|
BUSINESS IN BRIEF 7/1
New road project proposed to ease
A
The 2.7km road would start from the intersection of
The estimated investment capital for the project is nearly
VND2 trillion (US$94 million), not including the cost of land clearance.
Yen Khanh Company, the project investor, won the bid to
collect tolls on the
Vu Thi Hoan, the company's general director, said the company
had carried out a survey to find out the reason for the decline.
"Transport vehicles have to take the Binh Dien 1 Bridge
to go from the Ho Chi Minh -
The linking road would address this problem. Yen Khanh Company
would use tolls collected from stations on the
Manufacturing sector enjoys strong growth
The latest Vietnam Manufacturing PMI survey also showed
emerging deflationary pressures, with both input and output prices continuing
to fall at faster rates. The headline seasonally adjusted purchasing
managers' index (PMI) – a composite indicator designed to provide a single-figure
snapshot of operating conditions in the manufacturing economy – recorded 52.7
in December, up from November's 52.1 and the highest reading since April.
Growth has now been registered for 16 months in a row.
The upturn in operating conditions stemmed primarily from
strengthened growth in output and new orders. Improving customer demand led
to higher volumes of new work and subsequently production. Output and new
work both rose to their highest levels in eight months.
December's survey indicated that demand improved from both
domestic and international sources. New export business rose at a solid rate
that was little changed from November's seven-month high.
With higher production requirements, companies continued to
increase their purchasing during December. Moreover, the rate of growth
accelerated to the sharpest since April as companies also sought to rebuild
stock in anticipation of further production growth.
December's survey showed a second successive monthly increase
in inventories of input purchases, while there was also an increase in stocks
of finished goods. Companies reported that delayed delivery of completed
goods led to a build-up of stock in warehouses.
Mild capacity pressures were evident in December as backlogs
of work increased for a second successive month. Companies responded by
adding to their staffing levels for a fourth consecutive month, with the rate
of growth solid, despite easing to the lowest since September.
On the price front, December's survey data indicated that
average input costs paid by Vietnamese manufacturers continued to fall.
Companies reported that supplier prices, shipping costs and the price of fuel
had all fallen when compared to November. Average input prices declined to the
greatest degree since July 2012.
Several supermarkets and malls in
Saigon Co.op said its Co.opmart supermarkets were choc-a-bloc
with shoppers.
Vo Hoang Anh, marketing director of the chain, said sales this
year was significantly higher than a year ago and the number of shoppers had
gone up by two or threefold from normal days.
Besides the long holiday, he also attributed it to the supermarket's
promotions and discounts on thousands of items.
Fresh and dried foodstuff, confectionary, beer, soft drinks,
and other beverages were among the bestsellers.
The supermarket estimated that average revenue during the
holidays was double that of normal days, with sales of beer, beverages,
confectionery, and dried foodstuff at certain outlets being four times the
normal level.
Big C supermarkets, which offered discounts on more than 1,000
essential products during the holidays, also reported sales was twice that of
normal days.
The French chain said its outlets elsewhere in the country saw
three times the normal number of shoppers since many people took advantage of
the four-day holiday to travel or return to their hometowns.
The average purchase by each shopper was also much higher than
on normal days, it said.
Other supermarkets like Maximark and Lotte Mart too reported a
sharp increase in sales.
At traditional markets in the city like Tan Dinh, Ba Chieu,
and Thi Nghe, business was slightly better than on normal days, with fresh
food being the top seller.
With supply being abundant, prices were stable during the
holidays.
Bourse, business innovation board push SOE equitisation
The HCM Stock Exchange and the HCM City Board of Business
Management Innovation agreed to draw up programmes to help city-run
State-owned enterprises equitise and list under a memorandum of understanding
they concluded last week.
"This will facilitate speeding up of the equitisation of
State-owned enterprises in
Pham Minh Tri, head of the HCM City Board of Business
Management Innovation, said the areas of assistance would include regulations
and procedures related to IPO auction and listing, access to funding, and
advanced corporate governance to improve transparency and performance.
Ten HCM City-run SOEs became joint stock companies last year
by selling more than 24 million shares to the public for over VND345 billion
(US$16.4 million), representing a 42.8 per cent premium on face value, he
said.
