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BUSINESS
IN BRIEF 23/7
The Ho Chi Minh
City Management Authority for Urban Railways and Japanese consortium
contractor Shimizu-Meada on July 21 signed a contract (bidding package 1B) to
build two metro stations in
The JPY23.7 billion
contract is part of the metro route No. 1 project connecting Ben Thanh Market
with
Municipal Opera
House station construction will start in late July and is scheduled for
completion in April 2015.
The metro route
No.1 has a total length of 19.7km, including a 2.6km underground section.
The underground
section travelling past the Municipal Opera Theatre will be built, using the
tunnel boring machine (TBM) technology.
Construction work
on the overground section began in August 2012.
The route will be
given a test run in 2019 before being officially put into operation in the
following year.
The Consumer Price
Index (CPI) in
There were across
the board increases in the prices of goods and services in all the baskets of
goods for the month, with the exception of the post and telecom group, which
remained relatively unchanged.
Foodstuffs and
dining-out services rose by 0.42% and 0.21% against June, respectively.
Prices of
housing-electricity-fuel-construction materials went up 0.53%.
Transport costs
also surged 0.51% on the back of an increase in the price of petroleum and
gas.
By contrast, food
prices nosedived 2.26% due to an oversupply on the market.
Both gold and the US
dollar prices increased slightly, 1.97% and 0.56% compared to the previous
month, respectively.
A
During their stay,
they attended a July 17 gathering more than 40
At the event, Vice
Chairman of the HCM City People’s Committee Nguyen Huu Tin and Vietnamese
Ambassador Ngo Tien Dung emphasised the importance of the friendship ties and
the great potential the two countries have for heightened trade and
investment cooperation.
Venezuelan business
representatives expressed much interest in cooperation in the construction of
social housing projects and their desire to receive
Businesses from two
countries agreed that they will continue to exchange information of mutual
concern and policies of each country in anticipation of signing some
cooperation deals in the future.
Trade
surplus with
Two-way trade
between
Of the total,
Key Vietnamese
exports included crude oil, mobile handsets and components, seafood, cashew
nuts, timber, garment and textiles, footwear, machinery, and equipment.
Crude oil topped
the list of export items, bringing home US$989 million, a year-on-year
increase of 44.1%. It was followed by mobile handsets and components (nearly
US$184.75 million, up 21%), and fisheries (US$104.55 million, 36.5%).
Notably, gross
exports from iron and steel to
Other items
maintaining steady growth included confectionery and cereals, handbags,
purses, suitcases, hats, umbrellas, and rattan and bamboo products.
Computers, electronic
products, coffee, and plastic materials also saw sharp increases in the first
half of 2014.
Meanwhile,
Support
industry needs policy support
Better policies are
needed to improve the capacity of support-industry companies, particularly
electronics firms, said Deputy Minister of Industry and Trade Cao Quoc Hung.
Hung told a recent
conference on developing the electronic industry that the ministry is
prepared to actively connect domestic firms with multinational companies so
that they can take advantage of bigger supply chains.
The ministry plans
to promote Vietnamese electronics on its website and open three centres
promoting the electronics industry.
He asked firms to
diversify their products and pursue co-operation with experienced and
technology-savvy foreign investors to improve production of spare parts and
accessories.
With nearly 500
companies,
The Chairman of the
Vietnam Electronics Industries Association, Luu Hoang Long, said that despite
increases in exports, the country's electronics industry is struggling to
develop value-adding production and is only a modest contributor to national
GDP.
Long said foreign
direct investment (FDI) companies account for only a third of electronics
companies in
Few Vietnamese
firms in support industries were able to supply inputs to FDI companies,
hampered by a lack of experience, capital, technology and marketing.
"Most domestic
firms are specialised in processing and assembling," Long said, citing
that 80% of electronic products made in
"This has
resulted in an imbalance in the categories of products," he said.
The General
Director of Viettronic Tan Binh, Vu Duong Ngoc Duy, urged the Government to
guide domestic companies towards better projects.
Policies are needed
to attract foreign firms and encourage domestic companies to tap into the
potential of support industries, said Duy. Additionally, any administrative
support for firms must be transparent and accessible to firms in the market,
he said
Olmix to
build a factory in Binh Duong
France-based Olmix
Group plans to invest EUR5 million in building a factory at the Song Than 2
Industrial Park in the southern province of Binh Duong to produce nutritional
products for animals and plants.
