BUSINESS IN BRIEF 10/12
Ben Tre coconut value chain shared in Italy
Models and experience on enhancing the value of
processed coconut products from the Mekong Delta province of Ben Tre
resulting from public-private partnerships have been shared at a programme in
Rome.
The event was held as part of the 4P (Public-Private-Producers
Partnerships) programme organised by the International Fund for Agricultural
Development (IFAD) at its headquarters in Italy’s capital city on December 7.
Ben Tre Import and Export JSC (Betrimex), a Vietnamese
company specialising in processing and exporting products made from coconuts,
shared their experience in social activities within the 4P Project at the
event.
The 4P Project aims to facilitate relationship among
the public and private sectors and small producers, enabling farmers to
access to markets; the concerned parties taking risks, investing and sharing
profits together while improving economic life in rural areas in general and
raising incomes for disadvantaged farmers in particular.
In this project, to contribute to local socioeconomic development,
Betrimex deployed a model for linkages between businesses and farmers
following the value chain associated with coconuts.
According to the Ben Tre Coconut Association, the
coconut tree is typical of Ben Tre with the area in which it is cultivated
there stretching over 63,000ha, the largest of any province in the country.
However, the value created from coconuts for farmers is still not high and
not commensurate with the potential of the country's largest
coconut-producing region.
Low prices plus dependence on foreign traders make
coconut prices fluctuate constantly, having negative effects on farmers’
lives.
In Betrimex’s model, when they signed cooperation
agreements with the company, farmers received support with farming supplies
such as fertiliser, pesticides and technical training in organic farming to
maintain sustainable coconut plantations. The company also covered output
consumption for farmers and purchased coconuts right at their gardens.
Betrimex also gave out the floor price with the commitment
that even if the market price was lower than the ceiling price, the company
would purchase all coconuts from farmers at a higher level, and vice versa.
With incentives and effective support policies to
resolve farmers’ worries, after one year of implementation, currently about
540 households are participating in the company’s programme, cultivating an
approximate production area of 450ha with a yield of 4.4 million coconuts a
year.
Betrimex was the only Vietnam representative to share
its experience at the 4P Rome event. Participants reviewed midterm 4P
project’s results and exchanged lessons learned during implementation of the
project.
Forum repeats Government’s resolve to build
facilitating government
The Vietnamese Government is working to build a
consistent and effective administrative system that facilitates development
and acts for the sake of people and enterprises, considering this the most
important task in 2016-2020.
That commitment of the Cabinet was reiterated by Prime
Minister Nguyen Xuan Phuc while addressing the 2016 Vietnam Development Forum
(VDF 2016), themed “Facilitating and action-oriented government – New driving
force for development”, in Hanoi on December 9.
At this year’s forum, instead of presenting reports and
prioritised orientations, Vietnam’s Government agencies sought for
development partners’ and experts’ viewpoints and assessments of Vietnam’s
economic prospects in 2016-2020, impacts on and challenges to the national
economy in the coming years, and multi-dimensional effects of global
political and economic situations, and bilateral and multilateral trade
agreements on the national economy.
Listening to speeches at the forum, PM Phuc said they
are useful for Government agencies to precisely evaluate Vietnam’s situation
and development prospects amid complex and unpredictable developments in the
world, thereby devising appropriate measures to realise the set objectives
and plans.
In 2016, the country’s GDP growth is expected at 6.3
percent while foreign reserves are at a record of some 41 billion USD.
Despite a nosedive in global trade, Vietnam still enjoys a rise of around 8
percent in exports and 2-3 billion USD in trade surplus, he told development
partners.
Stressing the target of rapid, sustainable and
inclusive growth that leaves no one behind, he agreed with the development
partners on their opinions about factors that can strongly affect Vietnam’s
growth outlook such as fluid oil prices, emergence of trade protectionism,
public debt payment, non-performing loans, and climate change.
Vietnam will work harder to revamp business climate,
improve competitiveness, and have key business climate criteria comparable to
the average of Malaysia, the Philippines, Singapore and Thailand – four other
ASEAN countries. It will also encourage innovation, start-up and private
businesses, he said.
Another solution is pushing ahead with more
substantively economic restructuring, and State-owned enterprises
equitisation in line with the market mechanism, he said, asking the World
Bank (WB), especially its International Finance Group, to help Vietnam deal
with non-performing loans which, experts said, will influence macro-economic
stability and growth if they are not settled soundly.
He also called for the WB and other development partners’
support to ensure social welfares, protect the environment and respond to
climate change.
Co-chairing the VDF, WB Country Director for Vietnam
Ousmane Dione congratulated the country on a stable macro-economy for five
straight years, deeming this as an important foundation to accelerate growth
and development.
He said to achieve the set targets, Vietnam should
perfect its market mechanism and market-oriented approach. The socio-economic
development plan for 2016-2020 should be aimed to bring about greater
benefits for people. ODA capital also needs to be used in a more effective
fashion in order to promote the private economic sector.
He expressed his belief that with the Government’s
commitments and strong actions, Vietnam will attain ambitious goals, and
development partners will assist it with knowledge, experience and best
practices.
The VDF 2016 is a new approach to the cooperation
relationship between Vietnam and development partners. This approach is
derived from the Consultative Group Meeting for Vietnam and the Vietnam
Development Partnership Forum.
VIB wins “Bank of the Year 2016” award
Vietnam International Bank (VIB) has won the “Bank of
the Year 2016” award, making it the first local bank to receive the
prestigious award for two consecutive years.
The award was presented by The Banker (Financial Times)
magazine in London (United Kingdom) on December 7.
In addition to VIB’s efforts in business operations
reflected by Tier 1 capital, total assets, net profit, return on equity (ROE)
and non-performing loan ratio, The Banker highly praised the bank for its
transparent management model, sustainable growth strategy, and efficient support
for Start-up and small and medium-sized enterprises.
Besides, VIB’s application of advanced banking
technologies, continuous innovation, and efficient and effective marketing
activities during the year based on its understanding of market segments were
also well recognised by The Banker, which then helped the bank make a
difference on the market.
