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BUSINESS
IN BRIEF 19/3
VN's
President commends Nikkei Group
President Truong
Tan Sang has cordially acknowledged the contributions of
At a March 17
reception for Nikkei Group President Tsuneo Kita in
The Nikkei Group
has played an instrumental and active role in disseminating information
validating the positive impact of Vietnam-Japan cooperative relations in
forums, such as the Future of Asia conference, which contributes to peace,
cooperation and development in the region, he said.
Mr Kita affirmed
that Nikkei Group has always monitored and disseminated information on
Vietnam-Japan relations and Vietnam’s socio-economic situation as well as
highlighting the country’s efforts in maintaining macro-economy, promoting
economic restructuring and making positive contribution to the region.
As
SBV cuts
interest rates
The State Bank of
Vietnam (SBV) on March 17 announced a reduction in maximum interest rates for
bank deposits in VND and USD.
Accordingly, the
maximum interest rate for non-term and under-one-month term bank deposits
will drop by 0.2% to 1% per year, while the rate will reduce from 7% to 6%
per year for deposits left between one and six months.
The SBV will also
apply a reduction from 1.25% to 1% per year to deposits in USD made by individuals
and will retain the rate of 0.25% for businesses and organisations.
At the same time,
the annual interest rate for longer-term deposits from 6 month and over will
be fixed by credit organisations based on the demand and supply of the
capital market.
The short-term
lending interest rate for five priority areas, namely agriculture, export,
supporting industry, small and medium-sized enterprises and high-tech firms
will be cut from 9 to 8% per annum.
Vietnam
attends Seafood Expo North America
Vietnamese
ambassador to the
Eighteen seafood
pavilions at the event aim to introduce Vietnamese high quality products and
find deeper inroads into foreign markets of the
In his opening
statements, Cuong said that after 20 years of normalized economic - trade
relations, the Vietnam-US trade turnover has increased 130 fold, reaching
US$30 billion in 2013. Of the figure,
Most notably,
aquatic products rank fourth among
He also spoke about
recent legislation passed by the
The ambassador
affirmed that the Vietnamese Government and State have always stood shoulder
to shoulder with the
The event has
attracted roughly 19,000 buyers and providers of seafood and frozen products
as well as manufacturers of modernised specialized machinery and equipment
from over 100 nations around the globe.
Norwegian
businesses keen on Vietnamese market
The
“Norwegian
businesses are especially interested in cooperation in hydro-electricity, oil
and gas, shipbuilding, maritime, and aquaculture”, he continued.
Aamodt made the
comments on the eve of the departure of Norwegian Crown Prince Haakon Magnus
on a working visit to
Aamodt said the
Vietnamese marketplace has drawn a great deal of attention from Norwegian
investors who are looking for a lucrative market to expand their business
operations overseas.
“The two countries
have many things in common, including a long coastal line that promises a
huge potential for bilateral cooperation in the maritime industry,” he
emphasised.
Adding that, he
believes
He also recommends
Vietnamese businesses invest in
For her part, Astri
Sophie Platou emphasized that although
Kjell Martin
Grimeland, Vice President of Norway’s SN Power renewable energy company, said
his firm has been operating successfully in
The Vietnamese
market’s robust growth has offered many excellent opportunities for SN Power,
he said, adding that his company is pouring investment in
SN Power aims to
become an active and long-term trade partner of the Vietnamese electricity
sector, he retorted.
“In recent years,
the Vietnamese Government has made adjustments in the power market that
stimulated SN Power’s operations in the country,” he concluded.
Vietnamese
ambassador to Norway Le Thi Tuyet Mai said
200
businesses to join southeastern trade fair
More than 200 local
and foreign businesses will participate in the Southeastern Region Industry
and Trade Fair & Exhibition 2014 in Phan Thiet city, the southern Binh
Thuan province on April 17.
The information was
unveiled at a press conference in Binh Thuan province on March 17.
Deputy Director of
the provincial Department of Trade and Industry, Ngo Minh Hung, said that the
event aims to introduce the economic development accomplishments, advantages
and preferential policies of Binh Thuan and other provinces in the
Southeastern economic region.
