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BUSINESS IN BRIEF 26/12
Hanoi Food will offer initial shares on January 9 next year,
selling 3.45 million shares at the starting price of VND10,500.
The above amount accounts for 23.8 per cent of the company's
charter capital. In addition, Hanoi Food will also issue 3.19 million shares
to jewellery trader DOJI, its strategic partner.
Hanoi Trade Corporation, representing the State's ownership,
will hold 51 per cent of the stake.
Second ETF to list 10.1m papers
10.1 million fund certificates of
The reference price on the first trading day will be the net
asset value per certificate, dated Friday. SSI Asset Management operates the
fund.
PSD to pay 45 per cent dividend
PetroVietnam Distribution Services (PSD) will pay a dividend
on shares as high as 45 per cent during the first phase of 2014. The value of
the dividends reaches VND64 billion.
In the first three quarters, the company made a profit of
VND79 billion, accounting for 77.5 per cent of the year's target.
It closed yesterday unchanged at VND57,800 per share.
PPI to issue 25 million new shares
Pacific Property and Infrastructure Development (PPI) have
announced that it will issue 25 million more shares at no less than VND10,000
to increase its charter capital by two-fold to VND500 billion.
The company estimated that it would need an investment capital
of VND355 billion next year.
In addition, the company also planned to change its name to
Pacific Infrastructure Project Investment and Development.
Programme encouraging local tourism launched
The Vietnam National Administration of Tourism, under the
Ministry of Culture, Sports and Tourism, held a ceremony in
The programme will be implemented from the end of this year to
the end of 2015 nationwide, aiming to boost domestic tourism demand to local
destinations, particularly mountainous and coastal regions, plains and
islands, and encourage public servants and employers to spend their holidays
and weekends, touring the country.
It will also create favourable conditions for mountainous,
coastal and plain provinces with tourism potential, to study and develop new
attractive tourism products and promotion programmes, and build a friendly
and safe tourism environment.
In addition, the programme will encourage border and coastal
provinces to proactively organise meetings and exchanges between overseas
Vietnamese, local residents and law enforcement forces in the region of Hoang
Sa (Paracel) and Truong Sa (Spratly).
The programme is expected to boost the growth of domestic
tourism and surpass 37.5 million local tourists and overseas Vietnamese
visiting the homeland in 2015.
Companies promise to maintain Tet bonus despite economic
downturn
Businesses have promised to maintain the traditional Tet pay
bonus.
"Many enterprises are still in difficulties and they are
trying to keep the 2015 bonus at the same level as 2014," said the
deputy minister of Labour, Invalids and Social Affairs, Pham Minh Huan.
He said companies operating under the foreign direct
investment category will hold salaries and bonuses at the same level as this
year.
To Hoai
The bonus is, essentially, an injection of cash into the
economy, in that it stimulates consumption during a time of annual family
gatherings and gift giving.
Prime Minister Nguyen Tan Dung has given the go-ahead to
increase the minimum monthly wage by 15 percent in 2015, which raised
concerns that the Tet bonus would be cut to offset higher wage costs.
The General Statistics Office reports that, in November alone,
60,340 firms shut down or asked to halt operation, up 9.8 percent
year-on-year.
Despite the challenges, many businesses in
Nguyen Van Ky, director of An Giang Fisheries Import &
Export Joint Stock Company, confirmed that its workers will receive a
one-month bonus and gifts. Workers with disadvantaged backgrounds will be
given more support.
The chairman of the Labour Union in Can Tho City, Huynh Ngoc
Thach, said Tet bonuses at many companies in his area will be the same or
higher.
Vina Express resumes HCMC-Vung Tau hydrofoil service
Vina Express put its hydrofoils back into service on the
HCMC-Vung Tau route on December 23, almost a year after all hydrofoil
operators were forced to suspend their services after a blaze hit a vessel of
this company.
Bui Cong Trung, chairman of Vina Express, said the company’s
hydrofoil services between the two cities on the first day saw 40% occupancy,
or around 51 passengers per trip.
To attract more passengers, Vina Express is offering a 50%
discount until Sunday. Trung said after the promotion campaign, one-way fares
will be adjusted up to VND200,000 (around US$9.4) on weekdays and VND250,000
on weekends.
