|
BUSINESS IN BRIEF 12/7
Rice
exports edge down in 1st half
The Viet
Nam Food Association said this represented a year-on-year decrease of 9.6 per
cent in volume and 12.71 per cent in value.
Asian
and African countries were the main buyers, with
VFA
chairman Huynh The Nang said the reasons for the fall in exports were not
new: abundant supply, the appearance of new exporters, and intense
competition.
"There
is severe competition in terms of prices," he told Viet Nam News.
"Currently
we can not compete with
But
However,
exports are expected to pick up in the second half, he said.
Nang
said there were opportunities to boost exports this year.
The
association and its members would focus on promoting exports to mainland
Companies
have signed contracts to export 4.1 million tonnes this year and so have to
ship another 1.389 million tonnes in the remaining months.
Despite
facing fierce competition, the sector would meet this year's export target of
7-7.5 million tonnes, Nang said.
Thai
bank manager lauds VN's future
Tharabodee
Serng-Adichaiwit told attendees at the Thailand-Vietnam Business Meeting that
the country's advantages included political stability, a young population,
and strong government support for foreign direct investment.
An
increasing number of enterprises want to set up factories to tap the
potential of the Trans Pacific Partnership (TPP), expected to be signed in
the near future, and Free Trade Agreements (FTA) between the EU and
The
ASEAN Economic Community, expected to take effect by the end of the year,
will also bring more trade opportunities.
Nguyen
The Hung, deputy director of the Viet Nam Chamber of Commerce and Industry,
said that many leading multinational companies had chosen
In the
first six months of the year,
Bilateral
trade between
As of
the end of last year,
It
encourages investment in nine services, including finance, trade,
transportation and logistics, telecommunications, real estate, consultancy,
scientific and technology research, healthcare, education and training, and
tourism.
At the
Thai Trade Fair in the Tan Binh Exhibition and Convention Centre, about 300
domestic and Thai manufacturers, importers, exporters, agents and
distributors with 350 booths are displaying products and services, including
auto parts, food and beverages, textiles and garments, health and beauty
products, and household and kitchenware.
The
event is organised by the Department of International Trade Promotion and
Ministry of Commerce of the Royal Thai Government.
HAG
reneges on share buyback plans
It's
normal on the stock market for companies to announce they're going to back
their own shares, but it's becoming less common for firms to follow through
with their plans.
Property
developer Hoang Anh Gia Lai Co (HAG) is the latest company to announce a
buyback plan and fail to go through with it.
Yesterday
should have been the deadline for HAG to complete its purchase of 10 million
shares in the company, but earlier this week, HAG surprised investors with
the announcement that it would put off the buyback scheme.
According
to its filing to the HCM City Stock Exchange, HAG made the decision to ensure
long-term investment capital for its key projects. The company said that
bondholders suggested stopping the buyback and using the money to invest in
future projects.
In the
previous plan, the company registered to buy 10 million HAG shares from June
10 to July 9 with expected prices from VND16,000 (US$0.73) to VND22,000
($1.01) a share to stabilise the price in the market."
No
shares were purchased during this time. But HAG's price increased 6.7 per
cent from VND18,000 a share on June 10 to VND19,200 on Monday, before falling
again in the last two sessions after the announcement of the stoppage.
However,
HAG was within its legal rights. It isn't rare for companies to do this in
They can
register to buy back their shares, but by the deadline they also can say they
could not complete the purchase due to unfavourable market condition or
unsuitable prices. In March, PV Gas (GAS) said it would buy back 10 million
shares with the maximum price of VND100,000 ($4.59) a share. However, it
ended up buying just 602,000 shares, or just 6 per cent of its registered
amount, even though the price was around VND65,600 – much lower than the
expected price at that time. GAS attributed this to "problems in the
registration procedure that lead to shortened transaction time."
PetroVietnam
Drilling and Wells Service (PVD) announced it would purchase 2 million shares
of the company from April 23 to May 23, but it bought about 10 per cent of
that. This was not the first time PVD failed to finish their buyback plan.
