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BUSINESS
IN BRIEF 20/3
Japanese
firms selected for high-tech road project
Three Japanese
firms have been awarded a contract to supply construction and transport
monitoring and supervision equipment for a south-north expressway project in
The Vietnam
Expressway Corporation (VEC) on March 18 announced that Toshiba,
The ITS will be
applied to a 55km road section from
Under the signed
contract, Toshiba will supply ITS equipment,
The project is
expected to ease traffic congestion that negatively affects economic
development in southern
B.Braun
eyes
Germany-based
B.Braun Group, one of the top healthcare companies in the world, plans to
invest in a dialysis centre in
An executive of the
group revealed the information at a working session with Hanoi People’s
Committee leaders on March 18.
He said B.Braun
manufactures and supplies medical equipment to hundreds of dialysis centres
worldwide, including 50 in
The group has
already operated in
Vice Chairwoman of
the Municipal People’s Committee Nguyen Thi Bich Ngoc welcomed B.Braun’s
proposal and said Hanoi is considering providing 2 hectares of land in Ha
Dong district to the group to carry out the project.
She said
The capital city
encourages companies to invest in community health care to help ease overload
in hospitals and improve medical service quality, she said.
Knight Frank said
that
Additionally, the
government is successfully shifting the economic model away from agriculture
to more modernised technology while containing inflation, which facilitates
the consolidation of growth and create opportunities to raise individual
citizens’ wealth.
The country’s
largest urban centre,
Can Tho to
host
An exposition
entitled – Mekong Expo 2014 – casting the spotlight on Made in
Le Thi Kim Thu,
Director of the Can Tho International Exhibition and Fair Company, said the
fair aims to provide domestic enterprises an avenue to display their wares to
the foreign business community.
Additionally, it
hopes to provide both domestic and foreign enterprises an opportunity to
expand cooperative relations and in turn boost the economy, she added.
She said on display
will be new interior woodwork, agricultural development achievements, trade
and service promotion solutions, and industrial products serving agricultural
and rural development.
The exposition will
run through May 2.
Vietinbank
to open branch in Laos
The Vietnam Joint
Stock Commercial Bank for Industry and Trade (Vietinbank) will open a
transaction office in
The office, the
first of its kind in
Vietinbank hopes
that the transaction office will meet with customer’s satisfaction and create
more favourable conditions for Vietnamese enterprises to do business in
Champasak is
The province has
historically also attracted a large number of Vietnamese people to live and
do business.
In February 2012
VietinBank established a branch in
March CPI
sees lowest increase in a decade
The country’s
consumer price index (CPI) will register an insignificant increase this month
due to low demand, experts have forecast.
The HCM City
Securities Company (HSC) this week said that the CPI is likely to inch up
only 0.8% against the previous month, the lowest rise for the past decade.
Compared with the same period last year, the index will rise 4.93%, it
anticipated.
HSC said that the
CPI rise was lower than previously expected due to low demand and the close
price management by the relevant agencies.
The Government in
its regular meeting late last month also decided to adjust down the annual
inflation target to 6% from 7% as estimated early this year.
According to the
online news portal Vietstock, Tran Hong Minh, head of Vietcombank Securities’
Market Researcher Division, also stated that there would be no significant
change in inflation this month, adding that the index will rise between 0.05%
and 0.1%.
Nguyen Mai Phuong,
director of the Maritime Bank Securites’s Researcher Division, said that
March’s consumption demand will be lower than February which witnessed the
country’s largest holiday of Lunar New Year.
The CPI in February
edged up 0.55% against the previous month, marking the lowest price hike in
the past decade, even though February often sees the CPI rise to the highest
level of the year as the domestic demand is very high.
The CPI rise this
month will reflect the petroleum price hike of VND300 per litre late last
month, Phuong said, adding that the price rise might also affect transport
fares and restaurant prices.
