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BUSINESS IN BRIEF 21/5
Inflow
of cheap Chinese steel raises concerns
The
European Union's anti-dumping duty on stainless steel cold-rolled sheet from
mainland
Local
experts fear that the EU's decision, made in late March, will affect domestic
firms who will have to compete with Chinese steel manufacturers.
Vietnam
News Agency quoted the Ministry of Industry and Trade's Viet Nam Competition
Authority (VCA) as saying that tariffs ranging from 24.3 per cent to 25.2 per
cent and from 10.9 per cent to12 per cent were levied on Chinese and
Taiwanese steel, respectively.
Pham
Chau Giang from the VCA said that Chinese producers were likely to divert a
part of their steel made for exports to the Vietnamese market, where the
anti-dumping duty on Chinese steel was lower than that in the EU.
Chinese
manufacturers might also build steel factories in
Nguyen
Van Sua, Vice chairman of the Viet Nam Steel Association, says such a
scenario was not impossible. He said that the EU's anti-dumping taxes would
result in a steel surplus in
In order
to block the inflow of cheap steel, Sua suggested that authorities concerned
should strengthen the supervision of the quality of both domestically-made as
well as imported steel.
He noted
that his association would closely follow information from local steel
producers, help control the prices of cold-rolled stainless steel products
from
Giang
said that the VCA would also closely coordinate with the General Department
of Customs and the ministry's Import-Export Department to monitor this issue
and draw effective measures in the near future.
Banks
need more funds for non-performing loans
Banks
will need more provisional funds to support the risk of non-performing loans
(NPLs) in accordance with national requirements for controlling bad debts,
reported Dau tu (Viet Nam Investment Review) online.
Asia
Commercial Bank General Director Do Minh Toan said his bank targeted credit
growth of 13-15 per cent and a bad debt ratio of below 3 per cent this year
and had arranged a provisional fund of some VND2 trillion (US$95.24 million)
for 2015.
This
year, the bank planned to sell VND1 trillion ($47.62 million) of NPLs to the
Viet Nam Asset Management Company (VAMC) and handle VND1.6 trillion ($76.19
million) in bad debts by itself, he added.
Sai Gon
Joint Stock Commercial Bank reported that it had sold VND11.4 trillion
($542.86 million) in NPLs to the VAMC over the last three years, reducing its
bad loan ratio to 0.5 per cent by the end of last year.
The bank
said it would have to continue to deal with NPLs to improve its financial
situation, and provisional funds were likely to be increased.
Viet Nam
International Bank also said it would establish a provisional fund of more
than VND2 trillion ($95.24 million), though it had held its bad debt ratio at
2.51 per cent last year.
The bank
expected its deposits to grow by 8 per cent to VND53 trillion ($2.52 billion)
and outstanding loans to increase by 11 per cent to VND42.38 trillion ($2.02
billion) this year.
It
planned to resolve some VND3.84 trillion ($182.86 million) in NPLs,
predicting provisional funds would rise sharply, with bad debts likely to
climb by VND300 billion ($14.28 million) in 2015.
Eximbank
leaders said establishing provisional funds was a prerequisite for
guaranteeing operational security; hence, it was willing to sacrifice profits
to provisions. Last year, a provisional fund amounting to VND3 trillion
($142.86 million) resulted in a pre-tax profit as low as VND68 billion ($3.24
million) for the bank.
The bank
planned to sell some VND1 trillion worth of bad debts to the VAMC this year,
they added.
The
State Bank of Viet Nam (SBV) has urged credit institutions to step up bad
debt resolution since January in a bid to reduce the overall NPL ratio in the
domestic banking system to less than 3 per cent in 2015, following Government
orders.
The
lenders have to resolve by June 30 at least 60 per cent of the total number
of bad loans they are supposed to handle in 2015. They have to transfer at
least 75 per cent of the total debts they will register for sale to VAMC this
year, within the same deadline. The deadline for selling all their NPLs is
September 30.
