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BUSINESS IN BRIEF 31/12
The
Hong Kong-based GaoLing Fund has bought a 24% share in Bien Hoa Vinacafe
(VCF) for VND877.5 billion.
The
shares were purchased from the Vietnam Coffee Corporation (Vinacafe), which
now possesses 12.85% of VCF.
GaoLing
is VCF’s second largest shareholder behind Masan Consumer‘s 53.2% ownership.
The
GaoLing Fund remains focused on Asia and particularly
VCF
share prices fell from more than VND200,000 each in the middle of this year
to their current VND137,000 per share.
Its
third quarter profit reached VND62.45 billion, up 28% from
last year’s same period.
Quang
Ngai revokes seven tardy projects
The
management board of the Dung Quat Economic Zone in central
Dung
said the projects, which had been registered for two to three years, were
mainly located in the Sai Gon-Dung Quat Industrial Zone. They involved
trading, property and hotel services, and had a total registered capital of
VND560 billion (US$26.67 million).
New
steel plant opens in Dong Nai Province
Tien
Len Steel Corporation inaugurated the VND400 billion (US$19.05 million) Bac
The
plant was jointly built by the corporation and the Bac Nam Joint Stock
Company, and covers an area of 3ha in the Tam Phuoc Industrial Zone. It will
manufacture some 300,000 tonnes of steel per year.
Tien
Len's major markets are the southern and central regions of the country, and
plans to export steel to ASEAN nations and throughout the world.
Security
industrial zone launched
The
Ministry of Public Security has inaugurated the first phase of the Security
Industrial Zone in Lai Yen commune, Hoai Duc district,
Addressing
the inaugural ceremony on December 28, Minister of Public Security Tran Dai
Quang praised efforts made by the General Department of Logistics and
Technology to complete the work on schedule.
He
emphasised the importance of the Security Industrial Zone, adding that it
will create a premise for developing the security industry in
He
urged required the logistics force to strictly implement the Party and
State’s guidelines and policies on developing the security industry, build a
specific roadmap and to work closely with other Central agencies and
localities to help the industry develop in a sustainable manner.
The
industrial zone covers 8.57 hectares.
Fertiliser firm
earns $26m in 2013 profits
Lam
Thao Fertilisers and Chemicals Joint Stock Co earned about VND5.17 trillion
(US$246.19 million) in revenues in 2013, up 3.65 per cent over 2012, company
general director Nguyen Duy Khuyen announced late last week.
Profits
reached VND555 billion ($26.43 million) in 2013, nearly 28 per cent higher
than the annual target.
Khuyen
said challenges facing the company included low market demand, falling
prices, poor weather and stiff competition from imported products. The
company will speed investments to improve product quality and expand into
foreign markets.
The
company was previously known as Super Phosphate Lam Thao Plant.
Exhibition
sells local goods at a discount
A
five-day exhibition at HCM City's Phu Tho Indoor Sports Stadium, the first
held under the auspices of the city's People's Committee, is offering
discounts on local products to stimulate sales demand during the holiday
season when prices typically rise.
The
event features booths of more than 250 domestic and foreign businesses,
showcasing textiles and garments, footwear, agriculture-forestry-fisheries
products, handicrafts, food, beverages, electronics, plastics and cosmetics.
The
exhibition was organised by the local Department of Industry and Trade in
collaboration with Thien Viet Trade Promotion and Advertising Co. It will end
on Wednesday.
PVN
signs contract for new power station
The
National Oil and Gas Group (PetroVietnam) and a consortium of three companies
signed a contract for the Long Phu 1 thermal power plant in
The
consortium, which consists of Power Machines, BTG Holding and PetroVietnam
Technical Services Corporation (PTSC), signed an engineering, procurement and
construction (EPC) contract with PetroVietnam.
About
70 percent of the capital for the EPC contract will be funded through loans,
while the remaining 30 percent will be funded by the project's investor,
PetroVietnam.
The
foreign contractors in the consortium, Power Machines and BTG Holding, will
be responsible for arranging capital and ensuring that the project is
completed and pilot operations begin.
PTSC,
along with other domestic contractors, will be responsible for the
construction and installation of machinery of the project.
