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BUSINESS IN BRIEF 26/1
Navibank
gets new name
The
Nam Viet Commercial Joint Stock Bank (Navibank) has been known as National
Citizen Commercial Joint Stock Bank from January 22.
State
Bank of Vietnam (SBV) decided to rename the bank, which started its
restructuring in 2012.
Last
year, Dai Tin Bank (TrustBank) was renamed Vietnam Construction Bank after it
implemented its restructuring plan.-
HNXFF
basket reviewed
The
HNXFF-Index, which was launched at the beginning of December 2012, now has
375 stocks with a minimum free-float rate of 5 per cent after a review in
January.
In the
previous basket, four stocks had been delisted and one added.
After
the latest review, no stocks were removed from the basket for failing to have
a minimum free-float rate of 5 per cent.
The
basket is reviewed every quarter.
Ho Chi
Minh Ciy’s investment increased greatly in capital and the number of
registered businesses in the first month of 2014, according to the municipal
Department of Planning and Investment.
The
city has attracted a combined investment 12.072 trillion VND (567 million
USD) from 1,415 new businesses and 2,680 existing businesses registering additional
capital.
As of
January 20, the city has licensed 15 new foreign investment projects with a
total fund of 19.9 million USD, up 51.5 percent year-on-year.
The
city is carrying out 24 official development assistance funded projects,
worth more than 125.9 trillion VND (5.92 billion USD).
Meanwhile,
the number of dissolved companies has decreased by 5 percent from 2013 to
162, equal to 11.5 percent of new businesses established.-
Draft
plan on derivatives submitted
The
draft decree about the derivatives market was submitted to the Government for
review and approval, according to a representative from the State Securities
Commission.
He
said that the first derivatives transactions are expected to be conducted in
The
establishment of the derivatives market is in line with the stock market
development and restructuring strategy, he added.
Dong
Nai attracts FDI in support industries
The
southern
The
figure is 1.6 billion USD lower than the 2013 level, the department said,
citing a more selective project strategy by the province, which focuses on
the high technology and support industry, environmentally friendly projects,
agricultural projects and infrastructure development.
Provincial
authorities have set green production targets and committed to using less
energy and more efficiently deploying employees.
As of
January 20, the province attracted a combined foreign direct investment of
140 million USD, consisting of 70 million USD in four new businesses and 70
million USD in 17 existing businesses registering additional capital.-
Tan
Tao back on VN30-Index
The
list of stocks in the southern bourse's VN30-Index were recently updated with
Tan Tao Group (ITA) replacing Thanh Thanh Cong Tay Ninh Sugar Company (SBT).
ITA
had been removed from the VN30-Index a year ago.
Towards
the end of last year, the trading volume of ITA exceeded 1 billion shares,
with a free-float rate of more than 50 per cent and profits being reported,
helping the code to return to the blue chip group. The market price of ITA
was VND7,300 (US$0.34) after Thursday's trading, about 40 per cent higher
than at the beginning of 2013.
The Ha
Noi Stock Exchange also updated its HNX30-Index stocks.
Apartment
complex roof complete
The
Phuc Ha Investment, Trading and Infrastructure Development Company has
completed constructing the roof of the Nam Xa La apartment complex in Ha
Noi's Ha Dong District.
Covering
an area of 7,396 square metres, it comprises two 30-storey buildings, two levels
of basement and supermarkets. The apartments, covering an area of 70.4-94
square metres, will cost VND13 million per sq.m, including VAT.
Home
buyers will also enjoy loans up to 70 per cent of the apartment price from
the Bank for Development and Investment of Viet Nam (BIDV) at an interest
rate of 9 per cent, repayable within 15 years.
Hoang
Mai issues zoning plan
The
municipal People's Committee has issued plans on land allocation in Hoang Mai
District by 2020.
Under
the plan, the district's agricultural area will account for 13 per cent, or
527ha, while non-agricultural land will account for 87 per cent, or 3,495ha.
Unused
land will account for 0.24 per cent, or 9.53ha, of the total land. During
2011-15, the district will increase the non-agricultural area, while reducing
agricultural land.
Social
housing offered in Gia Lam
Viglacera
Corporation will continue to offer more than 2,000 social housing (low-cost)
apartments in the urban area of Dang Xa II in Ha Noi's Gia Lam District.
