|
BUSINESS IN BRIEF 15/1
The
sixth negotiating session of EU-Vietnam Free Trade Agreement (EVFTA) opened
in
The
subject matter of the negotiations include trade of goods and services,
investment, customs cooperation, the rule of origin, SPS, TBT, competition,
sustainable development, institution and legislation.
Addressing
the opening session, heads of the Vietnamese and EU delegations emphasized
the goal to finalize the negotiations soon and expressed their determination
to fulfill the objective.
They
asked experts to speed up the progress of the negotiations and to conclude
technical negotiations of some contents in which both sides do not have
differing views. For other contents, groups of experts should continue
negotiations to narrow the gap between the parties.
In the
coming days, delegation heads will also debate viewpoints and orientations
for important areas to accelerate the negotiation and devise a roadmap for
completing the EVFTA negotiation.
The
negotiating session will last until January 17.
Doosan
Vina makes first international shipment in 2014
Doosan
Vina’s HRSG Business Unit on January 13 made its first international shipment
of the new year to a company in
The
shipment, to Intergent thermal power plant in
The
shipment was made pursuant to a cooperation agreement with Intergent thermal
power plant and set sail from Doosan Vina’s port in Dung Quat Economic Zone
to
Under
the agreement, the HRSG Business Unit completed and exported nearly 6,000 Fin
Tubes, 200 Headers, 80 Harps, 10 sets of Module and 70 tonnes of Links.
Since
the HRSG Business Unit was placed into operation in 2009, it has exported 10
HRSG boilers to the world market and affirmed its “Made in
Vinamilk
to construct US$23 million facility in
This
was announced on January 13 at the fourth Vietnam-Cambodia Investment
Cooperation Conference in
Vinamilk
will cooperate with
Vinamilk
will provide equity funding for 51% of the project whilst the remaining 49%
will come from the Cambodian partner.
The
plant is designed to process an annual capacity of more than 19 million
litres of fresh milk, 64 million cups of yogurt, and 80 million tins of
condensed milk with estimated revenue of US$35 million in 2015.
Signatories
to the protocol were
The
additional protocol also updates the Organization for Economic Cooperation
and Development (OECD) 2004 version sections pertaining to exchange of
information.
The
article asked the signed parties to conduct an exchange of information in
situations that are not limited to solely tax issues.
After
the signing, both sides should approve the protocol and keep each other
informed so that it can be given effect.
Vietnamese
exports eye opportunities in Bangladesh
The
Ministry of Industry and Trade’s (MoIT) Africa, West Asia, and South Asia
Market Department considers Bangladesh a market rich in potential, awaiting
further investigations to fully tap the opportunities presented by its 62
million consumers.
An
estimated 89.5% of Bangladeshi citizens identify as Muslim. Increasing
exports will require Vietnamese businesses to familiarise themselves with the
unique demands of Islamic consumers.
Agriculture
employs more than 45% of the Bangladeshi workforce. The country’s main
exports include garments and textiles, farm produce, seafood, leather, and
jute products.some
The
Joint Committee for Economic, Cultural, Scientific, and Technological
Cooperation conducted its first
Both
nations have signed 16 agreements and protocols governing diplomatic,
economic, trade, and investment cooperation.
The
economic and trade relationships linking
Bilateral
import-export increased six-fold from US$65 million in 2008 to US$390 million
in 2012.
Statistics
from the General Department of Vietnam Customs cited earlier speak to the
impressive growth of
Its
best performing export commodities were fibre (US$33.6 million), garments and
textiles (US$16.9 million), and machinery, equipment, and spare parts (US$8.7
million).
Some
of
Despite
their similar export production structures, the Africa, West Asia, and South
Asian Market Department believes
Vietnamese
businesses have faced tough competition from their Bangladeshi counterparts
thanks largely to preferential European Union policies.
But
Vietnamese businesses can take advantage of these mechanisms, seizing
investment and production opportunities in
Vietnamese
enterprises should also investigate potentially lucrative openings in
Bangladeshi agriculture, mechanical engineering, and industry.
Mekong
Delta localities will strive to record a GDP growth rate of 9-10 percent in
2014.
According
to Nguyen Phong Quang, Deputy Head of the Steering Committee for the
Southwestern Region, the localities target at least US$11 billion in exports
and more than VND38 trillion (US$1.786 billion) in tax revenues this year.