It will give
priority to introducing Vietnamese goods and 90% of products showcased at the
fair will be – Made in
The fair is part of
the Economic Cooperation Programme in the southeastern region and the
National Trade Promotion Program.
The organizing
board expressed hope that the event will help improve businesses’ production
capacity and competitive edge in the international economic integration as
well as promoting trade exchange among businesses to seek new partners and
expand consumption markets.
NZ,
This figure was
unveiled by
The visit will open
up opportunities to strengthen cooperation in trade, investment and education
between the two nations.
With the removal of
tariffs and trade barriers under the ASEAN-
The Trans-Pacific
Partnership (TPP) agreement, which is expected to conclude later this year,
will bring further investment opportunities for both nations.
During the working
visit to
He will also meet
Leading business
representatives from both chambers of commerce and industry attended the
Vietnam-Japan business forum on March 17 with the hope of deepening future
economic ties between the two countries.
In his speech at
the forum, Vietnamese head of state Truong Tan Sang suggested Japanese
enterprises intensify long-term business and investment in
He described the
participation and commitment of Vietnamese and Japanese entrepreneurs at the
biggest forum a testimony to the attention and support from the two
countries’ business communities for Vietnam-Japan economic cooperation and
bilateral ties.
Over the past 40
years and in particular since both nations established a strategic partnership
in 2009, their economic ties have seen vigorous growth in various fields
including politics, economic, culture, tourism, labour, education-training
and science-technology.
The strengthened
partnership and stronger mutual trust have helped bring cooperation between
agencies, sectors, localities, businesses and associations closer, Sang said.
In economics,
Two-way trade
experienced a five-fold increase within 10 years, from US$5 billion in 2002
to nearly US$25 billion in 2012.
Many leading
Japanese groups have been doing long-term business effectively and stably in
The State leader
said
Vietnam is going
ahead with economic restructuring in combination with renewing growth models
based on strategic breakthroughs- fine-tuning market economy institutions,
modernising infrastructure facilities, developing high-quality human
resources and boosting national industrialisation and modernizsation.
In addition,
With the prospect
for finalization of 14 FTAs in the 2015-2020 period,
This will pay the
way for
President Sang
called on Japanese businesses to expand long-term investment in Vietnam in
key areas such as, high technology, energy, shipbuilding, automobile and auto
spare parts production, support industry, information & technology,
electronics, agriculture, human resources training, environmental protection,
public-private partnership (PPP).
With the resolve to
expedite comprehensive international integration, more effective measures
will be taken to perfect market economy mechanisms, legal regulations and
policies and improve competitiveness with a view to building a stable,
favourable and transparent investment environment.
This will offer the
best possible conditions for Japanese investors to run long-term and
effective business in
At the forum,
President Sang also witnessed the signing of a Memorandum of Understanding
(MoU) on cooperation between the Japan Chamber of Commerce and Industry
(JCCI) and the VCCI.
Can Tho
ready for new air routes
The Steering
Committee for Southwestern region and the Ministry of Transport in
coordination with the Can Tho City People’s Committee on March 17 hosted a
conference to discuss ways of accelerating the opening of air routes to Can
Tho.
Steering Committee
for Southwestern region deputy head Nguyen Phong Quang said the conference provided
a good opportunity for airport management agencies to review their
activities, and help investors devise plans to open future domestic and
international air routes to Can Tho city.
The event also gave
the Mekong River Delta region the chance to exploit their potential, attract
tourists, and encourage international investors to seek investment
opportunities in Can Tho and the Mekong Delta provinces.
Representatives
from the Civil Aviation Authority of Vietnam and the Airports Corporation of
Participants were
introduced to localities’ future tourism plans, economic potential and the
requirement for domestic air routes such as Can Tho-Da Nang, Can Tho-Lam
Dong, Can Tho – Khanh Hoa and international routes such as Can Tho – Siem
Riep, Can Tho-Phnom Penh, Can Tho-Bangkok, Can Tho-the Republic of Korea and
Can Tho-Taiwan.
