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BUSINESS IN BRIEF 13/11
PM considers support for Lao Bao economic zone
Prime
Minister Nguyen Tan Dung and authorities from the central
On a
total area of 15,804ha, the LBZ lies at the starting point of the East-West
economic corridor, which is the shortest and preferred route for trade,
tourism and services between
As a
State-run organisation, the LBZ has enjoyed a number of governmental
preferential policies, but it is facing a number of obstacles.
The PM
also asked the province to devise a full plan for La Lay international
economic border zone and agreed in principle to offer assistance for
infrastructure development.
He asked
Quang Tri to capitalise on its strength, including the Road 9 linking with
Quang
Tri is one of the two poorest localities in the central region, with a
household poverty rate of 12%-13%, doubling the nation’s average.
Trade
shortfall with
In the
nine months leading up to October the nation’s trade deficit with
The
department reported the trade shortfall is now forecast to reach US$27
billion by the end of the year, which is down 32.5% when compared to its
previous projection of US$40 billion.
For the
nine-month period the nation’s imports from China reached US$31.27 billion,
comprising 29% of total imports into the country, while exports to China
grossed US$11.1 billion, 10% of the nation’s total exports.
Notably,
seven groups of imports from
Two
groups of exports to China exceeding US$1 billion were computers, electronic
products and spare parts (US$1.5 billion) and crude oil (US$1.05 billion).
Local
carriers busy for new int’t air routes
Vietnam
Airlines, Jetstar Pacific and VietJetAir are rolling up their sleeves for
plans to open new international services connecting
Low-cost
carrier Jetstar Pacific has just taken delivery of a Sharklet-equipped Airbus
A320 airplane to expand its international flight network.
Le Hong
Ha, general director of Jetstar Pacific, said the fuel-saving aircraft will
be used for international air routes.
The
low-cost carrier plans to begin its HCMC-Bangkok air route on December 10
before flying to the
The
carrier will receive two more planes by the Lunar New Year holiday to raise
its fleet to 10 aircraft to meet rising demand for air travel during the
biggest public holiday in
Another
no-frills carrier VietJetAir will commence its HCMC-Taipei service on
December 12 with five weekly flights on Mondays, Tuesdays, Wednesdays,
Fridays and Sundays.
Flights
will depart from HCMC at 2:30 p.m. and arrive in
The
second largest airline in
Vietnam
Airlines will operate flights between Phu Quoc and Siem Reap from December 18
with three flights per week. Earlier, the airline launched Phu Quoc-Singapore
service with two weekly flights.
The
national carrier took delivery of an A321-200 airplane in end-September to
bring the total number to 83 aircraft.
According
to the Civil Aviation Administration of Vietnam (CAAV),
The
number of passengers in the first half of this year is 16.3 million, up 13.2%
compared to the same period last year. Of which, local air carriers
transported a total of 11.8 million passengers in the period, rising 18% over
the January-June period last year.
US$700-million
waste complex to go up in Long An
Vietnam
Waste Solutions (VWS), fully owned by California Waste Solutions, Inc. (CWS),
a
Vietnamese-American
David Duong, chairman and CEO of CWS and founder of VWS, told the Daily that
the project would be developed on 1,760 hectares and have a designed capacity
of 40,000 tons a day.
The
facility will manage garbage and industrial waste discharged in cities and
provinces in the Southern Key Economic Region of Vietnam.
Called
Long An
Province has coordinated with HCMC to compensate for the households affected
by the project and allocate land for the investor to develop the project.
According
to VWS, the project will apply advanced technologies. Earlier, the company
said the facility would be able to manage and treat harmful, medical,
industrial and electronic waste as well as polluted sludge and wastewater.
VWS’s Da
Phuoc Integrated Waste Management Facility covers 128 hectares in HCMC’s Binh
Chanh District, and takes in around 3,000 tons of waste per day. Last month,
the HCMC government allowed VWS to raise the daily volume of waste to 10,000
tons.
