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BUSINESS
IN BRIEF 12/5
Rice
exports projected to reach 1.8m tonnes in Q2
The Viet Nam Food
Association (VFA) expects to export 1.8 million tonnes of rice for the second
quarter this year, said association chairman Nguyen Hung Linh.
He said that many
enterprises have registered a large volume in rice export contracts so the
nation could reach the target.
Truong Thanh Phong,
an advisor to the VFA executive board, said there are many export contracts
for the second quarter because Chinese traders have promoted imports of
Vietnamese rice via commercial contracts and small trading activities at
border gates, reported the Thoi bao Kinh te Viet Nam (Viet Nam Economics
Times) newspaper.
This month, rice
export volumes are estimated to reach 650,000-700,000 tonnes, the association
said.
In April,
In the first four
months of this year, the exports had a year on year reduction of 6.9 per cent
in volume to 2.04 million and 4.7 per cent in value to $931 million.
The association
also said that by April 29, enterprises had bought 950,000 tonnes of rice
under the national programme on purchasing one million for temporary stock.
Sugar
industry tackles rising stockpiles
The domestic sugar
industry needs assistance as the sector is facing a high inventory and
threats from illegally-imported products, the Viet Nam Sugar and Sugar Cane
Association (VSSA) has suggested.
VSSA chairman
Nguyen Hai said that, by the end of April, inventory reached 690,300 tonnes,
including about 663,600 tonnes at factories and roughly 26,700 tonnes at
trading companies affiliated with the association, according to the Vietnam
News Agency.
That was a record
high inventory, which was over 100,000 tonnes higher than the level of the
the same period last year.
The over-supply
pushed sugar prices down to their lowest levels of the past few years. Prices
dropped from VND18-19 million (US$857-905) per tonne in 2011 to VND12-13
million ($571-619) at present.
The large inventory
was mainly due to slow consumption, with a volume of 100,000-120,000 tonnes
of sugar per month produced at each factory, which was the same as in
previous years, he said. Customers had reduced their spending on sugar and
sugar products as the economic crisis led to a slowdown in sugar consumption.
The Ministry of
Agriculture and Rural Development (MARD) said the sugar cane crop for 2013-14
is expected to increase areas being cultivated for growing sugar cane by
8,000ha to 306,000ha compared to the previous crop, with an expected harvest
of 1.6 million tonnes of sugar.
Under the
commitment to the World Trade Organisation ,
Domestic demand has
reached about 1.4 million tonnes of sugar, according to the association.
The MARD has asked
the Ministry of Industry and Trade (MoIT) to permit exports of 400,000 tonnes
of sugar through border crossings with
The association has
also proposed the MoIT permit exports of sugar to
With the current
value-added tax rate of 5 per cent, the Government should set up a fund for
re-investment in the local sugar cane and sugar industry, using revenues from
part of the value-added tax paid by sugar producers and traders, he said. The
fund is currently used to provide financial support for sugar cane growers
and projects on developing sugar cane enterprises.
In the future, the
industry will focus on developing new sugar seeds with higher quality and
quantities, promoting combinations between production and consumption, and
developing support products to increase added value.
Prime Minister
Nguyen Tan Dung has signed a decision to support sugar factories by investing
in producing electricity from bagasse, which is is often burned after processing.
By generating
electricity, factories would reduce spending and lower production costs,
while increasing competitiveness with illegal sugar imports.
North-South
transmission line approaches 20th birthday
Circuit 1 of the
North-South 500kV transmission line will mark its 20th anniversary on May 27,
2014, marking a milestone in
In the early 1990s,
the sector faced a big pressure of providing enough electricity for the
southern region, as power plants there met only 89.73 percent of the total
demand for energy, leading to power blackouts that hindered the region’s
development.
To deal with the
serious shortage,
The line’s Circuit
1, stretching nearly 1,500 km from the
The line created a
foundation for the expansion of the national grid, said Tran Quoc Lam, Deputy
General Director of the Electricity of Vietnam’s National Power Transmission
Corporation (EVNNPT).
He added that the
system run by the EVNNPT has to date accessed 61 out of the 63 provinces and
cities across the country. A number of 220-500kV transformer stations have
been put into operation in 57 localities.
In addition to
connecting three separate power systems in the north, the centre and the
south, the 500kV transmission system helps ensure power supply for large
cities and key economic zones.