In order
to protect investors' interests, the State Securities Commission is drafting
Circular 74, which would add provisions forbidding companies to announce
their share buyback plans but then not make transactions within the
registration time. The draft also prohibits issuers from declaring expected
buying prices in their plans.
Metropole
Hanoi rises to number 61 of top 100 hotels
The
Sofitel Legend Metropole Hanoi has climbed to 61st spot among the world's top
hotels chosen by readers of the US's Travel + Leisure magazine, its highest
position ever in one of the world's most prestigious top hotels lists.
Last
year the Metropole was in 66th position, and the year before, in 68th.
Only
five other hotels in the Far East bested the Metropole: the Peninsula Hotel
in
Only one
other hotel from
GE
and EVN cooperate on developing capabilities and resources
The MOU
calls for cooperation in developing capabilities and resources to help
The
signing occurred during the official visit of Vietnam’s Communist Party
General Secretary Nguyen Phu Trong to the US marking the 20th anniversary of
diplomatic normalisation between the US and Vietnam.
In terms
of capabilities development under the MOU, GE will continue to assist EVN in
the development of human resources through a variety of
activities, such as leadership training for EVN’s senior leaders, corporate
governance best practice sharing, and practical & technical training
programmes.
In terms
of energy infrastructure development, GE will provide EVN with technology
updates and support for power generation products - including high efficiency
gas turbines, large-scale steam turbines, and wind turbines.
Furthermore,
both parties shall work together to expand and enhance the usage of renewable
energy in the country.
Pham
Hong Son, CEO of GE Vietnam and
“The
agreement becomes more significant when it is formalised in the context of
the 20th celebration of diplomatic relations between the
“Sharing
a common desire to develop
With
more than 700 employees and over $110 million invested, GE is committed to
partnering with the Vietnamese government to help meet its energy needs. GE
has been cooperating with Vietnamese private and state-owned enterprises on
significant power projects, such as, the upgrade of
GE has
also helped in the development of high capacity wind farms, such as, the Bac
Lieu wind farm in Mekong Delta and the Tay Nguyen wind farm in the
With the
vision of becoming a trusted partner of the Vietnamese government and
customers while contributing to the growth of
Chu
Lai EZ inks credit co-operation with Vietinbank
The Chu
Lai Open Economic Zone and Viet Nam Bank for Industry and Trade (Vietinbank)
have agreed to a five-year credit co-operation to provide loans for projects
and investors.
Do Xuan
Dien, head of Chu Lai EZ, told Viet Nam News yesterday that the co-operation
will assist businesses by providing funds for future development and
investment in the zone.
Following
the five-year deal, Vietinbank will set up financial transaction and branch
offices in the zone, and help boost the promotion of investment for the EZ.
The bank
also will build Automatic Teller Machine (ATM) systems at Industrial Parks,
as well as the living quarters and service areas in the EZ in the coming
years.
The
zone, located in the central
Further,
the zone's Ky Ha and Tam Hiep ports have been upgraded to allow access to
20,000 DWT (deadweight tonnage) ships.
Chu Lai
EZ has been included as one of five coastal economic zones across the country
to receive support from the State budget during the 2013-15 period, with
VND790 billion ($38 million) set aside for the zone.
HNX
to list two new stocks
Two new
stocks with a total 21.4 million shares will be listed on the northern
securities market next week, the Ha Noi Stock Exchange (HNX) said.
The two
new stocks are Petrovietnam Fertilisers and Chemicals Joint Stock Company
(PVFCCo) and the Southern Books and Education Equipment Joint Stock Company
(SOBEE), which are listed as PSW and SMN, respectively.
The
PVFCCo will get listed on July 14 with a total 17 million shares, worth
VND170 billion (US$7.79 million), for an initial market value of VND13,500
per share.
The
company, founded in 2004 with VND170 billion in charter capital, produces and
imports fertilisers for agricultural production, and provides other services
such as transportation, warehouses and leasing offices.
Last
year, PVFCCo earned VND3.54 trillion ($162.73 million) in revenue and VND31.9
billion ($1.46 million) in after-tax profits. The company aims to earn
VND2.47 trillion ($113.6 million) in annual revenue in 2015 and 2016.