Each
apartment covers an area of 50-70square metres and aims to meet the demand
from low-income earners, who faced difficulties in finding houses in the
city. The project is scheduled to be completed in the last quarter of 2014.
So
far, the corporation has handed over 100 apartments to customers in the area.
Dang
Xa covers an area of 68.67ha to the northeast of the capital and is about 12
kilometres from the centre.
It
includes 17.3ha of housing land, 13ha of low-cost housing land, 4.68ha of
public land and land for office buildings, as well as 25.55ha for green
trees, parking and roads.
HCMC
hotel rates to stay the same
Hotel
rates in
According
to the city's hotel association, the supply and demand for high-class
accommodation will be balanced this year. No dramatic changes in the room
occupation rates are likely, despite the fact that three new five-star hotels
will open later this year, it added.
The
city has 13 five-star hotels with 4,000 rooms. The average occupancy rate in
2013 was 70 per cent, around the level seen in 2012.
The
additional supply is expected to keep pace with the growing demand.
The
municipal Department of Culture, Sports and Tourism agreed with that
assessment, it said last year.
The
average room rate was around US$95.5 per night per room, up 3 per cent from
the previous year, which was acceptable as there was a 14.5 per cent increase
in capacity.
In the
three - to five-star hotel categories, around 1,606 rooms came into the market.
The five-star segment added 330 rooms, while the four-star category gained
491 rooms. The three-star hotels added 785 rooms last year.
The
number of international tourists visiting the city reached 4.1 million last
year. The expectation is that the number will climb to 4.4 million this year.
SBV
can now import unrefined gold duty-free
Prime
Minister Nguyen Tan Dung has signed a decision permitting the State Bank of
Viet Nam (SBV) to import and export unrefined gold without paying any duty.
The
decision, which will come to effect on March 15, 2014, is expected to
facilitate SBV in the export and import of unrefined gold to produce gold
bars for the purpose of stabilising the domestic gold market.
The
city authorities have reported initial achievements in the new year with
significant growth rates from the city's business and service sectors in the
first month of 2014.
The
city attained industrial production growth rate of 1.4 per cent compared with
the same period last year, according to the director of
It
included a 25.5 per cent growth of the mechanics sector, a 3.8 per cent
growth of the food processing industry and 0.6 per cent growth of the
chemicals, pharmaceutical and rubber sector.
Businesses
in the city have provided sufficient goods for the Tet markets, with reserves
of goods valued at VND7.58 trillion (nearly US$360 million), a year-on-year
increase of 40.5 per cent.
Companies
under the city's price stabilisation programme have supplied higher volumes
of goods for the Tet markets, up by 69.4 per cent compared with the same
period in 2013, with several kinds of goods meeting 30-60 per cent of the
demand in the Tet markets in
Total
retail sales and service turnover in January were estimated at VND59.5
trillion, a 6.7 per cent increase compared with December 2013 and an increase
of 18.2 per cent compared with the same period last year.
Re
said the January's CPI rose by 0.4 per cent compared with December and by
0.44 per cent over the same period of 2013.
Prices
of eight groups of goods increased slightly in January, with fees for
accommodations, electricity, water and fuels, construction materials and
transport services fees rising the most.
Prices
of food rose by 0.33 per cent and foodstuffs by 0.19 per cent; while medical
service costs and pharmaceutical prices fell slightly.
January's
exports estimated at nearly $2.4 billion, down by 2.1 per cent over December
and 10.3 per cent compared with the same period of 2013. Major decreases were
reported for crude oil and coffee, computers and electronic components,
footwear and garments.
The
city authority granted licences to 1,415 local businesses with total
registered capital of over VND7.1 trillion, an increase of 11 per cent in
number of licences and 54 per cent in registered capital.
Re
said in February the city authorities would focus on inspection and
management of prices of goods under the price stabilisation programme, and at
the same time to boost trade promotion programmes in the local market and
provide goods to the Tet market.
The
city will also create favourable conditions to help local enterprises to
boost production, promote business and expand overseas markets for their
goods and products.
CPI
rises slightly on low purchasing power
The
General Statistics Office has reported
The
relatively modest rise is attributable to the price stabilisation programmes
localities have applied to essential commodities ahead of the Lunar New Year
(Tet) Festival. Market purchasing power also remains weak.