According to the
EVNNPT, the power transmission system will satisfy the economy’s demand for
an annual amount of 145-150 billion kWh in 2015, increasing to 265-275
billion kWh by 2020.
The corporation
will maintain and extend the 220-500 kV transmission system connected with
On May 5, the
Pleiku-My Phuoc- Cau Bong 550kV transmission line, counted as Circuit 3 of
the North-South 500kV extra high voltage line, was connected to the national
power grid.
PM ratifies
market development project
Prime Minister
Nguyen Tan Dung has approved a project increasing consumption of domestic
goods, which will be closely aligned to the ongoing campaign “Vietnamese
people use Vietnamese products”.
The two initiatives
are aiming to increase the market share of domestic products in
The new project,
worth 228.93 billion VND (10.75 million USD), strives to boost production,
distribution and consumption of made-in-Vietnam commodities. It is focusing
on speeding up the expansion of the market and getting ministries, agencies
and localities involved in the campaign.
By 2020, it hopes
to have enabled centrally-run cities and provinces to build fixed sales
points in the provision of domestic goods. They will also establish services
that connect consumption demand with the supply of producers and enterprises.
Measures have been
put forth to reach the goals in four particular areas: heightening public
awareness of local goods; supporting the sustainable development of the
distribution system; improving the competitive edge of home businesses; and
raising the effectiveness of market control activities and consumer protection.
Investment will be
channelled towards upgrading trade centres and facilities to hasten the
extension of the distribution system in populous areas, industrial parks,
rural and remote zones and islands.
Meanwhile,
mechanisms and policies facilitating the sustainable sale of
domestically-produced products will be improved.
Banks
target growth in consumer lending
Banks plan to
explore mergers or acquisition of financial institutions, as well as the
establishment of new financial companies, to ensure a healthier bottom line
by offering more consumer loans.
At recent
shareholders meetings, at least three banks, Saigon–Hanoi Commercial Joint
Stock Bank (SHB), Maritime Bank and Vietcombank, have asked shareholders to
support plans to acquire or set up financial companies.
At its shareholders
meeting last month, SHB's board of directors sought approval to merge with
and restructure a financial company that would become the bank's affiliate
and provide consumer loans.
Bank directors said
such a move would add value to SHB's operations.
The Maritime Bank
has also asked its shareholders to authorise the establishment or acquisition
of a financial company that would specialise in developing consumer loans.
Similarly,
Vietcombank has asked its shareholders to approve a plan to set up a consumer
credit company.
Nghiem Xuan Thanh,
general director of Vietcombank, said the retail banking market had much room
to grow, but wholesale banking was not expected to develop as once predicted.
As most consumer
loans are a small amount, they help banks disperse risks, he said.
Late last year,
HDBank acquired Societe Generale Viet Finance (SGVF) and renamed it
HDFinance.
Nguyen Huu Dang,
general director of HDBank, said before purchasing the financial company,
consumer lending had not been effective for the bank because of high costs.
Consumer loans are
generally small, but they must also comply with the strict loan approval
process at the bank.
After HDBank
acquires a financial company, small loans below 30 million VND (1,420 USD)
are then transferred to HDFinance.
HDFinance, which
has modern management technology, can approve the loan in 30 minutes to an
hour, which is much faster than the time needed for bank approval.
Banks prefer to
restructure existing financial companies instead of establishing new ones as
these companies have market experience, and, thus, risks are lower, Dang
said.
According to
economist Nguyen Tri Hieu, capital mobilisation at banks has been good, but they
have faced difficulties in lending.
As a result, they
need to focus more on personal loans, either through acquisition or
establishment of financial companies or consumer credit companies.
Because financial
companies are not required to comply with strict regulations, they can do
business more easily than banks, which find it hard to thrive in the consumer
loan market.
In addition, the
income of Vietnamese loan applicants is sometimes hard to prove, as required
by bank rules.
The banks'
establishment of finance companies can help bring greater profits because of
the higher interest rates on consumer loans, he said.
Although they pay a
higher interest rate, borrowers of these loans do not have to deal with
complicated procedures or provide collateral.-
Viettel
Post intends first class five-year results
Military-run
Viettel Post Joint Stock Corporation is envisioning a fruitful harvest over
the next five years.
