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BUSINESS IN BRIEF 29/12
Phones,
accessories climb to top exports at $21.5b
Figures
from the General Customs Office (GSO) showed that turnover of exported phones
and accessories posted a 69.2 per cent year-on-year rise.
These
exported products have seen the highest growth rate and turnover in the past
five years.
The
office said exports of phones and accessories this year surpassed the garment
and textile sector, topping the list of the country's export staples.
The
garment and textile export turnover was $17.9 billion this year, followed by
computers and spare parts, which were listed at $10.7 billion.
Exports
of phones and accessories accounted for one-fifth of the country's total
export turnovers, and one-half of the trade sector's growth, said the office.
Further,
export turnover of these items was $300-400 million monthly in previous
years, reaching $1.3 billion in July 2011.
Le Thi
Minh Thuy, head of GSO's Trade and Service Statistics Department, told
VnExpress online newspaper that the sharp increase in exports of phones and
accessories was attributed to the contribution of Samsung Electronics Viet
Nam, which made up 98 per cent of the country's exported mobile phones and
accessories last year.
Also,
these items contributed 20 per cent to the country's total export turnover,
Thuy added.
Agro-forestry
and fisheries hit $27.5b
The
ministry noted that seafood remained the country's top export industry,
earning $6.7 billion in 2013. The staple fetched nearly $620 million in
December alone.
The
In
2013, the forestry industry contributed $5.37 billion to the country's
exports by value, up 15.2 per cent from last year.
While
seafood and forestry exports surged in 2013, the export earnings of some
important farm products declined 11.9 per cent to $13.1 billion.
The
situation was due to global market fluctuations and unfavourable weather
conditions, the ministry said, adding some important agricultural products,
such as rice, coffee, tea and cassava, experienced a considerable drop in
both the value and volume of exports.
The
country shipped 1.32 million tonnes of coffee abroad for $2.75 billion, which
is down 23.6 per cent by volume and 25 per cent by value compared with last
year.
Rice
exports also suffered the same trend, declining 17.4 per cent by volume to
6.61 million tonnes and 19.7 per cent by value to $2.95 billion. By contrast,
export earnings by value from cashew nuts and pepper jumped considerably.
Cashew
nut exporting companies generated $1.63 billion from delivering 257,000
tonnes of output this year, up 15.8 per cent by volume and 9.7 per cent by
value.
VN-Chile
FTA set to boost
The
free trade agreement (FTA) between
The
FTA will allow many Vietnamese products, including footwear, fine arts and
handicrafts, fertiliser, furniture and household utensils, to enjoy zero
import tariffs in the Chilean market, said Vietnamese trade counsellor to
Chile Tran Dinh Van.
The
tax cut would also help sharpen the competitiveness of Vietnamese goods,
compared to other Asian countries of similar strength, Van said.
He
added that
Since
2010, Vietnamese exports to
However,
both countries' managerial agencies said that their trade performance hasn't
matched its potential. Director of the American Market Department under the
Ministry of Industry and Trade (MIT) Nguyen Duy Khien noted that Chilean
businesses prefer to do business with partners from countries having FTA's
with
In
order to take advantage of
Commission
certifies open-ended fund
The
State Securities Commission (SSC) has officially granted Vietcombank Fund
Management (VCBF) a certificate to register and establish the VCBF Tactical
Balanced Fund.
The
first trading date of the VCBF Tactical Balanced Fund will be January 2.
The
VCBF Tactical Balanced Fund is the first open-ended fund from VCBF which is a
joint venture of Vietcombank and Franklin Templeton Investments, a leading
global fund management company.
It is
also the first open-ended fund in
The
fund's benchmark return is the average of the VN-Index change and 10-year
government bond return.
"We
had a relatively short IPO period of just six weeks ending successfully on
November 29, and raised nearly VND61 billion (US$2.9 million) from a total of
290 investors," said Avinash Satwalekar, the management firm's CEO.
"We
believe now is the good time to invest in Viet Nam as equity valuations are
very reasonable when compared to the growth opportunities. As the Vietnamese
economy stabilises, we expect these growth opportunities to accelerate,"
he added.
Meanwhile,
fund management company Eastspring Investments Viet Nam, owned by life
insurer Prudential Viet Nam, began on December 24 selling five million units
for its open-ended Eastspring Viet Nam Navigator Fund. Buyers will pay the at
par price of VND10,000 ($0.47).