Olmix General
Director Herve Balusson unveiled the decision at a recent working session
with provincial leaders.
The facility is
designed to churn out between 5,000-10,000 tonnes of products per year for
domestic use and export. In the next stage, the company will establish a
research centre in the locality, he said.
The provincial
leaders welcomed the company’s plan and said the project conforms to Binh
Duong’s high-tech agriculture development orientations.
They also pledged
to create favourable conditions for the investor to carry out their project
efficiently.
Founded in 1995,
Olmix is operating in more than 60 countries and territories worldwide. This
is the company’s first project in Binh Duong province.
Burdensome
customs requirements cost US$37 billion annually
Cumbersome and
complicated import-export procedures cost firms doing business in
The figure was
unveiled in a report released by the US Agency for International Development
(USAID).
Compared to international
standards, the time to complete import procedures alone in
Similarly, it takes
nearly half of a month to complete all export procedures, pushing losses up
past the US$17 billion mark.
A representative
from the Central Institute for Economic Management (CIEM) said if proposed
customs clearance changes are approved, it is estimated that
Japanese
SMEs keen to invest in Vietnam
With the
Government’s open door policy, stable political environment and vast economic
potential, many Japanese small-and medium-sized enterprises (SMEs) find
Approximately 30%
of Japanese firms with plans to expand their overseas operations
unhesitatingly consider
They are also
aggressively developing attractive incentive packages designed to catch the
eye of the most discriminating foreign investors and lure them to do business
in their localities.
However, there are
a number of obstacles to overcome in attracting huge inflows from Japan, says
says Hirokazu Yamaoka, Director, Overseas Business Support Division under the
JETRO.
Labour costs in
some parts of the country are surging too rapidly (around 20% annually).
Yet the rise in labour costs is not resulting in a concurrent increase
with productivity.
Without a
corresponding increase in productivity, the overall price of the products
increases, negatively affecting competitiveness in the global marketplace,
Yamaoka says.
This phenomenon is
leading many Japanese investors to pay more attention to newly emerging
markets like
Some Japanese
businesses are also finding it exceedingly difficult and costly to import
input and other raw materials from outside the country as the support
industry in
The need to import
input and raw materials also push production costs up and lower business
competitiveness and is a situation that
The majority of
Japanese SMEs also are not financially strong and lack adequate capital
resources or ready access to capital resources, making it difficult for them
to invest overseas, Hirokazu says.
There are far too
many cumbersome administrative procedures and hoops that Japanese firms must jump
through in order to do business in
The hope is that
Although 2013 and
the first months of this year have witnessed an overall decline in Japanese
investment in
The decline in
investment is most likely the result of normal investment cycles, he says,
adding that Japanese investment will most likely rebound and come on strong
in the remaining months of the year and carry over into next year.
Recently, a
delegation comprised of 26 Japanese SMEs operating in the support industry
made a fact-finding tour of Vietnamese localities to seek investment
opportunities. It is noteworthy that a few businesses operating in
These businesses
which supply products to major groups are facing numerous difficulties at
home, such as increased production costs and shrinking market. As a result,
they are eying shifting their investment overseas.
In this context,
SMEs are looking for proper markets to invest in and
As of the end of
April 2014,
Japanese firms are
operating in 18 fields, mainly the processing and manufacturing industry
(1,227 projects worth US$29.9 billion), real estate (30 projects worth US$1.4
billion) and construction (56 projects worth US$1.06 billion).
Investment is
spread throughout 49 provinces and cities. Thanh Hoa province tops the list
with 9 projects capitalized at US$9.68 billion, followed by Binh Duong,
Vietnam
bank to provide services in Myanmar
The Central Bank of
Myanmar (CBM) has authorised 25 foreign banks, including one from
Mizzima News said
25 banks are affected by the new regulations, including one each from
Vietnam, China, India, Mauritius, Australia and France, three each from
Malaysia, Singapore, Taiwan (China), the Republic of Korea and Japan, and
four from Thailand.
Ten foreign banks
will be granted licences in the third quarter of this year to operate in
Granted banks must
have at least US$75 million capital, US$40 million of which will be monitored
by the CBM.
The country
currently has more than 20 private banks and 3 State-owned banks.