SOEs sold non-core businesses for VND317 billion ($15.10
million) last year against a target of VND1.1 trillion ($52.38 million), he
said.
This year 20 of them are scheduled to equitise and divest
non-core businesses, with the latter to bring in VND1 trillion ($47.62
million), he added.
Golden year for tourism sector
The number of foreign tourists and domestic holidaymakers
strongly increased in early January promised that 2015 will be a golden year
for the tourism sector.
The Thua Thien-Hue provincial Department of Culture, Sports
and Tourism reported that the province received nearly 65,000 visitors,
nearly 60% of them are foreigners on the first four days of January. Room
occupancy rate of big hotels reached 65-70%.
Nearly 63,000 tourists arrived in
A Saigontourist representative said all tours in January were
booked by more than 30,000 domestic and foreign tourists. Foreign arrivals
came to
The company is expected to serve 800 passengers and crew on
board the Azamara Quest which will be en route from Ha Long bay to Danang and
Earlier, the company received 3,500 visitors from the
On New Year holidays, Vietravel also welcomed 13,000 tourists,
an increase of 15% against a year earlier.
New FDI approvals in 2014 double in HCMC
Though the FDI picture in
A recent report by the HCMC Department of Planning and
Investment showed that from January to December 15 last year, 414 fresh projects
were approved with total registered capital of US$2.84 billion, up 195%
against the same period of 2013.
The same period saw 133 operational foreign-invested companies
injecting an extra US$371.2 million into the city, but this amount accounted
for 53.5% of the total additional capital pledged in the same period of 2013.
With fresh capital from new and operational projects combined,
the city attracted a total of over US$3.2 billion, rising 94% against the
previous year. This was an impressive performance because new FDI approvals
nationwide in 2014 fell 6.5% year-on-year to US$20.2 billion.
The HCMC Department of Planning and Investment said the FDI
target for 2014 was US$2.5 billion only. This shows a pickup in investor
confidence in the city’s business environment.
According to the department, wholly foreign-owned firms
registered 300 projects worth over US$2 billion, joint ventures with 113
projects capitalized at US$663 million and business cooperation contracts
with only one project valued at US$770,000.
The manufacturing and processing sector contributed 72% of the
country’s total FDI capital. Similarly, 58% of the city’s new FDI capital was
poured into the sector with 43 projects. Notably, 111 projects were in the
wholesale and retail sectors while the auto and motorbike repair groups
accounted for 11%, and the science and technology sector for over 6%.
High-profile projects approved in HCMC in 2014
Samsung CE Complex Co., Ltd with a US$1.4 billion project.
Bay Water Co., Ltd. with an apartment building project worth
US$200 million.
Worldon (
AEON (
TPP expected to create new momentum for Vietnam-US trade ties
The pending Trans-Pacific Partnership (TPP), if completed this
year, will create an important momentum for the economic ties between
As the
It is projected that the country’s export value to the
Nguyen Hong Duong, deputy head of the American Market
Department under the Ministry of Trade and Industry, said with the TPP in
place, many Vietnamese commodities will become more competitive when the tax
level is reduced to zero.
“There are many opportunities for
Stuart Schaag, trade counselor at the US Embassy in
He added that the TPP can also increase the flow of
Experts said the TPP negotiations have helped address existing
issues between Vietnamese and US businesses such as intellectual property and
financial service suppliers.
At the same time, they reminded Vietnamese companies of
challenges they will face in the
Duong pointed to the
Another barrier to
Therefore, experts urged Vietnamese manufacturers to join
regional and global production and supply chains, strictly observe
international regulations on investment, labour and environment as well as
TPP stipulations. At the same time, the State should adjust the legal system
in line with the TPP and popularise information on the agreement.
The TPP covers 12 Pacific Rim nations which are Australia,
Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore,
the US and Vienam. The 12 members, which together account for 37.5 percent of
the world GDP and 11.2 percent of the world population, have completed the
19th round of negotiations on the agreement.
