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BUSINESS IN BRIEF 10/5
Planned
oil refinery capacity increased
The
planned Vung Ro oil refinery project in central Phu Yen province would
increase investment capital from US$1.7 billion to $3.18 billion and its
capacity would be doubled to 8 million tonnes a year.
The
investment licence was being adjusted accordingly, the provincial People's
Committee said. The oil refinery would be built in Hoa Tam Industrial Zone,
in Nam Phu Yen Economic Zone, instead of in an area of more than 175ha in Hoa
Tam and Hoa Xuan
According
to the project consultants, the old location was not appropriate for
expansion and the plant might have a bad impact on the surrounding scenery.
The
original project licensed in 2007 had a capacity of 4 million tonnes a year
and investment of $1.7 billion.
The
proposed adjustments were agreed in Document 52/TB-VPCP issued in February
this year.
Minister
of Planning and Investment Bui Quang Vinh said incentives should be provided,
such as exemptions of land use fees and crude oil import tax, according to
the Vietnam Economic Times newspaper.
Previously,
chairman of the provincial People's Committee Pham Dinh Cu said construction
of the project must start no later than July. Project investors were to have
the plant operational in four years.
Vung
Ro oil refinery was expected to attract other projects to Hoa Tam Industrial
Zone.
The
project was expected to contribute around $111 million a year to the State
budget and provide jobs for 1,300 labourers.
Central
bank eyes gold sale to stabilise market
The
State Bank of
The
domestic gold price has fallen for six consecutive days to its lowest level
in the past three weeks. Yesterday, the selling price of DOJI Group fell to
VND41.68 million per tael while the buying price was VND41.44 million per
tael.
In
He
said investors have been hesitant to buy gold, as all banks will soon be
forced to stop mobilising or lending gold.
The
central bank has been selling gold through auctions. Yesterday, SBV organised
its 14th auction of gold bars, where 26,000 taels were up for sale.
The
bank set the reference price at VND41.50 million per tael, about VND50,000
higher than the buying price and about VND200,000 lower than the selling
price on the market.
Commercial
banks were the major buyers at the auction, attended by 11 enterprises and
banks – eight of which bought gold bars.
To
date, 392,900 taels (15.11 tonnes) have been sold out of 432,000 offered.
Economist
Vu Dinh Anh told online newspaper infonet that the difference between the
domestic and world gold price was not a concern, adding that analysts should
instead pay attention to the difference between the buying and selling
prices.
Anh
said people would benefit from a high difference between the buying and
selling prices.
He
added that the central bank's current goal was to stabilise the gold market,
not narrow the gap between the domestic and world gold prices.
In
another move, the Ministry of Finance announced yesterday that the Prime
Minister had decided to make raw gold materials exempt from export taxes and
gold import duties.
The
ministry said the decision would help the central bank export and import gold
bars while ensuring raw materials for bullion production.
Under
Circular No 184, an export tax rate of 10 per cent was imposed on gold of
purity between 90 and 99.99 per cent and gold jewellery of above 99 per cent
purity.
Vietcombank
slashes interest on deposits
Vietcombank
early this week cut its monthly deposit interest rate for the dong to 6 per
cent, 1.5 per cent lower than the ceiling rate stipulated by the State Bank
of
It
also slashed the rates for six-month to nine-month terms to 7 per cent (a drop
of 0.5 per cent) while 12 month terms were cut to 8 per cent (a 1 per cent
drop).
This
was the second time the bank cut rates within a month and it now offers among
the lowest deposit and lending rates of all its competitors, it announced in
a press release this morning.
Most
other banks currently apply a rate of 7.5 per cent for deposits fewer than 12
months, and 10 per cent for 12 months or more.
Vietcombank
general director Nguyen Phuoc Thanh told the press that good deposit growth
at the bank and stable liquidity of the banking system drove the rate cuts,
which are taking place against a market backdrop of stagnant lending.
Thanh
said that the move aimed to stimulate consumption and help firms reduce
inventories and improve business results.
"In
my opinion, there should be a vanguard bank cutting interest rates. The cuts
were not only to meet our internal demand but also to follow Government and
central bank directions about helping enterprises access cheaper loans,"
he said.
