|
BUSINESS IN BRIEF 3/1
Danang
port handles first cargo of 2014
A
ceremony was held on January 1 at Danang Seaport to celebrate receiving
the first cargo of the New Year and announce the 5 millionth tonne of goods
in 2013.
The
first batch of cargo was transported by three ships and two containers, a 526
TEU ship of Facific Express, and an oil and gas transport ship of SEA
COMMNCHE.
In
2013, Danang port handled 5.01 million tonnes of goods (up 13% year on year),
and welcomed more than 116,000 passengers from over 100 cruise ships,
doubling the previous year’s figure.
Tran
Minh, captain of Facific Express ship, said Danang port is expected to
receive 5.3 million tonnes of goods and welcome 120,000 arrivals in 2014.
Exports
to
According
to recent statistics, November’s export revenue hit US$241.27 million, up
6.3% from the previous year.
Key
Vietnamese export items included telephones and spare parts (US$591.9
million, up 105.1%), steel products (US$290.3 million, up 11,0%), transport
vehicles, rice, and garment and textile products.
Other
exports with rapid growth were computers and spare parts, machines, and
electronic products.
Wood
exports top US$5.3bln in 2013
The
figure represents a surge of 15.2% against 2012, announced the Ministry of
Agriculture and Rural Development (MARD).
The
The
domestic wood-processing industry has enjoyed strong growth over the past 10
years, with export value increasing at an average of 15.5% each year. It
earned US$4.6 billion from exports last year, representing a year-on-year
rise of 18%.
Despite
the increasing export turnover, the industry has still encountered several
challenges, with heavy dependence on imported raw materials being one of the
most significant, said MARD's Forestry Department Deputy Director Nguyen Ba
Ngai.
The
local resources of raw materials have failed to meet the demand from wood
processors both in volume and quality. Thus, they had to import materials
from overseas, with an average import growth of 12.1% during the 2007-12
period, he stated.
In
2013, these firms imported US$1.68 billion worth of wood and wooden products,
a year-on-year rise of 24% from major markets including Laos, the US and
China.
Ensuring
the supply of raw timber was the sector's top priority, according to the
Vietnam Wood and Forestry Product Association's General Secretary, Nguyen Ton
Quyen.
Under
the national forestry development strategy, by 2020 the industry will be able
to meet domestic demand for wood as well as for exports.
This
means that until 2020, local producers will continue to import raw materials
for export processing, often at high prices, he explained.
"So
they must seek solutions to increase their competitive capacity against wood
product producers from other countries," Quyen said.
Japanese
retailer Aeon opens first VN mall
Japanese
retail and financial services corporation Aeon opened its first shopping mall
in
The
Aeon Mall Tan Phu Celadon includes some 50,000sq.m of retailing space and 120
shops selling Japanese fashion products, household appliances, and interior
decoration items, said Oyma Nagahisa, CEO of ASEAN Aeon.
But
Yasuo Nishitohge, general director of Aeon Viet Nam, told the media at the
opening ceremony that some 80 per cent of the goods on sale in the mall are
Vietnamese.
Nagahisa
said Aeon has invested more than $100 million in the mall.
Further,
Nishitohge said additional malls would open in Binh Duong in October and in
Ha Noi in the next two years. In all, Aeon plans to build four malls in
Shares
end the year on a high
The
market closed the last trading session of 2013 in the black on both national
stock exchanges, and forecasts were positive for the new year.
On
Tuesday, the VN-Index on the HCM City Stock Exchange earned 0.86 per cent to
reach 504.63 points.
However,
liquidity was low due to the approaching holiday. Nearly 61 million shares
changed hands with a total value of only VND869.5 billion (US$41.4 million).
The
VN30-Index, tracking the southern city's 30 largest shares by capitalisation
and liquidity, gained 1.05 per cent to reach 562.2 points, thanks to gains
for 26 out codes.
PetroVietnam
Transportation (PVT) on Tuesday increased VND700 ($0.03) per share to hit its
ceiling price.
Only
logistics company Gemadebt (GMD), Masan Group (MSN), PetroVietnam Low-Pressure
Gas Distribution (PGD) and Vinamilk (VNM) kept their reference prices on
Tuesday, and the southern bourse saw no blue chips losing.
