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BUSINESS
IN BRIEF 2/8
Infrastructure
projects awaiting new Japanese ODA
The Japan
International Cooperation Agency (JICA) plans to send a delegation to
This is one of the
new projects to be evaluated after
In phase II, Tien
Sa port has a total investment of between US$100-120 million and it is
capable of receiving container ships of up to 70,000DWT and cruise ships of
100,000GRT.
“We do hope the
project will get the nod from Japan as the port has been overloaded from its
20% growth annually over the years,” said the project manage net unit.
Tien Sa
seaport need upgrading to receive large container ships
The Ministry of
Transport (MoT) signed a memorandum of understanding with JICA in December
2013 to support a feasibility study and capital appraisal.
It asked the
Ministry of Planning and Investment to include the project in the priority
list of projects seeking Japanese ODA in the 2014 fiscal year.
In the list are
also three other projects to build an Intelligent Transport System (ITS) for
the expressway network in the north (JPY6.8 billion), 100 dilapidated bridges
along highways (JPY30 billion), and a 2.7km road section (JPY10 billion)
linking East-West Revenue and HCM City-Trung Luong expressway.
The MoT is working
with relevant agencies to increase the transparency in loan management; it is
also hastening key transport infrastructure projects using Japanese ODA.
The three Japanese
ODA-funded projects in
The MoT has
proposed a list of 29 transport infrastructure projects seeking Japanese ODA
for 2014-16 with a total investment of JPY470 billion (US$6 billion). Most of
these projects are focused on urban transport, seaport, expressway, airport
and railway construction.
CPI for
August to inch up 0.2%
Despite the two
petrol price hikes, the consumer price index (CPI) for July rose 0.23% over
June, and the CPI for August is forecast to edge up 0.2% compared to July.
Market observers
say inflation is expected to inch up on the back of an inadequate supply of
food and foodstuffs to meet demand during the rainy season.
In August the
capital city of
Power
Logics Vina factory inaugurated in Vinh Phuc
Power Logics Vina
Co. Ltd, a wholly Korean invested company, held a ceremony recently to
inaugurate its factory in the
Covering 2.3ha in
the Khai Quang Industrial zone, the factory provides protection circuit
modules (PCMs), smart modules (SMs) and camera modules (CMs) to Samsung
Mobile, with a monthly capacity of 4.8 million products. It has created 500
jobs for local people.
The province is
encouraging the development of support industries to assist domestic and
foreign businesses.
Vinh Phuc province
is one of the leading localities across the country in attracting foreign
direct investment (FDI) in the first six month of this year.
They granted
investment licenses to 39 projects including 18 FDI projects totaling
US$182.1 million.
Most projects were
focused on support industries and highly competitive hi-tech products.
FDI tourism
zone licenses revoked
The central
Invested by Varella
Ltd Company, the US$37.5 million Hon Nua island eco-tourism zone project was
licensed in March 2008, and the US$11 million Tuy Hoa coastal hotel and
resort zone project was approved in October 2009.
The Department of
Planning and Investment had extended the deadline to December last year, but
the two projects still have not been implemented.
The province
revoked the investment deposit of the Hon Nua island eco-tourism zone project
worth US$124,807 and added it to the State Budget.
This year,
Last year, the
province nullified nine projects with total registered capital of VND1.24
trillion (US$58.29 million), mostly tourism, real estate, mineral and
hydro-power projects.
Overseas
remittances to
Head of the State
Bank of
Minh said the
increase is a positive sign because the peak remittance season hasn't begun
yet.
In the first six
months, the remittance volume through the banking system in
Market observers in
the City said that recipients of overseas remittances are getting less
interested in securities, deposits and gold due to the low profit of 0.25 to
1% annually, which is a result of the Government's policy in the last two
years to discourage people from hoarding the dollar.
To ensure a
substantial recovery, recipients are likely to invest in the property market
which the Government's housing packages are designed to support.
In 2013, about
US$4.8 billion was transferred to
Last year,
Ways to
improve VN business climate
Addressing a
seminar in
This is an
influential reform package aimed at making the business climate better and
increasing the economy’s competitive capacity, he said.
