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BUSINESS IN BRIEF 27/1
Date
set for opening of first McDonald’s restaurant
McDonald’s
first restaurant in Vietnam called McDonald’s Da Kao will open on February 8
at 2-6 Bis Dien Bien Phu Street, Da Kao Ward, HCMC’s District 1.
According
to Le Ha My Tram representing McDonald’s
Nearly
50 supervisors and waiters of McDonald’s
According
to Tram, to have a smooth operation, the restaurant needs around 150
employees, not to mention office workers. After the first restaurant opens,
employees for the second one will be recruited.
The
second McDonald’s restaurant is still under construction and its opening date
has not been announced.
FPT
wins financial management system project in Cambodia
A
subsidiary of
The
FPT IS and the Cambodian Ministry of Economy and Finance on January 23
kick-started work of the project, which is expected to help Cambodia further
enhance its financial and budget management capacity.
As the
main contractor, the Vietnamese company will get involved in launching the
system in 31 central and local units of the Cambodian Treasury within 26
months, starting from January 2014.
FPT IS
General Director Duong Dung Trieu said before FMIS, his company was
undertaking similar projects for the Vietnam Tax General Department and the
State Bank of Vietnam (SBV).
FPI IS
has aimed to earn 200 million USD in revenue from foreign markets by 2018,
focusing on those in the
Dong
Nai targets infrastructure
The
southern
The
statement was made by provincial People's Committee chairman, Dinh Quoc
In
spite of the province's encouraging results in attracting foreign investment
in recent years, the lack of adequate infrastructure remains a problem, local
authorities said, adding that a paucity of investment is to blame for the
poor infrastructure.
The
Dau tu (Vietnam Investment Review) newspaper quoted the vice chairwoman of
the French-owned Scavi Group, Tran Thi Moc Lan, as saying that Dong Nai's
infrastructure, particularly transport, has lagged demand.
"It
often takes four hours to reach
Yamaguchi
Kimio, chairman of the Japanese Business Association in
In
order to deal with the problem, Dong Nai is undertaking efforts to attract
investment for infrastructure development, besides receiving funds from the
provincial budget, the Department of Planning and Investment director, Bo
Ngoc Thu, said.
Dong
Nai has set a goal of attracting $700-$900 million in foreign direct investment
(FDI) this year, with a focus on infrastructure construction, high technology
products, ancillary industries and the services sector, she added.
Last
year, the province attracted $1.35 billion in FDI, 35 per cent higher than
the annual target and 20 per cent higher from 2012, according to the
department.
It
licensed 67 new projects with a total registered capital of $651.3 million,
while 68 existing projects were allowed to increase investment by a
cumulative $700 million.
The
FDI disbursement in 2013 increased to $970 million, 7.8 per cent higher than
the annual target, and raised the province's cumulative disbursements to over
$13 billion, or 67.6 per cent of the total registered investment.
Increased
investment promotion activities in
By
December, the province had 1,059 approved projects worth $19.5 billion, it
said.
Binh
Dinh plans to attract $400m in foreign investment
The
central
The
Binh Dinh online newspaper said the province hopes to attract a total direct
investment of VND8 trillion (about US$400 million).
The
province implemented several investment promotion schemes last year,
particularly in
Binh
Dinh's investment promotion activities have focused on attracting high
technology and environmentally friendly projects.
The
province has also expressed interest in attracting small and medium investors
possessing high and clean technology to its industrial zones, as well as for
the development of local ancillary industries.
MoIT
launches index to monitor co-operation trends
The
Ministry of Industry and Trade announced the launch of the Viet Nam
International Linkages index 1995-2012 (VInterLink) to review the trends in
co-operation with nine strategic partners.
The
co-operation trends will be monitored in the fields of trade, investment,
education, tourism and official development assistance.
Thai
Son of the National Committee for the International Economic Co-operation
Office (NIDEC) said that between 1995 and 2012, the partnership with
That
was followed by the partnership with
The new
index is the outcome of a project aimed at enhancing capacity building and
co-ordinating global economic integration implemented by NIDEC and the
ministry.
