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BUSINESS
IN BRIEF 12/10
Printing
industry calls for stronger policy support
The printing
inudstry has told the Government to improve policies governing the industry
so that it can reach its full potential.
They raised their
voice at a workshop held yesterday by Viet Nam Chamber of Commerce and
Industry (VCCI) and Viet Nam Printing Association (Vinaprint).
The chairman of
Vinaprint, Nguyen Van Dong, said the Government should remove import permits
and simplify business licensing procedures to help printers.
Dong proposed that
the Ministry of Information and Communications, instead of the Ministry of
Science and Technology, regulate terms for the use of imported machinery and
equipment.
He said this meant
printing companies would have to get approval from the information ministry
to import second-hand machines and devices, Dong said.
The head of
He suggested
companies should be owned and represented by Vietnamese individuals or
organisations.
Another requirement
was at least a member of the board of directors was specialised in the
printing profession, Liem added.
The chairman of HCM
City Printing Association, Le Van Tron, said that many post-printing
operations, including cutting, folding, assembling and binding, were done in
private homes and were now managed by the authority.
This created a
problem for those doing the work because householders were required to
perform administrative procedures once carried out by printing companies.
Participants also
showed concern about a policy that prevents domestic printing companies from
co-operating with each other in processing end products.
The regulation was considered
to limit companies' power in competing with foreign players.
PetroVietnam
surpasses goal for 9-month revenue
Viet Nam National
Oil and Gas Group (PetroVietnam) yesterday reported its revenue hit VND290.5
trillion (US$13.8 billion) in the first nine months of this year, a 10 per
cent rise over the group's revenue target for the period.
Net profit reached
VND36.5 trillion ($1.73 billion), a 31-per-cent rise over its nine-month
profit target.
PetroVietnam's
chairman Nguyen Xuan Son said total revenue for the whole group, including
affiliates and subsidiaries, reached VND560.1 trillion ($26.5 billion),
surpassing the quarterly target by 19.5 per cent and equivalent to 84 per
cent of the group's yearly goal.
In the first nine
months, PetroVietnam's contribution to the State budget also exceeded the
target by 24 per cent. A total of VND125.5 trillion (nearly $6 billion) was
handed over to the State budget, equivalent to 89 per cent of the goal set
for the whole year.
The company's total
production output reached 20.34 million tonnes of oil equivalent (TOE), 8.7
per cent higher than the quarterly target. Of this, crude oil comprised 12.71
million tonnes, an 8.8-per-cent rise over the target; and gas reached 7.64
billion cubic metres, an increase of 8.6 per cent over the target.
Production of
electricity, fertiliser and petroleum was also above target - by between 5
per cent and 22 per cent.
Electricity
production reached 11.92 billion kWh in the first nine months, up 9.4 per
cent over the target. Fertiliser output reached 1.23 million tonnes and
petroleum production hit 4.06 million tonnes, up 5.2 per cent and 22.6 per
cent, respectively, over the target set for the third quarter.
It is expected that
PetroVietnam will achieve its financial targets by late October or early
November. These include its contribution to the State budget, which is likely
to reach VND167 trillion ($7.9 billion), up 19 per cent over the yearly
target.
According to Le
Minh Hong, deputy general director of PetroVietnam, the group will focus on
implementation of the group's restructuring scheme in the next three months.
It will speed up
equitisation of its units while divesting capital from non-core businesses,
as well as enhance the competitiveness of companies in the group.
In addition, to
accomplish its development strategy, PetroVietnam will closely monitor
activities of exploration, exploitation and development of oil and gas fields
in the
Local firms
face FTA challenges
Vietnamese
enterprises are preparing for further integration as the country is close to
signing many free-trade agreements (FTAs), which will bring not only
opportunities but also challenges.
According to Pham
Xuan Trinh, general director of the Phong Phu Corporation which operates in
the garment and textile sector, foreign firms are pouring investments into
this sector to take advantage of the benefits that the Trans-Pacific
Partnership Agreement will bring.
Domestic producers,
as a result, will face increased competition from international firms that
have the advantages of capital and technology.
Van Duc Muoi,
general director of Vissan, said food products must meet the requirements of
displaying the place of origin, meeting hygiene and safety standards and
having competitive prices.
