VIETNAM'S BUSINESS NEWS HEADLINES AUGUST 5
Industrial
production index growth at lowest level for many years
Industrial production index inched
up 2.6 percent in the first seven months of 2020, the lowest level recorded
in many years due to COVID-19, according to the General Statistics Office
(GSO).
The
processing-manufacturing sector recorded a 4.2 percent growth; electricity
production and distribution 2.1 percent; and water supply, waste and
wastewater management and treatment 3.3 percent. Meanwhile, the mining
industry contracted 7.8 percent.
Pham Dinh
Thuy, Director of the GSO’s Industrial Statistics Department, said complex
developments of COVID-19 worldwide disrupted the supply of input materials
for industrial production.
Support
services for mining and ore exploitation went deep down by 42.7 percent;
motorised vehicle production 15.4 percent; and crude oil and natural gas
extraction 11.3 percent.
However,
some industries still recorded fair growth such as medicine, pharmaceutical
chemical product, and herbal material manufacturing (27.1 percent), coke and
refined petroleum product production (15.9 percent), and metal ore mining
(15.7 percent).
Some key
products that followed the downward trend were sugar (23.1 percent),
automobiles (22.3 percent), beer (14.9 percent), and crude oil (14.1
percent).
By contrast,
other key goods like oil and gas, television, and cellphone components still
recorded growth between 10 and 19 percent.
In July
alone, the industrial production index growth was 3.6 percent against June
and 1.1 percent against the same month last year.
The GSO said
the number of employees at industrial firms on July 1 went up 1.3 percent
month on month and down 1.8 percent year on year./.
Export
turnover sees slight rise in 7 months
Vietnam’s
export turnover in the first seven months of 2020 hit an estimated 145.79
billion USD, up 0.2 percent year-on-year, according to the General Statistics
Office.
The export
value in July alone reached 23 billion USD, up 1.9 percent compared to the
previous month and 0.3 percent over the same period last year.
The domestic
economic sector was seen as a key contributor to the national export growth
in the Jan-July period, bringing home 50.76 billion USD, up 13.5 percent.
Meanwhile, the foreign-invested sector (including crude oil) raked in 95.03
billion USD, down 5.7 percent year-on-year.
The US
remained the largest importer of Vietnamese goods, with a turnover of 37.9
billion USD in the last seven months, up 15 percent compared to same period
last year. China was the runner-up with 23.5 billion USD, surging 18.4
percent.
Meanwhile,
the markets that saw decreased export turnover included the EU (down 5.9
percent), ASEAN (15.4 percent), Japan (5 percent), and the Republic of Korea
(0.4 percent).
Vietnam
spent 139.33 billion USD on imports in the reviewed period, down 2.9 percent
year-on-year. China was the biggest exporter to Vietnam with an estimated
turnover of 41.6 billion USD, down 1.8 percent.
As a result,
Vietnam enjoyed a trade surplus of 6.5 billion USD in the last seven months,
the GSO said./.
India reviews continuation of
FTA with ASEAN
The
government is reviewing the continuation of the free trade agreement (FTA)
with ASEAN in the wake of the trading bloc’s reluctance to address India’s
concerns over what it believes are asymmetries in the trade pact during the
last ten years.
According to
Times of India, the country’s main grouse is the rising trade deficit with
the 10–country bloc.
The Indian
government is looking to revamp its strategy on FTAs with Finance Minister
Nirmala Sitharaman on July 31 hinting that New Delhi will demand "reciprocal"
agreements with countries where it is open to the market.
The Narendra
Modi government has blamed the trade agreements worked out by the United
Progressive Alliance (UPA) for a large part of the problem of trade deficit,
arguing that the agreements with ASEAN, the Republic of Korea and Japan were
signed in haste and India’s interests were not adequately protected.
As a result,
Minister of Commerce and Industry Piyush Goyal has been demanding
renegotiation of certain provisions under a review mechanism, something that
ASEAN has so far refused to accept.
At least
three high-ranking officials in the administration said that the government
was looking at the option of exiting some of the FTAs, especially the one
with ASEAN, if the terms of engagement were not in India’s favour.
In recent
years, starting with the threat to block a WTO agreement on trade
facilitation in 2015 to walking out of negotiations on the Regional
Comprehensive Economic Partnership (RCEP), India has hardened its stance in
global engagements.
Sitharaman,
Goyal and Bibek Debroy, who heads the Economic Advisory Council to PM, are
looking at the options to strengthen India’s trade engagements and a review
of existing FTAs./.
