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BUSINESS IN BRIEF 25/1
Garment
industry needs to cut dependence on imports
However,
major input materials, currently estimated at more than 70%, such as fabrics,
labels, zipper pullers, and strings are imported from overseas markets, Hong
said, and Vietnam needs to develop domestic alternatives to ease the
situation.
Meanwhile,
the Ministry of Industry and Trade (MoIT) predicts that
Vietnamese
firms are keeping a close watch on traditional big markets such as
Taiwan-Vietnam
cooperation bears fruit
Cooperation
between
Bui
Trong Van, the Chairman of Taipei’s Vietnamese Culture and Economic Office,
reports told a VOV reporter Taiwan remain sone of Vietnam’s most important
trade partners.
It is
Van
said two-way trade turnover was estimated at US$12 billion in 2013, a 14.3%
annual improvement. Vietnamese exports contributedUS$2.6 billion.
Taiwanese
investors poured nearly US$600 million into 66 new projects and 52 expanded
Vietnam-based, 5.5% more than a year earlier.
Van
thinks cooperation agreements could encourage Taiwanese businesses to
increase their Vietnamese investments even further.
Taiwanese
investors need to be reassured regarding improvements in
Van
acknowledged the technical barriers currently hindering Vietnamese exports
such as coffee, tea, rice, fruit, and vegetables. “We hope to eventually
dominate a 50% share of
Local
producers and exporters should grasp every opportunity to expand their agricultural
exports to
Van
said Vietnamese guest workers have worked inTaiwan for more than 10 years.
More than 136,000 Vietnamese guest workers were employed in
The
industriousness and skill of Vietnamese workers has won them the praise of
Taiwanese employers despite occasional labour law violations, he noted.
Demand
for Vietnamese workers is rising in manufacturing factories, domestic work,
and aged care.
Taiwan’sUS$400
billion in foreign currency reserves are the fourth largest in the world. It
is home to a diverse range of internationally renowned computer,
telecommunications, science-technology, and agricultural brands.
It
highly values global trade and overseas education. As many as 70–80% of
Taiwanese professors have studied in the
Dak
Ha powdered coffee receives UTZ label
Dak Ha
powdered coffee of the Central Highlands
After
seven years of building its brand name, Dak Ha coffee has been listed among
the top 500 products and services of the country and top 20 quality
Vietnamese products that are beneficial for public health.
In
meeting the quality standards required by the organisation, Dak Ha district
encouraged coffee growers and businesses to replace out-of-date coffee
production processes with clean technologies that satisfy the Common Code for
the Coffee Community (4C) standards applied in
Internationally-standardised
production processes and equipment were put into operation without harming
the surrounding environment or health of both labourers and consumers.
In
2013, Dak Ha coffee producers provided 25 tonnes of products for the market.
They plan to sell 40 tonnes this year and 100 tonnes by 2016.
Joining
the UTZ Certified programme, coffee growers in Dak Ha can reduce total
farming costs by 5-7%, increase their production by 5-7%, and sell their
products at US$30 per tonne, higher than the current price.
Made
in Thailand outlet opens in Hanoi
More
than 100 Thai companies and exporters are showcasing their products at the
2014 Made in Thailand Outlet that kicked off in
On
display at over 120 stalls are products of high quality and renowned brands,
including food, beverages, household commodities, garment-textiles,
jewellery, as well as health care products, decorations and souvenirs.
The
fair, the seventh of its kind in
It
will run until January 26 at the
In
2012, two-way trade hit over US$8.6 billion.
Two-way
trade turnover between the two countries reached US$7.8 billion between
January-October, 2013, up 15% compared to the same period last year.
Positive
signals for shrimp exports to Japan
In an
announcement dated January 21, the Japan Ministry of Health, Labour and
Welfare decided to raise Ethoxyquin MRL by 20fold from 0.01ppm (parts per
million) to 0.2ppm, and remove regulations on inspections for 100% of shrimp
shipments imported from Vietnam.
This
demonstrates all-out efforts by Vietnamese management agencies and businesses
in controlling Ethoxyquin residue in farmed shrimp.