Overall,
182 codes in the southern bourse added value, while 43 codes lost.
On the
Ha Noi Stock Exchange, the HNX-Index rose 1.32 per cent to 67.84 points but
with low liquidity.
With
39.8 million shares traded, the total value reached VND275.9 billion ($13.13
million).
The
HNX30-Index, comprising the top 30 shares of the northern bourse, gained 1.88
per cent to reach 125.98 points.
The
increases in benchmark indices during the last trading session of 2013 was
attributed to the release of information that the Prime Minister would
approve a regulation allowing foreign investors to hold 60 per cent of stakes
in several listed companies, an increase from the current 49 per cent they
are able to hold.
However,
for short-term fluctuations, FPT Securities noted that risks existed and
domestic investors should wait for the reactions of the market when the room
for foreign investors increases.
The
Tuesday rally also marked a successful year for the Vietnamese stock market,
with strong long-term recoveries, according to FPT Securities.
Last
year, the VN-Index soared 21.97 per cent over the end of 2012, and the
HNX-Index jumped 18.83 per cent. Many analysts forecast a good year for the
stock market in 2014.
On
average, nearly VND1.4 trillion ($66.67 million) was poured into the market
each session, with more than 100 million shares traded last year.
Domestic
retail gas prices fall
Retail
cooking gas prices decreased by VND43,000 ($2) to between
VND443,000-VND450,000 ($21-21.4) per 12kg canister, as of yesterday in
Do
Trung Thanh, deputy head of the Business Department of Saigon Petro
attributed the decreased cooking gas price to the reduced global price,
noting that gas is being sold internationally at $1,015 per tonne in January
2014, down $147.5 since last month.
There
was a sudden rise in domestic gas prices in December 2013 by VND80,000 to
VND485,000 per 12kg canister beginning December 1, posting a record high
since February 2012, according to the Viet Nam Gas Association (VGA).
Ministry
cuts fees on trade activities
The
Ministry of Finance has issued an ordinance to reduce taxes in accordance
with World Trade Organisation's rules, which took effect from 1 January.
Some
commodities have been moved to different groups of tariffs on the list for
import-export goods
Preferential
taxes have been adjusted, especially for electronic components.
Corporate
income tax has dropped from 25 to 22 per cent, except for some special cases,
since yesterday.
For
companies having paid 22 per cent of corporate income tax, they will have the
right to pay 20 per cent two years later.
With
small enterprises that have low revenues not exceeding VND20 billion (US$1
million) per year, they have to pay only for 20 per cent.
Some
enterprises might receive preferential taxes ranging from 10 – 20 per cent.
For
example, enterprises that invest in remote and difficult areas, a high-tech
zone have to pay 10 per cent for the first 15 years of their projects.
Other
projects related to science and technology, or those developing important
infrastructure, renewable energy, environmental protection or in education,
vocational training, healthcare, culture and sports, also enjoy a tax level
of 10 per cent.
A
range of 32 – 50 per cent of tax will be applied to oil refineries and other
rare natural resources.
Under
the adjusted value-added tax law, which will come into effect in April, taxes
will not be levied for some kinds of insurance, including health, cultivation
and fishery activities.
Ca
Mau targets increased revenue
PetroVietnam
Ca Mau Fertiliser Company Limited (PVCFC) is set to earn VND5.66 trillion
(US$269 million) in revenues in 2014 from the sale of 780,000 tonnes of
fertiliser.
According
to Chairman of the Board Nguyen Duc Thanh the company will continue to
promote campaigns to introduce its products and expand markets in the
country's northern and central regions, as well as in
PetroVietnam
Ca Mau has committed to providing enough fertiliser for farmers in the Cuu
Long (
Last
year, the company fulfilled its yearly target 15 days ahead of schedule.
PVCFC produced 780,000 tonnes of urea, with nearly 750,000 tonnes sold,
earning about VND6.443 trillion ($306.8 million). The figure represents a
year-on-year increase of 60 per cent in both volume and value..
Binh
Duong sets FDI target of $1b
The
southern
To
this end, the province will continue to ramp up the infrastructure in
industrial zones (IZs) while choosing projects that are well suited to the
locality's development orientation, particularly for energy-efficiency
projects.