Malaysia launches credit
programme to promote consumer spending
The Ministry
of Finance (MoF) of Malaysia has launched a credit programme worth 750
million RM (179 million USD), aiming at boosting consumer spending in the
country as one of initiatives under the Economic Recovery Plan (PENJANA).
According to
Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz, under the ePENJANA
programme, each eligible applicant will receive 50-RM ePENJANA credits
beginning on July 31.
Three
e-Wallet service providers, namely, Boost, GrabPay and Touch ‘n Go eWallet
have been selected for the implementation of this initiative, he said, adding
that this programme will be launched in collaboration with the MySejahtera
COVID-19 contact tracing app.
To apply for
the credits, he said every applicant is required to download one of the three
e-Wallets, as well as download and use the MySejahtera app.
The
initiative is open to Malaysians aged 18 years and above, earning less than
100,000 RM annually.
The eligible
applicant will also receive additional matching incentives worth 50 RM in the
form of cash back, vouchers and/or points throughout the campaign period, he
noted.
The
programme will last until August 24, and the deadline for spending the
ePENJANA credits is on Sept 30./.
VCCI Can Tho launches website
to explain EU free trade deal
The Viet Nam
Chamber of Commerce and Industry's Can Tho branch (VCCI Can Tho) has launched
an online portal and consultancy on the EU-Viet Nam Free Trade Agreement for
the benefit of businesses in the Cuu Long (Mekong Delta) region.
Speaking at
a ceremony held to announce it in the delta city on Friday, Nguyen Phuong
Lam, director of the branch, said the trade deal (EVFTA), which takes effect
on Saturday, offers many opportunities as well as challenges to businesses,
especially in the delta.
It would
help increase Viet Nam's exports to EU member countries by 45 per cent by
2030 and the country's GDP by an additional 7 per cent in 2029-33, he said.
The new
portal would help local businesses thoroughly understand the contents of the
agreement, he promised.
It would
offer consultancy by independent experts in each specific area of the
agreement such as tariff commitments, goods origin rules, Sanitary and
Phytosanitary (SPS) measures and Technical Barriers to Trade (TBT)
agreements, intellectual property rights, registering for and protecting
geographical indication (GI), and how to enter the EU market, he listed.
It would
also provide up-to-date information about policies, laws and other related
content, enabling businesses to take advantage of opportunities and avoid
risks, he said.
The experts
in the portal advisory board will answer businesses’ queries within three
working days besides which all questions will be aggregated and posted on the
website, according to the VCCI Can Tho./.
Doing business in Vietnam
becomes easier as EVFTA comes into force: EC
Doing
business in Vietnam will become easier for European companies as the EU –
Vietnam Free Trade Agreement (EVFTA) comes into force today [August 1],
according to the European Commission (EC).
European
firms would now be able to invest and pitch for government contracts with
equal chances to their local competitors, said the EC in a statement.
The EVFTA,
officially signed last June after six years of negotiations, has been dubbed
“the most ambitious” FTA the EU has ever reached with a developing country,
according to the EC. It includes not only the almost full elimination of
bilateral tariffs, but also a substantial reduction of non-tariff barriers.
Moreover, it includes provisions to protect intellectual property, labor,
environmental standards, and fair competition, while promoting regulatory
coherence.
“Trade
agreements, such as the one becoming effective with Vietnam today, offer our
companies a chance to access new emerging markets and create jobs for
Europeans. I strongly believe this agreement will also become an opportunity
for people of Vietnam to enjoy a more prosperous economy and witness a
positive change and stronger rights as workers and citizens in their home
country,” said Ursula von der Leyen, president of the EC.
"Vietnam
is now part of a club of 77 countries doing trade with the EU under
bilaterally agreed preferential conditions,” added Phil Hogan, commissioner
for Trade.
Hogan said
while the deal strengthens EU economic links with the dynamic region of
Southeast Asia, it will continue to encourage Vietnam to pursue “its most
needed reforms.”
The
EU-Vietnam agreement is the most comprehensive trade agreement the EU has
concluded with a developing country. It takes fully into account Vietnam's
development needs by giving Vietnam a longer, 10-year period to eliminate its
duties on EU imports.
At the same
time, the trade agreement sets high standards of labor, environmental and
consumer protection and ensures that there is no 'race to the bottom' to
promote trade or attract investment.
Vietnam is
the EU's second largest trading partner in the Association of Southeast Asian
Nations (ASEAN) after Singapore, with trade in goods worth US$53.6 billion in
2019.
The EU's
main exports to Vietnam are high-tech products, including electrical
machinery and equipment, aircrafts, vehicles, and pharmaceutical products.
