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BUSINESS IN BRIEF 1/9
Bitexco,
Vingroup licensed to build residential projects
The Ha
Noi People's Committee has granted investment licences to the multi-industry
group Bitexco and real estate developer Vingroup to develop two urban
projects.
Bitexco
will build Manor Central Park in the first phase, which will cover nearly
100ha spread across Dai Kim Ward, Hoang Mai District, and Thanh Liet Commune
in Thanh Tri District.
The
park is a multi-functional urban area comprising villas, apartments for sale,
shopping malls and a park, among others. With a total investment of $1.9
billion, the project is expected to begin construction in the fourth quarter
of this year and be completed within five years.
Meanwhile,
the VND4.85-trillion ($215.5 million)
With
Hong Ngan Real Estate JSC under Vingroup as the investor, Green City will be
a multi-functional residential project, comprising villas, gardens, shops and
high-rise apartment blocks, as well as schools at all levels and a medical
clinic.
The
construction of the project is also expected to begin in the fourth quarter
and be completed within the next four years. It is estimated to accommodate
about 8,760 people upon completion.
New
enterprises increase in August
According
to the General Statistics Office there were 9,301 newly-established
enterprises in August with total capital of VND55.2 trillion ($2.43 billion),
an 84 per cent increase in numbers and double the capital year-on-year.
In the
first eight months of this year 61,305 enterprises completed registration
procedures with capital of around VND376.4 trillion ($16.56 billion), a 30
per cent increase compared to the first eight months of last year. Together
with additional capital from existing enterprises, total capital reached
VND857.9 trillion ($37.75 billion).
There
were also 11,333 enterprises that had temporarily suspended operations
restarting their business, a 4 per cent increase against the first eight
months of 2014.
With
an average of 250 companies being established every day, a huge number of
jobs are being created. Figures show that employment created by the
establishment of new enterprises in August totaled 873,300, a 23 per cent
increase compared to August 2014.
The
number of enterprises dissolved in the first eight months fell year-on-year,
at 6,290. Most were of small scale, with capital of VND10 billion ($440,000)
or less. The number of enterprises temporarily suspending operations stood at
39,056, a 2 per cent increase against the first eight months of 2014.
A
report on investment in
There
were 55 countries and territories with investment projects in
The
The
project pushing the
Investment
cooperation between
Railroad
planning adopted
The
Prime Minister (PM) has approved the Plan for the General Development of
Railroad Transport in
The
general development of railroad transport will be in line with overall
planning for the development of transport in
The
plan also said that
Railroads
are to transport 3-4 per cent of all passengers and 4-5 per cent of all
cargo, focus on long-haul and heavy logistics, and widen international
transport to neighboring and regional countries.
Agriculture
exports at $19.31 billion this year
The
latest report from the Ministry of Agriculture and Rural Development (MARD)
shows that export turnover in the agriculture sector in August was at an
estimated $2.38 billion, bringing export value in the first eight months of
the year to $19.31 billion, a decline of 4.8 per cent compared with the same
period last year.
The
export value of main agricultural products, in particular rice and seafood,
was estimated at $9.18 billion, down 7.7 per cent.
Rice
exports in August stood at 505,000 tons, worth about $228 million, bringing
rice exports in the eight months to 4.09 million tons in volume and $1.76
billion in value, down 8.6 per cent and 13.1 per cent, respectively, year-on-year.
The
value of seafood exports in August, meanwhile, was estimated at $554 million,
for an eight month total of $4.13 billion, down 17.5 per cent over the same
period of 2014. The
In the
first seven months seafood exports to the
The
MARD report also showed that wood exports in August reached $556 million in
value, for an eight month total of $4.3 billion, up 8.5 per cent compared
with the same period last year.