Over past 10 months, the bank’s total assets and
capital adequacy ratio (CAR) reached more than 93 trillion VND (over 4
billion USD) and 14.46 percent, respectively and the bank's equity reached
8.38 trillion VND, while its non-performing loan ratio decreased sharply to
1.49 percent.
VIB is one of the few local banks selected by the State
Bank of Vietnam (SBV) to pilot Basel II. Among the banks selected for pilot
implementation of the Basel II, VIB has the highest readiness level with its
CAR of approximately 13 percent according to Basel II standards.
Specifically, VIB’s advanced technology platform is also well in place for
Basel II.
Previously, VIB was approved by SBV to increase its
charter capital to more than 5.64 trillion VND in a move to help expand the
bank’s business activities.
In the latest report by Moody’s, VIB had its credit
rating upgraded to B2, making it continue to be in the top banks with the
leading credit ratings in the market.
The “Bank of the Year” award is exclusively granted to
the top bank in each country. It is the world’s longest running and most
prestigious international banking title.
Each year, The Banker selects one winning bank for each
of the countries judged. Over 1,000 applications from 154 countries are
collected and judges select winning banks based on evidence provided to
determine the bank in each country which saw the maximum overall progress in
the past 12 months.
The judging is carried out by an editorial committee on
the basis of submitted entries, data from The Banker's Top 1000 database and
the editors' personal knowledge of the market.
Vietnamese firms updated on Cambodia’s investment
policy
The Cambodian Government’s new policies on investment
attraction and facilitation to foreign investors were introduced to
Vietnamese enterprises attending the 7th Mekong Forum in Phnom Penh on
December 9.
Accordingly, the Cambodian Government will neither
restrict currency trading nor control capital and goods prices, while
maintaining one-stop-shop services, and import tax exemption for machinery
and materials.
Representatives from the Vietnamese side also updated
participants on the country’s bilateral economic cooperation policies,
affirming that the Vietnamese Government always creates favourable conditions
for and encourage Vietnamese companies to expand investment and business in
Cambodia.
Hosted by the Vietnam, Laos and Cambodia Economic
Development and Cooperation Association (VILACAED) of Vietnam, the event is
part of activities to mark the 50th founding anniversary of Vietnam-Cambodia
diplomatic ties.
It offered a good chance for enterprises from the two
countries to share information and establish partnerships, contributing to
further promoting trade links within the ASEAN Economic Community.
On the occasion, several Vietnamese outstanding
enterprises and entrepreneurs were presented with awards in recognition of
their effective investment and business in Cambodia and remarkable
contributions to the country’s socio-economic development.
Vietnam is one of Cambodia’s leading economic partners
with two-way trade reaching 3.4 billion USD in 2015.
As of May 2016, Vietnamese businesses operated 183
projects worth 2.85 billion USD in Cambodia.
Meanwhile, Cambodia ranked second among over 60
countries and territories attracting Vietnamese enterprises. Direct
investment from Vietnam in Cambodia has recorded a strong surge, especially
in agriculture, forestry, energy, finance-banking, insurance, and
telecommunication.
Grab to pay drivers’ taxes soon
Grab, a technology company offering a wide range of
ride-hailing and logistics services through its mobile app, will start paying
taxes on behalf of its partner drivers from December 12.
Grab Vietnam is assigned to collect and pay taxes on
behalf of its partners who do not pay taxes via transport business units.
Therefore, the firm is responsible for filing and paying value-added tax and
personal income tax imposed on its partner drivers.
Grab’s partner drivers in Vietnam are taxed 4.5% on
their earnings, of which 1.5% is personal income tax and 3% is value-added
tax. In addition, they pay 1% from Grab’s rewards.
The firm will charge service fees on its ride-hailing
mobile app (20% of earnings) but will not deduct tax payments for
organizations and individuals paying taxes via transport business units.
These organizations are responsible for paying taxes on behalf of their own
partners.
In related news, Uber, also a ride-hailing service
provider, has finished its declaration and tax payment procedures. The
company also pays taxes on partner drivers’ behalf when using the Uber app.
IFC and Loc Troi join forces in sustainable rice
farming
International Finance Corporation (IFC), a member of
the World Bank Group, said on December 7 it is cooperating with Loc Troi
Group to apply sustainable farming standards and practices in the local
firm’s rice value chain.
The partnership is to help Vietnam’s agricultural
sector to expand rice trade globally, increase profit and improve the
livelihoods of farmers.
According to an agreement between the two sides, IFC
will support Loc Troi to apply the Sustainable Rice Platform (SRP) standards
so that farming households will be able to use resources efficiently. Around
4,000 farmers will be trained to produce high-quality rice in the initial
phase and the number of beneficiaries will increase in the next phases.
IFC has invested in and given advice to the private
sector in developing countries over the past 60 years.
Its investments in Vietnam have reached US$5.6 billion
since 1994. The organization has supported Vietnam to carry out 120 projects
in sectors like infrastructure, production, agriculture, renewable energy and
finance.
Huynh Van Tho, chairman of Loc Troi Group, was cited in
an IFC statement as saying that Loc Troi will strictly monitor quality and
carefully check all stages of its value chain. Paddy growers will be trained
to apply SRP standards to their farming areas to build a rice brand that can
compete on world markets.
Ping Kitnikone, Canadian Ambassador to Vietnam, said
IFC’s consulting activities in Vietnam’s agriculture sector are backed by the
Canadian government. Canada supports Vietnam to pursue sustainable economic
growth by improving the competitiveness of its agriculture and taking
measures to cushion the impact of climate change.
The initiative is to help Vietnam with its agricultural
restructuring program whose objectives are to improve the farming sector’s
competitiveness and make the most of opportunities on global markets.
Vietnam, one of the world’s biggest rice exporters, is
facing tough competition with Thailand, India, Pakistan, Cambodia and
Myanmar.
Kazakhstan wants to cooperate with Vietnam in railway
sector
Kazakhstan expressed its interest in cooperating with
Vietnam in railway transport, thus promoting bilateral trade between the two
countries in the years to come.