Vietnam's main exports to the EU are electronic products, footwear, textiles
and clothing, as well as coffee, rice, seafood, and furniture.
With a total
foreign direct investment stock of US$8.71 billion (2018), the EU is one of
the largest foreign investors in Vietnam. Most EU investments are in
industrial processing and manufacturing.
The
agreement with Vietnam is the second trade agreement the EU has concluded
with an ASEAN member state, following the recent agreement with Singapore. It
represents an important milestone in the EU's engagement with Asia, adding to
the already existing agreements with Japan and South Korea.
A pre-Covid-19
study from Vietnam’s Ministry of Planning and Investment suggested the EVFTA
and EVIPA would help Vietnam’s GDP grow an additional 4.6% and boost the
country’s exports to the EU by 42.7% by 2025.
Meanwhile,
the EC estimated the bloc’s GDP would be added US$29.5 billion by 2035, along
with additional growth of 29% in exports to Vietnam./.
Vietnam transport ministry
plans over US$17 billion to build expressways in 5 years
The move
would help form a network of expressways connecting vital routes.
Vietnam’s
Ministry of Transport (MoT) has asked for funding of VND400 trillion (US$17.4
billion) from state budget to build a network of expressways across the
country in the 2021 – 2025 period.
The
construction of new expressways would help connect vital routes including
expressways from Can Tho to Ca Mau, Hanoi – Huu Nghi border gate, Hoa Binh –
Moc Chau – Son La, as well as expressways to Bac Kan and Mong Cai, Minister
of Transport Nguyen Van The said at a meeting with Deputy Prime Minister
Trinh Dinh Dung on July 30.
To ensure
the timely implementation of those projects, the MoT has instructed project
management units to draft feasibility study reports, The added.
A report
from the MoT revealed as of June 30, the agency disbursed 33.7% of the target
of VND39.76 trillion (US$1.73 billion) in public investment for this year,
higher than the average national disbursement rate of 28.9%.
By the end
of July, the MoT is set to disburse 41.7% of the target, including 48.5% from
the domestic funds and 34.3% from foreign sources.
Vice
Minister Nguyen Ngoc Dong said one of the main bottlenecks to speeding up
disbursement rate is the slow progress in site clearance, while complicated
administrative procedures are making it hard for the MoT to accelerate the
construction progress.
Among
measures to boost disbursement of public investment in the remaining months
of this year, the MoT suggested the government address issues related to site
clearance.
At the
meeting, Deputy PM Dung requested the MoT to speed up the construction of
major projects, including the North – South expressway, Trung Luong – My
Thuan expressway, My Thuan bridge, Cat Linh – Ha Dong urban railway, among
others.
Public
spending with a focus on greater disbursement of public investment is
considered key measures to help Vietnam’s economy recover from the Covid-19
pandemic.
This year,
the Vietnamese government targets to disburse VND700 trillion (US$30
billion), more than double the actual amount in 2019 at VND312 trillion
(US$13.4 billion)./.
LG Electronics to build
additional R&D centre in Vietnam
Major home
appliance maker LG Electronics Inc. is considering building a new research
and development (R&D) centre in Vietnam, while simultaneously expanding
its existing facility in Haiphong.
This was
announced by a representative of LG Electronics at a meeting between
Vietnamese Prime Minister Nguyen Xuan Phuc and South Korean companies on July
29.
Industry
insiders said LG's plan to build an additional R&D centre appears to be
aimed at boosting the competitiveness of its Vietnam plant.
LG said it
is currently looking for candidate sites in Vietnam but has not confirmed
detailed plans for the new centre, such as its research field, size, and
construction timeline.
Regarding
the plan to expand its existing facility, most recently, chairman of Haiphong
People’s Committee Nguyen Van Tung reported that the city is looking for the
government’s approval to expand Dinh Vu-Cat Hai and Trang Due industrial
parks to serve LG’s expansion.
LG entered
the Vietnamese market in 1995 under the name LG Sel Electronics. It opened
its first factory in Hung Yen with an investment capital of $13 million and a
production line capable of producing 550,000 units per year.
In March
2015, LG launched a high-tech plant to manufacture an assortment of products
in Trang Due, Haiphong with a total investment of $1.5 billion. It is the
largest LG facility of its type in the region at 800,000 square meters,
playing a key role in the development strategy of LG globally.
The plant
has a capacity of 16 million products per year. It produces and assembles
high-tech products such as televisions, mobile phones, washing machines, air
conditioners, vacuum cleaners, and digital devices for automobiles.
