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BUSINESS IN BRIEF 28/5
Vietnamese and
Japanese scientists have agreed to study genetically modified cassava to
produce a high-yield variety, helping reduce soil erosion or depletion in
cassava-growing areas.
A document to this
effect was signed in the Japanese city of
Addressing the
signing ceremony, Deputy Prime Minister Nguyen Thien Nhan said that he hopes
the project will be a success to pave the way for future agricultural
cooperation between the countries.
In the coming time,
a joint laboratory will be set up in
First int’l
sea-tourism fair attracts foreign businesses
Eighty foreign
businesses will attend the first international thematic fair on sea and
island tourism in
The Nha
Trang-Vietnam International Sea and Island Tourism Fair 2013, part of the
2013 Nha Trang Sea Festival, will have 160 booths introducing marine tourism
products and services of local tour operators as well as travel agencies from
Russia, Western Europe, Australia, New Zealand, Northeastern Asia, ASEAN and
Middle East.
Besides promoting
Located 440km from
Heat goes
on builders
A tough, new
anti-fire law is to put the heat on property developers.
The draft law’s
Article 23 states that high buildings, underground and natural minerals
exploitation projects, and steel-framed and iron sheet-roofed houses must
have solutions to prevent fire, smoke congestion and toxic gas.
Importantly, all
projects must be equipped with fire-detecting automatic systems. Besides
stipulating stiff anti-fire regulations for nuclear power projects, investors
must “use anti-fire construction and decoration materials for super-high
buildings.”
Moreover, the draft
law also orders in its Article 25 that at markets and commercial centres,
power systems for different purposes must be put separately. Notably, the markets
and centres must have emergency exits. All anti-fire automatic solutions must
be installed.
Worryingly, few
markets and commercial centres now have emergency exits, while anti-fire
equipment was of poor quality, said Nguyen Kim Khoa, chairman of the National
Assembly’s National Security and Defence Committee.
He said these new
regulations were either not carved or remained unclear in the existing Law on
Fire Prevention issued in 2010, which also failed to clarify the
responsibilities of heads of agencies, organisations and households in fire
prevention. However, in this new law, property owners may face criminal
prosecution from losses about human and assets due to fire.
Deputy Minister of
Public Security Pham Quy Ngo said these new regulations were “a good solution
to curb the increasing number of blazes.”
During 2002-2011,
Vietnam was home to nearly 20,000 big blazes in factories, schools, hospitals
and houses, killing 712 people, injuring more than 1,900 people and causing
financial losses of $201.3 million.
Such fires stemmed
from cooking, power, chemicals, gas and fuel.
“Enterprises’
investments in anti-fire measures remain limited and they are not serious
about implementing anti-fire regulations. Notably, many foreign-invested
enterprises in
For instance, a big
fire on May 18 burnt locally-owned shoe-maker Duy Hung Company and Taiwan’s
shoe sole maker Shangone Vietnam in southern Binh Duong province’s Song Than
Industrial Park, while three days before, a fire damaged Taiwanese
footwear-maker Pou Yuen Vietnam, supplier of global brands like Adidas, Nike,
Reebook and Puma.
In April, some
blazes also hit five factories based in the park. However, Khoa said the
draft law needed to clarify the criteria about high buildings and super-high
buildings. Also, anti-fire regulations must also be imposed on metros,
electric fly-overs and tunnels.
Eastside
Story: a new Hanoi grows across the Red River
The arrival of
Aeon will start
construction of its first project in
Aeon is a prominent
player among many developers eyeing the potential of
Fast development of
new infrastructures together with the increasing number of residential and
multi complex projects in the eastern
Although Long Bien
is a short drive to
Hoang Hanh My, a
resident in Viet Hung new urban complex, told VIR that she had moved to this
area for more than two years, from the old style living quarters of inner
Moreover, she said
the four current bridges over the
The area and
facilities, My said, were developing quickly and living standards continued
to improve.
Real estate
development in Long Bien has moved forward quickly in recent months with the
openings of Savico Megamall and Vincom Centre, as well as other prime
mixed-use developments such as the under-construction Mipec project next to
Long Bien bridge.