Currently
at Vietcombank, short-term lending rates are around 10.5 per cent and medium-
and long-term lending rates stand at 11.6 per cent, levels which have
continued to fall sharply.
The
bank is also applying preferential lending programmes, including a VND30
trillion (US$1.4 billion) package with a rate of 7.5 per cent and a $700
million package with a rate of 2 per cent, to assist struggling enterprises.
These
would affect Vietcombank's business performance in the short term but claimed
they were necessary to clear capital flows in the economy. He added that it
was difficult to predict the moves of other banks.
"We
believe that the market always operates correctly following its rules and no
one can stay outside of its circle."
Thanh
said that economic conditions still leave room for the State Bank to further
reduce the ceiling deposit rate, with inflation being controlled at 6-7 per
cent and the consumer price index increasing 2.4 per cent in the first four
months of this year.
Fruit
and vegetable exports drive healthy sector growth
Fruit
and vegetable exports this year are expected to increase to US$1 billion from
$829 million last year, according to the Fruits and Vegetables Association
(Vinafruit).
Speaking
at the association's third-term congress organised in
Exports
reached $187 million in the first four months of the year, a year-on-year
increase of 10 per cent.
Vietnamese
exporters in recent years have used advanced preservation methods like
irradiation to find acceptance in demanding markets like
Dau,
who is also general director of the An Giang Fruit-Vegetables and Foodstuff
JSC, said Vietnamese fruits and vegetables were sold to more than 50 nations
and territories, with China, the US, EU and Japan being the main importers.
"The
EU market has high demand for baby corn, edamame and pineapple. Africa and
New
markets also have quality requirements on imported fruits and vegetables, but
they are not as strict as those set by the
Tran
Ngoc Hiep, deputy chairman of the Binh Thuan Dragon Fruit Association, said
that dragon fruit exports had increased and would continue to do so in the
next few years.
"However,
the most important thing is how to manage the pesticide residue on dragon
fruit to increase export opportunities to choosy markets," Hiep said.
With
import countries tending to raise requirements in quality, hygiene and food
safety, the sector has no choice but to apply Good Agricultural Practices to
ensure hygiene and safety standards, Dau said.
Meanwhile,
it must focus on raising awareness among farmers about hygiene and food
safety standards, he said.
Nguyen
Van Nga, director of the Plant Protection Department's Regional Plant
Quarantine Sub-department II, said fresh fruits exported to choosy markets
must go through irradiation.
The
country has facilities offering irradiation services in southern
Once
put into operation, the new facilities are expected to help local fruit and
vegetable exporters reduce costs and preserve their goods better, Nga said.
"We
plan to work with
He
said that agencies must develop measures to enable buyers to work directly
with sellers.
Dau
said the fruit and vegetable sector lacked Government support since it was
not a major export earner.
The
Government should consider developing support policies for the sector,
including providing preferential loans to farmers, he said.
Many
delegates at the event called for closer links among enterprises to avoid
unhealthy competition.
Central
region tops FDI attraction list
The
north central and central coastal provinces took the lead in attracting
foreign direct investment (FDI) in the first four of this year.
According
to the Foreign Investment Agency (FIA),
Notably,
FDI has shifted from the
The
high value was largely contributed by
Experts
believe that incentives for infrastructure construction and local and
overseas investment promotions are the main factors in luring FDI to the
central region.
Vietnam
to export 187,000 tonnes of rice to Philippines
The
The
rice stock under the tender is long grain white rice with 10 percent and 25
percent brokens. The volume will be delivered to the
Chairman
of the Vietnam Food Association (VFA) Truong Thanh Phong said that the VFA
targets 1.5 million tonnes of rice exports in May and June.
In the
first four months, the country’s rice export surpassed 2.1 million tonnes, up
23.4 percent over the same period last year.
However,
prices dropped by nearly US$30 per tonne during the reviewed period, due to
low demand. The decline in rice prices also led to the cancellation of a
number of contracts with a total volume of 280,000 tonnes in the mentioned
time.