The
annual ProPak Viet
ProPak
is a processing, filling and packaging exhibition in which processing
machinery and technologies for food packaging, beverage bottling, printing
and labelling, making paper and corrugated box, bagging and storage, and
post-harvest activities will be on display.
The
exhibition will also feature seminars titled "Improving packaging design
with New Product Development techniques", and "3D Printing &
Reverse Engineering Applications for Agile Development in Plastic
Industry".
The
Viet Nam Association of Food Science and Technology will organise a
conference titled "Food Engineering– Innovations & Advanced
Processing Techniques" and the Viet Nam Association of Testing
Laboratories, one on "Food Testing for Quality Assurance". —
SMEs
need stronger legal skills
Small
and medium enterprises (SME) in
Le Anh
Van, deputy director of the Centre for Legal Assistance and Human Resource Development
under the Viet Nam SMEs Association, said at a recent conference that this
would increase the competitiveness of Vietnamese enterprises.
Van
said that the number of enterprises in the country surged sharply after the
introduction of the Enterprises Law in 2005 but their quality and
competitiveness were still poor, partly because of insufficient legal
understanding and low management skills.
At
present, small and medium enterprises (SMEs) account for over 95 per cent of
total enterprises in
They
usually ask for legal advice only when they get involved in lawsuits or
conflicts, Van said, adding that in such cases, the enterprise owners were
very worried and confused.
He
said that because of limited legal understanding, Vietnamese enterprises
usually felt less confident in negotiating international trade contracts and
this sometimes ended up in accepting unfavourable conditions for themselves.
There
were also cases where Vietnamese enterprises suffered losses or breached
contracts because they did not know the basic principles of who can sign
contracts to make them legal.
"It's
time to add more conditions for people who want to become a company director
or legal representative of a company," Van said, adding that such
candidates must be required to undergo a company management training course
or a course on the Enterprise Law.
Lecturer
Phan Thi Thanh Thuy of the Ha Noi National University's Law Department said
many enterprises did not pay proper attention to legal advice and legal
information. This exposed them to higher risks, especially as
For
example, a company that creates a new model of its product but does not
register its intellectual property with authorised agencies faced the risk of
having it stolen by other companies, she said.
Lawyer
Pham Hong Hai, who is also an assistant professor, said that although
Meanwhile,
in many countries, most enterprises consulted regularly with lawyers or law
firms, as did foreign companies operating in
He
said that it was necessary to raise awareness of enterprises about the role
of lawyers and the value of their advice.
Moreover,
the bar should more actively join legal aid programmes for enterprises and
advocate for the establishment of legal aid funds in cities and provinces to
strengthen connections between entrepreneurs and lawyers, he said.
Mekong
Delta provinces have been creating all favourable conditions to lure as many
investment projects as possible from both foreign and domestic sectors, said
an official from the Steering Committee for the Southwest Region.
According
to Nguyen Quang Phong, the Committee’s deputy head, the regional provinces
have been speeding up administrative reform to shorten the process of
licensing projects, setting up information centres that provide investors
with data on the market, procedures and trade promotion policies in parallel
with paying heed to train high-quality human resources.
In
addition, the infrastructure system and urbanisation have been propelled
along with the connectivity of regional provinces to
Presently,
a string of major works have been brought into operation, such as Cai Cui
seaport (Ca Mau province), Tra Noc airport (Can Tho city) and Phu Quoc
airport (Kien Giang).
Three
power centres in O Mon, Ca Mau and Kien Luong with a total capacity of around
9,000 MW to 9,400 MW, and the road network linking the region with the whole
country such as
The
committee is proposing a particular policy to attract investment in the
region, with priority given to the upgrade of seaports and airports.
Mekong
Delta provinces now have 802 foreign investment projects with a total
registered capital of 11 billion USD. Long An gets the most with 3.5 billion
USD in capital, followed by Kien Giang with 3.1 billion USD and Tien Giang,
1.1 billion USD, according to statistics from the Ministry of Planning and
Investment.