Last year saw a sharp fall in bilateral trade due to
Kazakhstan’s economic recession. Specifically, two-way trade reached
US$162.1 million, falling 71% against 2014, according to data released on
December 7 by the embassy of Kazakhstan in Vietnam.
Of the total, Vietnam’s exports to Kazakhstan accounted
for US$153 million, down 70% year-on-year, and imports made up US$9.1
million, dropping 87%.
At a press conference held on December 7 on the
occasion of celebrating 25 years of Kazakhstan’s Independence Day, Beketzhan
Zhumakhanov, Kazakh Ambassador to Vietnam, said bilateral trade in the first
ten months of this year has bounced back to US$275.5 million, with Vietnam’s
exports and imports making up US$155.8 million and US$120.5 million
respectively.
In May 2015, Vietnam and the EAEU, which comprises
Armenia, Belarus, Kazakhstan, Kyrgyzstan and Russia, signed a free trade
agreement (FTA), which will spur trade between the two sides as 90% of tariff
lines are slashed to zero, Beketzhan Zhumakhanov added.
According to the embassy, Vietnam’s major exports to
Kazakhstan include farm produce and garments, while it imported steel and
vehicles from the member state of the EAEU.
However, cargo transport from Vietnam to Kazakhstan
faces many challenges owing to the geographical distance. The shipping time
could last around two months, affecting the quality of farm produce exported
from Vietnam.
Transport is an important factor for fostering business
and trade cooperation between the EAEU and Vietnam. Therefore, Kazakhstan
wants to boost cooperation with Vietnam in the railway sector to facilitate
trade, the ambassador said.
The ambassador also believed the opening of a railroad
will make it easier for transporting goods of ASEAN member countries to the
EAEU.
Carbon footprint vital for company position
Enterprises need to calculate their carbon emissions
and announce non-financial statistics besides financial ones to position
themselves in a changing market, heard a conference named Carbon
Footprint-Corporate Solutions for Sustainable Growth in HCMC on Tuesday.
Min Hwa Hu Kupfer, chairwoman of Vietnam Holding (VNH),
told the conference that a firm’s investment and development go hand in hand
with social and environmental responsibilities, which is an inevitable trend.
Green investment is not new to foreign businesses but
quite strange to Vietnamese peers. Therefore, VNH held the conference to help
local companies understand and do carbon footprint calculations.
Attendees at the conference also discussed climate
change, policy and corporate solutions to manage energy consumption and
greenhouse gas emissions.
The chairwoman said environmental information
disclosure, including carbon footprint, will make differences among
companies.
Vu Quang Thinh, chief executive officer of VNH, said
enterprises have to find solutions to contribute to the fight against climate
change and rising sea levels which will directly affect their operations.
Tran Anh Dao, deputy general director of the Hochiminh
Stock Exchange, told the conference that businesses create jobs for people
and pay taxes to the State. However, they also cause greenhouse gas emissions
that contribute to global warming and extreme weather conditions.
Dao said now is the right time for businesses to act to
protect the planet for future generations.
Nick Beglinger, an expert in sustainable growth and a
member of the World Wild Fund for Nature, said local firms could seek advice
from experts to calculate their carbon emissions when they consider new
investment projects.
They can make clear price differences and the
efficiency when choosing clean or dirty technologies, coal-fired or renewable
energy, and baked or unbaked bricks, to name just a few. He said an initial
investment may be huge but operating costs will drop in the long term.
Beglinger affirmed that in the long run investment in
clean technology will bring in higher profit than outdated technology.
Investors will prefer enterprises using clean technology, he noted.
In the near future, consumers will buy products of such
businesses. Firms’ statistics about environment, energy and gas emissions
will be part of their competitiveness indexes, he added.
Expert Nguyen Dang Anh Thi told the conference that many
big enterprises have pledged to provide information about electricity, water
and heat consumption and carbon emissions on products’ tags by 2018.
Customers will look at businesses’ actions when making purchases rather than
only shareholders and State management agencies.
He said capital mobilization for projects that apply
clean technology will be easier than for those with dirty technology.
Min of VNH said enterprises have to do carbon footprint
calculations and control carbon emissions as many more shareholders and
investors pay attention to these matters. She said VNH itself makes carbon
footprint calculations and wants a low level of carbon emissions in its
portfolio.
DAS Capital to invest US$150 million in ITA
U.S.-based financial investment fund DAS Capital plans
to pour around US$150 million into Tan Tao Investment & Industry Corp.
(ITA) to become a strategic shareholder of the Vietnamese industrial zone
developer.
A source from the local firm said a delegation of DAS
Capital had a meeting with ITA leaders to discuss the deal early this week.
Headquartered in Los Angeles, DAS Capital has opened
many branches in Asia such as Hong Kong, Singapore, South Korea, Japan and
Malaysia. With a portfolio of US$5 billion, it is exploring investment opportunities
in emerging markets such as Vietnam.
DAS Capital has been interested in ITA shares and is
looking for opportunities to become its strategic shareholder, the source
said.
Both sides have reached agreement in principle on some
basic matters. In the first stage, the fund will buy around US$20 million
worth of ITA shares before adding more capital to raise the total investment
to US$150 million.
DAS Capital has viewed Vietnam as an emerging and
potential market with high gross domestic product (GDP) growth in the region.
Notably, Vietnam is going to sign many new-generation free trade pacts,
making it a plus in attracting foreign investors.
This is the first time DAS Capital has considered
investment in Vietnam. Aside from developing industrial zones, ITA has tapped
many other sectors such as health, education, real estate, thermal power and
infrastructure.
Fintech firm GoBear enters Vietnam
Tran Nhat Khanh, country director of GoBear Vietnam,
looks on - PHOTO: DUC TAM
HCMC - Fast-growing fintech firm GoBear, Asia’s first
comprehensive metasearch engine for insurance and banking products, has made
debut in Vietnam by launching its comparison services for the products in the
fields.
The Singapore-based startup said it offers customers in
Vietnam its financial product comparison that is online, easy to use,
personalized and free of charge.