In the initial time, two hydrofoils of Vina Express will ply
the HCMC-Vung Tau route. The hydrofoil operator will offer four daily
services on weekdays and six daily trips on weekends with departure times at
7:00 a.m., 9:00 a.m., 11:00 a.m., 2:00 p.m., 3:00 p.m., and 4:30 p.m.
In the coming time, there will be 10-12 daily hydrofoil trips
between the two cities from 6:00 a.m. to 4:30 p.m. when Quang Hung
Transportation Co. Ltd. (Petro Express) also restart its operations to meet
high travel demand ahead of the Lunar New Year holiday, or Tet.
Petro Express plans to re-launch its hydrofoils on the
HCMC-Vung Tau route before the New Year holiday, which begins on February 19.
Trung said the company has spent billions of dong on interior
renovation and modern equipment including a smart fire system after a Vina
Express hydrofoil with 85 passengers on board, including 37 foreigners,
caught fire early this year.
Experts: Power tariff hikes to hit firms
While pressure of input costs is waning as a result of
declining fuel prices, the planned electricity tariff spike of 9.5% might
deal a heavy blow to producers if it is approved, according to economic
experts.
Speaking to the Daily on December 23, chairman of the Vietnam
Energy Association Tran Viet Ngai said Vietnam Electricity Group (EVN) has
presented to the Ministry of Industry and Trade a road map to adjust up power
tariffs with an average rise of 9.5% next year.
Commenting on the proposal, Ngai said it is reasonable as the
selling price needs to rise to near 8.5-9 cent per kWh to attract foreign investors
to power projects.
Price hikes would help EVN find financing for power projects
and cover unpaid losses of VND8 trillion. Last year, EVN earned the highest
profit ever but the profit amount was around VND6 trillion.
However, the proposed price hike plan has faced public
criticism, as EVN is said to run at a profit at the moment.
Economic expert Le Dang Doanh said the proposed electricity
tariff hikes are too high given the recent fuel price cuts. If a power price
rise is necessary, it should be 4-5%.
According to expert Pham Chi Lan, EVN’s proposal to increase
power prices may result from its need to have funding for developing power
transmission and generation projects in addition to the gradual removal of
electricity tariff subsidies.
However, the falling fuel prices are facilitating operations
and recovery of enterprises, and thus the proposed hikes would hit them hard,
Lan added.
Therefore, according to Lan, EVN needs to carefully take into
consideration the plan to raise the power price as enterprises have not
benefited much from the fuel price declines. Even though the excuse for the
power price increase is to mobilize capital for new projects, the hikes
should not be as high as 9.5%. Besides, if the power price is raised to
reduce subsidies, the increase should be less than 7%.
Hoang Huu Than, director of the Electric Power Consulting and
Development Center, said EVN may not need to revise up electricity tariffs if
its corporate governance is improved.
The reasons for the power price hikes are not convincing
enough, Than said.
Under the Prime Minister’s Decision 69 taking effect on
January 10 this year, if input costs are 7-10% higher than the average
selling price, EVN can propose raising power prices.
Since 2012, electricity tariffs have picked up two times by 5%
each. The current average price is VND1,508.85 per kWh.
Transport firms to lower fares after sharp fuel price cut
Many transport enterprises announced plans on December 23 to
decline their charges, one day after the gasoline retail price was cut by a
steep VND2,050 per liter.
Ho Huy, chairman of Mai Linh Group, told the Daily that his
firm will cut taxi fares by VND500-1,000 per kilometer after the group works
with the HCMC Taxi Association, while a source from Vinasun Corporation said
the firm is reviewing input costs to determine appropriate cuts.
A number of cargo transportation companies are mulling fee
cuts.
Huynh Duc, director of Thinh Anh Duong Co. Ltd., said the
enterprise is planning to cut its charges for some routes five to ten days
after fuel trading firms lowered their retail prices.
Do Xuan Phu, director of Minh Lien Transport Trading Service
JSC, said the company will not make more fee reductions in the coming time as
it already did just that.