McGill, a
consultant for the USAID-funded Governance for Inclusive Growth (GIG)
Programme in
With such a
position, the country’s per capita income should be US$7,545, much higher
than its current US$1,400, he said.
Another area McGill
suggested
Furthermore, he
said, cross-border trade is rife with shortcomings resulting in waste of at
least 15% of
Dr. Nguyen Dinh
Cung, Director of the Central Institute for Economic Management (CIEM), in
turn said his institute is working closely with the business community
seeking common measures to help
Currently we are
targeting for
Vietnamese agencies
are required to trim administrative procedures and business costs in three
key areas of cross-border trade, tax and electricity access, as suggested by
the World Bank.
At the seminar, the
General Department of Taxation, Vietnam Customs and Electricity of Vietnam
(EVN) vowed to improve the three indices from now till 2015.
To make the reform
a great success, CIEM and USAID/GIG representatives said they will work
closely with trading associations to map out a practical plan of action.
Japanese
food producers eye
Many Japanese food
businesses consider
Kazuhiko told a
recent seminar in
JETRO Executive
Director Yasuzumi Hirotaka in
He said Japanese
enterprises are currently strengthening cooperation with Vietnamese partners
in the field of food processing, aiming to enhance the value of Vietnamese
agricultural products through transferring its agricultural development
experience.
Remarkably, a
number of entrepreneurial food companies from the
Auto
imports hit three-year highs
The number of
imported completely built units (CBU) increased month on month in the first
half of the year and even rose 1.5 times over the first six-month period last
year.
Automobile imports
had declined sharply in both volume and value since June 2011 and the
downward trend had lasted till the beginning of 2014.
In July 2014, an
estimated 6,000 cars were shipped to
Overall,
Vietnam-Cambodia
border trade reaches over US$650 mil
Of the figure, over
US$350 million came from exports and US$300 million from imports. The
provincial businesses mainly exported instant noodles, plastics, washing
power, cosmetics, and construction items to
To facilitate trade
exchange between businesses and local residents, the province formulated a
project to upgrade routes to border gates with total investment capital of
over VND1,000 billion.
Electronics
firms see light at the end of the tunnel
Companies operating
in the electronics industry have tremendous opportunities to carve out their
own specific niche in the global marketplace and thrive, said economists at a
seminar in
“Five years after
making the decision to open its retail market in line with World Trade
Organization (WTO) commitments, the electronics industry is finally seeing
light at the end of the tunnel, said Pham Ngoc Hung, Vice Chairman of HCM
City Union of Business Associations (HUBA).
The increased
economic prospects for global integration are brought about by free trade
agreements under negotiation, most particularly the Trans-Pacific Partnership
(TPP), he shared.
Vietnamese
companies, especially electrical and electronics firms, should not take
anything for granted, however, and should make every effort to meet or exceed
international standards for technical safety, and certificate of origin
(C/O), he said.
Echoing Hung’s
view, Stanley Ong, Assistant Vice President at TUV SUD ASEAN added that many
countries around the globe are actively turning to more environmentally
friendly sustainable development, and Vietnamese companies should seize the
opportunity to play a global leadership role in the development.
“The electronics
sector should invest heavily in research and development to ensure their
products comply with the strictest of international standards applying the
latest in scientific and technological advancements,” Ong said.
Finally yet most
importantly, Vietnamese electronics firms should fully develop a marketing
strategy touting the environmentally friendly attributes of their products
and certificate of origin (C/O), specifically targeting stimulating exports
to the demanding markets, Ong said.
Economists at the
seminar were in general agreement that such a marketing strategy would help
electronics firms increase their product value, improve competition and win
consumer trust along with instilling confidence in the quality
Made-in-Vietnam brand in the global marketplace.
Farmers
unwilling to sell sugarcane to refineries
Farmer in the
Mekong Delta are not willing to sell their sugarcane to local refineries due
to low buying prices and the different practices of sugarcane delivery.
The Hau Giang
Department of Agriculture and Rural Development estimated farmers in the
province have grown sugarcane on around 16,000 hectares in this year’s crop
and have already found mills for their products.