The
other company, SOBEE, will issue about 4.4 million shares on HNX on July 17,
worth VND44.05 billion ($2.02 million), for an initial market value of
VND12,000 per share.
SOBEE
was founded five years ago as a member of the education and training
ministry's Vietnam Education Publishing House, with a charter capital of
VND44 billion ($2.01 million).
The
company distributes books and education equipment provided by the Vietnam
Education Publishing House, publishes books, and sells other stuff such as
souvenirs and toys.
The
company has also invested VND15 billion ($688,000) in an office building in
Last
year, SOBEE earned VND313.2 billion ($14.36 million) in revenue, a slight
increase over its 2013 revenue. The company aims to earn VND315 billion (14.4
million) in revenue and VND6.7 billion ($308,000) in after-tax profit.
Chinese
firms want more tra fish imports from Vietnam
As
reported by the association at a meeting with Mekong Delta localities on
Tuesday, Vietnamese enterprises had clinched contracts to export 475,294 tons
of tra fish products as of June 27. Of the total volume,
In terms
of products, enterprises mainly exported tra fish fillets with 374,902 tons
(78.9%) while value-added products made up only 5,207 tons (1.1%).
At the
meeting, localities questioned contract registrations for tra fish exports is
maintained or not as many enterprises have proposed lifting the requirement.
Vo Hung
Dung, general secretary of the Vietnam Pangasius Association, told the Daily
on the sidelines of the meeting that registering export contracts was
necessary as it enabled enterprises, localities and management agencies to
closely monitor tra fish farming, output, harvest time and demand of
enterprises so as to make reasonable adjustments.
Le Chi
Binh, vice chairman of the An Giang Fisheries Association, shared the view,
saying that it would help localities get useful information about
developments in the tra fish industry.
Dung
said export contract registration is part of a long-term goal of developing
tra fish farming in line with VietGAP (good agricultural practices) or
equivalent practices.
“Decree
36 requires tra fish materials to meet VietGAP standards and all farmers and
enterprises have to follow this,” Dung said.
Besides,
export enterprises should be certified to meet requirements of the National
Agro-Forestry-Fisheries Quality Assurance Department (Nafiqad).
Data of
the General Department of Customs showed
Minh
Hung Co.,
The
sales event, to be held at L1-R3,
At the
event, foreign customers will receive consultancy as well as promotions such
as a discount of up to 8 per cent of the total apartment value, a VND50
million (US$2,350) gift card at electric and home appliance retailer VinPro
and a three day - two night holiday voucher at Vinpearl Resort Phu Quoc/Nha
Trang.
All
home-buyers at the event also have the option to take out a loan equal to 70%
of the property value at a zero per cent interest rate for the first 12-18
months.
Situated
on a 12-hectare site approximately 5 kilometres southwest of
New
regulations effective starting July 1 of this year stipulated that foreigners
can trade and inherit houses in addition to buying just for living.
Remarkably, they can buy houses right after entering
Before
the new regulations became effective, many foreigners and Vietnamese
overseas, including those who have previously been living for tens of years
in big cities such as Hanoi and Ho Chi Minh City, had no choice but to spend
around VND60 million (US$2,800) and even higher on rent every month.
For more
information on the event and the exclusive offers for the first non-Vietnamese
customers at
Electronics
industry booming with bright prospects, but changes needed
The
electronics cluster has grown rapidly in recent years, which has resulted in
an expansion of 78% per year in exports for the past four years to reach
US$35 billion in 2014, DBS Bank said in “Sparking Life into the Vietnamese
Electronics Sector,” released on July 2.
By the
end of last year, electronics shipments by
Meanwhile,
the industry has become a key driver of the economy, making up 23.4% of GDP
last year, up from just 5.2% in 2010.
The
Southeast Asian country has captured market share from many of its regional
peers following a process seen repeatedly in Asia: earlier players saw income
and wages rise, opening the door for lower cost producers.
Faced
with weak global demand and persistent cost pressure, many manufacturers were
searching for cheaper locations from which to produce.