Thanh
Hoa top choice for Japanese funds
Of the
five largest Japanese businesses in
The
local advantages like strategic location, cheap human resource, and abundant
mineral resources are appreciated by the Japanese investors.
The
Japan Trade Promotion Organisation said Thanh Hoa should focus on
infrastructure, especially the expressway running from Thanh Hoa town to Nghi
Son and infrastructure at industrial parks for small- and medium-sized
enterprises.
Firms
owe millions in insurance premiums
Total
insurance debt owed by businesses has reached VND10.66 trillion ($506.30
million) this year, a rise of 22 per cent year-on-year, according to the Viet
Nam Social Insurance Agency.
Mai
Duc Thang of the agency said this figure included social insurance debt of
more than VND7.93 trillion ($376.67 million) and health insurance debt of
VND2.91 trillion ($138.32 million).
According
to Thang, the total insurance debt, last recorded as of November 30, is owed
by large corporations as well as businesses that have been dissolved or those
whose business licenses have been revoked.
The
Social Insurance Agency has sued more than 1,800 businesses that owe social
and health insurance totalling VND977 billion ($46.41 million). Of that
amount, the agency has reclaimed VND277 billion ($13.16 million).
Commercial
overseas offices urged to promote trade
Vietnamese
commercial counsellors abroad need to work more closely with organisations
and localities in
Ho
Quoc Dung, deputy chairman of central
Localities
also need the support of
Commercial
counsellors said they lacked information about local businesses.
Dao
Tran Nhan,
"We
only have information of businesses listed by the Ministry of Industry and
Trade," he said.
Municipal
and provincial departments of Industry and Trade should ask local trade
promotion centres to establish lists of reputable local businesses in each
sector, he said.
Y Dham
Enuol, deputy chairman of the Dak Lak Province People's Committee, said that
local departments of Industry and Trade and commercial counsellors abroad
should establish a formal connection so that information about foreign
markets and technical barriers would be readily available.
Nguyen
Thi Hong, deputy chairwoman of the HCM City People's Committee, said with the
increase in technical barriers,
Tran
Tuan Anh, deputy minister of Industry and Trade, said the ministry would take
into consideration the opinions of participants and develop better ways for
all parties to communicate.
The
country exported goods totally worth US$132 billion this year, up 15.4 per
cent against last year, exceeding the National Assembly's target of 6.6 per
cent, according to the Ministry of Industry and Trade.
VietJetAir
launches Vinh-Da Lat route
VietJetAir
has introduced its 16th route, connecting
On the
occasion, to attract visitors to the city, the airline also sponsored three
important cultural events: the launch of the 2014 National Tourism Year with
a focus on the
With
three flights per week, on Tuesdays, Thursdays and Saturdays, the new route
offers 1,080 seats per week and is expected to meet the travel demand.
Ministry
revamps investment planning
Starting
next year, public investment project plans will be formulated every two years
instead of every year as is currently done, Planning and Investment Minister
Bui Quang Vinh told Vietnam News Agency in a recent interview.
He
said the move is part of efforts to restructure the planning process for
public investment projects so that they become more efficient and less
wasteful.
"The
Government's decision has been welcomed as one that will increase
transparency and accountability in the use of public funds, while avoiding
corruption and wastage," Vinh said.
He
said the new measure builds on provisions of a prime ministerial resolution
issued in February 2011 that was a policy milestone, marking the nation's
switch from a focus on rapid development to a more suitable pace in the
context of the world economic downturn that had significantly impacted
The
resolution had eight major areas of focus including curbing inflation,
stabilising the macroeconomy, ensuring social security and achieving a
rational growth rate, Vinh said.
One of
the eight areas listed was investment, with the resolution tightening
monetary policy and strictly controlling public investment.
"After
three years of implementing the PM's resolution, our macroeconomy has
gradually been stabilised and inflation has been brought under control,"
Vinh said.
He
noted that in October 2011, the Government had issued fresh instructions on
strengthening management and use of State budget funds as well as Government
bonds in public investment.
"In
2013, ministries, sectors and localities nationwide have done their best to
continue implementing the instructions. While the problem of fragmented and
inefficient investment still remains, the situation is much better than it
was in the past."