The SBV
has allowed the VAMC to issue special bonds, worth up to VND80 trillion
($3.76 billion), to acquire bad loans from credit institutions this year. The
central bank also required lenders to establish yearly provisional funds
amounting to 20 per cent of the value of the bonds they had bought from the
company.
Tran Du
Lich, a member of the National Financial and Monetary Policy Advisory
Council, said selling NPLs to the VAMC was a good way for banks to clean up
their accounting balances, but the requirement for provisions would create
significant pressure for them.
Ministry
works on farm export issues
The
Ministry of Industry and Trade has proposed that the Government should
establish a working group to resolve difficulties faced by enterprises in
consuming and exporting farming and fishery products.
Deputy
Minister of Industry and Trade Tran Tuan Anh said the group would have
regular meetings with enterprises and associations of the farming and fishery
sector to produce timely solutions for difficulties faced by the enterprises
as well as for meeting the needs of the market, reported the Nong thon ngay
nay (Countrysite Today) newspaper.
The
group would ensure efficiency in exporting these products to ensure the
country reaches its export target for 2015, Anh said.
The
trade offices of
Tran
Thanh Hai, deputy director of the ministry's Export-Import Department, said
the group would make note of export problems to resolve them as quickly as
possible, including the problem of fruit trucks being held up at border gates
and the problem of goods receiving warnings or being returned or seized by
import markets for not meeting quality standards.
Pham Vu
Ha, general secretary of the Viet Nam Cassava Association, said farming
products have stalled at border gates because the farmers and enterprises had
no knowledge about the import markets, and the policies on support for
enterprises from the production to consumption stages were vague.
Ha fears
the group would be unable to resolve many of the more complicated problems in
consuming and exporting farming and fishery products because of the numerous
challenges involved in exporting those products.
For
instance, trade activities at border gates involve customs officers, border
police and local authorities along the border, he said.
Nguyen
Hoai
Economic
expert Pham Tat Thang suggested that the group should cooperate with the
relevant sectors in managing farming production to meet the market demand.
US
is
Vietnam’s
exports to the US market in the first four months of the year surged to
US$9.93 billion, up 15.7% compared to the same period last year, according to
the statistics from the General Department of Vietnam Customs.
The
In the
reviewed period,
Meanwhile,
The
Vietnamese government will continue to apply price ceilings on formula for
babies under 6 years old until December 31 next year, as local prices remain
higher than those of many countries in
The
limits will be unchanged from those imposed on June 1, the Department of
Price Management under the finance ministry announced at a recent press
conference.
Last
year the ministry introduced ceilings on 25 brands of Abbott, Friesland Campina,
Mead Johnson, Nestle, and
The
ceilings are set between VND167,000 and VND610,000 (US$7.6-28) per can,
depending on the weight.
Retail
prices are not allowed to be more than 15% higher.
Thanks
to the "stabilization initiative," prices of 708 formula brands
have been reduced by 0.1-34% over the past year, according to the department.
A
government decree issued in March banned advertisements on foods and dairy
products for babies under 2 years old. The department said this policy also
brought prices down, by between 1 and 5.5%.
Regardless
of the government's efforts to rein in local formula prices in recent years,
they are still higher than similar products in most of
A survey
by the economic department under the foreign ministry showed that in
Nguyen
Anh Tuan, director of the price management department, said
He said
local businesses are "easily manipulated" by their foreign partners
who control supplies of both materials and finished products.
New
e-commerce website launched
PeaceSoft
Group, the leading group for e-commerce and payments in Vietnam, in
partnership with WeShop Global Group (Singapore) and Interpark Group (the
Republic of Korea), has launched the first multinational & cross-border
retail platform in Vietnam and South East Asia at www.weshop.com.vn.