South
Korea's No.2 electronics company already runs an R&D centre focused on
its vehicle component solutions business in Hanoi./.
ASEAN market expansion
represents a positive step
With Vietnam
seeing total import-export turnover with ASEAN in 2019 reach US$57.3 billion,
representing a year- on- year rise of 1.1%, the group has developed into the
country’s fourth largest export region, only behind the United States, the
EU, and China.
Since
Vietnam officially became a member of ASEAN in 1995 , two-way trade between
the nation and the regional bloc have come on leaps and bounds with the
country's exports to the group rising by 1.5% to US$25.2 billion in 2019,
accounting for 9.6% of total Vietnamese export turnover.
Furthermore,
the nation’s import turnover from ASEAN grew to US$32.1 billion, up 0.9%,
making up 12.7% of the country's total import turnover, whilst the Vietnamese
trade deficit with the region was US$6.85 billion, down 1.3% compared to
2018.
According to
the Ministry of Industry and Trade (MoIT), the nation’s exports to the ASEAN
market in 2019 have enjoyed strong growth, with efforts mainly focusing on
Thailand, Malaysia, Singapore, the Philippines, and Indonesia.
Most
notably, the main export groups include local goods such as iron and steel of
all kinds, telephones and components, computers, electronic products and
components, machinery, equipment, tools, spare parts, along with apparel and
textiles.
Vu Ho, head
of the ASEAN Department under the Ministry of Foreign Affairs, said the
country’s integration process into the bloc has been implemented in an
effective manner to promote economic growth over the past two decades.
A notable
occasion occurred in 1995 when Vietnam joined the ASEAN Free Trade Area
(AFTA) and negotiated the signing of the ASEAN Preferential Tariff Agreement.
Since joining the AFTA, the nation has enjoyed numerous benefits through
gaining an advantage when promoting trade and economic links and creating
greater motivation in terms of production and business development, Vu Ho
noted.
Moves
towards trade balance and a reduced trade deficit
According to
the MoIT, ASEAN represents a market that is close to Vietnam both
geographically and in terms of similarities in culture and consumption
habits. With a total population of 636 million and GDP of US$2,760 billion,
there remains plenty of room for the region to stimulate the export growth of
many domestic goods.
Recent years
has seen the country’s exports to ASEAN primarily focus on farm produce,
aquatic products, and minerals, all of which enjoy preferential import duties
under the ASEAN Trade in Goods Agreement.
Specifically,
Vietnamese agricultural and fishery exports to the region in 2019 reached
US$2.69 billion, up 0.9%, of which fruit and vegetable exports enjoyed growth
of 68.8%, seafood by 2.3%, rice by 8.6%, and tea by 16.9%.
According to
the Vietnam Association of Seafood Exporters and Producers, ASEAN is
currently one of the most important export markets for the local fisheries
sector. Thanks to preferential treatment offered by the AFTA and other
related agreements, a number of seafood products such as shrimp, tuna, and
pangasius are witnessing growth both in terms of volume and value.
Staple
imports from ASEAN over the past year have mainly consisted of raw materials
for production, such as computers, electronic products and components at US$
3.9 billion, gasoline of all kinds at US$3 billion, other machines,
equipment, tools and spare parts at US$2.6 billion, material plastic at
US$1.6 billion, other common metals at US$1.17 billion, and chemicals at US$1
billion.
In the
context of several manufacturing industries not having control over input
materials, the ASEAN market has created opportunities for domestic businesses
to have access to an abundant supply of raw materials at reasonable prices.
In addition, local firms are also able to simultaneously access capital
sources and high technologies, thereby helping them lower prices and improve
overall product quality.
As for the
apparel and textile industry, export turnover in 2019 reached US$1.5 billion,
up 21.4% on-year.
Truong Van
Cam, vice chairman of the Vietnam Textile and Apparel Association, said that
the sector is likely to increase exports to ASEAN ahead in the coming years,
particularly when tariff lines continue to be reduced thanks to FTAs and
advantages relating to geographical distance and cultural similarities.
Upon
assessing the ASEAN market, Nguyen Cam Trang, deputy director of the
Import-Export Department under the MoIT, stated that due to difficulties in
exporting to the US and European markets, promoting expansion into the ASEAN
market is seen as a right step for many local businesses. This therefore
represents a stable plan for expanding export markets, while also avoiding
dependence on a select few markets./.
Tien Giang revives durian
orchards hit by saltwater intrusion
The Mekong
Delta province of Tien Giang has stepped up measures to recover durian
orchards damaged by severe saltwater intrusion and drought in the 2019 – 2020
dry season.