Andre Hesselink, founder and chief executive officer of
GoBear, told the launch event in HCMC on December 7 that the company has
expanded to Vietnam to bank on growth opportunities driven by increasing
numbers of customers in the fields and Internet users and high smartphone
penetration in this market.
GoBear’s entry into Vietnam follows its successful
operations in other major Asian markets. The firm was launched in Singapore
last year before extending its presence to Thailand, Malaysia, Philippines
and Hong Kong.
GoBear said in a statement that more than 4.5 million
users have put their trust in the firm when it comes to comparing insurance
and banking products such as credit cards and personal loans. As one of the
fastest growing fintech startups in Asia, GoBear has helped simplify
financial shopping experience which is often complicated and full of jargons.
“GoBear was formed on the idea of the need for an
online tool to help users search for complex financial products in a
transparent and unbiased way… we provide a transparent overview of the market
and with our personalized search and filtering functions, consumers can have
a side-by-side comparison easily based on their needs,” Hesselink said.
In Vietnam, GoBear provides credit card and personal
loan comparison services at gobear.com/vn for nearly 200 credit cards and 30
lending facilities selected from a variety of some 50 existing banks and
finance companies in the market.
Hesselink said it is expected that with GoBear
customers can find products that they are looking for.
Tran Nhat Khanh, country director of GoBear Vietnam,
said GoBear does not sell products directly to customers but instead simply
offers a free and transparent comparison experience based on personalized
needs.
“Users do not buy anything from GoBear. We display
information about different credit cards and personal loans available in the
market for users to easily compare and choose the ones that best fit their
needs,” Khanh said.
SBV: Secured loans account for majority of bad debt
Bad debts secured by assets make up most of all the
non-performing loans but banks still have difficulty handling those
properties, resulting in a deadlock in debt settlement, said the State Bank
of Vietnam (SBV) at a conference in HCMC on December 6.
According to a notice released by the central bank’s
media department, secured debts make up more than 90% of the total bad debt.
Credit institutions have met obstacles in handling
mortgaged assets due to a lack of regulations or inconsistent laws, the
department said. Meanwhile, the 2015 Civil Code, which will take effect early
next year, has no specific regulations guiding how to take over mortgaged
assets.
A number of lenders told the conference that they have
encountered difficulties when allowing clients to register real estate
projects as mortgaged assets due to unclear regulations on the handling of
mortgaged assets. Therefore, it takes credit institutions much time and
effort to deal with mortgaged assets.
Foot-dragging law enforcement is costly and places
significant impact on banks’ operations.
Vu Dinh Anh, a financial expert, noted that handling
mortgaged assets is meant to offset losses caused by bad debt. However,
borrowers usually do not closely cooperate with and sometimes confront
lenders when they deal with mortgaged assets.
Anh said both sides should coordinate to cope with this
matter efficiently.
Lawyer Nguyen Thi Phuong from the Vietnam Banks
Association said the right to deal with mortgaged assets is a civil right.
Credit institutions are permitted by law to handle mortgaged assets.
As the 2015 Civil Code that will take effect from
January 2017 does not have specific regulations on mortgaged asset
confiscation, the Ministry of Justice should coordinate with relevant ministries
and agencies to study and issue such regulations to support lenders,
according to the central bank.
SBV pays tribute to GIZ Vietnam
The State Bank of Vietnam (SBV) held an awards ceremony
to honor GIZ Vietnam leaders and managers with the Diploma of Merit and
Commemorative Medal, given by the SBV Governor on December 8.
Since 1993, the German government through GIZ has
repeatedly organized large scale programs and projects to support the
Vietnamese banking system in its projects to develop in a sustainable manner.
The Ambassador of the Federal Republic of Germany in
Vietnam Mr. Christian Berger, witnessed Deputy Governor of SBV Mr. Nguyen
Dong Tien award the Diploma to the Country Director of GIZ Vietnam, Mr.
Jochem Lange.
The Commemorative Medals for contribution to the
development of the Vietnam Banking system have been awarded to Mr. Lange,
GIZ's Chief Technical Advisor and Program Director in Viet Nam, Dr. Michael
Krakowski, and other managers and staff of the program to acknowledge the
significant contributions of individuals and GIZ in helping to reform and
develop the Vietnam banking system.
SBV’s Governor highly praised the value of GIZ during
the recent times of banking changes, seeing this as a symbol of the “deep,
trusted, sincere friendship” and expressed the hope that SBV would continue
to receive the support from the German government via the Embassy of the
Federal Republic of Germany in Vietnam and GIZ.
’The Prime Ministers of both countries have mutually
agreed that the project of developing the financial system as part of the
strategic cooperation relationship is especially valuable in the Hanoi Joint
Statement issued in October 2011”, said Ambassador Berger.
GIZ has actively cooperated and supported SBV to
finalize the necessary mechanisms and regulatory framework. This has
allowed the central bank to fulfill its function as well as ensuring a safe
and effective operation for the banking system.
The German organization has played a huge role in
helping to design the Law on State Bank of Vietnam, the Law on Credit
Institutions, monetary policies and especially the open market operations,
anti-dollarization strategy and planning, the internal management framework
and internal audits for commercial banks.
GIZ has also always focused its efforts on improving
the capacity of bank staff. GIZ and SBV have held comprehensive basic and
in-depth vocational training programs both in Vietnam and overseas for
banking directors and experts.
With its Macroeconomic Reforms - Green Growth Program,
GIZ has been actively cooperating with SBV to finalize the mechanism and
policy framework while at the same time improving the capacity of the
finance-banking-green credit, helping the central bank to successfully
implement the green growth mission and reform the economy in a sustainable
manner.
Even though the implementation of the program has not
been long, GIZ has made remarkable contributions to the writing of many
policies and initiating projects, laying the foundation for the reform and
development of the green banking in the future.
In order to implement the National Strategy for Green
Growth and the National Action Plan on Green Growth for the 2014 – 2020
period, the SBV's Governor issued Directive No.03 dated in 2015 to promote
green credit and social and environmental risk management in the credit
activities.
Vingroup plans to divest stake in Phat Loc Express
Vingroup is planning to divest its stake of 79.96 per
cent in Phat Loc Express, formerly known as Vinlinks.