Companies need to
hasten their restructuring and plan a clear development strategy, according
to experts from the Viet Nam Chamber of Commerce and Industry.
Enterprises said
that the government should provide related information in advance to help
them prepare well for the integration, or else they will not be able to
perform well.
Tran Do Lien,
deputy president of
Vietnamese
enterprises might fail to grasp the opportunities without careful
preparation, he warned.
Le Thi Thu Lai,
director of a handicraft company, said that the government should improve the
legal system to ensure consistency and transparency, and also improve the
business climate.
Vo Tri Thanh,
deputy director of the Central Institute for Economic Management, in an
interview with Tin Tuc newspaper said that companies themselves must innovate
to adapt to integration, while the government should have policies to support
vulnerable industries.
The country is in
the process of negotiating important FTAs, including the Trans-Pacific
Partnership and the Viet Nam-EU FTA.
Belgian
sweets maker opens research centre
Belgian-owned
Puratos Grand-Place Vietnam, which specialises in cakes, pastries, chocolate,
and cocoa, yesterday opened an innovation and distribution centre in
Spread over
6,000sq.m at the Vietnam-Singapore Park 1, the centre will research into
chocolate and bakery and patisserie products and act as a logistics centre
for
It is also a
"fantastic state of the art tool" for training customers in using a
wide range of products that the company manufactures in
PGPV currently buys
around 1,000 tonnes of cocoa beans a year in
SMEs key to Ha Noi's success
Sixty years after
the capital was liberated from the occupying French troops, the city had
become a central force in the national economy thanks to small and
medium-sized enterprises, heard a workshop in Ha Noi yesterday.
Speakers said the
city's industrial enterprises had focused on the high-tech sector, which
formed the backbone of sustainable economic development. Moreover, the city
had shifted in recent years to prioritising high-value industries, with the
goal of becoming a leading research, design and manufacturing hub. Therefore,
enterprises had innovated equipment, technology and human resources, creating
more competitive products and increasing export turnover.
Despite
difficulties in the 2011-13 period and the earlier financial crisis and
recession in the 2006-10 period, which brought decreasing interest rates,
high input costs and high inventories, the city's average growth rate of 15.8
per cent demonstrated that the efforts of small- and medium-sized enterprises
had been worthwhile, they said.
In the past 60
years, the city had seen businesses contribute hundreds of billions of dong
in taxes to the national budget, as well as creating jobs, speakers said. The
city had also introduced policies to create opportunities for the
establishment and development of enterprises which related to financial support,
production space, market expansion, public services and tax reduction.
The workshop was
co-organised by the Ha Noi Small- and Medium-Sized Enterprises Association
(Hasmea) and the Ha Noi People's Committee.
Ministry
backs State funding for Vung Ang EZ
The Ministry of
Planning and Investment (MPI) has agreed to support the Ha Tinh provincial
authorities' proposal for more State funding for infrastructure projects in
the Vung Ang Economic Zone.
After a recent
meeting with the authorities, the ministry said it would seek Government
approval for the release of the remaining VND219 billion (US$10.4 million) of
the VND819-billion ($39-million) State budget for the projects in the central
province's economic zone.
However, Minister
of Planning and Investment Bui Quang Vinh asked Ha Tinh to provide the MPI
with information regarding the distribution of VND600 billion ($28.6 million)
in State funds earlier released to the zone, as well as the plan for the use
of the remaining VND219 billion in the zone.
He also noted that
the MPI has so far asked the Government to use the State budget for the
construction of a housing project for workers at the zone. After getting
Government approval, the ministry will continuously fund the project in 2015
and in the coming years.
The ministry will
also seek Government support for Ha Tinh province's land clearance and
housing resettlement for residents affected by the steel factory and the Son
Duong sea port projects which Formosa Heavy Industries Corporation has
funded.
To speed up the
pace of implementation of important projects during this year's flood season,
the MPI also proposed that the Government advance VND800 billion ($37.55
million) on the recommendation of Ha Tinh authorities.
Vinh has also sent
a proposal for the Government to support the sustainable socio-economic
development of communes affected by the projects.
The 22,000-hectare
Vung Ang Economic Zone was established in Ha Tinh Province's Ky Anh District
in 2006 and is considered as one of the country's five key coastal economic
zones.