Phuong said that
the rise of CPI to date this year was very low as consumers had tightened
their belts, while the prices of goods were stable and reasonable.
She forecast that
the CPI might hit the bottom in the first quarter and then pick up in the
second quarter.
HSC said that the
low CPI was one of the reasons for the State Bank of
The Vietnam
Logistics Business Association (VLBA) and the Vietnam Logistics Institute
(VLI) launched the Vietnam Logistics Index in
Do Xuan Quang,
Chairman of the VLBA and the ASEAN Federation of Forwarders Association, said
the logistics sector generates US$20 - 22 billion a year, representing 20.9%
of Vietnam’s gross domestic product.
VLI Director Dang
Vu Thanh said that the index, based on other countries’ experiences, is
updated daily, thus providing more information about listed logistics
companies for investors and investment funds.
On this occasion, a
programme voting the top 25 logistics companies in
According to the
VLBA, most of the 1,200 logistics businesses in
Trade-economics
– key pillar in Vietnam-Sweden ties
Swedish Secretary
of Foreign Affairs Frank Belfrage reiterated on March 18 that trade-economics
has become an important pillar in Vietnam-Sweden relations over the past 45
years.
While meeting local
media in
He said the success
of Swedish enterprises in
Meanwhile, about
30,000 Swedish tourists visit
Regarding the
progress of the Vietnam-EU free trade agreement, Belfrage said the deal is
expected to be reached this autumn after being approved by all the 28 EU
members.
Apart from
concluding the planned negotiations, it is also important to ensure a
comprehensive agreement benefiting all involved parties, he said.
The EU is the
largest market of
He hoped that the
deal will create more opportunities for Swedish and other European investors
who could introduce new technologies to the 90- million-strong market of
Ecuador
promotes trade ties with Vietnam
This is part of a
memorandum of understanding on economic and trade cooperation between
The Ecuador Foreign
Ministry said the signing of the MoU is to prepare for the President Rafael
Correa’s visit to
The Ecuador
Government’s statistics reveal that two-way trade turnover is currently
US$100 million annually.
A seminar on
improving investment environment was held in
The seminar
provided a good opportunity for investors, experts, researchers and lawmakers
to discuss issues related to seaport infrastructure development, foreign
operations in the banking sector, price management, and a price law in
pharmaceuticals and nutritious food.
DSI Director Bui
Tat Thang stressed
He said to support
the process, EuroCham issues a white book annually, which gives a
comprehensive and transparent account of economic effects on European
businesses in
If these issues are
resolved, they will help increase FDI capital and tax revenue, generate more
jobs, and create better quality products for Vietnamese citizens, Thang said.
At the seminar,
EuroCham experts suggested that
The DSI will gather
opinions and incorporate common ideas into short and long-term policies so as
to improve the investment environment in
Norway
seeks maritime opportunities in Vietnam
Harald Neavdal,
Head of the Maritime and Oil & Gas at Innovation Norway, expressed his
desire at a seminar in
Terje Lillenes,
Managing Director of the Norwegian Maritime Exporters, introduced
Norwegian
businesses want to cooperate with
He added
Norwegian experts
said equitisation of the Vietnam Maritime Corporation (Vinalines) in the
2014-2015 period will provide an excellent opportunity for Norwegian maritime
businesses to increase cooperation with
They said seaports
managed by Vinalines are operating effectively and if Vinalines is able to
reap even greater profits if these seaports are better managed and exploited.
Kristine Pedersen,
senior adviser to the Norwegian Ministry of Trade, Industry and Fisheries,
acknowledged
Challenges
to safe vegetable production
Despite a huge
demand for healthy clean produce, vegetables meeting Vietnamese Good
Agricultural Practices (VietGap) standards are in short supply on the market.
Deputy Minister of
Agriculture and Rural Development Nguyen Thi Xuan Thu underlined the fact at
a March 18 seminar in
Thu said extensive
application of VietGap in plantation is a key solution for the national
agricultural development strategy.