Can Tho Sugar
Company, which has agreed to consume the cane grown by farmers in
However, grower
Nguyen Van Dua in Phung Hiep District in
Nguyen The Tu, head
of the Agriculture and Rural Development division of Phung Hiep District in
Tran Van Tam, head
of the Agriculture and Rural Development division of My Tu District in
Tam said Long My
Phat will buy a kilogram of sugarcane at only VND700 at growers’ fields,
which is lower than their production cost.
Agriculture
authorities said farmers in Hau Giang, Soc Trang and other provinces in the
Mekong Delta start to harvest their sugarcane of the 2014-2015 crop in the
middle of September this year.
Statistics of the
Vietnam Sugar Association showed farmers yielded 1.58 million tons of
sugarcane in the 2013-2014 crop from more than 289,000 hectares.
Commercial
banks offer e-tax service
By the end of this
year, account holders at five commercial banks in 18 cities and provinces
across
Tax offices will
forward online tax declarations that they receive to banks, which will
transfer money from taxpayers' accounts to the State budget, said Pham Quang
Toan, head of the department's Information Technology division.
A pilot run of the
online tax payment facility for taxpayers in Ha Noi, Bac Ninh and Vinh Phuc
with accounts at the Joint Stock Commercial Bank for Investment and
Development of Viet Nam (BIDV) has already been carried out, he said.
So far, 250
enterprises have paid their taxes online.
The number of
enterprises using e-tax declarations has increased sharply in
The service will
first be available to 5,000 taxpayers in areas including Quang Ninh, Hai
Phong and Nam Dinh in the north, Nghe An, Quang Binh and Da Nang in the
centre and Binh Duong, Dong Nai and HCM City in the south.
Aimed at both
enterprises and individuals, it will later be expanded to all 63 cities and
provinces in the country, according to Bui Van Nam, general director of the
taxation department.
Vice General
Director of Vietinbank Nguyen Van Du said the bank and the taxation
department were working together on preparations, holding training courses
for bank staff and tax officers and ensuring that the banks' accounting
systems were compatible with the payment system of the taxation department.
Consumption
of goods, services up
The General
Statistics Office (GSO) yesterday reported that the total retail sale of
goods and services in the first seven months achieved a year-on-year increase
of 11.4 per cent to US$78.8 billion.
Excluding
inflation, the growth was 6.15 per cent since early this year against the
growth rate at 5.1 per cent in the first quarter, 5.5 per cent in the first
four months and 6 per cent in the first five months. It was 5.7 per cent in the
first half of the year.
During the first
seven months of this year, the total retail sale of goods accounted for 75
per cent of the total to reach $59.15 billion, 10.1 per cent higher than the
same period last year.
Sales of
accommodation and restaurant services had a year-on-year increase of 12.8 per
cent to $9.62 billion and other services gained $9.22 billion, 18.3 per cent
higher than same period last year.
GSO economic expert
Vu Manh Ha said, however, that the real purchasing power still grew slowly,
as the consumer price index increased only 1.62 per cent during the first
seven months – the lowest level since 2006.
The growth rate of
retail sales of goods and services each month showed a downward trend during
the first seven months, the office said. The rate increased 2.3 per cent in
February against January, 2 per cent in March against February and 1.4 per
cent in April against May. It rose 0.7 per cent in July against June.
However, the
domestic retail market shows great potential in the future, according to
property consulting and service provider CBRE Viet Nam.
Looking ahead, the
retail market could expect more activities and new entrants in
According to a
recent report by CBRE,
On the legal side,
While this support
is expected to serve as a good foundation for more international retailers
and goods to enter
New forum
to help local support industry
The HCM City Export
Processing and Industrial Zone Authority (HEPZA) last week signed a
cooperation agreement with the Japan External Trade Organisation (JETRO) to
establish the Viet Nam-Japan Support Industry Forum (VIETPANSIF).
Hirotaka Yasuzumi,
executive director of JETRO office in
These events will
also help support industry enterprises seek new customers and promote their
brands; to share experience in production and business; and to transfer
technologies and improve human resources quality.