A total of 226
enterprises were granted business and investment licenses in the zone.
Roughly 12,500 labourers work in the area, and the figure is forecast to
reach 67,000 in 2015.
Binh Duong electronics exports surge
The southern
Local businesses
produced 1.2 million electronics units during the period, according to
director of the provincial Department of Industry and Trade Vo Van Cu. Many
of these products posted high export growth such as phones and spare parts
(41 percent) and computers and others (4-10 per cent).
Electronics
products surpassed garments and wood products to lead Binh Duong's key export
items, he said, adding that the province had encouraged investment in
technology projects, especially those producing computers, phones and spare
parts.
Binh Duong's
three-quarter export turnover surpassed $11 billion, up 14.5 per cent
year-on-year.
VN Tax
Consultants, CPA Australia ink co-op pact
CPA Australia and
the Viet Nam Tax Consultants' Association signed a co-operation agreement
yesterday that aims to help the professional bodies work more closely
together.
"It will
further strengthen the accounting profession and tax agents in
CPA Australia has
over 500 members in
KBC aims to
clear all debts
Property developer
Kinh Bac (KBC) plans to sell 120 million shares at a minimum price of
VND15,000 (US$0.7) each and convertible bonds worth VND1.2 trillion ($56.6
million).
The company said it
expected to earn at least VND3 trillion ($141.5 million) from the plan to pay
all of its debts and invest in industrial zones.
MoF to
create 26 investment funds
A total of 26
securities investment funds have been established since August, according to
the Ministry of Finance (MoF).
The figure includes
15 open-ended funds, an exchange-traded fund, two close-ended funds and eight
funds established as partnerships.
The MoF said more
funds would be set up in the future as it continued the restructuring of fund
management and securities companies, tightened their capital adequacy ratios,
governed their investment activities and handled their links to commercial
banks.
FLC Group
meets 85% of target
FLC Group earned
about VND300 billion (US$14.2 million) in profits in the first nine months of
2014, thereby meeting 85 per cent of its annual target.
The company also
earned five times more than in the same period last year. In the third
quarter alone, the group achieved a profit of VND130 billion ($6.2 million).
Doan Van Phuong,
FLC general director, said the company promoted all of its business
activities during the period, especially significant revenue from its mergers
and acquisitions this year.The company expects a surge in revenue in the last
quarter, when it will be offering several property projects for sale.
FLC has launched
several large-scale projects, including Sam Son Golf Link and Resort, FLC
Complex 36 Pham Hung, FLC Garden City and the terrace housing project in
central
It was chosen as
investor of the VND7-trillion administrative centre in southern
Firms make
top brokerages list
Two companies
managed to make it to the list of top 10 brokerages in terms of stock market
share on the HCM City Stock Exchange for the third quarter of 2014.
Maybank Kim Eng
Securities and Saigon-Ha Noi Securities (SHS) replaced Vietcombank Securities
and BIDV Securities on the list, which Saigon Securities Inc. (SSI) topped.
HCM City Securities (HCM) ranked second and VietCapital Securities ranked
third.
The top 10
brokerages accounted for 62 per cent of the southern market. Meanwhile, only
four companies have so far joined the country's bond market. They are Bao
Viet Securities (BVS) at 46.8 per cent, VP Bank Securities at 26.6 per cent,
Vietcombank Securities at 26.5 per cent and BIDV Securities at 0.1 per cent.
Advanced
technology as new focal point in Vietnam-Russia cooperation
He reported that
Russian consumers
are particularly interested in seafood, vegetables, fruit, and canned goods.
In order to reach 7
billion USD in bilateral trade by 2015, both countries need to accelerate the
establishment of a free trade zone between
This would benefit
socio-economic development in all States involved and open up new
opportunities for business communities.
As of September,
Vice Chairwoman of
the municipal People’s Committee Nguyen Thi Hong considered Russia a key
market for the city in a number of areas, such as trade, investment and
tourism.
With the hope of
making inroads into
Ministry of
Transport accelerates equitisation process
The Ministry of
Transport approved the equitisation value of 17 enterprises and equitisation
plans for six enterprises during the first nine months of this year, heard a
press conference in
The ministry
reported that it also conducted value assessments for 10 domestic waterway
management enterprises and the Vietnam Salvage Company.