Shrimp
exports to
Japan
Customs reported
Leather,
footwear firms set sights on exports
The
Vietnam Leather and Footwear Association (Lefaso) is forecasting high export
growth of Made-in-Vietnam handbags, suitcases and briefcases for the leather
and footwear industry in 2014.
Handbag
exports jumped up 26% to US$1.92 billion in 2013, which far outpaced
expectations of US$1.7 billion, according to Lefaso.
This
year, it is anticipating that handbag exports will surge approximately 30%.
Lefaso
regularly tracks information about opportunities in the handbag industry as
many foreigners are seeking Vietnamese suppliers, who are benefiting from a
world-wide trend away from factories in
Lefaso
President Nguyen Duc Thuan says eight out of 10 world famous handbag brand
names are currently planning to shift their orders to
Vietnamese
handbags, suitcases and briefcases are currently available on five continents
and are getting a toehold into the higher demand markets.
Currently,
the EU accounts for 28% of Vietnamese handbags, suitcases and briefcases,
Asia (21%) and northern
There
is still an untapped high demand for these products in the world market,
which enables domestic businesses to break into and expand production, Thuan
said.
Some
Vietnamese businesses have taken advantages of materials, markets and
experiences to invest in handbag manufacturing.
For
instance, Thai Binh Shoes is a pioneer in the manufacturing of luxury
handbags for world famous brand names, including Coach of the
As a
group these products have experienced rapid export growth since 2011,
earning US$1.33 billion in 2011, US$1.518 billion in 2012 and US$1.92
billion in 2013.
They
have also gained the confidence from domestic customers and around 25 million
of the products are sold annually in the domestic market.
Businesses
primarily use domestic leather to make student handbags and backpacks and
import higher quality materials to make luxury handbags.
In the
past, foreign investors have dominated the handbag export market, however,
domestic businesses have got into it over the past 2 years and have set their
targets to become suppliers to world famous brands.
PPP
projects promoted
Major
infrastructure projects slated for the public-private partnership model are
grabbing the attention of domestic and international investors.
A
consortium consisting of Fecon-Cienco 1-Conteccons is the latest investor to
show interest in the Ninh Binh-Bai Vot highway project, one of the five major
infrastructure projects under the PPP model.
The
World Bank is assisting the Ministry of Transport (MoT) to update the
project’s proposal. According to the WB, there are several changes compared
to the initial proposal.
One
major change was that instead of building a six lane route for the 193
kilometre section from Ninh Binh to Bai Vot, the first phase will consist of
four lanes and the WB has proposed building the 66km section from Cao Bo to
Nghi Son first.
The
estimated total investment for the project is set at $1.067 billion with $467
million of state capital, representing 44 per cent, investor equity $156
million, 15 per cent, and commercial loans of $444 million, 41 per cent.
The
capital structure is viewed as suitable to the capacity of local investors.
The
project will also apply build-fund-operate-maintenance (BFOM), new to
According
to Deputy Minister of Transport Truong Tan Vien, the MoT has proposed some
additions to the BFOM such as state capital surpassing 30 per cent and
payment based on service quality of toll collection.
If the
proposals get the go-ahead from the prime minister, WB consultants will
complete the investment model by 2015 and investors will be selected in 2016.
Another
project, a PPP pilot, is the $757 million Dau Giay-Phan Thiet expressway with
the pre-qualifying stage to select the project’s second investor to be
completed in January. If impediments such as disagreements over toll fees and
adjustments of fees over time and parent company guarantees are tackled,
construction could be kicked off in the third quarter of next year.
Another
project, the Bien Hoa-Vung Tau expressway, has already reached the conclusion
of its design phase.
According
to Japan International Cooperation Agency (JICA) consultants, the four lane
37.6km section from Bien Hoa to Phu My and 9.2km section from Phu My to
National Highway 51 is already set for the PPP model and will see the total
investment fund of VND11.6 trillion ($556 million). Construction will be
finalised before 2020 with state capital covering 35 per cent.