However,
the ministry said the above mentioned outcome is still far from the region’s
potential, blaming asynchronous infrastructure, an unqualified workforce and
an unattractive investment environment.-
Big
tuna catch for Phu Yen fishermen
First
offshore fishing vessels of this year’s fishing season anchored at Ward 6
port, Tuy Hoa city of the central Phu Yen province on January 22, bringing
back tunas weighing 30-50 kilograms each for export and domestic use.
By
noon on January 23, eight vessels had returned, five of which had 1.7-3
million tonnes of tuna.
Chairman
of the Ward 6 fishing trade union Phan Thuan said despite the decreased price
this year, ships with output of at least 1.7 tonnes will enjoy a profit.
Thuan
said although tuna price and output was lower this year, fishermen still felt
encouraged with prompt support from the State, adding that most of the ships
are now preparing to return to the sea after the joyful Tet holiday.
Tariff
exempted for central bank's material gold
PM
Nguyen Tan Dung has signed a Decision to exempt tariff for material gold
imported and exported by the State Bank of Viet Nam (SBV) as from March 15,
2014.
The
Decision was made to meet the demand for exporting gold bar overseas and
importing material gold at international standard of the SBV.
It is
expected to make it easier for the SBV in material gold import and export to
produce gold bar to stabilize the domestic gold market.
Earlier,
Decree No. 24/2012/NĐ-CP on the management of gold trading stipulates that
there will be a government monopoly of bullion production and of the import
and export of raw materials for gold bar production.
Flashy
fashion discounts with high price tags
As Tet
shopping picks up, several clothing stores in
Many
shops along Chua Boc, Pham Ngoc Thach, Cau Giay and Nguyen Luong Bang streets
put "sell-off" sales signs outside their doors, advertising
discounts of as much as 70%
The
sales person of one shop on
The
shop slashed the price on one sweater from VND260,000 (USD12.3) to VND170,000
(USD8.04) . The sales person said it was imported from
But
the same sweater was found selling for only VND140,000 (USD6.62) at Dong Xuan
Market in Hoan Kiem.
Nguyen
Thi Hoa, owner of a space at the market said, “I’ve sold clothes at market
prices for a decade. Small traders often buy clothes from wholesalers to sell
at their shops citywide. It’s obvious that prices at the market would lower
than that at the shops.”
Another
sales person at a shop on
Nguyen
Manh Hung, Vice Chairman of the Vietnam Standardization and Consumers
Association, said that many Vietnamese consumers are no longer interested in
Chinese products, so retailers sometimes change labels to make goods appear
Vietnamese."
Petrol
firms anticipate strong year
The
Viet Nam National Petroleum Group (Petrolimex) will hasten its process of
restructuring in 2014, with 80 per cent of planned reform completed last
year.
With
some 6,200 outlets nationwide, the group operates in various areas ranging
from petroleum and gas to insurance, transportation and services.
According
to Petrolimex General Director Tran Van Thinh, the group contributed VND31.3
trillion (roughly US$1.4 billion) to the State budget last year, representing
a year-on-year rise of 14 percent.
Holding
about 52 per cent of the market share, the group mainly focuses in
mountainous and midland areas, especially those where the socio-economic
situation remains unstable, he said.
The
Petrolimex leader added that the group accounts for up to 90 per cent of the
market share in the poor localities. Meanwhile, the figure stands at only
30-40 per cent in
The
Russia-Viet Nam oil and gas joint venture, Vietsovpetro, has set a target of
pumping up 5.1 million tonnes of crude oil, raking in more than $3.8 billion
in 2014.
Tu
Thanh Nghia, Vietsovpetro General Director, said at 2014 task conference
yesterday that the joint venture earned $4.75 billion in 2013, $1.05 billion
higher than the set target.
The
joint venture contributed $2.89 billion to the State budget, he said, adding
that its performance in drilling, exploitation and reserve increase exceeded
from 3 per cent to 40 per cent compared with the targets.
Thanks
to an array of solutions, the joint venture exploited nearly 5,600 tonnes of
oil, 156,000 tonnes higher than the yearly target, Nghia said.
Along
with $187 million earned from other services, the joint venture had, for the
first time, seen its spending on production drop compared with the previous
year with a year-on-year decrease of over $60 million, he said.