Consumers
are now able to shop for high quality products from the
WeShop
provides a complete cross-border shopping process, allowing Vietnamese
consumers to experience online shopping from foreign websites as simply and
easily as from local sites.
WeShop.com.vn
currently supplies more than 200 million diversified products from large
brands in the United States, like Amazon, 6PM, Forever21, TopShop, Disney and
ToysRus.
RoK
firm invests in wireless equipment in Ha Nam
The
The
provincial People’s Committee on May 18 granted an investment licence to the
group.
Located
in the Dong Van 2 industrial park on an plot of over 120,000 square metres,
the factory specialises in manufacturing wireless aerials for smart phones
and radio frequency filters, with a capacity of producing 300,000 products
per year.
The
plant will start production in nine months, and is expected to gross about 70
million USD in revenue each year, pay 1 million USD in corporate income tax and
generate jobs for nearly 500 workers.
President
of Ace, Gwang Young Koo, revealed his ambition of turning the factory into
the third biggest earner of the group with annual revenue of 1 billion USD.
The plant will serve as a place for technology transfer and high-quality
human resources training, he added.
Secretary
of the provincial Party Committee Mai Tien Dung said the project is expected
to attract hi-tech, manufacturing and small-and medium-sized enterprises.
Local
authorities pledged to facilitate business operation and hope more RoK firms
will invest in the province, he added.-
Lychee
productivity likely to hit 200,000 tonnes
The
total harvested output of lychees in the largest lychee growing provinces of
Bac Giang and Hai Duong is likely to hit 200,000 tonnes in the 2015 crop,
according to the Ministry of Agriculture and Rural Development (MARD).
Of the
total amount, 60 percent or 120,000 tonnes will be consumed domestically
while the remaining 80,000 tonnes will be left for exports.
The
market for fresh lychees mainly covers the northern and central regions, such
as
For
export markets, besides the traditional Chinese market, Vietnamese lychee
will penetrate into
The
Plant Protection Department under the ministry has said that Vietnamese fresh
lychees have received a “welcome signal” from the Australian market.
Accordingly, lychee growers and processing enterprises need to follow
specific technical requirements such as quarantine and packaging standards.
Vietnamese,
Lao localities boost trade union links
Trade
unionists from
The
event focused on measures to make trade union activities more effective,
while highlighting the need to popularise legal regulations among workers in
private and foreign-invested enterprises.
Ways in
which to intensify direct dialogue between employees and employers were also
on the agenda.
Participants
concurred that trade unions should work to ensure t he interests and rights
of both labourers and their companies.
Chairman
of Houaphan province’s Trade Union, Chuheu, called on businesses operating in
Thanh Hoa to funnel investment in the Lao locality, helping generate more
jobs for Lao locals.
He also
asked for the Vietnamese locality’s support in training Houaphan’s trade
unionists.
The two
sides agreed to increase their connections via delegation exchanges and
sharing experience, deepening the Vietnam-Laos time-honoured friendship and
special solidarity.
Quang
Ninh grants investment license for new highway
Authorities
in the
The 60
kilometre, four-lane highway will be built using the BOT
(build-operate-transfer) model with an investment capital of 14 trillion VND
(644 million USD). It will connect
The new
highway is also expected to reduce the volume of traffic on National Road 18,
which itself will have a section upgraded, and shorten travelling time from
Hanoi to Ha Long city and Van Don district’s Economic Zone. This is expected
to encourage further investment activities and socio-economic development in
Quang Ninh and key northern areas.
Construction
on the project is scheduled to be completed over 29 months.
Concerted
efforts have been made by
In his
opening remarks, Vu Ngoc Anh, Deputy Director General of Vietnam Customs,
said that the agreement contains provisions for expediting the movement,
release and clearance of goods.
He
highlighted that it also sets out measures for effective cooperation between
customs departments and other appropriate authorities on trade facilitation
and customs compliance issues.