At the
same time, it will zone off some 300ha in Bau Bang industrial park for
industry projects. All possible measures will be adopted to draw investors
once the Trans-Pacific Partnership deal is signed.
Among
the 28 planned IZs in Binh Duong, 26 of them cover an area of over 9,000ha,
and eight industrial clusters of 600ha have already had their infrastructure
facilities built, including waste-water treatment systems.
The
rate of occupancy in industrial parks and clusters hit an average of 65 per
cent and 41 per cent respectively. Ten of them obtained a rate of 95-100 per
cent, such as VSIP 1, VSIP 2, My Phuoc, Song Than, Binh Duong, Viet Huong,
and Dong An.
This
year, the IZs poured an additional VND388 billion (US$18.4 million) into
technical infrastructure, put 86.4ha of land up for lease, and generated jobs
for 12,700 workers.
In
2013, Binh Duong attracted $1.3 billion in FDI, including $818 million for
125 new projects and an additional $501 million for 124 existing projects. It
has so far attracted over 2,200 projects, valued at more than $18.7 billion.
Finance
ministry slashes fees under WTO rules
The
Ministry of Finance has issued an ordinance to reduce taxes in accordance
with World Trade Organisation's rules, which took effect from January 1.
Some
commodities have been moved to different groups of tariffs on the list for
import-export goods.
Preferential
taxes have been adjusted, especially for electronic components.
Corporate
income tax has dropped from 25 to 22 percent, except for some special cases.
For
companies having paid 22 percent of corporate income tax, they will have the
right to pay 20 percent two years later.
With
small enterprises that have low revenues not exceeding 20 billion VND (1
million USD) per year, they have to pay only for 20 percent.
Some
enterprises might receive preferential taxes ranging from 10 - 20 percent.
For
example, enterprises that invest in remote and difficult areas, a high-tech
zone have to pay 10 percent for the first 15 years of their projects.
Other
projects related to science and technology, or those developing important
infrastructure, renewable energy, environmental protection or in education,
vocational training, healthcare, culture and sports, also enjoy a tax level
of 10 percent.
A
range of 32 - 50 percent of tax will be applied to oil refineries and other
rare natural resources.
Under
the adjusted value-added tax law, which will come into effect in April, taxes
will not be levied for some kinds of insurance, including health, cultivation
and fishery activities.-
Bac
Giang aims for high value-added investment
The
The
province will accelerate efforts to put good infrastructure in place and make
land available to attract investors, while continuing to address problems and
assist investors in implementing their projects.
At the
same time, the State management of investment projects will be tightened with
the aim of eliminating ineffective and delayed schemes.
In
2013, Bac Giang attracted a total of 80 investment projects valued at more
than 266 million USD, up 13.6 percent in terms of project numbers and 41
percent in registered capital. They include several large-scale investments
such as the Big C trade centre, the Muong Thanh hotel complex and the
The
province has so far licensed more than 700 investment projects, both domestic
and foreign, which have a combined registered capital of nearly 3.8 billion
USD. Of them, 430 projects are operational, employing 155,000 local workers.
However, 43 projects have been delayed for a long time, 11 of which had their
licences withdrawn this year.
Viettel
outdoes VNPT second year in a row
2013
is the second year military-run telco giant Viettel has surpassed state-run
VNPT’s business performance.
According
to a recent report from the Ministry of Information and Communications (MIC),
in 2013 Viettel saw VND162.8 trillion ($7.7 billion) in total revenue,
achieving its annual target and up 15.2 per cent against 2012.
Estimated
pre-tax profit was VND35 trillion ($1.6 billion) with taxes of VND13.5
trillion ($647 million), rising 19.4 per cent against 2012.
VNPT
on the other hand reported total revenue of VND119 trillion ($5.6 billion) in
2013, paying VND7.894 trillion ($376 million) in taxes. Its estimated profit
for the year was VND9.265 trillion ($441 million).
In
2012 the state telco posted more than VND130 trillion ($6.2 billion) in total
revenue, but saw lower profits of VND8.5 trillion ($404 million).
In
terms of revenue, Viettel surpassed VNPT by more than VND43.8 trillion ($2
billion) and exceeded it in profits by VND25.8 trillion ($1.2 billion).