The
region is expected to raise per capita income to VND37 million (US$1,739) per
year, reduce its poverty rate to six percent and create more than 371,000
jobs, said Quang.
To
reach the goal, the committee will foster coordination with ministries,
sectors and localities to realise the Politburo’s Conclusion No. 28 on
directions, tasks and solutions for socio-economic development and ensuring
national security and defence to 2020, he said.
The
committee will focus on removing difficulties and obstacles faced by
enterprises, enabling them to strengthen exports, fuelling economic growth
and increasing budget contributions, Quang said.
He
added that comprehensive measures and policies will also be applied to create
jobs and develop the labour market.
The
committee will enhance the State’s role in supervising and regulating market
supply and demand, gradually restructuring human resources to meet the reform
needs of businesses, sectors, the region and localities, especially in
agriculture.
More
efforts will be made to strengthen management of State investment and outline
solutions to settle debts in capital construction, making appropriate capital
allocation.
Quang
said poverty reduction, the building of new-style rural areas and
environmental protection will be prioritised. Providing universal access to
healthcare, education and training, culture and sports will be stepped up,
while national security and defence will be strengthened.
In
addition, the region will speed up major projects to submit to the Party
Politburo and Government, including those on building an administrative unit
and special economic zone in Kien Giang province’s island district of Phu
Quoc and fostering regional connectivity in agricultural production and
trade, the official said.
The
region will also continue hosting the annual Mekong Delta Economic
Cooperation Forum, scheduled for this year in Soc Trang.
Last
year, despite negative impacts from the common economic situation, the Mekong
Delta region still saw 9.06 percent in economic growth. The average annual
per capita income increased by VND2.3 million year on year to reach VND34.6
million, while total investment hit VND215 trillion, up 11 percent over the
previous year.
The
proportion of poor households was reduced by 2 percent over 2012 to 7.24
percent. Meanwhile, national security and defence, social welfare as well as
ethnic and religious policies have been ensured.
The
Mekong Delta region comprises of 12 provinces and one centrally-run city with
a total area of 40,000 square kilometres and a population of 18 million. It
is the largest granary and the major aquaculture development region of the
country.
The
fourth Vietnam-Cambodia Investment Cooperation Conference aims to discuss
solutions to further promote future trade and investment cooperation.
Prime
Minister Nguyen Tan Dung and his Cambodian counterpart Hun Sen co-hosted the
event in
Tran
Bac Ha, President of the Association of Vietnamese Investors in
The
country ranked fifth among foreign investors in
Vietnamese
projects were focused on key areas such as agriculture-forestry-fishery,
energy, finance, banking, insurance, telecommunication and aviation which
gave leverage to
Two-way
trade between
Meanwhile,
the number of Vietnamese visitors to
Vietnamese
businesses in
In
total US$35 million has been spent on social welfare programmes over recent
years.
However,
businesses still find it difficult to promote trade and investment in
In his
speech, PM Nguyen Tan Dung praised the efforts made by both nations in
implementing cooperative agreements and making new proposals on cooperation
programmes, particularly the signing of a protocol revising the investment
encouragement and protection to facilitate investment.
PM
Dung delivered a speech at the event.
Dung
said he hopes that the Cambodian Government will focus greater attention to
Vietnamese businesses’ investment by alleviating difficulties and hindrances
to accelerate the progress of licensed projects.
He
also affirmed
The
Vietnamese Government will do its utmost to work with its Cambodian
counterpart to further strengthen relations and comprehensive cooperation
between Vietnam and Cambodia, positively contributing to peace, stability,
cooperation and development in the region and wider world, Dung stressed.
Cambodian
PM Hun Sen briefed his host on
Hun
Sen suggested Vietnamese businesses intensify investment in food and farm
produce processing in his country and offer mutual support and hopes that the
Vietnamese Government will continue to support his government by boosting
investment cooperation.
The
two PMs witnessed the granting of an investment license to Vietnam Dairy
Products Joint-Stock Company (Vinamilk) on a dairy processing plant
construction capitalized at US$23 million in Cambodia and the signing of an
agreement between the Bank for Investment and Development of Vietnam (BIDV)
and the Cambodian Ministry of Education, Youth and Sports on 50 BIDV
scholarships for Cambodian students in Vietnam.