Richard Leech, CBRE
Vietnam executive director, said he believed that the infrastructure had
developed well. Leech said the occupancy rate in
In the first five
months of the year, Leech said, the demand for the Big C hypermarket, food
and beverage and entertainment in
However, economic
woes are also impacting to the number of customers coming to
Another salesgirl
at Madison underwear shop with scores of leading domestic and foreign brands
such as Vietnam’s Vera, Misaki, Wow and American’s Jokey, Jbuss or France’s
Ell said that from the beginning of this year, though domestic brands reduced
their price by 50 per cent and foreign brands by 30 per cent, the number of
products sold was not many and shoppers were mostly women.
At Junger
In order to lure
more customers to
As the urban
infrastructure expands east of Hanoi, big developers are engaged in big
projects such as Vincom Village, BVIS International School, Berjaya’s Hanoi
Garden City, (Vihajico) Ecopark, and Viet Hung new urban area developed by
Housing Urban Development Corporation.
Door set to
open for more foreign property buying
The Ministry of
Construction plans to open the doors far wider for foreigners to buy property
in
Trinh Dinh Dung,
Minister of Construction, admitted the current tight restrictions on foreign
housing ownership had badly impacted on the local real estate market.
In a
ground-breaking move, Dung said the Ministry of Construction would propose
foreigners be eligible to buy villas or private houses, not only high-end
apartments as currently, in its plan to revise the Housing Law and the Real
Estate Business Law.
Moreover, Dung said
foreign enterprises would be permitted to buy and own office buildings.
Dung revealed the
above information during a meeting last week in
According to the
Ministry of Construction, the revised ownership rules could be put into implementation
in 2015 when the revised laws could be approved.
“We are now at the
planning step and the revised laws will seek public opinions before being
submitted to the National Assembly in 2014,” Dung said.
According to
Resolution 19 dated June 3, 2008, five types of organisations and foreign
individuals are eligible to buy and own homes in
However, the
reality is that with the complicated procedures and the tight regulations, a
very small number of foreigners and overseas Vietnamese (Viet Kieu) were
reported to have bought homes in
A most revealing
statistic provided by the General Department of Land Management shows that
after four years from the date the government started permitting overseas
Vietnamese and foreigners to own their houses in
Meanwhile, it is
estimated that more than 80,000 foreigners and overseas Vietnamese are living
and working in
Experts said that
in the context that a large amount of accommodation still unsold, encouraging
foreigners to buy houses could be a good channel to absorb these unsold
units.
The Mekong Delta’s
total rice output is expected to reach 9.3 million tonnes in the 2013
summer-autumn crop, said the Ministry of Agriculture and Rural Development
(MARD) at a conference in Can Tho city on May 23.
The region also
targets more than 4.6 million tonnes of husked rice, including 3.1 million
tonnes for trade, it said.
According to the
ministry, the country’s rice bowl has more than 1.8 hectares for the ongoing
summer-autumn rice crop, representing a decrease of over 6,400 hectares. By
May 8, more than 1.1 million hectares have been filled, accounting for over
62 percent of the plan.
In an effort to
stabilise rice price and ensure minimum profits for farmers, the MARD has
mapped out a plan on 2013 summer-autumn crop rice reserves to be submitted to
the Prime Minister.
Under the plan, the
ministry proposed purchasing 1 million tonnes of rice for reserves, or 30
percent of total output reaped in the 2013 summer-autumn crop, within two
months, beginning from June 15.
According to the
Vietnam Food Association, by May 16,
The country signed
contracts to export 4.42 million tonnes of rice, of which nearly 2.4 million
tonnes have been handed over to customers.
Meanwhile, the rice
volume for domestic consumption is expected to hit 8 million tonnes in 2013,
excluding an inventory of 787,000 tonnes from the previous year.
The MARD said that
Vietnamese rice will continue facing difficulties in 2013 as import demands
of several Asian countries are forecast to sharply fall and increasing
competitions among exporters, with newly emerging rivals such as
Making
audit reports add up for firms
Tran Hang Thu, KPMG
Vietnam’s Audit partner takes an expert look at how understanding the
mechanics of audited statements will give firms a clearer view of the
business landscape.
As companies are
due to submit their audited financial statements, which will subject to
scrutinizing during Annual General Shareholder Meetings, it has become
increasingly important for stakeholders to navigate and understand the key
elements of the audit reports attached to the financial statements - an area
that is not familiar to everyone.