Kien Giang province eyes major fishery hub status
The Mekong Delta
The locality’s sea in the country’s southwestern region, part
of the
The province has over 4,000 fishing boats and 250 logistics
ships, with a capacity of at least 90 CV each, that are able to work
offshore, the biggest figure nationwide. They are part of the locality’s
current 10,880 fleet.
In 2014, over 462,000 tonnes of seafood, valued at 12 trillion
VND (571.42 million USD) were caught by local fishermen while over 161
million USD worth of fishery products were exported.
In its 2010-2020 fishing port system planning, Kien Giang has
set to build 10 fishing ports, 13 fishing wharfs, and 13 shelter areas.
So far, seven fishing ports, which cost a total investment of
192 billion VND (9.14 million USD), were put into service.
Meanwhile, the construction of Ba Hon fishing port and the
upgrade of An Thoi and Tac Cau ports are underway, said the provincial
Department of Agriculture and Rural Development.
Kien Giang’s Tac Cau port is the biggest fishing port in the
country. Covering 32 ha, it handles 270,000 tonnes of seafood a year in
addition to providing logistics services for not only local vessels but also
the vehicles hailing from other Mekong delta and
Vice Chairman of the Kien Giang People’s Committee Mai Anh
Nhin said local authorities have asked for State budget funding for expanding
Tac Cau, An Thoi and Tho Chau fishing ports, building shelter areas on Tho
Chu island and Ganh Dau cape, infrastructure for a fries production centre on
Phu Quoc island, and a fishery centre in Chau Thanh district.
These projects, which will be implemented between 2015 and
2020, are expected to turn local sea-based economic activities into a modern
and profitable production sector that will spur the growth of relevant
industries, thus contributing to poverty alleviation and socio-economic
development, especially in littoral and insular areas.
Kien Giang targets the shipment of fishery products accounting
for 35-40 percent of its export revenue.
Business community raises expectations for 2015
Vietnamese business community is placing new expectations in
2015 amidst the deeper economic integration into the world and tougher
competitiveness, the Nhan Dan (People) online newspaper reported.
Along with the recovery of the whole economy in 2014,
production and business activities also saw improvements despite a high
number of dissolved and suspended enterprises.
According to the General Statistics Office (GSO), nearly
15,500 enterprises resumed business operations in 2014, up 7.1 percent
compared to 2013.
Over 74,400 enterprises registered to establish with a total
registered capital of over 432 trillion VND (20.3 billion USD), down 2.7
percent in number of enterprises but up 8.4 percent in registered capital.
The average registered capital per new enterprise in 2014 was 5.8 billion VND
(272,600 USD), an increase of 11.5 percent against the previous year.
Newly-established enterprises in 2014 also created jobs for more than one
million people, up 2.8 percent over the previous year.
The year 2014 also witnessed more than 67,800 dissolved
enterprises but GSO Director Nguyen Bich Lam said that this was not a
worrisome number as 93.7 percent of them had capital less than 10 billion VND
(470,000 USD).
Lam said that Vietnamese enterprises are in the screening
process under the market rules which eliminate weak ones. Thus, the
bankruptcy of enterprises also helps restructure the economy, clean up the
business environment and be the basis for the sustainable development, the
GSO Director affirmed.
Looking back on 2014, it can be said that it was a difficult
year for many enterprises. Van Duc Muoi, General Director of Ho Chi Minh
City-based food producer Vissan, said that the Government has built trust in
the business community through commitments on administrative reform in the
field of economy. However, enterprises, particularly small-and medium-sized
enterprises with weak distribution networks met lots of difficulties in
selling products as consumers continued to be sparing with shopping, coupled
with the economic recession and limited public investment in trade
infrastructure.
2015 will witness big changes in policies and institutions
with the revised Law on Investment and revised Law on Enterprises, the two
'backbone' laws for the economic activities. The two laws are expected to
reduce administrative procedures and enhance the freedom right of doing
business and the role of enterprises.
In 2015,
Le Phuoc Vu, Chairman of the Board of Directors of Hoa Sen
Group said extensive economic integration will help enterprises to expand
trade transaction, attract investment, boost exports, cut cost and improve
their competitiveness. Besides advantages, Vietnamese enterprises will face
tougher competition even in their home market which requires them to put
forth appropriate business strategies.