Additionally, seven
subsidiaries of the Vietnam Railway and the Vietnam National Shipping Lines
(Vinalines) were given the nod.
A proposal to
equitise the Vietnam Expressway Corporation (VEC) in 2016 is currently under
consideration, said Deputy Minister Nguyen Hong Truong.
During the reviewed
period, as many as 23 enterprises under six corporations withdrew State
capital from non-core business activities, raising 357.5 billion VND (17
million USD) for the ministry.
The ministry
instructed other corporations, including the Civil Engineering Construction
Corporations 1 and 4 (Cienco 1 and 4), Vinacomin Waterway Transport JSC and
Transport Engineering Design Inc. (TEDI) to implement their State capital
divestment.
It also urged the
Southern Waterborne Transport Corporation to transfer its State capital
ownership right to the State Capital Investment Company (SCIC).-
Maintenance
centre for transport system in mines opens in Quang Ninh
Vinacomin Motor
Industry Joint Stock Company (VMIC), a subsidiary of the Vietnam National
Coal and Mineral Industries Group (Vinacomin), officially opened a centre for
producing and maintaining monorail conveyor systems in mines on October 7.
The centre was set
up as a result of the cooperation between VMIC and several Czech enterprises
including Perrit and EIMM.
VMIC recently also
put into operation a monorail system built under a contract it signed late
last year with Perrit company, which has a capacity of carrying 150 workers
and features an early warning system for toxic heavy metal particles.
According to Nguyen Van Son, Deputy Director of Ha Lam Coal JSC, the monorail
system is an effective and safe means to move workers and equipment in mines.
BIDV
announces profits of 200 million USD
The Joint Stock
Commercial Bank for Investment and Development Vietnam (BIDV) generated
profits of 4.26 trillion VND (200 million USD) by the end of September,
making it one of the top 10 contributors to the national economy.
The bank’s total
loans reached 419 trillion VND (19.68 billion USD) during the first nine
months, up by 8.1 percent compared to the same period last year, whilst bad
debt only accounted for 2 percent of its total loans.
In addition,
capital mobilisation reached nearly 468 trillion VND (21.98 billion USD)
during the period.
With over 18,000
employees, and 127 branches and more than 600 transaction offices in 63
provinces and cities nationwide, BIDV is now one of the country’s leading
financial institutions. The lender currently holds assets of more than 600
trillion VND (28.18 billion USD) with an average annual credit growth of 18
percent from 2011-2014, said Phan Duc Tu, General Director of BIDV.
Regarding
international cooperation, Tran Bac Ha, BIDV Chairman and President of the
Association of Vietnamese Investors in Laos (AVIL), stated that BIDV and the Laos-Vietnam
Bank (LVB), a joint venture between BIDV and a Lao bank, funded 23 projects
in Laos so far, with a combined investment of approximately 740 million USD
in the fields of infrastructure development, rubber plantations, hydropower
and mining.
BIDV has also been
involved in social welfare activities in the Lao community, donating nearly
10 million USD to socio-economic programmes. These efforts have helped
tighten the friendship and solidarity between the people of
Textile,
garment exports exceed targets
During the first
three quarters of 2014, the sector generated nearly 18 billion USD in export
revenue, a year-on-year increase of 19 percent, and imported 11 billion USD
worth of materials.
Vinatex alone enjoyed
a 19 percent increase in its export earnings compared to the same period last
year, accounting for 2.36 billion USD.
Truong said the
sector’s exports to traditional markets increased significantly such as the
Regarding import,
Truong added that
Electricity
consumption declined by 2 billion kWh over the past nine months, accounting
for 2.19 percent of commercial electricity output, Electricity of Vietnam
(EVN) reported.
This reduction is
attributable to EVN's cooperation with the media to increase awareness of
electricity conservation.
Power companies
launched a number of campaigns and programmes, such as the Power Saving Family,
Power Saving Streets, and Power Saving Schools to encourage households,
enterprises and agencies to use energy sparingly and efficiently.
Numerous
conferences and discussion rounds were organised at schools and businesses to
explore power saving solutions.