In
addition, competition was intensifying, making the need to restructure the
supply chain even more compelling.
Vietnam’s
pro-foreign direct investment policies, a weaker currency and competitive
labor force all added more development fuel to the sector in subsequent
years.
High-tech
electronics producers are establishing a presence in Vietnam, evidenced by
Intel, LG, Panasonic and Microsoft being among the global tech giants to have
expanded in the country in recent years, marking a shift away from China.
In
addition, beyond the cost advantage, geography also plays a role.
Given
Vietnam’s proximity to China, it is easier for the Southeast Asian country to
integrate into existing supply chains.
Korean
electronics giant Samsung announced late last year an investment of US$3
billion in a new smartphone factory, alongside its existing US$3 billion
plant, located in the north of the country, which is close to China.
Moreover,
a growing middle class supporting domestic demand has further strengthened
Vietnam’s overall attractiveness for global manufacturers.
Among
the earnings of $1 trillion in export revenue in 2014 of eight main Asian
electronics exporters, including China, Taiwan, the Republic of Korea,
Malaysia, Thailand, Singapore, the Philippine and Vietnam, the last country
accounted for 3.5% of the total, up from a mere 0.4% in 2010.
Vietnam
has leapfrogged the Philippines and Thailand, and will likely overtake
Singapore to become the fifth largest electronics exporter in the region over
the next two years, and this trend is likely to persist.
After
Samsung submitted a written proposal to Ho Chi Minh City authorities seeking
support in finding capable domestic suppliers in June, the authorities
immediately reached out, only to find that very few local firms meet the
demands of the Republic of Korean electronics giant, government website
chinhphu.vn reported.
The
proposal was sent just a few days after the tech behemoth started
constructing the Samsung Electronics Complex, with a total investment of
US$1.4 billion, at the Saigon Hi-Tech Park (SHTP) in District 9 in late May.
Samsung
said it wanted to find domestic suppliers to focus on certain sectors such as
mechanical engineering, electricity, printed circuit board assembly,
auxiliary materials and raw materials.
Nguyen
Phuong Dong, deputy director of the Ho Chi Minh City Department of Industry
and Trade, after receiving the written proposal by Samsung, organized a
meeting with potential suppliers in the city and formed a list of companies
with the ability to provide on-demand products for the tech firm to consider.
However,
Le Bich Loan, deputy head of the SHTP Management Board, said after several
rounds of work, more than 100 companies was shortlisted by one-third.
And then
the number of candidates who passed the prequalification round of Samsung was
scaled down to only 15 companies, at which Samsung will conduct field surveys
for a final decision.
Bright
prospects, but drastic changes necessary
In the
long term, as the government expects electronics exports to reach US$40
billion by 2017, a modest growth rate of five percent per year would help
achieve the target.
Nonetheless,
the longer-term sustainability of the industry will depend on whether Vietnam
can raise productivity and move up the value chain.
The
influx of foreign electronics manufacturers has enabled the transfer of
technology and skills.
However,
the country needs to develop its own talent and supplier pool to sustain the
trend.
Otherwise,
electronics will only migrate to other cheaper locations, like Indonesia,
Cambodia, Laos and Myanmar, which can all offer competitive alternatives to
global manufacturers once wages start to rise in Vietnam.
Binh
Duong authorities talk with Japanese firms
Authorities
from the southern province of Binh Duong held a dialogue with Japanese
businesses on July 10.
France’s
second cheese factory commences in Binh Duong Binh Duong gives thumbs up for
US$274m textile plant Binh Duong records US$1.1 billion trade surplus in two
quarters Japanese companies gave opinions on local social welfare, tax, and
import-export policies as well as investment procedures and administrative
formalities.
Officials
from these sectors eased business concerns over e-tax payments, second-hand
equipment imports, unemployment compensation and expiration dates for
Japanese imported beef.
Japanese
Consul General to Ho Chi Minh City Satoshi Nakajima welcomed the dialogue for
enabling the two sides to give feedback on law enforcement and discuss
solutions to mitigate difficulties for businesses.