2012
was the first year military-run Viettel eclipsed VNPT’s business performance
when the former reported total revenue of VND140 trillion ($6.6 billion)
against the latter’s VND130.5 trillion ($6.2 billion). Viettel’s profits of
VND24.5 trillion ($1.1 billion) nearly tripled those of VNPT.
The
MIC report also showed that VNPT’s biggest revenue growth in 2013 came mostly
from content services, 45 per cent against 2012, with cable and broadband
services hiking by 26 per cent.
The
report’s figures showed that by the end of 2013, VNPT had 40.4 million mobile
phone subscribers, only 78 per cent of those it had by the end of 2012,
explaining why the telco’s revenue from mobile services in 2013 was nearly
the same as the previous year.
Also
in 2013, VNPT asked the MIC’s permission to provide cable television services
throughout the country based on existing infrastructure. It is likely to
receive the go-ahead in the near future.
Viettel’s
revenue came primarily from its mobile network as it continues to attract
subscribers and has taken the lead both in respect to revenue and number of
subscribers.
In its
most recent count, Viettel reported 54.25 million mobile subscribers, up 1.81
million against the end of 2012. Also in 2013 Viettel saw nearly 2.15 million
new 3G subscribers and 44,000 new Internet and broadband subscribers.
According
to Viettel deputy general director Nguyen Manh Hung, by 2015 up to 40 per
cent of the group’s workforce will focus on developing applications and
telecom services would account for half of the group’s total global revenue.
Owners
of unlicensed online trading sites will be fined up to VND100 million
(USD4,731), according to a new government’s regulation.
Decree
185, aimed at consumer protection, which changes administrative punishments
over violations in trading and production of fake or banned goods, takes
effect January 1.
The
regulation stipulates that those who own online trading sites, as well as
other types of websites managed by the Ministry of Industry and Trade, must
register for a license.
Violators
will be fined from VND10 million - VND15 million (USD473.14-USD709.72) per
individual, and between VND10 million and VND100 million (USD473.14-USD4,731)
for organisation.
A
report on e-commerce in
A
majority of these online transactions are for clothes, footwear, cosmetics,
home appliances, food and books.
However,
over 60% of those questioned rated the quality of service as medium and only
29% said they were satisfied. The majority of complaints involved bad quality
products, bad shipping services, the risks of giving out personal information
and complicated procedures.
HCMC
activates online business registration
In
early 2014 those who want to set up a new business in
The
department was due to start receiving business registration dossiers on
January 2, DPI deputy director Tran Thi Binh Minh told VIR. The move aims to
lessen paperwork, save time and cost for enterprises and the regulator, as
well as make life easier for entrepreneurs.
Minh
explained the system would lessen the load on entrepreneurs by allowing them
to complete registrations at home without having to go back and forth to the
office several times to complete the paperwork. “This system will instruct
them on how to complete the entire registration,” she added. The new system
is expected to reduce overcrowding at the DPI office.
While
the online system is available to all, individuals and enterprises can still
select any of the three registration processes – filing online and receiving
results by courier, submitting dossiers at the department and receiving
results by courier, or submitting dossiers at the department’s office and
receiving results also at the office.
The
DPI expects to see 20 per cent of new enterprises registering at home in
2014, and half by 2015.
The
city’s online business registration pilot programme was carried out through
2011 but was then put on hold due to a technical problem after the Ministry
of Planning and Investment launched the unified National Business
Registration Portal.
Vietnamese
shrimp exporters achieve great success in 2013
Last
year, the
The
price of common tiger prawn was around VND240,000-280,000 per kilogram and
that of white-leg shrimp was around VND140,000-190,000 per kilogram in the
last days of 2013 in the Mekong Delta provinces. Some farmers saw profit of
nearly VND1 billion per hectare thanks to high production and high price.
In
2013, the country’s seafood exports hit $6.5 billion.
Enterprises
in the face of indispensable requirements
Vietnamese
businesses need to quickly restructure themselves to improve performance and
competitive capacity in the current context of the country’s comprehensive
international integration.
According
to the Ministry of Planning and Investment, during 11 months of 2013, there
were 71,018 newly-established registered companies with the total registered
capital of VND 359,470 billion, up 9.5% against the same period in 2012.
Meanwhile, 54,932 companies completed dissolution procedures and suspended
operations, an increase of 8.4% compared to the same period in 2012.