According
to a study by developer CIPM Cuu Long, a VND16 trillion ($762 million), 33km
section from Trung Luong to Cai Be of the southern Trung Luong-My Thuan
expressway may also interest investors looking at the PPP model if the state
guarantees 40 per cent of total investment and permits toll collections along
the road, as well as along the Ho Chi Minh City-Trung Luong section.
CIPM
Cuu Long said that apart from JICA and Posco E&C who took part in the
investment study, other foreign investors have also shown interest in the
project such as Moonary Group and Metro Pacific Toolways Corp.
The
MoT will soon ink the project’s proposal to send up to the Ministry of
Planning and Investment.
Vinacomin’s
power plan goes into overdrive
State-run
Vinacomin is expected to drastically increase its power generation capability
in the coming year, by focusing on a string of key projects.
Vinacomin,
the country’s third largest power investor, said the group would accelerate
the development of its power plants including the 1,200 MW Quynh Lap I power
plant, the 154 MW Dong Nai 5 hydropower plant and 100 MW Na Duong thermal
power plant this year.
Le
Minh Chuan, general director of Vinacomin said the group’s under-construction
Nong Son thermal power plant was on the right track and expected to begin
production in the second quarter of 2014. This month, the group signed a site
clearance contract for the Vinh Tan 1 thermal power plant after signing a
build-operate-transfer (BOT) contract in late 2013.
Besides
the development of power plants in 2014, the group also planned to focus on
other key projects. For example, the Nhan Co Aluminium project, one of two
large-scale bauxite projects approved by the prime minister in November 2007,
is scheduled to come online in the third quarter of 2014 in the Central
Highlands
Construction
began on the project in early 2010, and it is expected to be capable of
producing 1,200 tonnes of aluminium per year by 2016.
Similarly,
In
addition, Chuan said that the group had planned a series of measures to
accelerate coal exploitation and improve the quality and efficiency of its
operations. Vinacomin aims to mine 35 million tonnes of coal, with 27 million
tonnes to be used domestically and the remainder exported.
However,
he shared that, “rising coal demands combined with sluggish investment and
high input costs pose challenges for the group.”
Vinacomin
mined 42.6 million tonnes of coal in 2013, down four per cent, against the
previous year. It sold 39.1 million tonnes, of which 27.1 million tonnes was
for domestic use.
Deputy
Prime Minister Hoang Trung Hai urged Vinacomin to strengthen management and
improve its performance to meet the country’s coal demand.
A
Ministry of Planning and Investment (MPI) official told VIR that Formosa Ha
Tinh’s proposal was submitted to the prime minister. Now the ministry is also
waiting for the government’s guidance on the matter, said the official.
Formosa
Ha Tinh now faces entanglement in the import tax policy on its machines and
equipment to create fixed assets for its giant steel and port complex in the
central
Specifically,
in early November 2013, the company sent a document to the General Department
of Customs (GDC) proposing an import tax exemption for its complex. In late
November 2013, the GDC released its own document to Formosa Ha Tinh asking
the company to contact the MPI to define whether its imported goods are
included in the list of construction materials manufactured in the domestic
market or not, as the basis for whether it will have to pay import tax.
The
project is in a gray area of Decree 124/2008/ND-CP dated December 11, 2008.
If its imported goods are included in the list, it will be exempt from import
tax in accordance with Circular 04/2012/TT-BKHDT issued on August 13, 2013,
according to the document signed by Hoang Viet Cuong, deputy director of the
GDC.
The
company has worked with the MPI to resolve the issue, but the ministry is now
putting the decision to the government.
As of
now, the steel complex is considered
Ground
breaks at new titanium plant
Construction
started on
Located
in the central
Nguyen
Ngoc Thanh, deputy head of Heavy Industries Department under the Ministry of
Industry and Trade said that when the Thang Hai II complex came online, it would
be a breakthrough for
General
director of Binh Thuan Mineral Industry Joint Stock Company said the complex
was expected to produce 180,000 tonnes of titanium slag and 50,000 tonnes of
pigment per year. Its exports would be primarily to
Binh
Thuan has titanium reserves of 599 million tonnes, accounting for 92 per cent
of
According
to the provincial Department of Industry and Trade, there are currently 17 titanium
processing projects in the works at different levels of development including
a $350 million complex by
Vietnam
is estimated to have a total reserve of around 650 million tonnes of
titanium, accounting for five per cent of the world’s reserves, just behind
Canada, the US, Norway, India, and Australia, according to the Vietnam
Titanium Association.