The public tends to
recognise any issues mentioned in audit report as “points being highlighted
by the auditor” regardless of where or how the issue is mentioned. It has
been observed in quite a number of listed companies’ financial statements
published so far this year that there is an increasing appearance of “Emphasis
of Matter” paragraph right after the audit opinion section. Many users often
wonder what auditor wants to communicate within this Emphasis of Matter (EOM)
paragraph and how the issues mentioned add to the overall picture of the
related financial statements’ truth and fairness?
The meaning of an
EOM in audit report is different from a qualification – an audit report with
an EOM is still considered a “clean audit report” assuming that there is no
other issue subject to auditor’s qualification. On another word, the auditor
has been able to obtain sufficient audit evidence regarding the recognition,
presentation and disclosure in the financial statements of the matter being
highlighted in the EOM but the auditor would like bring such matter to the
financial statements readers’ attention due to its importance to the user’s
understanding of the financial statements while the financial statements are
considered to give a true and fair view. However, auditors and financial
statements reader should be cautious about the use of EOM paragraphs. In fact
a widespread use of EOM paragraphs diminishes the effectiveness of auditor’s
communication of such matters. Additionally, incorporating too much
information in an EOM may imply that the audited entity’s management has not
included enough information in the related financial statements.
In general, an EOM
paragraph is used mainly in the case that a significant uncertainty exists
having a material effect on the financial position and performance of the
audited entity. A common example of significant uncertainty is relating to
the ability of the entity to continue as a going concern which may be subject
to the occurrence or non-occurrence of future events. When adequate
disclosure about the uncertainty is provided in the financial statements, the
auditor would ordinarily include an EOM paragraph to highlight the
uncertainty that may cast significant doubt on the entity’s ability to
continue as a going concern. However, the important point is that the auditor
has not opined that the going concern is not appropriate. The auditor has
still agreed that the going concern is still appropriate and the financial
statements are true and fair.
If the entity does
not provide adequate disclosure about the uncertainty in the financial
statements, an emphasis of matter paragraph would be inappropriate since the
financial statements as a whole are not true and fair. Instead, the audit
opinion would have to be qualified. In case the auditor is unable to obtain
sufficient audit evidence about the ability to continue as a going concern or
does not agreethat going concern assumption is appropriate, the auditor would
express a disclaimer of opinion or adverse opinion.
Significant
uncertainty may also exist in relation to results of outstanding lawsuit
filed against the entity. In this case the lawsuit is on-going and has not
been concluded at the year-end while based on information available at the
year-end date it is not possible for entity’s management to assess the
potential outcomes of the case. Similar to the uncertainty over going
concern, if the uncertainty over the lawsuit is explained sufficiently in the
note to financial statements; the auditor would include an EOM to refer to
such explanation as opposed to the case where there is not sufficient
explanation regarding the lawsuit in the financial statements, a qualified
opinion is likely to be needed, assuming the potential contingent effects is
material to the financial statements.
Uncertainties
however must associate with a future event and therefore issues for which
there are indications or conditions confirming their existence at the balance
sheet date should not be mentioned in an EOM. Cases such as additional
provision for income tax which should have been accrued based on the prevailing
tax regulations but in fact not being made as management arguing that it is
subject to official tax notice or allowance for bad debts not being provided
for as management is working toward revising the original payment terms are
clearly not matters of uncertainty for which a qualification is appropriate
not an EOM. Similarly issues that associate with wrong accounting treatments
should never be reported within an EOM.
The need to
distinguish an EOM and a qualification is key to understand audit reports.
Audit reports, as the final products of the audits and their quality, play a
fundamental role in bringing transparency to the capital market. In order for
a financial statements user to make informed decision he needs to learn how
to extract the right information when reading audit reports. Understanding of
situations where EOM paragraphs may be used also helps user to evaluate the
quality of the audit report to a certain extent.
The views expressed
by the author here do not necessarily represent the views and opinions of
KPMG Vietnam.
Processing
and manufacturing attract 90 percent of total FDI
As many as 398 new
foreign investment projects have been licensed and 160 ongoing foreign
investment projects have been approved to raise their investment capital.
Noticeably,
processing and manufacturing industries have lured $ 7.6 billion, making up
89.2 percent of the total registered capital of the FDI projects.
Meanwhile, Thai
Nguyen province, attracting more than $ 2 billion of FDI, has topped the list
of localities across the country in terms of luring FDI. It was followed by
Binh Dinh, Binh Duong, Dong Nai and Vinh Phuc.
