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BUSINESS
IN BRIEF 13/8
BKAV among
10 top brands in Viet Nam
Internet security
BKAV company has been listed among the 10 "Most Well-known Brand
names" in the country by the Viet Nam Copyright Association.
Others include
Vingroup, Bao Viet, and Traphaco
The listing focuses
on brands with outstanding achievements related to international integration
to mark the anniversary of
BKAV, the only one
technology company in the list, is well-known for its anti-virus software
that sells for VND299,000 (US$14). It has 17 million users in
Last year it was
described by Gartner, an American information technology research and
advisory firm, as one of the "Coolest Vendors in Emerging Markets."
The annual listing
is done together with the Viet Nam Union of Science and Technology
Associations, and Viet Nam Chamber of Commerce and Industry.
Zalo attracts 15 million subscribers
Vietnamese
over-the-top (OTT) service Zalo had 15 million subscribers and had handled
185 million messages per day by the end of July.
The service, which
allows users to make calls and send messages over the Internet, was launched
in August 2012 by VNG Corporation.
The company expects
to launch Zalo's English version this year, aimed at foreign users. Besides
Established in
September 2004, VNG started as an online games operator in
Software
for self-designing website gets upgrade
Mat Bao Media has
introduced the 2.1 version of its Chili, a website design software for
business start-ups.
Since it was first
introduced in October 2012 the software has saved costs for start-ups by
providing self-designed websites within two minutes and making them easier to
manage and flexible. It is available in five languages: English, French,
Japanese, Chinese, and Korean.
By the end of last
year 10,000 clients had tested it and 1,000 contracts were signed.Clients can
see a "demo website" of the new version. Mat Bao Media designs
databases focusing on sales, enterprises, and typical websites.
Chef Meat
Viet
The Chef Meat Viet
The company, a
subsidiary of Chief Meat Chigusa, was established last year with total investment
of US$1.3 million. It will produce sausage, smoked meat, salmon,
Parkson
invests $5m in
The Parkson Group
will invest US$5 million to build its first high-end shopping mall in the
central city, general director of Parkson Viet Nam Tham Tuck Choy said in a
meeting with
The 12-storey mall,
built by Duc Manh Group, will open on
The Thailand Trade
Exhibition 2014 will take place from August 14 -17 at the Ha Noi Friendship
Cultural Palace.
Nearly 150 leading
Thai companies will display products including food and beverages, household
products, textiles and garments, jewelry, health and beauty products, auto
parts, bicycles and accessories, decorative items and electrical appliances.
The exhibition is
co-organised by the Department of Export Promotion, Ministry of Commerce of
Ha Noi
supports price stabilisation
The capital will
support enterprises participating in its price stabilisation programme, said
participants at a conference on Thursday.
The programme aims
to increase consumption of high-quality products by stabilising their prices.
Each year, Ha Noi spends hundreds of billions of dong to set up more than
2,200 joint venture price-stabilised selling points under the programme.
The city committed
to create a level playing field for enterprises, offering favorable
conditions for enterprises in exploiting commodity sources, signing contracts
and rotating funds.
Facelift
planned for luxury mall
The
Up to 70 per cent
of the retailers have said they would continue to operate in the mall after
the new round of renovation; 25 per cent have agreed to have their their
booth's area reduced; and only 5 per cent have said that they would stop
operations, the report said.
The newspaper
quoted Johnathan Hanh Nguyen, chairman of IPP Group which is an
investor-cum-operator of the
The
In the long term,
the luxury brands will still gain a foothold in
The Trans-Pacific
Partnership (TPP) negotiations between
Int'l forum
focuses on
The Greater Mekong
Sub-region (GMS) must ensure that economic corridors yield benefits in terms
of trade, investment, and jobs, participants at the sixth GMS Economic
Corridors Forum (ECF) heard yesterday.
The forum,
co-organised by
They reviewed
achievements during the last six years and took stock of cross-border
transport and trade initiatives in the region.
Vice-president at
the Asian Development Bank, Bindu Lohani, said that most of the
infrastructure required for enhanced connectivity had been put in place,
particularly the transport links that formed the base of the envisioned
corridors.