Thu noted applying
GAP poses a number of difficulties in market development, organisation and
management due to small-scale and scattered production. In addition, some
producers and investors do not strictly follow production regulations,
adversely affecting consumption.
Australian GAP
expert Scott Ledger said GAP application is essential as consumers nowadays
increase demand for safe and wholesome food.
He posited each
country establishes its own GAP standards based on such matters as
environmental sanitation, product quality, welfare in production, and
workers’ health. However, it takes time to set these standards and
To ensure food
safety, participants proposed applying VietGap, ASEANGap and GlobalGap and
tightening the use of chemicals such as fertilisers and pesticides in
plantation.
They also said
The factory is
currently designed to provide Honda and Yamaha with 23 million motorbike
spare parts in the local market annually. Meanwhile, according to the Hoa
Binh media, the factory plans to earn an annual revenue of $28.2 million and
hire 242 local employees.
Located in the
A fair on
information technology and telecommunications will be held from August 30 to
September 1 at the Da Nang Fair and Exhibition Centre in
Eighty enterprises
operating in different fields such as computer software and hardware,
telecommunications and electronic components will participate in the fair.
Conferences on
technology and a job fair will also be organised. The event is expected to be
held annually to introduce the latest products by technology and
telecommunications enterprises which will attract foreign and local visitors.
Truong Hai
Auto unveils New Sorento
The Truong Hai
Automobile JSC (Thaco)has introduced the locally made new Kia Sorento at
showrooms across the nation this month.
The Sport Utility
Vehicle (SUV) is the second design released by the brand, which is being
manufactured at the Thaco Kia Plant in the Truong Hai-Chu Lai Auto Complex in
the central
The Truong Hai
Company has set aside a target to manufacture and assemble 36,500 vehicles,
with a year-on-year increase of 34 per cent, including 16,200 trucks, 1,500
buses, and 18,800 passenger cars.
Quang Binh
calls for local, foreign investors
The province is
looking for investment in 37 projects from local and foreign businesses this
year, according to the People's Committee of Quang Binh.
Investment projects
will focus on developing new urban areas in Bao Ninh and Phu Hai of
MPI moves
to expand PPP categories
The Ministry of
Planning and Investment (MPI) is eying to expand the categories of the
much-vaunted Public-Private Partnership (PPP) model of investment.
In an attempt to
fix any loopholes in the legal framework and lack of efficiency in previous
policies, MPI is on its way to draft a new policy for synchronising and
updating investment policies.
The new decree will
replace Decree No 108/2009/ND-CP and Decree No 24/2011/ND-CP on
Build-Operate-Transfer (BOT) contracts and Build-Transfer (BT) and dismiss
Decree No71/2010/QD-TTg on pilot investment in the PPP.
In the draft that
aims to mobilise more civil capital and ease overloading in certain sectors,
the ministry has rewritten regulations related to the State's participation
in PPP projects. The assessment and disbursement of the state capital under
PPP will strictly follow the regulations of using state capital and state
assets that are allocated for development.
The draft allows
more areas of work under PPP, including urban transport infrastructure, port
and logistics, waterway constructions, and energy production. Also included
are information and communications infrastructure, infrastructure for
economic and industrial zones, rural and agriculture, and commerce. Housing,
resettlement, and public services will also be added.
The ministry plans
to build the new policy on par with what is followed at the international
level.
In fact, the lack
of a comprehensive legal framework for PPP, the Government's lack of
experience and shortage of funds are major obstacles, which have prevented
investors, especially foreigners, from taking part in PPP projects in
While the country
needs about US$15-16 billion each year for infrastructure development, public
spending can only provide about 50-60 per cent of the required funds.
The country is
putting in major efforts to innovate public investment in infrastructure
development, by shifting from heavy reliance on the dwindling State budget to
mobilisation of private resources.