The
US,
Macro-economy
remains stable
Prime
Minister Nguyen Tan Dung and ministries held a meeting on August 26 to assess
the effect of economic fluctuations around the world on
The
meeting focused on issues such as falling global oil prices, abnormal
movements in stock markets around the world, adjustments to international
capital flows after
Though
acknowledging the issues, the PM and ministries remain optimistic about the
development of
Regarding
falling crude oil prices, which were forecast at the beginning of the year,
ministries and agencies reported there is a timely response in place. The
Ministry of Finance (MoF) confirmed that, with current oil prices, budget
revenues will still exceed plans by 8 per cent.
Regarding
In
exchange rates and interest rates, State Bank of
The PM
said that, overall,
The PM
appreciated that solutions had been taken promptly. However, unpredictable
movements in the global economy require
Jan-Aug
FDI in Dong Nai reaches $1.5 billion
Southern
Dong Nai province issued investment licenses to seven new foreign direct
investment (FDI) projects in August, with total registered capital of $32
million. Two existing projects increased their capital by an additional $4.5
million in total during the month. In the first eight months 63 new projects
were registered and 331 existing projects added capital, totaling nearly $1.5
billion and reaching 171 per cent of the plan for 2015.
The
province has 1,389 investment projects in 32 industrial zones, of which 1,014
projects are foreign invested with more than $19 billion in capital. In the
first eight months the industrial zones leased over 122 ha of land, more than
22 per cent higher than planned. Since the beginning of the year many
enterprises have invested in Dong Nai or expanded their investment due to its
good transport infrastructure and investment attraction policies.
Seven
of 29 industrial projects leased land to build factories and develop
production at the Bien Hoa Industrial Zone 2, Go Dau Industrial Zone, the
first phase of the Nhon Trach 3 Industrial Zone, Nhon Trach Textile
Industrial Zone, Bien Hoa 1 Industrial Zone, and Tam Phuoc Industrial Zone.
According
to the Dong Nai Provincial Department of Planning and Investment, in the
first seven months the province also revoked the licenses of four projects
belonging to domestic enterprises, with capital of about VND2.736 trillion
($128.4 million). The province has therefore revoked the licenses of about 33
domestic projects to date, with registered capital of VND27 trillion ($1.26
billion). Reasons mostly relate to extended delays or a lack of capital and
were all outside of industrial zones.
The
province now has about 598 domestic projects with total capital of more than
VND139 trillion ($6.5 billion). Since the beginning of the year domestic
investment in the province has been much less than foreign investment.
Mobile
World moves into FMCG and fresh food
Vietnamese
mobile phone retailer Mobile World (MWG) has recently announced a Board
resolution approving the trial of new retail chains.
The
company will expand its trading activities into fast-moving consumer goods
(FMCG) and fresh food, with 30-50 trial stores on areas ranging from 150 to
400 sq m each.
The
first stores will open in the fourth quarter of this year and MWG will wrap
up the trial sometime in 2016. The budget to introduce the new chains will
range from VND20 billion to VND50 billion (890,000 to $2.2 million).
Mobile
World’s revenue in the first six months stood at VND10.86 trillion ($497.82
million), an increase of 157 per cent against the same period last year and
achieving 46 per cent of the annual plan.
In the
first half its Thegioididong.com electronics supermarket chain opened 87
stores and DienmayXanh.com eleven, bringing the total number of MWG outlets
to 461.
South
Korean printer eyes Binh Dinh
At a
recent meeting with the Binh Dinh Provincial People’s Committee, the CEO of
the Gift by Design Company from
Gift
by Design has operated in the printing field in South Korea for 35 years and
has had a factory in China for over 20 years, which it is planning to
relocate to Vietnam to improve efficiency.
According
to the Investment Promotion Center of Binh Dinh Province, the company leaders
were looking for land in an industrial park to lease or sub-lease a factory
in an industrial park with a total area of 15,000 sq m, of which the
construction area would be around 8,000 sq m, in order to build a factory
producing paper bags. It will also employ around 700 workers.