Management agencies
and investors signed a Memorandum of Understanding (MoU) on the exploitation
of flights to Can Tho International Airport.
French
businesses tap medical market in Vietnam
Representatives
from French medical businesses are due to visit
The working visit,
organized by UBIRANCE, will provide an opportunity for French businesses to
introduce and share their technologies, services and experiences with
Vietnamese partners.
These businesses
specialize in plastics and cosmetics surgery and providing medical equipment
to treat allergic and respiratory diseases.
UBIFRANCE Vietnam
said that
At present, 90% of
medical equipment used in hospitals and medical stations across
On March 17, the
Vietnamese Song Thu Company, under the Ministry of Defence and in
co-ordination with the Damen Shipyards Group from the
The tanker named
Mowamba measures 54 metres in length and 12 metres in width.. Its transport
capacity is 800 m3 and it is capable of travelling up to 10 nautical miles
per hour, with horse power of up to 1,500.
Mowamba, is the
third of four contracted tankers by the Vietnamese company and is equipped
with two main engines to serve both port and coastal services.
The vessel
demonstrates the skill and capability of Vietnamese shipbuilding engineers
and marks the successful development of cooperative relations between
Vietnamese enterprises and large foreign groups.
Dong Nai
eyes accessing
The southern
This year, it will
carry out programs on trade promotion, economic restructuring, industrial
promotion, and those on labour and credit to ease business difficulties.
It will organise
business conferences to capitalize on free trade agreements (FTAs) and the
Trans-Pacific Partnership (TPP) agreement due to be signed later this year.
The provincial
Department of Industry and Trade (DIT) Director Le Van Danh says the
He says the
department is striving to keep regular contact with businesses to more timely
address their concerns so as to boost exports to the
To this end, it
will conduct trade promotion programs and strengthen links with
representative offices of economic groups in
Recently, the
provincial People’s Committee sat down with the American Chamber of Commerce
(AmCham) in
Nguyen Ngoc Tuan,
Vice Chairman of the Dong Nai Import-Export Association, says this year the
Since late 2013,
the purchasing power of products, such as garments, footwear, ceramics,
timber products, and machinery and equipment has been on the rebound,
especially in the
Based on the number
of signed contracts for these products so far this year, this trend is
anticipated to continue and bodes well for exports throughout the remainder
of 2014.
In 2013
When the TPP is
signed, the
Key products which
have a tremendous opportunity of finding a footing in the
From now until
2015, the province aims to develop corollary markets, such as
Deputy PM
makes case for
Deputy Prime
Minister Hoang Trung Hai has emphasised the necessity of building
He made the remarks
while leading a Government delegation to the potential construction site on
March 14.
Vice Chairman Tran
Van Vinh of the Dong Nai provincial People's Committee, said the project,
which was approved by the Government in June 2011, will be capable of
receiving 100 million passengers and five million tonnes of cargo each year.
The project
requires around VND20.7 trillion (US$973 million) for the clearance of 5,000
hectares of land, which will affect around 5,300 local households.
Deputy PM Hai said
that the project is of great importance for the socio-economic development of
Dong Nai,
He noted that
households affected by the project should be paid adequate compensation to
allow them to purchase houses in other residential resettlement areas. In
addition, the provincial people's committee and the project investors must
work together to develop vocational training programmes and find new
employment for the 10,000 people of working age who will be affected by the
project.
The deputy PM also
asked the authorities of
Saigon New Port
Corporation has been recognised as a leading business in developing container
terminals, applying modern technology in operation and effectively ultising
all available resources.
Deputy Prime
Minister Hoang Trung Hai presented company representatives with the title of
Labour Hero in recognition of this status at a ceremony held by the
corporation on March 15 to mark its 25th founding anniversary.
The Deputy PM
commended the achievements the corporation has recorded the past 25 years,
making it a successful example of realising Party resolutions on reforming
and developing State-owned enterprises.
Though it started
as an old riverside port with just four wharfs,
In 2013, the
corporation contributed VND504 billion (US$23.7 million) to the State budget.