However, it is
clear that
E-payment
catches on with VN consumers
Vietnamese
consumers have welcomed electronic card ownership and use, according to the
results of a survey conducted by Visa.
The Payments and
Cards Market in
Respondents, when
asked what made them feel they were being smart with their money, credit
cards came out on top at 53 per cent, while debit cards and cash scored 38
per cent and 30 per cent, respectively.
Similarly, credit
and debit cards registered as equal in terms of consumers feeling as if they
were doing the "right thing" with their finances, according to the
results of 1,200 interviews conducted in Ha Noi, Hai Phong,
Respondents felt as
if they were living within their means, regardless of whether they were using
credit or debit cards or cash.
"These results
reflect a very positive outlook for the growth of electronic payments in this
rapidly developing market.
In an economy that
is heavily reliant on cash, these figures are certainly encouraging,"
said LorijonBacchi, Visa country manager for
The study also
uncovered some interesting attitudes towards cash, which is currently the
predominant payment method in
Around 19 per cent
indicated they felt vulnerable while carrying cash, and only 4 per cent felt
vulnerable carrying credit cards.
"It's
noteworthy that the figures show consumers in Viet Nam acknowledging the
inherent disadvantages in relying on cash, with the majority of respondents
indicating they felt vulnerable carrying physical money than payment cards.
This study also revealed that Vietnamese consumers are becoming much more
knowledgeable about card usage and financial management," added Bacchi.
"According to
another research conducted by Moody's Analytics, electronic payments added
US$1.2 billion to the GDP of Viet Nam between 2008 and 2012. Given that the
TNS study points to significant potential for growth within electronic
payments in the country, it appears that the time is certainly right to start
transitioning the economy through the ‘non-cash decree' with a view to reduce
the country's reliance on cash," she said.
There are still
room for growth in card ownership and usage as only 4 per cent of the
population (in the four cities) own credit cards, but the rate for debit
cards stands at 42 per cent.
However, lack of
knowledge about the benefits of credit cards and the procedure were the main
barriers to signing up, according to the study.
Central
bank to cut key interest rates
Several key
interest rates will be cut to help reduce lending rates and combat stagnant
production and negative credit growth, according to the State Bank of
Vietnamese dong
deposit interest rate caps will be reduced to 6 per cent yearly from the
current 7 per cent as of today, while refinancing rates will be cut to 6.5
per cent from the current 7 per cent.
Also, interest
rates in US dollar deposits will be slashed from 1.25 per cent to 1 per cent
yearly.
The central bank's
move was previously forecast for the past week, as many commercial banks
consecutively cut both their deposit and lending interest rates, not only for
short-term, but also long-term deposits. Previously, banks often cut only
short-term deposit rates.
After the rate cut
by Ocean Bank, ACB, and Techcombank, two others, Sacombank and Eximbank, also
adjusted downwards their deposit rates last week.
After a cut of
0.1-0.3 per cent on Tuesday, Sacombank's short-term deposit rates currently
remain at 6.25-6.3 per cent. This was the bank's third cut in the past month.
Eximbank's highest
rate on 24-month deposits is also only 8 per cent, after the cut on
Wednesday. Rates on 18-month deposits inched down to 7.7 per cent, while the
one-month deposit rate remains at only 5.9 per cent.
Though not making
the cut in the past week, deposit rates at major State-owned commercial banks
remain lower than the central bank's interest rate cap. Rates for one-year
deposits at the Bank for Investment and Development of Viet Nam are only 5.8
per cent, while Vietcombank's are 5 per cent.
Despite the rate
cut, industry insiders still expect that banks will remain an attractive
capital mobilisation channel and depositors will turn to long-term deposits,
instead of current short-term deposits.
The central bank's
cut is understandable in the context of stagnant production and steady
capital mobilisation, while credit growth was negative 1.66 per cent as of
February 20, 2014. With this situation, many banks that face capital
redundancy may rush to buy Government backed bond.