Thai Van Chung, general secretary of the HCMC Goods Transport
Association, said transport firms will have to slash their fees if they do
not want to lose customers.
Some enterprises in the passenger transport sector at Mien
Dong Coach Station have plans to adjust their fares before the Lunar New
Year, or Tet, even though demand will soar in the lead up to this holiday.
The Ministry of Finance on December 23 proposed the Ministry
of Transport and provincial authorities enhance their controls on fares.
Besides, the provincial departments of finance and transport should ask
transport firms to register new fees in response to the fuel price cuts.
Participants at the event held that the joining of regional
cooperation agreements under roadmaps will provide
Institutional reforms in
If
The conference, themed “Developing market economy institutions
in the context of integration: International experience and implications for
Samsung set two new Vietnamese records
Samsung Vina Electronics. Co. Ltd set two Vietnamese records
for the company in the electronics industry with most customer care centres
and the first customer care system with 24/7 telephone service and remote
service.
They are also first records on customer service in
Samsung has a network of 115 customer care centres all over
Vietnam with three models - customer service plaza (CSP), media solution
centre (MSC) and authorised service centre (ASC). Currently, the company has
11 CSPs in six cities and provinces, 22 MSCs in 18 cities and provinces and
82 ASCs in 58 cities and provinces.
Beside being built based on Samsung’s global standards, all of
the centres are in line with the local culture, and meet the demand of the
Vietnamese customers. It is the first and largest customer care system that
is widespread across the country.
Samsung is also the first electronics company in
On this occasion, Sansung officially kicked off its campaign
known as 100 days – 100,000 compliments from clients when they use its
customer care service. This campaign runs until March 22, 2015.
The Steering Committee for the Southwestern Region aims to see
an economic growth rate of 9.4 percent and an export value of 13.6 billion
USD in the region in 2015, up 8.98 percent and 12.3 billion USD,
respectively, against 2014.
The figures were heard at a December 24 conference in Can Tho
city reviewing achievements the region has made in 2014 and orientations for
2015.
Southwestern localities are expected to draw 262 trillion VND
(12.47 billion USD) in investment and reduce the poverty rate to 4.5 percent
next year.
Addressing the event, Deputy Prime Minister Vu Van Ninh, who
is head of the steering committee, urged the localities to focus on
restructuring the agricultural sector in combination with building new-style
rural areas.
He also asked them to work closely with ministries and sectors
to successfully implement their political tasks in the coming year.
Ministries, sectors and regional localities should promptly
make a list of priority infrastructure projects to be submitted to the
Government, complete regulations on Mekong Delta regional linkage and
implement programmes on socio-economic development, climate change response,
education, religion and security, among others.
Participants discussed ways to lure investment in
infrastructure, support production and export, and maintain defence and
security in border areas.
In 2014, the Southwestern Region’s economy was estimated to
grow 8.98 percent, 1.5 times higher than the country’s average. Its
industrial production increased 11.9 percent and export turnover reached 12.3
billion USD, up 15.87 percent year-on-year.
The region produced 25 million tonnes of rice, about 500,000
tonnes higher than last year’s volume.
VRG opens latex plant in Cambodia
Vietnam Rubber Group (VRG) on December 23 commissioned a latex
processing plant in
The factory with an annual capacity of 5,000 tons has two
production lines including one for RSS latex processing with a capacity of
2,000 ton per year and the other for SVR latex production with a yearly
capacity of 3,000 tons. Rubber Engineering Company under VRG is the supplier
of those production lines.
The plant has a total investment of US$5.2 million funded and
operated by Hoang Anh Mang Yang K Company, a subsidiary of VRG. After coming
into operation, it will process latex extracted from the rubber trees planted
on an area of nearly 45,000 hectares in the province.
VRG plans to grow rubber trees on 150,000 hectares in
SBV unveils plans to remove more deposit interest ceilings
The State Bank of Vietnam (SBV) will remove the interest rate
ceilings for deposits of less than six months when market conditions are
ripe, according to SBV deputy governor Nguyen Thi Hong.
Hong told a regular news briefing in
Many credit institutions have reduced their deposit interest
rates far below the permissible upper levels.