Speaking
at the signing ceremony, Do Van Hau, PetroVietnam's general director, said
the group has been investing heavily in electricity generation as directed by
the Government.
Hau
said PetroVietnam aims to make up to 16 percent of the country's total power
output and become the second-largest generator of electricity in
The
US$1.39 billion project, which has a capacity of 1,200MW, will generate 7.8
billion kWh annually.
It is
one of five thermal power plants that will be planned and executed by the
group. It is expected to meet the demand for electricity in the Delta region
between 2015 and 2020.
Deputy
Prime Minister Hoang Trung Hai noted that the region is forecast to face a
deficit in electricity supply by 2017 because of increasing demand as a
result of economic growth. It is the main reason why the project has become a
top priority.
He
urged PetroVietnam and the consortium to accelerate the project's execution
to ensure the adequate supply of power to the region.
The
Long Phu 1 coal-fired power plant is one of three plants at the Long Phu
Power Plant Centre, which includes Long Phu 1 (2x600MW), Long Phu 2 (2x600MW)
and Long Phu 3 (2x1000MW), as well as other plants. Covering an area of
420.5ha, the centre is located in southern Soc Trang province's Long Phu
district.
The
Long Phu 1 power plant is designed to have two units, which will use a
supercritical technology pulverised coal boiler, along with other systems for
coal handling, limestone handling, ash handling and a water treatment system.
2013
rice exports earn US$2.95 billion
The
Ministry of Agriculture and Rural Development (MARD) reported that
approximately 396,000 tonnes of rice worth US$204 million was shipped abroad
in December.
The
average price of export rice in the first 11 months of 2013 was estimated at
U$441.2 /tonne, falling by 3.4% annually.
Construction
of tunnel on
Construction
of a tunnel through the Ca Pass on
The
project is 13.4 km long, including the 4km tunnel. It is scheduled to be
completed in late 2016 and put into service in the beginning of 2017, helping
shorten 8 kilometres in distance between the two provinces.
It is
built by the Lung Lo Construction Corporation under the Defence Ministry with
an investment of VND15.6 trillion (US$742.9 million). The project was
designed by Japanese consulting firm Nippon Koei.
The
Association of Vietnamese Investors in
Major
projects included the Sesan II hydro-electric power plant, a rubber planting
project in Rattanakiri, a fertiliser plant in Kandal, and a sugar plant in
Kratie.
AVIC
Chairman Tran Bac Ha said
Vietnamese
businesses have injected over U$1.2 billion worth of foreign direct
investment (FDI) into the Cambodian market, representing 40% of
More
than 50 Vietnamese-invested projects have officially entered operation,
mostly in agro-forestry, aviation, finance, banking, post and
telecommunications, industry, energy, transport, trade, electronics,
healthcare, and services.
Vietnamese
businesses in
They
also contribute to reinforcing border security and strengthening bilateral
diplomatic and economic ties.
Hai
Phong lures $2.6 billion FDI in 2013
The
city also granted licences for 27 new projects valued at $1.84 billion and
raised additional capital for 27 current projects.
The
People's Committee of central
The
VND800 billion project is to be funded by Phat Dat Real Estate Development
Company and managed by Marriot group.
The
33,000sq.m tourism complex will include three swimming pools, spa areas and
tennis, all built to international standards.
The
complex is expected to open by 2015.
Trung
Thuy to develop new properties
Trung
Thuy Group will develop another Lancaster building in Ha Noi worth VND600
billion, as well as an apartment project in HCM City valued at VND800 billion
next year.
Duong
Thanh Thuy, the group's chairwoman, said the second
Meanwhile,
the project in
The
firm is the owner of The Lancaster buildings in
The
southern
Of
which, US$720 million will come from export activities through its border
gates with
The
province has also defined its main products, including garments and textiles,
footwear, plastics, handicrafts, cashew, rubber latex and sugar.
To
reach the target, the southern province will continue enhancing the
development of border gate economic and industrial zones to attract more
investment.
At the
same time, it will help businesses, especially foreign-invested firms,
address their difficulties to help them operate more effectively in the
province.
Tay
Ninh will also intensify border trade promotion and facilitate goods
exchanges between businesses and people in border areas.