According to
financial experts, banks can further decrease lending rates by 1 to 2 per
cent per year.
Obstacles
slow coffee replanting
The replanting of
old coffee trees, especially in the Tay Nguyen (Central Highlands) region, is
making slow progress because of difficulties like diseases and a shortage of
quality coffee strains and funds, experts have said.
The country has
662,000ha of coffee, with plants on 86,000ha being more than 20 years old and
on another 140,000ha, 15-20 years old, according to the Plant Cultivation
Department.
The Tay Nguyen
region, which accounts for 95 per cent of the country's total coffee area,
replanted less than 13,000ha last year, according to statistics from
agriculture departments in the local provinces.
Around 200,000ha
need to be replanted by 2020. Dak Lak accounts for the largest area of
85,000ha, followed by Lam Dong (59,600ha).
The task has slowed
up in recent years, with competent agencies blaming it on a shortage of
funding and quality coffee strains, replanting techniques, and the adverse
effect on the income of farmers during the replanting.
Besides, many of
the replanted trees become diseased within two or three years after being
plagued by parasitic worms, with their leaves turning yellow and falling off.
Speaking at a
meeting in
"Provinces
should pay more attention to studying areas with old coffee trees and the
number of households with old coffee trees, and draw up replanting
plans," he said.
They should set up
offices to provide information to farmers about replanting and grafting
coffee trees and replanting techniques and models, he added.
In recent years,
the Ministry of Agriculture and Rural Development has introduced several
models to replant old trees.
One of them is
intercropping with other crops. When the latter bear fruit, farmers can cut
down their old coffee plants and replant them.
Another model
involves replacing 7 -10 per cent of old coffee trees in their fields every
year.
The latter model is
being considered by the Viet Nam National Coffee Corporation (Vinacafe),
which grows coffee in several provinces, including Dak Lak, Dak Nong, Gia
Lai, and Kon Tum.
Le Van Bau, head of
the Tay Nguyen Agriculture and Forestry Science Institute, said to replace
ageing coffee trees efficiently, several things needed to be done
simultaneously like producing disease-free seedlings and using more organic
fertilisers to keep out parasitic worms from the soil to prevent diseases.
About 54 per cent
of surveyed households said they had difficulty in buying quality coffee
seedlings, according to the Tay Nguyen Agriculture and Forestry Science
Institute.
Participants at the
meeting said farmers should be enabled to borrow on easy terms at interest
rates of 5-6 per cent a year.
Farmers face many
difficulties in replacing old coffee trees since they do not have an income
until the new trees bear fruit, which takes around three years.
Deputy Minister of
Agriculture and Rural Development Le Quoc Doanh said efficiently replant ageing
coffee trees required the Tay Nguyen Agriculture and Forestry Science
Institute, Vinacafe, and coffee growing provinces to work together to provide
farmers with quality coffee strains and advanced farming techniques.
Coffee-growing
provinces had to co-operate with banks to enable farmers to get loans to
replace old trees, he added.
Local bank
assets fall in January
The total assets of
banks in the country at the end of January declined by 1.04 per cent against
the end of 2013 to reach VND5,696 trillion, or US$258.9 billion.
According to the
State Bank of Viet Nam's data, the State-owned commercial banks reported the
highest decrease in assets of 2.21 per cent. The joint stock commercial banks
followed with a drop of 0.97 per cent and the group of finance companies and
financial leasing companies was down by 0.41 per cent.
However, the group
of joint venture and foreign banks reported a rise of 2.64 per cent in its
total assets.
Despite the asset
reduction, the equity and charter capital of the banking sector kept rising
at rates of 1.52 per cent and 0.63 per cent to reach VND474.024 trillion, or
$21.546 billion, and VND426.651 trillion, or $19.393 billion, respectively.
According to the
central bank's data, for the first time the group of joint venture and
foreign banks posted the strongest growth in terms of the total assets,
compared to the State-owned commercial banks last year.