She
added that in 2014,
Hong
said that the city should strengthen the role of state agencies in devising
strategies to promote the campaign, such as demand stimulation programs and
trade promotion activities to promote trade and direct communication and
meetings and to improve the competitive edge of Vietnamese goods in both
local and international markets.
Ho Thi
Kim Thoa, Deputy Minister of Industry and Trade said that over the years, the
campaign’s successful contributions have helped increase the number of
Vietnamese goods consumers from 38% to 71%. In particular more than 40% of
consumers have encouraged their relatives to use Vietnamese goods.
Thoa
added that the campaign has also urged businesses to improve product design,
quality and their competitive capacity.
At a
campaign reviewing conference in
Senior
officials from
The
signatories to the MoU were
The
MoU was introduced in the wake of an agreement signed between the leaders of
both nations in September 2013.
In a
press release, the RoK’s Ministry of Agriculture and Forestry reported that
both ministries agreed to promote agricultural cooperation including setting
up a joint committee to increase the exchange of information and human
resources development along with efforts to improve the food safety of each
nation.
The
Ministry said that the agreement has opened up a strategic partnership
between the two nations and promotes additional agricultural investment.
Lee
Dong-phil said that his nation will share its experience and provide
The
ministers’ also discussed other relevant issues including the export of the
Korean pork to
US$50
million steel factory inaugurated
Hang
Nguyen Minerals Joint Venture officially opened the first phase of the US$50
million Tuyen Quang Iron and Steel Factory in the
The
factory includes an advanced production line with modern, synchronized and
automated equipment.
Construction
work started on the factory in December 2009 on an area of 20 hectares in the
Long Binh An industrial park, with a design capacity of 200, 000 tonnes of
iron per year in the first phase.
When
fully operational, the factory is expected to contribute over VND1,500
billion to the province’s industrial production value and over VND100 billion
to the State budget, as well as generate nearly 700 local jobs.
To
help the project operate effectively, the province provided the factory with
two locations of mines named Cay Nhan and Cay Vau in districts of Yen Son and
Ham Yen with an ore reserve of over 1.5 million tonnes.
Pham
Minh Huan, Vice Chairman of the province’s People’s Committee said that since
the project has been implemented, Tuyen Quang has always created the most
favourable conditions for investors in site clearance, material area
planning and devised proper policies to ensure the factory’s long-term effective
operation.
New
IPO listings to increase market supply this year
The
Viet Nam National Textile and Garment Group (Vinatex) is finally expected to
launch an IPO in the first quarter of this year, after failing to do so
several times in the past, according to the Dau Tu Chung Khoan (Securities
Investment) newspaper.
Viet
Nam Motors Industry Corporation (Vinamotor) has also been urged to privatise
in 2014, and, therefore, it is also likely to launch an IPO.
National
carrier Vietnam Airlines and the Bank for Investment and Development of Viet
Nam (BIDV) are also preparing their respective IPOs.
A
representative from the Corporate Finance Department said the restructuring
of State-owned enterprises, including the privatisation efforts, would lead
to an increase in the supply of high-quality shares in the market.
According
to economic expert Vu Dinh Anh, the supply of shares in the market will be
plentiful this year, in part due to Decree 108/2013/ND-CP which came into
effect on November 11, 2013.
The
decree stipulates that joint stock companies must be listed on the stock
exchange within one year after they start selling shares to the public.
Vice
director of HCM City Stock Exchange (HOSE) Tran Thi Anh Dao told Dau Tu Chung
Khoan that the exchange estimates the total volume of listed shares to rise
significantly in 2014 from the previous year.
According
to the Ha Noi Exchange, the equity market is expected to thrive this year,
which should attract more companies to list on the stock exchange. The
exchange said up to 15 companies could list their shares this year if the
equity market showed positive developments.
Trade
sector told to facilitate business, production
The
trade sector needs to strengthen State management and create a more conducive
climate for business and production, PM Nguyen Tan Dung has said.
At a
review meeting in
He
particularly acknowledged the sector’s solutions for increasing trade
promotions at home and abroad, equitising its businesses for higher
operational efficiency, and balancing trade.
In
2013
Outlining
tasks for 2014, he asked the sector to formulate policies on trademark and
support industry development, enhance craft associations’ role in assisting
businesses in difficulty, and increase the ratio of high technology and local
contents in products.