In July,
CWS won a US$2.7-billion contract to manage waste collection and disposal for
VIB
posts pre-tax profit of VND234 billion
Vietnam
International Bank, or VIB, has reported pre-tax profit of VND234 billion in
the January-September period, 72% of the year’s target.
VIB said
in a statement that the profit result was what it projected earlier this
year.
The
bank’s total assets reached around VND76.2 trillion, including outstanding
loans of nearly VND36.9 trillion, up 5% against early this year.
In the
period, lending to foreign direct investment (FDI) firms increased 57% and
individuals 11%.
Currently,
VIB has 157 offices and branches. The lender has got approval from the State
Bank of Vietnam (SBV) to establish seven transaction offices nationwide.
VIB is
now implementing a VND2-trillion credit package with an interest rate of
0.68% per month for the first 30 months of lending. After that, the interest
rate will be equal to the interest rate for 13-month deposits plus a margin
of 4% a year.
Taking
advantage of WTO membership for national development
This
opened up a great opportunity for Vietnamese products and services to access
the WTO’s huge market of 160 member countries, accounting for 97% of global
GDP. Over the last 7 years
The WTO
says that although some things need to be adjusted, the last 7 years have
shown that
Tran
Quoc Khanh, Deputy Minister of Industry and Trade and Head of the
Government’s negotiation delegation on international trade, says that since
joining the WTO, Vietnam has abided by commitments to open its markets,
ensure transparency, fine tune its legal framework, and establish a level
play field for both domestic and foreign enterprises.
Over the
reviewed period,
WTO
membership has had an adverse effect on
The
Vietnamese government has devised export policies to help Vietnamese
enterprises improve their competitiveness internationally and minimize
adverse effects of WTO membership on sustainable economic growth.
EVN
fulfils yearly power generation plan
The
Electricity of Vietnam (EVN) said the group had fulfilled its 2014 power
generation two months ahead of schedule, with five turbines of three power
plants put into operation, adding a total 1,700 MW to the national grid.
In
October, the second turbine of the Song Bung 4 hydropower plant was connected
to the national grid while the Vinh Tan 2 thermoelectric power plant’s first
turbine operated stably with a maximum capacity of 623 MW.
T he
group arranged sufficient funding for the Vinh Tan 4 plant project and the
progress of other important projects was in line with schedule.
In the
first ten months of this year, EVN put 33 projects into operation and kicked
off work on 34 500-220kV transmission projects.
Remaining
turbines of the Song Bung 4 plant and the Ban Chat hydropower plant are
expected to become operational in November. Meanwhile, the expansion of the
Duyen Hai 3 power plant will also start this month.
In
addition, EVN has planned to operate 11 projects in November, including 500kV
Thanh My transformer, a 220kV transformer in Phu My Industrial Park 2, 220kV
Uyen Hung transformer and 220kV Song May-Uyen Hung transmission line, Vinh
Tan-Thap Cham transmission line, 220kV Thap Cham transformer, and Van
Tri-Chem 220kV transmission line.
The
group and its subsidiaries have also focused on ensuring power supplies for
the SAMSUNG factory in northern Bac Ninh province and Texhong Group in
northern Quang Ninh province.
During
the ten-month period, EVN’s total investment totalled over 91.7 trillion VND
(4.36 billion USD), of which 82 trillion VND was disbursed.
The
Mekong Delta region exported over 2.7 million tonnes of high quality rice,
accounting for 52 percent of total rice exports during the first ten months
of this year.
High
quality rice exports increased by 44 percent compared to the same period last
year, generating 2.32 billion USD since the beginning of 2014.
The
region has implemented a number of effective marketing plans with a focus on
quality and competitive prices. As a result, orders from the European Union,
North America, Asia and
The two
recent harvests had a total output of 24.3 million tonnes, with high quality
rice and fragrant rice accounting for over 70 percent.
Recently,
the region’s rice institute has selected new rice varieties with high yields
to supply farmers.
Additionally,
a number of enterprises have increased their rice cultivation areas to meet
export demands and contribute to improving the image of rice from the Mekong
Delta region and
Dubbed
as the country’s rice granary, the Mekong Delta region produces over 50
percent of the total food output, and provides 90 percent of the country’s
exported rice, 70 percent of exported fruits and 60 percent of exported
seafood.