Additionally, EVN’s
power saving programme for the 2014-2015 period included replacing
incandescent bulbs with compact alternatives, and jointly organising
electricity saving campaigns with the Ho Chi Minh Communist Youth Union.
EVN’s Southern
Power Corporation plans to pilot the ESCO model, installing solar water
heater systems for its largest customers towards the end of 2014.
From January to
September, EVN’s Southern Power Corporation and Ho Chi Minh City Power
Corporation (EVN HCMC) took the lead in saving electricity, with the decline
in consumption accounting for more than 2.5 percent of their commercial
electricity output.-
Dong Nai’s
coffee exports fetch over 420 mln USD
The southern
According to the
provincial Department of Industry and Trade, the province’s coffee export
turnover is expected to reach over 80 million USD in the last quarter of
2014, bringing the total yearly figure to more than 500 million USD.
Le Van Danh,
Director of the department, said this year, coffee is among the province’s
exports with sharp rises in both volume and value in comparison with the
previous years.
To boost
sustainable coffee development, the provincial People’s Committee has
assigned a local firm to build a specialised cultivation region with a view
to increasing the locality’s coffee growing area to 22,000 ha, he said.
The model is
expected to draw the participation of more businesses which will form a
linkage chain in coffee production.-
Conference
focuses on establishing seafood production chains
Creating effective
seafood production chains was the main topic of a conference in
The event was
jointly organised by the
Speaking at the
conference, Jeff Sedacca from the US’ National Fish and Seafood (NFS)
emphasised the need to pay more attention to developing small-scale farms
since they produce a large proportion of total shrimp output.
NFS has developed a
chain model for sustainable shrimp breeding based on close linkages between
farmers, processors, investors and distributors, he said, adding that the
organisation has also devised a broader network, including many components of
the supply chain.
Such a chain will
pave the way for farmers to improve their livelihoods and increase incomes,
he stated.
However, James
Baros, the NFS coordinator for aquaculture certification, noted that it is
hard for small farms to obtain certification as they often fail to meet
international standards.
When cooperating
with small producers, the NFS confirmed they would meet global standards and
their products could be sold worldwide, he added.
According to VASEP
Vice President Nguyen Huu Dung,
Once the NFS
project is implemented in
Statistics from the
Ministry of Agriculture and Rural Development showed that the country earned
4.95 billion USD from seafood exports during the first eight months of this
year, up by 25.4 percent compared to the same period in 2013.
Shrimp exports
alone accounted for 2 billion USD during the first seven months of 2014.
VASEP estimates
seafood exports will reach about 7 billion in 2014, up by 4.5 percent compare
to last year.
Dak Nong
ideal for hi-tech agriculture
The Central
Highlands
Dak Nong enjoys a
favourable geographic position allowing easy trade with neighbouring Dak Lak
and Lam Dong provinces, which have fairly developed hi-tech agriculture, and
The province has
vast agricultural land and advantageous natural and socio-economic conditions
which favour the application of hi-tech agricultural production.
Between 2005 and
2010, the province’s agricultural production value grew by an average 7.5 per
cent per year. By 2012 the sector’s total productivity surpassed VND5
trillion ($238 million), more than half the province’s GDP.
Agriculture
continued at a reasonable growth pace in 2012-2013.
Several major crops
have seen exceptional growth in terms of production output in the recent
time. Coffee rose from an average 1.5 tonnes per hectare to 2.3 tonnes per
hectare in 2013. Corn increased from five tonnes/ha to seven tonnes/ha, and
rice from 4-5 tonnes/ha to 5.8-6 tonnes/ha.
Production value
per hectare of cultivated land nearly quadrupled from VND15.9 million ($757)
per year to VND60 million ($2,857) per year in 2013.
Dak Nong province
is looking to develop a comprehensive agricultural system geared towards
modernity and sustainability with a high level of competitiveness rooted in
hi-tech commodity-based production, as well as to ensure food security and
environmental sanitation standards while keeping abreast of adapting to
climate change conditions.
Agricultural
development is closely linked to industry, services and urban development.