Gov't
greenlights auto industry plan
The Government has
approved a new development strategy for the auto industry to enable it to
meet domestic demand and join world production.
Vehicles defined in
the strategy include trucks, cars with more than 10 seats, cars with up to
nine seats, and specialised vans.
Small and
multifunctional vans for agricultural use and serving customers in rural and
mountainous areas will also be encouraged.
The support
industry for the sector will use advanced technologies and enter partnerships
with leading world manufacturers to be eligible to supply spare parts for
global vehicles.
By 2020, the auto
support industry is expected to be able to meet about 35% of the demand for
domestic spare parts and accessories. It should also be able to satisfy more
than 65% of local needs between 2026 and 2035.
The strategy also
targets the export of about 90,000 made-in-Vietnam cars by 2035, encouraging
the production of environmentally friendly vehicles.
Meanwhile,
technology will be upgraded to make products meet international standards.
Several auto
industry centres will also be concentrated into one.
The strategy
underscores the need to boost linkages and co-operation among auto makers and
assemblers, enterprises engaging in support industry, research and training
centres in all economic sectors.
The PM's Decision
1168/QD-TTg dated July 16 approving the strategy will replace Decision
175/2002/QD-TTG on December 3, 2002.
However,
ASEAN + will waive
taxes on car imports between ASEAN member countries, as well as Japan, the
Republic of Korea and China, that are parties to the agreement.
The tax cut poses a
direct threat to
However, the local
auto industry is behind on most of its targets, according to the Industry and
Trade Ministry's report.
While the target
for local diesel production was set to reach 100,000 units by 2010, Truong
Hai is the only company to invest in a factory making diesel engines. It
began production in 2014.
As many as 100,000
gearboxes and 100,000 transmission systems were forecast for production in
2010, but no investment was made.
Meanwhile,
Adding insult to
injury, most of these companies produce simple and low technology products
with low local contents.
Car imports from
ASEAN countries in fact already have increased in volume in recent months.
According to the
Customs Office,
Of these, car
imports from
World Bank
finance project benefits rural regions of Vietnam
The assessment was
made by donors at a workshop on completion assessment of the Third Rural
Finance Project in
The project is
reported to have generated VND9.8 trillion (US$487) million for rural areas
in
After five years of
implementation, the project completed its first stage. By December 31, 2013,
a total US$200 million funded by the WB was disbursed, thus helping to
increase income for farmers and rural businesses.
According to a
representative of Mekong Economics (MKE), a leading economic consulting
company in the Greater Mekong sub-region, finance from the WB created a large
investment of the whole society for the agriculture sector in Vietnam.
The MKE reported
that 94% of end-borrowers said their incomes improved after lending.
Specifically, the
project, with additional funding from local banks and people's credit
institutions and contribution from end-borrowers, created total investment of
up to US$487 million. Of this figure, 90% are medium and long-term
investments.
It is estimated
that more than 135,000 people and businesses in rural areas have access to
loans. The project has generated more than 140,000 new jobs.
At the workshop,
Victoria Kwakwa, WB Country Director for
Deputy PM Hoang
Trung Hai appreciated the implementation of this project noting that it is a
model one. He said the third finance project has done a good job noting that
local relevant bodies need to strictly review ODA funding by learning from
this project.
He also called on
donors to continue assisting
The objective of
the Third Rural Finance Project for
The project aims at
helping the Vietnamese Government to raise the economic benefits for rural
private businesses and households by enhancing their access to financial
resources.
The Bank for
Investment and Development of Vietnam (BIDV) was assigned with managing and
implementing this important phase of the project. Totally, with this loan,
the WB’s funding reached US$548 million for the rural finance project.
After the end of
the disbursement period, the project's funding will continue to up to 2033.
It is estimated that it will help generate a total social investment of up to
US$5 billion from the revolving fund managed by BIDV.
French
businesses keen on
A senior French
official said she will encourage French businesses to invest in large infrastructure
construction projects in
Fleur Pellerin,
Secretary of State for Foreign Trade, Tourism Promotion and French overseas
of the French government, made the commitment at a July 21 reception given Le
Hoang Quan, Chairman of the Municipal People’s Committee.
She told her host
that French businesses that are currently operating in the city are satisfied
with the sound, healthy investment environment in the locality.