“The ceilings are simply a level based on which strong credit
institutions can offer lower interest and weak institutions or banks unable
to compete with the strong players can offer the highest allowable interest
rates,” Hong said.
“The caps help create flexibility for interest rates based on
capital supply and demand on the market. The central bank will closely
monitor and take into account the macro economy and the safety of credit
institutions to eliminate the caps when conditions are ripe.”
Credit growth is put at 13% this year compared to the target
of 12-14% set by the central bank earlier this year. As of December 19,
credit grew by 11.8% against late last year.
Hong said credit normally grows slightly in the first months
of a year and significantly in the last months of the year.
SBV anticipates credit to increase 13-15% next year, Hong
said.
According to SBV, the exchange rate between the U.S. dollar
and
This year interest rates have dropped 1.5-2 percentage points,
with deposit rates falling 1.5-2 percentage points per year and lending rates
down around two percentage points. The rates for old loans have also been
revised down.
A representative of Vietcombank said at the meeting that the
bank’s annual rates for short-term loans stay under 7% while those of medium-
and long-term loans are kept at reasonable levels. If the deposit rates are
lowered, Vietcombank will adjust the medium- and long-term lending rates
down.
Retailers yet to take to online shopping
The development of e-commerce has played a vital role in the
world market as retail continues to modernise.
However, many retailers have not utilised more modern trade
methods, like online shopping, said Vu Vinh Phu, President of the Hanoi
Supermarket Association, at a conference in
Phu said e-commerce makes shopping more convenient, and
increases production and consumption.
Consumers can save time and find lower prices online, said
Nguyen Ngoc Hung, Director of Di Sieu Thi Joint-Stock Company. However, some
businesses have posted exaggerated advertisements and poor products online,
preventing the online market from developing.
Phu urged online retailers to deliver quality products and
good customer service to protect the sector's reputation.
State agencies should have strict measures for dealing with
online trading violations, he said. However, just in case, consumers should
research products carefully before buying.
However, so far, online shopping accounts for only 0.1 to 0.2
percent of the nation's total retail revenue, far lower than in many other
countries, said Nguyen Lam Thanh, General Secretary of the Vietnam Digital
Media Association.
In developed countries, popular companies sell products
online, but in
The conference was co-organised by the Hanoi Super Market
Association, Vietnam Digital Media Association and Dien dan Doanh nghiep
(Business Forum).
Increase export tax on woodchips: MARD
The Ministry of Agriculture and Rural Development (MARD) has
petitioned the State to increase export tariffs on woodchips from 0 percent
to 5-10 percent, in a move to limit woodchip exports.
MARD also proposed instituting a 10 percent value-added tax,
as well as a 25 percent corporate tax for enterprises involving in woodchip
production.
Under a scheme on managing domestic woodchip production in the
period from 2014-20, as approved by the ministry, wood processing firms were
allowed to use a maximum of 70 percent of wood material harvested from
plantation forests to produce woodchips from now through the end of 2015.
However, the ratio would then be reduced to 40 percent in the five following
years.
The scheme also prioritised the development of high
value-added products, such as indoor and outdoor furniture, wooden
handicrafts and expansion of new export outlets, such as
According to Huynh Van Hanh, Vice Chairman of the Handicraft
and Wood Industry Association of Ho Chi Minh City, the value of
State budget revenue surpasses yearly target
State budget revenue surpassed the yearly target to hit 831.19
trillion VND (38.7 billion USD) as of December 22 despite economic troubles,
Deputy Finance Minister Tran Xuan Ha informed a conference in
Of the extra revenue, 10 trillion VND (476 million USD) will
be transferred to 2015 to spend on State payroll and the remaining will be
used for debt payment.
The deputy minister noted that overspending this year has been
kept within 5.3 percent of the GDP as set by the National Assembly.
Reforms in tax filing and customs formalities have helped
businesses save time and costs, from 537 hours to 247 hours, Finance Minister
Dinh Tien Dung told the conference reviewing the State financial-budget
activities 2014 and setting orientations for 2015.
Regarding inflation control, the minister attributed the low
CPI growth of over 4 percent to the close management of market prices.
