up the programme of building new rural areas,
protecting the environment, strengthening science and technology renovation
and improving human resource quality, he pledged.
In
2014, Hai Phong will strive to record GDP growth of 8-9 percent compared to
2013. It targets a 6.4-7.4 percent rise in the industry and construction
sectors and 9.6-10.7 percent in the service sector.
The
city will work to handle 53 million tonnes of goods through its port, and to
earn a 16-17 percent increase in export turnover.
Meanwhile,
the city will exert efforts to lure about 5.2 million visitors and offer
training to 74 percent of local labours.
In
2013, Hai Phong is in the top three localities leading the country in
attracting foreign direct investment. It currently hosts 362 valid FDI
projects worth a total 8.27 billion USD.
The
city was also one of the first localities to carry out examinations to
recruit public servants in an open and transparent manner, including the
rector position for the Hai Phong University – the city’s largest academic
institute.-
Ho
Chi Minh City sees hope of economic recovery
Positive
changes are being recorded in Ho Chi Minh City’s economy, with good growth
rate in the trade and service sector and signs of recovery in industry
production.
The
assessment was given during a recent conference held by the Municipal
People’s Committee to discuss the socio-economic, cultural, defence and
security issues that faced the city in November and looking ahead to the last
month of the year.
Participants
at the event noted that total turnover of the city retail sector in November
is estimated to reach 54.9 trillion VND, up 4.3 percent over the previous
month and 12.2 percent year on year.
The
result has pushed the 11 month figure to 548.5 trillion VND (25.77 billion
USD), a rise of 12.3 percent over the same period last year.
Meanwhile,
the city posted a 5 percent month-on-month rise in its November industry
production index, recording a year-on-year increase of 6.1 percent for 11
months. Construction materials, food processing and metal production are
among sectors that saw strong growth in the month.
Recovery
has notably been seen among businesseses, with the number of
newly-established firms increasing by 7 percent over the same period last
year and the number of dissolved companies down 3.6 percent.
According
to Dao Thi Huong Lan, head of the municipal Department of Finance, budget
collection is another positive aspect that the city has seen. In November, Ho
Chi Minh City collected about 204.2 trillion VND (9.6 billion USD) for the
budget, fulfilling 86.2 percent of the estimate, up 8.6 percent year on year.
However,
attendees also pointed out socio-economic difficulties that the city faces,
including a 39 percent drop in registered capital of newly-founded
enterprises.
Meanwhile,
export turnover has seen 12.9 percent fall year-on-year. Except for earnings
from crude oil, total exports of the city in November are standing at 1.65
billion USD, down 3.1 percent over November and 7.7 percent over the same
period in 2012.
In the
first 11 months of this year, Ho Chi Minh City earned 24 billion USD from
exports, a decrease of 7.3 percent year on year.
The
municipal People’s Committee held that the reason behind the fall was a
decrease in crude oil export, which saw a 13 percent decline in volume and
3.8 percent in value.
Besides,
price drop of some export earners, especially agro-forestry and fisheries
products, also one of the negative factors, it said.
In
December, the key tasks that the city has defined to fulfil its 2013 target
include exerting more efforts in investment disbursement, speeding up
progress of state-invested projects, especially key ones.
Ha
Nam: One billion USD FDI target feasible
The
northern province of Ha Nam can reach its goal of one billion USD in FDI
attraction by late 2013, said Nguyen Van Oang, director of the provincial
Department of Planning and Investment.
For a
locality that only started to attract FDI in the last 6 or 7 years, the
expected one billion USD figure is considerable.
It is
feasible to obtain this thanks to favourable commitments the province has
given to foreign investors, Oang said.
The
province pledges to ensure the supply of electricity, human resources as well
as security for investment projects. Local leaders are always ready to talk
with businesses, joining hands with them to tackle emerging difficulties.
Ha Nam
has so far counted more than 130 valid FDI projects worth around 850 million
USD. This may exceed the set target if some RoK projects go as schedule.
Among
foreign investors operating in the province, Japan posts the highest number
with more than 40 projects and nearly 60 percent of the total investment
capital. It is followed by those from the Republic of Korea with 16.4
percent; the Netherlands with 7.7 percent; and Singapore with 4.3 percent.
Vietnam,
RoK trade ties see positive growth
Vietnam’s
export value to the Republic of Korea (RoK) over the first 10 months of 2013
reached 5.49 billion USD, up 25 percent year-on-year. The figure is expected
to increase to 7 billion USD by the end of the year, the Vietnam Economic Times
has reported.