According to a
survey conducted by JETRO, in 2012 local suppliers met 28 per cent of the
demand of Japanese-invested enterprises in
These figures,
however, were low compared to other regional countries such as
Therefore, the
VIETPANSIF will work to connect enterprises and make policy recommendations
related to the support industry, he said, adding that the forum's executive
board plans to organise an event every quarter of the year to this purpose.
According to HEPZA,
as of late 2013, there were 371 local support industry enterprises,
accounting for 47.4 per cent of local enterprises in export processing zones
and industrial parks in
These local support
industry enterprises turn out products to support manufacturers in the
engineering, textile and garment, and packaging industries.
Vu Van Hoa, head of
HEPZA, said the forum would help promote the development of the support
industry in
New Land
Law improves framework
Though the new Land
Law has not completely satisfied all involved parties, it ensures more
transparent and equitable treatment for land users, property consultancy CBRE
said in a report.
"It generally
helps to improve the legal framework as well as simplify complex and lengthy
procedures," Pham Ngoc Thien Thanh, a senior CBRE analyst, explained.
"Some notable
changes address issues of landed property and land recovery – an origin of
dispute in the last decade, including land ownership, land recovery, land use
rights, and land price."
The new law,
ratified last November and coming into force on July 1 of this year,
supersedes the 2003 Land Law and has a number of improvements that place
local and foreign investors on an equal footing in terms of land acquisition
and prices.
It was passed after
a consultation process that generated over six million responses from the
public.
Land ownership
still remains with the Vietnamese people and is represented and managed by
the State. However, foreign investors are now able to undertake transactions involving
land on an equal basis with domestic investors.
Under the new Law,
overseas Vietnamese and foreign-invested enterprises can be allotted land for
investment projects for the construction of houses for sale or for a
combination of sale and lease. Those who leased land with a full one-off
rental payment prior to the effective date of this law may continue using the
land with a levy.
"By enabling
land allocation to foreign investors, a more competitive business environment
is expected, which will help to ensure more efficient land usage," Thanh
said.
However, while
proposed amendments to the Housing Law will allow foreign investors,
particularly overseas Vietnamese, to buy and own houses, the Land Law does
not mention benefits for foreign individuals, she said.
Unlike the 2003
Land Law, which had very broad terms such as "economic development
purposes", the new law provides more detailed definitions in terms of
taking back agricultural lands allotted for commercial projects.
"It is
expected that this will help redistribute land to more efficient and
financially capable investors, especially for pending ‘golden' sites which
have been cleared where there has been no further construction
activity," Thanh said.
The law retains the
definition for late projects as investment projects inactive for 12
consecutive months, or where the land use schedule is 24 months behind the
schedule stated in the project documents.
"The
government will be more active in redressing unequal land distribution,"
Thanh said.
But the law states
that in the case of a breach developers will be given a 24-month period to
remedy the situation instead of 12 as was the case earlier.
"This will
narrow the scope of land recovery by the government, which will consequently
affect primary land supply," Thanh said.
After the 24-month
grace period land and assets will be withdrawn without any compensation
except for force majeure events while under the old law the State had to
compensate for investments made in the land, according to the report.
"What the
government plans to do with recovered projects or who they will be
transferred to still remains in doubt. Finding better investors who have a
strong financial position as well as proven track records and commitment may
not be an easy task," Thanh said.
According to a
study by the World Bank in 2011 tiled Compulsory Land Acquisition and
Voluntary land Conversion in
Problems reached a
peak between 2002 and 2004 prior to the passing of the 2003 Land Law.
The Ministry of
Natural Resources and Environment received more than 30,000 petitions related
to land disputes, complaints, and denouncements between 2003 and 2006. Most
of the issues raised were related to land administration procedures –
especially land access and the land rights of enterprises.
Problems with land
administration procedures eased for a while but have increased again since
2007.
According to the
Government Inspectorate of Viet Nam, there were 700,000 lawsuits and
complains related to land disputes in the last three years.