Titanium
is important in shipbuilding, airplane manufacturing and painting industries,
among others. In the past, the lion’s share of the mineral mined in
Last
year the prime minister approved a master plan for the titanium sector,
paving the way for investors keen to tap into this lucrative industry.
Under
the master plan, the prime minister agreed to zone off areas for the
exploration and production of titanium through 2020 with a vision towards
2030. The country’s four titanium ore producing areas will supply raw
materials for manufacturing facilities in Thai Nguyen, Ha Tinh, Thua
Thien-Hue, Quang
State
Audit announces 2014 shortlist
A
series of major state firms will be under scrutiny from the State Audit of
Vietnam in 2014.
The
SAV just announced the 2014 auditing plan for the state budget and financial
statements ad activities related to the use of capital and state assets.
Accordingly,
it will audit the capital mobilisation and usage of five leasing companies
including Agribank, Leasing I and II, Vietinbank Leasing, BIDV Leasing, and
VCB Leasing.
In
terms of state assets and capital usage, the SAV will audit eight units – the
Vietnam National Chemical Corporation, Cement Corporation of Vietnam, Vietnam
Pharmaceutical Corporaion, Vietnam Railways Corporation, Vietnam Steel
Corporation, Bao Viet Group, Vietnam Social Insurance, and Vietnam Postal
Corporation.
In the
field of basic construction, some projects included in the audited list are
the project for developing road in north of Ha Dong ; project for
rehabilitation, upgrading National Highway 8A in Ha Tinh province; the
sanitation project in Dong Hoi City ; Hydroelectric Project in Quang Tri
province, the projects invested by Vung Ang Project Management Department,
project to build the new Highway 3 from Hanoi to Thai Nguyen; the coastal
road project in Ninh Thuan and Cai Mep-Thi Vai interport road project.
In the
field of basic construction, some projects slated for auditing included a
road being constructed north of Ha Dong, a project to renovate and upgrade
National Highway 8A in Ha Tinh province, a sanitation project in Dong Hoi
City, the hydroelectric project in Quang Tri province, Highway 3 from Hanoi
to Thai Nguyen, the coastal road in Ninh Thuan, and the Cai Mep-Thi Vai
interport road project.
Big
deals still went down to defy real estate downturn
A
number of well-heeled developers have cashed in on the downturn of the
real estate market last year to acquire properties.
The
Vietnam Infrastructure and Property Development Group Corporation (VIPD)
struck the biggest deal last year, spending $470 million on the acquisition
of Vincom Centre A from the Vingroup. Vinaconex - Hoang Thanh reached a deal
to sell the ParkCity residential project in
Many
other domestic developers have taken over projects, such as the FLC Group
which spent nearly VND300 billion ($14 million) for acquisition of Alaska
Land project and the Muong Thanh Group’s Lai Chau Construction Company No.1
which bought the VP6 Linh Dam project from Coma 18.
Several
deals involved investors from
Lotte
Hotels & Resorts Group purchased 70 percent of the Legend Hotel in
Maple
Tree successfully closed the purchase of the CentrePoint office building,
located in
Experts
have predicted that many other transactions could well have taken place
without public fanfare. These transactions immensely influenced the real
estate market, and have prompted a shake-out of less financially capable
investors.
Foreign
investors, especially those from
The
financial portal Stoxplus predicted the real estate market would continue to
see more dynamic transactions, with foreign investors remaining interested in
the retail sector. Projects with good locations, transparent legal situations
and competitive prices will remain top targets.
According
to CBRE associate director of investment Adam Bury, whilst the increase in
investment enquiries and activities may sound like a silver lining to a
particularly grey cloud for some active within the market, it is worth
remembering that investors were also looking to
“To
generate such opportunistic returns, of over 25 per cent IRR for a project,
the price at which an investor enters a project is key,” Bury asserted.