The import-export container throughput of the port has accounted for more
than 80% of market share in the
Reward
interest rate falls to 6 percent
Reward interest
rates for VND will reduce from 7 percent to 6 percent per year for short-term
deposits of six months or less.
The reward interest
rates for US dollars will decrease from 1.25 percent to 1 percent per year,
said Governor of the State Bank of Vietnam Nguyen Van Binh.
The State Bank also
cut lending interest rate for VND from 9 percent to 8 percent per year in
several areas. The rate will be only 7 percent in an agricultural field.
Management interest
rate of the State Bank has kept unchanged over the last month but commercial
banks have continuously reduced their reward interest rates for VND.
Short term deposits
have the reward interest rate lower than the ceiling rate of 7 percent as per
regulation. The rate was as low as 5 percent at Bank for Foreign Trade of
Vietnam and 5.8 percent at Bank for Investment and Development of Vietnam.
Processing,
manufacturing industry attract most FDI projects
Processing and
manufacturing industry has attracted the most foreign direct investment (FDI)
projects in 2014, according to the Ministry of Planning and Investment’s
Foreign Investment Agency.
About 62
newly-registered FDI projects reached US$1.178 billion, accounting for 76.5
percent of total investment capital in January and February.
The country has 122
newly licensed projects with total investment of US$831 million, equal to 80
percent compared to same period last year as of February 20. Forty-one
project investors increased capital to US$709 million, equal to 23 percent of
the same period last year.
However, FDI
projects have disbursed US$1.12 billion, up by 6.7 percent against the same
period last year.
SBV to
spend VND8 trillion on rice
The State Bank of
Governor of State
Bank of
The Vietnamese
media have reported that rice prices in the Mekong Delta, considered
"rice bowl" of the country, have dropped to some VND3,800-4,000 per
kilogramme, a record low given the high volume of the harvest. The
state-backed rice storage programme is aimed at helping keep rice prices from
falling further.
Minister of
Agriculture and Rural Development, Cao Duc Phat, predicted that paddy rice
prices will continue to fall, and proposed that the government buy one
million tonnes of rice between March 15 and April 30.
Also speaking at
the conference, Prime Minister Nguyen Tan Dung approved Minister Phat’s
proposal. The PM added that if the government were to buy rice, the programme
should ensure a profit of at least 30% for farmers.
Government leaders
agreed on the recommendation of local authorities that agricultural
restructuring is needed by a reduction of agricultural areas devoted to rice
cultivation and an expansion of other crops. However, the PM said that
localities must carefully consider which crops should replace rice.
VND10
trillion for livestock farming revamp
The Ministry of
Agriculture and Rural Development has plans to set aside over VND10 trillion
to support local households to switch to a larger-scale livestock farming
model until 2020, said Hoang Thanh Van, head of the ministry’s animal
husbandry department.
Speaking at a
seminar in
Meanwhile,
households still make up a high proportion in the nation’s livestock farming
sector and are vulnerable to market shocks arising from the country’s
integration process, Tam said.
This supporting
scheme encourages households to develop breeding in a professional and grand
way to increase productivity, lower prices and improve economic efficiency.
In addition, farmers will be able to secure food hygiene and safety and
environmental protection.
The project will
apply to all farming households, excluding those providing breeding services
for large groups.
Farmers eligible
for the project will get assistance in breeder animals, veterinary medicine,
animal feed growing and production, facilities, supply chain development and
trade promotion.
Van said the nation
still has around 12 million livestock farming households and that it is
difficult to help all of them shift to larger-scale farming by 2030.
Therefore, they still need support in production and veterinary medicine to
survive competition from imported products.
To prevent farmers
from turning back to the small-scale family-run business model, Nguyen Thanh
Son, head of the National Institute of Animal Sciences, said the ministry
should set out conditions. For example, farmers must raise animals in
specific areas to prevent pollution, meet animal quantity criteria and
present long-term farming schemes to local authorities.
ATM site
rentals high
Local banks are
paying high rentals for locations to set up their automated teller machines
(ATMs).
Saigon Forestry
Import-Export Company offers a space for two ATM machines in HCMC’s Binh
Thanh District at VND10 million a month while banks will have to pay
electricity bills.