Noting
that 2014 will be the first year
He
said the Government has already approved the first two-year (2014-15)
investment plan for all ministries, sectors and localities nation-wide.
He
said that in 2013, up to 96.5 per cent of capital investment allocated from
the central budget to localities has disbursed to implement the 2013-14 plan.
In 2014,
this percentage will be even higher, an indication the ministries, sectors
and localities have all realised the benefits of the PM's decision, he said.
"I
am hopeful that outstanding debts in capital construction will reduce quickly
in 2014, reflecting efficient management of public investment."
Vinh
said that as a general rule that applies not just in
"We
should open a new chapter on non-state economic sectors participating in
public investment, particularly the private sector."
Vinh
said his ministry was currently drafting a legal document to promote
public-private partnership in public investment.
He
said the new decree will try to synthesize provisions of implementation
Decree 108 on the Law on Investment as well as Decision 71 on piloting
Public-Private Partnership projects.
"In
the PPP Decree, we want the participation of both State-owned Enterprises
(SOEs) and foreign corporations. This is the most important aspect of the
document as we want to have more human and capital resources to invest.
"When
the PPP Decree comes into force, the State Budget will only provide
counterpart funds for projects.
"This
is very important decision in the strategy to mobilise more investment for
mid and long-term projects," Vinh emphasised.
Ben
Tre pledges optimum conditions for Russian firms
The
southern
Receiving
a Russian Duma delegation led by First Vice President of the Russian State
Duma Ivan Ivanovich Melnikov on December 26, Phong said the province has
strengths in agriculture and sea-based activities.
There
are seven local businesses exporting copra, activated carbon and tra fish
fillets to
The
Russian guests showed interests in Ben Tre’s coconut product production and
export.
During
the visit, Melnikov and his entourage visited a copra factory of the Ben Tre
Export Import Joint Stock Company, which shipped 700,000 USD worth of
products to
The
Russian delegation also visited a coconut plantation of Nguyen Huu Tin in Tam
Phuoc commune, Chau Thanh district.
Earlier
on December 25, the delegation paid a working visit to the southern
They
began their working visit to
Vietnam-South
Africa trade to hit 875 million USD
Two-way
trade between
Of the
sum, export revenue stands at 760 million USD and import value, 115 million
USD, respectively.
Over
the past two years, mobile phones have made significant contributions to the
country’s export turnover to
Meanwhile,
The
outcomes mirror the two Governments’ resolve and efforts to promote their
all-round cooperation, especially economic and trade ties.
According
to Vietnamese Commercial Counselor in South Africa Le Kinh Thang, the two
countries still boast a lot of potential for trade cooperation, suggesting
them pay more attention to business environment and commercial
competitiveness.
He
called on Vietnamese businesses to access the South African market in order
to explore the country’s demands, considering the organisation of trade fairs
as the most effective way to realise such efforts.
Newly-accredited
Chinese Consul General in Ho Chi Minh City Chai Wenrui has affirmed his
support for
The
Chinese diplomat made the affirmation at a December 26 reception given by
Secretary of the municipal Party Committee Le Thanh Hai.
The
guest also vowed to spare no effort to further expand the comprehensive
strategic cooperative partnership between the two nations.
The
municipal leader said he believes that Chai Wenrui will contribute greatly to
boosting the ties between
In
2013, the two countries saw positive developments in their relationship, with
their high-ranking leaders reaching common perceptions and important
agreements on deepening the comprehensive strategic cooperative partnership.
The
two sides have reached important perceptions to develop their cooperation in
a stable and healthy manner, he said, adding that they have agreed to set up
three working groups on sea, land and financial-monetary issues.
The
two sides have pledged to hasten the operations of the three groups to
increase the number of Chinese investment projects in
By
October, 2013, two-way trade between
Both
sides pledged to work together to reach 60 billion USD in two-way trade by
2015.-
Trade
ministry teams up with An Giang to promote trade
A
memorandum of understanding (MoU) on trade promotion was inked between the
Ministry of Industry and Trade (MoIT) and the People’s Committee of southern
An Giang province on December 26.
This
is part of efforts to help the province realise its target of earning 1
billion USD from export in 2014.
Under
the document, the MoIT will assist An Giang province in promoting trade in
the country through fairs and conferences.
Both
sides will work together to seek markets for local farm and aquatic products,
which are An Giang’s competitive commodities.