The
province, which is the country’s largest fruit producer, has more than
13,500ha of durian, accounting for 14.7 percent of the province’s total fruit
areas, according to the provincial Department of Agriculture and Rural
Development.
Nguyen Van
Man, director of the department, said severe saltwater intrusion and drought
in the 2019 – 2020 dry season damaged 5,343ha of fruits, including 4,500ha of
durian orchards in the province’s western area.
Many
orchards were damaged up to 70 percent, the rate at which the orchards are
considered lost, according to farmers.
In Cai Lay
district’s Tam Binh commune, the province’s largest durian growing area, many
farmers are cutting down dead durian trees.
Saltwater
intrusion occurred at the end of last year and lasted for more than six months,
damaging durian orchards in the commune.
The highest
salinity rate during the period was nearly 10 grammes per litre, 10 times
higher than the rate tolerated by durian trees.
Nguyen Tan
Nhu, Secretary of the Tam Bình Commune Party Committee, said nearly 1,000ha
of durian in Tam Binh, or 70 percent of the commune’s total durian area, has
died, causing severe losses for farmers.
Durian is a
perennial tree with high economic value, but cannot tolerate high salinity
and inclement weather which occurred in the 2019 – 2020 dry season, he said.
Huynh Thi
Kim Trinh in Tam Binh’s Binh Hoa A hamlet said one of her two durian orchards
is damaged and the other is being rehabilitated.
The province
is entering the rainy season, but the aftermath of severe saltwater intrusion
and drought in the last dry season saturated the soil, injuring or killing
durian trees.
To save
injured trees, the provincial People’s Committee has ordered the department
in co-operation with research institutes and relevant agencies to evaluate
the causes and show farmers how to recover their orchards.
Durian
orchards are applying advanced techniques to rehabilitate affected trees
after the end of saltwater intrusion and drought, and to adapt to saltwater
intrusion in Tam Binh and Ngu Hiep communes.
Dr. Le Quoc
Dien of the Southern Horticultural Research Institute said under the models,
farmers follow five steps to rehabilitate soil.
The steps
are to wash out salt, rehabilitate the root and leaf systems of durian trees,
support leaf and roof development, and increase nutrient absorption and
photosynthesis capacity of trees.
Le Van Tieu,
who is rehabilitating his durian orchard in Ngu Hiep, said leaf development
has improved considerably.
In the 2019
- 2020 dry season, saltwater intrusion and drought occurred in all of the
province’s districts and towns, damaging agricultural production./.
Hanoi urged to improve
infrastructure system, administrative reforms
Hanoi should
focus on improving its infrastructure system while hastening administrative
reforms to attract investors eyeing Vietnam amid the global production shift,
experts have said.
According to
Deputy Head of the Party Central Committee’s Economic Commission Nguyen Huu
Nghia, Hanoi plays an important role in the northern key economic region and
in improving regional links.
It was
necessary for the capital city to promote regional economic development,
Nghia said, adding that the focus should be placed on attracting foreign
direct investment (FDI) on offer due to the global shift of value chains pushed
by the COVID-19 pandemic.
An important
factor was developing the urban infrastructure system, said Tran Quoc Cuong,
Deputy Head of the Party Central Committee’s Commission for Internal Affairs.
Cuong said
Hanoi had seen considerable infrastructure development in recent years,
mostly in the capital city’s northern and western parts. Cuong said more
attention should be paid to developing the infrastructure system in the
city’s south.
He said that
Hanoi should consider building an airport in the southern region to reduce
the pressure on Noi Bai International Airport and contribute to developing
the economic triangles Hanoi – Hai Phong – Quang Ninh and Hanoi – Thanh Hoa –
Nghe An.
Nguyen Mai,
Chairman of the Vietnam Association of Foreign Investment Enterprises, said
what was important to Hanoi now was not how much FDI the city attracted but
the quality of the investment.
To compete
with other countries in attracting FDI, Mai said Hanoi in particular and
Vietnam must hasten administrative reforms to create favourable conditions
for investors.
In addition,
Hanoi must focus on developing a skilled labour force and tackling traffic
congestion and environment pollution, Mai said.
Besides,
attention should be paid to improving the infrastructure system and building
industrial zones with developed infrastructure systems and logistics
services.
According to
the municipal Department of Planning and Investment, the capital city is now
more selective in attracting FDI.
The capital
city is developing FDI attraction strategies for specific markets, with the
Republic of Korea, Singapore, Taiwan, the US, the EU, Australia and New
Zealand key target markets.