"The crucial
question now is how to ensure that these infrastructure links will yield
their intended benefits in terms of increased trade flows, investment
activity, industrial growth, employment, and incomes," he said.
He said the ECF
needed to go back to its original focus of finding ways to boost trade and
investment, and hasten the development of industries along the economic
corridors.
Ways to achieve
this included through transport and trade - and the development of special
economic zones, such as cross-border economic zones, export processing zones,
and industrial parks.
The forum also
discussed ways to improve co-ordination and integration in carrying out the
proposed measures by sharing experience within and outside the region and
promoting involvement of the private sector.
Deputy Minister of
Planning and Investment Nguyen Chi Dung said that the development of economic
corridors was a complicated and time-consuming process.
"But it is the
most effective tool for country members to approach enhanced connectivity,
competitiveness, and a greater sense of community," he said.
Sok Chenda Sophea,
secretary general of the Cambodia Development Council, said that economic
corridors helped the country develop its economy. He added that co-operation
with neighbouring countries was crucial for a sustainable economic
development.
The GMS countries
formed the forum in 2008 to bolster efforts in transforming GMS transport
corridors into economic corridors connecting dynamic hubs of economic
activity.
The forum focuses
on economic corridor development and helps improve interaction between the
public and private sectors, and between central and local governments.
The ADB has
supported the establishment of the East-West, North-South, and Southern GMS
Economic Corridors since 1998 to promote economic growth and integration in
the subregion.
SOE
equitisation goal reached, but quality still an issue
As the Government
urges to streamlines the operation of State-owned enterprises (SOEs), the
target can be attained in terms of quantity. However, there are doubts about
the quality of most businesses after equitisation.
Prime Minister
Nguyen Tan Dung has approved restructuring proposals of 20 corporations as of
July; additionally, 55 companies were equitised and 15 others were merged in
the first seven months of this year.
The equitisation
target of 432 businesses by the end of next year was achievable, said the
Enterprise Reform and Development Commission.
The pace of
equitisation was positive at the Ministry of Transportation, the Viet Nam
National Textile and Garment Group (Vinatex) and Viet Nam National Shipping
Lines.
The State
divestment reached almost VND3 trillion (US$141.5 million) in the first seven
months, increasing by three times compared to last year but still lower than
expected.
The Prime Minister
asked SOEs to focus on organising their personnel.
"If business
leaders cannot fulfill their obligations, they may think of voluntary
resignation," he said.
So far this year 21
SOEs have finished their IPOs, yet only seven succeeded in selling all the
shares they offered, according to ttvn.vn.
State ownership in
ten of the 21 enterprises remained above 90 per cent, including Ha Noi
Construction, Viet Nam Water and Environment Investment,
Nguyen Hoang Hai,
General Secretary of the Viet Nam Association of Financial Investors, said,
"Large investors don't want to hold a minor stake in these companies, so
they lose interest due to what is currently happening in the IPO
process."
Meanwhile, foreign
ownership in some large listed firms has reached its limit, so foreign
investors are putting their hopes on IPOs of enterprises that are soon to be
launched, such as Vietnam Airlines, Mobifone, Vinatex, Airports Corporation
of
Ha Noi
supports enterprises with loan interest assistance
The capital city
will support post-investment interest rates for medium and long term loans in
Vietnamese dong for Ha Noi-based enterprises, according to the municipal
People's Committee.
Accordingly, the
city will support 0.2 per cent of the loan interest rate per month, or 2.4
per cent per year, with tenure of 12 months. The support is meant for loans
whose interest rate payment is between January 1, 2014 and December 31, 2014.
Those loans must
come from credit institutions for investing in new projects, expanding
existing projects, and innovating techniques and technology in Ha Noi.
The benefiting
enterprises must also operate in manufacturing the city's key industrial
products, agriculture, processing farm products and foodstuff, producing
alternative products for imported goods, with sales of at least VND100
billion (US$4.69 million) in 2013 and employing over 200 workers.
Application forms
for the aid should be sent to the municipal Department of Finance, which will
then submit it to the People's Committee for approval.