Also
during this time, the number of suspended firms back to operation is 12,709,
up 8.2% compared with 2012. This shows that the number of newly registered enterprises
and back-to-operation ones in 2013 have been no longer one-way movement with
a large proportion of dissolved and suspended companies as 2012.
However,
according to Mr. Huynh Van Minh, the Chairman of Ho Chi Minh City's business
association, in 2013, many businesses, especially small ones did not really
attach enough importance to restructuring so they have been dislodged from
the market under the pressure of competition.
This
situation is likely to occur more severely as the country is joining a number
of free trade agreement talk, including TPP. Therefore, restructuring is not
just the work of small and medium-sized enterprises, struggling businesses
but also large ones in the quest of sustainable development.
"The
power" of FDI enterprises should also be mentioned here. According to
Dr. Tran Du Lich, deputy head of Ho Chi Minh City National Assembly
Delegation, the sector have many advantages in which administration capacity
and resilience are among the most dominant.
On the
other hand, while TPP is under negotiations, many foreign enterprises have
energetically poured capital in the areas of Viet Nam’s competitive
advantages in order to wait in front for the opportunities while most of
Vietnamese companies are still ambiguous about TPP.
Against
this background, domestic companies have no choice but to rapidly restructure
themselves keep up with modern economic trends.
One
restructuring solution, favored by small and medium-sized enterprises, is
finding partners, sharing financial burdens. Recent public and non-public
mergers and acquisitions (M&A) have shown that enterprises are active in
restructuring operations.
The
two typical acquisition cases are the world leading investment fund Warburg
Pincus and Bank of Tokyo Mitsubishi which buy shares of Vincom Retails and
Vietinbank, respectively.
According
to Mr. David Blackhall, the CEO of Vinaland Limited (an affiliate of
Vinacapital Group), those are the important and meaningful mergers and
acquisitions (M&A) deals which reinforce foreign investors’ confidence in
Viet Nam’s business environment, concurrently impulse the investment capital
inflows, supporting Vietnamese enterprises in restructuring.
Clean
technology strategy passed
By
2020, all new energy-intensive industry projects possibly causing serious
pollution to the environment shall have to meet criteria for clean
technology.
This
is part of the newly-approved strategy to use clean technology by 2020 with a
vision to 2030.
Under
the strategy, 60-70% of the current energy-intensive industry facilities
shall have to finalize and implement roadmaps for the use of
clean technology.
The
strategy aims to encourage application of clean and environmentally-friendly
technologies; improve efficiency of energy and natural resource usage in the
industrial sector in order to promote green development, mitigate impacts of
climate change and better living standards.
Specifically,
technical standards will be designed and applied in industries which consume
a lot of energy and cause heavy pollution such as weaving and dying,
production of fertilizers and pesticide, metallurgy, exploitation and
manufacturing of minerals; thermo-electricity; paper making, cement and
sugarcane.
Export
activities in focus
The
agro-forestry and fishery exports were estimated at US$ 19.85 billion,
accounting for 15% of the total export turnover. However, the figure was 5.3%
lower than the previous year.
Fuel
and mineral exports valued US$ 9.6 billion, representing 7.2% of the national
export volume. Meanwhile, the processing industry earned US$ 93 billion,
making up 70.5% of the total.
Noticeably,
domestic enterprises’ export share continued to recover and grew 3.5%
compared to 1.2% in 2012, partly thanks to initially making use signed
of signed FTA with ASEAN, the Republic of Korea, Japan and India, according
to an official of the Ministry of Industry and Trade.
This
year featured with sustained exports to traditional markets such as the
Southeast Asia, the EU,
Since
2007, trade deficit have declined sharply and the trade balance shifted from
deficit to surplus. The trade gap was 29.1% in 2007; 28.8% in 2008;
22.5% in 2009; 17.5% in 2010; 10.1% in 2011.
The
Southeast Asian nation gained a trade surplus of US$ 749 million for the
first time in 2012 and the figure is projected to increase to US$ 863 million
in 2013.
VN
seeks new labor export markets
In
2014,
The
labor export outlook is still optimistic, said Dao Cong Hai, Deputy Head of
the Overseas Labor Management Department under the MOLISA.
Mr.