Mekong
Delta localities have exported 1 billion USD worth of commodities since the
beginning of October, bringing the region’s annual export revenue to 9.2
billion USD so far, representing a year-on-year increase of 6.3 percent and
accounting for 85 percent of the annual target.
Rice and
seafood exports generated more than 5 billion USD in export revenue according
to the Steering Committee for the Southwestern Region.
Long An,
Ca Mau, An Giang, Dong Thap, and Tien Giang provinces and Can Tho city took
the lead in export earnings out of the region’s 13 localities.
Deputy
Head of the committee Nguyen Phong Quang said the region’s localities
actively stepped up trade promotion efforts this year by supporting
businesses in conducting market surveys and advertising products in Asian,
African, EU and North American markets.
They
also offered technical assistance in applying international standards in
quality management and financial support for trade, as well as enabling the
export of environmentally friendly products with high added values, he added.
The
localities also expanded the application of technology in harvesting,
processing and preserving rice and seafood, diversified the range of high-end
processed goods, and managed commodities more strictly in order to meet the
requirements of international markets, Quang noted.
Margin
lending reaches 806 million USD in 10 months
Margin
lending reached more than 17 trillion VND (805.7 million USD) in the first 10
months of 2014, an increase of about 13 percent over the nine-month figure.
Pham
Hong Son, Head of the State Securities Commission (SSC)'s Securities Business
Management Department, told local online VnEconomy that the figures were
based on reports that securities companies sent to the SSC.
This is
one of the few times the SSC has published margin lending figures. Previous
estimates were informal and often based on financial statements of securities
companies which have different margin lending data. The official publication
of this data is expected to help reduce the impact of inflated information on
the market.
Son said
the size of current margin lending was not risky for the market if compared
with the total capital of all securities companies, estimated to be about 36
trillion VND (1.7 billion USD).
He added
that financial leverage had grown by an average of 10 percent since July.
According
to the SSC's regulation, the lending margin of a securities company cannot
exceed 200 percent of its equity capital. Current margin loans accounted for
only 47.2 percent of their total equity.
However,
market insiders say this is the "facade" figure shown on companies'
financial statements, and the real number could be bigger. Margin lending can
also come from banks, where investors have collateral.
It is
estimated that the figure on current margin loans is only eight percent of
total lending by securities companies.
The
current margin size is not big, but according to some analysts, the fact that
margin loans have focused on several large-cap shares could still make it a
volatile factor in case securities companies make margin calls when the
market tumbles too deeply.
There
are nearly 700 stocks trading on the stock market, but the number of codes
eligible for margin lending is about 150. These stocks are also the darling
of foreign investors, thus erratic performance of these stocks will likely
make the market volatile.
Margin
trading is expected to increase towards the end of this year with the
forecast of a positive market outlook.
State
to sharpen agriculture focus
The
Government needs to make amends for its rather dismal performance to date in
facilitating investment in agriculture despite the sector's key importance in
the nation's growth, experts said at a conference on November 9.
The conference
brought leading economists and policy think-tanks together to discuss the
role of the State in agriculture restructuring, ways to involve enterprises
in the restructuring process and how to make investment structure or the
sector more effective.
Tran
Dinh Thien, Director of the Vietnam Institute of Economics, said that
agriculture restructuring needed to follow three main orientations.
The
first was development of products utilizing technology, economies of scale
and production zones. The second focus must be on establishing a production
chain that would render the agriculture sector "safe," he said
explaining that currently, the input chain was dominated by foreign
enterprises and domestic processing enterprises were still limited in their
scope of action.
The
third orientation, Thin said, was to ensure that enterprises are in the
vanguard of rural development and market development, ahead of other
stakeholders including the State, scientists and farmers.
Meanwhile,
Nguyen Tien Phong, a programme officer in poverty reduction and social
development with the United Nations Development Programme, said that
investment in agriculture had been decreasing of late, and it was important
that more resources are mobilised for agriculture and farmers.