Saigon
Co.op, FairPrice to open hypermarkets in Vietnam
The
Saigon Union of Trading Co-operatives, Limited (Saigon Co-op) and Singapore
NTUC FairPrice Co-operative, Limited (FairPrice) announced their Saigon Co.op
– FairPrice joint venture on May 4 with a proposed new chain of hypermarkets.
The
joint venture, which has an initial investment of US$6 million of which 64
percent was contributed by Saigon Co.op and 36 percent by FairPrice - will
set up two hypermarket chains throughout the country under the brand names
Co.opXtra and Co.opXtraplus.
The
Chairman of Saigon Co.op said that the joint venture will launch one or two
hypermarkets each year in major cities and the first Co.opXtraplus, invested
with US$9 million, is scheduled to open in Thu Duc district,
Co.opXtra
targets individuals and households and Co.opXtraPlus will focus on
organisations, companies, schools, hotels, restaurants and other such
enterprises, he added.
Saigon
Co-op currently operates the Co-op Mart supermarket chain and Co-op Food and
Co-op stores in
FairPrice
is a retail giant in
Seeking
investment opportunities and promoting Vietnam-Finland trade links were the
focus of a seminar held in the central city of Danang on May 6.
Participants
were briefed about the city’s socio-economic development, its business
environment, policies to attract foreign investment and related regulations
to support establishing partnerships between Finish and Vietnamese
enterprises.
Development
programmes for businesses and universities in Danang funded by the Finish government
were also introduced.
The
Finnish businesses presented sectors on which they are currently focusing,
including clean technology solutions for water, energy and the environment,
as well as education, communications, information technology (IT), imports
and exports.
In
November, 2011 Danang signed a memorandum of understanding (MOU) with The
city of
However,
two-way trade turnover between Danang and
The
Danang Municipal Department of Industry and Trade and the Salo Business
Centre (Yrityssalo, Ltd.) reached an agreement last December on implementing
a sub-project to offer training courses for creating innovative standard
systems for enterprises in Danang.
After
winning first prize in the design contest for Tran Thi Ly and Nguyen Van Troi
bridges in Danang, the Finnish WPS Group signed a consultative contract with
the city in 2007.
In
2011, the Finish Foreign Ministry also agreed to sponsor three projects in
the city worth a total of VND1.53 billion as part of the Innovation
Partnership Programme (IPP).
Quang
Binh hosts 2013 trade and tourism fair
The
2013 trade and tourism fair, co-organized by the Quang Binh Provincial
Department of Industry and Trade and SHB Event Joint Stock Company, opened in
Dong Hoi city on May 6.
It has
more than 250 Vietnamese enterprises across the country, showcasing 350
stalls put up by a wide range of high-quality products such as conical hats,
garments and textiles, processed food, wooden furniture, fine and
handicrafts, and household goods.
The
provincial Department’s Deputy Director Dinh Minh Chat said the fair is a
good opportunity for them to find cooperation partners in the fields of trade
and tourism.
The
eight-day fair is part of activities to celebrate UNESCO’s recognition of
Exports
to
The
Vietnamese embassy’s trade office in
Among
In
2012, two-way trade turnover between
Farmers
to hold congress in June
The
sixth national congress of the Vietnam Farmers’ Union (VNFU) will take place
in June to clarify orientations and targets for the union’s action programmes
as well as farmers’ movement in the 2013-2018 period.
The
focus of discussion will be on the role of farmers and VNFU in developing
agriculture and building new rural areas in line with the resolution adopted
at the Party Central Committee’s 7th session (10th tenure).
Since
its establishment, the VNFU has spared no effort to improve farmers’ material
and spiritual life and promote socio-economic development in the process of
international cooperation towards the goal of making people rich and building
By the
end of 2012, the union had a total of 10,536 members in 92,700 villages and
hamlets across the country.
Vietnam-Malaysia
trade up 36.5 percent in Q1
Two-way
trade between
In
January-March period,
In
terms of investment,
According
to Vu Van Canh, Vietnamese Trade Counsellor to
The
figure is expected to hit US$ 8.5-9 billion in 2013, including US$ 5.2
billion worth of Vietnamese exports to
WB
pledges continued support for Vietnam
World
Bank (WB) East Asia and Pacific Regional Vice President Axel van Trotsenburg,
noted
Trotsenburg,
visiting
He
confirmed
He
urged
The
country should also attempt to increase capital received from the
International Bank for Reconstruction and Development (IBRD), he said.