Hai said traditional markets are projected to receive more Vietnamese guest
workers, meanwhile, potential markets will be expanded and promoted.
The
door for skilled and high-quality workers is opening particularly in
In
2014, traditional markets like
The
The
Overseas Labor Management Department said it would help raise the competence
of labor export enterprises; renovate selection and training work for
laborers; and protect legitimate rights of guest workers.
Food
prices rise for Tet Holiday
The
prices of essential foods have been on the rise as Tet nears.
Thanh
Huong, a local in District 11, HCMC, said, "I went shopping early to
avoid high prices as we come closer to the holiday, but the prices were still
higher than they were two weeks ago, and going up every day."
Banana
prices have increased by 50% and pomelo by 10-20% as of late November. One
trader who works out of Ba Chieu Market also said that it is difficult to
keep prices stable. Even though the demand is picking up, the wholesalers
stockpile goods to wait until prices are higher. Since many consumers loosen
their purse strings during Tet, it allows traders to increase profits.
The
cost of sweets, beverages and other specialties will increase by an estimated
10-20% because of the rising price of transport and raw materials.
Nguyen
Phuong, an employee at ACB Bank, said, "Every year at this time the
authorities assure us that they will be able to keep prices stable, but we
watch them rise."
Many
traders in
Some
other merchants said customers are not doing their normal early shopping
because of the tough economic times, low wages and fewer bonuses. However, Ha
Linh, a local who lives on
The
Hanoi Municipal Department for Industry and Trade forecast the consumer price
index (CPI) in January 2014 will pick up by 1.1% compared to the previous
month.
Agriculture
sector eyes US$28.5 bn export value in 2014
The
agricultural sector has set a target of earning US$28.5 billion from exports
this year, including US$8.5 billion in trade surplus, up 3.63% over last
year, said the Ministry of Agriculture and Rural Development (MARD).
To
achieve the target, the Ministry is implementing a restructuring plan to
build the agricultural sector with high added value and sustainable growth
and develop new rural areas to speed up economic development, ensure social
security and improve people’s living standards.
The
MARD is also expected to reduce 130,000 hectares of rice cultivation area and
to grow other industrial crops without expanding coffee growing areas.
The
focus will be also on planting an additional 20,000 hectares of rubber trees
and maintaining the acreage of cashew nut trees aiming to improve economic
efficiency and output.
This
year, the agricultural sector plans to develop breeding activities under new
farming models with the application of hi-technology.
The
fisheries sector aims to produce 6.5 million tonnes of aquatic products
including 2.6 million tonnes from exploitation and 3.6 million from
aquaculture, which will increase production value by 3.5-4.0%.
Special
priority is being given to developing the processing industry which has great
potential to increase the added value of products under a proper production
process from, post-harvest preservation, processing and consumption.
Last
year’s agro-forestry-fisheries export value was estimated at US$27.5 billion,
up 0.7% against 2012 with a trade surplus reaching over US$8.5 billion.
Export
items earning more than US$1 billion included rice, coffee, rubber, cashew
nuts, cassavas, wooden products, shrimps and tra fish.
Tet
market price up 10% in Hanoi
Market
prices are likely to increase by 10% during the lunar New Year (Tet)
holiday, according to the Hanoi Municipal Department for Industry and Trade.
At
present, there’s a rising price of rice due to growing demands on the
Rice
price is predicted to increase by 5%, especially the price of high-quality
rice and sticky rice.
The
price of chicken, pork and beef will also surge by 5-10% to meet the
increasing demand of Hanoians during the nation’s largest festival.
Despite
good weather and an abundant supply of crops, the price of vegetables is also
expected to experience a sharp increase of 10-15%.
Current
economic difficulties have led to a dramatic fall of 0.34% in food prices in
December 2013 – the lowest level reached over the last decade.
The
Hanoi Municipal Department for Industry and Trade forecast the consumer price
index (CPI) in January 2014 will pick up by 1.1% compared to the previous
month.
The
Department is strictly monitoring the supply and demand of essential goods in
the capital city to keep market prices stable during the Tet holiday. It will
also operate trade centres and wholesale markets effectively to ensure
supply-demand balance.
Monetary
policy shortcomings
Despite
lower interest rates, strongly credit growth was mostly seen in the last
months of 2013, proving that capital flow has yet to take effect.