Nguyen
Toan, head of Vietnam Customs’ International Cooperation Department,
highlighted that
The
country is preparing to establish a national committee on trade facilitation
or an equivalent mechanism in line with the TFA’s requirements.
Relevant
ministries are fulfilling documents related to Category B and C to submit for
the Government’s approval and for the records of the WTO.
Categories
B and C comprise of 23 provisions about things such as information
announcements, facilitating trade conditions for prioritised enterprises,
online payments and risk management.
The TFA
will help reduce trade costs while giving opportunities for governments to
create jobs and increase income for their residents, Toan said, underscoring
that it also helps enterprises shoot up their competitiveness, boost
production and enlarge their markets.
At the
event, Peter Bennett, advisor on trade facilitation from the USAID Governance
for Inclusive Growth (GIG) programme said that USAID will give guidance for
developing and underdeveloped countries to evaluate technical support demands
and build capacity.
According
to the Organisation for Economic Cooperation and Development (OECD), the ATF
is expected to reduce trade expenditure by 14.5 percent for low-income countries,
15 percent for lower middle-income countries and 13.2 percent for upper
middle-income countries.
Vietjet
Air increases Ho Chi Minh City-Taipei flights
Vietjet
Air will increase the number of flights between
The
low-cost carrier will offer ticket fares starting at 210,000 VND (10 USD) for
return flights.
Flights
will depart from
Customers
can purchase tickets through its website www.vietjetair.com,
www.facebook.com/vietjetairvietnam, and ticket offices nationwide through
various payment methods.
The
company recently received its 24th A320 plane and will be providing an
additional 1,500 flights with 270,000 discounted fares to meet the increased
demand for travel in the summer.
Quang
Ninh improves infrastructure to shake up tourism
Northern
Quang Ninh province has been enjoying an increasing number of visitors over
the years, yet there’s still work to be done to further boost the length of
their stay in the coastal province, according to Le Quang Tung, Vice Chairman
of the provincial People’s Committee.
The
improvement of infrastructure and high-quality services are key to achieving
this goal, Tung noted.
The
locality has opened its door for investment in a number of key projects
improving local transportation systems, accommodation, healthcare services,
education, and the environment.
Highlights
among them are the 284.6 ha Van
Thousands
of billions of
According
to Hoang Duc Hung, General Director of the Viglacera Van Hai Joint Stock
Company - the operator of Van Hai Resort in Quan Lan Island - access to the
national grid and a reduction in room rates have allowed more and more
travellers to visit the island and stay for longer.
Furthermore,
Quang Ninh has established partnerships with foreign provinces, including
Luang Prabang in
The
province expects to welcome 8 million tourist arrivals this year, 3 million
of whom will come from overseas, earning 8 trillion VND (367.1 million USD).
It
expects to receive around 10.5 million holidaymakers in 2020, generating 30
trillion VND in revenue and creating 62,000 jobs for the local people.
Vietnamese,
Lao localities boost trade union links
Trade
unionists from
The
event focused on measures to make trade union activities more effective,
while highlighting the need to popularise legal regulations among workers in
private and foreign-invested enterprises.
Ways in
which to intensify direct dialogue between employees and employers were also
on the agenda.
Participants
concurred that trade unions should work to ensure t he interests and rights
of both labourers and their companies.
Chairman
of Houaphan province’s Trade Union, Chuheu, called on businesses operating in
Thanh Hoa to funnel investment in the Lao locality, helping generate more
jobs for Lao locals.
He also
asked for the Vietnamese locality’s support in training Houaphan’s trade
unionists.
The two
sides agreed to increase their connections via delegation exchanges and
sharing experience, deepening the Vietnam-Laos time-honoured friendship and
special solidarity.
During
the four months leading up to May there were 14 export markets that exceeded
the US$1 billion benchmark— four ASEAN markets, five non ASEAN markets in
Asia, three in Europe, the US and Australia.
I’m
struck by how diversified the products are, said an unnamed representative of
the department.