He reported that as of November, 90 out of 108 State economic
groups and corporations had their restructuring schemes approved. During the
11-month period, 115 State-owned enterprises were equitised while 62 others
were merged.
SOEs have withdrawn over 2.4 trillion VND (114 million USD)
from non-core business activities, up 2.5 times from last year’s same period.
However, the pace of divestment and equitisation remains slow,
Deputy Minister Ha acknowledged.
At the same time, Minister Dinh Tien Dung pointed out issues
that led to losses of State revenues, such as violations in value-added tax
refund, smuggling, trade frauds and transfer pricing.
The amount of corporate tax debt currently stands at
approximately 71 trillion VND (3.3 billion USD), higher than the 2013 figure.
Since the beginning of this year, the financial sector has collected about 30
trillion VND (1.4 billion VND) worth of corporate tax debt and the customs
sector collected more than 1.7 trillion VND (85 million USD).
The large outstanding debt amount is put down to ailing demand
that resulted in large inventories, pushing a number of firms into tax
default.
The financial sector set the 2015 goal of collecting 911.1
trillion VND (43.3 billion USD) for the State budget, with overspending at 5
percent of the GDP as approved by the National Assembly.
Minister Dung vowed to keep a close tab on State budget
spending, market prices and public debts in order to meet liabilities, while
fine-tuning policies in taxation, customs, budget, corporate financial
management, securities market, and accounting-audit services in line with
economic restructuring.
He also requested keeping market prices during the Tet (Lunar
New Year) holiday in check and ensuring sufficient supply of essentials.
The Steering Committee for the Southwestern Region aims to see
an economic growth rate of 9.4 percent and an export value of 13.6 billion
USD in the region in 2015, up 8.98 percent and 12.3 billion USD,
respectively, against 2014.
The figures were heard at a December 24 conference in Can Tho
city reviewing achievements the region has made in 2014 and orientations for
2015.
Southwestern localities are expected to draw 262 trillion VND
(12.47 billion USD) in investment and reduce the poverty rate to 4.5 percent
next year.
Addressing the event, Deputy Prime Minister Vu Van Ninh, who
is head of the steering committee, urged the localities to focus on
restructuring the agricultural sector in combination with building new-style
rural areas.
He also asked them to work closely with ministries and sectors
to successfully implement their political tasks in the coming year.
Ministries, sectors and regional localities should promptly
make a list of priority infrastructure projects to be submitted to the
Government, complete regulations on Mekong Delta regional linkage and
implement programmes on socio-economic development, climate change response,
education, religion and security, among others.
Participants discussed ways to lure investment in
infrastructure, support production and export, and maintain defence and
security in border areas.
In 2014, the Southwestern Region’s economy was estimated to
grow 8.98 percent, 1.5 times higher than the country’s average. Its industrial
production increased 11.9 percent and export turnover reached 12.3 billion
USD, up 15.87 percent year-on-year.
The region produced 25 million tonnes of rice, about 500,000
tonnes higher than last year’s volume.
Dung Quat Oil Refinery given license for expansion
The Binh Son Oil Refinery Co Ltd was granted an investment
certificate to the upgrade and expansion project of the Dung Quat Oil
Refinery in the central
Accordingly, the plant will be constructed with a total
investment of 1.9 billion USD. Once complete, its capacity will be 8.5
million tonnes per year, 2 million tonnes higher than that at present.
Le Viet
The year 2014 marked a successful year for both the production
and business of the Binh Son Oil Refinery Company.
Its total output reached 5.81 million tonnes, earning 128
trillion VND (around 6 billion USD), equivalent to 120 percent and 128
percent of the yearly target, respectively.
The company began providing bio-fuel E5-RON 92 from July 30 in
accordance with the bio-fuel development roadmap approved by the government.
It also implemented a number of initiatives of technological innovation in
production.
The firm has set a target of producing over 5.86 million
tonnes of various products with total revenues of over 120.6 trillion VND in
2015.
Can Tho city records high growth in trade, tourism
The Mekong Delta city of
The city has so far attracted 22.95 trillion VND (over 1
billion USD) and 52.4 million USD from domestic and foreign investors;
registered trade value of 71.73 trillion VND (3.24 billion USD); and welcomed
over 1.36 million tourists, a year-on-year rise of 16.6 percent, 8.3 percent
and 9 percent, respectively.