Sacombank earlier
removed two ATMs from the area due to the central bank’s restrictions on ATM
numbers, a source from the company said.
Some sources from
large banks told the Daily that there was a price frame for ATM space rentals
earlier but now rentals should be negotiated. Rents depend on various factors
such as location, street, leasing duration and area.
Rentals have
declined in recent years due to the sluggish real estate market but those in
the downtown area remain high. For instance, an ATM booth in the center of
town costs VND16-18 million a month while rents in outlying districts such as
12 and Binh Chanh are just half this level, said an executive of Eximbank.
Suspended
resort projects in
Speaking to the
Daily on March 13, the director of the department, Tang Viet Cuong, said the
department would meet with investors of those resort projects on March 20 to
assess damages.
Last week the
Government Office announced Deputy Prime Minister Hoang Trung Hai’s decision
to suspend the Ke Ga port development project as proposed by the Ministry of
Industry and Trade.
Besides, as
instructed by the Deputy Prime Minister, the government of Binh Thuan will
coordinate with Vietnam National Coal and Mineral Industries Group
(Vinacomin), the Ke Ga port project owner, in the damage assessment and
compensation process.
Cuong said that
after damage checks are complete, the provincial government will work with
the investors of the 12 projects to set compensation rates before reporting
to the Prime Minister.
Vinacomin earlier
announced a suspension of the deepwater seaport project in
The 12 resort
projects in the area were forced to stop construction and relocate to make
room for the port project. When the port project was suspended, the
provincial government and Vinacomin agreed to compensate 100% of damages for
those resorts whose remaining asset value is below 30%.
In a complaint sent
to the provincial government in mid-2012, the investors put their damages at
an estimated VND800 billion.
According to Nguyen
Ngoc, vice chairman of
Investors of some
resort projects told the Daily on March 13 that they still wanted to press on
with their projects if compensation rates are acceptable.
Nguyen Duc Dang
Toan, investor of Blue World Resort, one of the most affected projects, said
his resort had suspended operation since December 2007.
Fish
farmers earn profits but still in trouble
Prices of
Pangasius, or tra fish, in the Mekong Delta have inched up recently, giving a
small profit margin to farmers, after staying low over the past two years.
Farmer Nguyen Van
Doi from Tien Giang Province said tra fish is now sold to export processing
enterprises at about VND24,000 a kilo, a rise of VND1,000 to 1,200/kg against
last week.
Ha Van Tinh,
general director of Dai Thanh Seafoods in Tien Giang Province, confirmed the
price increase after a long time of staying low. His company now buys the
fish at VND24,000 a kilo if payment is made within a week and VND24,200 from
the second week to one month.
According to
statistics of An Giang Seafood Processing and Feeding Association, the
standard tra fish for export is priced at VND22,500-VND24,000 a kilo
depending on the method of payment.
Nguyen Ngoc Hai,
chief of Thoi An Cooperative, said prices in Can Tho’s O Mon District range
from VND23,000 to VND24,000 a kilo. “At this rate, farmers can earn little
profit but the abandoned fish farms still account for 40% of the total area
due to poor prices over the past two years,” he added.
According to Tien
Giang’s Fishery Office, after deducting all the relevant costs, farmers can
earn VND1,000 to VND2,200 a kilo. The average productivity is nearly 800 tons
in seven or eight months for each hectare. As such, farmers can earn between
VND300 million and VND650 million a hectare at this point.
Nguyen Van Sang, a
merchant of tra fish in An Giang Province, said from the beginning of this
year, prices have undergone minor fluctuations and now are still low.
Statistics of Dong
Thap’s Department of Agriculture and Rural Development show the area for
farming Pangasius reached 988 hectares in the first two months of this year,
a decline of 4% year on year. Output however has reached 27,800 tons, a rise
of 6% compared to a year ago.
The Ministry of
Agriculture and Rural Development said as of end-February 2014, the
production of tra fish and prawn had reached 323,000 tons and no decrease was
recorded.