We’re
seeing manufacturing starting to expand and more products being made by
foreign invested companies in
In the
January-April period, the exports to these 14 markets alone reached nearly
US$35.2 billion and accounted for 70.8% of the nation’s total exports, which
jumped 6.9% on-year.
Sugarcane
industry needs to slash costs
Minister
of Agriculture and Rural Development Cao Duc Phat made the statement
yesterday at a meeting in Ha Noi to discuss measures to raise the
competitiveness of the country's sugar industry.
According
to calculations, the cost of sugarcane production in
Sugar
firms are certain to face challenges such as high production costs,
inadequate support policies for farmers, unstable business performance and
weak co-operation among businesses.
The
current production costs of Vietnamese sugar, averaging about VND12 million
(US$550) per tonne, is higher than many countries, including
Minister
Phat said it was essential for the industry to focus on developing new sugar
seeds with higher quality and quantity, and promote collaboration between
production and consumption while developing support products to increase
added value.
"We
need new varieties of sugarcane seeds for farmers, and any organisations or
individuals who know of such seeds can contact the ministry. We do not
necessarily have to wait for seeds from the Sugarcane Research
Institute," he said, adding that 50 per cent of the current seed
varieties were from 15 years ago.
He also
called on factories to think about building material zones and applying new
technology in cultivation as well as production.
The
sugar industry should also take advantage of its own by-products, such as
producing fertiliser from sugarcane waste.
Illegally
imported sugar was another problem for the industry, with an estimated
400,000-500,000 tonnes of sugar imported each year, so tighter control was
needed, participants at the meeting said.
Currently
Move
to rid ports of old rubber tyres
The
Ministry of Finance has proposed the Ministry of Industry and Trade to
consider taking used rubber tyres off the list of goods for temporary import
and re-export permits.
The
intention is to limit stockpiles at ports and check the entry of shipping
waste to
According
to the Customs Department, about 2,440 containers of used tyres are currently
left at
The main
reason why inventories are accumulating at seaports is that many goods owners
do not make customs declaration of import consignments and some of them even
refuse to receive their goods.
Goods
owners mostly import goods for re-exporting them to third countries,
especially
As
imports fail to be re-exported, they are disowned and left at ports for an
indefinite period of time.
According
to the MoIT's analysis, although used rubber tyres are considered as
non-hazardous waste under the
In
addition, thousands of containers carrying large, heavyweight used tyres are
lying unclaimed at seaports across the country, limiting storage area and
adding to the expenses of preserving goods, besides creating difficulties in
inventory management.
It will
take time to have these goods examined by appropriate agencies so that they
can be classified and provided regulated licences for liquidating them.
Moreover,
destructing these goods can seriously affect the environment and pose health
risks.
The
Customs Department and relevant agencies are trying to deal with the
inventory of these goods.
Start-up
branding vital to success
Branding
is one of the things start-ups should plan for before launch, a conference
heard in
Building
a brand comprised many steps and start-ups needed to research the market they
were about to enter and know their competition to come up with unique and
distinctive branding measures, Dang Hoai An, marketing director of Microsoft
MDS Viet Nam, said.
Startups
need to create "interesting story to tell". They need to think
about how to make people believe their products better but more reasonable
prices than existing products in the market, she said.
Le Trung
Nam, general director of Hoa Thien Phu Pharmaceutical Joint Stock company,
said in 2009 his group had started operating with a capital of just VND200
million (US$9,208) and made a nutritional product to treat anorexia in
children.
At that
time there had been a myriad of nutritional products for children from large
companies, but thanks to his company's awareness of customers' psychology and
focus on the correct segment, it had been successful.
Today it
was one of the leading pharmaceutical companies in manufacturing and
distributing traditional medicines and functional foods.
Branding
was an unceasing and long-term process for enterprises, he said.
The role
of humans in building brands was extremely important, even more important
than capital, he stressed.