"Agricultural
productivity in
He added
that it was necessary to enhance farmers' capacity so that they can organise
production to boost productivity and product quality.
He
stressed the role of the State in making this happen, noting that it was the
State that sets standards and regulations, and in a position to instruct
farmers on which products had good export potential.
"The
State has not well performed its role in managing the imbalance in
investments into agriculture," he said, "It has not played its role
well in setting standards, quality or food safety."
Phong
said the State should also support enterprises to invest in agriculture.
"The
role of the State in agriculture restructuring needs to be researched more
carefully and in more detail," he said.
Nguyen
Thi Lan Huong from the Food and Agriculture Organisation (FAO) said that to
define the role of the State in agriculture restructuring, relevant
authorities should review all policies and documents related to quality
management.
"In
the context of international integration, it is necessary to link small
agricultural households to the global supply chain and promote all advantages
of Vietnamese agriculture," she said.
"From
that, we can define the role of the State and the State's management to find
out which State services need to be extended, which can be prioritised, and
which can be conducted under public-private partnership (PPP)," she
said.
Minister
for Agriculture and Rural Development Cao Duc Phat stressed that the aim of
agriculture restructuring was not merely to develop a strong sector and
produce more products. Its bigger target was to raise the income and living
standards of farmers.
So the
first task is to change the awareness of and attitude towards the market,
boost the market to work effectively in all agricultural areas and to ensure
better State performance, he said.
The
conference was held by the
A lot of
foreign investors from
Japanese
enterprises worked with
Dong
Thap’s rice output is ranked third in the country. Local authorities have
planned to form 10,000 hectares cultivating rice in large scale fields and
prepared to welcome the South Korean enterprises.
A total
of 100 projects have been introduced to call for investors in agricultural
fields in the Mekong Delta.
From
1993 to 2014, the Official Development Assistance (ODA) fund totaled US$5.7
billion in the Mekong Delta, accounting for 8.2 percent of
Foreign
Direct Investment (FDI) in the delta has mainly concentrated on
manufacturing, processing and real estate. It is inconsiderable in agro, aqua
and forestry sector.
Shrimp
processing for exports at Minh Phu Company, Ca Mau Province (Photo: SGGP)
According
to the Ministry of Planning and Investment, the Mekong Delta had 903 valid
FDI projects with registered capital of US$11.8 billion as of September. The
number of projects accounts for nearly 5.3 percent and registered capital
occupies 4.9 percent of the country’s total.
Of them,
only 52 projects are in agro, aqua and forestry fields with the total
registered capital of US$242.5 million.
FDI
attraction has still met with a lot of difficulties in the Mekong Delta.
Experts proposed the delta to improve local traffic infrastructure and human
resource quality, shift economic growth modals, set up plans on material
areas in accordance with processing plants and map out capital and technology
assistance policies to businesses.
Will
With
eight oil refinery projects operating, under construction or proposed to be
built along Vietnam's coast, the question arises of whether the country could
become a world power in oil refinery if these facilities live up to
expectations.
Even
though the country now has only one such operating facility, located in the
central province of Quang Ngai, many other projects have been planned and
proposed across the country – from the northern to central, south-central,
and southern regions.
That
facility is Dung Quat Oil Refinery, whose capacity is 6.5 million tons a
year.
The said
eight plants have a total design capacity of 60 million tons of oil products
a year.
PetroVietnam,
the country’s oil and gas giant, is working with a joint-venture on the
construction of the Nghi Son Refinery in the north-central
It was
reported in 2006 that Hai Phong-based HAPACO Group was eyeing a refinery
project in the city’s Dinh Vu Industrial Zone.
On
September 9, the US$3.2 billion Vung Ro refinery project broke ground in
Earlier
this month, the Ministry of Industry and Trade called on the Prime Minister
to add the Nhon Hoi oil complex in Binh Dinh, to be developed by Thai energy
firm PTT Pcl, to the planned development of the country’s oil and gas sector
between 2015 and 2025.