At its 2014-2019
shareholder meeting last week, it set a $190.5 million average revenue by
2019, requiring annual growth of 20-23 per cent. Within the same period it
aimed at $2.33 million of after-tax profits, up 13-15 per cent per year and
announced a dividend payment rate of 15 per cent year.
It also set its
sights on the total fixed assets of $28.6 milion, rising 18 per cent per
year.
Chairman Duong Van
Tinh said that to reach these targets the company would increase its charter
capital this year to equal its equity. Some 900,000 shares will be issued at
an initial $0.47 per share.
Viettel Post has
forecasted revenue hitting $69 million this year, up 30 per cent against last
year. Its express delivery and stationary services are its main earners and
this means an expected growth of 37 and 50 per cent, respectively.
The same forecast
showed pre and after-tax profits of $1.58 and $1.18 million, both up 12.68
per cent on-year and with a return-on-equity ratio of 21.4 per cent. Income
per share would increase 12.66 per cent on-year with a dividend payment rate
of 15 per cent.
This year Viettel
Post is expected to contribute around $2.9 million in taxes, up 12 per cent
on-year, to the state budget.
During 2009-2013,
revenues totalled nearly 161.9 million, at an average $35.8 million per year.
Total post-tax profits stood at $4.14 million, with a return-on-equity ratio
of 32.25 per cent and a dividend payment rate of 15 per cent per year.
Despite poor market
conditions in 2013, Viettel Post still achieved annual revenues of $54
million, up 24 per cent against 2012. After-tax profit increased 17 per cent
while labour productivity rose 29 per cent on-year. It contributed $2.58
million to the state budget, up 18.48 per cent on-year.
The company
affirmed its focus on services with high added value and reinforced this with
its merger with Viettel Telecom, which is a member of Viettel Group – the
parent of Viettel Post, to expand its network to over 85 per cent of communes
nawionwide, up 13 per cent against last year. Within 2014 it plans to have
700 transaction points nationwide.
“We will expand
co-operation with countries such as
Early last month
the company was listed as one of the 500 fastest-growing enterprises in
Prime Minister Nguyen
Tan Dung approved a Finance Ministry plan, Tuesday, designed to impose
one-year price caps on children's dairy products, after researchers reported
the major firms had implemented price hikes in spite of huge profits.
A ministry report
released at a government meeting said that after raising their profits an
average of 23 percent last year, the five largest dairy firms Mead Johnson,
Nestlé, FrieslandCampina
The five provide 90
percent of dairy products for children under six in
During the meeting,
PM Dung said the hikes were steep and have meant considerable profits for the
companies, VnExpress reported.
The new regulations
require the companies to hold prices for six months and set a price ceiling
for 12 months.
Nguyen Van Nen, the
government spokesperson, said the regulations can reduce prices by VND50,000-70,000
a box, or some ten percent.
“The companies must
share, and collect a moderate profit,” Nen said.
Investigators found
that Nestlé had not informed the authorities about some of the new prices,
which earned it an extra VND5.2 billion (nearly US$247,000) by the end of
March, while the other four did not make proper tax declarations.
Vice minister Vu
Thi Mai said Nestlé was fined VND45 million while inspectors have collected
more than VND10 billion in further taxes from the rest.
Inspections by the
finance ministry have discovered no transfer pricing abuse at the firms, but
found “unreasonably” mammoth spending on advertising has added to price
hikes.
Mai said the
advertisement expenses at four foreign companies exceeded regulated levels by
nearly VND400 billion and had pushed prices up by 2.18-16.4 percent.
The advertising
cost at
Nen called on
related authorities to closely follow dairy import prices to better control
retail prices.
A Tuoi Tre
investigation found that imported infant formulas had been sold at three or
four times their import prices since companies were paying doctors and nurses
to recommend their products to pregnant women and new mothers and promote
them at medical conferences.
A price cap to
stabilize child dairy prices was also suggested in March by Nguyen Anh Tuan,
head of the ministry’s Price Management Department, after the ministry
launched its investigation into the pricing policies at the five firms.
Businesses now have
to register their wholesale prices with the ministry, also listing their
expected retail prices.
Inspectors found
that the firms markup their products by some 30-40 percent.
Tuan said the big
markup makes it hard to control retail prices, but the ministry is working to
fix that.