In
addition to valuations, there are three other major hurdles which domestic
groups must overcome if they are to secure foreign investment. Those projects
must have a proven track record, prudent and efficient structuring and
transparency to incoming groups.
Ha
Noi–Hoa Binh route to be developed
The
Transport Ministry proposed to the Prime Minister a new investment plan to
build and upgrade roads connecting Ha Noi with northern
Over
VND2.1 triillion (US$102 million) is needed to build a 30-km road running
from the Ethnic Culture and
Another
VND341 billion ($16.2 million) is needed to upgrade and expand the section of
National Highway 6 that runs from Ha Noi's Xuan Mai Town to Hoa Binh City.
National
Highway 6 is the only road connecting Ha Noi to northwestern provinces, but
it is deteriorating and too narrow to meet increasing transport demand.
However, access to State funding and overseas development assistance is
difficult, according to the ministry.
In
2010, developer Ha Noi Import Export Joint Stocks Company (Geleximco) started
the VND18 trillion ($857 million) Hoa Lac-Hoa Binh Highway Project with the
construction of a six-lane highway that was expected to be completed this
year, helping reduce pressure on National Highway 6.
However,
Geleximco withdrew from the project last August, citing funding difficulties.
At that time, the company had spent VND360 billion ($17.1 million) on the
project.
Deputy
Transport Minister Nguyen Hong Truong said that the road project would be
more feasible if it was developed under a build-operate-transfer contract
with all funding provided by the investor.
The
investor would be granted the right to place two toll stations on Highway 6.
Collection could begin immediately after the upgrade, which is slated for
2015.
One
station will be set up on the Hoa Lac-Hoa Binh route with collection starting
when it opens in 2017. The ministry proposed the Government apply a fee
similar to that of National Highway 1's BOT projects, where the fare exceeded
the cap imposed by the Finance Ministry by 3.5 times. With these conditions,
investment could be retrieved within 29 years.
Phu
Yen to hold
The
central
The
seafood festival this year will be held under the theme "
According
to the organisers, the festival, which will be attended by representatives
from 28 coastal cities and provinces nationwide, will host several economic
activities, such as investment promotion, the joint development of trade and
aquaculture, and tourism promotion.
The
festival, costing VND10 billion ($470,000), will take place over six days
from March 28.
FPT
eyes 30% gain in revenue for 2014
The
country's software giant FPT has set a target of earning revenue of US$130
million this year, a year-on-year increase of 30 per cent.
Speaking
at the company's 15th anniversary in Ha Noi this week, general director
Nguyen Thanh Lam said that last year, the company earned $100 million in
revenue and employed 5,000 IT workers.
Lam
said FPT software plans to earn $200 million in revenue and employ 10,000
employees in 2016.
According
to Hoang Nam Tien, chairman of FPT Software, over the past 10 years, the
company has seen an average annual growth rate of 49 per cent and 43 per cent
in terms of revenue and profits respectively.
The
company has branches and representative offices in eight countries.
Currently, it is the leading provider of software outsourcing services in
Last
year, FPT signed many important software outsourcing contracts with partners
such as Recruit Technologies of Japan and a bilateral agreement with Vietnam
Airlines to modernise its IT system.
To
attain its dream of earning $1 billion in revenue and employing tens of
thousands of IT workers, FPT leaders said they will make every effort to take
advantage of opportunities offered by traditional clients. The company will
invest further in developing technology, including cloud computing, big data,
machine to machine (M2M) and SmartTV.
Deputy
Minister of Information and Communications Nguyen Minh Hong said that the
company's results last year have made it one of the biggest software firms in
South East Asia, and noted its important role in the development of
However,
Viet Nam still needs more companies that have a scale of business similar to
FPT Software, which could help maximise the country's software opportunities
and make it more competitive on a global scale, said Hong.
On
behalf of the State, he said the Ministry of Information and Communications
will establish appropriate favourable mechanisms and policies for the further
development of the sector to help Vietnamese enterprises participate in
larger projects in the near future.