Chairman
of the provincial People’s Committee Tran Van Nam said similar events will be
hosted for foreign enterprises, including those from Japan.
He said
the locality will enact prompt measures to support businesses.
He added
that the Japanese business association is expected to continue bridging local
leaders with businesses to facilitate production.
Binh
Duong has hosted 231 Japanese investment projects worth US$4.86 billion,
ranking second nationwide in terms of Japanese investment capital after
central Thanh Hoa province with US$9.68 billion.
In the
first half of this year, Japan ran eight investment projects in Binh Duong
with a total capital of US$82.2 million.
Auditors
stay tough on brewer Sabeco amid $181mln tax evasion scandal
Vietnam's
largest brewer Sabeco will have to pay over VND408 billion (US$18.68 million)
in luxury taxes that state auditors said it tried to evade in 2013 in a
long-lasting price manipulation scheme.
The
state audit office told the press on Friday that the scheme was made possible
by legal loopholes and that it would not go easy on the violation.
Early
this week, state auditors submitted a report to the Ministry of Finance,
accusing Saigon Beer Alcohol Beverage JSC, as the company is officially
known, of rigging prices within its network of 11 distributors to pay less
tax.
It said
under Vietnamese law, luxury tax is calculated based on the price at which a
producer sells its products to distributors. The tax rate was 50 percent for
beer in 2013.
To take
advantage of this rule, Sabeco sold its products to Sabeco Trading Co. Ltd,
which it fully owns, at low prices.
This
company then sold the products, once again at low prices, to 10 other
"regional" distributors, in which Sabeco has at least a 90 percent
stake.
The
scheme allowed Sabeco to pay only a small amount of luxury tax, before
increasing prices when selling beer to retailers, according to the office.
Speaking
at the press conference, Truong Thi Viet Huong, who led the team that audited
Sabeco, said the brewer's trick was similar to transfer pricing.
It was
enabled by a loophole in an ordinance on luxury tax which does not
specifically define whether or not the distributors have to be financially
independent from the producer, she said.
However,
the finance ministry is now working on adjusting the rule, so it will be only
applicable, when the producer does not have any shares in the distributor,
according to Huong.
In the
case of Sabeco, state audit recommended luxury tax be re-calculated on the
price at which its regional distributors sell to retailers, she said.
The
brewer reportedly will have to pay a total of VND4 trillion ($181 million)
for 2008-14, if the proposal is accepted.
But the
audit office asked the company to pay its 2013 arrears first, saying since
the total amount is huge, Sabeco would need some time to pay the whole sum
off.
Huong
also responded to Sabeco's claim that many other companies have operated
similar systems of distributions, saying that her office will possibly check
on those businesses.
Quang
Ninh expects 12 percent H2 growth
Northeastern
Quang Ninh province expects a GDP growth of 11-12 percent in the second half
of the year, it was reported at a recent business conference.
Nguyen
Van Doc, Chairman of the provincial People's Council, praised the
contribution of businesses to the province's economic development in the
first half of the year. The province's GDP in the six month period reached
8.9 percent, taking second place among localities in the key economic
northern region.
Doc said
this contribution to the State budget was relatively high, especially as
revenues from local production accounted for 56 percent of the total.
"These
results were thanks to the important contribution of enterprises," he
said, adding that Quang Ninh province would continue supporting companies, as
well act to quickly assist them in any difficulties they confront.
Statistics
from the provincial Department of Planning and Investment showed that
businesses in the province have increased production due to the Government's
supporting policies, as well as their own efforts.
In the
first half of the year, State-owned enterprises had the highest contribution
to the State budget at 4.2 trillion VND (194.4 million USD), posting a 2
percent year-on-year increase.
Further,
increases in foreign direct invested enterprises was 15 percent lower than
the same period last year, reaching 474 billion VND (21.9 million USD), while
non-governmental businesses contributed 808 billion VND (37.4 million USD),
which was 10 percent higher than the corresponding period last year.