He told Tuoi Tre
newspaper one solution could be publicizing the registered wholesale prices.
High dairy costs
act as a dampener on the physical growth of Vietnamese children, with
middle-income parents saying formula costs eat half their salaries.
Last October, the
government announced it would delay a $10-billion program to increase the
average height of the population by providing free milk at nurseries and
primary schools in the country’s 62 poorest districts between 2014 and 2020.
The program was
expected to benefit two million kids, offering them a chance to enjoy milk
two times at their schools per day.
Capital
management is sweet for Masan
Major Vietnamese
food producer Masan Group has attributed its rocketing growth to its
allocation of capital raised from international long-term corporate
investors.
In 2013
The meeting
approved the multi-business private group’s plans to issue an additional 4.5
million ordinary shares to clear its liabilities as per existing agreements
with the IFC, pursuant to a convertible loan extended to Masan by the IFC in
2010, and with MRG, an investment vehicle controlled by the UK’s Mount
Kellett Capital, pursuant to a convertible loan extended to Masan by MRG in
2011. The issue is set to begin this year and will run through the first four
months of next year.
The diversified
giant with interests ranging from instant noodles to tungsten mining set up
Masan Consumer Holdings to directly control two operating platforms – Masan
Consumer and Masan Consumer Ventures. The former continues to serve as the
group’s food and non-alcoholic beverage business, while the latter is an
incubation platform for high-growth opportunities.
Korean expat
Seokhee Won, a former top executive with global giant Unilever, was recently
named the new CEO of Masan Consumer and deputy CEO of Masan Group. He is
expected to leverage his 22 years experience in the consumer goods industry
to help the group achieve its $1 billion plus 2014 revenue target.
At the general
meeting, Dominic Price, former CEO of Indochina and
Last year, J.P.
Morgan and its affiliates provided Masan Consumer’s Masan Industrial with a
three-year line of credit of up to $175 million. Of this, $150 million is
guaranteed by the Multilateral Investment Guarantee Agency (MIGA), a World
Bank member. At the time
Recently, on April
25, MIGA executive vice president Keiko Honda arrived in
Township to
go up in old Nha Trang airport area
The authorities of
Nha Trang City in Khanh Hoa Province have announced a detailed zoning plan
for a major trading, finance and township complex on part of the area of old
Nha Trang Airport.
Under the
scale-1/500 zoning plan, the township covers more than 61 hectares of the
area in Phuoc Hoa, Phuoc Hai, Phuoc Long and Vinh Nguyen wards of the central
coast city. The township is planned to have a population of 11,000 people.
Some 23,6 hectares of the township will be reserved for new houses, 23
hectares for roads and parking lots, and the rest for parks, flower gardens,
playgrounds and public utilities.
The zoning plan
estimates around VND680 billion (US$32.28 million) will be needed for
infrastructure development.
In September last
year, the Khanh Hoa People’s Committee publicized its plan to develop part of
the area of old Nha Trang Airport into a trading, finance and township
complex after the central province got the Government’s approval to turn part
of the military-managed area into a place for civilian purposes.
According to the
approval, the complex accounts for some 190 hectares out of around 238
hectares in the airport area.
The event,
co-organised by the Vietnam Chamber of Commerce and Industry (VCCI) in Can
Tho and Mekong Promotion Club (Mekong PC), will focus on the region’s
advantages, including raw materials for agricultural development, diverse
terrain for eco-tourism, and the huge demand for infrastructure investment.
Experts will share
experience in making the regional investment climate attractive to domestic
and foreign businesses.
Nguyen Huu De,
Deputy Director of VCCI Can Tho, said the conference will provide necessary
information for businesses wishing to invest in the Mekong Delta,
contributing to developing an effective supply chain in the region.
Pham Thanh Khon,
Vice Director of the local Department of Planning and Development, noted that
the Mekong Delta is becoming an attractive destination for businesses due to
its improved investment environment.
He added that Kien
Giang, Dong Thap, Ben Tre and Can Tho in the region are among the top 10
localities having the highest Provincial Competitiveness Index (PCI) in 2013.
IFC invests in
Thien Minh Group to promote sustainable tourism
Thien Minh Group, a
Vietnamese leading private tour operator and hotelier, has just receive a
financial investment from International Finance Corporation, a member of the
World Bank Group, for expanding its tour business and developing hotel chain
across Vietnam.