The
ministry will also provide An Giang’s enterprises with information on the
export market development and demand to help them fully tap their strengths
to speed up export.
Speaking
at the event, MoIT Deputy Minister Nguyen Cam Tu underlined the significance
of the MoU, expressing his belief that the ministry and An Giang province
will cooperate effectively in the future.
Construction
of north-south express railway re-proposed
Major
changes are expected for
There
were reportedly two reasons the Ministry of Transport (MoT) forwarded
Statement 13.669 on revisions to the railway development strategy to 2020
with a vision toward 2050 to the Prime Minister.
Firstly,
current railway transport capacity lags far behind the target set in the
railway development strategy, approved in a decision passed in November 2008
(Strategy 1686).
Accordingly,
railway transport makes up only 0.5 percent of the total passenger transport
market share and 1 percent of the freight transport market share.
“The
railway sector could hardly achieve the target of 13 percent passenger
transport market share and 14 percent freight transport market share by 2020
under current infrastructure,” said Vietnam Railway Corporation’s former
deputy general director Vuong Dinh Khanh.
Second,
most projects to upgrade and/or overhaul existing railways have lagged behind
set progress targets.
According
to the revisionary statement the new strategy upholds most of the points made
in Strategy 1686, only revising targets to meet practical conditions.
For
instance, by 2020 the railway sector will satisfy 1-2 percent of passenger
transport demand, 1-3 percent of freight transport demand, and for urban
areas in
With
respect to the north-south railway network plan from now to 2020, as well as
modernising the existing system the ministry has proposed building a 1,435mm
gauge dual track line that can run at speeds of up to 200km per hour.
Completing
the north-south railway network and scaling up train velocity to 350km per
hour is slated for completion by 2050. By that time, old railway lines will
be used mainly for freight.
Toward
the successful completion of the 1,435 gauge railway, consultants have
suggested prioritising a 36.750 trillion VND (1.75 billion USD) 50km test
line between Ngoc Hoi and Phu Ly by 2020, and thereafter to 2030 building two
new lines, the 234km section from Phu Ly to Vinh city and the 366km section
from Ho Chi Minh City to Nha Trang city for a total investment of 406.413
trillion VND (19.3 billion USD).
Ministry
statistics show that since Strategy 1686 went into force, a mere 8.070
trillion VND (384 million USD) was injected into improving railway
infrastructure, less than 1 percent of the total planned.
With
respect to urban railway development in
Of
Head
of the Vietnam Railway Administration Nguyen Huu Thang said poor performance
is due to impediments to investment proposals and land acquisition, as well
as capital shortage.-
Communications
sector, a driver of other industries
Deputy
Prime Minister Vu Duc Dam has called on the information and communications
sector to make strong breakthroughs to turn information technology into a
driver of industries, services and the national administrative system.
Speaking
at a conference to review the performance of the Ministry of Information and
Communications in 2013 and initiate its tasks for 2014 in
The
information and communications sector needs to press ahead with its
pioneering role in catching up with the era’s new trends and exploiting
technologies to help the country gather the new momentum, Dam said.
In
2013, the telecommunication sector is estimated to earn revenues of 9.9
billion USD. Its total phone subscribers hit 130 million, 93 percent of which
are mobile phones subscribers.
There
are 31 million Internet users and 5.17 broadband Internet subscribers.
Over
263,000 domains with Vietnamese names have been registered, marking an
average growth rate of 172 percent a year and keeping the country in the
number one position in
The
national end-to-end IPv6 network is being shaped step by step as set out.
Total
revenues of the information technology industry are estimated at more than 20
billion USD.
All
state offices have launched their web portals, providing over 100,000 online
public services.
An
Giang targets 1 billion USD in 2014 exports
The
Mekong Delta
According
to the provincial Department of Industry and Trade, the locality will focus
on boosting food processing for domestic and foreign needs, especially
products with competitiveness such as rice, seafood, frozen vegetables and
fruits.
It will
also strengthen trade promotion to raise the export turnovers of its staples
in promising markets, while maintaining traditional markets and enhancing the
management of goods quality, the department said.
In
2014, An Giang will remove difficulties for businesses, especially those
operating in manufacturing and processing rice, frozen shrimp and vegetable,
and apparels which are the province’s four key currency earners.