In 2014, the city has improved infrastructure built for land
and waterway traffic, while adopting incentives for businesses at home and
abroad, Deputy Director of the municipal Department of Planning and
Investment Bui Ngoc Vy.
Intensive trade promotion brought Vietnamese goods to rural
areas and encouraged businesses to join international trade fairs in the
capital Hanoi and the southern economic and business hub of Ho Chi Minh City,
and other countries and territories like Cambodia, Taiwan (China), France,
and Belgium, according to Deputy Director of the municipal Department of
Industry and Trade Duong Nghia Hiep.
Local authorities also provided technical assistance for
businesses to create new products, reduce production costs, and increase
competitiveness in the domestic and global markets.
By concentrating on export staples like rice, seafood and
garment, strengthening its foothold in traditional markets, and seeking fresh
outlets, the city grossed over 71 trillion VND (3.2 billion USD) from
domestic goods consumption and 1.35 billion USD from foreign exports.
Meanwhile, the tourism sector earned over nearly 1.2 trillion
VND (57.1 million USD) in revenue, exceeding the yearly target of 4.5 percent
and registering a year-on-year rise of 20 percent, Deputy Director of the
Department of Culture, Sport and Tourism Dang Thai Hoa revealed.
He attributed the outcome to the city’s cooperation with 19
cities and provinces across the country to promote its tourism products and
services. Can Tho also partnered with southern An Giang and Kien Giang
provinces to develop spiritual and ecological tourism, he said.
Dong Nai: Riot-affected businesses achieve growth
Almost businesses that were affected in incidents last May in
the southern
The businesses reported their operations at their meetings
with the local authorities’ working delegation from December 16-24.
Representatives from Noroo – Nanpao Paintings & Coatings
Vietnam who suffered a damage of 5 million USD expressed their confidence in
the local business climate, adding that the company is rebuilding facilities
for further production.
Besides, the Cu Thanh and
Meanwhile, others suggested simplifying customs procedures and
tax declaration.
Vice Chairman of the provincial People’s Committee Nguyen Phu
Cuong said the province will work together with relevant agencies to
facilitate the businesses’ operation.
According to the Industrial Zone Management Board, of the 205
businesses affected by the incidents sparked by workers’ rallies protesting
against
The Ministry of Finance teamed up with the province to hasten
insurance payments for affected firms. As a result, 114.7 billion VND (5.41
million USD) has been paid to enterprises by insurance companies.
Derivative securities market expected to operate soon
Restructuring the Vietnamese securities market and building a
market for derivative securities is crucial to the development of financial
market, requiring careful preparations of state management authorities as
well as the readiness of market players, the Vietnam Economic News reported.
Currently, the Vietnamese securities market just consists of
basic investment tools such as shares, bonds and fund certificates.
Dr. Nguyen Son, Director of the Market Development Department
of the State Securities Commission of Vietnam (SSC), was quoted as saying
that derivatives were indispensable products in the development process of
the financial market. In
According to SSC Vice Chairman Nguyen Thanh Long, derivative
securities are very important tools that help investors prevent risks, and
the development of the derivative securities market would foster the share
and bond markets. However, the development of this complicated market
requires careful preparations of investors and market members as well as
state management authorities. The derivative securities market must be
developed step by step to ensure system safety.
In March 2014, Prime Minister Nguyen Tan Dung approved a plan
for developing the derivative securities market under a roadmap for putting
derivatives into transactions based on securities.
To prepare for launching the derivative securities market, the
Ministry of Finance has drafted a decree on derivative securities market and
is collecting opinions of relevant ministries and sectors so that the draft
could be submitted to the Government for approval later this year. Along with
legal preparations, the SSC, stock exchanges and securities depository
centres are also preparing necessary system and infrastructure facilities
while promoting investors' awareness on the new financial product.
SSC Vice Chairman Nguyen Thanh Long also said along with
building a legal framework for the derivative securities market, the SSC was
compiling a training curriculum in this field. The curriculum is expected to
be issued in January 2015 for use in securities companies and banks with
derivatives operations.