Banks
brace for ATM withdrawal surge surge
Banks
in
Most
ATMs in the city are often crowded with scores of workers gathering to
withdraw wages and bonuses.
According
to the Commercial Joint Stock Company for Foreign Trade of Viet Nam
(Vietcombank), withdrawal demand increases two- or threefold during the
holiday, especially in industrial parks and export processing zones.
A
representative of the HCM City Export Processing Zones and Industry Parks
Authority said that long queues had been spotted in front of ATM booths in
industrial parks, as many companies have already paid holiday wages and
bonuses.
To
ease ATM congestion seen in previous years, local banks have carried out
timely repairs on ATMs and have opened new ATMs at busy spots.
Local
banks said there would be a sufficient supply of cash for their ATMs before,
during and after the Tet holidays.
Vietcombank,
for example, has moved several ATMs where cash withdrawal demand is low to
areas including IPs that have high demand.
Vu Thi
Quynh Anh, deputy director of HDBank's Card Centre, said the bank had
foreseen increased cash withdrawals at this time of year so it had prepared
several measures to cope with it.
"In
particular, the bank has increased the amount of cash in each ATM and set up
a team ready to quickly address any breakdown in its network," Anh said.
Chu
Hong Minh, director of Dong A Bank's Card Centre, also revealed that his bank
had begun a general inspection of its ATMs, data transmission networks and
power resources to ensure that all its ATMs will operate well during the Tet
season.
"The
machines are supplied three or four times per day with cash on the days
approaching the Tet compared with only one or two times on normal days.
Meanwhile, the bank is also preparing spare cash drawers to be ready to
supply to ATMs," Minh said.
Dong A
Bank also has a system to watch over transaction volumes as well as technical
operations at its ATM system to ensure stable operations and any breakdown
can be addressed quickly, he added.
Because
the amount of cash in ATMs have increased significantly on those days, most
banks in the city have paid more attention to ensuring security for their
customers by deploying guards at several "risky" locations and
installing cameras in all booths.
They
have also cooperated with the local police to intensify patrols at ATM
locations adjudged more vulnerable to theft and robbery.
"It
is not only on Tet holidays that we keep close watch over our ATM system to
ensure stable operations," a representative of ABBank said.
According
to the State Bank of
Since
December the central bank has sent several documents asking commercial banks
to ensure cash supply for their ATMs, and to open new ATMs at places where
cash withdrawal demand is high. The bank has also required local banks to
work with enterprises to pay workers' salaries and bonuses at different times
to reduce the pressure on the ATM system.
Thaco
ranks second nationally in vehicle sales
The
Truong Hai Automobile company (Thaco) sold 28,284 vehicles last year, earning
revenues of VND13.3 trillion ($633 million), which represented a 14 per cent
growth.
Thaco
ranks second in vehicle sales in
Further,
Thaco cornered a market share of 29.2 per cent in 2013, according to Thaco's
executive chairman Tran Ba Duong.
The
company also contributed VND3.6 trillion ($171 million) to the State budget
last year.
Thaco
has produced and distributed three brands: Kia of South Korea, Mazda of Japan
and
PVFCCo
to build NPK manufacturing facility
The
Petroleum Fertiliser and Chemicals Company (PVFCCo) plans to build a factory
capable of manufacturing approximately 250,000 tonnes of NPK fertiliser per
year.
The
project requires a total investment of about US$200 million, of which $120
million will be borrowed from credit institutions.
The
factory is expected to begin operations in 2016, and will help in ridding the
domestic market of fertilisers sold under falsified brand names.
HCM
City FDI soars over $2b on new projects
Foreign
direct investment in
Of
this, $1.05 billion was invested in 477 new projects, an increase of 76.7 per
cent from the previous year. Some $305 million of this went to 102 science
and technology projects.
Despite
the many challenges facing the sector, $147 million was directed to 10
property projects. Also last year, 67 foreign projects, with a total
registered capital of $436.7 million, were relocated to other provinces and
cities or shut down.