The
1.22% increase in transport costs was the month’s most dramatic, followed by
housing and construction materials (1.02%); garments, hats, and footwear
(0.89%); alcohol and cigarettes (0.83%); restaurants (0.77%), utensils
(0.39%); culture, entertainment, and tourism (0.21%); pharmaceuticals and
medical services (0.17%); and education (0.01%).
Petroleum
rose 0.86% thanks to the December 18 price adjustment of 2.38%.
The
monthly CPI edged up 0.7% in Hanoi, 0.4% in HCM City, 0.43% in Thai Nguyen,
0.67% in Haiphong, 0.92% in Thua Thien-Hue, 0.74% in Danang, 0.86% in Khanh
Hoa, 1.29% in Gia Lai, 0.4% in Vinh Long, and 0.83% in Can Tho.
The
GSO reported January’s gold index fell 1.82% from December levels and 25.74%
on an annual basis. The dollar index was down 0.06% compared to the previous
month and up 1.03% higher than the same period last year.
Vice
Chairman of the municipal People’s Committee Le Manh Ha made the remark at a
reception for visiting Mayor of Nemuro city Shunsuke Hasegawa on January 24.
At the
reception, Ha said
He
voiced his hope that both sides’ ties will be further boosted this year
through delegation exchanges, investment promotion activities and investment
collaboration between their enterprises.
For
his part, Shunsuke said his delegation’s trip aims to find cooperation
opportunities with
The
Japanese mayor added his city is in an advantageous position to exploit
aquatic resources, especially sword mackerel, noting that around 400 tonnes
of the fish have been exported to
He
also hoped for the Vietnamese city’s support to enhance the two sides’
collaboration in the fields of culture and human resources in the coming
time.
Dong
Nai FDI favours high-tech, support industries
Dong
Nai is expecting US$700–900 million in foreign direct investment (FDI)
capital over 2014, much lower than the US$1.6 billion total seen last year.
Provincial
Department of Planning and Investment Director Bo Ngoc Thu said the province
will focus its resources on technologically advanced, environmentally
friendly projects in support industries, agriculture, services, and
infrastructure.
Thu
explained its lower FDI target reflects the labour costs saved by technology.
Yet, the capital goal does not include FDI projects applying to extend their
capital in 2014.
Dong
Nai plans to encourage the use of environmentally friendly technologies and
shift industries away from labour intensive means of production to
modernised, technologically advanced industrial structures.
Authorities
will stimulate green agricultural development projects incorporating
bio-technology and GAP production processes.
Mai
Van Nhon, Deputy Head of Dong Nai’s Industrial Zone Managing Board, said the
province has already recorded US$140 million in FDI capital during the first
20 days of January. The figure includes four new projects worth US$70 million
and 17 existing projects registering US$70 million in additional capital.
The
projects, all of which apply advanced and environmentally friendly
technology, follow provincial guidelines.
Exports
down 11.5% in January
The
General Statistics Office (GSO) has announced Vietnamese exports fell 11.5%
in January to an estimated US$10.3 billion.
Domestic
businesses contributed US$3.5 billion, down 17.2% from the previous month’s
figure and 13.8% compared to the same period last year.
The
foreign direct investment (FDI) sector, including crude oil, accounted for
US$6.8 billion of the total, down 8.2% monthly and 9.2% in annual terms.
The
declines are credited to value slides seen in export commodities such as
computers and components (down 16.3%), seafood (18.4%), crude oil (21.4%),
wood and timber products (21.6%), steel (31.7%), rubber (35.5%) and coal
(47%).
Value
declines in annual terms beset important export products including garments,
telephones and components, computers and components, crude oil, machinery and
equipment, tools, transportation, and coffee.
January’s
imports are estimated at US$10.4 billion, 14.6% less than December and 1.9%
lower than the same period last year. FDI businesses bought US$5.8 billion of
the total, down 7.9% monthly and 1.5% annually, while the domestic sector
purchased US$4.6 billion, down 21.9% monthly and 2.3% annually.
January’s
trade deficit is estimated at US$100 million.