Major FDI projects
that have been licensed or approved to add capital since the beginning of the
year included Nghi Son oil refinery in Thanh Hoa, Samsung Electronics Vietnam
project in Thai Nguyen,
Ads on cell
phones rising
With the increasing
number of Internet users via cell phones, many enterprises have spent much on
developing advertising services on such devices which are considered a good
advertising channel.
On the occasion of
launching the Google Display Network in
According to James
McClure, head of Google’s Emerging Markets for Southeast and
Realizing the
importance of mobile devices, Google has developed strategies as well as
introduced many products and services for such devices. However, Google has
yet to have an office in
For instance,
Goldsun Media Focus has poured heavy investments in advertising
infrastructure and services for cell phones to build a network called
SoSmart, and has had around 600 million visitors every month.
The figure accounts
for 65% of the number of visitors accessing the Internet by cell phones in
According to market
researcher Nielsen, the cell-phone penetration rate in
Besides, among the
rest of cell phones users, half of them want to acquire smartphones.
Another market
research shows that 40% of cell phone users both watch television and use
their cell phones or tablet computers, 56% use cell phones to search for
information about products they have seen on television, 25% use cell phones
to find information from posters and 35% use cell phones to search for
information they saw on newspapers.
Enterprises have
noticed a change in behavior of consumers and thus are finding ways to get
access to those customers.
Several brands like
Coca Cola Vietnam, VietJetAir, VP Bank and Sanyo have used the advertising
system of SoSmart.
However, mobile
advertising is currently used as a supplementary channel for traditional
advertising channels.
Eximbank
prioritizes risk management
Risk management in
the banking system must be the top priority given increasing difficulties of
the economy and higher bad debt danger, said Le Hung Dung, chairman of
Vietnam Export Import Commercial Bank, or Eximbank.
Sticking to the
motto “Prevention is better than cure”, Eximbank has strictly followed risk
management rules over the past time to secure safe development of its entire
system. The bank has launched a credit center into operation to improve
credit quality of branches and credit policies.
Therefore, Eximbank
has bettered control over credit quality, Dung told the Daily on the occasion
of the Third Class Labor Medal Receiving Ceremony on Wednesday. Dung, who
also serves as Chairman of the Board of Members of Saigon Jewelry Company,
won the title for his contributions to the society since 2008.
The bank’s
management activities have also received supports from its foreign strategic
partner Sumitomo Mitsui Banking Corporation (SMBC). Its risk management
system has met international standards, which are stricter than those
regulated in the country.
This year, Dung
said Eximbank still aims to boost credit growth rate but it will focus on
risk management by controlling credit quality and drastically handling
overdue debts and bad debts.
Eximbank posted up
a modest credit growth of only 0.04% in 2012 and 0.03% in the first quarter
of this year. Its bad debt ratio stayed low at around 1.33%, which was almost
unchanged compared to late 2012.
Eximbank has been
granted with the Best Managed Bank in Vietnam 2013 Award by The Asian Banker.
Giving this award to Eximbank, the magazine has recognized the lender’s
sustainable development in the recent three years.
Truong Van Phuoc,
general director of Eximbank, has also received The Asian Banker Leadership
Achievement Awards 2013 title.
Eximbank is among
commercial banks that boast biggest total assets in
Despite challenges
in the banking network, the bank targets to gain VND3.2 trillion in pre-tax
profit in 2013, a 12.2% year-on-year increase, and pay dividend for
shareholders at 12%. This dividend rate is much higher than the average of
the banking sector.
Eximbank’s general
director Truong Van Phuoc said that the high target will encourage the bank
to put more effort in business operations, focusing on retail banking and
loans for export and import enterprises this year.
The Asian Banker is
one of prestigious magazines in the Asia-Pacific and globally. It is founded
in
Its quarterly
publications have attracted many readers who are businesspeople in the region
and worldwide. Every year, the magazine organizes selections of outstanding
names in the banking industry in areas of finance trade, currency management
and payment among others.
BIDV to
offer VND10 trillion preferential home loans
Bank for Investment
and Development of Vietnam (BIDV) will be able to offer preferential home
loans worth VND10 trillion as part of the Government’s VND30-trillion program.
BIDV said in a
statement on Thursday that it had registered this credit volume.
Since a circular of
the Ministry of Construction and another of the central bank relating the
program had come out, BIDV has quickly mobilized resources to make loans
under the program.