She hailed
The French official
welcomed effective cooperation between Lyon city of the Rhône-Alpes region
and
Briefing Pellerin
on the city’s key infrastructure projects, Quan expressed hope the French
government and businesses will assist the city in providing financial and
technical assistance for these projects.
He said HCM City
and France have great potential for increasing cooperation in the areas of
French strength such as transport infrastructure, education, health care,
urban management, culture and arts.
Pellerin is leading
a delegation of French companies to
Seafood
exports encounter numerous barriers
Vietnamese seafood
exporters are facing innumerable difficulties as overseas markets are
imposing a variety of trade barriers and challenges, including levying
anti-dumping tariffs on imports from
Among the most
significant challenges are the European Union (EU)’s anti-dumping measures
from the Agreement on Technical Barriers to Trade (TBT), and the
Additionally, the
Vo Hung Dung,
Chairman of the Vietnam Chamber of Commerce and Industry (VCCI)’s Can Tho
branch, said apart from major markets, some regional countries such as
“It is essential to
support businesses and set up technical groups to deal with lawsuits.
Moreover, businesses should pay particular attention to evaluating their
production situation and studying the export market carefully to avoid
anti-dumping lawsuits” he noted.
Dung also suggested
Vietnamese businesses raise their competitiveness both in price and product
quality. Cultivation methods should be adjusted to ensure food safety,
he said, adding chemicals should be banned in post-harvest and the
preservation process.
Japan
builds 180 composite fishing boats for Vietnam
The company’s
director Yukio Kikuchi said the project will benefit fishermen in Khanh Hoa,
Phu Yen and Binh Dinh provinces.
By using composite
boats, Vietnamese fishermen can raise their yield, reduce fuel spending and
improve their overall stock quality by utilising better preservation
technologies, Director Kikuchi said.
According to the
executive, 10 teams of 36 labourers using 60 boats will be set up in each of
the three provinces. Each fishing trip will last 15 days and the 60 boats
should haul in roughly 150 tonnes of tuna per trip.
The fresh tuna will
be shipped to Japanese seafood auction markets at an average price of US$10
per kilogram, five times higher than the current price of Vietnamese frozen
tuna.
Yanmar hopes that
as from 2015, around 4,500 tonnes of ocean tuna will be exported to
The company is
coordinating with the University of Nha Trang Ship Institute (UNINSHIP) to
design and manufacture the first composite boats, each costing VND8 billion.
The first vessel of its kind will be launched in Khanh Hoa early next month.
Bad debt
settlement still an uphill battle
The rate of
nonperforming loans (NPLs) in Vietnamese commercial banks rose in the first
half of the year from 3.61% in late 2013 to 4.84% in late June 2014, and the
State Bank of Vietnam (SBV) reports total bad debts stand at VND240,000
billion.
The escalating ratio
of NPLs is going, requiring banks to set up provisions funds which in turn
negatively impacts their ability to increase lending activities and get badly
needed money commercial loans provide into the coffers of businesses to fuel
the nation’s economic expansion.
Leading economists
largely attribute the increase in bad debts to slow lending growth in the
banking system, gloomy improvement in corporate financing in the context of
the slow paced economic recovery and settlements by the central bank-run Vietnam
Asset Management Company (VAMC) that are below expectations.
VAMC statistics
show that through the end of June, the company had purchased only VND11,414
billion worth of bad debts, a somewhat modest figure when compared to its
purchase plan of VND70,000-100,000 billion for the whole year.
Experts from BIDV
Securities Company (BSC) emphasised that the VAMC’s purchase of bad debts
might also be rather slow in the third quarter but should increase again in
the fourth quarter as the deadline for the classification of debts
approaches.
BSC experts added
that VAMC’s purchase target of VND70,000-VND100,000 billion of bad debts this
year is also highly dependent on incentive measures in association with
economic benefits which will be applied to credit institutions.
The legal corridors
to resolve bad debts are also hindering the resolution. Recently, the
National Assembly approved an amended bankruptcy law and eliminated a number
of highly complex regulations to supplement to the real estate business law,
but at the same time the legislation erected some new barriers to the
settlement of bad debts.
In the first half
of the year, the SBV's freshly issued documents have effected the
classification of the banking sector’s debts.
The recent issuance
of two complex circulars in June stipulated that credit institutions should
not implement the classification of debts or make adjustments of their
classification according to the results of the Credit Information Centre
(CIC) until the end of the year. This has created an impasse in resolving the
bad debts issue and needs clarification.