The province has
also focused on continuing to improve the lives of people, particularly those
in rural or remote areas and ethnic minorities. Other goals are to improve the
cultural background and production of farmers, implement national standards
of the new countryside model, build a strong socio-economic infrastructure,
and further empower the political system to support national defense and
security, social order and follow environmental standards.
Dak Nong’s
agricultural sector has taken the initiative in selecting suitable crops and
livestock for development in specialised areas to meet growing market
demands.
Notably, diverse
cultivation models in different areas in the province have proven very
effective, such as passion fruit production in Dak R’Lap, Tuy Duc, Dak Song,
and Dak Glong districts, seedless lemon production in Dak R’Lap and Tuy Duc
districts, safe veggie and quality flowers in Gia Nghia town, Dak Mil, Cu Jut,
and Krong No districts, and Japanese sweet potato production in Tuy Duc and
Dak Song districts.
The agricultural
sector also successfully came up with the model of growing cocoa in cashew
gardens in Dak R’Lap district, planting palm oil trees in Dak Glong district,
and farming green asparagus in Tuy Duc district and citrus fruits in Gia
Nghia town, Dak Mil and Dak Glong.
Efforts were also
made to ensure sustainable development of cocoa, pepper and coffee production
following the 4C UTZ certified process.
At present, Dak
Nong is planning a 120ha hi-tech agricultural zone to develop demonstration
models, implement scientific research projects and attract scientists and
businesses to invest and transfer the latest science and technology
achievements to support the province’s development ambitions.
Hi-tech
agricultural areas have been established in diverse locations throughout the
province and due attention has been paid to spur agricultural production
following Good Agricultural Practice (GAP) standards and the application of
models for pest prevention to ensure high crop output but also environmental
protection.
The farm model has
become increasingly popular in respect to seafood and livestock breeding. The
planning of aquaculture and livestock breeding areas is closely linked to
protecting the environment and bio-safety.
Diverse capital
sources have been tapped to promote livestock breeding and seafood
development, particularly the implementation of science and technology
services in these areas.
Seafood and animal
breeding centres were established in a number of districts and local cattle
herds continue to be improved with quality crossbred Brahman cows in
different locations throughout the province.
To develop
agricultural production, apart from state backing and farmers’ efforts,
support from businesses is of great importance. Therefore in the coming years
Dak Nong will further call on businesses to engage in building seed and
animal breeding centres, seafood breeding centres, and dairy farms and processing
units.
The province has
also called on investment into establishing slaughter houses that use cutting
edge equipment and building agricultural processing units through offering
attractive land and tax incentive policies.
Ascott's
fifth property opened in Ho Chi Minh City
CapitaLand’s
wholly-owned serviced residence business unit, The Ascott Limited (Ascott),
has opened its fifth property in
The new Diamond
Island Luxury Residences is located in District 2, which is earmarked to
become
According to Mark
Chan, Ascott’s country general manager for
The main
differences between corporate lease and service residences are corporate
lease units comes either fully furnished or unfurnished, as some tenants may
want to bring in their own furniture, and there are no or very limited
housekeeping services provided.
Nevertheless, both
serviced residences and corporate lease apartments offer dwellers the option
of sharing spacious apartment with family or friends, ample cooking
facilities, whilst having the privacy of individual bedrooms.
With the opening of
Diamond Island Luxury Residences, Ascott will provide a wider range of
accommodation options to cater to the different lifestyle needs of its
customers.
Coupled with
Ascott’s award-winning hospitality, the property will certainly cater well to
high net-worth local residents, expatriates and business travellers looking
for quality accommodation in
Ascott currently
has over 1,800 apartment units in 12 properties across four cities in the
country –
Credit
growth inches nearly half of year target
Credit growth in
the banking system approximated 7 percent by the end of September, half of
this year target of 12-14 percent.
Several banks have
been found in plod or even minus credit growth such as Eximbank, DongA Bank
and VietA Bank.
Since the third
quarter, the banks have offered a lot of credit packages with interest rates
of 6-7 percent and 10 percent per year. However their disbursement has been
inconsiderable.
Businesses have
failed to present good production and trading projects making it hard to
access the low interest loans, said deputy director of the State Bank of
Similar condition
is occurring to VND30 trillion credit package in the real estate market.
Credit institutions have pledged to loan VND1,248 billion in the program but
disbursed only VND600 billion so far.