Nguyen
Van Minh, the department's director, said the province had 516 newly
established businesses with total registered capital of 6.5 trillion VND
(300.9 million VND), representing 40 percent and 187 percent year-on-year
increases, in terms of business numbers and capital, respectively.
It was
expected that 5,660 people would be employed by the newly established firms,
an increase of 64 percent over the same period last year. More than 160
companies reported operations that were 1.7 percent higher than last year.
However,
there were 66 companies in the midst of dissolving, while another 215 firms
halted operations.
He said
the province received 64 proposals from businesses as of July 7. Of these, 22
proposals came from the coal industry and 42 ones from other economic
sectors.
The
proposals were related to policies on land, natural resource management,
investment, administrative procedures, transport management and minerals. The
province answered the proposals of each unit.
Neerav
Kumar Gupta, General Director of the Tien Phong Industrial Zone Company,
which was granted licence to build the South Tien Phong Port in Quang Yen
town, said they had faced difficulties due to transport, electricity and
water infrastructure. He expected that the province would have solutions to
create favourable conditions for their operation.
The
province's leader said they had studied solutions to meet their commitments
relating to their support of the infrastructure.
A
representative from the Mong Duong Thermopower Plant 2 said they had received
much attention from the province regarding land clearance, licencing and
infrastructure development. They had also striven to ensure issues of
progress and labour safety.
He
proposed that the province should continue to improve the provincial
competitiveness index (PCI), training high quality employees.
In
addition, they expected to received preferential assistance in building the
Mong Duong Thermopower Plant 3.
Other
businesses also hailed the province's efforts in helping them overcome
difficulties.
Works
remains for exports to Australia
As
Vietnamese exports to Australia rapidly expand, domestic exporters are being
recommended to focus on long-term benefits by seeking trademark protection
overseas and adding more value to their goods and services.
Vietnamese
lychees much sought after in Australia Vietnam, Australia boost mining
cooperation HCM City facilitates Australian investment Trade between Vietnam
and Australia has surged 46% over the past five years from US$4.14 billion in
2010 to US$6.04 billion in 2014.
Last
year, Vietnam earned US$3.99 billion from exports to Australia, up 14% year
on year and 48% from 2010, owing to the ASEAN-Australia-New Zealand Free
Trade Agreement (FTA) effective since 2010, in which 96% of ASEAN goods
exports to Australia are tariff-free.
According
to the Vietnam Trade Office in Australia, Australia is a very promising
market which purchases around US$80 billion of goods and services overseas
annually, presenting many untapped opportunities for Vietnamese exporters.
Statistics
by the General Department of Vietnam Customs revealed that Vietnam has seen
remarkably high growth rates in farm produce and seafood exports to Australia
last year, such as pepper (up 52.5%), seafood (20.7%) and cashew nuts (12.6%)
which made up 96% of Australian cashew imports.
More
than 40 tonnes of Vietnamese lychee have been shipped to Australia this year,
mostly Sydney, Melbourne and Brisbane, paving the way for other domestic
fresh fruits to make inroads into Australia, a big buyer with strict
quarantine regulations.
The
trade office has worked with the Australian chapter of the Vietnam Business
Association to host Vietnamese Lychee Day in Australia to promote the fruit
locally and give away cookbooks with ideas for lychee dishes and desserts.
It has
also published a list of 1,586 export items with their market share in
Australia for domestic exporters.
The
Vietnam Trade Office recommended local firms focus on developing brand names
and adding value to their products and services.
The
firms should apply for trademark registrations in import countries to protect
their products and services against illegal replicas by competitors and cut
middlemen from the exporting process, it said.
Binh
Phuoc fosters economic ties with Cambodian provinces
A
meeting was held between senior officials of the southern province of Binh
Phuoc and the Cambodian provinces of Kratie, Mondulkiri and Tabong Khmum on
July 10 to review their cooperation in the past year.
Chairman
of Binh Phuoc’s provincial People’s Committee stated the meeting would serve
as a catalyst for boosting friendship and trade relations between the two
sides.
Localities
needed to address the challenges faced by border communities in order to
maintain social order and security, as well as promoting friendship.