In
using offset printing technology, Company Chairman Mr. Kim said the factory
would not produce wastewater so there are no concerns about any environmental
impact. The materials used for the factory will be imported and its finished
products will be exported to the
Deputy
Chief of the province’s Economic Zone Administration, Mr. Nguyen Ngoc Toan,
said that
VNPT
divestments on target
VNPT
has withdrawn VND701 billion ($31.187 million) in investments outside of its
core business of telecommunications, according to CEO Pham Duc Long, which
meets the group’s target.
It is
also divesting capital in 63 enterprises in five sectors: real estate,
insurance, the stock market, finance, and banking, and is focusing on selling
subsidiaries facing difficulties as quickly as possible.
Though
VNPT collected VND701 billion ($31.187 million) from its divestments, it must
still divest VND1.512 trillion ($67.3 million) more. At the current pace it
expects to complete the divestments on schedule.
VNPT
Chairman Tran Manh Hung said that the divestments will help the group to
develop. It is now undergoing restructuring, he said, and if it has many
subsidiaries operating in the same sector they will be rearranged. But if
subsidiaries are recording good business performance they will receive
continued support.
He
also said the group would restructure because it is difficult to manage many
joint stock companies.
The
recent auction of its subsidiary Cadico was cancelled because of a lack of
participants.
Instant
coffee exports boom
USDA
also predicted that from the 2014/2015 crop
A
great deal of foreign investment in the sector has also had a significant
effect on growth. Nestlé, for example, has built coffee processing plants
costing $80 million in southern Dong Nai province.
VRG
opens rubber processing plant in Cambodia
On
August 26 the Tan Bien-Kampong Thom Rubber Development Company, a subsidiary
of the Vietnam Rubber Group (VRG) held an opening ceremony for its rubber
latex processing plant in
Construction
of the plant, in Kampong Thom province, began in 2014 with the RSS rubber
production line and a capacity of 3,000 tons in the first phase. The company
expects to expand the production line in 2016 to improve production and
business efficiency.
According
to VRG CEO, Mr. Tran Ngoc Thuan, since 2006 the Group has implemented an
investment program to develop rubber plantations in
Speaking
at the opening ceremony, Minister of Agriculture and Rural Development Cao
Duc Phat thanked the government and people of
“Since
2009
Deputy
Cambodian Prime Minister Yim Chhay Ly expressed the government’s support for
the rubber plantation project in Kampong Thom and other provinces as they
contribute to socio-economic development and create jobs for local people.
VRG currently
has 14 subsidiaries implementing 18 rubber projects in
Along
with investment in planting rubber trees the Group has also spent $30 million
on developing social infrastructure in project areas, in fields such as
transportation, electricity, water, education, health, and religion.
State
capital in Seaprodex to be divested
Deputy
Prime Minister Vu Van Ninh has decided that all State capital in seafood
producer Seaprodex is to be divested. He asked the Ministry of Agriculture
and Rural Development (MARD) to direct the company in the divestment and then
hand over the capital to the government. A decree will guide the pricing of
the company’s assets when turning it into the joint stock company.
He
also asked MARD to sell all the State capital in Seaprodex’s subsidiaries
this year, with MARD to report to the government on the process.
The
plan on equitizing Seaprodex was approved by the Prime Minister in October
2014. The value of the company has been estimated at VND1.48 trillion ($65.8
million), with State capital of VND1.368 trillion ($60.82 million).
Seaprodex’s
main business lines are seafood, aquaculture, seafood processing for export
and domestic consumption, production of animal feed, poultry, fisheries,
veterinary drugs, food imports and trade, equipment, machinery parts, raw
materials, fuels, passengers and cargo transport, warehousing and wharfs,
shipbuilding and repair, design of inland waterway vessels, hotels and
tourism, financial investment, labor supply, real estate trading, and fishing
logistics services that assist national defense and security at sea and on
islands. Its headquarters are in
Vinasoy's
Bac Ninh plant underway
The
Vietnam Soya Products Company (Vinasoy) officially opened the second phase of
the VinaSoy soymilk production facility in northern Bac Ninh province on
August 25.