“Hanoi will
focus on calling for FDI in large-scale projects and highly competitive
products and those which promote small and medium-sized enterprises to engage
in the global value chains of multinational corporations, through which, the
city will receive technology transfer and could develop the support
industries,” said Nguyen Manh Quyen, Director of the municipal Department of
Planning and Investment.
Hanoi aims
to attract 30-40 billion USD in registered FDI in 2021-2025 period with the
disbursed capital of around 20-30 billion USD. Projects which used advanced
technologies to increase operational efficiency and protect the environment
are set to make up 50 percent in 2025 and 100 percent by 2030. The local
procurement rate is expected to increase to more than 30 percent in 2025 and
40 percent in 2030.
Quyen said
the capital would enhance investment promotion, support investors in
implementing their projects and protect their rights.
In addition,
e-government would be developed to reduce time and costs for enterprises
while the city would act to increase investors’ access to land.
He said the
city was speeding up the construction of infrastructure in industrial zones
and industrial clusters. Statistics showed the city had 17 industrial zones
and 107 industrial clusters.
Hanoi has
been among top localities in attracting FDI in recent years. In 2018 and
2019, the capital city ranked first out of 63 provinces and cities in Vietnam
in FDI attraction with registered capital of 7.5 billion USD and 8.67 billion
USD, respectively.
In the first
seven months of this year, Hanoi attracted around 2.82 billion USD in FDI and
the city expects to attract 5 billion USD for the full year./.
Czech expert lauds changes in
Vietnam’s foreign investment attraction policy
David
Jarkulisch, an economic diplomat from the Czech Republic, has spoke highly of
positive changes in Vietnam’s revised Law on Investment which aims to attract
and bolster efficiency of foreign investment.
In an article published on the website of the Ministry of Foreign Affairs of the Czech Republic, he noted that the revised law, which is to take effect at the beginning of 2021, will improve conditions and incentives for foreign investors. The law aims to make Vietnam’s business climate more appealing to foreign investors and attract new investment in high technology, Jarkulisch said. Although Vietnam is among the most attractive investment destinations in Asia, foreign investment in the country so far has primarily targeted low tech sectors, he added. As a result, the Vietnamese Government decided to adjust its foreign investment attraction strategy last year to support innovative and high-tech industry sectors, the diplomat noted. An important factor of this strategy is to change investment incentives. The Government emphasises that a majority of the incentives and changes in the new investment law reflect the demands of large multinational companies that have long sought to enter the Vietnamese market.
The author
also underlined that despite the negative impacts of COVID-19, Vietnam
remains attractive to investors and drew a total of 18.8 billion USD in
foreign investment in the first seven months of 2020, a year-on-year decline
of only 7 percent./.
Maximum 130,700 USD fine for
listing violations: Draft decree
Public
companies may receive a penalty of 2-3 billion VND (87,120-130,700 USD) for
falsifying share listing and trading documents under a proposal from the
Ministry of Finance.
The
companies would have to file to trade shares at the stock exchanges within a
maximum of 60 days.
The penalty
was proposed in a draft decree regulating fines for administrative violations
in the securities sector.
A fine of
400-500 million VND would be imposed if the company delivers false
information in its listing documents or covering false information on
purpose.
The company
would be fined 100-200 million VND for not correcting and supplementing
information in its listing documents, or missing key information required by
market regulators.
Public
companies may also receive a fine of 70-100 million VND if they do not adjust
the details of share listing and trading and if they fail to register and
trade shares on time in accordance with existing rules.
A company
would suffer a maximum fine of 500 million VND for using false information in
its profile or covering false information when it files for listing shares on
overseas markets. The minimum penalty for the violation is 400 million VND.
If the
company does not report to the State Securities Commission about issuing new
shares and registering to the overseas market’s depository agency, the fine
would be 150-200 million VND.
Not
correcting the profile and supplementing required information in its overseas
listing documents would be penalised between 100 million VND and 200 million
VND.
The finance
ministry is collecting feedback from market regulators, analysts and
securities companies on the draft.
The full
version of the draft decree is available on the Government’s portal
chinhphu.vn./.
Infrastructure system,
administrative reforms important to attract FDI
Ha Noi
should focus on improving its infrastructure system while hastening
administrative reforms to attract investors eyeing Viet Nam amid the global
production shift, experts have said.
According to
Deputy Head of the Party Central Committee Economic Commission Nguyen Huu
Nghia, Ha Noi plays an important role in the northern key economic region and
in improving regional links.