In the first 2-3
years, the lender will give 60% of the soft loans to corporate clients and
40% to individual homebuyers. The ratio will be changed to 30:70 in the
fourth year.
Owners of low-cost
housing projects or commercial-turned-budget home projects will be granted
loans worth 20% of the total investment cost with a five-year term and an
interest rate of 6% per annum.
As for individuals
wanting to buy budget condos or commercial homes of less than 70 square
meters priced below VND15 million per square meter, BIDV will provide loans
for State employees, low-income people, and retired and self-employed people.
The maximum loan term for individual borrowers is 15 years and the interest
rate is 6% per year for 2013.
The interest rate
for the following years will be announced by the central bank in December
each year. Basically, it will equal 50% of the average lending rate on the
market but not exceed 6%.
The above lending
rate will apply for ten years at most. After that, BIDV will set a rate equivalent
to the interest rate for a 12-month deposit plus two percentage points.
The bank has issued
guidelines about the preferential lending program to all of its branches and
transaction offices nationwide.
BIDV will give
priority to the half-done projects that can be finalized in 2013-2015, and
those having finished investment procedures or having sold over 50% of their
apartments.
The lender said it
would try to disburse loans for corporate clients in less than 20 working
days and those for individual borrowers in less than four days.
BIDV has pledged to
lend to three low-cost housing projects with a total of 1,068 apartments.
They include a project developed by Vinaconex Xuan Mai, a project located at
the eastern end of
These projects are
scheduled for completion in 2013-2014. BIDV has promised to provide them with
VND231 billion loans, of which VND101 billion has been disbursed.
BIDV will try to
deploy its preferential home loan program right in this quarter. The bank
expects to disburse over VND2.7 trillion this year.
Satra rep
office in
The representative
office of
The office at
In addition, the
office will promote trade, investment and tourism on behalf of the HCMC
government.
The representative
office will help HCMC firms organize and attend fairs, exhibitions and
workshops, conduct market surveys and hold talks with partners from
Moreover, the
office will introduce the history, culture and tourism of HCMC to
Satra said it would
set up a branch in
Those in need of
assistance can contact Dao Ngoc Tam, chief of the representative office of
Satra in
Ownership
certificates sought for improper homes
Owners of houses
not complying with approved designs might still get home ownership
certificates if the proposal made by the HCMC Department of Natural Resources
and Environment was accepted.
In HCMC, there are
still nearly 130,000 properties ineligible for certificates for various
reasons like complicated land origins, illegal trade, disputes and violations
committed by project owners, said the environment department.
To finish granting
land use right certificates and home ownership certificates by the end of
this year in accordance with Directive 1474 of the Prime Minister, the
department has submitted some suggestions to the HCMC government.
Owners of houses
not meeting their designs yet still consistent with the overall planning of
the 1/2,000 scale should be granted home ownership certificates. As for
houses smaller than designed, which do not affect the urban landscape,
district governments should also consider issuing home ownership certificates
to their owners, the department suggested.
Earlier, the HCMC
government has reported to the central authorities on some measures to
accelerate the certificate granting process.
For example, some
properties developed after October 15, 1993 and before the planning was
published are inconsistent with the planning. Owners of such properties
should be granted certificates if the State had not set a specific time for
implementing the planning yet, said the municipal government.
Those buying condos
at property projects should be given home ownership certificates after
completing payments regardless of the violations committed by the project
owners during the construction process, said the environment department.
VFA,
The summer-autumn
rice crop will enter its peak harvest season in less than a week, but the
Vietnam Food Association (VFA) and the Mekong Delta provinces have not
reached an agreement on the rice volume to be bought for temporary storage.
VFA suggests
stockpiling 500,000 tons, versus one million tons in the winter-spring crop.
Meanwhile, provincial authorities want a higher volume.
Nguyen Van Ngung,
deputy director of the Soc Trang Department of Industry and Trade, said the
rice storage amount should be increased to 1.5 million tons.
A representative of
the government of
“Therefore, I
propose raising the temporary storage target to 1.5 million tons in this
summer-autumn crop,” he said at a conference on rice stockpiling in the
Mekong Delta held in Can Tho City on Thursday.
However, VFA
Chairman Nguyen Thanh Phong said a larger amount would spell trouble for rice
exporters, especially in the context of mounting rice inventory in
Not only the rice
storage volume, but the agency in charge of the stockpiling program has also
remained undecided.