According to an
announcement released by the International Finance Corporation (IFC) today,
the financial institution will invest $14 million in Thien Minh Group, aiming
to boost
“This investment
deepens our partnership with IFC,” said Tran Trong Kien, chief executive
eoficer at Thien Minh Group.
“IFC financing and
technical advice will help us build one of the most successful, sustainable
travel companies in Asia as well as an important player in the hospitality
industry in
Established in
1994, Thien Minh Group has grown from a tour operator into a leading
privately owned integrated travel group with three main tour companies, an
on-line booking company, 11 three- and four-star hotels and a hotel
management company. The group brings more than 90 thousand tourists to the
It is the owner of
the famous
In pursuit of a green
and sustainable tourism business, Thien Minh Group has committed to applying
IFC’s Excellence in Design for Greater Efficiencies Green Building
Certification System in its new hotels with the aim of reducing energy,
water, and material consumption by at least 20 per cent compared with similar
buildings.
“We're excited to
support Thien Minh Group as a company that has built itself from modest
entrepreneurial beginnings to become the leading private sector player in
“Thien Minh Group
is showing the way for other entrepreneurs and private sector companies in
Local tyre
firms reinforce positions
Leading local
rubber firms are ramping up efforts to reduce the dominance of foreign
players in the domestic radial tyre market.
One year after
Danang Rubber JSC (DRC) was the first to step foot into Vietnam’s radial tyre
market, early last year, Southern Rubber Industry JSC (Casumina) put its own
all-steel truck tyre manufacturing plant in the southern province of Binh
Duong into service, which has a much bigger scope than that of DRC.
Casumina’s project,
with a $3.3 billion investment, was reported to consist of three phases. The
first has an annual capacity of 350,000 tyres for domestic consumption and
export, the second (from now until late 2015) ups capacity to 600,000 and the
third phase will see capacity reach 1 million per year.
Casumina estimates
that once the plant reaches full capacity it would generate VND5 trillion
($238 million) in annual revenue, helping to turn the company into a leading
player in
DRC’s radial tyre
project, with VND2.9 trillion ($138 million) in total investment, consists of
two phases. The already operational first phase has an annual capacity of
175,000 tyres a year. It will increase this each year to reach 600,000 by
2018.
When its plant was
commissioned, DRC said it was the largest scale project in
Though the company
is strong in manufacturing bias and specialised OTR tyres, radial tyres are
now being established as its standard.
According to the
Vietnam National Chemical Corporation (Vinachem) – the parent company of DRC
and Casumina – radial tyre plants are pushing forward the local rubber industry
and tyre sector toward reducing imports, diversifying product lines and
increasing the commodity value of Vietnamese rubber.
In fact, with their
advantages of durability, safety, light weight, and less friction, radial
tyres are becoming increasingly popular in auto tyre production.
In the US, Japan
and France, nearly all tyre manufacturers have shifted into making radials,
and in Asia the rate is similarly high – 90 per cent in Malaysia and 50 per
cent in China, according to figures from Casumina.
But this is only
around 10 per cent in
Given such
potential, local firms are ambitious about taking over the market from
foreign players.
In September 2013,
Casumina rolled out its line of semi-steel radial tyres comparable to those
of foreign producers, but only 80 per cent of the price of imports, and it
stepped this up with the opening of its all-steel radial truck tyre plant.
According to
Hanoi-based The Gioi Lop (Tiresworld) Company – a distributor of global tyre
brands in
One problem faced
by both DRC and Casumina is how to turn out high-grade tyre products that satisfy
increasingly stringent market requirements.
Casumina and DRC
hold around 60 per cent of general tyre and tube market share (Casumina 33
per cent and DRC 25 per cent). They are also leading players in the domestic
market with Casumina holding 8 per cent and DRC 13 per cent of market share,
according to the firms’ 2013 reports.
Minister of
Planning and Investment Bui Quang Vinh told the National Assembly’s Standing
Committee last week that while drafting the amendments to the laws on
Investment and Enterprises, the Ministry of Planning and Investment (MPI)
would work with other relevant agencies to revise all existing 330
conditional business sectors and professions, and several dozen sectors
banned from business and investment.