Speaking
at the meeting, Kratie province’s Deputy Governor Hoeu Sidem spoke highly of
the contributions made by Vietnamese enterprises, including Binh Phuoc
businesses, to economic development in the Cambodian province in recent
years.
He
expressed his hope that Binh Phuoc province would create favourable
conditions for Cambodian businesses to visit and learn from the experience of
Binh Phuoc businesses.
Meanwhile,
the Deputy Governor of Mondulkiri province, Chanso Chantha, appreciated the
sound cooperation with the Vietnamese province on constructing the border
gate and roads, as well as preventing child trafficking and trade
infringements.
On his
part, Tabong Khmum’s Deputy Governor Ly Leng stated that he expected trade
between the two provinces to increase.
Since
2014, Binh Phuoc province has signed Memoranda of Understanding with
Cambodia’s neighbouring provinces on the economy, trade and agricultural
development. The province is currently implementing three investment projects
in Cambodia.
Last
year, Binh Phuoc province transferred 20,000 cashew seeds and 40,000
transplanted cashew seedlings to Kratie province’s agricultural sector. In
addition, the Vietnamese province also provided technical assistance to
agricultural officials and farmers in Kratie.
Furthermore,
Binh Phuoc province invested 12 billion VND (558,000 USD in the construction
of Song Mang bridge, which links the province’s Hoang Dieu border gate and La
Pa Khe border gate in Mondulkiri province.-
National
Audit Report for the 2014 fiscal year announced
The
National Audit Report for the 2014 fiscal year was announced in Hanoi on July
11 by the State Audit of Vietnam (SAV).
The
national audit report examined records from 14 ministries and central
agencies, 35 major cities and provinces, and 40 State-owned enterprises and
credit institutions.
The SAV
reported that the State Budget collection in 2013 was over 1,084 trillion VND
(49.7 billion USD), with State budget spending of more than 1,277 trillion
VND (58.5 billion USD).
The
overspending made up 6.6 percent of gross domestic production, about 1.3
percent higher than the rate approved by the National Assembly.
The
public debt in 2013 was over 1,954 trillion VND (89.5 billion USD),
accounting for 54.5 percent of GDP, while the public debt in 2012 made up
55.7 percent of GDP.
Dao Van
Dung, head of the SAV's General Affairs Department, said that State-owned
enterprises submitted incorrect reports regarding revenues and taxable costs,
which meant they paid less VAT and corporate income tax than they should
have.
They had
been asked to pay an extra 3.28 trillion VND (150.5 million USD) to the State
Budget, he said.
The
reported said the SAV also audited the State Bank of Vietnam. The bank was
said to have operated flexibly and efficiently used monetary policy to
contribute to macro-economic objectives under the socio-economic development
plan in 2013.
However,
banking activities still faced challenges such as credit quality and the
ratio of bad debt.
Vietnam's
Dong A Bank may sell 100 mln shares to Kinh Do
Vietnam's
unlisted Dong A Bank is seeking shareholders' approval to sell 100 million
shares in a new issue to confectionary firm Kinh Do Corp and use proceeds to
boost finance, the bank said.
If
approved at a meeting on July 21, the VND1 trillion (US$46 million) proceeds
will be used to raise the Ho Chi Minh City-based bank's registered capital by
20 percent to 6 trillion dong, Chief Executive Officer Tran Phuong Binh said
in a report released to shareholders.
"Kinh
Do Corp is an investor who can meet all legal requirements to become Dong A
Bank's strategic investor and the company is committed to buying all the
shares" in the issue, Binh said in the report posted on the bank's web
site. (dongabank.com.vn)
Officials
at Kinh Do Corp, based in Ho Chi Minh City, were not immediately available
for comment.
Kinh Do
shares ended up 3.85 percent at 45,800 dong on Friday.
Dong A
Bank is the 16th largest among Vietnam's 33 partly private lenders by assets.
The bank said its net profit last year plunged 92 percent from 2013 to 26.98
billion dong ($1.24 million) following lower revenues.
Ho
Chi Minh City sees declining export values
Ho Chi
Minh City posted a six-month export revenue of nearly 14.6 trillion USD, an
annual decrease of 6.3 percent.