The
province’s 2013 export turnover is estimated at US$1.825 billion, a
year-on-year increase of 16 percent. Its exports through border gates with
EVN
to install more grids in the south
Electricity
of
According
to Nguyen Thanh Duy, director general of EVN SPC, the third power line of
500kV will connect central and southern
The
corporation will also use several power stations in the south, instead of
depending on power transfer from the northern and central regions.
Since
early 2014, EVN SPC will put into operation the thermal power stations of
Vinh Tan and Vung Ang 1 (with power of 600MW), and the hydro-power station of
Dak Ring (62.5 MW) and Nam Na 2 (22MW).
In
addition, the undersea cable connecting Ha Tien town of southern
The
EVN SPC plan for the south will help provide power to more than 6.2 million
EVN customers and will also reduce the number of power shortages.
Tien
Giang pledges investment incentives
The
Cuu Long (
Four
of them, all of which are key projects, include the drainage and waste water
treatment system in My Tho City, Tien Giang central square, Tan Phuoc
Industrial zone, and the provincial administrative area.
The
projects require a total investment of US$360.7 million.
The
list also includes a project to build apartments for specialists and workers
at the Tan Huong resettlement area and Tan Huong Trade Centre project. These
two projects need combined investment capital of $21.5 million.
Investment
is also required to develop Vam Lang fishing port, the Trung An residential
area and projects in tourism and infrastructure at industrial zones.
Speaking
at the conference held in
Tran
Kim Mai, deputy chairwoman of the Provincial People's Committee, said:
"Currently there are still some shortcomings related to investment
procedures, the province will work to improve this shortly."
Located
about 70km from
With
its advantageous geographic position, Tien Giang is a gateway between Mekong
Delta provinces and
The
province has the largest fruit cultivation area in the Mekong Delta region,
with many specialty fruits like Hoa Loc mango, Vinh Kim star apple, Cho Gao
dragon fruit, Tan Lap pineapple and Ngu Hiep durian. It also has a rich
aquatic supply.
The
province has several fruit and seafood processing facilities.
Thong
said the province would focus on developing product diversification and
"deeper food processing".
Industrial
products that have competitive advantages will be promoted, with priority
given to machinery for agricultural production and processing of farm
produce.
They
will also aim to strengthen co-operation with
Despite
many difficulties this year, the province still had an economic growth rate
of 9.5 per cent this year, much higher than the country's average growth
rate, Mai said.
She
said the province's export revenue reached more than $1 billion a year,
ranking third in the Mekong Delta region in export earnings.
The
conference also witnessed the debut of the Tien Giang Businessmen Club in
Nguyen
Kim Lan, its chairman, said the club aimed to create a closer connection
among Tien Giang businesspeople in trade and investment.
It
will act as a bridge between the provincial authority and businesses to
promote trade and support the poor living in the province or living and
studying in
Ministry
announces central region development plan
The
North Central and Central Coastal Region will be further developed to become
a convenient gateway for Vietnamese goods destined for
This
is part of a government’s master plan on socio-economic development in the
region until 2020, which was announced by the Ministry of Planning and Investment
and the Khanh Hoa provincial People’s Committee in Nha Trang city on December
27.
Under
the plan, priority will be given to investment in four areas in the region,
including the central key economic area that comprises the provinces of Thua
Thien-Hue, Quang
The
plan also focuses on upgrading central urban areas in the cities of
Economic
zones such as Chu Lai in Quang
Additionally,
more attention will be paid to improving roads, seaports, airports, irrigation
works, the power system and infrastructure in the region, while focus will be
placed on aquaculture, service and tourism development.
Da
Lat forum highlights investment opportunities
More
than one hundred representatives from economics institutes and Central
Highland provinces gathered at an economic forum in La Lat city, Lam Dong
province, on December 29.
The
event was part of activities for Da Lat Cultural and Tourism Week, providing
an excellent opportunity to introduce development potential in Lam Dong and
other localities in the
Participants
suggested boosting tourism development in the
They
stressed the need to adopt incentive policies aimed at attracting more
investors and concentrate on high-tech agricultural development, as well as
tourism marketing and cultural preservation.