Statistics from the
committee showed that total investment in the city in the first six months of
the year was estimated at VND871.1 trillion ($41.4 billion), increasing 10.2
percent against the same period last year.
The capital city
has so far done its planning on improving the business environment as well as
increasing its provincial competitiveness index (PCI).
In a recent meeting
with businesses in the capital, the municipal authorities pledged to continue
to resolve difficulties and obstacles faced by enterprises in agriculture,
rural areas, export products and support industry.
Deputy chairwoman
of the city People's Committee, Nguyen Thi Hong, said the city's programme to
connect banks and companies has exceeded the achievements of the whole of 2013
in terms of the number of firms participating and the number of industries
they are in and credit value.
Banks have lent
almost VND20 trillion (US$947.9 million), the target for the year, compared
to VND13.7 trillion ($649.3 million) last year.
At the meeting 10
lenders – Sacombank, Vietcombank, Eximbank, Vietinbank, BIDV, OCB, DongA
Bank, Southern Bank, MHB, and MB – signed agreements to provide loans worth
VND3.52 trillion ($167.6 million) to 39 companies that have signed up for the
city's price-stabilisation programme, small traders, and wholesale markets.
"I propose
that the State Bank of Viet Nam, Department of Industry and Trade, HCM City
Enterprise Association, district people's committees should co-ordinate
closely to provide additional loans worth VND10 trillion ($474 million) in
the remaining five moths of this year," Hong said.
She said the loans
would focus on supporting industries; six "breakthrough" programmes
to improve administration, infrastructure, and human resources; and
industries with high value addition like electronics, information technology,
pharmaceuticals, rubber, and food processing.
She believed that a
target of VND30 trillion ($1.42 billion) could be achieved.
Nguyen Hoang Minh,
deputy manager of the
"Companies
have shown signs of recovery. The city's economy grew in the first seven
months, prices were up by 1.22 per cent, industrial production is up 6.2 per
cent, and retail sales is up 12.8 per cent."
The programme also
helped reduce the cost of borrowing for companies, he said.
"Currently,
the maximum interest rate for short-term loans to five priority fields –
agriculture-rural areas, exports, supporting industries, firms using
high-technology, and small and medium-sized enterprises – is 8 per
cent."
It is 10-11 per
cent for medium-term loans.
Over one month
after launching its initial public offering,
Managed by Vietfund
Management Company, the fund had a minimum initial capital of VND50 billion
(US$2.35 million). However, Pham Khanh Lynh, deputy general director of the
company, believed VFMVN30 could raise VND100 billion ($4.7 million) by the
time it concluded the IPO on August 20.
The fund's
customers are mostly securities firms, though some individual investors are
also registered to purchase its certificates for billions of dongs.
Securities
companies have shown great interest in the first Vietnamese ETF, based upon
the intense competitiveness in the brokerage market. Having the fund
certificates in their portfolios means securities firms will possess more
services for customers when VFMVN30 is listed.
Notably, ETF is one
type of high-transparency investment. Investors can frequently track the
fund's portfolio and their investment value. In addition, investing in ETFs
is much safer than buying specific shares, Lynh noted. "As a result, the
volatility of profits or losses remains lower."
Lynh noted that the
fund was expected to list certificates on the HCM City Stock Exchange next
month.
Dai-ichi
Life reports premiums up 38 per cent
The Dai-ichi Life
Insurance Company of Viet Nam (Dai-ichi Life Viet Nam) reported that premiums
rose in the first half of this year to VND1.030 trillion ($48.5 million), a
year-on-year increase of 38 per cent.
In the first seven
months of this year, the company opened ten new general agents.
The company, which
now has 130 offices, surpassed one million customers on July 21.
260,000 ha
of rice to be transformed into other crops by 2015
About 260,000 ha of
rice will be transformed into other crops between now and 2015 under a plan
recently adopted by the Ministry of Agriculture and Rural Development.
According to the
plan on transformation of crop structure on rice growing areas in the 2014-2020
period, next year, the Mekong Delta will change its cultivation model from
growing rice to both rice and other crops in combination with aquatic
breeding.