The Nikkei Asian Review revealed that Phat Loc Express
achieved sales of over $9 million in 2015, and the purchase price will likely
be a similar amount.
A representative of Vingroup, however, told VET that
Vingroup may sell the logistics company at an, as yet, undisclosed time so
detailed information from Vingroup has not yet been revealed. “We have just
mentioned this issue in a shareholder meeting,” she added.
Vingroup last month signed a memorandum of understanding
with SG Holdings, the parent firm of Japanese logistics provider Sagawa
Express. This move would see the latter expand its presence in Vietnam.
SG Holdings said in a statement that the partnership
with Vingroup aims to solve the logistics issues in tandem with the growing
retail business, according to Nikkei.
Vingroup launched Vinlinks in July last year after
acquiring almost 80 per cent of the Hop Nhat Group which was bought for the
equivalent amount that Vingroup will selling Phat Loc Express for. The Nikkei
also revealed that in addition to the stake purchased from Vingroup, SG
Holdings will buy the entire stake of Phat Loc Express.
The Phat Loc Express is the fifth largest delivery
service player in Vietnam with warehouses in four major provinces and cities
including Hanoi, Ho Chi Minh City, Da Nang and Can Tho. It has over 200
transaction points across the country.
SG Holdings entered Vietnam in 2012. Last month, its
subsidiary Sagawa Vietnam completed the construction of a multi-tenant
facility in Dong Nai, after opening door-to-door delivery service counters in
Takashimaya in Saigon Centre, one of the Ho Chi Minh City’s biggest shopping
malls.
Vingroup is one of Vietnam's leading property
developers with a network of consultant partners and leading global designers
and quality real estate projects and services. It has recently secured an
additional international syndicated loan of $300 million to finance its real
estate developments and reorganize its debts, following its first
international syndicated loan of $150 million in 2013.
Alongside the core business of real estate development,
Vingroup is the operator of the local retail market network which includes
shopping malls, supermarkets and convenience stores.
Previously, Vingroup signed cooperation contracts with
nearly 250 local enterprises in seven industries - food, cosmetics,
stationary, toys, household appliances, fashion and textiles. This was done
under its program to support and promote domestic production. The enterprises
are from eight cities and provinces nationwide.
Vingroup and its subsidiaries VinCommerce, Vincom
Retail, VinEco, and VinDS offered solutions packages for these enterprises,
such as incentive policies to distribute their products within the group’s
networks and to enhance their brand presence.
VnSteel lowering ownership at KMT
Vietnam Steel Corporation (VnSteel) has registered to
sell over 4.7 million KMT shares of Central Vietnam Metal Corporation
(Cevimetal).
After the sales, VnSteel will lower its ownership rate
from 82.95 per cent to 36 per cent. Expected trading will happen from
December 12, 2016 to January 4, 2017 through order matching and agreements.
“The target of selling KMT shares is to divest”, said Mr. Doan Phong, member
of Finance Department at VnSteel told VET.
KTM shares are traded at about VND 10,000 ($0.44) per
share on the stock market. VnSteel will receive about VND47 billion ($2.06
million) based on this price. This share increased significantly in November.
Currently VnSteel holds nearly 8.2 million KMT shares
(the rate of 82.95 per cent). After successfully divests, VnSteel will reduce
its ownership rate to about 36 per cent of KMT chartered capital.
Cevimetal is a subsidiary of VnSteel. Their main
business is supplying different kinds of steel to various projects and
importing-exporting metal, steel billets. During the first nine months of
2016, the net sale of Cevimetal reached VND1.3 trillion ($57.22 million).
After-tax profit was VND4.8 billion ($211,340) which was twice the amount the
same time in 2015.
In the third quarter off 2016, the net sales of
Cevimetal reached VND 342.3 billion ($15.05 million). After-tax-profit was
VND793 million ($34,907) which was higher than their profit after tax in the
second quarter 2016.
The total assets of Cevimetal were worth about VND504
($22.2 million) in the third quarter 2016. The company equitized and
officially went into operation in the form of a joint stock company in
January 1, 2006. Cevimetal has a nationwide network of units; it
supplies various kinds of steel with an attractive sales policy.
VnSteel was established by merging Metal Corporation
and Steel Corporation. The birth of VnSteel is associated with the history
and development of the country's metallurgical industry. It has set a solid
foundation for the development of the domestic steel industry. VnSteel
operates as a joint stock company with over 50 subordinate units,
subsidiaries and associated companies.
The main sectors of VnSteel are steel manufacturing and
business and the materials and equipment related to the steel industry. In
addition, VnSteel also enhances business areas such as finance investment,
port operators, logistics services, warehousing, offices, investment and
trading infrastructure of industrial zones and real estate, and labor export.
Along with market development in Vietnam steel, VnSteel
also pays attention to sustainably develop the environment, protect it and
use national resources reasonably. Moreover, this company takes care of
social benefits.
January-November import of cars decreases
Vietnamese auto businesses spent US$174 million to
import some 10,000 complete built up (CBU) units in November, an increase of
1,000 units and $12 million in comparison with the previous month.
A report from the General Office of Statistics (GOS)
revealed that some 97,000 cars were shipped to Viet Nam during the
January-November period, with the total value at nearly $2 billion. The
figures marked a year-on-year decrease of 12.9 per cent in volume and 19.6 per
cent in value.
The decrease in total value is said to be a result of
the adjustment of special consumption tax early this year. As of January 1,
the special consumption tax on imported cars is calculated keeping in mind
their cost, insurance and freight value, plus current import tariff.
Seven months later, the tax witnessed another
adjustment as it was significantly increased by between 60 per cent and 150
per cent of the car value on vehicles with high engine displacement.
With the decrease in both volume and value in the first
eleven months of this year, total import value this year will definitely be
lower than the previous year.
The country last year saw 126,403 imported CBUs, with
the value of more than $3 billion, according to the GOS.
Harley-Davidson opens showroom in Da Nang
The first American-made motorcycle, the iconic
Harley-Davidson, has introduced its first showroom in the central and central
highlands region in Da Nang city.