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
Infrastructure
facilitates housing projects in eastern Saigon
Transport
infrastructure is one of the main factors helping property enterprises to
market their projects, and projects in eastern
Among
projects in the area, there has been at least one enterprise - Khang Dien
House Trading and Investment Joint Stock Company - preparing to offer
products for sale after the first phase of HCMC-Long Thanh-Dau Giay
Expressway and the belt road opened to traffic.
According
to Khang Dien, around 160 adjoining houses of Mega Residence located near the
two roads will be offered for sale early next month at a price starting from
VND13.5 million per square meter, or some VND1.9 billion per unit.
With
such price equivalent to that of an apartment, the investor expects that the
project will attract many buyers in the coming time now that the traveling
time between the site and the city center has been shortened owing to the
expressway.
Compared
to other areas, property projects in the city’s eastern area comprising
districts 2, 9 and Thu Duc are more advantageous as many infrastructure
projects have been completed in the past time.
Saigon
2 Bridge connecting Binh Thanh District and District 2 opened to traffic last
year after around one year and a half of construction. The bridge facilitates
not only transport to the city downtown but also projects located along Hanoi
Highway.
Meanwhile,
the opening of the belt road and recently HCMC-Long Thanh-Dau Giay Expressway
gives a new appearance to District 9 and neighboring areas along the
expressway.
A
market research of Savills Vietnam indicated that the total number of villas
and adjoining houses sold last year was around 200 units and the number of
land lot transactions increased by 43%.
According
to Savills Vietnam, the environment around projects and the reputations of
investors are factors crucial to the sale of housing projects. Land lots
continue to be favored due to their lower price and flexibility in
construction.
Viettel
Post hits award for sustainable development
The
military-run Viettel Post Joint Stock Corporation has just received a
prestigious award.
The
corporation on January 16 was listed among top 20 out of 143 brands and
services with sustainable development in 2013 in the “Vietnam’s products and
brands with sustainable development” programme organised for the first time
by Vietnam Association for Small- and Medium-sized Enterprises.
Viettel
Post is also the sole express delivery service supplier to be extolled at
this programme, which is aimed to boost the government “Vietnamese people use
Vietnamese products” initiative having been deployed nationwide over the past
years.
Viettel
Post has been highly valued with five criteria at this programme, including
highly competitive service, market share with high growth, excellent quality,
fulfillment of tax obligations, and reaping many awards over the past years.
At
present, ViettelPost is Vietnam’s second largest express delivery service
provider who is also the country’s first investor to invest overseas in the
sector of express delivery.
Every
year, the corporation witnesses a revenue growth rate of 125-135 per cent,
while fulfilling all tax obligations, and ensuring incomes for more than
2,000 employees.
In 2013,
despite economic woes, Viettel Post officially joined Vietnam’s club of
enterprises with revenue of VND1 trillion ($48 million) on November 28, or 17
days earlier than the set target for 2013.
The
corporation's express delivery service was recently honoured at the Vietnam's
Most Popular Consumer Services programme jointly organised by Hanoi Municipal
People's Committee, the city's Fatherland Front Committee, and Hanoi
Television. Viettel Post was also listed in the Top 200 at the Vietnam's
Golden Star Awards organised annually by Vietnam Youth Union and Vietnam
Young Entrepreneurs Association to extol local brand names and enterprises.
Euromoney
names Hoa Sen best managed metals group in Asia
Leading
international finance publication Euromoney has picked Vietnam’s Hoa Sen
Group as the best managed company in Asia in the metals and mining sector for
2014.
The
decision made Hoa Sen the first Vietnamese company to ever win the award.
Marcus
Langston, regional head of Euromoney Asia, presented the award to Hoa Sen
chairman Le Phuoc Vu during the company’s annual general meeting on January
8, two days before the winner was announced globally.
Vu
remarked on the occasion, “It seems that the award has come from the sky, we
are so surprised to know this. But I think we deserve this win after our
continual efforts over many years to pursue good governance, transparency and
a clear strategy.”
Langston
said his presence was aimed at “recognising Hoa Sen’s great achievements in
the 2014 poll of equity analysts. This is an outstanding achievement in
management strategy and corporate governance.”
“Hoa
Sen’s pioneering of advanced technologies has maximised value for
shareholders, employees and society, and it is set to achieve its vision of
becoming a leading group in Vietnam and throughout Asia,” he added.