Chairman Vu suggested the Government have a mechanism to
ensure the harmony of interests between domestic and foreign enterprises
operating in
Rice, aquatic products, textiles to be Can Tho’s key exports
in 2015
The Mekong Delta city of
The city has set the goal of exporting 1 million tonnes of
rice this year for a revenue of 412 million USD, with 22 percent of the rice
shipped to choosy markets such as
To realise the target, the locality plans to expand its rice
field area to 230,000 ha this year, producing about 1.4 million tonnes of
products, while signing contracts with neighbouring localities to purchase
550,000 tonnes of rice materials. It will also invest in equipments for
husking, polishing and packing rice in line with international standards.
Regarding the production of aquatic products, Can Tho will shift
to products with high added value via encouraging the application of advanced
technologies in processing and preserving products. It hopes to export
160,000 tonnes of aquatic products in 2015, earning 485 million USD.
Meanwhile, the city will upgrade garment making production
factories and train 3,000 more workers for the apparel industry in order to
improve product quality and raise output.
Can Tho is striving to rake in between 1.45-1.6 billion USD
from exports in 2015, up 100-250 million USD against that of 2014, to which
the three staples are to contribute around 1 billion USD, said Bui Ngoc Vy,
Deputy Director of the municipal Department of Planning and Investment.
Last year, the city’s export turnover hit 1.35 billion USD,
with the largest contributions coming from rice, aquatic products, textile
and processed food.
The Mekong Delta key economic region, which comprises Ca Mau,
Kien Giang, An Giang provinces and Can Tho City, has set the target of
raising the proportion of the industry sector to 33.3 percent in the region’s
economic structure in 2015.
According to the Steering Committee for the South-Western
Region, the region will focus efforts on restructuring industrial production
along the direction of expanding processing industry, a major strength of the
region.
Towards this goal, the four localities will establish
large-scale areas for rice cultivation, shrimp and fish farming and fruit
tree growing to ensure stable material supply for the processing industry.
The four localities will strive to raise their combined
industrial production value to over 210 trillion VND (10 billion USD) this
year, up 12.7 percent from the 2014 figure, while attracting additional 1.4
trillion VND (65.8 million USD) in investment from domestic investors and 350
million USD from foreign firms, according to the Steering Committee’s deputy
head Nguyen Phong Quang.
In addition, the region will shift strongly to the production
of high-added value products using environmentally friendly technologies,
Quang said.
The region also aims for 11.9 billion USD in export turnover,
up 8.1 percent year-on-year.
To assist with industrial production, local authorities will
adopt measures to help local businesses enhance their competitiveness through
expanding cooperation with foreign partners to access modern technology,
establishing distribution networks, as well as developing brand names for key
products such as farm produce and seafood.
At the same time, more incentives will be adopted to create a
fair and favourable investment environment.
In 2014, the Mekong Delta key economic region attracted 1.23
trillion VND (57.8 billion USD) in investment from domestic investors and 324
million USD from foreign businesses. The region’s industrial production value
almost reached 185 trillion VND (8.79 billion USD), accounting for 30.6
percent of the economic structure, helping increase the industrial production
value of 13 provinces and city in the Mekong Delta to a record 469 trillion
VND (22.3 billion USD).
The Mekong Delta’s rice output has increased six times during
the 1976-2014 period, according to the Mekong Delta Rice Research Institute.
According to Le Van Banh, Head of the Institute, the whole
region produced 25 million tonnes of unhusked rice in 2014 while the figure
recorded in 1976, when the institute was established, was just 4.2 million
tonnes.
The average per-ha crop yield also increased from 3 tonnes to
8 tonnes and farmers can now have three crops a year instead of the previous
one, Banh said.
The institute has been instrumental in those massive changes,
he said, citing its contribution of most varieties, eight out of 10, commonly
grown by farmers over 70 percent of the rice cultivation area in the region.
The institute’s rice varieties, numbering 166 so far, bear a
lot of superior attributes such as disease-resistance, high yield, and good
rice quality.
Many of which have been growing well in other countries such
as
The Mekong Delta accounts for 90 percent of the country’s
export rice.