SBV former governor
Cao Sy Khiem said that commercial banks have been negatively affected by bad
debts, principally overdue debts in the field of real estate and state-owned
enterprises.
“Although VAMC is
implementing the purchase of bad debts, its efforts can not reduce NPLs at
commercial banks entirely,” Khiem said, adding that ”The SBV’s two recent
circulars have forced commercial banks to use available funds to increase
loss reserves, which further exacerbates their efforts to increase lending.”
BSC experts said
that the purchase of NPLs is not final solution to settle bad debts as VMAC
needs to deal with or sell NPLs, especially to foreign partners.
There have not been
adequate legal corridors to sell NPLs in the first six months of the year,
they say.
Therefore, VAMC
needs to clarify with specificity the details on the subjects, methods and
mechanism of selling bad debts, which will continue to become a challenge for
the national economy in the coming time.
BSC experts
underscore that a clear road map should be devised to avoid an ever worsening
situation, causing greater losses.
Ministry
offers tax breaks to lift recovery
The Ministry of
Finance (MOF) has proposed to erase tax dues, associated interests and
overdue charges worth VND6.53 trillion (US$297 million) from struggling
enterprises, Tuoi Tre (Youth) newspaper reported.
This move is an
attempt to boost the slow business recovery.
"Tax debt
eradication now is understandable because many enterprises have financial
constraints, due to which they are unable to pay primary debts. Moreover, the
overdue charge rate of 0.05 per cent per day, or 18 per cent per year, is too
high," said Do Hoang Anh Tuan, Deputy Minister of finance, cited by the
newspaper.
"However, it
is the National Assembly which will decide on the issue," Tuan said.
If the Government
approves, MoF will submit the proposal to the National Assembly for
consideration.
In the first half
of 2014, about 50,263 enterprises shut shop and 18,271 others were dissolved,
which saw tax debts rising nationwide.
Debt-to-tax
collection ratio was 6.3 per cent in 2011, 8.1 per cent in 2012, and 15 per
cent in H1 2013.
The overdue charge
for bad tax debts was an estimated VND3 trillion ($136 million) in Ha Noi and
VND3.14 trillion ($143 million) in
The ministry
reported that on an average, the overdue charge had increased by VND2
trillion ($90 million) every year since 2009.
Non-State enterprises
pay 62 per cent of the total overdue charge, equivalent to VND5.1 trillion
($233 million)
In a similar
attempt to support the business community, the Ministry of Finance has also
proposed to the Government that enterprises which launch investment projects
in industrial zones in rural areas be exempted from corporate income tax
(CIT) for the first two years, and then get a 50 per cent reduction in the
following four years.
The ministry
proposed that enterprises should be given two months to pay value added tax,
instead of immediate payment, for a minimal VND100 billion ($4.5 million)
purchase and import of equipment.
Trade with
Israel surges 53 per cent in H1
Trade between
According to the
Ministry of Industry and Trade's of Africa-West-South Asia Markets
Department, of the total,
These included
mobile phones and components ($190 million), seafood products ($22 million),
and footwear ($15 million). Meanwhile, it mainly imported fertilisers,
machinery and equipment from the country.
According to trade
experts,
At a meeting in Ha
Noi earlier this week, delegates heard that besides trade, bilateral
co-operation in agriculture between the two countries, also had scope to
develop further.
During a
He suggested that
both nations devise common mechanisms and streamline administrative
formalities in order to facilitate businesses.
The Israeli
Ambassador to
She said this
co-operation would support expanded business partnerships and expressed her
hope that the two governments would work closely to create the best possible
conditions for growth in their respective businesses.
According to VCCI,
Meanwhile,
Trade
promotion programme to help firms expand markets
The Viet Nam Trade
Promotion Agency (Vietrade) and localities would strengthen trade promotion
programmes to help local firms expand their markets, a meeting heard
yesterday in
Bui Thi Thanh An,
deputy director of Vietrade, said 28 trade promotion projects were approved
this year for the southern region with a total budget of VND9.1 billion
(US$428,638).
Many activities,
including trade fairs and exhibitions were organised in the first half of the
year to support local enterprises to promote their products both in and
outside the country, she said.
In addition, 12
business trips were held to help local firms promote farm produce exports in
potential markets, including the US, Japan, China, Cambodia, Myanmar and
Singapore.