Central
Highland-based Radio the Voice of Vietnam (VOV) radio station cooperated with
the Lam Dong provincial People’s Committee to launch a 45-minute live
programme on development potential of Da Lat-lam Dong tourism.
Delta
fruit farmers prepare for Lunar New Year
Farmers
in the Mekong Delta, the country's largest fruit cultivation area, are busy
preparing speciality fruits for the upcoming Lunar New Year (Tet) festival,
which begins on January 31.
Hoa
Loc mango, Nam Roi grapefruit and Lai Vung pink mandarin are among the most
in demand.
Nguyen
Van Nghia, who planted 5,000sq.m of Nam Roi grapefruit in Vinh Long
province's Binh Minh district, said he expected to harvest about four to five
tonnes of grapefruits a few days before Tet.
"The
price of Nam Roi grapefruit is expected to be higher or equal to the last
Tet," he said.
In the
previous
Many
grapefruit farmers earned large profits during the last Tet, Nghia said.
In Hau
Giang province, the Phu Tri A Agriculture Extension Club in Chau Thanh
district estimates that it will produce about 5,320 grapefruits shaped like a
wine gourd.
The
price of the grapefruit is expected to increase by 20 percent compared to the
previous Tet, according to Vo Trung Thanh, the club chairman.
The
gourd grapefruit sold for 300-700,000 VND during the previous Tet.
Pink
mandarins in Dong Thap province's Lai Vung district are yielding
22,000-24,000 VND a kilo, up 4,000-5,000 VND against the same period last
year.
With
its beautiful pink colour and sweetness, Lai Vung pink mandarins are
preferred by customers in
Pham
Van Lam in Lai Vung district's Long Hau commune said traders were now
offering higher prices for Lai Vung pink mandarins.
Inclement
weather has caused many Lai Vung pink mandarin flowers and young fruits to
fall off plants too early, he said, adding that output could drop this year.
Lai
Vung district has 1,120ha of pink mandarin, producing about 30,000-35,000
tonnes of fruit a year, according to the Lai Vung Agriculture and Rural
Development Bureau.
Huynh
Van Ton, deputy head of the bureau, said that farmers were pleased with the
high price of pink mandarin at the beginning of the harvest.
Farmers
said they could earn a profit of 200 million VND from one hectare of pink
mandarin.
However,
farmers in Tien Giang province predicted the supply of Hoa Loc mango would
not meet the Tet demand because of low output this year.
Nguyen
Thanh Nhon, chairman of the Hoa Loc Mango Co-operative, said his cooperative
would supply about 20,000 tonnes of Hoa Loc mango for this Tet.
The
price of Hoa Loc mango will be 75,000 VND a kilo, up about 20,000 VND
compared to previous years, he said.
Coffee
growers feel the grind of cold conditions
Coffee
growers in north-western provinces are struggling to cope with lower prices
and cold weather that has damaged hundreds of hectares of crops.
Quang
Van Ta, a coffee farmer from Chieng Den Commune in northern Son La Province,
has nearly three hectares of coffee plants. He said a kilo of coffee beans
now only fetched VND6,000, while the wages for workers hired to pick them
were around VND2,500 per kilo.
Costs
of pesticides and fertilizer have also gone up.
Dried
coffee beans are being sold to traders and businesses at VND25,000-30,000 per
kilo, a decrease of VND10,000 compared to last year.
Quang
Van Sam said his family and many households had to dry and process some of
the coffee beans and put them into storage to wait for prices to rise.
Otherwise, he said he would incur major losses.
Cold
weather below 10 degree Celsius is not making it any easier for coffee
farmers.
According
to statistics from the Son La Department of Agriculture and Rural Planning,
cold weather and frost had damaged at least 640 hectares of coffee
plantations in Mai Son, Thuan Chau and Son La during December.
Tong
Van On from Hua La Commune said his family used to make about VND100-150
million from growing coffee each year, but this year, his family suffered
significant losses.
Hoang
Van A, a farmer from the same commune with 20 years of experience, said many
coffee trees had been damaged by hoarfrost.
Hoang
Van Ton, head of the livestock and plant bureau under the Son La Department
of Agriculture and Rural Development, said the province was working to assess
the damage.
For
now, coffee growers who have lost at least 30 per cent of plants will be
compensated VND 1 million ($47) per hectare.