According to the
data, at the end of December 2013, the group of joint venture and foreign
banks saw an asset growth of 26.92 per cent from the end of December 2012,
marking an impressive figure compared to the previous years. Meanwhile, the
total assets of the group of State-owned commercial banks last year increased
by 13.77 per cent and that of the joint stock commercial banks by 14.8 per
cent. The group of finance companies and financial leasing companies
continued to have a difficult period with a negative ratio of 57.76 per cent
in terms of the total assets as against December 2012. —
Tech park
sets strategy plans
The Quang Trung
Software City (QTSC) this year will work to complete its technical
infrastructure and service system, targeting to attract more investors,
delegates told a seminar yesterday in HCM City.
Chu Tien Dung,
chairman of the QTSC Development Company, said "The park has pledged to
improve its management and services quality to make it more professional and
transparent," he said.
In addition, it
will support IT firms so they can expand their market, including trade
promotions in Myanmar and other countries, he added.
The park also plans
to work with localities like Lam Dong and Nam Dinh provinces to help them
develop the IT industry and establish more software parks in the country, he
said.
Speaking at the
seminar, Le Manh Ha, deputy chairman of the HCM City People's Committee, said
the software park had attracted substantial investments from leading firms in
the industry and become a model that could be expanded elsewhere in the
country.
Le Quoc Cuong, deputy
director of the City Department of Information and Technology, said the park
had spurred economic restructuring in the city by promoting the role of the
knowledge-based economy with high-quality and added-value products and
services.
Cuong said his
department would co-operate with the park to hold more dialogues between IT
firms and agencies to help businesses solve operating difficulties.
The centralised IT
Zone focuses on research and development, training, production and sales of
IT products and services, providing IT services to organisations, businesses,
and other activities related to IT.
Under the decree,
organisations and enterprises in the centralised IT Zone will receive
preferential tax, investment credit and customs procedures.
"For example,
the new projects in the zone will enjoy corporate tax exemption for four
years and a 50 per cent deduction in payable tax over the next nine
years," said Nguyen Anh Tuan of the IT Department under the Ministry of
Information and Communication.
In addition,
businesses will be exempt from import duties on goods used as fixed assets
and for production activities.
According to Lam
Nguyen Hai Long, QTSC's deputy director, 108 companies are located in the
park. They are involved in software, IT services and human resource training,
including global IT giants like IBM and HP.
The total revenue
of IT companies in the park reached US$130 million last year, a year-on-year
increase of more than 20 per cent, with software exports going up strongly
last year to top $78 million, he said.
It had also created
jobs for more than 17,000 workers and become the country's biggest software
training centre, he said.
The seminar is part
of a series of activities to mark the 13th anniversary of QTSC.
Currently, besides
QTSC, there are two other centralsied IT zones in Viet Nam -Da Nang Software
Park and Ha Noi's Cau Giay IT Park .
Competition
grips real estate market
The real estate
crisis has eliminated weak investors, increased competitiveness and brought
more choice for clients.
Unlike in the past,
where buyers would buy on spec, buyers can now expect completed building
work, as well as the proper legal documentation. Now, land purchase and
transfers are handled by experienced financial investors, especially for
projects that have reached a standstill.
The 557 investment
joint-stock company is to buy an apartment project in district 9, HCM City
that has been at standstill for the past five years.
"Many
investors have mortgaged their land-right certificates to borrow money for
construction. But most of them have not been able to finish the project as
their funds ran out. They can't finish the project, they can't sell it as it
has not been completed, and all the while they must still pay interest,"
Than Qui Phai, general director of the 557 investment joint stock company
told the Sai Gon Giai Phong (Liberated Sai Gon) newspaper.
The HCM City
Infrastructure Investment Joint stock company (CII) will also buy shares of
several partners in different real estate projects this year to help move the
projects forward.