Meanwhile, the Red
River Delta, northern mountainous and midland, and northern central regions
will shift from rice to other crops such as corn, soybean, sesame, peanut and
vegetables.
In the 2014-2020
period, corn and other crops will be grown instead of rice in 105,000 ha in
the southern central coastal region and 15,000 ha in the
The southeastern
region will switch from growing rice to those with high economic values such
as flower, ornamental trees and safe vegetables.
The transformation
of crop structure must ensure that all factors suitable to rice growing are
maintained and transformed crops have higher competitiveness and economic
efficiency than rice.
Quang Ninh
aquatic output reaches 51,500 tonnes
The
Aquaculture output
reached 17,900 tonnes, up 16.2 per cent year-on-year, while exploitation
output reached 33,500 tonnes, down 4.7 per cent, according to the provincial
department of agriculture and rural development.
The total fish
farming area is 20,100 hectares, meaning the annual target has essentially
been reached.
Vissai Ninh
Binh ships clinker to Reunion Island
Vissai Ninh Binh
exported its first shipment of clinker to
The shipment,
composed of 115,000 containers weighing 1.5 million tonnes each, was Viet
Nam's largest-ever cement export contract, said Nguyen Tien Dat, deputy
director of the Vissai Group.
Ex WTO head
in Ha Noi for trade forum
Ex-chief of the
World Trade Organisation Pascal Lamy called on Viet Nam yesterday to
eliminate bureaucratic procedures, improve logistics and focus on adding
value to the economy to better benefit from international trade.
Speaking at an
event organised by the Viet Nam Chamber of Industry and Commerce, Lamy, who
officially signed
Increased trade
openness meant countries must pay more attention to non-tariff measures to
protect consumers from risks such as those related to health and the
environment, he noted.
Lamy said
Vietnamese enterprises must realise that their products had to meet stricter
technical and safety requirements in the context of global trade, even in the
lower-end market segment. Improving the quality of products would allow
countries such as
Lamy is scheduled
to attend the first international conference on multilateral foreign policy
held in Ha Noi today. The 200 domestic and foreign delegates, including
former UN Under-Secretary General Jayantha Dhanapala and former Singaporean
Foreign Minister George Yeo, will discuss the implementation of
Export turnover
from
Cell phones and
components saw the highest turnover with $297.3 million, accounting for 17.6
per cent of the total.
Computers and
electronic products ranked second, accounting for 15 per cent. Footwear
products were third, accounting for 13.8 per cent.
Simpler tax
procedures to take effect
Finance Minister
Dinh Tien Dung has promised to eliminate unnecessary tax filing procedures in
September in order to shorten the process, as well as the clearance time for
imports and exports.
In recent years,
many administrative procedures have been reformed to accomplish this, Dung
said in a People Ask-Ministers Answer programme on Sunday. However, the
duration remained too long compared to other regional countries.
Domestic
enterprises waited 1,050 hours to have their tax filings done in 2008,
according to the World Bank. The time was reduced to 941 hours in 2010 and to
537 in 2012.
The ministry has
worked with the Vietnam Chamber of Commerce and Industry and organisations
designated by the World Bank to reduce the time it takes to complete tax
declarations and payments.
In July, the
ministry submitted a draft resolution on reforming administrative procedures
and customs that aimed to reduce processing time from 537 to roughly 290
hours.
The ministry
planned to make personnel training and rotation changes and vowed to cut
one-third of formalities relating to businesses' social insurance payments so
that processing time could be cut nearly in half.
The ministry aims
to complete its re-examination of unnecessary procedures by this Friday.
Major
investors eye Vietnamese footwear industry
The domestic
leather and footwear industry is seeing positive signs in the market.
Several leading
footwear manufacturers such as Nike, Adidas and Puma have given their orders
to Vietnamese firms, instead of the manufacturers in
Deputy Minister of
Industry and Trade Do Thang Hai said that most of the large local businesses
in the sector have received orders from foreign countries for the first
quarter of next year.
Hai said the
well-known brands wanted to expand their operations in
The sector should
promote production and trade, and improve their products' competitiveness to
satisfy the manufacturers' requirements, he said.