The PM
reminded the Ministry of Industry and Trade (MoIT) to realise domestic market
development and overseas market expansion solutions, ensure a sufficient
supply of essential commodities, and tighten market control to prevent trade
frauds and cross-border smuggling.
He
encouraged the MoIT to go ahead with its market mechanism for electricity,
coal and petrol, taking into account support policies for vulnerable groups
in society such as social policy beneficiaries and the poor.
The
trade sector needs to better perform its role in free trade agreements (FTAs)
negotiations, especially the Trans-Pacific Partnership (TPP) agreement and
the Vietnam-EU FTA, the government leader said.
Despite
economic difficulties in 2013, industrial production bottomed out, rising
5.9% or 0.1% higher than 2012’s figure.
The
inventory index fell on a monthly basis, from 21.5% in January to 10.2% in
December. Total export earnings rose 15.4% to US$132.17 billion, exceeding
the target set by the National Assembly.
In
2014 the sector will continue creating a favourable business environment in
line with the country’s socialist-oriented market economy and international
norm.
Cement
consumption to hit 63 million tonnes
The
Construction Ministry predicts that
Of the
figure, domestic consumption is likely to hit 48.5-49 million tonnes, while
the remaining 13.5-14 million tonnes will be exported.
The
Construction Ministry has announced its goals to conduct improved surveys and
provide quality forecasts to enhance
It
also aims to closely monitor the implementation of cement projects in the
2012- 2015 period and work with the Vietnam Cement Association to increase
its operational efficiency.
In
2013, local cement plants produced 70 million tonnes, and about 61 million
tonnes were consumed, exceeding the yearly set target and rising 13.9% year
on year.
Approximately
47 million tonnes was sold in the domestic market, and around 14 million
tonnes were exported.
Cassava
exports slide back in 2013
Export
of cassava and cassava products plunged by 18.2 per cent to US$1.1 billion
last year, according to the General Department of Customs.
Volumes
were down almost 30 per cent to 3.1 million tonnes.
In
recent years cassava has become one of the products with high export value,
according to the Ministry of Agriculture and Rural Development.
The
export of cassava and cassava products was worth $952 million in 2011, a
whopping 70 per cent rise from 2010, and it went up by another 41 per cent in
2012.
So
much so cassava and cassava products were the seventh largest export staple
in 2013.
Around
half of it is consumed domestically.
In the
2001-11 period, the area under cassava increased by an average of 6 per cent
a year.
Insurance
industry to maintain growth
After
failing to grow by double-digits in 2013, the insurance market is expected to
grow modestly this year, on the back of an economic recovery and stock market
gains.
The
introduction of new products and the increased diversification of
distribution channels are likely to boost growth as well.
According
to Hoang Viet Ha, chief operating officer of the Bao Viet Insurance group,
with economic growth forecast at between 5.4 per cent and 5.6 per cent this
year, the insurance market is likely to maintain the growth rate of the
previous year.
The
non-life insurance segment is predicted to expand by about 8 per cent, while
the life insurance segment is expected to increase by around 15 per cent.
Ha
said the implementation of the voluntary pension insurance scheme and new
products would stimulate the life insurance segment this year. In the
non-life insurance segment, insurance providers would further diversify their
distribution channels to promote growth.
The
insurance sector is aiming for a more stable and sustainable growth rate and
is determined to undertake restructuring measures, including reducing capital
from non-core businesses, he was quoted as saying by Dau tu (Vietnam
Investment Review).
According
to Luong Quang Ban, deputy director of PetroVietnam Insurance, the insurance
market in
However,
general director of the BIDV Insurance Corporation Ton Lam Tung told Thoi bao
Tai chinh Viet Nam (Viet Nam Financial Times) that 2014 would remain a
difficult year for the insurance market and the non-life insurance segment,
in particular, adding that double-digit growth would be a challenge.
According
to the statistics from the Insurance Supervision Authority, Viet Nam has 59
insurance companies, which generated total revenues of more than VND45
trillion (US$2.15 billion), representing an increase of 10 per cent over
2012.
MoT
requires new funding to upgrade national highways
The
transport sector needs some VND3 trillion (US$142 million) for road
maintenance this year, according to the Ministry of Transport's Viet Nam Road
Administration acting general director Nguyen Duc Thang.
Currently,
the department oversees 19,100 kilometres of roads, consisting of 119 highway
routes. Of these, 10,000 kilometres were overdue for maintenance, while more
than 2,500 kilometres are scheduled for repair. Also, some 400 bridges are in
need of being rebuilt or upgraded.