With
an area of 61,000 sq m at the Tien Son Industrial Park (IP), the facility will
have a designed capacity of 180 million liters per year once completed, with
total investment for both phases of more than VND1.28 trillion ($56.8
million).
“In
our 18 years of development we have always believed in the good nutritional
value of soybeans,” Mr. Ngo Van Tu, Managing Director of Vinasoy, said. “We
constantly strive every day to improve our production to best meet the
nutritional needs of the community. We will try incessantly, bringing modern
science and technologies into our production to maximize the value of
nutrients to consumers.”
With
this facility in Bac Ninh and another in central Quang Ngai province, Vinasoy
is determined to increase production of its soymilk to over 1.5 billion
products per year, ranking it in the Top 5 largest soymilk producers in the
world.
Vinasoy
kicked off construction of the Bac Ninh facility in August 2012, with a
designed capacity in the first phase of about 90 million liters per year and
investment of over VND607 billion ($29.7 million).
The
company holds more than 82 per cent of the soymilk market share in
Prudential
working with highest number of hospitals
Prudential
The
program has taken the lead in signing up hospitals, with 83 now involved,
including 21 public hospitals. It also has the fastest time for the
settlement of procedures. As soon as Prudential receives information from a
hospital the patient will receive a guarantee within 60 minutes that their
medical costs are covered.
Mr.
Wilf Blackburn, General Director of Prudential, said he appreciated the
partnership with Phu Tho Hospital and the other 83 hospitals around the
country in the program. “This is proof of the rapid availability of superior
service, creating peace of mind and trust among Prudential customers,” he
said.
As one
of the leading companies in life insurance, Prudential Vietnam has more than
230 customer service centers and branch offices in the country. It is a
pioneer in providing services that meet the increasing needs of Vietnamese
customers.
Established
in 1965, Phu Tho Hospital is now the largest in the province, with 1,480
beds.
Green
tea and herb drinks challenging bottled water
After
a long time dominating
“There
have been months when new products in the herb product line have recorded
revenue 20-30 per cent higher than that of purified bottled water,” said the
manager of one local convenient store. There are six types of bottled herbal
drinks and four green tea products sold at his store.
Mr.
Nguyen Dang Hien, General Director of beverage supplier Bidrico, confirmed
that the bottled beverage market is now seeing intense competition from the
appearance of new product lines. “We have about 48 bottled water product
lines, 36 of which are uncarbonated and extracted from fruit or herbs,” he
said. “Because of the intense competition, in order to increase market share
we must push exports while focusing on areas around schools in different
types of partnerships.”
Recent
research by Euromonitor showed that
Vinalines
offloads 29.68% of Hai Phong Port
Vietnam
National Shipping Lines (Vinalines) expects to earn over VND1.55 trillion
($66 million) for its restructuring from selling nearly 30 per cent of
Vingroup,
the Vietnam Joint Stock Commercial Bank for Industry and Trade (Vietinbank),
and Oman’s State General Reserve Fund (SGRF) will secure 970 million shares
at VND16,000 ($0.71) per share.
The
transfer of 29.68 per cent of shares to strategic investors will reduce the
proportion of State ownership in the port to just over 60 per cent.
State
capital owned by Vinalines in
In the
first six months of this year the Port handled 11 million tons of cargo, up
17.5 per cent against the same period of 2014. Revenue reached nearly VND837
billion ($36.8 million).
Total
output of goods through
SSI
wide open to foreign ownership
Saigon
Securities Inc. (SSI) has announced it will completely remove its foreign
ownership limit.
The
company sent a proposal on the matter to the State Securities Commission
(SSC) and received approval on August 27, making it the first brokerage
company to gain approval for such a move since Decree No. 60 was announced,
which allows companies to determine their own foreign ownership limits.