Langston’s
analysts of the poll looked at a number of factors, including management
accessibility and corporate governance procedures.
“Analysts
praised Hoa Sen for its leading role in promoting transparent communication
with investors as well as its clear strategy and good visibility. Analysts
also noted that Hoa Sen senior management continues to demonstrate prudent
gearing, transparency, and a clear articulation of strategy,” Langston
continued.
He
added that Euromoney received replies from 130 analysts who nominated 207
companies, with Hoa Sen coming in an impressive first.
Hoa
Sen reported impressive growth in after-tax profits, 58 per cent, for the
fiscal year 2012-2013 despite many challenges facing the domestic steel
sector. It announced at the shareholders’ meeting that profits topped VND581
billion ($27.67 million).
In 2013
the group posted total sales of more than 634,000 tonnes of steel products
earning revenues of over VND11.7 trillion ($577 million). These figures
jumped 32 and 17 per cent on-year. About 280,000 tonnes were shipped to 40
countries and territories, garnering almost $252 million.
Vu
said that in the coming time Hoa Sen would continue to expand into regional
countries by opening more plants and representative offices in South East
Asia.
For
2014, Hoa Sen expects revenues of VND14 trillion ($666.7 million) with
after-tax profits of VND600 billion ($28.6 million).
FPT
Software revenue victory comes with ambitious goals
FPT
Software has set a revenue goal of $130 million for 2014, a 30 per cent
increase against 2013.
Speaking
at the company’s 15th anniversary on January 13, general director Nguyen
Thanh Lam said that in 2013, the company $100 million in revenue and employed
a total of 5,000 workers.
FPT
Software plans to reach $200 million and 10,000 employees in 2016, said Lam.
Over
the past 10 years, the company saw an average growth rate of 49 per cent per
year in terms of revenue and 43 per cent in profit. The company has branches
and representative offices in 8 countries and is now the leading provider of
software outsourcing services in Vietnam and has 219 partners in different
countries and territories around the world.
Deputy
Minister of Information and Communications Nguyen Minh Hong said that the
company’s results for 2013 makes it one of the biggest software firms in
South East Asia and noted its important role in the development of Vietnam’s
software industry.
“However,
Vietnam lacks more companies like FPT Software of a similar business scale to
fully maximise on Vietnam’s software opportunities and make the country more
competitive on a global scale,” he added.
From
the side of state management, he said the Ministry of Information and
Communications would establish appropriate favourable mechanisms and policies
for the further development of the sector to help Vietnamese enterprises to
participate in larger projects in the near future.
ASEAN
– a lucrative market for Vietnamese exporters
A
trade promotion seminar in Hanoi on December 19 heard Vietnam-ASEAN trade is
expected to reach US$75 billion this year, including US$35 billion worth of
Vietnamese exports.
However,
Le Hoang Oanh, Deputy Head of the Ministry of Industry and Trade (MoIT)’s
Trade Promotion Department, said the total figure is not in commensurate with
both sides’ potential.
MoIT
Asia-Pacific Market Department Head Pham Thi Hong Thanh concurred, noting
Vietnam’s trade agreements with ASEAN members—including the ASEAN Trade in
Goods Agreement (ATIGA) and the Protocol of Common Effective Preferential
Tariffs—offer local exporters numerous opportunities.
These
opportunities are only broadened by ASEAN’s network of trade partnerships
with China, the Republic of Korea, Japan, India, Australia, and New Zealand.
Seminar
delegates urged Vietnamese businesses to upgrade their technology, diversify
products, and monitor and respond to market trends. Competitiveness needs
improvement ahead of the imminent establishment of the ASEAN Community.
Nguyen
Manh Dung, a representative from the Department of Processing and Trade for
Agro-Forestry-Fisheries and Salt, said local producers and exporters should
ensure their post-harvest and processing technologies and methodologies meet
international food hygiene and safety standards.
ASEAN
is Vietnam’s third largest export market behind the US and the European Union
(EU). Vietnam has committed itself to trade liberalisation via free trade
agreements in ASEAN and ASEAN Plus. The removal of tariffs and the imposition
of quality and product origin regulations have proved mixed blessings for
local businesses.