The Ministry of
Agriculture and Rural Development has drafted regulations on rice stockpiling
in the Mekong Delta, suggesting that either VFA or the Mekong Delta’s local
governments should be in charge of the program. The final decision will be
made by the Government.
Either way, VFA
should coordinate with local governments to provide information about the
stockpiling process and the production situation. VFA must disclose the
points of purchase and the purchase prices to local governments and farmers,
said Deputy Minister of Agriculture and Rural Development Vu Van Tam.
The rice storage
for the summer-autumn crop is scheduled to take place from June 15 to August
15. Enterprises participating in the program will enjoy a zero lending rate
for three months, but many rice exporters want the interest-free period to be
extended to four months.
High duties
push up fuel retail prices
The average price
of finished fuel products imported by wholesalers is now much lower than this
time last year, but fuel retail prices are more exorbitant because of high
import tariffs.
Over 70,700 tons of
petrol worth more than US$67 million was imported in the first half of May.
On average, the price of each ton of imported petrol was US$950, according to
the General Department of Customs.
As of mid-May,
petrol imports totaled nearly 880,000 tons, worth more than US$929 million.
The five-month average import price was around US$1,056 per ton.
The average price
year-on-year was much higher. Last year, the average petrol import price in
the first half of May was US$1,113 per ton and the five-month price was
US$1,126 a ton.
As for diesel oil,
imports in the first half of May amounted to more than 131,000 tons, worth
around US$112 million. By the middle of May, nearly 1.1 million tons of
diesel oil had been imported, costing over US$1 billion.
The average prices
in these two periods were US$853 and US$924 per ton respectively, versus
US$980 and US$1,007 last year.
Yet, fuel retail
prices moved in an opposite direction. Currently, each liter of A92 petrol
sells for VND23,330 and diesel oil VND21,250.
This time last
year, the two items were priced at VND23,300 and VND21,200 per liter
respectively.
On May 23, 2012, the
governing body issued a decision on reducing petrol retail price by VND600
and diesel oil VND400. As such, RON92 petrol and diesel oil prices dropped to
a respective VND22,700 and VND21,200.
The main reason for
this difference is import tariffs. The current import tax on petrol is 19%,
while diesel oil is charged at 14%.
This time last
year, import duties on gasoline and diesel oil were only 2% and 1%
respectively, and then increased to 4% and 3% on May 23, 2012 in accordance
with the above-mentioned decision.
With 19% import
duty, each liter of petrol is bearing VND3,000 of tax. Plus excise tax, value
added tax and environmental protection tax, one liter of gasoline is now
subject to nearly VND8,000, said the Vietnam Petroleum Association (Vinpa).
Similarly, import
tariff is occupying VND2,125 of the price of each diesel oil liter. Overall,
taxes are making up nearly VND5,000 of diesel oil retail price.
This year, import
tariffs on fuel have constantly been hiked, especially since April. On May 8,
the Ministry of Finance decided to raise petrol import duty from 16% to 19%
and diesel oil 12% to 14% when the global prices fell.
According to the
statistics of the General Department of Customs, fuel imports in the first
half of May as well as since January 1 are lower than the same period last
year.
The total import
volume of gasoline, diesel oil, kerosene, fuel oil and aviation fuel since
the beginning of the year is more than 2.7 million tons, worth over US$2.5
billion, versus 3.3 million tons and US$3.4 billion year-on-year.
Travelport
renews contract with Galileo Vietnam
Travelport, a major
provider of transaction processing solutions and data for the global travel
industry, has renewed a multi-year service contract with Galileo
Pham Van Hien,
chairman of Galileo
The agreement came
after 10 years of successful partnership between the two sides. The new
signing consolidated Galileo
Hien said over the
past decade, more than 500 agencies had used Galileo’s global distribution
system (GDS) services for their daily business in
Andres commented
that the commitment of Galileo
Hien said Galileo
“We look forward to
continuing our work with Travelport, and continuing to provide cutting-edge
solutions to travel agencies,” Hien said. He added that Galileo Vietnam was
excited about the future of the hospitality and tourism industry in the
region.
Andres said the
travel industry in
Galileo
Government
asked to clarify standards for assessing public debt
While the
government said
The NA held a
working session on May 22 to review the results of socioeconomic development
and state budget in 2012, as well as the implementation of development plans
in the first months of this year.
The country’s
public debts drew much of the attention of NA deputies during the meeting.