It
will ensure a favourable environment for both local and foreign businesses as
well as increase the shares of its products in the world market, particularly
in Asia, Europe,
In
2013, An Giang’s export turnover reached 960 million USD, up 12 percent
against the previous year and exceeding its set target by 6.6 percent.
Kien
Giang puts rice storage facilities into use
The
Mekong delta
The
facilities are part of the Ministry of Agriculture and Rural Development’s
plan to build storage facilities to store 4 million tones of paddy rice in
the
They
are located at Thanh Hung and Ngoc Chuc communes (Giong Rieng district), Tan
Hiep A, Tan Hiep A and Tan Thanh communes (Tan Hiep district), and Soc Son
town (Hon Dat), which house major rice fields.
Under
the ministry’s project, Kien Giang was tasked to build 18 storage facilities
with a combined capacity of 269,000 tonnes and it is working to complete the
construction of the remaining 12 facilities by 2015.
In the
Winter-Spring crop 2013-2014, the province planted 90,000 ha of high quality
rice in the districts of Hon Dat, Tan Hiep, Chau Thanh, Giong Rieng, Go Quao
and Rach Gia city and expects to harvest 7 tonnes per hectare in the areas
The
province also increased its VietGAP-standard large scale rice fields to 1,524
ha in this crop.
The
Mekong Delta has targeted an annual rice output of 24 million tonnes from
2020 to 2030 to remain as the country’s top rice producer.
According
to the Mekong Delta Rice Research Institute, the region increased its rice
output from 4.2 million tonnes in 1976 to 24.5 million tonnes in 2012.
Addressing
the event, Vice Chairwoman of the municipal People’s Committee Nguyen Thi
Hong said changes in the world market will continue challenging exports of
the country and localities in particular.
Given
this context, the official proposed overseas Vietnamese representative
offices step up their support and coordination with local authorities and
enterprises.
Sharing
Hong’s views, many delegates at the event called for the establishment of an
information network that provides businesses with market changes, as well as
international laws and policies while connecting domestic and foreign
enterprises, helping them ease risks in the process of international
integration.
Truong
Dinh Hoe, General Secretary of the Vietnam Association of Seafood Exporters
and Producers, suggested the overseas Vietnamese representative offices
increase trade promotion activities and act as a dialogue bridge with
authorities in host countries.
Deputy
Minister of Industry and Trade Tran Tuan Anh urged the overseas Vietnamese
representative offices to take the initiative in studying the market,
building market development strategies and extracting cooperation
opportunities in timely manner.
He
said the target of export growth at 10 percent and trade deficit at 6 percent
in 2014 is a huge challenge to the entire economy and the responsibility of
ministries, branches and authorities at all levels.
The
ministry has considered the enhancement of linkages between ministries and
branches both at home and abroad with local authorities as one of the most
important solutions to boost
Greater
Poor
infrastructure and human resources, worsened by cumbersome immigration
procedures, have limited tourism development in the Greater Mekong Subregion,
which includes
Caravan
tours between cultural and historic sites in the three countries have faced
challenges.
During
a recent "investigation trip" by officials, they discovered that
roads from the bordergate in Vietnam to Cambodia's Kratie extend 230km but
are not in good condition.
In
addition, many enterprises want to organise tours but have been unable to do
so because of immigration procedures.
"We
need strong links between the three nations to deal with immigration. In
addition, more investment for infrastructure, including roads, services and
rest stops, is needed," said Ho Tan Cuong, vice director of central
Quang Nam Province's Culture, Sports and Tourism Department, who took part in
the investigation trip with other officials.
He
suggested a tourism route that could begin or end at Angkor Wat in
"Tourists
could enjoy the cultural values of three countries via road and air,"
Cuong added. "Tourism on roads from
In
addition,
For
the first 10 months of the year, more than 700,000 Vietnamese visited
This
represented 21 percent of international tourists in Cambodia, an increase of
11.5 percent compared to the same period last year, and the highest
proportion of foreign tourists.
Poor
co-operation between authorities of the three countries has also hindered
tourism potential in the subregion.
"Tourism
development co-operation has been negotiated since 1994. Enterprises have
been asked to take part in programmes and more negotiations between
governments and the private sector were encouraged," said Tran Phu
Cuong, deputy head of the Tourism Authority's International Co-operation
Department.