It’s also the third official authorised agent of the
American motorcycle manufacturer in Viet Nam after HCM City and Ha Noi.
The Da Nang-based centre, which was invested by Al
Naboodah International (Viet Nam) company, will provide full service, spare
parts, and accessories for modification among motorcycle lovers in the
central region.
The centre also introduces new manufactured motorcycle
models – Milwaukee-Eight, Touring, the Sportster, Harley Davidson Street 750,
Iron 883, and Custom Vehicle Operations (CVO) – from the mother company.
Harley Davidson Da Nang also offers hire-purchase and
Harley Owner Group Assistance (a roadside rescue and recovery facility) for
customers.
The famous American motorcycle manufacturer introduced
its first showroom in HCM City in 2013 and Ha Noi in 2015.
Harley Davidson was made popular in HCM City during the
American war in the 1960s, but the motorcycle has become a firm favourite on
Ha Noi streets, with the capital’s 80-strong Harley-Davidson club making its
debut in 2010.
According to the Viet Nam Registration Department,
8,682 motorbikes with engine capacities of more than 175 cc were imported to
Viet Nam between 2014-15.
Interbank rate peaks after 7 months
Overnight rate as well as one-week and two-week
interbank interest rates shot up in December to a general 3-3.5 per cent per
annum, in comparison with the below one per cent in the previous month.
In the past two weeks, interbank interest rates have
shown the tendency to increase with great amplitudes for all three maturity
dates, the Research and Investment Advisory Department at Bao Viet Securities
Joint Stock Company (BVSC) said.
The average overnight rates increased by 1.45 per cent
to 3.04 per cent annually, the one-week interest rates increased by 1.49 per
cent to 3.18 per cent, whereas the two-week rates increased 1.34 per cent to
3.42 per cent annually.
The State Bank of Vietnam announced credit growth at
the end of November 2016 to be 15.8 per cent, while capital formation growth
reached 15.2 per cent.
According to BVSC, the rapid increase in credit growth
for the last month was not an irregular movement, as the demand for loans
across the economy generally spikes at the end of the year. Surplus liquidity
due to rapid credit growth, together with a certain amount of VND leaking
into the foreign currency sector following several recent exchange rate
changes, would serve as one of the direct causes pushing interbank interest
rates to a new level.
BVSC expected interbank rates to maintain the current
high in weeks to come, fluctuating at 3-4 per cent per annum.
Half of Asia-Pacific SMEs predict growth in exports:
survey
Nearly half of small- and medium-size enterprises
(SMEs) in the Asia- Pacific region say that their revenue from intra-regional
exports will grow over the next 12 months by an average of 22 per cent,
according to a global research survey conducted by FedEx Express.
SMEs in the Asia-Pacific region, which derive an average
of more than 68 per cent of their revenue from exports, are capitalising on
the growth potential of other markets in the region.
Karen Reddington, president of FedEx Express in the
Asia-Pacific region, said research showed that despite challenging global
economic conditions, SMEs in the region were tapping other Asian markets for
growth opportunities.
“What emerges is a broadly optimistic picture, with SME
exporters in the region planning to embrace technology and the digital
economy to help overcome a wide range of business challenges, from higher
production costs to increasing competition,” she said.
The study also revealed a sense of optimism among the
SMEs largely fueled by e-commerce potential.
Eighty per cent of the region’s SME exporters leverage
e-commerce to sell to other markets, and 44 per cent of them foresee growth
in e-commerce revenue in the next 12 months.
In line with the boom in e-commerce, momentum is
building behind m-commerce (purchases made using mobile devices) and social
commerce (purchases made via social media platforms).
Some 68 per cent of small businesses in the region are
currently selling their products via mobile applications and 67 per cent
offer customers the option of making purchases via social media platforms
like Facebook.
M-commerce and social commerce account for an average
of 22 per cent of regional SMEs’ export-driven revenue.
SMEs believe that both kinds of e-commerce will
continue to drive growth. Nearly half of all SMEs expect their m-commerce (47
per cent) and social commerce-driven (49 per cent) revenue to increase over
the next 12 months.
Competing in the digital economy, however, presents new
challenges. Almost four out of ten (38 per cent) of SMEs in the region cited
increasing international competition as a top business challenge.
To navigate this new competitive landscape, small
businesses also see technology as the means to cope. Thirty-seven per cent of
them say they plan to invest in new technology to overcome business
challenges, and almost two-thirds (65 per cent) believe that doing so will
also help them export more in the future.
SMEs also see the value of an efficient supply chain,
which is essential to meet customer expectations, helping SMEs win customers
and improve bottom lines.
More than 90 per cent of Asia-Pacific SMEs agree that
“logistics plays an important part in their export businesses”.
E-commerce, in particular, is driving demand for faster
delivery, with a significant 66 per cent of SMEs in the region engaged in
e-commerce, indicating that they are willing to pay a premium for faster
delivery services.
“This research study confirms our long-held view that,
for SMEs, technology and supply chain solutions dramatically level the
playing field in competing with larger players,” Reddington said.
“Increasingly, SMEs are investing in technology and
looking to their logistics providers to help them adapt to their customers’
evolving needs, penetrate new cross-border markets, and ultimately ensure
that their businesses remain competitive and sustainable.”
The independent study titled “Global Trade in the
Digital Economy: Opportunities for Small Businesses” was conducted by Harris
Interactive on behalf of FedEx to provide insights into global export
opportunities and challenges facing SMEs.
Completed in September, the results were based on
interviews with a total of 9,000 senior executives of SMEs from 17 markets
across four regions.
FedEx Express, a subsidiary of FedEx Corp., is the
world’s largest express transportation company, providing delivery to more
than 220 countries and territories.
APEC dialogue looks to create dynamism for growth,
integration
An Asia-Pacific Economic Cooperation (APEC) dialogue
with businesses was held in Ha Noi on December 8 with the theme “Creating new
dynamism for growth and integration.”
The dialogue, an initiative of Viet Nam as the host of
APEC activities in 2017, drew some 400 delegates from international and
regional organisations, commerce chambers, associations and businesses from
APEC economies.