At the
reception, Minister Vinh praised the WB for supporting
To
develop sustainably and consolidate social achievements
He said
the country is devising policy mechanisms to ensure received capital is used
efficiently. Over the next fiscal year, he said
Experts
are also drawing up the criteria for combining IDA and IBRD capital in the
same projects, improving IDA capital efficiency to create higher values.
Vinh
added that his ministry will compile a list of projects using the two kinds
of capital for submission to the Government. Upon Government approval, the
ministry and WB will begin fine-tuning funding criteria.
New
MoU boosts Vietnam-IRRI rice cooperation
The
MoU was signed by Minister of Agriculture and Rural Development Cao Duc Phat
and IRRI Director Robert S. Zeigler in
Phat
said
The
country is also addressing climate change, which is forecast to seriously hit
Zeigler
expressed his pleasure at the IRRI’s contributions to the success of
He
described
As one
of the leading agricultural research institutes in the world, IRRI has given
Annually,
the institute helps train thousands of Vietnamese apprentices and scientists
and creates conditions for
Vietnam
resumes fruit export to EU
Nguyen
Van Nga, Head of the Zone 2 Plant Quarantine Sub-Department of the Plant
Protection Department under the Ministry of Agriculture and Rural
Development, revealed the information on the sidelines of the Congress of the
Vietnamese Fruit and Vegetables Association held in
The
temporary halt of the export of five kinds of vegetables, namely basil, sweet
pepper, celery, bitter gourd and coriander began in early 2012 when the
produce failed to meet EU food hygiene and safety regulations.
EU
authorised agencies warned that if another five violations are detected they
will issue a ban on all fruit and vegetable imports from
To
avoid this, domestic exporters are advised to purchase fruits and vegetables
produced in line with Good Agricultural Practice (GAP) standards.
According
to the General Department of Customs, by mid-April, fruit and vegetable
exports have brought home US$224 million, and the figure is expected to
amount to US$1 billion this year.
Deposit
interest rates likely to go down
Low
inflation in April has provided a good chance for the State Bank of Vietnam
(SBV) to lower annual deposit interest rates to 7 percent and loan rates to
10 percent.
The
UK-based Standard Chartered Bank said in a recent report that the SBV “may
take advantage” of the country’s still-benign inflation to loosen its
monetary policies and go for another rate cut of 0.5 percent on deposits.
According
to the General Statistics Office (GSO), the consumer price index (CPI) in
April increased by 0.02 percent over the previous month due to the impact of
the pharmaceutical, medical services and transport sectors, but in the first
four months of 2013 by 2.41 percent from late last year’s level.
By
keeping inflation at 6-7 percent, the Government hopes the SBV will be able
to lower deposit and loan interest rates for businesses and help promote credit
and economic growth in the whole country.
The
International Monetary Fund (IMF) said the weak domestic supply in 2012
brought the country’s real GDP down to 5.25 percent compared to the 6.25
percent recorded in 2011, but the risk of runaway inflation has remained
high.
Many
securities companies forecast that deposit rates in the second quarter of
this year might drop to 7 percent if inflation was successfully kept at 6-7
percent.
Economist
Le Dang Doanh insisted the SBV cut deposit rates by 0.5 percent this year as
a precaution against the possibility of inflation rearing its ugly head again
in the petroleum, exchange and financial markets.
In
fact, there is not much room for adjusting interest rates. If they are
lowered again and again, inflation will get out of control. Once finding
their deposit rates in the negative citizens will invest their money in other
schemes like buying gold or foreign currencies, Doanh argued.
Although
the macroeconomy is back on track, the Government is resolved to control inflation
and money supply, even impose a ceiling on loan rates if need be.
Paradoxically,
there remain unfair differences between deposit rates and loan rates and,
more often than not, businesses have to access loans at a cutthroat rate of
15-18 percent.