The State Bank said
that the interest rate was not a barrier for businesses to access bank loans
because it has dropped and equaled to the rates in 2006 and earlier.
Deputy Head of the
HCMC National Assembly Delegation Tran Du Lich acknowledged that the banks
have much reduced the interest rate but it has been applied on short term not
medium and long term loans.
About 30-40 percent
businesses are well performing with good financial ability. Many of them are
in demand of capital to broaden production and trading. However it is not
easy because medium and long term interest rates now average above 10 percent
per year while inflation rate hovers around 5 percent.
The State Bank and
commercial banks should lower the interest rates of medium and long term
loans to facilitate businesses’ loan access, Mr. Lich said.
Young
entrepreneurs support 11 startup projects
Eleven startup
projects have been patronized by members of the HCMC Young Business
Association (YBA) under a business connection event organized last week by
the Business Startup Support Center (BSSC).
Under a project
held by BSSC and YBA, each trader will act as a mentor who instructs startups
to develop their business ideas, share experience and offer investment in
viable business ideas.
Nguyen Tuan Quynh,
chairman and CEO of Saigon Fuel Joint-stock Company (SFC), told the Daily he
highly appreciated the project for its practicality and usefulness towards
young novices.
“Though experienced
entrepreneurs try their best to offer practical guidance, some may be
inappropriate in specific circumstances. Therefore, startup companies should
absorb such guidance selectively and defend their choices,” Quynh advised.
Nguyen Duc Thanh,
member of a startup project processing wine and syrup from dragon fruit, said
he learned many useful things from his mentor. He knew how to give a
meaningful and legal name for the firm or make a difference for the
production after the first talk.
“Initially, I
thought it is not easy to approach businessmen. However, I’ve changed my mind
after participating in this event. I realized my production has greater
potential than I assessed thanks to the consultant,” said Do Huu Tan,
co-founder of the so-called transformation box project which seeks to turn
paper boxes after use into hangers, photo frames and so on.
Nguyen Thi Dieu
Hang of BSSC said her agency will maintain this annual supporting program for
startup projects and make it increasingly better. BSSC is always willing to
assist not only participants of the contest Startup Wheel 2014 but also any
startup team who wants to start their business career.
The final round of
startup ideas contest Startup Wheel 2014 took place on the same day with the
participation of six excellent teams in service and production sectors.
Motoway, an app for
motorbike riders, won the first prize of the competition in the service
sector with an award of VND20 million. The second and third positions
belonged to VeXeRe.com, an online ticket-booking system, and GreenS, a
restaurant providing salad from fresh ingredients and organic products. They
were rewarded VND10 million and VND5 million respectively.
The first, second
and third prizes in the production sector respectively belonged to Gong Vo
Handbook, transformation box and heat-insulating glass projects with similar
awards.
It was a pity that
BabyMe, one finalist of BSSC and winner of DemoDay 2014, could not attend the
competition. Do Huu Tai, co-founder of BabyMe, explained his team had to
devote time to arrange for a product launching ceremony in October, and to
prepare for the world startup contest.
The Startup Wheel
2014 starting from March was organized by BSSC for the second time,
attracting thousands of startup projects. Last year’s competition was for
students only. However, participants were extended to young people aged from
18 to 35 in HCMC this year.
1,900
condos find buyers in Jan-Sept
January-September
saw 1,900 condos being bought, reducing HCMC’s apartment inventory of 14,500
recorded at the end of 2012 to 7,500, according to the latest report of the
HCMC government.
Many investors have
proposed splitting their big-size apartments into smaller ones for sale to
low-income earners.
Statistics of the
Department of Construction showed the city has 21 commercial housing projects
whose owners want to divide their condos into smaller ones, with nine of them
having gained approval from municipal authorities.
Some firms in the
city which are struggling with high apartment inventories said it is tough to
ask the local government for approval to turn out smaller condo units for
easy sale.
However, HCMC Vice
Chairman Nguyen Huu Tin told a recent meeting on real estate that tiny
apartment units in the inner-city districts should be restricted because it
may put pressure on population, traffic and environment.
Tin said that while
it is important to help realty firms ride out difficulties, the sustainable
and long-term development of the city must be prioritized.