According
to Thang, last year the department had taken a series of measures to protect
road surfaces and their safety corridors, such as digging and building
drainage on highways, using new technology for building bridges and
regulating overloaded trucks. This helped save trillions of dong, said Thang.
However,
the increase in traffic, damage caused by overloaded trucks and the erosions
of roads caused by storms have resulted in problems for maintenance crews.
In
fact, the road maintenance fund of VND4.1 billion ($192,700) only covers 40
per cent of the country's demand for repairing and upgrading transport
infrastructures, he said.
Thang
added that the demands for road repair and construction along highway routes
remain very large, while the capital fund for road maintenance is limited.
Thus, it was necessary to create plans that prioritised regulating areas with
recurring traffic accidents and deteriorating roads.
The
department will strengthen the quality of management of local road management
departments by tendering the maintenance management of about 20 per cent of
highways. Also, the department is to replace or add road signs at dangerous
locations and divert overloaded trucks to minimise road damage.
Further,
the department required the transport units to calculate regular maintenance
costs of highways, bridges and tunnels to report to the department. Major
highways with heavy traffic flows would receive priority for regular
maintenance, he said.
In
terms of weakened bridges, the department has received the ministry's
approval to re-examine major bridges nationwide and repair weakened bridges
using new technologies that adapt plastic cables to reinforce bridges and
strengthen their load carrying capacities.
Last
year, as many as 80 weakened bridges along national highways were repaired
and upgraded with the new technologies, saving about VND1 trillion ($47
million).
Incentives
sharpen social housing focus
Several
real estate projects have been changed to social housing developments to
provide housing for poor people and contribute to loosening difficulties in
the market.
The
country currently has 124 social housing projects containing more than 78,700
apartments, according to statistics from the Ministry of Construction.
Of
these, 85 projects has been under construction for low income earners with
51,900 apartments, while 39 other projects with 27,000 apartments would be
made available to workers in industrial zones.
The
total projects' investment was over VND35.6 trillion (US$1.69 billion).
In
addition, 57 projects have been proposed to convert from commercial housing
to social projects, which could provide an additional 34,837 apartments with
a total investment of VND20.5 trillion.
Of
these projects, Ha Noi has reviewed proposals from 15 projects to increase
the number of apartments from 5,478 to 10,587. Another 10 projects in
Regulations
supporting social housing take effects
The
Government has issued Decree 188/2013/ND-CP on the development and management
of social housing with stronger support and clearer procedures, which aims to
increase the social housing supply, as well as regulate the property market.
The
decree, which took effect yesterday, stipulates that social housing projects
would be exempt from land use taxes.
Investors
in such projects would also enjoy benefits, such as tax reductions and
exemptions for value-added and corporate taxes.
Enterprises
in the projects could ask for loans from credit institutions. Under the
decree, commercial banks and credit institutions would be responsible for
providing at least
3 per
cent of their total debt balance for social housing projects, offering
assistance to low income earners with lower interest rates than those
available in the market.
Also,
investors would be given support from the State budget for land clearance and
infrastructure improvements.
Investors
would also be allowed to issue bonds guaranteed by the Government to arrange
capitals for their projects.
Further,
the purchase of social housing will be transferred after 5 years of use, from
the time of signing the contract with the investor.
Of
note, in the last two weeks of 2013, disbursements from a VND30 trillion
package to offer soft loans to home buyers and property developers, in an
attempt to stimulate the property market and resolve bad debt, saw a surge of
VND170 billion.
By the
end of last year, the State Bank of
Of
these, commercial banks distributed VND304 billion to 7 enterprises and 1,750
customers, with total loans of VND428.5 billion.
Also,
the Bank for Investment and Development of Viet Nam took the lead in
providing loans under the package, with total disbursements of VND150
billion. This was followed by Vietcombank, Vietinbank, Agribank and MHB.
Meanwhile,
the ministry's Housing and Real Estate Management Department said banks have
received applications and reviewed them.
Interbank
rate sees year-end increase
High
capital demand from commercial banks raised the borrowing interest rates in
the interbank market in the last week of 2013, the central bank's statistics
showed.
The
value of the total transactions in Vietnamese dong reached VND128.5 trillion
(US$6.1 billion) and those in US dollars was $2.8 billion.