The
province has also approved a development plan to reassess coffee plantations
in the region from now up to 2020, and could include government subsidises
for coffee growers when prices are low.
According
to experts, a long-term solution was needed to promote sustainable farming
and build a brand name to promote Son La coffee.
Vietnamese
spend big on luxury goods
Despite
economic difficulties, Vietnamese people still spent billions of US dollars
this year buying luxury cars or mobile phones.
The
General Department of Customs estimated Vietnamese people paid out up to US$1
billion purchasing high-class mobile phones this year.
Statistics
show
The
country’s smart phones market grew by 156% this year, ranking it first in
Over
the past 11 months, more than 31,000 automobiles were imported into
Luxury
cars imported from the
Fisheries
sector sets sight on 2014 exports
The
fisheries sector plans to break into its potential markets such as the
Seafood
export earnings this year hit US$6.7 billion, a year-on-year increase of 10%,
according to the Ministry of Agriculture and Rural Development.
Vietnamese
seafood products are exported to 156 countries and territories, and the US,
EU and Japan are the biggest consumers, importing more than US$1 billion
worth of the products each in 2013.
These
three markets are expected to bring back US$2 billion in export value in
2014.
Tra
(Pangasius) fish fillets are one of
Truong
Dinh Hoe, General Secretary of the Vietnam Seafood Exporters and Producers
(VASEP), says seafood businesses need support from the State, especially
Vietnamese trade offices abroad, to overcome trade barriers, including
anti-dumping lawsuits.
Trade
promotion is one of the effective ways to penetrate the lucrative EU market.
VASEP recently signed a memorandum of understanding with
After
Pangasius, VASEP will boost trade promotion for other Vietnamese seafood
products in this market, says Hoe.
However,
VASEP
worked closely with relevant Japanese agencies which are expected to increase
the Ethoxyquin level by 20fold to 0.2ppm in April 2014, easing pressure on
shrimp businesses.
The
fisheries sector is seeking to develop newly exploited markets like
It
needs support from Vietnamese trade counsellors to directly contact Chinese
giants and penetrate deeper into the mainland rather than marketing products
in Guangzhou province at present.
VASEP
is working together with Vietnamese trade offices in these markets to help
seafood businesses get a firm foothold there.
Candy
brands face down foreign rivals
Vietnamese
confectionery brands are outselling foreign products in the run-up to Tet
(the Lunar New Year).
Big
brands like Duc Hanh, Thai Huong, and Linh Anh have improved quality, added
new products, and offer competitive prices.
Supply
is only 2% up from last year, and prices are 10-15% higher.
In
wholesale markets like Ben Thanh, An Dong, Tan Dinh, and Binh Tay,
traditional sugared lotus, coconut, squash, soursop, and sweet potato are
popular.
Most
are competitively priced at VND45,000-150,000 (US$2.14-7.14) per kilo.
Tran
Thi Tuyet, who owns a stall in Ben Thanh Market, said though confectionery
imported from Thailand, Malaysia, Switzerland, and the US are being bought by
affluent customers, Vietnamese brands are doing remarkably well.
Customers
like confectionery packed in colourful tin boxes by big brands like Kinh Do
and Bibica and sold at reasonable prices, Tuyet said.
The
HCM City Department of Health has ordered market and health officials to
closely monitor food hygiene and safety before Tet when the market will be
flooded with food and drinks.
Its
inspectors will focus on sugared fruits and other processed foods.
They
will look out for products without information about origin, fakes, smuggled
goods, and expired food products.
But
market officials said monitoring products in the market is plagued by several
challenges like a lack of preventive health staff.
There
are only 500 health officials to inspect more than 10,200 food production facilities
in the city.
Supply
chain key to textiles growth
The
problem has dogged the industry for nearly 20 years but remains unresolved
despite local firms' efforts to create the chain.
Three-fourths
of the country's 3,000 garment and textile companies are domestically owned,
but they account for a mere 25% of exports.
FDI
firms have invested in setting up their own supply chain to take advantage of
incentives, resulting in immense value addition for them and profitability.
Garment
and textile exports are growing by 18% annually, with the foreign sector
chalking up 30% growth and their local rivals, 8 – 10%.