The
Government said 2013’s fiscal and credit policy adjustments accorded with
macroeconomic realities and helped businesses through difficulties
Banks’
interest rates dropped sharply in 2013. Conversely, total payment rapidly
increased (above 16%). Credit growth resulted in better services, a lower bad
debt ratio, steady foreign exchange rates, and high foreign currency
reverses.
Minister
of Planning and Investment Bui Quang Vinh said the interest rate strategy
controlled inflation, relieved some of the pressures burdening businesses,
and improved credit solution efficacy.
The
Government focused its efforts on the priorities of export production,
agriculture, support industry, credit prevention funds, and bad debt
settlement.
Minister
Vinh explained credit growth in the first half of 2013 undercut set targets
because of weak capital mobilisation.
Transport
Minister Dinh La Thang said yearly credit growth was estimated at 10%, with
much of the growth occurring as 2013 drew to a close. The strong flows of
capital so late in the year might cause problems for investment disbursement.
The
Prime Minister has asked for 2014 monetary policy to stay flexible and
effective. The State Bank of Vietnam (SBV) should actively deploy its
available tools to keep a check on inflation and ensure macroeconomic
stability, and credit organisation liquidity.
The
Government leader stressed the need for responsive adjustments of interest
rates and foreign exchange rates that protect the value of the Vietnam Dong
(VND), increase the State’s foreign currency reserves, and improve
He
urged relevant ministries and agencies to carefully manage the local foreign
exchange and gold market. The State must monopolise gold import-export
activity to control the domestic gold market.
The
SBV should provide better credit services, resolve bad debts, establish risk
prevention funds, advance debt restructuring, and expand oversight on credit
organisation operations, Dung said.
Economists
praised the Vietnam Asset Management Company’s (VAMC) early results while
acknowledging shortcomings in approaches to lingering bad debts that
restricted credit growth in the first months of 2013.
SBV
Governor Nguyen Van Binh affirmed the State budget was not used to purchase
bad debts. The VAMC offered better conditions for businesses to have easier
access to new capital loans from credit organisations.
The
VAMC purchased VND30–35 trillion worth of bad debts in 2013, a figure
expected to grow to VND100–150 trillion during 2014.
Binh
believes the bad debts will be restructured ahead of introducing a debt
purchasing market for all local and foreign investors.
According
to the SBV Governor, many investors have expressed an interest in buying
local businesses’ debts.
Tougher
measures are required to deal with debts, protect domestic investor rights,
and boost national economic development.
Dung
Quat: 5.18 mln tonnes of products in 2014
The
Binh Son Refining and Petrochemical Company, which manages and operates the
Dung Quat Oil Refinery, will strive to churn out more than 5.18 million
tonnes of products in 2014.
The
plan was unveiled at a December 31 congress of BSR under the Vietnam National
Oil and Gas Group (PetroVietnam).
With
the output, the company is expected to pocket more than roughly US$5.3
billion, contributing over VND13.7 trillion to the State budget.
The figures
represent increases ranging from 11.4 percent to 14 percent compared with the
target set by PetroVietnam.
To
realise the plan, the company has focused on managing and operating the Dung
Quat Oil Refinery based in the central
Last
year, the company turned out 6.6 million tonnes of products, up 17 percent,
and sold 6.5 million tonnes of products, up 14 percent, earning revenue of
more than VND150 trillion and contributing over VND27.2 trillion to the State
budget, the highest amount over the past four years.
The
company took the initiative in signing contracts and ensuring the stable,
safe and effective operation of the plant, helping stabilise the market.
It
also placed importance on security, environmental protection, fire fighting
and maintenance work.
Binh
Duong sets US$1 bn FDI target for 2014
The
southern
It
will continue infrastructure upgrades in its industrial parks (IPs) and
preference projects according with provincial development ambitions.
Binh
Duong encourages industrial energy-saving technologies, increasing the
localisation rate, promoting product quality and competitiveness, limiting
labour intensity, and reducing environmental impact
The
locality has allocated 300 hectares in Bau Bang Industrial Zone to textile
and support industry projects. It is heavily investing in support industries
to anticipate a high influx of foreign investment as soon as theTrans-Pacific
Partnership (TPP) agreement is signed.