NA Deputy, Truong
Thi Anh, from
“The government
should clarify the criteria it uses to assess the safety of public debts and
submit it to the NA for approval,” Anh proposed.
Deputy Tran Du Lich
said even though it is necessary to control public debt, the NA should take
into account the implications of reconsidering the rate of state budget
deficit spending, so as to loosen fiscal policies and boost demand.
“The government’s
plan to issue VND45 trillion (USD2.14 billion) in bonds for some industries
is significant, but first priority should be given to the settlement of debts
owed by public investment projects to enterprises, projects already underway
and those that are nearly complete,” Lich recommended.
Although a government
report released at the NA’s opening session on May 20 said that the country’s
public debts are still at acceptable levels, it did not mention a specific
figure.
However, a recent
report from the Ministry of Finance showed that by the end of 2011
Several experts
said such this level is high compared to those recommended for developing
countries, usually between 30%-40% of GDP.
Concerning current
economic situation, deputy Pham Huy Hung from
Hung, also a staff
member of a bank, said that interest rates are not really the major barrier
for enterprises in accessing capital. Modest lending is a result of weak
demand in the economy, large inventories as well as business difficulties
such as weak financial portfolios.
“Well-performing
enterprises tend not to expand very much and borrow less. Meanwhile, those
that want to borrow generally lack feasible business models. Proper solutions
should be worked out to shore up demand, boost sales and increase confidence
among banks,” he emphasised.
Deputy Bui Thi An
from
She added that more
attention should be paid to identifying problems in the economy so as to work
out suitable solutions.
Rules
tightened to block FDI firms from direct purchases from farmers
The Vietnamese
government will issue a new circular to prevent FDI companies from buying
agricultural products directly from farmers.
Circular 8 issued
by the Ministry of Industry and Trade will take effect from June 7 stated
that FDI companies in Vietnam can only buy agricultural products from
licensed Vietnamese traders unless international treaties, to which Vietnam
is a party, stated otherwise.
According to the
minister of Agriculture and Rural Development, FDI companies have taken over
70% of the animal feed industry.
In the Central
Highlands, 12 FDI companies have exported 50-60% of total coffee production.
The Louis Dreyfus Commodities' export volume alone accounted for over 40% of
coffee export output in
Pham Quang Dieu,
chief economist of the Agricultural Market Analysis and Forecast Company said
many FDI companies only buy the product and did not invest in the
agricultural resources despite their investment permit's requirement.
Meanwhile he said
domestic companies, who have supported the farmers during the production
process, lost due to FDI companies paying the farmers higher prices.
Dang Kim Son, head
of
Philippe Bacac, CEO
of Metro Cash and Carry in
A number of experts
said the relations between domestic firms and farmers were still very vague
and there was a lack mutual benefit in their relationships. Farmers earned
too little so domestic firms should tighten their collaboration.
"We should
learn from
FDI companies have
been able to dominate the market because of their superior supplies of
capital and human resources. The authorities should find a reasonable way to
encourage farmers, local firms and FDI companies to all benefit.
As part of this
effort, the Ministry of Construction (MoC) has recently signed a cooperation
agreement with the International Finance Corporation (IFC) to promote energy
efficiency in buildings and reduce greenhouse gas emissions.
As a result, the
IFC will provide
The code took
effect in 2005 but has not been widely implemented due to a lack of specific
guidance and enforcement. Last year IFC signed a memorandum of understanding
with the Vietnamese government to support it in revising the code, which is
expected to be released later this year.“
This agreement is
expected to contribute to the implementation of the National Target Programme
on Climate Change Adaptation, the National Target Programme on Energy
Efficiency, and the National Green Growth Strategy,” said Phan Thi My Linh,
Deputy Minister of Construction.
Wendy Werner, IFC’s
investment climate advisory services manager for East Asia and the Pacific,
said "Tthe building sector was among the biggest energy users in Vietnam,
accounting for about 36% of national energy consumption. Energy efficiency
will help developers reduce operating costs and contribute toward a
low-carbon economic growth path.”
A World Bank report
shows that
“Promoting energy
efficiency in the building sector will help the country achieve its target of
reducing greenhouse gas emissions from 8-10% from 2011 levels by the year
2020,” Werner added.
Nguyen Cong Thinh,
from the MoC’s Department of Science, Technology and Environment, said that
Source: VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
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Thứ Hai, 27 tháng 5, 2013
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