To be a
successful start-up, "You need to have three things: a unique idea,
specific and detailed action plans, and a way to approach investors
actively."
Dinh Van
Loc, chairman of Onnet Joint Stock Company, who began his business with an
initial capital of less than VND100 million ($4,606) and specialises in
internet marketing, said clever usage of internet marketing tools helped
promote brands.
Organised
by the Business Start-up Support Centre in collaboration with the HCM City
Young Businesspeople Association, the conference attracted more than 500
university students from the city.
It is
part of a series of activities related to the 2015 Start-up Wheel
competition, which aims to be a forum for young people to present innovative
business start-up ideas and business strategies and mobilise funds for
projects.
Ministry
takes control of statistics for non-State groups
The
Ministry of Planning and Investment in a draft amendment to the Law on
Statistics, for the first time, regulated the statistics operations of non
State-owned organisations, aiming to create a sound legal framework for the
statistics operations outside the State sector.
Non
State-owned organis-ations could continue to collect and analyse data and provide
forecasts to serve research, production and business activities, along with
other legal purposes, the ministry added. Private statistics organ-isations
would be allowed to provide related services including training, computing
and con-sultancy. Expenses for statistical activities of private
organisations must be covered by themselves, the draft said.
The
draft also suggested several regulations to avoid differences in statistics
presented by various government components.
The aim
is to ensure that statistics presented by ministries and management agencies
are not vastly different from that of organisations under the central
statistics office.
According
to the draft amendment, ministries and management agencies must send their
statistical figures to the central statistics office for evaluation,
including statistical contents, the method of calculations, and sources of
data.
Duration
for evaluating statistics will be three working days for initial estimated
figures, seven working days for preliminary figures, and 15 working days for
official figures.
The
Ministry of Planning and Investment admitted that the statistical figures of
the central statistics office and management agencies for same indicators
have been different in several cases, causing failures in gauging real
economic situations and creating difficulties in analysis and forecast.
This
difference in statistics has been caused by the management agencies of
various sectors submitting inadequate and inaccurate information reports to
statistics offices, violating the impartiality and objectivity of statistics.
The
draft law also clarifies on indicators and a data system for the statistics
of ministries and management agencies to prevent overlaps.
The
draft law will be discussed at the ninth meeting of the National Assembly
that is scheduled to start on May 20 and end on June 25.
Fuel
stabilisation fund hits $129m during first quarter
The fuel
price stabilisation fund balance rose to nearly VND2.8 trillion (US$129
million) during the first quarter of this year.
The
finance ministry on Tuesday announced that the fund balance as of December
31, 2014, was VND4.05 trillion ($184 million), and fuel trading firms
extracted an estimated VND3.3 trillion ($152 million) from the fund during
the three-month period.
While
the Viet Nam National Petroleum Group (Petrolimex) posted the highest balance
of VND1.92 trillion ($88.4 million) in the first quarter, PetroVietnam Oil
Corporation (PVOil) followed with VND285 billion ($13.1 million).
Sai Gon
Petro Company was estimated to have a balance of VND254.7 billion ($11.7
million) in the first three months of the year.
The
ministry's Price Management Department said the average world fuel price in
April rose 2.19 to 13.94 per cent over the previous month. The price of
petroleum RON 92 rose 3.88 per cent, diesel 2.29 per cent, oil 2.96 per cent,
mazut 6.37 per cent, and crude oil 13.94 per cent.
A litre
of petrol increased by VND1,950, following a joint decision by the Ministry
of Finance and the Ministry of Industry and Trade on May 5.
The
decision pushed the price of RON 92 petrol up to VND19,230 per litre.
The
prices of diesel and mazut remained unchanged, while a litre of kerosene was
cut by VND258.
The two
ministries also asked fuel traders to keep the stabilisation fund stable at
VND300 per litre for petroleum and zero for biofuel E5.