There
are 4,924 operational FDI projects in the city now, with a total registered
capital of $33.5 billion.
BIDV
prepares to launch IPO on City stock market
Shares
of the Bank for Investment and Development of Viet Nam (BIDV), under the code
BID, are expected to be listed on the HCM City Stock Exchange (HOSE) on
Friday.
After
HOSE's approval last Thursday of the bank's registration for listing, there
will be 2.8 billion shares on offer for VND18,700 (US$0.89) each. The shares
account for 5 per cent of the total capital in the stock market, making the
shares of the banking industry total 27 per cent, leading the stock market in
term of capital.
BIDV
is the country's second largest bank by assets and networks, after Agribank.
As of September 30, 2013, the bank's total assets were worth VND535.8
trillion ($25.5 billion) with 127 branches and nearly 700 outlets in 63
cities and provinces.
The
bank, more than 95 per cent of which is owned by the State, held an IPO in
late December 2011 at a price of VND18,600 ($0.88). The planned debut price
is to be not less than 1.5 times that of the IPO price of VND27,800 ($1.32).
According
to Tran Phuong, BIDV's deputy director, the stock market is witnessing signs
of recovery because of an improvement in the economy. One of the most visible
signs is the VN-Index jumping 8 per cent to a four-year high, which suggests
that it is a good time for stock listings.
In
2012, BIDV's pre-tax profit was estimated at more than VND5.2 trillion
($247.62 million). The expectation is that it earned at least VND6 trillion
($285.7 million) in pre-tax profit this year.
Phuong
said that BIDV plans to seek two foreign partners, who will have a total
shareholding of 25-30 per cent after listing. A recent regulation, Government
Decree No 1, allowing foreign strategic partners to own up to 20 per cent in
a local bank's total shareholdings, is likely to make any investment in the
financial markets more attractive to investors.
Experts
said BIDV's listing will help increase the size and liquidity of the stock
market, as well as the transparency of the banking sector, which is
undergoing significant restructuring currently.
The
Chan May-Lang Co Economic Zone (EZ) in the central
In
order to reach this goal, local authorities said investments of up to VND1.95
trillion ($93 million) have been made in upgrading the infrastructure for
transport, electricity, water and telecommunications in the province.
The
authorities also plan to continue simplifying administrative procedures to
encourage new investors, while creating a more favourable environment for
investors already permitted to implement licensed projects.
The EZ
has, so far, attracted 32 projects with a total registered capital of over
VND35.47 trillion (more than $1.68 billion), including 10 projects with a
total investment of $1 billion by foreign investors. Of these projects, 12
are already underway.
One of
the largest projects is an $875 million tourism complex, being financed by
the Banyan Tree Group of
According
to the provincial People's Committee, the EZ's location, near the national
road 1A and the Lang Co Bay, make it highly attractive to investors, as the
port is extremely convenient for transporting goods on both land and sea.
In
addition, several financial incentives have been provided to attract
investors, such as tax exemptions for the first four years of operation, a 50
per cent tax reduction for the next nine years, and a 50 per cent tax rate
for high-income employees.
In an
attempt to improve the province's investment climate, the EZ's management
board has also revoked the licenses of five slow-moving projects that had a
combined investment of VND4.56 trillion ($217.2 million).
Another
four projects, valued at a total of VND2.68 trillion ($128 million), are
under consideration.
Initiative
aims to reform tra fish industry
Toward
that end, the Viet Nam Association of Seafood Exporters and Producers (VASEP)
and the Viet Nam Cleaner Production Centre launched the US$3.2 million
project on Establishing a Sustainable Pangasius Supply Chain.
Pham
Anh Tuan. deputy director general of VASEP, said the project would help the
industry meet international quality standards. Over 48 months,
However,
the industry faces several quality problems, such as antibiotic residue,
which negatively affect the image of Vietnamese products around the world.
The
project aims to help at least 70 per cent of processors and 30 per cent of
animal feed producers to participate in a cleaner production programme.
The
goal is for at least 50 per cent of target businesses to provide tra fish
that meet the standards of the Aquaculture Stewardship Council, which are
highly regarded in international markets.