US
firm offers advanced cyber protection
US-based
Symantec Corp announced early this week in Ha Noi new additions to its
leading technologies that protect organisations, especially small and
medium-sized enterprises, from targeted attacks.
Defending
against sophisticated attacks is now the norm, and it's not just large
companies that are being affected. Targeted attacks against businesses with
fewer than 250 employees are growing significantly. Globally, small
businesses are the target of 31 per cent of all such attacks.
Small
companies are an attractive target for cyber criminals as they have fewer
security safeguards and often have business relationships with larger
companies, which may be the ultimate target of attackers.
"One
of the main concerns for Chief Information Security Officers (CISOs) and IT
managers today is safeguarding their organisations against evolving targeted
attacks which have become an established part of the threat landscape,"
said Raymond Goh, Symantec's Senior Director of Systems Engineering, Asia
South Region.
"The
new technologies, combined with our comprehensive solution portfolio, will
protect organisations in
Most
targeted attacks are now in the form of malicious but seemingly innocuous
documents delivered over email. Each such malicious document, like a PDF, DOC
or XLS file, contains an embedded attack. When a victim simply views the
document, his computer is automatically and silently compromised.
To
deal with this problem, companies could use powerful new innovations
including Disarm technology in Symantec Messaging Gateway and Network Threat
Protection in Symantec Endpoint Protection for Mac computers.
The
new Disarm technology in Symantec Messaging Gateway uses a first-of-a-kind
technique to protect companies from targeted attacks.
Traditional
protection technologies attempt to scan documents for suspicious
characteristics. The problem is that many of these document-based attacks are
deliberately crafted so that they don't look suspicious and as a result, they
go undetected.
Disarm
technology takes a whole new approach. Instead of scanning the document, it
essentially makes a digital, harmless copy of every incoming email
attachment/document, and delivers this copy to the recipient, rather than the
original, potentially malicious document. The result is that the recipient is
never exposed to the attacker's malicious attachment, said Goh.
Carriers
vow smooth transmission for Tet
The
major mobile network operators in
However,
they warned mobile users of possible congestion in some locations that
witness huge gatherings of people during New Year's Eve, such as firework
display locations.
Viettel,
the country's largest mobile carrier in terms of number of subscribers, said
its mobile users are unlikely to face congestion issues, as a large number of
2G network users had shifted to the 3G network, reducing the overload on the
2G network.
"In
fact, over the past two years, the demand for sending mobile texts during the
Lunar New Year has reduced following a boom in 3G usage, which prompted us to
upgrade our 3G capacity," said the head of Viettel's network department,
Tao Duc Thang.
He
said the company has focused on upgrading its transmission capacity by
installing more BTSs (base transmission stations) in locations where large
crowds are expected to congregate to celebrate the New Year.
"We
will also use mobile BTSs installed in cars during New Year's eve,"
Thang added.
The
carrier said that its network allows download and upload speeds of up to 21.6
and 5.76 megabits per second, respectively, which will reduce the likelihood
of congestion.
MobiFone's
deputy general director Nguyen Dang Nguyen said this year, more people will
use high-speed data services to share their photos and videos of New Year
celebrations, thanks to the popularity of smartphones.
The
country's oldest carrier has installed a large number of additional 3G data
transmission stations and mobile stations for the busiest time of the year.
New
mobile subscriptions in
The
country has five mobile network operators: Vinaphone, MobiFone, Viettel,
Vietnamobile and Gtel.
Vegetable
oil exports set to increase
The
domestic production of refined vegetable oil this year is estimated at about
774,000 tonnes, up 7.8 per cent from last year, the Ministry of Industry and
Trade has said.
The
Ministry also forecast 2015's output at around 850,000 tonnes, 9.8 per cent
higher from this year's estimated output.
However,
the ministry pointed out that local vegetable oil producers will continue to
face hardships due to their heavy dependence on raw material imports.
The
industry imports up to 90 per cent of its raw material requirements, and
their prices often tend to be volatile.
Local
producers have also faced intensifying competition from vegetable oil
imports, the ministry added.