The
gap in growth between local and foreign companies is widening their limited
funding has meant Vietnamese textile and garment firms work mainly as
subcontractors.
To
become actual producers, local firms must link the supply chain made up
mainly of cotton, fibre, textile, dyeing, and apparel.
The
textile and dyeing aspects are the weakest points yet and a big hurdle to
export efforts.
The
Vietnam Garment and Textile Corporation (Vinatex), a leading player, has been
investing strongly to develop the supply chain.
In the
past each of its factories produced many different items depending on
customers' demand, but could not maintain high quality.
"We
have decided each fibre factory will focus on one only product and ensure
quality," said Le Trung Hai, Deputy General Director of Vinatex.
It
plans to build a series of plants to make quality products so that it can
have its own supply chain and take on new markets.
Footwear
achieves export target
The
footwear industry is expected to reach a record export value of more than
US$8 billion this year, according to the Ministry of Industry and Trade.
Footwear
exports reached $7.9 billion as of the middle of December, a rise of nearly
15 per cent against the corresponding period last year, according to the
General Department of Customs.
Of the
total amount, the
Last year,
A
representative from the Viet Nam Leather and Footwear Association said local
tanneries had met only 20-30 per cent of material demand of local shoemakers.
To get
good quality materials, shoemakers have to import leather from
According
to the ministry,
Many
footwear importers are shifting their orders from
Experts
said the footwear industry would benefit when
But to
receive the full benefits, the industry must use local materials or imported
materials from TPP members to enjoy zero tariffs.
Experts
also urged domestic companies to make more efforts to improve quality and
productivity. As the global economy has yet to recover, key markets for
Vietnamese footwear have slumped, and, as a result, companies must plan
accordingly.
This
is vital because foreign-direct investment companies have contributed more
than 76 per cent of the industry's total export value.
Currently,
around 1,100 companies are involved in footwear production in the country,
employing 720,000 workers.
In
addition, there are thousands of individual producers and handicraft villages
that take part in export activities.
With
this capacity, the Vietnamese footwear industry is expected to meet
increasing export demand.
The
banking sector in
Nguyen
Van Binh said the city's target was feasible given that many programmes were
being implemented to strengthen cooperation between local banks and
enterprises.
"The
city's 14 per cent credit growth rate next year will make an important
contribution to increasing the entire banking sector's growth rate to between
12 and 14 per cent," Binh said.
To
realise the 14 per cent credit growth target, according to the municipal
People's Committee, the city will work with the State Bank to implement
monetary, credit and interest rate policies in ways that will ensure the
stability of financial markets and operations of local banks.
Under
these policies, several programmes will be carried out along with the city's
key projects. They include links between banks and enterprises, social
housing loans and investment stimulation.
The
city will also help small- and medium-sized enterprises as well as the
support industry to modernise and improve capacity for sustainable
development.
In
addition to its plans, city leaders have also proposed that the central bank
reduce the lending interest rate of loans to priority sectors.
This
would create conditions for eligible enterprises to further invest in their
competitive ability.
In
regard to social housing loans, the People's Committee suggested that the
central bank coordinate with ministries and branches to perfect a legal
framework for notary procedures and mortgage transactions. This would give
banks collateral for loans.
The
People's Committee has also asked the central bank to lower the interest rate
of loans used to buy houses and lengthen the duration of housing loans from
the current 10 years to 15-20 years for those who buy social housing.
In
reply to the proposal, Governor Binh said that the central bank would work
with agencies and make proposals to the Government to perfect credit policies
in ways that would be more open and convenient for the banking sector's
credit growth and business development.
"In
the coming time, credit institutions will be given more rights to decide
their lending activities," Binh said.
To
increase the disbursement of the VND30 trillion housing-stimulus programme,
the central bank will asked the Government to have a more open policy, thus
creating conditions for civil servants and people involved in armed forces to
get easier access to bank loans to buy houses.
In her
report on the local banking sector's operations in 2013, the People's
Committee vice chairwoman Nguyen Thi Hong said that total loans of banks in
HCM City were VND 952.55 trillion (US$45.14 billion), a rise of 9 per cent
compared to late last year.