The
removal of the limit will take effect from September 1, the same day as
Circular No. 60 takes effect.
SSI
previously held an extraordinary shareholders meeting, where it sought and
gained the go-ahead to seek permission to remove the limit.
Foreign
investors already hold 43.83 per cent of SSI’s charter capital.
Little
impact on real estate from exchange rate movements
Average
housing prices in
CBRE’s
experts wrote that domestic developers account for the bulk of supply in
Housing
prices over recent years have been significantly affected by supply and demand
factors rather than exchange rates.
“Projects
that have completed their construction will be less affected by exchange rate
volatility as the cost of imported raw materials for these projects were paid
for in the past,” the report stated. “Future projects, however, with imported
construction materials, will be under pressure from price increases.”
Foreign
investors and developers usually have profit targets calculated in USD, so
they may bear a heavy burden from sales made in VND even though the risk of
exchange rate fluctuations would have been carefully considered when they
developed financial plans for their projects.
According
to the report, local investors’ demand for investing in real estate may
increase in the time to come as property becomes seen as a popular investment
channel compared to gold, securities, and bank savings, in the context of
volatile gold prices, stock market fluctuations, and low interest rates.
Foreign
investors may also be less affected by the devaluation of the VND in terms of
their investment decisions. “Before the recent VND devaluation,
LDG
selling
The
LDG Group will introduce and open for sale land at the
On an
area of over 37 ha in Giang Dien commune in Trang Bom district, the project
comprises 752 land plots with an average area of 100-150 sq m for developing
townhouses and villas. The price for each land plot is expected to start from
VND268 million ($11,925).
The
Group targets to build
This
is the only project in Dong Nai to date that has been allowed to be built as
an isolated urban area protected by security fencing. Its landscape is
designed based on natural lakes and hills with a Japanese style, highlighted
by cherry blossoms.
The
LDG Group specializes in real estate and tourism and hospitality, with a
range of projects including Grand World on
Over
9,300 enterprises start operation in August
Up to
9,301 enterprises were founded in August with a total registered capital of
VND 55.2 trillion, according to the General Statistics Office.
The
number of newly-formed enterprises picked up 41% in comparison with July and
84.1% against the same period last year.
In the
eighth month, 1,359 enterprises resumed operation, representing a
month-on-month decline of 7.4%.
Meanwhile,
7,595 enterprises suspended operation, up 27.9% and 834 ones were dissolved.
Up to
15,243 enterprises added VND 481.5 trillion of capital.
Exports
see year-on-year increase of 9% in eight months
The
trade deficit in August was estimated at US$100 million, raising the total
figure to US$3.6 billion over the recent eight months, equal to 3.4% of the
total export turnover, according to the General Statistics Office.
Of the
total figure, the State sector recorded a trade deficit of US$13 billion
compared to US$9 billion last year while the foreign-invested sector posted a
trade surplus of US$9.4 billion in eight months.
Export
turnover was estimated at US$106.3 billion in the past eight months, a
year-on-year increase of 9%. Of the figure, the State and foreign-invested
sectors contributed US$31.7 billion and US$74.6 billion, down 2.5% and up
14.7%, respectively.
The
exports of phones and accessories took lead with nearly US$20 billion, up
31.1%, followed by garment US$15 billion, up 10.9%, electronics, computers
and spare parts US$9.9 billion, up 51.8% and footwear US$8.1 billion, up
20.9%.
The
Meanwhile,
the nation’s total import turnover in eight months reached US$109.9 billion,
a year-on-year increase of 16.4%. Of the figure, the State and foreign
invested sectors made up US$44.7 billion and US$65.2 billion, up 7.7% and
23.2%, respectively.
Items
with high growth in import value include cars (US$3.8 billion, up 80.2%),
machines, equipments and tools (US$18.9 billion, up 33.4%), electronics,
computers and spare parts (US$15.1 billion, up 35.3%), phones and accessories
(US$7.1 billion, up 36.3%) and fabric (US$6.8 billion, up 11%).