Many foreign
business delegations visited
At these exhibitions
and fairs and business trips, firms signed contracts, which had helped expand
export markets, she said.
In the latter half
of the year, exhibitions, trade fairs, business trips, and seminars to
connect producers and distributors will be organised so that companies can
find outlets for businesses.
Minister of
Industry and Trade Do Thang Hai said that the "Vietnamese give priority
to use Vietnamese goods" campaign as well as the "Bringing
Vietnamese goods to rural areas" programme will continue to be
implemented to help domestic firms expand their distribution in the domestic
market.
However, Ngo Minh
Hung, deputy director of Binh Thuan Province Department of Industry and
Trade, said local authorities as well as businesses were still unclear about
opportunities and challenges emerging from free trade agreements, saying that
agencies should provide more information to them.
The trade promotion
programmes should pay more attention to seeking new export markets for
agricultural products, he said.
Mai Thi Anh Tuyet,
director of An Giang Department of Industry and Trade, suggested that local
producers focus more on improving their product quality to enable more
Vietnamese goods to penetrate fastidious markets.
Hai said that,
besides existing trade promotion centres in Hong Kong,
The national trade
promotion programme made positive contributions to exports, he said, adding
that export revenue reached US$70.9 billion in the first half of the year, a
year-on-year increase of 14.9 per cent.
Confusion
surrounds land use fees
The new decree, No
7, which requires home buyers to pay for land use rights when buying an
apartment, has stirred up a debate in the past few days.
However, Tran Duc
Thang, head of the Ministry of Finance's Public Asset Management Department
said people had misunderstood the decree.
Thang said home
buyers would not have to pay for land use rights while buying apartments as
the Government had already collected the money from property investors.
He said the decree
stipulated that land use right money would be paid at apartment projects
which the Government directly manages and operates.
Only those people
who buy houses belonging to the State after a rental period would have to
pay.
The
misunderstanding, however, has become a sore point for home buyers while
giving new hope to property investors.
Nguyen Van Hai, a
resident in Hoang Mai District who had paid 70 per cent for an apartment,
questioned the efficiancy of the decree.
Hai said investors
added money for land use rights to the selling price. If the regulation was
correct, customers would have to pay double for the apartment.
He said selling
prices would rise if the fee was added. The freeze in the real estate market
was due to high selling prices which did not suit people's incomes, he added.
However, property
investors were happy with the regulation.
Nguyen The Diep,
Chairman of the Reenco Song Hong Company, told Dat Viet newspaper that the
decree would facilitate businesses which have been in the doldrums.
Hua Vinh Cuong,
Deputy General Director of Song Da Thang Long Company added that this would
be good news and reduce the burden for investors as land use rights accounted
for 15 to 20 per cent of a project's total investment.
Ministry of
Construction projects per capita living areas to rise by 2020
Average per capita
living areas would reach 25 square metres in 2020, of which the rate would be
29 square metres in the urban areas and 22 square metres in the rural areas,
according to the Ministry of Construction's draft on real estate market
development strategy by 2020.
Between 2015 and
2020, there will be a total floor area of 425 million square metres to meet
the basic demand of people.
Under the
development strategy, the domestic property market would have stable
development, ensure structure of the market was suitable with the demand and
complete the legal formalities for the property market.
FLC starts
construction of residential complex in Thanh Hoa
The FLC Group
begins construction of a residential complex today in
This is a project
that includes a trading and service centre and apartments on a total area of
16,022 square metres in the centre of the city.
FLC General
Director Doan Van Phuong has said the group is building the complex here
because of the high demand for homes and also high property prices.
The project is
expected to be completed in two years. It will supply 400 apartments with an
area between 45 and 100 square metres per unit.
Ha Noi
market prepares for exchange-traded fund launch
The Ha Noi Stock
Exchange has issued a new regulation to guide the management of certificate
transactions of exchange-traded funds (ETFs), paving the way for ETFs to list
fund certificates on the exchange.
Decision No
383/QD-SGDHN, issued on Wednesday, includes provisions on conditions of
listing, transaction management, information disclosure and treatment of
violations.
Fund certificates
of eligibility must be issued by ETFs registered with the State Securities
Commission (SSC) and Vietnam Securities Depository (VDS).
One of the two
founding members of the funds must be a member of the exchange.