Workshop discusses economic progress
The next phase of
Economic Commission Head Vuong Dinh Hue shared that
restructuring the economy has been a priority in the implementation of the
2011–2015 socio-economic development plan.
The Vietnamese economy saw some improvement in the first three
years of implementing the plan, but many weaknesses remained, revealed
The information was disclosed at the workshop, which was
conducted by the Central Committee of Economy, the State Auditing and the
Nhan Dan (People) newspaper. It focused on the Vietnamese economy as the
country enters a new phase of development.
He pointed out a number of shortcomings in the country’s
economy, including no consensus on a new growth model. Moreover,
He said that the economy still faces numerous risks and
administrative reforms are slow. He also disclosed that growth is causing
negative impacts on the environment.
Thuan Huu, Editor in Chief of the Nhan Dan newspaper, said
that three years have been spent in restructuring the local economy, which
focused on three key sectors: public investment, financial and banking system
and state-owned enterprises.
The years allotted in this endeavour showed positive results.
However, the restructuring process is still considered generally quite slow
with respect to the attainment of the economic reform targets.
Huu expressed his hope that the experts attending the dialogue
will be able to offer more solutions on building a specific economic growth
model in the future.
Nguyen Quang Thai, Vice Chairman of the Economic Science
Association of Vietnam, shared that the model of economic growth used over
the past years lacked efficiency and competitive ability.
The failure of the domestic economy to pay attention to
efficiency and creation resulted in low labour productivity and reduction in
efficiency, Thai explained.
The economy is facing difficulties in adapting to the rapid
economic development. It also found it challenging to adjust to the
advancements brought forward by science and technology. No innovation should
lag behind, he said.
Thai advised that the new economic development model should
follow the world economic development standard.
The state should attach immense importance to the private
economic sector during the integration period in the future, he advised.
Luu Bich Ho, former head of the Development Strategy Institute
under the Ministry of Planning and Investment, said that the new economic
development model should push the local economy to aim for sustainable
development in terms of productivity, quality and efficiency.
Saigontourist welcomes the year’s last maritime tourists
The Saigon Travel Service Company (Saigontourist) on December
24 received 3,500 passengers and crew members on board luxury cruise ship Celebrity
Millennium from the
The ship, which anchored at
They are on a five-day tour of exploring
The visit wrapped up a successful year of the Saigon-based
travel company, which welcomed more than 180 international cruise liners with
220,000 tourists.
Gentherm begins building new manufacturing facility in Vietnam
A world leader in thermal technology, Gentherm Inc announced
on December 23 that it intends to expand its production capacity in the fast
growing Asia market by opening a new manufacturing facility in the northern
part of
As planned, the new facility will be built on 20,439sq.m in
Duy Tien district, Ha
The facility will be dedicated to the production of the full
line of Gentherm seat comfort and industrial products, and is expected to
provide jobs for up to 1,500 people.
Gentherm President and CEO Daniel R. Coker said the
Coke said,
The
Deputy PM: Import tariff cut under FTAs commitment
Ministries, sectors, and localities need to seriously realise
the country’s commitment to import tax reduction as agreed in signed Free
Trade Agreements (FTAs) in the 2015-2018 period.
The request was recently made by Deputy Prime Minister Vu Van
Ninh as suggested by the Ministry of Finance (MoF).
The leader asked the ministries, agencies, and localities to
proactively take necessary measures to ensure the implementation.
According to the MoF,
The duty on items that are in need for the domestic production
will be cut first while that on sensitive goods with high tax rates will be
reduced later.
It is expected that about 90%-97% of tariff lines will be cut
to zero by 2020.
E-commerce – inevitable and vital for retail industry
E-commerce is both very new and indispensable at the same
time. Since it first started gaining traction in the 1990s nearly every brick
and mortar business in developed countries have developed an online sales
strategy.
However, many retailers with physical shops in
Vu Vinh Phu, president of the Hanoi Supermarket Association
says online shopping has provided consumers with useful alternative methods
of shopping for and buying goods and services. However, the veracity of
some online retailers is questionable, he adds.