Earlier,
PM Nguyen Tan Dung approved the Project on the development of regional
markets in the 2015-2020 period with an aim to raise export turnover to
US$300 billion.
In the
first six months of this year
Indian
investors invested in 13 of the 21 economic sectors in
Indian
projects were primarily in the form of 100 per cent foreign capital, with 79
projects and $289.5 million, or 72 per cent, being in this form.
Second
most common was the business cooperation contract form, with four projects
and total investment of nearly $86.3 million, or 22 per cent. The remainder
were joint ventures, with 18 projects and $23.6 million, or 6 per cent.
The Foreign
Investment Agency recommended there be more promotions conducted in the
future to attract Indian investors. This will particularly apply to fields in
which
Vietnamese
business competitiveness is a major problem but economists seem to believe
merely increasing the number of operating firms by at least two million will
go some way to solving the problem.
Speaking
at the Autumn Economic Forum 2015 held in the central
Foreign
countries now find it easier to export goods to
“It
seems that Vietnamese enterprises have yet to work out how to the most
effectively integrate,” Tuan said.
Tuan
added that enterprises must change their operations in order to enhance their
competitiveness in a period of increased international integration.
Dang
Duc Thanh, chairman of the Vietnamese Economists Club said that the ideology
of economic development based on high levels of state investment was no
longer realistic.
He
pointed out several weaknesses in the country’s economy, including state
budget overspending, large public debt, low power purchasing power, a high
rate of bad debts, and high trade deficit.
Despite
considerable improvements in the recent period, competitiveness of Vietnamese
firms still remained modest.
The
country now has over 800,0000 enterprises but apparently only half of them
are still in operation.
Thanh
claimed there was evidence that "enterprises must account for at least 2%
of a country’s population. This means that
In
order to facilitate business growth, it would be necessary to speed up the
restructuring of state-owned enterprises which currently account for nearly
40% of the national economy.
He
added that it was also necessary to attract more foreign investment into the
country.
Eight-month
budget revenue meets 63.5% of year's estimate
The
State budget revenue in the first eight months of 2015 was posted at VND578.2
trillion (US$25.4 billion), equivalent to 63.5% of estimated figures for the
whole year, according to the General Statistics Office.
Of the
total figure, eight-month domestic collection was recorded at VND429.4
trillion (US$19.1 billion), equal to 67.2% of the year's estimate.
Of the
figure, VND136.3 trillion (US$6 billion) came from state owned enterprises
and VND85.8 trillion (US$3.8 billion) from foreign invested enterprises.
Revenue
from crude oil was estimated at VND44.8 trillion (US$1.9 billion), while
revenue from import-export activities was reported at VND101.5 trillion
(US$4.5 billion).
In the
meantime, the budget spending in eight months was VND690.8 trillion (US$30.7
billion), equivalent to 60.2% of the year's estimate.
In the
period, the country spent VND106.7 trillion (US$4.7 billion) for developing
infrastructure; nearly VND477.9 trillion (US$21.2 billion) for socio-economic
development plans and defence activities; and VND100.5 billion (US$4.4
billion) for assistance and debt payments.
Worldhotels
to make debut in Vietnam
Germany-headquartered
Worldhotels, one of the leading groups for independent upscale hotels
worldwide, on August 20 made its first public appearance in
According
to Worldhotels’ executive vice president in Asia Pacific, Roland Jegge, the
group which was founded in 1970 targets savvy business and leisure travelers
who seek an authentic and local experience. Each hotel in the Worldhotels
portfolio has been carefully selected to ensure it meets the group’s 1,000
strict quality criteria every year.
Worldhotels
now offers almost 500 hotels in 250 destinations and 65 countries worldwide.
In
Worldhotels
will back independent hotels with the power of a global brand while allowing
them to retain their individual character and identity.