As economists
put it, cutting deposit rates to lower loan rates is no easy task. They
propose banks first need to narrow the gap between deposit rates and loan
rates, rather than cut deposit rates only, to ensure the rights of depositors
as well as the flow of money into banks.
Footwear
sector strives for supply chain sustainability
The
footwear industry is set to expand its international cooperation and supply
chain for long-term, sustainable growth.
The
Ministry of Industry and Trade (MoIT) has recommended the footwear sector
capitalise on ongoing regional and global production transition trends to
achieve higher growth.
It
says the footwear industry must develop material production and focus on
seizing the advantages of modern technology while keeping environmental
concerns in mind.
The
Ministry also stresses the need for administrative reform—especially in tax
and customs—and for promoting local footwear product trademarks in overseas
markets. Expanding markets and distribution networks are also required if export
activity is to be boosted, the MoIT says.
Economists
say that
According
to the MoIT’s latest report,
Tech
forum on marine economy development
A
forum and exhibition on technology serving the development of
The
first-ever event, jointly held by the Ministry of Natural Resources and
Environment (MONRE) and the Vietnam Administration of Sea and Islands (VASI),
aims to assess the current situation and opportunities to develop Vietnam’s
sea-based economy using marine technology.
It has
attracted more than 300 participants, including domestic and foreign
researchers of marine technology, officials from 28 coastal provinces and
cities, non-governmental organisations as well as businesses from France,
Germany, the US, the Republic of Korea and Canada.
Domestic
and international marine technologies cover areas like the environment,
energy, construction, disaster prevention, fishing, marine tourism,
pharmaceutical chemistry, fresh water production, oil and gas, and minerals.
Therefore,
it is necessary to consider building marine science and technology to satisfy
At the
forum, participants gave their opinions on measures, products and services
relating to marine technology. Particularly, the Canadian Foreign Ministry in
coordination with its embassy in
According
to the VASI,
Securities
firms seek plans to dissolve
Securities
companies are shutting down or threatened by dissolution as the economic
recovery takes time to have an effect.
Cho
Lon Securities Company recently announced that it would close after seven
years. All their debts and contracts will be dealt with by the end of
October. Au Viet Securities Company will also dissolve the company and try to
complete all payment in 2013.
Meanwhile,
many other companies have chosen to leave the market without major public
announcements, such as the Lien Viet Securities Company that withdrew its
membership from the country’s two stock exchanges.
The
State Securities Commission of Vietnam (SSC) is also contemplating to revoke
licences of Truong Son,
Those
three companies technically have not worked in the past year because of poor
financial security. Trang An Securities was also suspended because of its
financial plight in April.
Dozens
of other brokerage firms are suffering from debts, violations, and special
controls from the SSC because they could not maintain healthy indexes.
Last
year, the securities market received a heavy blow from the recession and some
companies even incurred losses for six consecutive years, laying off staff,
closing offices and withdrawing from the stock market.
Because
of the small size of
Even
if the small brokerage firms can invest themselves to earn some income, they
face huge challenge now from the tough times.
Several
experts said firms would not publicly announce their dissolution which they
deemed as a difficult task because of required procedures.
The
ministry of Planning and Investment has recently analysed the benefits and
problems of 25 years of foreign direct investment.
One of
the most pressing problems has been tax avoidance. Coca-cola was the most
recent example. The soft drinks corporation has expanded since 1993 but
Coca-Cola
Adidas
Talking
with VTV1, deputy minister of Planning and Investment Bui Quang Vinh said
transfer pricing is a common problem in any countries that have FDI
companies.
Those
companies have closed production processes because their raw materials come
from the mother companies so it is difficult to check the input and output
costs.
"It's
the responsibility and a challenge for the finance and tax departments,"
Vinh said.
A plan
to prevent transfer pricing was approved two years ago but Vinh said it needs
co-operation from many state agencies. "We should be stricter with this
problem but we shouldn't blow it out of proportion because
After
25 years of attracting foreign investments,
However,
FDI projects also have some shortcomings such as low added value and lower
capital disbursements.
Technologies
that have been transferred to
The
SCIC manages the capital of hundreds of firms with a total portfolio market
value of VND50 trillion (USD2.4 million). However, most of SCIC's revenue
come from interest from banks and in 2012, deposits money reached VND19.6
trillion.