The Nhon
Hoi project is designed to have a total capacity of up to 20 million tons of
products per year during its first phase, according to the industry and trade
ministry.
In the
southern region, PetroVietnam is carrying out an investment study on the 10
million ton a year Long Son refinery in the coastal
The Can
Tho refinery is expected to be developed by
While
there have been few updates on the refinery projects in Hai Phong, Can Tho or
Ba Ria-Vung Tau, the Nhon Hoi facility has grabbed the most media attention
as the trade ministry has been actively selling the plan to have the project
implemented.
But the
project has raised a few eyebrows among industry insiders and experts,
including oil and gas behemoth PetroVietnam, which said the $22 billion
facility would result in a supply surplus for the country, as the oil
projects planned for the 2015-2025 period are already enough to meet domestic
demand.
A
PetroVietnam official also told Tuoi Tre (Youth) newspaper that Nhon Hoi’s
proposed location is too close to the Vung Ro, Nam Van Phong, and Dung Quat
projects, which would thus affect the latter’s investment attraction.
The
trade ministry admitted in a document submitted to the Prime Minister that
the implementation of the Nhon Hoi refinery will cause difficulties for the
smaller facilities in the region.
But it
rejected claims that the Nhon Hoi project would affect the operations of
other facilities.
The
ministry said the Binh Dinh facility will not enjoy the incentives and
preferential treatments of the other operating and under-construction
projects.
Le Tuan
Phong, deputy head of the General Department of Energy under the Ministry of
Industry and Trade, said Nhon Hoi will not result in abundant supply for the
domestic market as its products are targeted for export.
The
Ministry of Planning and Investment has backed the proposal to add the Nhon
Hoi project to the oil and gas sector’s masterplan, according to documents
obtained by Tuoi Tre.
But the
ministry suggested that the trade ministry compile additional reports about
the project’s socio-economic effectiveness and the target markets for the
refinery’s products.
The
industry and trade ministry noted that being added to the sector’s plan is not
enough for such a huge project with as many risks as Nhon Hoi to be realized.
The
project’s implementation relies on many other factors, including capital
arrangement, the ministry said.
It also
proposed that the Prime Minister remove the Can Tho refinery from the oil and
gas sector’s plan, and extend the completion time of the Long Son facility
later than 2025.
PwC
study on investments in
PwC, a
leading professional services firm, today released the study, “New Vision for
Asia Pacific: Connectivity creating new platforms for growth,” which reflects
a rising confidence of CEOs in Asia Pacific about prospects for business in
the region.
Accordingly,
forty-six percent of executives in the region now say they are “very
confident” of growth in the next 12 months, up 10 points from 2012 and four
points from last year, despite slowing growth in China, the economic engine
for the region.
The
survey found that 67 per cent of executives plan to increase investment in
the APEC region over the next 12 months.
Their
plans are spread over each of the 21 APEC member economies, with
"PwC
According
to Gaskill, foreign direct investment has primarily been from Asian countries
such as
“In
addition, there has been an uptick in real estate investment after a long
period of relative inactivity with a number of funds investing significant
amounts into the country,” he added.
In the
PwC study, 57 per cent of respondents say they are either building or
expanding facilities in APEC economies in the next three to five years, in
which 15 per cent chose to spend their capital in
Besides,
38 per cent of respondents expect headcount in their organisations globally
to expand by at least 5 per cent a year over the next five years.
Supporting
this confidence is a vision of an Asia Pacific region that is more connected,
both physically and virtually, and an outlook for more balanced regional
growth.
For
example, nearly 60 per cent of executives say they are now more willing to
share insights and resources with business partners in order to speed product
development and gain market access. And more than 40 per cent say their
company will likely enter a business combination outside of their core
industry.
“Asia
Pacific today stands at a turning point as advancing technologies move beyond
national boundaries and create new demands and even new industries,” said
Dennis M. Nally, chairman of PricewaterhouseCoopers International Ltd.
“CEOs
see the need to be bold in breaking down the barriers to growth. They want to
finalise the Trans-Pacific Partnership, address intellectual property issues
and encourage regulatory harmony in the region,” he noted.