The
project will be implemented by the Viet Nam Cleaner Production Centre, VASEP,
World Wildlife Fund (WWF)-
Viet
Nam-South
The
two-way trade between
The
figures released by the General Department of Customs showed that the
bilateral trade has experienced a continuous rise since 2010, especially
after
The
main imports by
In
addition,
Vietnamese
exporters earned $6.6 billion from the South Korean market, up 18.9 per cent
against the previous year, and accounting for 24.3 per cent of the country's
total exports by value.
Major
Vietnamese exports to
Around
9,800 local businesses had trade relations with South Korea in 2012, which
increased to 1,100 last year.
Oh Jea
Hack, South Korean Consul General, was quoted as saying by the Viet Nam
Economics Times newspaper that bilateral trade between the two nations in
1992 was valued at $500 million.
After
20 years of relations, that value has jumped to $21 billion in 2012,
representing a forty-fold increase from 1992.
The
two countries aim to raise the value of bilateral trade to $70 billion by
2020.
Positive
year forecast for industrial production
The
industry and trade sector of Viet Nam expects the index of industrial
production (IIP) to grow to 6.3 per cent this year as the world economy
recovers, helping boost exports.
Restructuring
will continue to be a priority this year, according to the Ministry of
Industry and Trade.
Industrial
production showed signs of recovery in 2013, with the IIP growing by 5.9 per
cent and inventories decreasing. However, the macro-economy did not fully
stabilise, consumers continued to budget carefully and free trade agreement
negotiations remained unfinished. In addition, natural disasters and diseases
presented a continued threat.
Deputy
Minister Le Duong Quang said that the industrial production of Viet Nam was
still dependent on the world economy and thus vulnerable to global
fluctuations.
He
added that technology remained low-level and the support industries did not
receive adequate investment, meaning the country depended on imports for many
raw materials.
Nguyen
Tien Vy, director of the ministry's Planning Department, said that the
industry and trade sector would hasten restructuring, especially of
State-owned enterprises, to enhance efficiency and competitiveness.
He
added that technology should play a bigger role in production and the
localisation rate should be increased.
According
to the Viet Nam Chamber of Commerce, 42.5 per cent of companies planned to
expand business in 2014 while 50.7 per cent maintained the size of their
businesses.
This
suggested that enterprises felt a better business year was coming in 2014,
said Pham Thi Thu Hang, the VCCI's general secretary.
Hang
suggested enterprises improve their risk management capacity in order to take
advantage of the Government's support policies.
Chairman
of the Viet Nam Mechanics Association, Nguyen Van Thu, said that preferential
capital sources should be made accessible to enterprises to help them boost
production.
Auto
industry’s focus now shifted to pickups, buses
The
national automobile industry development strategy until 2020 and visions
towards 2030 will focus on developing small multi-purpose vans and buses,
while the development of vehicles of four to seven seats needs
reconsideration, the Government said.
In
Correspondence No.455/TB-VPCP as minutes of the Government meeting on the
nation’s automobile development strategy, the Prime Minister asked competent
agencies to draw up the strategy with a focus on developing small
multi-purpose vans to replace self-made tractors and other rudimentary
vehicles for use in rural areas.
Meanwhile,
the development of four-to-seven seats is not mentioned as the core of the
strategy as seen in previous automobile development master plans. The
Research Institute for Industrial Strategy and Policy under the Ministry of
Industry and Trade had earlier drafted the master plan targeting the
manufacture of personal vehicles rather than that of vans.
In
fact, in terms of small vans and buses, the local industry has achieved
certain successes with the local content ratio in these vehicles amounting to
over 40%.
Over
the past time, many have ascribed the auto industry’s failure to the weak
production of the personal vehicle segment. Many foreign-invested automakers
despite enjoying numerous incentives have made little contribution to the
industry, which is attributable to fast-changing tax policies that caused
difficulties for those automakers wanting to make long-term investments.
Local
experts now believe that time is running out for the auto industry although
it has been classified as one of the prioritized industries. That is because
the tax rate imposed on cars in the ASEAN region has been cut to 50% this
year compared to 60% in 2013 and 70% in 2012, which will be slashed to 0%
only in 2018, they said.