Loans
at an interest rate below 9 per cent, given to five priority sectors,
accounted for 83 per cent, or VND 37.3 trillion, 64 per cent of which were
offered to small and medium-sized enterprises, Hong said.
She
also said that the local banking sector's bad debts stood at a high level and
suggested that the central bank develop effective measures to effectively
settle bad debts and make the sector's activities more transparent, safe and
effective.
"Bank
cross-ownership and group benefits need to be terminated soon," Hong
said.
Remittances
set for big surge ahead of Tet
The
volume of remittances from overseas Vietnamese to the country in the months
before the Tet (Lunar New Year) is expected to be 35 per cent higher than the
figure recorded in the other months of 2013, according to the Dong A
Remittance Co.
As the
economies of developed countries have recovered from crisis, revenues of
overseas Vietnamese in
According
to the Ministry of Labour, Invalids and Social Affairs, some 83,000 Vietnamese
were sent to other countries as guest workers in 2013, contributing
significantly to overseas Vietnamese's remittances this year.
The
Bank of Investment and Development of Viet Nam estimated a total remittance
of US$11 billion to the country this year, and the figure is expected to
increase by 10 per cent next year.
Remittances
through Sacombank Remittance Company's service was estimated at $1.7 billion,
said Pham Huu Phu, chairman of the Board of Sacombank.
Nguyen
Hoang Minh, deputy chief of the State Bank of
"These
figures are ‘realistic' as remittances to Viet Nam through HCM City - based
banks in the first 10 months of the year amounted to $3.8 billion," said
Minh.
He
added that most of the remittances were received in the last months of the
year.
Pham
Thanh Ha, deputy head of Vietcombank, said remittances transferred into
Vietnamese dong rose to 25 per cent (of total remittances) in 2013 from 20
per cent in 2012 and 10 per cent the previous year as the Vietnamese currency
has become stronger.
The
deputy director of Dong A Remittances Co, Trinh Hoai Nam, said due to the stability
of the exchange rate (of Vietnamese dong) this year, clients tended to
exchange the foreign currencies of their remittance into Vietnamese dong
right after receiving it at banks.
Housing
mess
The
stagnant property market has affected projects for commercial houses as well
as housing projects for families affected by urban development projects, as
many of the developers of resettlement housing have apartments unsold.
The
management board of the Thu Thiem Urban Area in District 2 has received only
2,878 apartments and 1,512 foundations for 12,500 houses planned for the
district's re-settlement project, only 1,700 to 1,800 of these apartments
were expected to be sold.
Many
houses under other resettlement projects in
These
include the North Rach Chiec Residential Area Project in District 9 which was
brought into use five years ago. So far, only a few apartments have been
occupied in this five-storey building designed to provide housing to over 100
resettled households, who had to move to make way for construction of the Bac
Rach Chiec property project.
According
to residents in this area, poor access to the facility and difficulty in
finding a job in the area are hindering households from resettling in this
housing facility.
The
72-apartment Him Lam-Kenh Te Tenement on Nguyen Huu Tho Street has only a few
tenants after seven years in operation, while the Phu My Tenement in District
7 has only 50 tenants for its 300 apartments.
Similarly,
the investor of the Vinh Loc B Tenement in Binh Chanh District has to pay
management and maintenance fees of billions of Vietnamese dong per month for
the 1,132 unsold apartments at this tenement.
Not
only investors but also authorities at district levels have to shoulder the
burden caused by these resettlement projects. The People's Committee of
District 12 paid VND60 billion ($2.7 million) to purchase resettlement
apartments that are not accepted by households affected by urban development
projects in the locality.
According
to Sai Gon Giai Phong (Liberated Sai Gon) newspaper, households affected by
urban development projects have to accept compensation for relocation of
their homes at market prices. Therefore, they must be authorised to choose
locations for their resettlement.
To
solve the problems, the HCM City Department of Construction has proposed that
1,769 apartments under five resettlement projects in Districts 7, Binh Tan
and Binh Chanh be converted into houses for low-income families.
The
proposal, if realised, would help city authorities recover for the state
budget thousands of billions of Vietnamese dong invested in these
resettlement projects that remain unsold.
Source:
VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
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Thứ Hai, 30 tháng 12, 2013
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