Overnight
and one-week terms accounted for up to 77 per cent of all transactions in
dong and the greenback.
Interest
rates charged for dong loans for one month were up by 0.79-2.23 percentage
points, while those for US dollar loans, ranging from one-month to
three-month loans, rose by 0.19-0.35 percentage points.
The
increase was blamed on the growing capital demand before the end of the year
when all payments were due and on enterprises importing materials for
domestic production, as well as trade companies importing products for the
Tet sale season. Moreover, banks were also accelerating plans to expand
outstanding loans to hit the targeted credit growth.
The
State Bank of
Labourers
in industrial zones often line up in front of the ATMs, hoping they will not
run out of cash or incur technical problems. The demand for cash always
skyrockets with the approach of the longest and most important annual
festival in
Many
ATMs in
However,
he added, due to the holiday traffic, these refills may be delayed at times.
Real
estate to perk up by year-end
The
policy of maintaining stability and reasonable economic growth this year is
important and appropriate to foster the business (including property)
environment, said Vu Viet Ngoan, chairman of the National Financial
Supervisory Commission.
Ngoan
told members of the HCM City Real Estate Association (HOREA) at a meeting
this week that the Government has come out with measures to revive the
market, which would have a domino effect.
They
included the simplification of administrative procedures and the VND30 trillion
(US$1.42 billion) credit package for developers and buyers.
Le
Hoang Chau, HOREA chairman, said the difficulties the market faced last year
persist and are likely to ease gradually as the economy and foreign exchange
rate stabilise, inflation eases, and, especially, disbursement of the VND30
trillion credit is speeded up.
"It
(the credit programme) restores developers' confidence in the recovery of the
market and offers urban low-income earners a chance to buy dwellings at
reasonable prices and reasonable interest rates," he said.
But
disbursement has been too slow, at less than 2 per cent, he complained.
He
also proposed having a more open policy that allows overseas Vietnamese and
foreigners to buy high-end apartments.
According
to a report on HCM City's real-estate market in the fourth quarter of 2013
released on Tuesday by property services provider Savills Viet Nam, there
were approximately 15,300 units in the primary market, a surge of 2 per cent
from the previous quarter and 5 per cent year-on-year.
Seven
new projects and new phases of three existing projects brought 2,100 units to
the market in the quarter.
Savills
Viet
Housing
demand at the end of the year typically increases. The total number of units
sold this quarter was 46 per cent higher than in the third quarter of 2013.
Meanwhile, approximately 2,400 units entered the market this quarter. The
total primary stock was approximately 11,500 units, increasing by 15 per cent
quarter-on-quarter (QoQ).
The
absorption rate was 11 per cent, up 2 percentage points QoQ due to lower
prices, fast construction progress, offers of shell packages and a wide range
of promotions, said a Savills Viet Nam spokesperson.
The
apartment market in Ha Noi has also shown improvement in the last quarter of
2013, according to the fourth quarter report on Ha Noi's property market by
the CB Richard Ellis Viet Nam Company (CBRE).
Re-launch
activities were very active since developers were more concerned about
clearing out outstanding stock than in releasing new products.
Following
a record third quarter, the fourth quarter also saw the completion of 7,500
units.
An
interesting development during the fourth quarter is the shift in the
developers' focus from low-priced products ($1,000 per square metre and
below) to mid-priced products ($1,000-$1,500 per square metre).
Unlike
previous quarters in which transactions occurred mostly in the low-price
range, the last quarter of 2013 saw more transactions at the mid-price level.
This is most likely driven by buyers' increasing confidence, which also led
to a 50 per cent quarter-on-quarter increase in total transaction volume.
The
year 2014 should see many more completed projects and further intensification
of competition, with newly launched units. Buyers are now mostly interested
in completed or nearly completed units to avoid issues with handover quality
and late handovers. High-quality projects will likely see increasing
transactions, even though their prices may not necessarily improve.
Truong
An Duong, head of research for Savills in
Overseas
remittances in 2013 are likely to have been $10.6 billion, up 6 per cent.
Over
59,500 units in 94 projects are expected to be completed from 2014 to 2017,
with 81 per cent being completed from 2016 onward.
In the
next two quarters over 1,200 units are expected to be hit the market.