Seventy per cent of
the suits related to the value of land compensation, financial support and
resettlement, according to CBRE figures.
Vinatex to
up investment in domestic fashion industry
The Viet Nam
National Textile and Garment Group (Vinatex), has restructured its domestic
business strategy to further invest in domestic production by expanding sales
and distribution and developing the fashion industry.
The group's member
companies including Viet Tien Garment, Garment 10 and Nha Be Garment have
sought a firm foothold in the local market. By doing so, the group has set a
target of increasing total revenue in the local market by 30 per cent.
Tran Viet, head of
the marketing department of Vinatex, said the local garment market had good
potential as local consumption for clothing and fashion accessories ranked
after food and foodstuff.
According to
statistics by Vinatex, each Vietnamese consumer spends between VND150,000 and
VND500,000 (US$7-24) on clothes and fashion accessories every month
accounting for 18 per cent of his or her monthly consumption.
Le Tien Truong,
General Director of Vinatex, said although Vietnamese consumers have
tightened their spending on clothing and fashion accessories, the domestic
textile and garment sector still shows handsome growth. This means the local
garment makers have made efforts to expand sales distribution.
To reach their
targets, Vinatex has constantly invested in upgrading technology and
manufacturing the best and diversified products. In the first half of this
year, the group's revenue already reached VND911 trillion ($43.38 billion) or
an increase of 10 per cent over the same period last year.
Than Duc Viet,
Deputy General Director of Garment 10, said that his company always paid a
lot of attention to technology investments and cut production costs to supply
domestic products at competitive prices.
Expanding the
distribution network is one of the solutions to ensure Vinatex products get
closer to local consumers. The group now has more than 4,000 shopsin the
country. However, General Director Truong said domestic products have sought
a firm foothold in medium and high-end segments only, while locally-made
products are not capable of competing with cheap imported ones.
Phan Chi Dung,
Director of Light Industry in the Department of the Ministry of Industry and
Trade, said Vietnamese garment companies have to make more efforts to compete
with imported ones on home turf.
Dung said local
companies have to pay a lot of attention to developing the retail network in
the whole country.
Garment companies
need to work out policies to further invest in designing centres and applying
new technology to produce high quality and specialised products.
Le Tien Truong said
that to seek a firm foothold in the local market, garment companies have to
enhance their localisation ratio to 60 per cent by 2015. Vinatex has set a
target of boosting raw materials and establishing a comprehensive supply
chain to minimise production cost.
TTC Group
inks co-operation deals
Thanh Thanh Cong
(TTC) Group yesterday signed strategic agreements with Pepsico Viet
It will provide
services in the tourism and hotel sector to Russia-based Pegas Touristik,
which plans to send around 250,000 Russian tourists to
By tying up with
ED&F Man Asia Pte Ltd, TTC hopes to boost exports of ethanol products,
including fuel and industrial and food grade ethanol.
TTC Investment
Joint Stock Company, an arm of TTC Group, will supply sugar to Pepsico and
the two will also join hands to develop new sugar products and promote
consumption of each other's products.
TTC is active in
many sectors, including real estate, energy, import-export of farm produce,
and financial investment, and has 20 subsidiaries and affiliates.
Speaking at a
ceremony to mark the 35th anniversary of TTC Company and the third
anniversary of TTC Group yesterday, Dang Van Thanh, the latter's chairman,
said the group earned a revenue of more than VND6.5 trillion (US$305.7
million) in the first half of the year, a year-on-year increase of 14 per
cent.
The sugar and
sugarcane sector contributed 83 per cent of its revenues, he added.
Vinamilk,
VinGroup to pay millions in cash dividends
Dairy giant
Vinamilk (VNM) and property developer VinGroup (VIC) will spend trillions of
dong paying dividends during the next two months.
Vinamilk plans to
use more than VND1.66 trillion (US$79 million) to pay investors their first
dividend of 20 per cent.
August 15 is the
deadline for shareholders to register to participate in the payout, which
will be made on September 5.
At the annual
shareholders' meeting in April, the company pledged to pay no less than 50
per cent of total net profits this year in dividends.