Though farmers can
make a small profit, small-scale farming households do not have products to
sell partly because of previous losses which left them no capital for the
next season. Therefore, a shortage is predicted to take place this year,
experts said.
Tinh of Dai Thanh
Seafoods added the prices might edge up to VND25,000 a kilo due to limited
supply. Enterprises are lacking material and now they have to scale down
operations while the demand in other countries is recovering.
Duong Ngoc Minh,
vice chairman of the Vietnam Association of Seafood Exporters and Producers
(VASEP), said prices of imported ingredients to make feed have risen 10% to
20% in the first months of 2014, which will lead to higher production costs
for farmers and higher tra fish prices in 2015. Therefore, farmers must be
wary and cooperate with enterprises to avoid risk.
Pepper
producers urged not to hastily sell product
Local pepper
farmers should not sell out their stock now as the period between February
and April is the annual harvest of pepper and importers normally seek to buy
large amounts of the product at low prices, said the pepper association.
According to the
Vietnam Pepper Association (VPA), prices of Vietnam’s pepper have tumbled
from VND160,000-170,000 a kilo at the end of last year to around VND120,000
now.
Meanwhile pepper
prices in India, Indonesia, Malaysia and other big consuming markets like
Europe and America have since early last year stood at US$8,000-US$10,000 per
ton, or VND170,000 to VND210,000 a kilo.
When the harvest
just starts, farmers tend to sell out their farm produce to cover the
investment cost and a large amount of the product will be sold on the market,
causing a reduction in prices, while importers may take advantage of this by
setting out higher quality requirements to push down the price, said VPA.
In recent years,
Vietnam has emerged as the biggest exporter of pepper in the world. Last
year, its pepper output accounted for 30% of the world’s total while its
supply made up 50% of global commercial volume. Therefore, the association
said, Vietnam now has advantages to sell pepper at higher prices in the world
market.
Early this month,
VPA did research in six provinces in the Central Highlands and southern
provinces including Ba Ria-Vung Tau, Dong Nai, Dak Nong, Dak Lak, Gia Lai and
Binh Phuoc as the key pepper-growing areas in Vietnam.
It predicted this
year’s domestic pepper output at around 120,000-125,000 tons, the same as
last year. VPA chairman Do Ha Nam said the global pepper yield this year
would be the same as last year, at 340,000 tons.
Information from
the Ministry of Agriculture and Rural Development showed that in January,
Vietnam exported 19,000 tons of pepper worth US$132 million, down 8% in
volume and 5.5% in value versus the same period last year. Half the amount
went to Singapore, the U.S. and India during the period.
Exports of
local firms rise slowly
Exports of domestic
firms in the first two months of this year increased by a slight 4.4%
compared to 21.1% recorded by foreign direct investment firms.
According to the
latest statistics from the General Department of Customs, domestic
enterprises obtained a total export turnover of US$8 billion while FDI firms
netted US$13.2 billion in export revenue.
FDI firms took the
lion’s share in most products that had high export revenue and growth during
the period. For example, 99.7% of export turnover of mobile phones and
components, which posted total export value of more than US$3.4 billion in
the two months, belongs to FDI firms.
They also made up
60% of US$2.9-billion export turnover of apparel and 75.3% of US$1.4-billion
turnover of footwear and leather exports during the first two months while
these products used to be the main export products of domestic firms.
HCM City
approves landscapes for two artery roads
The HCMC government
on Tuesday approved two urban blueprints of scale 1/2000 for Hanoi Highway
and Tan Son Nhat – Binh Loi – Outer Ring Road Highway.
The former is 15km
long starting from District 2’s Saigon Bridge to District 9’s cultural park
with 10 functional sections.
Along Hanoi
Highway, a new urban complex with a total area of 106 hectares featuring
industrial facilities will be developed at Phuoc Long Port Complex in Thu Duc
District. Many manufacturing facilities causing pollution will be relocated
such as plants of Ha Tien Cement and Southern Steel.
In addition, Hanoi
Highway landscape will be harmonized with some specialized centers along the
route such as Rach Chiec Sports Center, District 9’s Saigon Hi-tech Park and
Cultural Park as well as the Vietnam National University campus.