VICEM
targets $1.4b in revenues in new year
The
Viet Nam Cement Industry Corporation (VICEM) hopes to earn more than VND30
trillion (US$1.41 billion) in revenues by selling nearly 21,000 tonnes of
cement and its associated by-products in 2014.
To
meet the target, the corporation will take efforts to minimise production,
management and selling expenditure, while diversifying production and
stepping up corporate restructuring efforts.
It
will also improve business management and renew production methods in an
attempt to lead
Defying
the economic downturn, in 2013, VICEM witnessed significant growth, with
clinker and cement output increasing 8.8 per cent from the previous year to
over 16 million tonnes.
It
generated VND30.5 trillion ($1.43 billion) in revenues and a pre-tax income
of VND528 billion ($24.8 million), while contributing over VND1 trillion ($47
million) to the State budget.
2014:
Brighter prospects for Vietnamese economy
The
Vietnamese business community continues to believe in brighter economic
prospects for 2014, due to the Government’s drastic measures on easing
difficulties and expectations emerging from a Trans-Pacific Partnership
(TPP), said domestic experts.
As
many as 42 percent of surveyed enterprises said they could enlarge their
production while 50.7 percent of them planned to maintain their existing
business scale, with only 6.7 percent thinking of narrowing manufacturing.
Despite
many difficulties, domestic production and business activities saw signs of
recovery at the end of 2013, attributed to escalating consumption demand
before the Tet
(Lunar
New Year) holiday, according to Chairman of the Vietnam Association of Small-
and Medium-sized Enterprises Cao Sy Khiem.
In-depth
integration into the international arena still remains an impetus to the
economy. Noticeably, the TPP, an expansion of the 2005 Trans-Pacific
Strategic Economic Partnership Agreement, will have a great effect on the
economy as it will bring tariffs to zero percent on trade among its members,
including
Many
business associations and large corporations also have high expectations of
the benefits the TPP will bring about.
The
Vietnam Textile and Apparel Association (Vitas) hopes that the agreement will
help raise export turnover of the sector to 30 billion USD in 2020 and 55
billion USD by 2030.
Besides
big opportunities in boosting exports and FDI attraction, the TPP will also
bring challenges to many domestic sectors. The domestic breeding industry,
for example could face difficulties competing with partners from developed
countries.
In the
same way, economic collaboration between ASEAN countries as well as their
newly-signed cooperation agreements will facilitate Vietnamese enterprises’
investment activities and help expand their market share and exports, while
exposing them to increasing competition from rivals in the region.
Low-price
commodities will flow in, while domestic skilled labourers will move to other
ASEAN countries, Doanh said.-
Borrowing
costs face upward pressure
Interest
rates increased sharply in the interbank market in the last few weeks of
December 2013, revealing a huge demand for liquidity at banks.
According
to the State Bank of
But
the interest rates on both VND and USD borrowings have risen sharply. It was
0.79 percentage points up from the previous week for dong loans at 2.23
percent per year.
However,
they did not come as any surprise since a rising trend had begun several
weeks earlier.
Demand
for cash often increases at the end of the year as people need more money to
do shopping.
Besides
this, the central bank has also been pumping money through open market
operations (OMO).
By
December 27, it had injected 14.73 trillion VND (701.43 million USD) during
the month. In previous months the flow had been negative to the extent of 102
billion VND (4.86 million USD).
Clearly,
the central bank is ready to intervene in the market to prop up the banking
system's liquidity and keep the interbank market stable.
Not
surprisingly, banks have also begun a new race to increase deposit interest
rates.
Sacombank
offers the ceiling interest rate of 7 percent – applicable for deposits of up
to six months – for one to five months, and 7.3 percent for six to 11 months.
Asia
Commercial Bank offers 6.9 percent for deposits of one to two months.
Eximbank offers 8 percent for a one-year term.
Some
small banks in
With
the deposit rates rising again, lending rates are likely to be under pressure
too this year.
A
senior economist said besides the rising deposit interest rates there are
also other reasons that would keep loan interest rates from falling in 2014.
They
include a predicted inflation rate of around 7 percent, meaning the coupon
rates on Government bonds have been fixed at a level that banks find
attractive.
The US
dollar is likely to strengthen, affecting the interest rates and exchange
rates, he added.-
Source:
VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
|
Thứ Ba, 14 tháng 1, 2014
Đăng ký:
Đăng Nhận xét (Atom)
Không có nhận xét nào:
Đăng nhận xét