During
2011-13, refined vegetable oil production in the country rose 8.3 per cent
annually, which is a lower pace compared with previous years, as a result of
increasing competition from vegetable oil imports from
As a
result, in September last year, the Ministry of Industry and Trade decided to
impose a 5 per cent import tax on refined soybean oil and palm oil, noting
that the surge in imports is harming the domestic industry. The tariff is
expected to gradually ease to 2 per cent by 2017.
The
ministry introduced the tax after an eight-month investigation, which showed
that the market share of local vegetable oil producers had declined from 52
per cent in 2009 to 27 per cent in 2012, even as demand increased from 100
tonnes to 137.94 tonnes during the same period.
The
investigation was initiated in December following an application by the
National Company for Vegetable Oils, Aromas and Cosmetics of Viet Nam and
seven other producers.
It is
the first time the Government has invoked an ordinance on safeguard measures
against imports, which it passed in 2002.
Highway
1 to receive $141m
The
Bank for Investment and Development of Viet Nam (BIDV) will provide nearly
VND3 trillion (US$141 million) in loans to expand a 70-km section of National
Highway 1.
The
loan will help upgrade the 29-km section of National Highway 1 that runs
through the central
For
the 29-km expansion, BIDV committed to supply nearly VND1.4 trillion ($65
million) to the Binh Dinh BOT Joint Stock Company. The project will start
from the province's Hoai Nhon District in the 2014-16 period. The loan term
will be 19 years and three months.
The
40-km project, worth VND2 trillion ($94 million), would be implemented from
now until 2015 with a loan term of 14 years and six months.
This
is part of a VND30 trillion ($1.4 billion) credit package the bank signed
early last year with the Ministry of Transport to fund the
Build-Operate-Transfer project to enlarge the highway.
National
Highway 1A, which is of significant importance for the country's
socio-economic development and national defence, has seriously deteriorated
in recent years, leading to congestion and accidents.
Tet
holiday sweetens demand for locally made confectionary
Locally-produced
products are gradually gaining a firm foothold in the domestic confectionery
market as consumers switch their preferences from foreign to domestic items
for the Tet (Lunar New Year) holiday.
Domestically-produced
items, reportedly, account for 90 per cent of the domestic confectionery
market, even though foreign companies have accelerated their market
penetration.
The
rise of imported confectionery with high quality, beautiful packaging in the
domestic market has forced local companies to innovate, seek new technologies
and improve productivity and product quality to meet the demands of local
consumers.
In
particular, Vietnamese businesses have sought to understand local consumer
sentiment as they carry out research and develop new flavours to attract
customers.
Currently,
some of the well-known domestic confectionery producers are witnessing a boom
in demand for their products in the run-up to the Tet holiday.
In
recent years, the market for festival gift baskets has been increasingly
dominated by brands such as Trang An, Kinh Do, Bibica, Hai Ha and Pham
Nguyen.
Nguyen
Xuan Luan, deputy general director of the Kinh Do Corporation, said that, as
of January 6, his company had reached its sales target of 4,500 tonnes for
the Tet festival.
These
days, Kinh Do is operating at full capacity as the orders from supermarkets
have increased in anticipation of higher demand before the New Year festival.
Along
with large-scale investments for upgrading the quality and design of its
products, Kinh Do Corporation has focused on taking advantage of its
distribution channels throughout the country to extend the reach of its
direct sales activities, as well as distribute products to rural areas to
meet consumer demand for the Lunar New Year, reports online newspaper Dien
dan doanh nghiep (Business Forum).
One
representative of a famous confectionery producer in HCM City predicted that
confectionery consumption would increase strongly as the Tet holiday
approaches, adding that his company had raised production capacity by an
additional 50 per cent from the previous target.
Tran
Thuy Hoa, head of the technology department of the Ha Noi Confectionery
Company, noted that this year, the total production of cakes and various
kinds of dried and candied fruits was expected to go up to 500 tonnes, 6-8
per cent higher from the same period last year.
She
said the figure strongly reflected consumer trends seen earlier this year.