The
group expects to expand the number of hotels and resorts in
The
group has launched several programs to benefit its customers, including
Worldhotels Peakpoints, a loyalty program for its membership cardholders,
Peakpoints Bag Tag, an innovative lost-and-found solution, and TravelSure, a
global emergency travel service free of charge for 12 months.
Jan-July
rice exports to
The
volume of rice exported to
The
ministry said
Meanwhile,
the Vietnam Food Association (VFA) reported that its members had exported up
to 445,000 tons of rice to
However,
data of the agriculture ministry showed strong falls in rice shipments to
major markets including
Though
The
respective falls were 34.4% and 38.6% for the
In the
January-August period,
Currently,
the export price of 5% broken rice is US$325-335 per ton, down US$15 per ton
over early this month, while the 25% broken type is offered at US$315-325 per
ton, dropping 10% per ton, according to Nguyen Thanh Phong, director of Van
Loi 2 Company in the Mekong Delta province of Tien Giang.
Paddy
(unhusked price) prices on the domestic market have slid VND100 (0.4 U.S.
cents) per kilo compared to last week. The IR50404 paddy is now sold at
VND4,250-4,300 per kilo while traders buy the IR50404 type at VND6,150-6,200
per kilo.
Ministry
warns expy management unit of delay
The
Ministry of Transport has told its public-private partnership (PPP) projects
authority to prepare a plan to replace the project management unit of Trung
Luong-My Thuan expressway project in case no progress is made in the coming
month.
Deputy
Minister of Transport Nguyen Van The gave the warning at a meeting on
Wednesday between leaders of the ministry and Cuu Long Corporation for
Investment Development and Project Management of Infrastructure (Cuu Long
CIPM), which is the project management unit.
Work
on the Trung Luong-My Thuan expressway project restarted six months ago but
the unit has not completed legal procedures, funding arrangement, selection
of contractors, technical design and site clearance as expected, according to
The.
Regarding
the site clearance, deputy general director of Cuu Long CIPM Nguyen Ngoc Toan
reported that so far the project’s capital contribution has reached 91.29%
and the corporation is working with relevant localities over site clearance
for the project.
Authorities
of
Therefore,
the ministry required Cuu Long CIPM and Trung Luong-My Thuan BOT Company to
urgently complete site clearance in 2015, otherwise the ministry will
consider replacing the project management unit.
Trung
Luong-My Thuan expressway is envisaged starting at Than Cuu Nghia T-Junction
near the end of the HCMC-Trung Luong Expressway and ends at the crossroad
with National Highway 30 near My Thuan Bridge.
The
expressway is designed to have a total length of 51.1 kilometers plus 4.5
kilometers of approach roads and costs nearly VND15 trillion (US$667.4
million). Upon completion scheduled in late 2018, the expressway will run
through the town of
Earlier
in November 2009, the Bank for Investment and Development of Vietnam’s
Expressway Development Company (BEDC) broke ground for the expressway project
but work got stuck due to financial constraints.
In
February 2015 the project got off the ground for the second time by a
consortium of Tuan Loc Construction and Investment JSC, Yen Khanh
Manufacturing Trading Service Co. Ltd., BMT Construction and Investment JSC,
Thang Loi Group, Hoang An JSC and
Better
investor sentiment props up stocks
Investor
sentiment continued to improve and foreign investors’ selling eased, pushing
the stock indexes of HCMC and
On
world markets, the Dow Jones Industrial Average rose by 3.95% on Thursday
(local time), its biggest one-day gain in four years, and buoyed Asian
markets to end up. This led cash to flow into HCMC and
Closing
the session, the VN-Index added 9.92 points, or 1.82%, to end at 555.81 since
large caps like GAS, CTG, BID and VCB contributed 1.6% to the main index’s
gains.
The
petroleum sector made a slight recovery thanks to the global oil price hike.
GAS stood at the ceiling price for the second straight day at VND44,400 per
share while PVD, PVT and PXS inched up.