Trade
agreements obligate approximately 90% of existing tariffs must drop to 0% by
2015. Most of the remainder will disappear in the following three years.
Vietnamese small and medium-sized businesses will find it especially
important to update their market information and identify advantageous
footholds before tariff reductions take effect.
Crude
farm produce, seafood free from VAT
Unprocessed
or semi-processed products of the local farming, husbandry and fishery
industries will not be subject to value added tax (VAT), according to a new
document issued by the Ministry of Finance.
Over
the past time, agriculture and seafood associations have constantly asked for
exemption of VAT to help farmers and traders enhance competitiveness in the
market besides eliminating bogus exporters whose existence depends on VAT
refund.
The
finance ministry therefore has recently sent Dispatch 385/BTC-CST to
centrally-governed cities and provinces on exempting VAT for local
enterprises. The document came out after the Government in late December had
issued Decree 209/2013/ND-CP guiding the implementation of the VAT Law.
The
new regulation, however, is still vague for certain traders.
The
director of a coffee trading and exporting company said the content of the
new document can be interpreted that farmers will not have to pay VAT when selling
crude coffee, pepper and cashew to enterprises.
However,
according to this director, what should be done now is to define the term
“crude farm produce” to make clear whether dried coffee bean is crude or not.
“Personally,
I think Dispatch 385 is still vague, so I have asked tax authorities about
the issue but was told to wait for the next instruction,” said the coffee
trader who asked not to be named.
Meanwhile,
Dang Hoang Giang, general secretary of the Vietnam Cashew Association
(Vinacas), said he understood that crude and semi-processed items will not be
subject to VAT. This means such products as crude cashew and peeled cashew
will not be taxed but other processed products with added values will be
levied with a 5% VAT rate, Giang stated.
Giang
noted that the removal of VAT imposed on unprocessed and semi-processed farm
produce and seafood items will help companies and State authorities save time
and cut costs. It is because local traders have had to pay VAT before
exporting products and they will have the tax refunded later, he explained.
Under
the new regulation, both enterprises and the State need not spend time doing
procedures on VAT payment and refund, he added.
As per
the current rule, agricultural and fishery products for exports are all
exempt from VAT but businesses have to pay the tax in advance and will be
refunded after sending their products overseas.
According
to the Vietnam Coffee and Cocoa Association (Vicofa), the payment in advance
and VAT refund have created loopholes for several swindlers to set up bogus
farm produce exporting enterprises to benefit from the VAT refund.
In
particular, at a meeting with Vicofa in late 2013, an official of the
industry-trade department of the Central Highlands province of Daklak
informed that a number of coffee exporting firms only exist on paper and live
on VAT refund. Local tax authorities when looking for the business address of
an enterprise found out that the firm does not exist and its office is a
motorbike cleaning store only.
The
company had got the VAT refund by using false receipts and invoices despite
having no export activities, the official reported.
BIDV
cautious in foreign partner selection
Bank
for Investment and Development of Vietnam (BIDV) is prudently looking for
foreign strategic partners after getting approval to list on the Hochiminh
Stock Exchange (HOSE).
“We
have received many proposals from investors from the U.S., Europe and Asia
and are negotiating with them in a prudent way. Normally, it takes a bank
from nine to 12 months to shorten the list and select foreign strategic
partners,” Tran Phuong, BIDV deputy general director, said at the press
briefing on Monday.
BIDV
will set aside around 30% of shares for foreign investors, including 20% for
foreign strategic partners. However, Phuong declined to disclose the names of
foreign investors interested in BIDV.
BIDV
will begin trading over 2.8 billion shares on HOSE on January 24 at the
reference price of VND18,700 each.
As of
the end of 2013, the bank’s total assets reached VND550 trillion, up 12%
year-on-year. BIDV is among leading commercial joint stock banks in the
country in terms of assets.
Capital
flows to river project
Investment
capital for the key national-level project to construct a waterway passage
for heavyweight vessels to the Hau River in the Mekong Delta’s Tra Vinh
province has been finalised.
After
several years of discussions, the National Assembly Standing Committee last
week issued a resolution allocating VND6.1 trillion ($290.47 million) as
government bond-based capital for the first stage of this VND9.781 trillion
($465.76 million) project.