The
survey also found that data-driven changes are having an impact in the region
as 57 per cent of executives say they are more confident of their ability to
respond to changes in the marketplace, and half say they are more skilful at
forecasting demand.
“Businesses
are investing in a different Asia Pacific with rising numbers of urban
middle-income consumers demanding new, technologically advanced products and
services from business and governments. In its 25th year, APEC has an ongoing
and important role to play in helping to meet these demands and advancing
growth throughout the region,” said Nally.
Carried
out by PwC International Survey Unit, the APEC CEO Survey 2014 was conducted
between June and August 2014 covering 635 CEOs and industry leaders across 39
nations with operations in APEC economies.
AirAsia
launches year's biggest promotion
AirAsia
has kicked off its biggest promotion of the year, offering three million
seats at base fares of zero dong on flights from
It s
also offering zero dong tickets on flights from HCM City and Ha Noi to
Phuket, Chiang Mai, Krabi, Yangon, Penang, Macau, Sydney, Singapore and other
destinations, with transit in Kuala Lumpur or Bangkok. Booking for this
promotion ends on November 16 for travel from June 10 next year to January 17,
2016.
Binh
Dinh exports seen increasing by nearly 9%
The
central
The
province expects export revenue to reach $3.1 billion for the period between
2011 and 2015. The estimate is 111 per cent higher than the goal of the 18th
provincial party congress' resolution.
The
province exports wood products, garments and textiles, leather and footwear,
frozen seafood and construction materials.
Binh
Dinh fishermen reach toward Japanese market
Fishermen
in
The
equipment, which was developed in
Tran Van
Vinh, deputy director of the local Exploitation and Protection of Aquatic
Resources, said the fishing equipment was created by a Vietnamese research
team. Initial tests seemed to have positive results, but some further work
may be needed. If it works, it could reduce the investment needed to import
from
The
fishing boat refitting is part of a project aimed at improving the quality of
tuna caught in
After a
23-day fishing trip, the first pilot boat returned with 48 tuna with a
combined weight of over 2.5 tonnes. This boat's catch is expected to fetch
higher prices than those of boats with less advanced systems.
Tax
and customs authorities told to connect database
The tax
and customs authorities will have to coordinate with each other to facilitate
enterprises’ access to tax and customs database and shorten the length of
time for handling procedures, heard a meeting last week.
Responding
to a question about the tax and customs authorities keep asking enterprises
to submit the documents they have previously filed, Deputy Minister of
Finance Do Hoang Anh Tuan told the meeting on administrative procedures and
policies of tax and customs that the two bodies should not ask for what they
already have in their database. The tax authority can access the data bank
consisting of five million customs declarations to verify information about
enterprises, he added.
Nguyen
Thai Linh, director of Lien Son Computer Paper Co., asked why businesses have
to pay the cargo scanning fee while scanning machines are assets of the
State, which were bought with taxpayers’ money.
According
to Tuan, the fee was collected by port operators, which is not accepted, so
enterprises do not have to pay it. The General Department of Customs will ask
port operators to remove the fee.
In the
long run, the Ministry of Finance will divide enterprises into groups.
Enterprises which are not listed in the risk group are not required to have
their cargo tested during the customs clearance process and the customs
authority will focus on others.
Besides,
the tax and customs authorities will have to ensure handling complaints of
enterprises within the required time. A portal through which the tax and
customs authorities will deal with difficulties of enterprises will be set
up, according to Tuan.
Major
IT event set for December
The
tenth ASEAN CIO/CSO Summit and Awards will take place in HCMC on December 2,
featuring CIOs and CSOs in the future and new security risks.
The
information technology (IT) event will be organized by International Data
Group (IDG) and the CEO & CIO Club.
This
year’s conference will focus on the transition of the role of leadership into
that of partnership in the development of business, and on using technology
to manage data. Big Data and the importance of security and privacy in
technology transfer will be discussed at the conference also.
Speakers
will give updates about IT issues on November 10, such as integrating IT into
core business functions, establishing values via breakthroughs, and
maintaining investment in the IT sector and human resources for creating
breakthroughs.