At the
32nd annual meeting on tourism development among the three countries, held in
Kampot, Cambodia, early this month, the Asian Development Bank (ADB)
announced a support loan of 100 million USD for tourism infrastructure
projects in the subregion.
The funds
will be used for seaport construction, waste water treatment for tourism
areas, green tours on sea, and tourism development with the participation of
local communities.
"We
would like to connect all authorities and policymakers in these three countries
in order to further investment opportunities," Phuong Huu Viet, chairman
of the Vietnam-Laos-Cambodia Association for Economic Co-operation
Development, said.-
Ministries
join hands to remove troubles for investors
The
troubles faced by investors relating to land usage, construction and
environment when rolling out projects can be removed as three ministries are
joining forces in drafting a circular to address such concerns.
The
three ministries of planning-investment, construction and natural resources-environment
have sit back together to map out standard procedures on investment, land
use, construction and environment to reduce troubles for investors.
Investors
have many troubles in executing investment schemes as they have to carry out
numerous procedures on investment, land, construction and environment at the
same time, especially for projects outside industrial parks, said Phan Duc
Hieu of the Central Institute for Economic Management (CIEM) under the
planning and investment ministry.
In
particular, to deploy a project, the investor will have to perform about 18
different administrative procedures relating to land use, construction and
environment.
Investors
usually encounter time-consuming and troublesome procedures, noted Hieu, who
is vice head of the Research Department on Business Environment and
Competitiveness of CIEM. In many cases, both investors and government
authorities do not know the process of necessary procedures, he stressed.
Surveys
among enterprises on the provincial business environment released by the
Vietnam Chamber of Commerce and Industry annually indicate that
administrative procedures on land, construction and natural resources and
environment are seen as the biggest headache for local enterprises.
Numerous
researches and surveys in many localities demonstrate that investment, land,
construction and environment procedures needed for the implementation of an
investment scheme take a total of around 300 working days, Hieu stated. He
ascribed the lamentable situation to the numerous flaws in relevant legal
regulations and the inadequate capacity of agencies in handling
administrative procedures for businesses.
To
remedy the situation, the joint circular is aimed at giving clear guidelines
on handling administrative procedures on investment, land, construction and
environment to save on expenses and time for investors, Hieu explained.
Under
the joint circular, the standard process of administrative procedures for a
project is set up in a systematic way and subject to the actual situation
ensuring the State management efficiency.
The
circular includes clear contents on the procedures for seeking investment
approval, and details for the coordination among State agencies in dealing
with procedures. In addition, it clarifies the responsibility of related
agencies in handling such administrative procedures.
Nearly
35,000 autos imported in 2013
December
has seen an additional 3,000 complete build-up vehicles imported into the
country, taking the total number of imported autos this year to 34,500 units
worth US$709 million, said the General Statistics Office (GSO).
GSO
said that the import of CBU units in 2013 shows an increase of 25.9% in
volume and 15.2% in value.
The
rising number of imported vehicles shows the restored confidence of consumers,
but this year’s imported volume is still lower than that in 2011, when as
many as 54,600 autos were imported worth over US$1 billion. The 2010 figures
were not much lower, meaning the consumption a few years back was much
stronger than now.
Last
year saw the lowest consumer confidence in the past five years, and the slump
in imported autos in 2012 was attributed to high registration fees at home
and tentative schemes by the Transport Ministry to slap various additional
fees on car owners.
The
rebound in 2013 is due to Hanoi City slashing the registration fee to 12%
from the previous 20%, while HCMC also has plans to cut the fee by two
percentage points to 10% effective from January 1. In addition, the transport
ministry has promised to drops its plan to impose additional fees on car
owners.
Observers
expect the auto market growth momentum will continue into 2014 owing to lower
fees. In addition, autos imported from ASEAN countries will be subject to an
import tariff of 40% from January compared to the current 50%, which will be
a strong boost for imported autos.
M&A activity
in property sector turns more bustling
The
local property market has lately seen more bustling merger and acquisition
(M&A) activity as many exhausted project owners now have no other choice
but to transfer their projects or partner with other firms.
Hung
Thinh Corp. has recently announced its cooperation with Dai Thanh Company to
continue constructing the Hiep Tan apartment project in HCMC’s Tan Phu
District. The new developers have renamed the scheme as the 8X Dam Sen, which
will have around 600 condos measuring 45-85 square meters a unit with the
selling price from VND600 million each targeting young customers.