"When a
project faces financial difficulties, the investors must transfer or
co-operate with other companies or else eliminate themselves from the
market," Le Quoc Binh, general director of the (CII) said.
"The market
needs more and more buoyant companies with good, solid projects," said
Le Chi Hieu, chairman of the Thu Duc House's management board.
The Sai Gon Thuong
Tin Real Estate company (Sacomreal) has recently announced that they are to
sell the Arista Vills residential projects in Thu Duc district. All
infrastructure, such as the swimming pool, tennis court and children's
playground has now been completed. Clients only need to pay 20 per cent of
value of the property and can pay the rest over the next 24 months.
"In the context
of the frozen real estate market, we must convince our customers. We must
prepare all the necessary infrastructure and encourage them to build houses
immediately after buying land," Bui Tien Thang, deputy general director
of the Sacomreal said.
An entertainment
area with children's play battleground, swimming pool, rowing facilities, and
restaurants has been built in the BCR project, invested in by House Viet Nam
Joint Stock company to lure buyers.
For Tan Phu
district's Au Co Tower, the investors have started granting apartment
certification for all customers despite the fact that they haven't sold all
apartments.
The Tac Dat Tac
Vang company has invested in projects in new Binh Duong City. A night market
was built by the company to make it more convenient for local residents.
Completed projects
with good local conveniences, good sales policies and granted legal
certificates will attract customers, a representative of HCM City's Real
Estate Association said.
Green cards
on offer to New York investors
Seminars were held
in HCM City and Ha Noi this week to introduce an investment project in New
York for which one of the payoffs for investors is a US green card for
permanent residency.
Investors are
invited to buy a share of a luxury shopping, apartment, and recreation
complex, which is being built at a cost of US$462 million.
They will get 200
shares for $100 million.
Construction began
last September and is expected to be finished in the second quarter of 2016.
It was organised by
U.S. Investment Services (USIS), which provides services for the EB-5 visa
programme in Viet Nam, Extell Group, the developer of the complex, and law
firm Greenberg Traurig.
Car sales
surge in February
The sales of
domestically assembled cars in February jumped 72 percent from the same
period last year, according to the Vietnam Automobile Manufacturers
Association (VAMA).
This is the 11th
consecutive month when the industry’s sale volume has been higher than the
corresponding period 12 months earlier, according to the association, which
is comprised of the country's 18 leading car makers.
Consumers bought
more than 7,300 vehicles last month, including 4,509 cars and 2,805 trucks.
With the January
figures included, about 18,400 units were sold, up 39 percent year on year.
The booming demand
before the Lunar New Year holiday and the attractive discounts offered by
automakers has helped increase sales, industry insiders said.
It is forecast that
at this momentum, total sales can reach 120,000 units for 2014, a growth of 9
percent over 2013.-
Machinery
exports rocket
The export turnover
of machinery, equipment and vehicle spare parts reached 529 million USD in
January, up 15.61 percent against the same period last year, according to the
General Department of Vietnam Customs.
The exports to
Japan, the United States and Hong Kong made up 45.7 percent of the total
turnover with 111.99 million USD from Japan, 98.77 million USD from the US,
and 31.21 million USD from Hong Kong.
Those to mainland
China increased ten times compared to last year’s period with 31.10 million
USD, accounting for 5.8 percent of the export value in the first month of
this year.
Other markets
seeing strong growth rate included the Republic of Korea with 33.21 percent,
the Netherlands 96.77 percent, German 53.26 percent, and Malaysia 97.07
percent.
Machinery,
equipment and vehicle spare parts are among Vietnam’s major exports.
Processing and manufacturing industry attractive to investors
As many as 62
foreign investment projects were registered in the processing and manufacturing
industry with a total of 1.178 billion USD in the first two months of this
year, making up 76.5 percent of the country’s foreign direct investment in
the period.