The dairy producer
has set a net profit target of VND6 trillion ($284 million) for the whole
year, a decrease of 8.3 per cent year-on-year.
It plans to make
the second payout on July 5, 2015.
Recently,
Vinamilk's shareholders were upbeat on the news that the company planned a
stock split to raise charter capital. Vinamilk will issue nearly 166.7
million shares, equivalent to nearly VND1.67 trillion ($79 million), to pay
shareholders bonus shares at the rate of 20 per cent.
Apart from bonus
shares, shareholders will enjoy cash dividend rate of 48 per cent for the
business year of 2013.
Vinamilk's current
charter capital is almost VND8.34 trillion ($395 million).
Despite this news,
the company's shares declined 0.7 per cent yesterday to close the session at
VND135,000 ($6.4).
In addition to
Vinamilk, another member of the top 30 shares by market value and liquidity
on the HCM City Stock Exchange, VinGroup (VIC) is expected to pay its
shareholders a cash dividend at the rate of 21.49 per cent in August,
equivalent to nearly VND2 trillion ($95 million).
VinGroup's
accumulative profit by the end of 2013 reached VND7.728 trillion ($366
million). Shareholders must register to participate in the payout by August 8
and the payment will be made on August 20.
Last week, the group
began construction of the exclusive Vinhomes Tan Cang urban complex in
SBV looks
at boosting non-collateral loans
The State Bank of
The move was made
keeping in mind
In the document No
5342/NHNN-TTGSNH dated July 24, the central bank urged commercial banks to
employ solutions to help enterprises access more capital to finance
production.
SBV wants to see
banks actively approach and help companies that are hungry for capital,
support them in finalising loan applications, and expand lending for major
projects in priority sectors. Priority sectors are agricultural and rural
areas, exports, small- and medium-sized enterprises and auxilliary
industries.
The central bank
has also urged the Credit Information Centre (CIC), corporate rating agencies,
and internal creditworthiness bodies at credit institutions to build up a
comprehensive and consistent creditworthiness assessment system.
The SBV said that a
better creditworthiness rating system will simplify paperwork of loan
applications, and improve the capacity of lending enterprises without assets
as collaterals.
The efforts to
boost non-collateral loans leave bad debts in question.
The bad debt ratio
in Vietnamese commercial banks rose in the first half of the year to 4.84 per
cent in late June 2014 from 3.61 per cent in late 2013. The SBV reported last
week that total bad debts stood at VND240 trillion (US$11.3 billion).
Economists said
that the escalating ratio required banks to set up provision funds, which in
turn negatively impacted their ability to increase lending activities.
They also largely
attributed the increase in bad debts to slow lending growth in the banking
system, gloomy performance of corporate financing in the context of the slow
paced economic recovery and settlements by the central bank-run Viet Nam
Asset Management Company (VAMC) that are below expectations.
According to the Ha
Noi Statistics Office, total outstanding loans in July of Ha Noi-based credit
institutions are estimated to inch up 0.5 per cent to nearly VND927 trillion
($43.52 billion).
The city's credit
institutions are also estimated to mobilise a total VND1,205.6 trillion
($56.6 billion), up 2.8 per cent as compared to June, and up 14.4 per cent
year-on-year.
In the same
document, the central bank told commercial banks to restructure in-house
finance leasing companies pursuant to the master project toward 2015.
The island district
of Phu Quoc in t he southern province of Kien Giang has attracted 22 new investment
projects totalling 33.4 trillion VND (1.57 billion USD) so far this year,
bringing the total number of projects operating in the district to 194.
The figures were
reported at a conference on investment promotion for the island held by the
Steering Committee for the Southwestern Region on July 28 in the Mekong Delta
city of
In particular,
after the Prime Minister gave the green light to a
Chairman of Kien
Giang provincial People’s Committee Le Van Thi reported on the progress of
key projects in Phu Quoc, with more than 70 percent of the workload completed
on the 51.5 km South-North axis road worth almost 2.5 trillion VND. For the
99.5-km road running around the island, one third of the total investment of
3 trillion VND has been disbursed so far, while projects on supplying clean
water, building breakwater dykes and upgrading the An Thoi fishing port are
keeping with schedule.