It was
necessary for the capital city to promote regional economic development,
Nghia said, adding that the focus should be placed on attracting foreign
direct investment (FDI) on offer due to the global shift of value chains
pushed by the COVID-19 pandemic.
An important
factor was developing the urban infrastructure system, said Tran Quoc Cuong,
Deputy Head of the Central Commission for Internal Affairs.
Cuong said
Ha Noi had seen considerable infrastructure development in recent years,
mostly in the capital city’s northern and western parts. Cuong said more
attention should be paid to developing the infrastructure system in the
city’s south.
He said that
Ha Noi should consider building an airport in the southern region to reduce
the pressure on Noi Bai International Airport and contribute to developing
the economic triangles Ha Noi – Hai Phong – Quang Ninh and Ha Noi – Thanh Hoa
– Nghe An.
Nguyen Mai,
Chairman of the Viet Nam Association of Foreign Investment Enterprises, said
what was important to Ha Noi now was not how much FDI the city attracted but
the quality of the investment.
To compete
with other countries in attracting FDI, Mai said Ha Noi in particular and
Viet Nam must hasten administrative reforms to create favourable conditions
for investors.
In addition,
Ha Noi must focus on developing a skilled labour force and tackling traffic
congestion and environment pollution, Mai aid.
Besides,
attention should be paid to improving the infrastructure system and building
industrial zones with developed infrastructure systems and logistics
services.
According to
the municipal Department of Planning and Investment, the capital city is now
more selective in attracting FDI.
The capital
city is developing FDI attraction strategies for specific markets, with the
Republic of Korea, Singapore, Taiwan, the US, the EU, Australia and New
Zealand key target markets.
“Ha Noi will
focus on calling for FDI in large-scale projects and highly competitive
products and those which promote small and medium-sized enterprises to engage
in the global value chains of multinational corporations, through which, the
city will receive technology transfer and could develop the support
industries,” Nguyen Manh Quyen, Director of the municipal Department of
Planning and Investment, said.
Ha Noi aims
to attract US$30-40 billion in registered FDI in 2021-25 period with the
disbursed capital of around $20-30 billion. Projects which used advanced
technologies to increase operational efficiency and protect the environment
are set to make up 50 per cent in 2025 and 100 per cent by 2030. The local
procurement rate is expected to increase to more than 30 per cent in 2025 and
40 per cent in 2030.
Quyen said
the capital would enhance investment promotion, support investors in
implementing their projects and protect their rights.
In addition,
e-government would be developed to reduce time and costs for enterprises
while the city would act to increase investors’ access to land.
He said the
city was speeding up the construction of infrastructure in industrial zones
and industrial clusters. Statistics showed the city had 17 industrial zones
and 107 industrial clusters.
Ha Noi has
been among top localities in attracting FDI in recent years. In 2018 and
2019, the capital city ranked first out of 63 provinces and cities in Viet
Nam in FDI attraction with registered capital of $7.5 billion and $8.67
billion, respectively.
In the first
seven months of this year, Ha Noi attracted around $2.82 billion in FDI and
the city expects to attract $5 billion for the full year./.
The PAN Group revenues up,
but profits plummet
The PAN
Group (HOSE: PAN) has released its financial statements for the second
quarter, which shows a 5 per cent year-on-year increase in net revenues to
VND1.839 trillion (US$79.3 million).
Net profit
was VND66.7 billion ($2.87 million), down 34 per cent mainly due to higher
costs because of the impact of the COVID-19 pandemic and an extraordinary
loss from transfer of land at its Northern Bibica confectionery factory.
First half
revenues and profits were VND3.122 trillion ($134.67 million) and VND95.4
billion ($4.1 million), 41 per cent and 31 per cent of targets.
In its
agricultural business, flower exports faced difficulties since demand
declined in Japan and logistics costs increased.
But the seed
market improved with net revenues increasing by 6 per cent and profits by 24
per cent thanks to cost saving measures.
Its packaged
rice products have also been well received in the market.
Shrimp
exports remained steady and profits rose by 2.3 per cent, thanks to a new
90ha shrimp farm and 6000-tonne cold storage.
Revenues and
profits from pangasius exports continued to decline due to a sharp decrease
in export prices, but this is only expected to be temporary.
In the long
term the pangasius segment has great prospects thanks to the value-added
products that have won over customers in fastidious markets like Japan and
the EU.
Revenues
from confectionery were down 18 per cent because it was the low season and
the pandemic had an impact.