The
awards ceremony for Southeast Asia Information Technology and Security
leaders, as well as
The
conference will take place from at Sheraton Hotel in District 1. Details can
be found at
http://www.cio.org.vn/ciocso2014/vi/tham-du/thong-tin-dang-ki-tham-du
WB
warns of excessive spending in provinces
There is
a high level of excessive spending in most cities and provinces as their
budget collections are always insufficient to make up for their spending,
according to a report released by the World Bank (WB).
The report
on fiscal decentralization in
The
efficiency of provincial spending on capital construction projects is low, according
to the report, and overspending often accounts for up to 50% of original
budgets while the safe proportion is 5% at most.
Cost
overruns in northern mountainous provinces reach 42% of original costs and
35% in the Central Highlands.
Spending
reports by local authorities are of low credibility, says the report,
attributing to executive authorities’ lack of discipline as seen through
their random changes of approved spending plans.
There
are several provisions in the State Budget Law allowing executive agencies to
take advantage of flexibility over budget appropriations including the use of
higher-than-expected revenues, unbudgeted revenues and carryovers.
Such
spending practices mar the transparency of budgets and the outcome of
spending.
This is
a matter which policymakers should attend to as
Cities
and provinces now make up a majority of the Government’s total spending and
their spending has steadily ballooned since the State Budget Law was passed
in 2002.
Ministry:
Milk prices decided by different factors
In
explaining why local milk prices have remained stubbornly high, the Ministry
of Finance’s Price Management Department said material milk cost alone cannot
decide prices of local dairy products as it is one of many factors that
constitute the manufacturing cost.
Nguyen
Anh Tuan, head of the department, said on the ministry’s website that despite
the fall in input dairy material costs on global markets, none of the
domestic dairy firms had registered to adjust down the prices of their
powdered milk products for children under six.
Tuan
explained that prices of dairy material from
Therefore,
prices of unprocessed and finished milk products of producers and importers
have been kept almost unchanged, thereby leaving no impact on the domestic
dairy market, Tuan said.
However,
he said the Finance Ministry has still requested processors to reduce cost
and tightly control input factors.
The
ministry also told local authorities to conduct regular checks and keep track
of price registrations and declarations of producers of dairy items for
children under six.
Provincial
finance departments and relevant agencies have been asked to review six
months of carrying out the Government’s price stabilization program for dairy
products for children under six.
The
ministry made clear that it would strictly deal with any infringements
related to dairy prices, including announcing them in the media.
SBIC
chosen as flagship firm for marine economic strategy
The
Ministry of Transport has announced Shipbuilding Industry Corp. (SBIC) will
act as a flagship firm to implement the country’s marine economic development
strategy in an action plan approved by the Prime Minister.
The
objective of the action plan is to turn shipbuilding into a spearhead
industry in the marine economic development strategy, said Deputy Minister of
Transport Nguyen Van Cong. The focus will be on manufacturing products
appropriate for
According
to the action plan, resources will concentrate on restructuring operational
shipyards, develop supporting industries for this industry as well as
consumption market and repairing services for domestic and exported vessels,
train a qualified and professional workforce, and improve research capacity.
In the
fourth quarter of this year, the Ministry of Transport will execute a scheme
to form industrial clusters in support of the shipbuilding sector, set up
major companies and establish a development fund to support the industry in
2015-2020. The ministry will look for potential investors to help realize the
targets.
As of
2020, the output value growth of the sector will be 5-10% a year. About
70-80% of the sector’s capacity will serve domestic needs and the rest for
export. The number of exported vessels is estimated at 1.67-2.16 million tons
of capacity per year.
Vietnam
National Shipbuilding Industry Group (Vinashin) was restructured into SBIC
that now accounts for 70% of shipbuilding capacity in
Dairy
firms told to spend less on advertising
The
finance ministry has asked dairy companies to reduce spending on advertising
and marketing to enable them to lower retail prices.
The move
comes amid a worldwide reduction in the prices of some imported dairy
materials.