According to deputy
head of the Steering Committee Nguyen Phong Quang, the committee and Kien
Giang authorities will continue investment promotion activities through
meetings with domestic and foreign investors and addressing difficulties
facing investors in deploying their projects in Phu Quoc.
Toy companies regroup to gain market share
Several Vietnamese
companies have made plans to produce more creative children's toys to gain a
larger share of the domestic market in the lead up to the Mid-Autumn
Festival, according to an article published in the English language news
website dtinews.vn on July 28.
For years, the
market for lanterns and toys for children has been dominated by Chinese
producers because of their diverse designs and low prices. Vietnamese people,
however, are increasingly concerned about the risks of buying Chinese
products, especially for children, after numerous reports of the toxic
chemicals used in the production of many Chinese toys.
Vietnamese toy
makers have been taking advantage of this consumer trend by redesigning many
of their products and sourcing their materials domestically.
“We’ve planned to
produce anywhere from 600,000 to 700,000 lanterns for the Mid-Autumn
Festival. That is twice what we made last year,” Huynh Van Khanh, Director of
Ky Thuat Moi Package Company was quoted as saying.
Khanh added that
the theme for this year's product line will be the
“In order to reduce
dependence on Chinese materials, we’ve invested in finding Vietnamese sources
for lantern parts. We could not find a local producer of music chips, so we
still have to order these from a Taiwanese partner. But we asked them to use
Vietnamese children's music that is copyrighted in the country,” he
emphasised.
Lam Thuy Nguyen
Hong, Director of Gia Long Fine Arts Company, which is locally famous for the
brand KIBU, said they are also using local materials in producing lanterns to
keep better quality control. They also plan on doubling their production this
year, as well as launching 40 new models of lanterns.
Hong said that,
even though there is a rising trend among Vietnamese consumers to buy
domestic products, there is still a high demand for low cost items with
diverse and creative designs.
The people of Phu
Binh, a traditional craft village that produces lanterns in
Chinese companies
are not unaware of the trend, and many Chinese producers have started to copy
Vietnamese product lines.
“We’ve registered
for copyrights for all of our products, so any fake products would be an
infringement on intellectual property rights. Last year, we sued one company,
who ended up have to pay hundreds of millions of VND in compensation,” Hong
added.
Second wave
of mergers and acquisitions begins: paper
Experts have
claimed a second wave of mergers and acquisitions (M&A) has begun in
Specifically, the
second wave of M&A in
Major M&A
transactions will take place in areas of banking, production of consumer
goods, real estate, information and technology, transport and logistics.
According to
editor-in-chief of the Vietnam Investment Review and Head of the organisation
board of the
GDP growth rate in
the first half of this year was 5.18 percent compared with the 4.9 percent
increase of the same period last year. Inflation rate was controlled at low
levels and the macro-economy has become more stable.
The state
management agencies are paying special attention to M&A activity. The
legal framework for this trend is becoming more complete as a wide range of
important laws relating to business and investment will be revised such as
the Investment Law, the Enterprise Law, the Housing Law, the Real Estate Law
and the Law on Securities.
Particularly,
according to Senior Managing Director of RECOF Corporation Masataka Yoshida,
the second wave of M&A was shaped by the accelerated equitisation of
state-owned enterprises (SOEs) policy of the Government.
Under the
equitisation project approved by the Prime Minister, the Government planned
to equitise 432 SOEs in the 2014-2015 period. The Vietnamese Government will
continue to check and add more SOEs that need equitised.
The large scale
SOEs like Vietnam Airlines, MobiFone and big corporations in the cement and
garment, textile industries expected to be equitised in the 2014-2018 period
will be important for the development of M&A transactions.
However, it will be
not easy to take advantage of this wave as
To successfully
take advantage of the second wave, the legal documents on M&A need to be
consistent. There should also be a management or monitoring agency on law
execution of M&A and is responsible for providing consistent
professionalism skills relating to M&A activities.
Source: VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
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Thứ Sáu, 1 tháng 8, 2014
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