Meanwhile,
hundreds of medium and small-scaled firms are unable to access the
preferential loans to maintain their operations.
Nine
enterprises in the city have drafted their restructuring plans and five plans
have already been approved. However, there are still about 30 enterprises
that are set to be restructured during 2013-2015 period.
They
have also asked for the management of national highway sections that run
through the city and capital to improve the roads.
Fuel
price stabilisation fund publicised
Deputy
PM Vu Van Ninh has asked the Ministry of Finance to announce the management
and spending of the fuel price stabilization fund every quarter.
The
move aims to strengthen transparency of the fund and provide official
information to relevant organizations and residents.
Earlier,
the Ministry of Industry and Trade said that Circular 84/2009/ND-CP regarding
petrol businesses will be amended and submitted to the Government before the
end of June.
The
fuel price stabilization fund was founded based on Circular 84, under which
wholesale petrol enterprises must set aside funds to stabilize prices.
Foreign
firms heat up domestic retail market
France-based
Auchan, one of the world’s largest hypermarket chains, plans to invest 500
million USD over the next decade in
Economists
have described the group’s return as tinder that fuels the country’s hot
retail market.
Founded
by Gerard Mulliez, one of the wealthiest people in
Earlier
this year, E-mart, a subsidiary of Shinsegae – one of the leading retailers
of the
The
RoK group expects to establish 52 supermarkets and outlets by 2020 with total
investment amounting to 1 billion USD.
E-mart
Sales Director Ja Young Heo describes
Last
year, the group imported over 7.88 million USD worth of products from
Last
year also saw an influx of investment from Japanese companies Aeon and
Takashimaya.
Aeon
is building Celado Shopping Mall, which will be the largest hypermarket in
The
group has also worked with Trung Nguyen Group to set up 13 Ministop
convenience stores in
Takashimaya,
a leading Japanese retailer, will operate on a site of 15,000 square metres
in the Saigon Centre in 2015.
Other
retailers that have gained a firm foothold in
With
17 commercial centres running successfully in
Domestic
firms are also seeking ways to compete in the modern retail market, which is
traditionally dominated by foreign groups.
Co.opmart
has joined hands with NTUC FairPrice of Singapore to establish a chain of
hypermarkets called Co.op Xtra Plus in
According
to Saigon Co.op General Director Nguyen Thi Hanh, the move marks an important
milestone in the group’s retail market development strategy.
Maximart,
which has been operating in
Sharing
successful experiences in
The
Ministry of Industry and Trade expects that by 2020, the country will have
1,200 supermarkets, 157 shopping centres and 180 trade centres.
Registering
a growth rate of 14.8 percent in 2007-2012, the country’s purchasing power
was forecast to attain a value of 89.7 billion USD by early this year.
In
2013-2015, retails revenues are forecast to grow 8.5 percent a year
averagely.
Banking
mergers get hotter
Various
Vietnamese banks are seeking merger and acquisition (M&A) deals as well
as strategic partners to make them stronger.
Eximbank,
a major Vietnamese lender in which
The Ho
Chi Minh City-based bank’s annual general meeting late April approved a
merger plan, assigning the board of directors to be responsible for carrying
out the deal.
Eximbank
chairman Le Hung Dung said such a merger would enable the lender to rapidly
expand its network under the guidelines set forth by the State Bank of
Late this
January, Eximbank and Sacombank signed a cooperation agreement saying they
might merge in the next five years. Eximbank and Sacombank are the fourth and
fifth largest non-State commercial banks in
However
at the annual general meeting, Dung did not say Eximbank would merge with
Sacombank. Instead, he noted that Eximbank currently had a total of 217
branches and points of transaction nationwide, just in
“I
supposed that we can set up five branches and points of transaction each
year, we’ll need 40 years be equal to Sacombank’s current number,” Dung said.
Sacombank
is now negotiating to sell a maximum of 20 per cent of its chartered capital
to a foreign strategic shareholder, set to be completed this year. Its
chairman Pham Huu Phu did not disclose any name of buyers.