Railway sector strives to improve passenger service
The Viet Nam Railway Corporation (VNR) aimed to continue
creating conditions for railway transport companies to improve their
competitiveness and ensure railway traffic safety, Deputy General Director
Pham Cong Trinh said at a recent workshop.
This year, the sector would also continue taking measures to
improve railway services and "manage ticket prices" better,
according to Trinh.
In 2014, the number of railway accidents dropped by 6.1 per
cent. There were also fewer delays, Trinh said, pointing out that nearly 100
per cent of Thong Nhat trains departed and arrived on time in the fourth
quarter.
The launching of an online booking system in December made it
easier and fairer for passengers to buy tickets, particularly during busy
times like Tet, as customers could now use their phones to purchase tickets
rather than going to the station and waiting in a long queue, he said.
Train transport accounts for 0.5 per cent of the total
passenger transport market and 1 percent of total freight transport. The
sector aims to raise these rates to 13 per cent of passenger transport and 14
per cent of freight transport by 2020.
As part of the plan to realise the targets, the VNR will
equitise 15 rail bridge maintenance and five railway communications companies
next year and withdraw capital from non-core businesses.
The corporation finished the equitisation process for five
member companies in 2014, selling all shares offered.
"VNR plans to stay focused on its core business: railway
management," said deputy director general Doan Duy Hoach.
VNR will continue to withdraw capital from businesses
operating in mining, construction and tourism, which are unrelated to its
core function.
It will also reduce its stake in the Transport Investment and
Construction Consultant JSC to less than 20 per cent, in addition to lowering
its stake in the Railway Construction Corporation JSC and Investment and
Construction 3 and 6 to less than 30 per cent.
"After the completion of the equitisation process, VNR
will allow companies to bid for transportation businesses on high-demand
routes, creating a fair playing ground for all," the deputy director
general said.
Deputy minister of Transport Nguyen Ngoc Dong said VNR must
strengthen management capacity and keep operations and safety up to standard while
implementing the restructuring plan and capital withdrawal.
Regarding VNR's restructuring plan, the minister said the
corporation planned to carefully study customer demand and detect any
overweight cargo, as VNR managers would be held responsible for weight
violations found under their management.
The minister ordered VNR to ensure smooth transportation for
the upcoming New Year and Tet holiday.
The corporation asked the Ministry of Transport and Government
to come up with policies to address the number of surplus employees that
resulted from VNR's restructuring process.
Opposing proposal for direct Chinese RMB - VND trading
Economist Nguyen Minh Phong has suggested that
Dr. Phong pointed out
Other economists said it is essential to reconsider payment
methods with Chinese businesses. In fact, Chinese RMB is not really
credential enough and has not yet become a key currency in capital flows of
international financial institutions like WB, ADB and IMF, they noted.
Fitch Ratings ups Military Bank's outlook after ‘stable'
perfomance
Fitch Ratings has assigned a Long-Term Issuer Default Rating
(IDR) of ‘B' to Viet Nam's Military Commercial Joint Stock Bank (MB Bank),
declaring its outlook "stable".
Military Bank staff help customers. Fitch Ratings has assigned
the bank a "B" rating, citing a stable outlook. - VNS Photo Truong
Vi
The ratings reflect the bank's relatively strong financial
profile and risk management, compared to its local peers and its strong
franchise as one of the largest private commercial banks in
The ratings also incorporate the bank's above-industry-average
loan growth and its high reliance on corporate deposits.
MB Bank's reported asset quality metrics reflect a more conservative
loan classification methodology relative to its peers. At the end of June,
2014, the MB Bank reported a non-performing loan ratio of 3.11 per cent. The
bank's loan book is also well-diversified across industries and highly
collateralised. These credit strengths will help mitigate potential risks
emanating from the bank's rapid loan growth.
Fitch expects the MB Bank to maintain its capitalisation at
around current levels as its rapid asset growth is likely to be supported by
its high internal capital generation ability and the issuance of new capital,
if needed.
Funding and liquidity have also generally been well managed
with the loan-to-deposit ratio maintained below 70 per cent, supported by
strong deposit growth during recent years. In contrast to local peers, the
bank relies highly on corporate deposits (63 per cent of total deposits at
the end of June, 2014), in part driven by the MB Bank's capabilities in
corporate banking services.