A
fleet of 50 RoK firms came to Ho Chi Minh City on November 22 and will visit
Hanoi later this week in a bid to further boost the two-way trade between
Vietnam and the RoK.
According
to the Deputy Director of the Trade Promotion Agency under the Ministry of
Trade and Industry Bui Thi Thanh An, the RoK has become one of the largest
and most important trade partners of Vietnam.
Last
year, two-way trade between Vietnam and the RoK stood at 21.12 billion USD.
Of this amount, Vietnam raked in 5.58 billion USD from exports to the RoK
while its import value reached 15.54 billion USD.
Vietnam
mainly imports computers, electronic products, machines and devices, garments
and plastic materials, while shipping crude oil, coal, aquatic products, and
woodwork and garment-textile products to the RoK.
Garment
and textiles play a key role in bilateral trade ties, with total export value
of 1.35 billion USD over the first 10 months of 2013, an increase of 49
percent year-on-year.
In
comparison to 1992, two-way trade between Vietnam and RoK in 2012 rocketed 42
times, already surpassing the set target for 2019, according to RoK Consul
General in Ho Chi Minh City Oh Jae Hack.
This
is a significant growth, he said, adding that two-way trade in the same
period between RoK and ASEAN and China increased by only 7 fold and 30 fold
respectively.
The
positive figure not only demonstrates the important role and position of
Vietnam in the RoK’s import-export plans, but also shows the huge potential
for Vietnamese goods entering the RoK market.
Vietnam
and the RoK hope to lift two-way trade to around 70 billion USD by 2020.-
Banks
reluctant with fish processing
Many
banks have refused to lend money to fish processing companies in the Mekong
Delta regions due to their ineffective management.
For
many years, credit institutions in the Mekong Delta invested mostly in rice
and aqua-products, which make huge profits through exports. However, the
State Bank of Vietnam's Credit Department director, Nguyen Viet Manh, said
the loans for aqua-products have sharply decreased and bad debt are rising,
forcing banks to extend their debt payments.
In the
first nine months of the year, outstanding loans for rice processing
increased by 27.35% compared to the end of 2012, while the figure for fish
processing is only 3.77%.
Even
loans for Tra fish, one of the key products from the Mekong Delta, only
increased by 1.74%. Only shrimps are able to retain some of the attention
when its outstanding loans increased by 31.19%.
Banks
have recently shown reluctance to invest in the fish processing industry
because the market is in recession. In addition, several bankruptcy cases
filed by fish processing companies, such as Bianfisco, Phuong Nam and Song
Hau, have made banks think twice.
According
to a representative of BIDV, banks are able to give loans at low interest and
companies are in need of capital, but successful transactions are few due to
lack of trust. "If they would do a better job of managing their funds,
without making investments in the real estate, then their situations might
not be so bad." he said.
In
order to solve this problem, said the representative of BIDV, banks should
continue to give preferential loans to processing industry for export and
leave it to the SBV to handle the bad debt in the sector.
Moreover,
banks have complained about low value collateral and asked the SBV to create
a special mechanism for such cases. Meanwhile, the government must carry out
inspections to classify credible and profitable firms and lift the loan
limit, they commented.
Railway
operators to narrow operations because of big losses
Vietnam
Railways announced to stop operation on five rail lines in the northern and
central region from January 1, 2014 due to their loss-making business.
The
corporation said these trains have been making an average loss of up to VND90
billion (USD4.3 million) per year. They are among 180 pairs of trains being
operated by Vietnam Railways.
The
trains to be decommissioned operate in the the five routes of Vinh-Dong Hoi,
Dong Hoi-Hue, Gia Lam-Dong Dang, Yen Vien-Ha Long and Long Bien-Quan Trieu.
In
2012, the Yen Vien-Ha Long train route suffered from a loss of VND23.5 billion
(USD1.1 million), and the Vinh-Dong Hoi route saw losses of VND22.6 billion.
The
106-km Yen Vien-Ha Long route’s revenues reached less than VND4 million
(USD190.4) per day, accounting for only 5% of its daily expenses. Meanwhile,
the revenues from the Dong Hoi-Hue route were VND14 million per day, equal to
22-28% of their daily expenses.
An
official from Vietnam Railways said that these trains were all meant for
short transport, but have to cover high costs for the operational expenses.
At the same time they faced fierce competition from other means of transport.
These trains mainly served passengers who did not want to go by another form
of transportation for one reason or another. Many passengers only take the
trains to go for around 10km and then pay the fees of VND10,000 (USD0.5).
Earlier,
Vietnam Railways carried out measures to improve their operations, but the
situation has not become better.
Source:
VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
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Chủ Nhật, 1 tháng 12, 2013
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