Despite the large
inventory, many new projects will still be executed in the city in the coming
time. As many as 92 projects are expected to be complete with roughly 57,300
units between 2015 and 2017, according to Savills
Le Hoang Chau,
chairman of the HCMC Real Estate Association (HoREA), however said those
figures may not be realized due to financial constraints faced by certain
realty firms.
The report also
indicated there are currently more than 1,400 housing projects covering a
total area of over 11,800 hectares with 426 complete and 201 underway. On the
other hand, there are up to 689 out of the total number suspended and 85
revoked or canceled.
Lawyers
want banned sectors added to Enterprise Law
Local lawyers have
proposed incorporating and clarifying the list of prohibited business sectors
and reasons in the amended Enterprise Law instead of putting it in a separate
decree.
Speaking at a
seminar held in
Duc said the banned
sectors planned in the new law are even vaguer than those in the current law
due to a lack of clarity on why the sectors are prohibited. It just leaves
regulating prohibited business sectors in the hands of the Government.
As a result, Duc
said barriers to doing business would reappear and intervention by
administering agencies like now would stay.
“After the recent
arrests of illicit gold trading floor operators, I looked into relevant laws
and found that there were no bans against gold trading floors. The central
bank has no right to prohibit such activities,” Duc said.
The current
regulations stipulate that enterprises are permitted to conduct any business
activity that is not prohibited by law. To follow the spirit, all regulations
should be clear.
However, even after
the Government and the National Assembly (NA) Standing Committee have
considered and reviewed the draft law, there have been different numbers of
prohibited sectors such as 14, 11 and 8, Duc said.
In addition,
according to Decree 102 guiding the implementation of some clauses of the
Enterprise Law, there are 14 sectors prohibited but it is wrong.
For instance, the
decree bans illegal gambling and gambling organizations but the rule is
unreasonable. In fact, anything illegal must be banned, not just gambling,
Duc explained.
The trading of all
kinds of firecrackers is banned given the decree but fireworks production
bases still exist in the country and the State still allows fireworks
displays.
Dau Anh Tuan, head
of the Legal Department at the Vietnam Chamber of Commerce and Industry
(VCCI), said there remain many illogical business conditions, which have
hindered enterprises from market entry and led to monopoly and unhealthy
competition.
According to a
report of the NA Standing Committee, there are 386 conditional sectors stated
in 391 legal documents that include laws, decrees, circulars and decisions
and 322 sectors which the State holds a monopolistic position.
However, it has
been found that local enterprises are subject to 398 licenses and much more
auxiliary licenses when they want to take part in conditional sectors.
NA says
stamp still needed in business transactions
The National
Assembly Standing Committee has suggested businesses continue putting the
seal on their documents instead of using signatures only.
The suggestion will
be put forth at the next NA sitting scheduled to begin at the end of this
month in
Enterprises in many
countries have no longer used stamp to determine the validity of documents in
their business operations. Signatures of parties, or even digital signatures,
are preferred in transactions.
A representative of
the International Finance Corporation (IFC), a member of the World Bank
Group, considered
However, the NA
committee is cautious about this suggestion. One member said: “Due to
business habits and technical conditions in the country, enterprises still
have to possess their own seals; legal representatives of businesses must
take full responsibility for using and preserving their seals in the coming
time.”
The replacement of
seals by signatures has been under consideration and applied when conditions
turn appropriate.
Under draft
amendments to the Enterprise Law, NA representatives proposed that businesses
be allowed to decide on the form and content of their seals.
Stamping will be
used in transactions in accordance with the law or by agreement of parties.
In transactions with international partners who do not use stamping, the
validity of documents will be defined by signatures of authorized representatives
of the parties concerned.
Businesses have to
register the seal specimen with business registration agencies so that the
form will be archived on the national database on business registrations. The
Government will issue specific regulations on seal registration and the
transfer of management information after the law takes effect.
Article 44 on
business seals in the draft of the amended law regulates the seal as the
property of a business, whose form and content are decided by the business
and registered with a business registration agency. The legal representative
of the company is responsible for managing the seal. The use of seal is
performed as prescribed by law or agreement between parties.
Source: VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
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Thứ Bảy, 11 tháng 10, 2014
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