The MB Bank's corporate deposits also include a higher share
of deposits from state-owned enterprises relative to other private commercial
banks. This and the high representation of the military on the bank's board
of directors reflect the bank's military background.
The bank also benefits from access to the branch network of
the Viet Nam Military Telecommunication Group (Viettel), the bank's largest
shareholder. Lower funding costs and less reliance on a retail branch network
have helped support the bank's net interest margins and overall
profitability, which are higher relative to its local peers.
Also according to Fitch, positive rating actions could arise
from an improvement in capitalisation, sustainable loan book growth, and
increased retail franchise, while maintaining its financial performance.
Upside rating potential may also arise from further improvements in the
operating environment for the banking industry and a strengthened regulatory
framework in
The ratings could be pressured if its loan quality
deteriorates significantly more than what the current rating level entails,
resulting in weakening of capitalisation.
A change in the relationship with Viettel, which would result
in a significant increase in funding and operating costs, will also be
negative for ratings. Negative rating actions might also result from event
risks, such as an aggressive takeover/merger, which might result in a
significantly weaker financial profile.
Amata eyes Binh Dinh industrial and urban complex
Thai industrial land developer Amata Corporation PLC is
planning to study a new project in Binh Dinh province, where
Binh Dinh People’s Committee said an Amata delegation visited
the province in December to study the investment environment. During a
meeting with provincial leaders, Amata representatives learned about the
expansion of Nhon Hoi Economic Zone, and the site for the planned for PTT’s
$22 billion Victory oil refinery and petrochemical plant with 400,000 barrel
per-day capacity and five million tonnes of petrochemical
products annually.
Although Amata is just in the initial stages of its enquiries,
the move shows that the Thai developer is planning to exploit future
opportunities in the province after PTT and its partners build one of the
world’s largest oil refinery and petrochemical integrated complexes in the
province.
The Vietnamese government last month agreed to incorporate
PTT’s project in the country’s national oil and gas master development plan.
Binh Dinh People’s Committee has also started calling for
investment into oil and petrochemical-related support industries. And if
Amata develops an industrial park in Binh Dinh, it will significantly improve
the province’s industrial infrastructure.
Ho Quoc Dung, Chairman of Binh Dinh People’s Committee, said
they were keen on Amata to invest, as it could help to attract even more
foreign investors to the province.
Amata is
In
The agreement is a new step in Amata’s decade-long plans to
implement an industrial park and township complex in Dong Nai.
The first phase of the project is a hi-tech industrial park
that is aimed at attracting manufacturing in biotech, research,
nanotechnology and pharmaceutical sectors. The second phase or service
township, will focus on building integrated facilities such as a housing
estate, hospital, school and logistics services. The third phase will be a
mega-township that will include shopping centres, food courts and recreation
areas. Amata is also preparing for a mammoth $2 billion development in the
Vietcombank posts impressive results by reducing NPLs
The Bank for Foreign Trade of Viet Nam's (Vietcombank's)
non-performing loans (NPLs) fell to 2.3 per cent at the end of last year,
from 3.09 per cent in Q2 of 2014.
Last year, Vietcombank also reported a good result in credit
growth, which was 18 per cent, higher than the 15 per cent targeted in early
2014. - Photo BizLIVE
Online newspaper VnEconomy quoted a report from the bank,
saying that Vietcombank successfully handled more than VND1.8 trillion
(US$84.5 million) in NPLs last year, doubling the amount seen in the previous
year.
Vietcombank's risk provision fund also reached VND4.535
trillion ($212.91 million) by the end of last year, which nearly equivalent
to the bank's total NPLs. The fund expanded by 29.2 per cent, compared with
2013.
The bank attributed its success in handling NPLs to economic
recovery, an improvement in firms' businesses, production performance,
effective policies, as well as timely support lent to for customers in terms
of access to credit.
Additionally, the bank's measures for handling NPLs included
direct participation of leaders and staff at the bank's headquarters that
also helped it report a high record for activity. Earlier, only the bank's
branches had taken part in handling NPLs.