Alan Bollard, executive director of the APEC
Secretariat, and Antonio Basilio, director of the APEC Business Advisory
Council’s International Secretariat, were among the keynote speakers.
Opening the dialogue, Deputy Foreign Minister Bui Thanh
Son, chairman of the 2017 APEC Senior Officials’ Meetings, said Viet Nam
wants to turn APEC into a forum for the sake of people and businesses.
Diverse activities involving enterprises will take place throughout 2017.
Meanwhile, Chairman of Ha Noi People’s Committee Nguyen
Duc Chung highlighted the Vietnamese capital city’s reform and integration
efforts and reiterated commitments to revamping local business climate change
towards a big hub in Asia-Pacific.
He highly valued the APEC dialogue’s cooperation focus
on business facilitation, trade liberalisation and technical economic
investment and cooperation, adding that Ha Noi expects APEC 2017 will
effectively implement the prioritised orientations on sustainable and
inclusive growth, creativity and regional economic connectivity to improve
small and medium enterprises’ competitiveness and ensure food security and
sustainable agriculture.
He stated that Ha Noi welcomes and will always create a
favourable environment for business cooperation for mutual development. It
hopes more and more APEC partners will consider this city a trustworthy
destination for cooperation and investment.
At the dialogue, entrepreneurs appreciated APEC’s
efforts to promote trade and investment liberalisation and build an open and
transparent business and investment environment. They also voiced their wish
to join in and practically contribute to APEC’s cooperation in 2017.
VN, Malaysia work to meet $15b trade target
Bilateral trade between Viet Nam and Malaysia should be
strengthened further as the two countries have set a two-way trade target of
US$15 billion by 2020.
During a dialogue with 20 Malaysian firms in Kuala
Lumpur on Thursday, Vietnamese ambassador Pham Cao Phong answered many
queries and promised to convey the suggestions made to Vietnamese
authorities.
Malaysian firms spoke highly of Viet Nam’s trade
policies and offered suggestions to increase exports to Malaysia, including
conducting marketing campaigns at home and abroad, building and promoting
trademarks for favourable products and improving the quality of food
preservation. Malaysia currently imports agro-forestry-fishery, iron and
steel products from Viet Nam.
Several Malaysian firms also expressed interest in
building processing plants and preservation warehouses in Viet Nam.
At the event, the Vietnamese embassy and Malaysian
firms agreed to establish a Malaysia-Viet Nam Trade Office in Malaysia, which
will represent Malaysian firms doing business in Viet Nam.
On the same day, a roundtable conference was held
between Vietnamese and Malaysian firms in Ha Noi. In his speech at the event,
deputy minister of industry and trade Do Thang Hai said the two countries
have yet to explore the full potential of trade exchange.
Viet Nam could ensure a steady supply of agricultural
products such as rice, tea, coffee, seafood and pepper to Malaysia on a
long-term basis, Hai said, even as he invited Malaysian firms to come to
study Viet Nam’s market and seek new business opportunities.
Hai suggested that the two governments review trade
rules and clear obstacles relating to administrative procedures, customs,
standards and quarantines.
Both countries need to share their experience and
technology transfer in the fields of energy, oil and gas, mechanical
manufacturing and agri-fishery product processing. There should also be
closer co-operation to develop value chains in oil and gas, agriculture,
seafood, footwear, garment and textile, and support industry, Hai said.
At their end, Zafrul Tengku Abdul Aziz, president of
Kuala Lumpur Business Club, invited Vietnamese enterprises to visit Malaysia
to exploit investment opportunities.
Two-way trade between the two nations touched US$6.8
billion in the first 10 months of this year, up 3.4 per cent year-on-year,
according to the General Statistics Office.
During this period, Viet Nam exported $2.7 billion
worth of goods to Malaysia, down 14 per cent, while its imports witnessed a
yearly rise of 19 per cent, to $4.1 billion.
Bilateral trade would likely reach $8.1 billion by
year-end, which will be 4.3 per cent higher than 2015, the Ministry of
Industry and Trade has forecast. Of this, Viet Nam’s exports would be $3.2
billion and its imports may hit $4.9 billion, which suggests that Viet Nam
will see a trade deficit of around $1.7 billion, nearly three times higher
than that seen in the previous year.
In terms of investment, Malaysia has pumped $412
million into Viet Nam over the past 11 months, ranking 11th among the 68
countries and territories investing in the country, as per data from the
Foreign Investment Agency.
Record high fruit and veggie exports in 2016
Fruit and vegetable exports hit US$186 million in
November, bringing the value in 11 months of this year to approximately
US$2.2 billion, up from the 2015 record of $1.8 billion.
Vietnamplus.vn cited statistics from the Ministry of
Agriculture and Rural Development as saying that China was the largest market
for Vietnamese vegetables and fruits, accounting for 70.4 per cent. It was
followed by South Korea with 4 per cent, the US (3.5 per cent), and Japan
(3.1 per cent). Meanwhile, Viet Nam spent $814 million on imported vegetables
and fruits, mainly from Thailand and China, in the period, up 44 per cent
year-on-year.
Earlier, the ministry forecast the export value of
domestic fruits and vegetables would likely reach US$2.5 billion by the-year
end.
According to the ministry, the vegetable and fruit
industry grew from exporting $235 million to 36 markets in 2005 to exporting
$1.8 billion to 60 markets in 2015.
The export value in 2015 reached a record high of $1.8
billion, 123 per cent higher than in 2014.
Vietnamese exporters have promoted vegetable and fruit
exports to both traditional and new markets, including markets with strict
rules, such as the US, EU, Japan, South Korea, Canada, Australia and New
Zealand.
In order to promote fruit and vegetable exports, Viet
Nam should review plans for growing fruit and vegetables for export,
suggested the Ministry of Industry and Trade.
Initially, the State would concretise the general plan
for agricultural development by 2020 and towards 2030. Under the plan, the
development of fruit and vegetables would be implemented closely in
advantageous regions with each province developing one or two major types of
fruit trees.
Production would be expanded, with the growing of some
trees to meet the demands of importers and also provide material for export
processing factories.