Twenty-six
of the province’s 28 IPs are operational, covering 9,073 hectares, while its
eight industrial clusters cover an additional 600 hectares.
IP
rental rates reached 65%, and industrial clusters’ 41%. Ten IPs enjoy
95%–100% rental rates, including VSIP 1, VSIP 2, My Phuoc, Song Than, Binh
Duong, Viet Huong, and Dong An.
The
province’s IPs invested nearly VND390 billion in infrastructure and leased
nearly 90 hectares of land to new projects in 2013, creating jobs for 12,700
labourers.
Binh
Duong has so far attracted 2,209 projects capitalised at a total of US$8,720
billion.
Hoa
Binh Hydropower Plant generates 175 billion kWh
Hoa
Binh Hydropower JSC was awarded the Independence Order, First Class, in
northwestern
About
75km west of
As a
major national power supplier, Hoa Binh Hydropower JSC, an affiliate of the
Electricity of Vietnam group, has so far produced 175 billion kWh to cater
for the needs of the country and reached an annual output of 9-10 billion
kWh.
Especially
since the formation of the Son La hydroelectric reservoir, Hoa Binh plant has
seen markedly increased generation capacity. It is expected to produce over
10 billion kWh this year. Currently, its output has accounted for
approximately 8 percent of the national total.
The
plant is modernly equipped and designed, able to ensure stable power supply,
especially for Hanoi, as well as fast recovery of major incidents in the
national grid. It also means greatly in the irrigation work and improving
water transport
The
reservoir of the plant has a capacity of nearly 10 billion cu.m and a flood
control capacity of 5.6 billion cu.m (not taking into account the reservoir
in Son La Hydropower Plant). The reservoir participated actively and
effectively in the flood control in the Red River Delta and Hanoi.
The
historical flood peaking at 22,650 cu.m per second appearing in August 1996
was controlled by 42 percent thanks to the reservoir of the Hoa Binh
Hydropower Plant, preventing dike breaking and flooding downstream. Since the
plant entered operation, the people living along the rivers of Da and Red
have never experienced flooding or inundation threats.
The
reservoir is about 200km in length, favourable for trade between provinces in
the Red River Delta and the northwest mountains. Thanks to the reservoir,
water-borne trade is facilitated especially during the dry season. The super
long and heavy devices were easily transported from Hai Phong to Son La
quickly and safely through Hoa Binh, contributing to a 3-year-earlier finish
of the Son La Hydroelectric Plant.
As a
spearhead to the provincial socio-economic development, the JSC usually
contributes a large proportion to the total revenue of Hoa Binh province, up
to 850 billion VND per year. In addition, since 2009, the company has paid
fees for forest environmental services from 150-185 billion VND per year
through the Vietnam Forest Protection and Development Fund.
Hoa
Binh Hydropower Plant has become a popular tourist destination, attracting
thousands of local and foreign visitors to visit each year, contributing to
creating more jobs for local people.
$4.5b
thermal plant takes shape
Northern
Nam Dinh province will support the construction of a US$4.5 billion Hai Hau
thermal power plant in Hai Hau District beginning in 2014, said the
province's chairman Nguyen Van Tuan.
The
2,400MW plant, which is 95 per cent funded by the Republic of Korea's
Taekwang Vina Company and 5 per cent by Vietnamese partners, will span an
area of 251ha in Hai Ninh and Hai Chau Communes.
Chairman
Tuan called the plant one of the key components in the socio – economic
development plan for Nam Dinh Province in 2014, adding that the provincial
government would assist in clearance at the plant site.
Being
designed in two phases, two turbines with a total capacity of 1,200 MW will
be built in 2016-17, while the other two turbines, with the same capacity,
will be built in 2020-21.
The
plant will operate under a BOT agreement (build, operate and transfer) for 25
years, with estimated revenues expected to reach $25 billion.
According
to Pham Quoc Khanh, deputy director of the provincial planning and investment
department, Taekwang Vina was arranging the financing, contracts for the
plant, especially BOT contracts, as well as approving the feasibility report.
Source:
VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
|
Thứ Năm, 2 tháng 1, 2014
Đăng ký:
Đăng Nhận xét (Atom)
Không có nhận xét nào:
Đăng nhận xét