The latter,
official named Pham Van Dong Street lately, is 15.33km long, running
through five districts including Tan Binh, Go Vap, Phu Nhuan, Binh Thanh, Thu
Duc with 10 functional sections.
Areas along the
highway will be oriented towards modernization with industrial parks to be
relocated and residential quarters upgraded, while residential buildings in
combination with trade centers will be developed.
The landscapes
along Tan Son Nhat – Binh Loi – Outer Ring Road highway will be preserved to
promote historical and cultural constructions such as areas along the Saigon
River.
Companies
set to pay dividends
Sai Dong Urban
Joint Stock Corporation (SDI) will spend VND997 billion (US$47.5 million) in
cash to pay dividends to its shareholders at a ratio of 83 cent.
This means that
each stakeholder will receive VND8,310 ($0.39) per share. SDI shares were
traded at VND21,600 ($1.02) yesterday.
Approval of the
corporation's shareholders assembly will be solicited from Sai Dong Urban's
Management Board at the extraordinary meeting scheduled at the end of this
month.
As a member of the
real estate giant Vingroup, Sai Dong Urban Corporation, with charter capital
of VND500 billion, invested in the Vinhomes Riverside project in Ha Noi's
Long Bien District.
In 2013, Sai Dong
Urban Corporation reported revenue of VND5.019 trillion ($239 million) and
after-tax profit of nearly VND1.16 trillion ($55.23 million). This was 56.8
per cent and 274.5 per cent higher, respectively, than the previous year. The
earnings per share of SDI was VND9,666 ($0.46).
Technology giant
FPT's management board also passed a resolution to pay cash dividends at a
ratio of 30 per cent for 2013, 10 percentage points higher than the goal of
20 per cent set at the FPT's annual shareholder meeting held that year.
Half of the
dividends (15 per cent) were advanced last year. The rest will be paid to
shareholders in the second quarter of this year if the general shareholders
assembly approves the ratio.
Also, FPT's
management board has targeted a dividend payment ratio of 20 per cent for
2014, together with a plan to issue shares for its workers from 2014 to 2017,
with a value below 0.5 per cent of its charter capital each year.
FPT shares were
traded over seven consecutive days, showing gains before stagnating
yesterday.
A string of listed
companies also announced dividend payout ratios recently, including CNG Viet
Nam, Kinh Do Group, Song Hong Construction Company and Vicem Packaging Bim
Son Joint Stock Company.
Local commercial
banks are also gearing up to announce a dividend payment plan for 2013.
Sai Gon Thuong Tin
Bank, or Sacombank, took the lead, with a dividend payment of 16 per cent.
Half of this will be paid in cash and the rest in shares, so as to receive
additional capital of VND1 trillion.
The Bank for
Foreign Trade of Viet Nam, or Vietcombank, is expected to pay dividends in
shares at a rate of 12 per cent.
Last year, Viet Nam
Bank for Industry and Trade, or Vietinbank, also took the lead to pay
dividends in cash at 16 per cent. This year, it is expected to pay a dividend
in shares of 10 per cent only.
According to Phan
Dung Khanh from Maybank Kim Eng Securities, dividend payments in shares are
advantageous to businesses. Instead of having to set aside a huge sum of cash
for shareholders, businesses can keep part of the cash to increase charter
capital and can use that cash for other purposes.
Low profits were
another reason why bankers are cautious as they set out to pay dividends for
2013. Le Hung Dung, chairman of Eximbank, told Vnexpress online that this
year, his bank expected to pay dividends between 4.8 to 5 per cent.
He attributed this
low dividend value to the pressure for capital preservation and said that
this year, the bank had to set aside a large amount of capital for it. He
assured investors that dividends would be higher next year.
According to many
experts, unlike previous years, investors are likely to prefer receiving
dividends in shares, thanks to the recovery of the stock market. He added
that if the stock market recovers, the value of shares will also be higher.
Despite positive
profits in 2013, some commercial banks have not yet announced their dividend
payment plans. Senior leaders of the Military Bank and Sai Gon Ha Noi Bank
have said that payment plans are being considered.