Statistics from the
ministry showed that in July, the footwear sector was stable as its output of
leather shoes was estimated at 21.9 million pairs, representing a 10.4%
increase in comparison with July 2013.
In the first seven
months of this year, the sector's output was 150.4 million pairs, a 19.5%
increase over the same period last year. Its export turnover posted a 22%
year-on-year increase to touch US$5.75 billion. The item has been one of the
country's staple exports.
Estimates from the
Vietnam Leather and Footwear Association (Lefaso) also revealed that the
shift of production lines to the industry in the seven-month period was a 25%
year-on-year increase.
Speaking about the
interest of Japanese small-and-medium sized enterprises in investing in
He added that the
ministry in co-operation with other ministries would submit a proposal to
Prime Minister Nguyen Tan Dung to promulgate priority policies for the
support industries in the period 2011-20.
The proposal would
allow specific items, sectors and measures to support the support industries.
In addition,
businesses should strive for long-term strategies and investment.
Head of the Light
Industry Department Phan Chi Dung said that to take advantage of the
opportunities provided by free-trade agreements (FTA), many foreign investors
are developing support industries for the footwear sector in
Foreign companies
are speeding up their projects in
Over 7.5
bil in FDI pumped into Bac Ninh
Bac Ninh led the
nation’s 45 provinces and cities in attracting foreign investment for the
first seven months of 2014, reports the General Statistics Office (GSO).
The Bac Ninh
Provincial People’s Committee in turn announced that cumulatively it has
approved investment certificates for 578 foreign invested projects with total
investment capital of US$7.567 billion.
According to the
Committee, in July alone, the province issued certificates for 9 new foreign
invested projects with total investment capital of US$1,004 million.
In the reviewed
period, BacNinh took the top spot among 45 provinces and cities in FDI
attraction.
Rubber
exports set to bounce back
Export prices for
rubber are expected to recover to US$2,000 per tonne in the next three years,
following sharp reductions due to high international rubber surpluses,
according to local experts.
The Viet Nam Rubber
Association (VRA) said, at present the export price of rubber has stood at
$1,840 per tonne, 40 per cent lower than the same period last year and 60 per
cent lower against the record high price in February 2011, reported
The fall in the
export price of rubber was due to high inventories of rubber throughout the
world, said the association.
According to the
International Rubber Study Organisation (IRSG), inventories of natural rubber
on the world market are expected to reach 714,000 tonnes this year.
Vietnamese export
rubber prices at the end of June and early July were VND36-41 million ($1,700
- $19,500) per tonne, while production costs were VND38 million ($18,000) per
tonne, said Tran Ngoc Thuan, general director of Viet Nam Rubber Group (VRG).
However, the export
price of Vietnamese rubber is expected to increase to $2,000 per tonne during
the next three years because of higher demand on the period of recovering the
world economy, Thuan said.
With this price,
rubber growers will still have profits of VND3-5 million per tonne, Thuan
noted, though they should seek solutions to cut production costs and further
increase their profits.
He said the current
export price for Vietnamese rubber is not too low, but it is lower than the
record high price of some $3,300 per tonne in 2011-12.
Now, farmers still
receive profits from growing rubber trees, though the profits are not as high
as in the past, Thuan said, so this period might prove to be a good time for
farmers to improve the quality of their rubber trees.
Meanwhile, Minister
of Agriculture and Rural Development Cao Duc Phat said demand for rubber on
the world market has increased, but oversupply has pushed the export price of
rubber down. Also, the high inventory of rubber, at present, will fall in the
next few years due to the economic recovery throughout the world.
Therefore,
industries and sectors should closely follow developments in the world rubber
market in the coming years to learn of support for farmers in the remaining
development of rubber trees, said Phat.
Also, the domestic
rubber industry should review its plan to develop rubber trees to promote the
restructuring of the industry and maintain sustainable development in the
industry for improving the quality and value of rubber, he said.
At present, the
total area of rubber trees in
Yet, when export
prices dropped, farmers rushed to cut trees so they might grow other types of
industrial crops.