“The number will be
reduced. The reasons for revision will be made public. It is expected that
the fully revised list will be available in October,” Vinh said. “It’ll be a
tough bit of work as it relates to many ministries.”
“This breakthrough
will help
Under the two draft
laws expected to be adopted late this year by the National Assembly, the list
of banned sectors include projects harmful to national security and defence
and the public interest, projects that could damage historical sites,
culture, morality and customs, and projects prone to harming health, natural
resources and the environment.
However, the
National Assembly Chairman Nguyen Sinh Hung was sceptical about the
regulations
“These vague
regulations mean we’re banning almost everything, and investors will have no
investment opportunities because every sector in the economy would be
affected by such broad-brush descriptions. For example, garment production
also relates to culture and custom.” Hung said. “It is necessary to specify
exactly what banned and conditional sectors include.”
After being pared
down, the banned list will be outlined in a governmental decree, not in an
actual law.
The two new laws
will also make it much easier for investors and enterprises, in terms of
procedures.
The draft amendment
to the Investment Law has removed many investment procedures including the
granting of an investment registration certificate for projects not banned or
subject to any conditions. Investors can register their investment projects
online. Such certificate, which replaces the existing investment certificate,
will be issued upon request, yet will remain compulsorily for investors
engaged in ‘conditional’ projects.
Realty
investors allowed to delay land-use fee payments
The Ministry of
Finance has released a circular allowing real estate investors to delay land
use fee payments if their projects had incurred losses as of the end of 2013,
have grappled with high volumes of unsold properties or have not generated
revenues despite big investments.
A half-completed
property project in HCMC. The Ministry of Finance has released a circular
allowing real estate investors to delay land use fee payments if their
projects had incurred losses as of the end of 2013 - Photo: Manh Tung
The ministry’s
Circular 48/2014/TT-BTC provides guidelines for the delay in land use fee
payments as stipulated in the Government’s Resolution 01/ND-CP. The
beneficiaries are those whose land-use fee payments have not been extended in
accordance with the Government’s resolutions 13/NQ-CP and 02/NQ-CP issued in
May 2012 and January last year respectively.
The property
developers meeting the requirements can be subject to the land use fee
payment extension for a maximum of 24 months from the original payment date
announced by tax authorities or relevant agencies. Enterprises will not have
to pay fines for slow payments during the period.
Extension of the
land use fee payments will be decided on a “case-by-case” basis and be valid
for the amount which has to be paid to the State budget, excluding the fines
for late payments.
For the projects
developed for various purposes, the delayed land use fees will be calculated
based on the allocated space for building houses for lease or sale.
The enterprises
entitled to the land-use fee payment delay have to proclaim the fees while
filing for their quarterly corporate income tax. The amounts paid to the
State budget are based on those collected in property transfers, leases or
sale contracts signed.
The circular also
stipulates three subjects considered for payment delays for purchasing
State-owned houses. They are households and individuals eligible for buying
old State-owned house after June 6, 2013 when the Government’s relevant
Decree 34/2013/ND-CP took effect, and those qualified for purchasing
State-owned houses or allowed to continue buying State-owned houses in line
with Decree 61/CP.
Despite
construction starting in late 2007, Saigon Sunbay, Vietnam’s largest seaside
eco-town project to date in Ho Chi Minh City’s Can Gio district, has seen
poor progress, resulting in suspicions and concerns from residents on the
project site.
After seven years,
the only completed features of the project are a wall surrounding the site
built by former contract Dai Phu Gia-Anjeong consortium and a stone jetty
lining 100 hectares of beach by local and current contractor Lung Lo-Sao Mai
consortium.
According to people
who live on the contract site, work halted immediately after completing the
stone jetty right after Lunar New Year this year.
At the time, Lung
Lo-Sao Mai had machines and construction crews on the site and work was in
full gear, but since the holiday, no progress has been seen.
In early April, VIR
contacted Can Tho Tourist City Corporation (CTC) and spoke with a company
representative who confirmed that construction has now been halted for
several months.
“We are making
preparations for changes to the implementation plan,” he said, adding that
the project would soon begin anew.
As per the initial
design, Saigon Sunbay would cover 600ha including 200ha of beach and would
cost a staggering $1.5 billion. The capital needed for site clearance and
infrastructure development alone was estimated at $350 million.
Notably, the
developer had also committed to creating a land fund by encroaching the sea
and using the reclaimed land for site clearance.