With the increases
in both quantity and the size of investment, this sector has become more
attractive in the eyes of foreign investors.
According to a
report by the Foreign Investment Department under the Ministry of Investment
and Planning, from January 1 to February 20, 122 new projects were registered
across the country, with a combined investment of 830. 87 million USD, equal
to 80.7 percent of the figure in the same period of 2013.
During the period,
the disbursement by direct foreign investment projects was estimated at 1.12
billion USD, up 6.7 percent from the same period last year, the report said.
To draw more
investment into this sector, authorities should boost the investment
promotion activities and improve the investment environment, experts said,
adding that the training of high-quality human resources and the establishment
of nearby material areas are also needed-
Trade
remedy cases against Vietnamese goods increasing
Vietnamese goods
are facing an increasing number of trade remedy cases brought by export
markets, according to the Vietnam Competition Authority (VCA) under the
Ministry of Industry and Trade.
The issue was
discussed at a workshop in Ho Chi Minh City on March 14 organised by VCA and
the European Trade Policy and Investment Support Project.
VCA said while
there were only 33 trade remedy cases against Vietnamese goods from 1994 to
2007, the figure rose to 38 from 2008 to 2013.
Most of the cases
happened in the US, European Union, Turkey and India, and a majority of them
are anti-dumping cases against steel, footwear and fibre, which are exported
in large volumes.
Experts said the
trend is attributable to economic hardships that make countries take trade
remedies as measures to protect their domestic production.
Pham Huong Giang
from the VCA suggested businesses learn more about laws on trade remedies,
actively appeal, and cooperate with investigation agencies as well as other
businesses in the same field.
She also urged them
to diversify their markets and improve product quality to minimise risks of
being sued.
Mexico
eager to import Vietnamese unhusked rice
Mexico will import
unhusked rice from Vietnam if it meets the quality standards and price levels
required by the country.
Mariana Rodrigue
Allvre, visiting Director of the Mexican Rice Council, revealed the good news
to rice exporters in the Mekong Delta province of An Giang at a meeting with
local officials on March 14.
Director of the
provincial Department of Industry and Trade Mai Thi Anh Tuyet said An Giang
is willing to meet all the requirements set by Mexican importers and will
create the best conditions for them.
Regarding price,
the province is about to establish a price managing team tasked with fixing
the price of exports, including paddy rice. This aims to ensure fair
competition and mutual benefits among the two sides’ businesses, added Tuyet.
The team takes
responsibility for tackling difficulties for Mexican importers to accelerate
their purchase, she said, describing the country as a gateway for An Giang to
expand its exports to other South American markets in the future.
The annual average
paddy rice production of An Giang has surpassed 4 million tonnes, of which
over 700,000 tonnes are exported to 61 countries around the world.
RoK
programme helps agriculture forming value chain
Through a knowledge
sharing programme, the Republic of Korea (RoK) is actively supporting
Vietnam’s agricultural industry in forming a value chain – an issue paid
close attention to by the Vietnamese government, the Vietnam Investment
Review reported.
In a senior policy
dialogue last week on a programme started last year (KSP 2013) at the
Ministry of Planning and Investment (MPI), experts from the Republic of Korea
selected three agricultural products – rubber, coffee and shrimp – to support
in joining the global value chain.
According to
professor Yong-Taek Kim from Chonman University, KSP 2013 selected these
three products as their market shares and export values have risen over the
past ten years.
Another reason was
that coffee is the biggest forex earner and rubber comes in third of all of
Vietnam’s agricultural exports. Shrimp was chosen as it is the country’s most
important aquatic export.
Under the KSP 2013,
agriculture is targeted due to its central role in the economy. Up to 70
percent of the Vietnamese population lives in rural areas and 50 percent of
the workforce is in the agricultural industry. At the same time, the
country’s agriculture has developed to the point where it is internationally
competitive.
Source: VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
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Thứ Tư, 19 tháng 3, 2014
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