Daiei Kankyo Japan wants to invest in Thanh Hoa
Daiei Kankyo, a Japan’s foremost waste management
business group wants to invest in Thanh Hoa province, especially in
environment, said its representative, Mr.Tatsuo Yamashita at a recent working
session with provincial leaders.
Mr Yamashita proposed cooperation fields such as waste
water treatment at Nghi Son Economic Zone, and waste and waste oil treatment
and recycling techniques.
In the coming time, the company will discuss projects
related to environment treatment in details with relevant authorities, he
said.
Thanh Hoa has attracted investment in domestic waste
management and treatment of waste water from Nghi Son EZ. Five areas have
been zoned for domestic waste treatment with a daily capacity of 5,000-10,000
tons each.
The province has also made a pre-feasibility study for
a project on Nghi Son EZ’s waste water treatment with an investment of US$102
million.
HCM City plans US$652-million elevated road to ease
traffic congestion
Ho Chi Minh City’s municipal government is seeking
permission from the central government to build an elevated road to help
reduce traffic congestion.
Road Number 1 will run for 9.5km with total investment
of about VND15 trillion (US$652 million), local media reported on December 8.
The four-lane road is expected to begin at Lang Cha Ca
Roundabout in Tan Binh District near Tan Son Nhat International Airport and
end at Phu An Bridge in Binh Thanh District.
It will serve as the backbone for a future elevated
road system.
It will also act as a link from the downtown to belt
roads around the city, alleviating the rising transport pressure on the
country’s economic hub.
Ho Chi Minh City also has plans to build four other
elevated roads with a combined length of more than 70km.
Construction of the city's first metro line linking Ben
Thanh Market and Suoi Tien Theme Park started in December 2013 in District 9.
Plans for more metro lines are underway.
State asset panel said to be a must
Deputy PM Vuong Dinh Hue is pushing for establishment
of a committee under the Government to manage an estimated VND5 quadrillion
(US$223 billion) worth of capital at State-owned enterprises (SOEs).
Hue at a meeting with ministries on December 7 asked
the Ministry of Planning and Investment, which was in charge of drafting a
decree on establishment of the committee, to clarify three points.
These are the necessity of a committee specialising in
managing State capital at enterprises, overview and forecast of SOE
restructuring by and after 2020 and State ownership performance.
The establishment of the committee was necessary to
remove conflicts among State functions by separating State ownership
performance from policy making and market regulation.
Accordingly, ministries and people’s committees would
no longer have the function of representing State ownership at SOEs.
Hue said that the VND5 quadrillion committee would help
improve the ministries’ management of State capital.
“The management of State capital would be centralised,”
Hue said.
State capital was currently managed by ministries,
people’s committees and the State Capital Investment Corporation (SCIC).
Hue urged the planning and investment ministry to
clarify responsibilities of the committee, which including consulting the
Government on State ownership and supervising the use of State capital.
Deputy Minister of Planning and Investment Dang Huy
Dong said at the conference the draft would be completed next week to be
submitted to the Government for comments.
Under the draft, the committee would soon directly
manage State capital at 30 SOEs in various areas, such as electricity, oil
and gas, aviation, maritime and telecommunications.
The 30 companies reportedly accounted for more than 80%
of the total value of State capital and assets.
False rumors rally Vietnam’s gold, dollar markets
despite gov’t denial
Rumors surrounding the replacement of the current
Vietnamese currency have continued to put adverse impacts on the domestic
dollar and gold markets, despite repeated warnings from state agencies
against the unfounded information.
The currency replacement rumor has sent dollar prices
skyrocketing, especially on the unofficial market, since the beginning of the
month.
The greenback on the ‘black’ market reached a record
VND23,000 a dollar on December 3 as the rumor mill went into overdrive.
Accordingly, rising dollar prices sent gold prices in
Vietnam through the roof, with some traders taking advantage of the rumors to
manipulate the rates.
The market manipulation widened the gap between
Vietnamese and global gold prices, as well as the margin between asking and
selling quotes at local gold shops.
On the global market, gold closed at $1,171.1 an ounce
on Wednesday, or VND32.08 million (US$1,432) a tael (37.5 grams), while
Vietnamese gold shops quoted the precious metal at VND36.45 million ($1,627)
a tael, a price gap of VND4.37 million ($195) a tael.
Vietnam’s gold prices move in reverse direction from global
peers, fretting local buyers.
“I have no idea why prices in Vietnam rose by
VND400,000 [$17.86] a tael while global rates are falling,” Chinh, a resident
in Ho Chi Minh City, told Tuoi Tre (Youth) newspaper.
The woman is sitting on hot bricks, having borrowed
loans in gold when price was only VND34 million ($1,518) a tael.
Gold has lost $167 an ounce, or VND4.58 million ($204)
a tael, on the global market since last month, but prices keep fluctuating
strongly in Vietnam, with the false currency replacement largely to blame,
according to industry insiders.
“The rumors first rallied the dollar market, and the
gold market was affected in the same manner,” Nguyen Thi Cuc, deputy general
director of PNJ, a major gold trader, explained.
Nguyen Thanh Long, chairman of the Vietnam Gold Traders
Association, said many gold shops have taken advantage of the rallied market
to boost prices even further.
While SJC, the country’s largest gold trader, set the
gap between ask and bid prices at only VND400,000 a tael at December 7’s
closing session, the difference was VND500,000 a tael at gold shops.
The State Bank of Vietnam quashed the groundless rumors
in a public warning earlier this month, and Prime Minister Nguyen Xuan Phuc
reiterated the denial at a government conference on Tuesday.
The premier reassured that the government is totally
capable of stabilizing the foreign exchange rate and the macro-economy,
without forgetting to task relevant agencies with tracing the rumor makers.
On December 7, the foreign exchange agency under the
State Bank of Vietnam also reiterated that the central bank is closely
watching the dollar and gold markets and will have timely intervention if
necessary.
“The public should not believe rumors and remain
cautious about any decision to sell or buy,” the agency head Nguyen Ngoc Canh
warned.
VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VET/VIR
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Thứ Bảy, 10 tháng 12, 2016
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