The
project initially received government bond-based investment worth VND929.3
billion ($44.25 million) for the 2009-2010 period. However, work was delayed
in 2010 due to a lack of capital.
Expected
to be completed by 2017, this 46.5-kilometre project running through Tra
Vinh’s Duyen Hai and Tra Cu districts will allow 10,000-20,000 dead weight
tonnage ships to travel in and out of ports on the Hau River.
“The
project is crucial and a life-line waterway for economic development of the
whole Mekong Delta region,” said Minister of Planning and Investment Bui
Quang Vinh, who last week asked the committee to allocate funding to the
project.
“The
project must be done as soon as possible in order to facilitate the Mekong
Delta region’s socio-economic development and attract more investment,” said
the National Assembly’s Vice Chairwoman Tong Thi Phong.
At
present, the region’s import-export cargo volume is around 15 million tonnes
per year. The region’s two largest seaports, Can Tho and Cai Cui are only
capable of accommodating vessels of 3,000-5,000 DWT, leaving the region’s
river and seaport systems only capable of handling 20 per cent of the region’s
cargo volume.
Up to
80 per cent of the region’s exported and imported cargo must go through the
ports of Ho Chi Minh City and Ba Ria-Vung Tau province, causing traffic
gridlock in these areas. Moreover, the transport distances results in an
average $10 increase on unloading costs for each tonne of goods.
“It is
roughly estimated that if cargo is transported directly on the Hau River, we
can save about VND10 trillion ($476.2 million) each year until 2020,” Vinh
said. “Construction of this project is also vital to the operation of the
coal-fired Duyen Hai power centre, because without it, the centre’s port will
not be able to receive coal.”
However,
some members from the National Assembly’s Finance and Budget Committee who
disagreed with the project argued that the project was ineffective because it
did not link with the region’s seaport, waterway and expressway planning, and
because its investment capital had tripled against the initial estimates.
The
project was first approved by the Ministry of Transport (MoT) in November
2007, with the total investment capital of nearly VND3.15 trillion ($150
million). However, in August 2013, the MoT adjusted the project’s details and
investment fund, which soared to VND9.781 trillion (over $465.76 million).
Japan’s investment consultancy joint venture PortCoast-Nippon Koei made the
budget adjustments.
The
MoT in late December 2013 approved the project’s environmental impact
assessment report, affirming that “the project’s implementation will not
adversely affect the environment.”
Vietnam
halts chicken imports from South Korea
Vietnam
has halted chicken imports from South Korea on fear of spreading poultry
epidemic in that country, said an official with the Veterinary Agency Zone 6.
Nguyen
Xuan Binh, director of the agency, confirmed to the Daily on Monday on the
import suspension decision by the agriculture ministry’s Animal Health
Department to prevent bird flu from entering Vietnam.
Imports
of whole frozen chickens from South Korea for years have been safeguarded
against diseases, as chickens bound for Vietnam were raised in safe areas,
and each chicken also came with a safety certificate. However, as the
epidemic on poultry in South Korea has spread to several localities there,
the import ban for a certain period has been decided, Binh said.
The
Daily, however, still observed many venues in HCMC selling frozen chickens
imported from South Korea. Explaining this, Binh said those products might be
from shipments imported into Vietnam prior to the ban.
The
majority of whole frozen chickens imported into Vietnam are from South Korea.
However, Binh could not provide the exact amount of frozen chickens imported
into Vietnam last year, saying a sizable amount is also imported through Hai
Phong Port in the north.
In
HCMC alone, the city’s Veterinary Agency issues permits for some 2,000 tons
of imported meat for sales on the market, with around 50% being poultry meat,
especially chicken.
While
traders boost imports of cattle and poultry products, the local husbandry
industry is incurring huge losses due to a sharp price fall.
On the
domestic market, the price of white-feather chickens has tumbled to
VND15,000-17,000 a kilo compared to VND30,000 a kilo three weeks ago. The
production costs, according to experts, amount to around VND30,000 a kilo.
According
to the Husbandry Department under the agriculture ministry, the total meat
output last year was some 4.3 million tons, rising 1.49% against 2012. This
amount included 3.2 million tons of live pigs, 747,000 tons of live poultry,
and some 370,000 tons of live buffaloes and cows.
Source:
VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
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Thứ Bảy, 25 tháng 1, 2014
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