REE Corp
targets higher turnover in 2014
REE Corporation
aims to earn VND2.654 trillion, or $126.3 million, in turnover and VND892
billion, and $42.4 million, in after-tax profit in 2014.
This represents an
increase of 10 per cent in turnover, but a drop of nearly 8.6 per cent in
profit over last year's results.
The corporation
also plans a dividend payout ratio of over 12 per cent of its charter
capital.
Song Da 19
in danger of being delisted
The Ha Noi Exchange
has asked Song Da 19 Joint Stock Company (SJM) to explain the losses it
incurred in 2011, 2012 and 2013.
According to the
2013 financial report that Song Da 19 recently submitted to the capital
city's exchange, its after-tax profits were negative for three consecutive
years.
According to the
Decree 58/2012/ND-CP, a stock would be delisted compulsorily in case the
company incurs losses for three consecutive years.
The exchange had to
explain the causes and measures taken to deal with the condition of
compulsory delisting, the exchange said.
Real
estate, construction stocks lead the way
Real estate and
construction stocks attracted investors and comprised seven of the top 10
stocks by liquidity on both the national stocks exchanges in the first two
months of 2014.
According to
VnExpress.net's survey, these stocks included PetroVietnam Construction Joint
Stock Corporation (PVX), Tan Tao Group (ITA), FLC Group (FLC) and Sacomreal
(SCR).
The rest three of
the top 10 stocks were from the financial sector, including the Sai Gon – Ha
Noi Bank (SHB).
A total of 6.3
billion shares changed hands on the both bourses in the first two months of
this year, equivalent to 25 per cent of the total figure last year.
Bond index
to be launched in Q2
The Ha Noi
Exchange said that the draft construction and management principles of the
bond index have been completed and that the index would be launched in Q2
2014.
The index for
treasury bonds are also being drafted and is expected to be introduced in the
second quarter.
After nine years of
operations, the northern exchange now has 377 listed companies with a total
value of VND87.5 trillion, or US$4.16 billion. The average trading value in
the first two months of this year reached VND650 billion, or $30.9 million.
Ha Noi
approves two new urban areas
The Chairman of the
municipal People's Committee Nguyen The Thao has approved the plans for
building two new urban areas in Dong Anh District's Tien Duong and Uy No
communes.
Under the plan
details, the Tien Duong Urban Area would be built in an area of 125 ha with a
population of 15,500 people, while the Uy No Urban Area would have 81 ha and
12,200 people. The two urban areas come under the capital's plans for 2030 as
approved by Prime Minister Nguyen Tan Dung, with a vision for the year 2050.
Da Nang to
recall land from slow business projects
The central Da Nang
City has announced that businesses, which were allocated lands for production
but are going slow on starting operations, would have to return those areas.
The city also asked
those who have invested in seaside tourism areas to start construction by the
end of the first quarter of 2015.
Building
corporations to submit debt resolution
The Ministry of
Construction earlier this week sent a document to its building corporations,
asking them to submit plans for debt resolution to the ministry before April
25.
The State holds 100
per cent of the charter capital in the building corporations. The frozen
property market in the past few years has made several State-owned (SOEs)
Construction Corporations suffer big debts due to high inventory. The
Government therefore issued the Decree 206/2013/NÐ-CP, dated December 9,
2013, on debt management at SOEs.
The ministry also
asked the corporations to implement the decree within 90 days.
Phu Quoc
Island to get five-star resort
The Hoa Binh
Tourism Company and Blue Ocean Company have begun construction of a resort
and an ecological tourism area in the southern Kien Giang Province's Phu Quoc
District.
Covering an area of
five ha, the five-star Hoa Binh resort is owned by the Hoa Binh Tourism
Company which has invested VND1 trillion, or US$47.6 million, in it. The
resort will have more than 300 rooms and a 12-storey commercial centre which
will offer shopping and entertainment sections.
The Blue Ocean
Ecological Tourism Area will have 40 villas in an area of 10 ha. The first
phase of the two projects is likely to be completed by the end of next year.
Source: VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
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Thứ Ba, 18 tháng 3, 2014
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