Funds must submit
valid listing documents to the exchange. The body will issue approval within
10 working days of receiving the application document.
One positive score is
that if funds make additional issues or buy back their certificates through
swap activities, the exchange will automatically make adjustments on the
number of listings within one working day after receiving the notice of VDS.
ETFs do not need procedures filed.
In other cases,
funds must submit applications and adjustments will be made within two
working days from the date of receipt of valid documents.
The regulation
lists nine cases under which ETF certificates will be put under warning and
eight cases under which their certificates will be brought under control.
Notable cases
include net asset value of funds declining below VND30 billion (US$1.4
million) within three and six consecutive months, or less than VND10 billion
($474,000) in one and three months; tracking error exceeding 80 per cent of
the maximum deviation (15 per cent); and violations on disclosure of
information.
In case of serious
violation on disclosing information, the Ha Noi bourse can suspend trading of
their fund certificates to protect investors.
The body will
consider lifting bans when fund management companies move to overcome their
shortcomings.
In addition, ETFs
can make voluntary delistings and can be forced to leave the exchange if they
fail to satisfy listing conditions or violate listing regulations.
Late last month,
Nguyen Thi Hoang Lan, the exchange's deputy chairwoman, said the
infrastructure to support ETF transactions was ready.
She expected the
first ETF listing would be late in the third quarter or early in the fourth
quarter of this year.
Airport
held up by land clearance
The port city of
Hai Phong plans to raise VND2 trillion (US$95.2 million) through a bond issue
next year for key infrastructure projects, including an ongoing one to expand
Cat Bi Airport.
The only thing
holding up work at the moment is the refusal of five households to move out
of the proposed construction site for the new runway.
Passenger traffic
through Cat Bi Airport has grown by more than 38 per cent during the 2005-11
period to nearly one million passengers a year, the highest growth by any
Vietnamese airport.
Do Tuan Anh, from
the city's Bridges Project Management Board, said that the city would
mobilise capital from different sources.
A total of more
than VND3.66 trillion (US$173.4 million) will be used to lift Cat Bi Airport
to international standards by the end of next year.
When work is
completed, the airport should be able to handle two million passengers a year
- or 800 passengers per hour.
Tuan Anh said that
the airport project kicked off in March last year with VND900 billion ($42.9
million) for preliminary work, including building foundations.
Construction of the
runway will begin by September this year.
"The biggest
difficulty lies in land clearance," Tuan Anh said. Five households still
refuse to remove to allow runways and an airport apron to be built.
Le Manh Hung,
director general of the Airports Corporation of Viet Nam, an investor in the
project, said clearance was supposed to have been completed by the middle of
this month.
"If the
problem is solved, the project could be completed by the end of next year as
planned," he said.
Vice chairman of
the municipal People's Committee Le Khac Nam said that local authorities had
negotiated with the households many times.
"Local
authorities will force them to move if they refuse," Nam said.
Funding for the
project is drawn from auctions of land-usage rights, the city budget and
other sources. The Civil Aviation Authority of Viet Nam, the Ministry of
Transport and ACC Airport Construction Company Ltd. are partners in the
process.
Can Tho
offers interest assistances to attract investors
Nguyen Thanh Son,
deputy chairman of the People’s Committee in the Mekong Delta city of Can
Tho, has signed a regulation on interest assistance to projects calling for
investment.
The city
authorities will aid investors with 20 percent of interest rate of a certain
loan amount to carry out projects.
140-hectare Con Au
eco-tourist site in Cai Rang District, Con Son tourist site in Binh Thuy,
technical infrastructure construction and trading projects in Hung Phu 1, 2A
and 2B, O Mon and Bac O Mon industrial zones will enjoy the interest
assistance on a maximum loan of VND10 billion (US$472,000) each.
It will not exceed
VND5 billion (US$236,000) to technical infrastructure construction at Vinh
Thanh Industrial Zone, industrial and handicraft small industrial zones in
districts and a logistics center projects.
Can Tho conference
center, five-star hotels and resorts in Ninh Kieu and Cai Rang Districts will
get the assitance on maximum loans of VND3 billion.
The 20 percent
interest assistance will be applied on VND2 billion loans to production and
trading projects in local industrial zones with minimum capital of VND60
billion.
Source:
VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
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Thứ Ba, 22 tháng 7, 2014
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