Revenue in
the nuts segment grew by 25 per cent thanks to excellent sales campaigns, but
since costs also increased, profits remained unchanged.
In the third
quarter, its dried fruit products will be officially introduced to the market
and have some export orders already.
If the
pandemic situation does not worsen, the company is confident of achieving the
year’s targets./.
HDBank maintains high growth,
keeps bad debts at below 1.1%
The HCM City
Development Joint Stock Commercial Bank (HOSE: HDB) achieved excellent results
in the first half of the year, with pre-tax profit increasing by 31.5 per
cent year-on-year to VND 2.908 trillion (US$125.03 million), and meeting 51.4
per cent of the 2020 target.
Its asset
quality was among the best in the industry with its non-performing loan ratio
at just 1.1per cent, the lowest in the banking industry.
It has
redeemed all the bonds it sold to the Vietnam Asset Management Company (VAMC)
before schedule.
In addition
to maintaining the quality of its assets, the bank also strengthened its
financial health with its capital adequacy ratio (CAR) easily meeting Basel
II standards after increasing from 10.6 per cent to 11.5 per cent.
Its deposits
were worth VND312.923 trillion ($13.45 billion) and total outstanding loans
were VND168.772 trillion ($7.26 billion), an increase of 10.3 per cent
year-on-year.
Its total
consolidated operating income was VND6.346 trillion ($237.19 million), up
22.7 per cent, of with net interest income being worth VND5.664 trillion
($243.08 million), up 30.1 per cent.
It also
achieved positive growth in its services and securities business investment.
Its
operating expenses were effectively managed at VND2.738 trillion, helping to
reduce the cost-to-income ratio from 47 per cent in the same period last year
to 43.1 per cent.
In the first
six months of the year the bank increased its risk provision to settle the
debts it had sold to the VAMC and added resources for dealing with credit
risk if incurred. Provisions increased by VND168 billion to VND700 billion.
Return on
equity (ROE) and return on assets (ROA) were 21.6 per cent and 1.97 per cent,
sharp increases from the same period last year.
The ratio of
short-term capital to medium- and long-term loans was only 21 per cent, which
continued to place it in the group of banks with the highest capital adequacy
and liquidity rates.
HDBank
opened eight new branches and transaction offices in the first half,
increasing the number to 294.
HD SAISON
expanded its distribution system to 18,025 transaction points, maintaining its
leading position among consumer finance companies in terms of distribution
network.
Joining
community to overcome pandemic, achieve sustainable growth
HDBank
enjoyed rapid yet sustainable business growth despite the difficulties caused
by the Covid-19 pandemic and other unfavourable factors, proving its solid
foundation, proactive nature and flexibility in responding to challenges.
At a time
when the economy has entered a new normal stage, HDBank has undertaken risk
management programmes to ensure its operational safety, and at the same time
offered credit packages at preferential interest rates and reduced or waived
fees to help customers overcome difficulties caused by the pandemic.
The bank has
earmarked VND24 trillion ($1.03 billion) to lend to SMEs, VND10 trillion
($430.48 million) for micro businesses, individual business households and
individual customers to expand production and trading, invest in high-tech
agriculture, clean agriculture, renewable energy, and others.
In addition
to credit products, the bank has also deployed many modern technology-based
services to add more utilities on its mobile banking and internet banking
platforms, and digitized its internal and transaction processes towards
transforming into a digital and paperless bank.
It is a
pioneer in opening business accounts online with digital signatures, and was
also the first bank in Viet Nam to join the TradeAssets Trade Finance
E-marketplace to connect and process trade finance transactions on the blockchain
application platform.
Recently, it
has launched international money transfer query services via Swift GPI,
helping customers update information quickly and accurately about the status
of their transactions.
HDBank was
recently named one of the Best Companies to Work for in Asia by HR Asia, one
of Asia’s leading publications for HR professionals, for a third consecutive
year.
Vietnam's top importers in
first seven months
The US,
China, EU, ASEAN, Japan and the Republic of Korea were the biggest importers
of Vietnamese goods in the first seven months this year, according to the
General Statistics Office.
The export
value to these markets amounted to US$115.3 billion.
Specifically,
export turnover to the US and China rose by 15% and 18.4% to US$37.9 billion
and US$23.5 billion, respectively.
Meanwhile
export volume to the EU, ASEAN, Japan and the Republic of Korea respectively
dipped by 5.9% to US$19.5 billion, 15.4% to US$12.8 billion, 5% to US$10.9
billion, and 0.4% to US$10.7 billion./.
VNN
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Thứ Năm, 6 tháng 8, 2020
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