Ho Chi
Minh City Development Bank, or HDBank, also has M&A plans. The State Bank
has given it the green light to merge with Dong Nai province-based Dai A
Bank, said its chairwoman Le Thi Bang Tam. HDBank’s annual general meeting
late April also approved a merger scheme.
Elsewhere,
Military Bank is seeking a foreign strategic shareholder while local lenders
are hoping to merge into the second largest non-State commercial bank in
terms of assets. The minimum ownership for the strategic shareholder must be
5 per cent. So far, no prospective M&A deal seems appealing as no Vietnamese
lenders meet Military Bank’s financial health requirements, which focus on
non-performing loans and financial safety.
An
Binh Bank, meanwhile, is calling for a higher foreign ownership limit, as the
lender contends this would be preferable to an M&A plan. An Binh Bank
chairman Vu Van Tien said at its annual general meeting late April that his
bank wanted the limit to be raised to 49 per cent of its chartered capital
instead of the current 30 per cent under Vietnamese laws. He added his bank currently
saw no need for a merger.
At
present, An Binh Bank has four major corporate shareholders, namely the World
Bank’s International Finance Corporation (IFC),
Ho Chi
Minh City-based Dong A Bank, meanwhile, acknowledged at its 2013 annual
general meeting late April that it is also pondering M&A deals. Chairman
Pham Van Bu said three or four local banks had made inquiries on a possible
merger, and his bank was considering them.
Meanwhile,
Western Bank and PetroVietnam Finance Cooperation have confirmed their merger
plan with shares of the two firms valued equally. PVFC is now a credit
institution specialising in wholesale while a strong point at Western Bank is
retail.
According
to their draft merger contract, the merged bank is expected to have a charter
capital of VND9 trillion, ($432.7 million) or 900 million shares at par value
at VND10,000 per share.
Viettel
gets nod to provide cable TV services
The
military-run mobile service operator Viettel has reportedly been licensed to
provide cable television services and plans to start the business in the last
quarter of this year, a source told the Daily.
Viettel
will be allowed provide digital and analog cable TV services nationwide,
except in major cities including
Viettel
plans to launch the services in the last quarter of this year. Viettel will
focus its cable TV services on rural markets by offering affordable packages,
at only some VND30,000-50,000 a month.
Hoang
Anh Xuan, general director of Viettel, declined to reveal the service fee but
told the Daily earlier that his company would offer service packages
targeting poor people. That is what Viettel has done with its mobile phone
services up to now.
The
license for Viettel came after about one and a half years waiting for the
consideration from the Ministry of Information and Communications.
Nguyen
Manh Hung, deputy general director of Viettel, who was so impatient with the
time-consuming licensing procedure, had during a meeting last year urged the
ministry to allow his firm to carry out the business. At the same meeting,
Deputy Prime Minister Nguyen Thien Nhan expressed his support to Viettel’s
petition, saying cable TV services should be available for all people instead
of residents in urban areas only.
Before
being given the license for cable TV services, Viettel had been granted
another license to operate as an Internet Protocol Television (IPTV) services
provider.
As
such, Viettel is the only firm given permission to provide cable TV services
among a slew of telecom enterprises applying for the right. Meanwhile,
applications of other entities like AVG, FPT and VNPT now are still being
weighed by the information ministry.
The
local pay TV market has been developing for over a decade with some 50
services providers nationwide, the information ministry reports. However,
only more than four million households out of 20 million in the country are
using pay TV services, mainly in urban areas, according to the ministry.
HOSE
builds data backup center
The
Hochiminh Stock Exchange (HOSE) commenced work on a data backup center in
HOSE
chairman Tran Dac Sinh said that the center, which will cover an area of over
16,000 square meters with nine stories, one mezzanine and a supporting block
on 325 square meters, will be an information technology (IT) service center
and archive of HOSE, southern units of the Ministry of Finance and securities
companies.
This
facility will be the largest and most advanced data backup center in
The
project requires total investment of VND300 billion and is expected for
completion in the first quarter of next year.
The
center is one of three large projects HOSE is deploying, the others being an
IT project conducted by contractor Korea Stock Exchange and a housing
project.
Source:
VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
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Thứ Năm, 9 tháng 5, 2013
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