They
decided to allow using the stabilisation fund while increasing petroleum
retail price to ensure that it benefits the government, businesses, and
consumers.
More
backing sought for industrial infrastructure
The
Ministry of Industry and Trade will propose to the government to offer more
incentives to attract investments for infrastructure development in
industrial clusters nationwide.
This was
decided at a conference held by the ministry's Department of Local Industry
in central Khanh Hoa province's Nha Trang City yesterday to revise the
five-year implementation of the Prime Minister's Decision 105/2009/QD-TTg on
the management of industrial clusters and raise development plan for 2016-20
period.
Deputy
Minister Hoang Quoc Vuong said that local authorities still faced
difficulties while planning and developing industrial clusters.
Experts
at the conference pointed out that support in capital was needed to encourage
companies. In addition, problems related to environmental protection
management, especially waste water treatment, at industrial clusters must be
tackled, together with a comprehensive legal framework to enhance the
management of industrial clusters.
Statistics
show that during 2010-15, the State budget allocated VND674 billion (US$31.2
million) to support investments in industrial clusters, especially in the
provinces that have difficult economic conditions.
Some 660
industrial clusters with detailed plans were approved to come up on a
combined area of 23,000ha across the country. Of them, infrastructure
development projects in 369 industrial clusters were approved with a total
capital demand of VND79 trillion ($3.65 billion).
Rising
provisional funds slash VN banks' profits
Increasing
provisional funds whittled away significant profits of two major banks in the
first quarter of this year.
The Bank
for Foreign Trade of Viet Nam (Vietcombank) posted a pre-tax profit of about
VND1.46 trillion (US$69.52 million), down 3 per cent over the same period
last year. It attributed the decline to the establishment of a VND1.52
trillion ($72.38 million) provision, which rose by nearly 27 per cent
year-on-year.
Also,
the bank's bad debt ratio increased to 2.97 per cent at the end of Q1, from
the 2.3 per cent recorded at end-2014, with outstanding loans growing 2.3 per
cent during the quarter.
The bank
reported significant growth in most business norms, with net revenues
reaching nearly VND3.50 trillion ($166.67 million) in Q1, up 20 per cent over
the same period last year.
Services
were responsible for revenues of VND337 billion ($16.05 million), up 23.4 per
cent, while foreign currency trading generated VND471 billion ($22.43
million), an increase of 6.6 per cent.
But
securities investments showed less profitability, bringing in only VND44
billion ($2.10 million) for the bank, a decline of 75 per cent year-on-year.
Vietcombank's
total asset value also contracted by 6.45 per cent, reaching about VND540
trillion ($25.71 billion) during Q1.
Meanwhile,
the Viet Nam Bank for Industry and Trade (VietinBank) posted a total business
profit of VND3.07 trillion ($146.19 million) in the first quarter, up nearly
24 per cent over the same period last year.
However,
with a provisional fund increasing by 1.5 times to VND1.51 trillion ($71.90
million), its pre-tax profits grew by only 7.3 per cent year-on-year at
VND1.56 trillion ($14.28 million).
Also,
profits from services declined 13 per cent to VND271 billion ($12.90
million), and profits from foreign currency trading dropped 70 per cent to
VND37 billion ($1.76 million).
The bank
also suffered a loss of VND43 billion ($2.05 million) from securities
investments, while its capital contribution activities saw profits of only
VND14 billion, or two-thirds of those in the same period last year.
Further,
VietinBank reported a 2.3 per cent decline in total assets, although deposits
at this bank grew 1 per cent and lending expanded 2.32 per cent during Q1.
Dau Tu
(Vietnam Investment Review) reported earlier this month that banks would need
more provisional funds to support the risk of non-performing loans (NPLs), in
accordance with national requirements for controlling bad debts.
Several
lenders, including Asia Commercial Bank, Saigon Joint Stock Commercial Bank
and Vietnam International Bank, as well as Eximbank, have affirmed plans to
accelerate such provisions.