Nguyen
Quoc Hoang, deputy general director of Bien Hoa Confectionery Corporation
(Bibica), added that nearly 1,300 tonnes of different varieties of cakes,
candies and candied fruits, priced at various ranges, are being offered to
local consumers since late 2013.
This
year, the company's production capacity rose by 10 per cent.
According
to several experts in the retail industry, this year, a struggling economy
has led to a significant decline in the purchasing power of consumers.
However,
professional manufacturers and reputable brands are still the top choices of
consumers.
Seaport
system set for major upgrade
Transport
Minister Dinh La Thang has asked concerned agencies to expedite work on a
major project to improve operational efficiency of the No 5 Seaport System to
make it a regional entrepot in the near future.
The No
5 seaport system covers all the ports in HCM City and the neighbouring
provinces of Ba Ria-Vung Tau and Dong Nai.
The
project, which has already been approved by the Government, includes
upgrading of the Cai Mep – Thi Vai Port in the southern province of Ba
Ria-Vung Tau
The
aim of the project is to reduce and eventually stop the dependence on
regional entrepot ports like Singapore and Hong Kong to ship Vietnamese
commodities to overseas markets, Thang said.
He
noted that although several smaller ports under the Cai Mep – Thi Vai Port
are operational, commodities were still being transported to old seaports in
downtown HCM City.
This
was happening because no department or oganisation is directly responsible
for managing and operating the shipment process, he added.
The
original plan for the Cai Mep – Thi Vai Port was to reduce the use of seaports
in downtown HCM City.
To
deal with the current situation, the Transport Ministry has suggested several
measures including a moratorium, until 2015, on issuing licenses for new
container ports for the entire No 5 system, including the Cai Mep – Thi Vai
port.
New
solutions will be proposed later for the 2015-2018 period.
In
making its decision on the entire No. 5 system, the ministry has said it
would also takeover decisions regarding the establishment and expansion of
ports nationwide. In making its decisions, it will take into account the
actual need for seaports, the investment required as well as their
suitability with land-use plans, the minister said.
At
present, provinces and cities nationwide are allowed to decide on the
construction of infrastructure projects in their respective localities.
Thang
said his ministry will also try to increase the volume of imported products
coming through the No. 5 seaport system, especially through the Cai Mep – Thi
Vai Port, while limiting the number of foreign companies that can transport domestic
goods to the Cai Mep – Thi Vai Port.
The
ministry has, along with the Japan International Co-operation, proposed the
revamping of the national seaport authority, giving it new responsibilities
and functions.
One
major change would be to give the authority an investment management
function, based on real market demand as well as the operational capacities
of seaports.
The
authority will be allowed to collect import and export taxes due on cargo
shipments, saving companies a lot of time.
JICA,
which has acted as a consultant for the No. 5 seaport system, has suggested
the use of smaller ships or boats to transport goods from HCM City to Cai Mep
– Thi Vai in a short time to increase the volume of goods that the system
handles.
Over
the long term, road connections between HCM City and Cai Mep – Thi Vai hve to
be improved and all port construction in HCM City stopped, it has advised.
Attracting
more industrial investment into Ba Ria – Vung Tau, where the Cai Mep – Thi
Vai Port s located, should be another, it has said.
It has
also proposed the establishment of a port authority at the soonest.
The
Cai Mep – Thi Vai Port should work closely with cargo shipment companies, and
take measures to cut costs and increase shipments, JICA has said.
It has
said that the authority collaborates with other agencies on the construction
of inter-port roads, development of logistics centres, and building more
wharves in Mekong Delta provinces to attract more goods for to the nation's
port styem.
JICA
even suggested that the authority pays to have boats transport goods from
neighbouring provinces to the port.
The
No. 5 seaport system includes the Sai Gon, Nha Be, Cat Lai and Hiep Phuoc
ports in HCM City, including; the Go Dau C, Phu My, Cai Mep, Vung Tau and
Song Dinh ports in Ba Ria – Vung Tau; and the Phu Huu, Ong Keo, Go Dau A, B
and Phuoc An ports in Dong Nai.
Source:
VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
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Thứ Sáu, 24 tháng 1, 2014
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