The experience of handling NPLs contributed to the bank's
significant post-tax profits last year, which reached VND5.68 trillion
($266.66 million), higher than the previous year and exceeding the bank's
target set in early 2014.
Return on equity (ROE), return on assets (ROA) and the capital
adequacy ratio (CAR) of the bank also improved, touching roughly 10.5 per
cent, 0.9 per cent and 12 per cent, respectively.
Last year, Vietcombank also reported a good result in credit
growth, which was 18 per cent, higher than the 15 per cent targeted in early
2014.
The bank's deposits also surged by about 26 per cent last
year, despite an interest rate cut. The bank consecutively reduced deposit
interest rates and implemented the lowest rate in the banking system last
year.
Shares of Vietcombank (VCB) jumped 37 per cent last year,
closing at VND31,900 ($1.497) per share, the highest price level among banks
listed on the stock exchange.
Ice-to-fish ratio rule delayed on pressure
The rules governing the ratios of ice to fish and moisture
content in tra (Pangasius) fillets for export will take effect early next
year, instead of January 1 this year, according to a source from the Ministry
of Agriculture and Rural Development.
Speaking at a National Assembly Economic Committee session on
the restructuring of the agricultural sector held on December 31, Minister of
Agriculture and Rural Development Cao Duc Phat said the regulations on the
ratios of ice to fish and water content provided in Government Decree
36/2014/ND-CP did not come into force early this year as earlier planned,
according to Hai Quan (customs) newspaper.
The delay comes after tra fish processors said they would shut
down their factories if they were compelled to comply with the ice-to-fish
ratio of 10% and moisture content of 83% as specified by the degree on
farming, processing and export of tra fish.
The rescheduling gives tra fish processors more time to
renegotiate pricing with their customers. Tra exporters said the new rules
would lead production costs to rise, which will in turn require processors to
mark up their products.
Doan Toi, general director of Nam Viet Joint Stock Company,
said customers of his firm had not agreed on higher prices although he
repeatedly explained the quality of fish would be improved thanks to the new
regulations on the ratios of ice to fish and water content.
Nguyen Van Dao, general director of Godaco Seafood Joint Stock
Company (GODACO Seafood), said the amount of tra fish fillets containing 10%
ice and 83% water content accounts for only 10% of the total volume consumed
on global markets a year.
“Therefore, if we followed the new requirements, we could not
sell our products on the world market, hence factory shutdowns,” he said.
Southern Fishery Industries Co. Ltd (SOUTH VINA) earlier wrote
to the Vietnam Association of Seafood Exporters and Producers (VASEP) saying
it would have no choice but to shut down its factory if the rules were
enforced early this year.
But industry experts have thrown their weight behind the
requirements for ice and water content, saying they would build confidence in
the quality of tra fish and improve the branding of the fish.
Equitized SOEs to face sanctions over listing delays
The Ministry of Finance will draft regulations aimed at
monitoring State-owned enterprises (SOEs) that have gone public but delayed
listing on the local stock exchanges.
Speaking to the media, Dang Quyet Tien, deputy head of the
ministry’s Corporate Finance Department, said the ministry would issue
regulations forcing all eligible equitized businesses to list on the stock
exchanges.
Many firms have been profitable for three consecutive years
and set specific earnings targets and business strategies in their five-year
business plans after equitization, so they are eligible to list but have
delayed it.
Meanwhile, many equitized SOEs have been trading their shares
on the Unlisted Public Company Market (UPCoM) for more than two years, but
they have shown little sign of moving to the stock exchanges. UPCoM is the
trading floor of stocks and convertible bonds of public companies which have
not been listed on the exchanges.
The Government and the Finance Ministry want to boost the
listing of those enterprises. Therefore, the ministry wants eligible
equitized SOEs to skip trading their shares on the UpCoM to go straight to
the stock exchanges to promote their transparency and efficient use of State
capital.
On the other hand, the companies active on the UpCoM that do not
meet requirements for listing on the bourses will be reviewed and inspected.
“The Finance Ministry will force rather than encourage equitized SOEs to list
on the stock exchanges,” said Tien.