Most
bank tickers advanced, with CTG of VietinBank gaining 3.74% at VND19,400 per
share and recording trading volume of over 3.3 million shares. According to
Bao Viet Securities Company, the bank plans to seek approval from the
Government and the central bank for a foreign ownership limit (FOL) increase.
HHS
jumped to the ceiling price on news that the firm would advance a 2014
dividend both in cash and by share for shareholders at 10% each. In contrast,
many other speculative stocks like AMD, FLC and HAI went down.
Overall,
liquidity improved on the HCMC market as trading volume reached over 127.7
million shares valued at some VND2.06 trillion (US$91.7 million), up 3% and
0.4% against the previous session respectively.
Foreigners
shifted to the buying side on the HCMC bourse but remained net sellers on the
On the
southern exchange, they net bought VND25.4 billion worth of shares and fund
certificates, including VND36.2 billion worth of fund certificates of
E1VFVN30 and VND21.6 billion worth of BID shares.
Meanwhile,
foreign investors offloaded VCB, HPG and MSN shares valued at VND23 billion,
VND18.7 billion and VND16.5 billion respectively.
The
The
HNX-Index on August 27 edged up 0.73% to reach 77.02 points at the close.
Investors traded 63.36 million shares worth a combined VND564 billion, up
around 30% and 16% against Wednesday respectively.
City
mulls financial backing for supporting industries
The
HCMC government will consider offering loan interest subsidies of 50% to 100%
in 5-7 years for enterprises in supporting industries to build workshops,
purchase machines and equipment for their production.
HCMC
vice chairman Tat Thanh Cang told the opening of the Vietnam Supporting
Industries Exhibition 2015 on August 27 that the loan interest support is
part of a program the city government plans to launch next month to build
strong supporting industries.
Enterprises
can get more information about the program via the
According
to Cang, supporting industries in HCMC are underdeveloped. To back the
development of these industries, the city government will strive to attract
more investments in the sectors of electronics, information technology,
mechanical engineering, food processing, pharmaceutical, rubber, textile,
garment and footwear.
In the
coming years the city is expected to develop some key products of local
supporting industries for the global supply chains of the mechanical
engineering, electronics, textile, garment, footwear, food processing and
rubber sectors.
Nguyen
Quoc Anh, chairman of the HCMC Rubber and Plastics Association, said many
plastics enterprises are in dire need of low-interest loans. Firms now have
to pay an average interest rate of around 10%, which is much higher than the
loans foreign-invested companies in the same field can get.
Anh
said the profit margin of the rubber-plastics industry is 10%, just enough
for enterprises to pay loan interest. This is one of the reasons why local
enterprises cannot compete with foreign-invested peers.
He
added his company is preparing to borrow VND8 billion with preferential rates
under the program the city government announced yesterday.
Vuong
Huu Man, deputy general director of Hiep Phuoc Industrial Park Company, told
the Daily at the exhibition running until Sunday that the park is preparing
to build many types of ready-to-use workshops for enterprises.
Phase
two of
Man
said the industrial park has prepared 100 hectares for lease to small and medium
enterprises (SMEs) as well as foreign investors in need of large land lots
for their projects.
The
HCMC government plans to set aside 500 hectares of land at industrial parks
for investment projects in supporting industries in 2015-2020. Besides, the
city will build multistory workshop buildings with total floor space of
100,000 square meters for SMEs in supporting industries.
HCMC
is determined to develop supporting industries in the next five years in
hopes of increasing its index of industrial production by 7% per year on
average.
Up to
95% of enterprises in HCMC are SMEs. However, they have to cope with many
difficulties in making products for supporting industries as they have to
import 70% of components and materials. The quality of their products is low.
Local
SMEs do not have much capital for quality improvement and production
expansion as it is difficult for them to take out bank loans due to limited
assets.
Source: VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VET/VIR
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Thứ Hai, 31 tháng 8, 2015
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