Automakers
forecast automobiles would become widely popular in Vietnam’s economy in
2020-2025 given the huge demand at home. Because of this, Japan has suggested
the auto industry as a key bilateral cooperation sphere.
In
fact, several foreign-invested automakers stated that they could still invest
in auto production for further development if there are suitable policies and
clear and stable strategies.
With
the Prime Minister’s conclusion, the development strategy for the auto
industry will be changed accordingly. The Prime Minister also requested the
industry-trade ministry to cooperate with other ministries and agencies to
review mechanisms and policies, especially tax policies besides specific
criteria and conditions to ensure the feasibility, stability and suitability
with international commitments.
It is
expected that the market will see huge demands for autos after 2020, at some
400,000 units annually, which will soar to roughly two million annually in
2030, with sedans under nine seats accounting for around 70% of the total.
If
local production fails to meet such vigorous demand, the country will have to
spend billions of U.S. dollars on auto imports annually.
Retail
space in HCMC desperately awaits vendors
Developers
of retail commercial space in HCMC has undergone a dreary year with operators
of trade centers desperately awaiting space lessees, according to a survey
conducted by the realty market researcher CBRE Vietnam.
The
total area of retail space that found vendors last year was only 26,700
square meters, equivalent to just one-third of that in the previous year when
79,500 square meters was leased out to retailers. Last year saw few
successful transactions, and the vacancy rate at trade centers remained high
at 12% of the total available space of 625,000 square meters.
Classy
trace centers faced tougher competition from street-front houses that were put
up for lease to retailers, who took flight from such centers and sought
cheaper space outside. The offered monthly rate at retail space at trade
centers averaged some US$50 a square meter, while the rate at street-front
houses at prime sites was only some US$20, according to the market
researcher.
Despite
the dreary picture, the market of retail space got more bustling at the end
of last year, with several projects put into operation. These included the
Parkson Cantavil Premier in HCMC’s District 2 and the Aeon shopping mall in
Tan Phu District.
In
addition, many well-known retailers, such as McDonald’s, Dunkin’ Donuts,
Super Sport and Dairy Queen, are also looking for good site to set up shop.
CBRE
Vietnam noted that retail space rents have been sliding since 2009, although
the decline rate has slowed down lately. It however reported that it was
difficult to say whether rents have bottomed out, but operators pinned high
hopes on the New Year as macro-economic signals have shown signs of
improvement.
Marc
Townsend, managing director of CBRE Vietnam, predicted that supermarkets and
food stores would not be much impacted by the economic cycle spiraling
downward, so such facilities would continue to fare better in the coming
time.
Data
from the General Statistics Office (GSO), however, point out that retail
fared poorly last year. The total retail revenue of services and commodities
in 2013 was some VND2,618 trillion, or some US$125 billion, a year-on-year
rise of 12.6%. This was the lowest rise since 2009, and if inflation was
deducted, the growth was a mere 5.6% compared to 6.5% in 2012.
The
breakdown supplied by GSO shows that merchandise retail revenue totaled
VND2,009 trillion, accounting for 76.7% and rising 12.2% on year, while
hotel-restaurant service revenue made up VND315.8 trillion, accounting for
12.1% and rising 15.2% on year, while other service revenues totaled VND268.6
trillion.
GSO
remarked that retail sales have slowed down since 2011 at all channels,
traditional as well as modern shopping ones.
Tra
fish industry looks more sustainable this year: Vasep
Tra
fish farming and processing in Vietnam this year will be more sustainable as
cash-strapped farmers and enterprises have left the playground to more
capable ones, said a senior leader of the Vietnam Association of Seafood
Exporters and Producers (Vasep).
Duong
Ngoc Minh, vice chair of the association, told the Daily that the local tra
fish industry has undergone overheated expansion since several years ago, and
2013 was seen as a climax with numerous farmers and processors being pushed
to the verge of bankruptcy.
The
glut of local supply last year dragged down fish prices, resulting in huge
losses for bother farmers and processors. Many therefore have now shied
themselves away from the business, said Minh, who is also board chairman of
the big tra fish processor Hung Vuong Joint-stock Company.