In a
document to provincial finance departments reviewing the implementation of
the price stabilisation of dairy products for children under the age of six,
the ministry asked the departments to continue conducting spot checks on and
registration of retail prices, as well as the publishing of the names of
organisations and individuals selling the products.
All
price violations will be strictly punished. Companies and individuals
operating in the sector are required to report their wholesale and retail
prices under existing regulations, but the prices should be no higher than
registered maximum prices.
According
to the ministry's Decision 1079/QD-BTC dated May 20 on measures to stabilise
the prices of dairy products for children under the age of six and Document
6544/BTC-QLG on guidelines in the implementation of measures to stabilise the
prices of dairy products, companies and individuals trading in the sector
will have to publish their prices beginning November 30.
Nguyen
Anh Tuan, head of the ministry's price management department, said the
customs declaration of some companies that imported a huge quantity of dairy
products showed that the prices remained the same.
Tuan
added that from June to September, the prices of most imported dairy products
remained the same except for full cream milk powder which fell by 2.57 per
cent, skimmed milk powder which rose by 1.45 per cent, and whey powder which
rose by 19.52 per cent.
He noted
that none of the companies registered to reduce the prices of their dairy
products for children under the age of six in spite of the world price
decrease for such products.
In
reality, the prices of imported dairy materials have yet to be reduced and
therefore had no impact on domestic selling prices, he explained.
However,
the ministry has asked localities to conduct regular investigations on price
registration and publication to closely manage the businesses' input factors.
SMEs
urged to get ready for ASEAN EC
Vietnamese
enterprises, especially small- and medium-sized companies, have been
repeatedly warned to prepare for both the challenges and opportunities when
the ASEAN Economic Community is established next year.
During a
recent forum organised yesterday at HCM City University of Technology, local
and foreign experts have expressed concern about the preparation of
Vietnamese enterprises.
Le Dang
Doanh, a renowed economic expert, said the GDP of Viet Nam would increase 13 percent
within five years and the annual growth rate of the GDP would be two per cent
after AEC begins next year.
With
AEC, the market for Vietnamese enterprises will expand dramatically up to 600
million people, offering larger export markets for agricultural products both
in and outside ASEAN, especially products with low production costs.
Under
the AEC, input costs for production will be much lower for local enterprises.
At the
forum, AEC 2015: Opportunities and Challenges for Vietnamese Enterprises, Doanh
predicted that the flow of skilled Vietnamese workers to neighbouring
countries with higher wages could cause serious issues for local companies.
The
expert warned that
"Seventy-three
per cent of Vietnamese enterprises do not know about AEC and have not
prepared, which shows the weakness of local enterprises, especially small-
and medium-sized enterprises," Doanh said.
"Six
countries are very eager for the AEC to start, while the other four countries
(
Six
other ASEAN members are eagerly awaiting the opportunity since they can
expand markets and use labour and resources at lower prices in the four
countries with less developed economies.
In 1993,
the ASEAN Free Trade Area was established. ASEAN-6 including Singapore,
Malaysia, Thailand, Philippines, Indonesia and Brunei have nearly completed
the process of tariff reductions and non-tariff barriers, leaving a great
deal of pressure for enterprises in the less developed countries.
Suchat
Sawetkamon, director of research and economic development for Trade and
Investment (Thailand – Viet Nam), said that SMEs in Thailand have prepared
for AEC 2015, including improving factories, building SME business clusters,
SME Corporations and others.
Besides
the opportunities for Vietnamese SMEs, the Thai expert warned that Vietnamese
enterprises will encounter goods with high competitiveness and high quality
as well as cheaper product flows in the AEC market.
As a
result, several SMEs will lose their markets or go bankrupt.
While
the transfer of skilled labour will also be a concern, the Vietnamese SMEs
will need to improve technology, management and products, he said.
The Thai
expert suggested that the Vietnamese government further develop
infrastructure and logistics as well as offer loans for SMEs, and organise
seminars to support SMEs on manufacturing, management, products, labour and
others.
Source:
VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
|
Thứ Tư, 12 tháng 11, 2014
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