According
to Vo Van Luan, Chief of the People’s Committee Office, mid-year export
turnover of the agro-forestry-fisheries sector – accounting for 20 percent of
the total export revenue – slid 9.6 percent from 2014, leading to the overall
reduction.
During
the period, stiff competition from Thailand and India as well as lowered
demand from major importers Indonesia and the Philippines led to only 339,000
tonnes of rice shipped abroad, an annual drop of 73 percent.
The
plunging rice trade is likely to be improved by the end of 2015 thanks to
global market recovery as a result of positive impacts of government
export-stimulation policies and several free trade agreements, said Nguyen
Anh Duong, an expert from the Central Institute for Economics Management
(CIEM).
To
fulfil the 2015 export target, local business communities and associations
ought to enhance promotion programmes and place additional emphasis on
connectivity among domestic production, material import and market expansion,
Duong noted.
Exporters
across the southern hub need to focus on boosting price competitiveness,
quality assurance and production capacity.
Pho Nam
Phuong, Head of the Ho Chi Minh Investment and Trade Promotion Centre (ITPC),
revealed that her agency is working to strengthen partnership in traditional
markets like the US and EU and in potential markets such as Russia, Indonesia
and India.
The ITPC
is also making efforts to forge business links in Africa and western and
southern Asia.
Moves
to enhance inspection of business climate improvements
Concrete
steps to better the joint inspection of improvements to the business
environment and tax and customs competitiveness was outlined at a recent
meeting in Hanoi.
Participants
to the July 8 event were assistant teams and the eight-member Steering
Committee of the joint inspection programme, headed by Chairman of the
Vietnam Chamber of Commerce and Industry Vu Tien Loc and Vice President of
the Vietnam Fatherland Front Nguyen Van Pha.
They
agreed that the joint inspection programme will be carried out in three
groups of activities in 2015.
In group
one, surveys on 200 business associations and sub-unions of the Vietnam
Cooperatives Union nationwide will be conducted. Group two will do interviews
at border gates and tax and customs agencies in key economic regions and in
major fields such as seafood, garment-textile, steel, footwear, food and
coffee.
Group
three is responsible for reporting the survey outcomes and proposing
solutions to improve tax and customs competitiveness.
Administrative
reforms related to amending unnecessary formalities and reducing time and
cost for businesses in tax payment and goods customs clearance will be under
examination.
The
coordination plan will also collect proposals and feedback from businesses on
the implementation of Government Resolution 19/2015/NQ-CP on major solutions
to improve the national business climate and competitiveness between 2015 and
2016.
Shrimp
exports decline over falling demand
The
shrimp export revenue decreased during the first half of 2015 as major
importers are showing a lack of appetite.
Vietnam
only shipped 1.3 billion USD worth of shrimp – a key export commodity –
during the period, plunging about 28 percent from a year earlier, according
to Deputy General Secretary of the Vietnam Association of Seafood Exporters
and Producers Nguyen Hoai Nam.
Such a
decline contributed to a 16 percent reduction in the six-month aquacultural
exports, which stood at around 3 billion USD.
Giant US
and European buyers have traditionally had higher demand for shrimp around
June, but this year has proved the opposite.
Vietnam
earned just 48 million USD from shrimp exported to the US in May, sliding 46
percent from 2014. Similar drops were also recorded in ASEAN, Japanese and
Australian markets.
European
clients have been preferring shrimp from America for its preferential
tariffs.
Nam also
pointed to a downward trend in prices and a surge in the global shrimp supply
as a remedy for early mortality syndrome, a disease that kills shrimp before
it reaches marketable sizes, was implemented by a number of active exporters
worldwide.
These
factors have led to difficulties in obtaining contracts, he said, saying
meeting the year’s target of 3.9 billion USD in shrimp shipments, matching
that of 2014, would be a success.
Source : VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
|
Chủ Nhật, 12 tháng 7, 2015
Đăng ký:
Đăng Nhận xét (Atom)
Không có nhận xét nào:
Đăng nhận xét