Saigon Sunbay was
divided into four zones: HeartBay (high-end resorts and hotels, diverse
commercial, tourist and entertainment activities); LifeBay (high-end
residential areas); EcoBay (floating resorts, green park, bungalow, spa,
etc.) and BlueBay (beach and marina).
One of the main
obstacles to the project’s progress was capital, the developer explained,
saying that the project was based on the
Accordingly, the
city was forecast to continue robust growth during that period, paving the
way for developers to work on big projects and initiate plans to raise
capital from partners. What happened instead was the financial and housing
crisis and the developer was unable to source capital.
Asked by VIR on the
current status of raising capital for the project, the company declined to
respond about specifics, but said reports have been sent to city authorities
and agencies, and steps were being taken to move forward.
One marked change
at the project was the selection of new contractor, aforementioned Lung
Lo-Sao Mai consortium, which is highly regarded and has a wealth of
experience in hydraulic engineering and construction.
In late March VIR
sent a dispatch to the Ho Chi Minh City Department of Planning and Investment
requesting an up-to-date and transparent report on the project’s progress but
an official response remains forthcoming.
Senior economist
Nguyen The Hien, commenting on the case, said it was important for the
developer to set progress targets. Otherwise city authorities would likely
revoke the project’s licence or downsize its scale to devote more land to
public tourism development, giving locals a better chance to involve in
pushing forward tourism in the area.
Bank
mergers mean capital difficulties for small firms
More small banks
have been merging into larger banks in
Under the
government’s Project 254 on restructuring the credit system in the 2011-2015
period, around seven small and weak banks will undergo mergers this year,
raising the total number of merged small banks to 15-17 by the end of 2014.
Truong Van Phuoc,
Vice Chairman of the National Financial Supervisory Committee, said it is law
for small banks with weak competitiveness to accept mergers.
The mergers are a
result of a change in capital requirements. In the past banks were required
to have VND3 trillion (USD142.8 million) in capital as stipulated by Decree
141, issued in 2006. Instead, the required minimum legal capital for a
Vietnamese bank will be VND4 trillion.
Dr. Le Xuan Nghia,
head of the Business Development Institute, said that the
According to Dr.
Nghia, the scale is important but the effectiveness of operations is the
decisive factor in a bank’s survival.
Difficulties
for small firms in accessing capital
In reality, many
small and new companies report difficulties in getting loans from big banks.
Dr. Le Xuan Nghia
said that big banks tend to try to attract big companies and ignore small
ones.
In the
Because there is a
lack of any such policy in
Dak Lak
exports coffee to 60 countries worldwide
Coffee, the key
export of the central highland
Among them, 31
markets have an export value of more than US$1 million each while 13 others
have obtained values in excess of US$10 million each including Germany,
Japan, Italy, the US, Belgium, Spain, the Republic of Korea, Switzerland,
France and Russia.
Since 2008,
cumulative coffee exports of the province have reached more than US$3.5
billion. In the first quarter of 2014 alone, total coffee exports were
US$260 million, far outpacing the US$600 million for all of 2013.
According to the
People’s Committee, the export volume of coffee has remained relatively
stable and the increases in value are directly attributable to increases in
the selling price. At present, Dak Lak leads provinces and cities nationwide
in coffee cultivation area, with more than 202,022ha, accounting for over 40%
of the total area in the central highlands dedicated to growing coffee and
30% of the total area nationwide. It yields around 400,000 tonnes of coffee
bean per annum.
Given the current
state of the market, leading economists are relatively confident that coffee
will continue to play a vitally important role in boosting the locality’s
socio-economic development for many years to come.
Real estate
market posts nationwide upswing
The Ministry of
Construction has claimed there are signs of recovery throughout the real
estate market.
According to
figures from Ministry of Construction (MoC), the real estate market has seen
improvements, with an increase in transactions and a slow-down in falling
prices.
More than 1,500
successful transactions were reported in the first quarter in
According to Nguyen
Tran
Land and villa
sales have also seen modest increases this quarter compared to zero sales
during the same period last year.
“These figures
reveal that
“This shows the
fact that the market is now healthier, for both developers and buyers,” he claimed.
The same positive
signs have been seen in
In
Source: VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
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Chủ Nhật, 11 tháng 5, 2014
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