Therefore, he has asked retail businesses to enhance their
prestige to improve product quality and customer care services. He says he is
convinced those businesses that maintain their prestige and heighten their
responsibilities will reap success.
Regarding customer shopping behaviours, Nguyen Lam Thanh,
Vietnam Digital Communications Association general secretary says the value
of goods trading via online retail channels has accounted for just 0.1-0.2%
of the retail industry’s total revenue, much lower than the rate in most
other nations in the region and world.
Regarding payment methods, 90% of total revenues are paid via
cash after taking delivery of the goods while only 10% are paid for via
internet banking and credit cards.
Some 40% of the sales volume in the retail industry has
focused on garments and textiles, and the fashion sector while 60% comes from
electronics, household utensils and food industry. Customers are primarily
office workers aged 22-40 and live in major provinces and cities.
Regarding solutions for online shopping in the retail
industry, general director of disieuthi.vn JSC Nguyen Ngoc Hung says
residents in the city have always updated facilities and modern lifestyles to
improve their quality of life.
At present, customers spend the majority of their time seeking
products, waiting for payments or delivery when they go shopping at
supermarkets.
Many people say behaviours of Vietnamese consumers have not
matched the development of the trend. Many people go shopping online in the
hope of purchasing goods at cheaper than brick and mortar store prices.
This purchasing theory runs counter to developed markets in
the world. Thanh says in developed nations, several prestigious brand names
only have online shopping channels without any physical retail establishment.
In spite of some weaknesses, Phu said the development of
e-commerce is an inevitable trend.
The most important thing is for the state management agencies
to initiate actions to limit the shortcomings, Phu concludes.
Awards honour SMEs and brand name developers
A presentation ceremony for the biennial Vietnam National
Trademark Council (VNTC) awards was held December 23 in
On hand to present the 63 awards was Do Thang Hao, deputy
minister of the Ministry of Industry and Trade (MoIT).
In his address, Hao remarked that small and medium sized
businesses (SMEs) have been the foundation for
He explained that the aim of the awards programme is to
promote brand name and trademark development of Vietnamese businesses.
The honourees were selected based on the soundness of their operations
and performances and their commitment to the three values of innovation,
creativity and entrepreneurship.
Hao stressed the importance of expanding markets and
increasing the quality of products in the context of the country’s deepening
regional and global integration.
A wide variety of business support consultancies, conferences,
seminars, and training courses were launched by the MoIT over the past year
to help raise business awareness of the importance of improving marketing
capacity and protecting product trademarks, Hao said.
Hao praised the VNTC, the Ministry of Industry and Trade
(MoIT), and the honourees for their initiatives and dedication to promoting
Fuel price cuts continue dragging CPI down
The December consumer price index (CPI) fell by 0.24% from the
previous month, bringing the CPI growth for the entire year down to only
1.84%, said the General Statistics Office (GSO).
The December drop is attributed to petroleum price cuts on
November 22 and December 6 which lowered transport costs by 3.09%, said
Director of the GSO’s Price Statistics Department Nguyen Duc Thang.
The tumble in global gas prices also led to a slump in
domestic gas prices since December 1.
Besides transport, the category of housing and building
materials saw their prices decline, by 0.94%.
Slight increases were recorded in food and foodstuff prices
(0.14% and 0.05%) while the same trend was also read in such groups as
household appliance (0.18%) and domestic services (0.19%).
Meanwhile, little change was seen in four categories, namely
hospitality services (up 0.08%); pharmaceutical and medical and educational
services (up 0.03%); and culture, entertainment, and tourism services (up
0.07%).
The average CPI this year showed a 4.09% increase compared to
the 2013 average, lower than the Government’s 5% target. It is also
relatively low compared to the readings in the last decade, Thang said,
adding that this means the Government’s effort to curb inflation has paid
off.
Once the CPI stays stable, the State Bank of
GSO General Director Nguyen Bich Lam forecast the recent
plunge in fuel prices will continue pulling down production and delivery
costs, thus keeping CPI low in January 2015. Next year’s CPI may rise by 5%if
the Government continues with drastic measures.
Source:
VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
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Thứ Năm, 25 tháng 12, 2014
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