Imports, exports expected to grow strongly
The HCMC Customs Department said imports and exports will pick
up sharply as a result of the free trade agreements (FTA)
Speaking to the Daily, a representative of the department said
imports and exports under the FTAs account for 65% of the city’s total,
equivalent to around US$23 billion.
As the tax rates on many products imported into Vietnam were
exempted and cut from early this year, the city will see import and export
tax collections edging down by around VND1 trillion this year.
Besides, under the revised tax law taking effect early this
year, fertilizers, animal feed and agricultural machinery are no longer
subject to a special consumption tax of 5%. This means that the city’s budget
will lose an additional VND3.5 trillion, with VND600 billion, VND900 billion
and VND2 trillion from the three groups of items respectively.
Meanwhile, as for fuels, impact will not be great as tax
collections from crude oil exports have been badly hit but the tax on fuel
imports has increased significantly.
There are other sources of revenue to offset the tax
shortfalls. According to the source, imports and exports of HCMC started to
grow considerably two months ago and the increase may continue this year when
the economy is projected to fare better. The better performance of the local
economy will bring suspended enterprises back to life and encourage consumers
to spend, particularly on luxury items with high import tariffs like autos,
liquors and cosmetics.
If completely built-up vehicle imports into HCMC continue
surging this year at the same rate as last year, at 200%, the city will be
able to collect VND10 trillion in import tariff.
This year, the HCMC Customs Department is assigned to collect
VND90 trillion from imports and exports, equivalent to over 35% of total
collections of the customs sector. Of the amount, VND25.2 trillion is from
import and export tax collections and VND64.8 trillion from value-added tax.
The HCMC Customs Department collected more than VND87.85
trillion last year and the target for this year is not much higher.
“Therefore, it is likely that the department will be able to
beat the target,” he said.
Last year, the department was required to collect VND74.8
trillion and the collected amount exceeded the target by 17.5%. With
this amount, the city can be allowed to keep VND8.4 trillion for its
spending.
Power supply for south seen sufficient in dry season
Vietnam Electricity Group (EVN) will accelerate the
development of multiple power projects to meet the power demand of the
southern region in the dry season in which hydropower generation normally
inches down as river water levels sink.
Some projects to be put into operation in the coming time is
Duyen Hai 1 thermal power plant, the second generator of O Mon 1 thermal
power plant, and Dong Nai 5 hydropower plant, according to Southern Power
Corporation under EVN.
In the past, power supply in the southern region was low and
briefly ran short. Therefore, the forthcoming power projects will help add
additional supply for the region.
According to the corporation, the main power supplier of 21
southern provinces and cities, the region’s demand is estimated at 48.5
billion kWh this year, up 9.5% against last year.
In addition to such major power projects, EVN is preparing to
implement many power network projects for the region this year. They include
a VND667 billion project to provide power for shrimp farmers in Ca Mau, Bac Lieu,
Soc Trang and Tra Vinh, and dragon fruit farmers in Long An Province, a
VND253 billion power network upgrade on Phu Quy Island, a VND220-billion
network upgrade on Phu Quoc Island and a VND1.35 trillion power supply
project on eight islands off Kien Giang Province.
Power consumption nationwide climbed 12.3% to nearly 128
billion kWh last year, with consumption in the south growing 9.41% compared
to 11.12% in the central region and 15.25% in the north.
According to EVN chairman Hoang Quoc Vuong, power consumption
reflects a continued pickup of manufacturing and trade activity.
Vuong said at a recent meeting that EVN had set aside over
VND125 trillion for power generation development projects this year and the
following years.
With GDP growth estimated at 6.2% this year, Vuong said power
consumption could pick up 10.4% to around 142 billion kWh.
To ensure sufficient power supply for the country’s
socioeconomic development demand, EVN has planned to develop projects with a
combined investment of over VND127.5 trillion this year.
From now to 2020, EVN will finish projects to provide power
for all rural communes nationwide at a total cost of over 30 trillion.
Source:
VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
|
Thứ Ba, 6 tháng 1, 2015
Đăng ký:
Đăng Nhận xét (Atom)
Không có nhận xét nào:
Đăng nhận xét