Regarding the
market,
For the long term,
ministry officials urge, the domestic rubber industry should increase trade
promotion activities, expand export markets and find new export markets to
reduce dependence upon the Chinese market.
The industry should
also diversify export products from the rubber from trees, the ministry said.
Tran Ngoc Thuan,
general director of the VRG, said the group has mainly exported latex and
developed products related to rubber trees, including processing of rubber
wood and products made from rubber, such as tube and tire, shoe soles, gloves
and mattresses.
In the first seven
months of this year the country exported 451,000 tonnes of rubber, valued at
$828 million, a drop of 10 percent in volume and 32 percent in value.
Ministry
tries to manage sugar inventory
The Ministry of
Industry and Trade late last week required businesses to cease importing
sugar for re-export via auxiliary border gates in the
This move was
intended to block the illegal sale of this sugar in the domestic market.
Ha Huu Phai, head
of the Viet Nam Sugar and Sugarcane Association in the northern region's
branch told Dau tu (Viet Nam Investment Review) newspaper that this would
help the domestic sugar and sugarcane industry to partly remove difficulties
faced by high inventories.
According to the
association, on August 4, the industry still had an inventory of 414,000
tonnes of sugar even though the Ministry of Industry and Trade allowed
unrestricted sugar exports in small volumes via the neighbouring border
gates.
Last year, the
quantity of temporarily-imported sugar for re-export from
It, together with
the sugar smuggled in via South Western border gates, had caused the sugar
price produced in the country to become VND3,000 to VND4,000 (15 cent - 19
cent)per kilo higher than that of illegal imported sugar.
According to the
Viet Nam Sugar and Sugarcane Association, smuggled sugar, which was priced
lower and amounted to hundreds of thousands of tonnes a year harmed local
producers amid a huge volume of sugar stockpiles.
Besides the
illegally imported sugar, however, experts were also concerned about the
rising pressure on domestic sugar and sugarcane production industry when
import tax on sugar would be cut to zero from the current 5 per cent by 2015
under the ASEAN Trade in Goods Agreement (ATIGA).
Moreover, the cheap
sugar from outside the ASEAN bloc would also flood the country once the
Trans-Pacific Partnership Agreement was signed, they said.
Currently, the
price of sugar in
This was because of
low productivity of local sugar and sugarcane production.
Experts have urged
sugar and sugarcane enterprises to quickly undergo comprehensive
technological restructuring and introduce a new sugarcane breed into
production if they do not want to see the doors shut on them when cheap
priced sugar enters the country.
Deputy Minister of
Agriculture and Rural Development Vu Van Tam said that sugar processing
companies must revamp their production in order to cut costs, which was vital
for competition.
He added that the
planning of cultivation areas should be revamped to ensure efficiency and
productivity.
"
The two-year
project focuses on enhancing business environment, revamping the rural sector
and improving competition policy.
The Central
Institute for Economic Management, together with the
One major goal is
to reduce administrative burdens on private sector investment.
"In terms of
ease of starting a business,
He also said the
project would support legal and regulatory reforms, such as revising the laws
on Enterprises and Investment and shortening the list of prohibited and
conditional business sectors in order to give private businesses more space
to grow.
There will be also
steps to remove "market distortions" caused by state-owned
enterprises, including a proposal of "a fixed state-budget regime"
applied to state enterprises.
CIEM, the
government's top think tank, takes the position that efficient competition
between public and private business requires stripping state companies of
their current privileges and exclusive rights.
The RVC project
also aims to identify barriers to restructuring
"Rice export
volume is high, although its revenue has contributed only 10 per cent to the
country's total export turnover of key agricultural products," said Dang
Kim Son, head of the
He said the RVC
project would address "institutional bottlenecks" to improve the
value chain for rice, from planting and processing to marketing.
The pilot programme
will run in the Mekong Delta
"
Vietnamese
shrimp exports up more than 50%
The total export
value of Vietnamese shrimp and prawns increased by 59 per cent to reach
US$1.96 billion between January 1 and July 15 this year.
According to the
general department of customs, the export value of shrimp and prawns in the
first half of July increased by 31.4 per cent year on year to reach $166.1
million.