Meanwhile,
since January the State Bank of
New
hydropower plant begins operating
Trung
Nam Group has begun operation of its Dong Nai II Hydropower Plant in
He said
the company invested VND3.5 trillion (US$162 million) to build the 70MW plant
in the upper part of
Established
in 2004, Trung Nam Group has 19 ongoing projects around the country including
the Trung Nam Ninh Thuan wind power plant, Krong No Hydropower 2 and 3 in
Vinh
Phuc promotion yields progress
Promotion
and supportive investment initiatives in the
The
province's competitiveness index (PCI) ranked sixth among 63 provinces and
cities nationwide in 2014, climbing 20 spots in the year.
By the
end of the first quarter of 2015, the province continued its growth, counting
193 foreign direct investment projects with US$3.23 billion of investment,
and 586 domestic-invested projects with a combined investment capital of $2
billion.
Citi
Citi
“These
awards reflect Citi’s continued commitment to delivering best in class
solutions to our clients in
Citi
Vietnam last year unveiled advanced technology platforms and e-solutions,
CitiDirect BE – the next generation online banking platform for institutions
and Citi ® Supplier Finance – a global pioneering supply chain finance
initiative targeting large corporations and their preferred suppliers.
The
introduction of these platforms and winning the prestigious awards has
affirmed Citi’s leading position in seamless innovation and unique products
in the market.
Citi was
also recognised as the Best Transaction Bank in Asia as well as Best
Liquidity management bank and Best ECA bank in
The
Asset Triple A Awards are
The
Asset Awards uses stringent methodology, combined with the rigorous approach
to the selection of the winners, and are adjudicated by The Asset’s Board of
Editors who collectively have several decades’ worth of evaluating industry
awards in
MSN
sets $2 billion revenue target for 2015
Masan
Group Corporation (MSN), one of
Masan
Group is one of the most powerful food stuff companies in the local market.
During
the period, the group's revenue reached VND3.584 trillion ($164.4 million),
with an EBITDA (Earnings before Interest, Depreciation and Tax) of VND930
billion ($42.66 million) and VND57 billion ($2.6 million) net profit after
tax.
In
comparison with the same period last year, the group said its net revenue,
EBITDA, and net profit were up 31.8 per cent, 117 per cent, and 150 per cent,
respectively.
The firm
has set its target revenue for this year at $2 billion.
According
to the group, its subsidiary Masan Consumer earned VND2.627 trillion ($120.5
million) during Q1 this year, up 15.3 per cent over the same quarter last
year, driven by growth across seasonings, convenience foods, and beverages.
Meanwhile,
acting as a new force to drive growth in a consumption-related sector was the
acquisition and establishment of Masan Nutri-Science last April, which was seen
as a leading platform to serve
Masan
Group has also acquired Sam Kim Company, which holds 52 per cent and 70 per
cent equity interests in Vietnam French Cattle Feed JSC and Agro Nutrition
Company JSC, respectively. The group expects to draw $1 billion in revenue
from the industry this year.
At the
same time, the group has reported that Nui Phao mine produces approximately
20 per cent of vonframe globally.
Vonframe
is one of the most valuable metals required in many industries, such as
steel, petroleum, and electrical as well as electronic applications. It is
also used for making filaments in light bulbs, glass, ceramics, and paint.
Nui Phao
mine, located in northern Thai Nguyen province, produces high-quality
products from four minerals – vonframe, fluorspar, bismuth, and copper –
which are sold to leading customers across North America, Europe, and
The
group is considering listing Masan Resources in the second half of 2015 to
provide greater strategic flexibility and the right shareholder base for
long-term growth.
On May
18, each share of MSN closed at VND78,000 ($3.5) on the HCM City Stock
Exchange.
Source : VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
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Thứ Năm, 21 tháng 5, 2015
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