Besides,
Hung Thinh Corp. has acquired the Nguyen Quyen housing project in Binh Tan
District to build the condo project also named 8X. Making cooperation to
continue investment has been carried out successfully by the company over the
past time.
Nguyen
Dinh Trung, general director of Hung Thinh Corp., informed that his company
would continue acquiring projects with good locations and join forces with
developers facing financial constraints to develop the low-cost homes 8X in
the near future.
Similarly,
Novaland besides developing the Sunrise City in District 7 also has plans to
expand investment through acquiring projects at prime locations in HCMC. The
enterprise has just unveiled the Lexington An Phu project in District 2 after
purchasing it from a local developer.
In
particular, a source told the Daily that Novaland is going to purchase some
other projects in District 4 to develop the high-class housing segment.
Stephen
Wyatt, general director of Jones Lang LaSalle, noticed that current difficulties
in the local market have forced prices of realty projects down to more
reasonable levels. He expects the M&A trend will continue rising in 2014
when lots of projects are still short of capital for deployment and have to
seek partners for transfer.
Minister
of Construction Trinh Dinh Dung said on the Government website chinhphu.vn
that the local property market was warming up but there still should be
stronger measures to remove the market’s troubles next year. Developers will
have to continue restructuring their housing schemes to offer products
suitable with local demands, he added.
PV
Gas nets VND12 trillion in profits
The
country’s biggest liquefied petroleum gas (LPG) trader PV Gas this year has
pocketed nearly VND12 trillion in after-tax profits this year, a rise of 53%
over its annual target. Its pre-tax profit has also risen 53% to nearly VND15
trillion, or roughly US$740 million.
The
surging profit is attributed to higher revenue this year, totaling VND65
trillion, or 18% above the target. PV Gas said in a press statement its
revenue accounts for 10% of the parent firm PetroVietnam.
The
company, which is a distributor of gas to other traders in the country and
holds a market share of some 70%, has paid taxes totaling VND5.2 trillion
this year, also 47% higher than expected.
Banks
still thirsty for G-bonds
The
State Treasury and Vietnam Development Bank (VDB) have fulfilled this year’s
targets of mobilizing funds via Government bonds but local banks are still
picking up such bonds these days.
As the
G-bond issuers have already closed bond supply schemes this week, many banks
are trying to purchase modest G-bond volumes on offer.
According
to the Hanoi Stock Exchange, the Vietnam Bank for Social Policies offered
VND1 trillion worth of bonds on December 23, including VND300 billion worth
of two-year bonds, VND400 billion of three-year bonds and VND300 billion of
five-year bonds.
Banks
purchased VND250 billion worth of two-year bonds with the winning coupon of
8.19% per annum, or 0.05 percentage point lower than at the previous session
on December 16.
The
bank has mobilized nearly VND7.4 trillion worth of bonds through auctions
since early this year.
Last
week, the lender successfully issued VND400 billion worth of bonds while VDB
sold out VND98 billion worth of five-year bonds and the State Treasury raised
VND3 trillion worth of bonds.
Since
early this year, the State Treasury has successfully mobilized over VND138
trillion compared to the whole-year plan of nearly VND137 trillion. VDB has
raised VND40 trillion, meeting 100% of this year’s target.
A
research group from the Bank for Investment and Development of Vietnam said
that primary G-bond auctions have been bustling recently. Banks have a
stronger appetite for five-year bonds instead of the three-year term like
before, suggesting that investors’ confidence has strongly improved.
G-bond
yields have declined to 7.48% and 8.5% for three-year and five-year terms
respectively.
Strong
liquidity at banks, low inflation and macroeconomic stability forecast for 2014
have spurred up demands for G-bonds, the group said.
Banks
given strong liquidity have chosen G-bonds as an attractive investment
channel although the bond yield has dropped back sharply.
Despite
the year is drawing to a close when the cash demand normally runs high,
liquidity at banks is expected to stay strong as over VND50 trillion worth of
G-bonds, treasury bills and government-backed bonds will fall due in January,
2014. Meanwhile, the demand for credits remains weak.
Last
week, the central bank net withdrew around VND4.5 trillion out of the banking
system.
Source:
VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
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Thứ Bảy, 28 tháng 12, 2013
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