Between January and
mid-July, the export value of white-leg shrimp accounted for 59.5 per cent of
the total export value of $1.165 billion, while the export value of tiger
prawns was $660 million, said the customs department.
The three largest
export markets for Vietnamese shrimp and prawn were
However, in the
first half of July, the strongest growth in export value year over year —
between 100 per cent and 298 per cent — were in exports to the Netherlands,
South Korea and the US.
The total value was
expected to exceed $2 billion for the period between January and the end of
July, the general department of customs said.
Truong Dinh Hoe,
general secretary of the Viet Nam Association of Seafood Exporters and
Producers, said the association expects Viet Nam to gain $3.5 billion from
exporting shrimp and prawns this year, compared to $3 billion last year,
reported the Thoi bao Kinh te Viet Nam (Vietnam Economic Times )newspaper.
This is because the export of Vietnamese shrimp and prawns increased in
quantity, value and demand in the first half of this year.
Meanwhile,
Supporting
industry hoped to drive industrial growth
The city is now
home to 10 industrial zones (IZs) covering an area of over 1,500ha. It plans
to use 650ha of its land to build three IZs designed for supporting industry
companies, including foreign direct investment firms that will support
technology transfer and human resources training for the city.
Head of the
management board of the HCM City Export Processing and Industrial Zones Authority
(Hepza) suggested selecting Hiep Phuoc and Le Minh Xuan 3 IZs in Nha Be and
Binh Chanh districts to draw businesses in the field to serve engineering,
electronics, and computing.
Particularly, the
Vietnam-Japan technology park in Hiep Phuoc, which is expected to be put into
operation in this October, will help promote links between Vietnamese and
Japanese small- and medium-sized enterprises (SMEs), contributing to the
city’s supporting industry development.
Director of the
municipal Department of Industry and Trade Le Van Khoa proposed the city draw
up a legal resolution on developing SMEs in the field along with setting up a
group of research on the local products that are competitive in the market.
The Ministry of
Industry and Trade is now developing a decree focusing on measures to support
technology, production management and customer services in the field, which
will be submitted to the Government in the fourth quarter of this year.
Bac Ninh
focuses on developing support industries
The
Bac Ninh currently
has 15 industrial parks (IPs) including nine in operation with total
occupancy rate of 79 percent. The location of many world-renowned
multi-national corporations such as Canon and Samsung has spurred Bac Ninh’s
industrial growth towards modernisation.
According to the
Department of Industry and Trade, the province’s industrial production value
in first six months of 2014 was estimated at 317.515 trillion VND, up 13.8
percent compared to the same period last year.
In particular, the
state sector reached 1.645 trillion VND, the private sector reached 2.216
trillion VND, and the FDI reached 293.652 trillion VND. The export value also
reached 14.874 billion USD, an increase of 26.3 percent over the same period
last year. Total retail sales of goods were estimated at 13.648 trillion VND,
up 8.7 percent.
It is expected that
the provincial industrial production value will hit 707.515 trillion VND and
export value will reach 30.874 billion USD this year, said Vu Duc Quyet.
Bac Ninh is
expected to further boost local industrial development as the Samsung’s and
Nokia’s projects are kicked off.
According to the
Department of Industry and Trade, to date, the province has recorded about
200 support industry investment projects, with total registered capital of
more than 1.33 trillion USD.
Cheap labour is no
longer a competitive advantage in attracting FDI for Bac Ninh. The province
needs to be concerned about how to meet the needs of newly-located foreign
companies to produce reasonably priced quality products and spare parts being
able to compete with the imported alternatives. Therefore, the province is
gearing up the development of its support industries.
According to Deputy
Director of the Department of Industry and Trade Ta Dang Doan, the
development of support industries is aimed to attract small and medium-sized
enterprises (SMEs) into supply of products, components and associated services
for large corporations such as Samsung, Canon, and Nokia; and gradually
acquire the technical know-how.
“Bac Ninh will
create favourable conditions for SMEs in terms of land lease and rental,
machinery and equipment funding. In addition, it will focus on Japanese
investment promotion,” he was quoted as saying.
Source: VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
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Thứ Ba, 12 tháng 8, 2014
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