“The
market is now the playground for those enterprises that are really capable,
with ample capital, good outlets and good farming practices. They will be the
main players to help the tra fish business to develop in a sustainable
manner,” he told the Daily in an interview.
Last
year, Vietnam earned US$1.7 billion from tra fish exports, a slight fall of
3% from 2012. Minh predicted output this year would fall by some 10% year on
year, but the export revenue would rise by 5% owing to better prices.
The
global demand will likely stay stable, and potential markets for Vietnam’s
tra fish will be China and Japan, according to Minh.
Vasep
in a report estimates total seafood exports to China and Hong Kong this year
will rise 55% to around US$650 million.
Tra
fish exports to the U.S. remain unclear this year, as all eyes are on the
outcome of the ninth administrative review by the U.S. Department of Commerce
to see whether a high tariff will be slapped on Vietnam’s Tra fish products.
The results will be announced in March, Minh said.
Commenting
on the tra fish business last year, Minh of Vasep said many suffered
setbacks, including farmers, cash-strapped processors and traders, and
especially suppliers of feed and young fish.
“Many
people think that farmers and processors bore the brunt of losses last year,
but in fact, it is those young fish and feed manufacturers who incurred the
most losses,” Minh said.
Between
2011 and 2012, those supplying young fish were the poorest among partakers in
the production chain, Minh said. Last August, for example, a kilo of
commercial-size tra fish sold for VND24,000, but a kilo of young fish was
priced at only VND15,000, he said.
Retail space in
HCMC desperately awaits vendors
Developers
of retail commercial space in HCMC has undergone a dreary year with operators
of trade centers desperately awaiting space lessees, according to a survey
conducted by the realty market researcher CBRE Vietnam.
The
total area of retail space that found vendors last year was only 26,700
square meters, equivalent to just one-third of that in the previous year when
79,500 square meters was leased out to retailers. Last year saw few
successful transactions, and the vacancy rate at trade centers remained high
at 12% of the total available space of 625,000 square meters.
Classy
trace centers faced tougher competition from street-front houses that were
put up for lease to retailers, who took flight from such centers and sought
cheaper space outside. The offered monthly rate at retail space at trade
centers averaged some US$50 a square meter, while the rate at street-front
houses at prime sites was only some US$20, according to the market
researcher.
Despite
the dreary picture, the market of retail space got more bustling at the end
of last year, with several projects put into operation. These included the
Parkson Cantavil Premier in HCMC’s District 2 and the Aeon shopping mall in
Tan Phu District.
In
addition, many well-known retailers, such as McDonald’s, Dunkin’ Donuts,
Super Sport and Dairy Queen, are also looking for good site to set up shop.
CBRE
Vietnam noted that retail space rents have been sliding since 2009, although
the decline rate has slowed down lately. It however reported that it was
difficult to say whether rents have bottomed out, but operators pinned high
hopes on the New Year as macro-economic signals have shown signs of
improvement.
Marc
Townsend, managing director of CBRE Vietnam, predicted that supermarkets and
food stores would not be much impacted by the economic cycle spiraling
downward, so such facilities would continue to fare better in the coming
time.
Data
from the General Statistics Office (GSO), however, point out that retail
fared poorly last year. The total retail revenue of services and commodities
in 2013 was some VND2,618 trillion, or some US$125 billion, a year-on-year
rise of 12.6%. This was the lowest rise since 2009, and if inflation was
deducted, the growth was a mere 5.6% compared to 6.5% in 2012.
The
breakdown supplied by GSO shows that merchandise retail revenue totaled
VND2,009 trillion, accounting for 76.7% and rising 12.2% on year, while
hotel-restaurant service revenue made up VND315.8 trillion, accounting for
12.1% and rising 15.2% on year, while other service revenues totaled VND268.6
trillion.
GSO
remarked that retail sales have slowed down since 2011 at all channels,
traditional as well as modern shopping ones.
Source:
VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
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Chủ Nhật, 26 tháng 1, 2014
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