|
BUSINESS IN BRIEF 9/5
Steel
imports top US$2 billion
An
imbalance in the steel industry's development strategy led to an increase in
the import of high-value steel, while the domestic supply mostly included
popular products, according to the Viet Nam Steel Association (VSA).
Steel
export earnings in the past four months were estimated at $500 million.
Second
commodity exchange opens
The
Ministry of Industry and Trade on Friday issued a licence to the INFO
Commodity Exchange owned by Ocean Group.
The
INFO exchange, the second of its kind in the country, will trade in steel,
rubber, coffee and agricultural goods. It will provide a direct channel
between manufacturers and the market to end speculation in the prices of
goods. It will regulate commodity standards, link the domestic and
international markets, and integrate the Vietnamese goods market globally.
It
will help Vietnamese businesses, in particular farmers, boost production and
their competitiveness in the global market.
Binh
Duong reports good progress in environment
The
environmental protection programme for the 2011-2015 period in the southern
By the
end of last year, 87 percent of solid wastes were collected and treated,
while the figure for solid hospital wastes was 97 percent; 97 percent of
urban people have access to hygienic water and for rural people, the rate is
96.2 percent.
Meanwhile,
more than 96 percent of industrial zones and industrial clusters in the province
have been equipped with standard waste-water treatment systems.
The
Chairman of the People’s Committee has requested that inspection be
intensified on serious polluters and strict punishment applied. He also
instructed that the relocation of polluting production establishments and
projects on building waste treatment facilities be accelerated, while
encouraging all sectors to invest in environmental protection.
Import
tax on used cars to increase
The
import tax on used cars of nine seats and more will be increased since June
20, according to the Prime Minister’s Decision 24/2013/QD-TTg.
Accordingly,
for cars under 1,000 cc, the tax rate will be 5,000 USD while cars from 1,000
cc to 1,500 cc will be subjected to the tax rate of 10,000 USD.
The
current tax rates are 4,200 USD and 9,600 USD, respectively, according to the
Ministry of Finance’s Circular 28/2013/TT-BTC which took effect since April
29, 2013.-
Power
assured during dry season
Power
supply will meet the anticipated surge in demand during the dry season this
year, said Dang Huy Cuong, Director of the Electricity Regulatory Authority
of Vietnam.
The
authority under the Ministry of Industry and Trade was prepared to tackle the
falling output at hydropower plants due to prolonged drought in the
According
to Electricity of Vietnam (EVN), hydropower makes up about 40 percent of the
country's electricity output. The water shortage at hydropower plants'
reservoirs is currently almost 5.3 trillion cubic metres – meaning reduced
output of 1.43 billion kWh.
This
is critical as the dry season (April-June) is usually a peak time for power
consumption.
The
EVN calculated that total electricity output across the country during this
period would be about 34.35 billion kWh, 11 percent higher than the same
period last year.
In
emergencies, the company plans to make use of more expensive power generating
sources such as oil-fuelled power plants and imported electricity.
The
EVN planned to mobilise over 1.1 billion kWh of power from FO or DO oils,
which would substantially raise production costs: each kWh generated from oil
costs 5,000-6,000 VND, while the current average power price is about 1,400
VND per kWh.
The
southern region with major economic hubs such as HCM City, Dong Nai and Binh
Duong provinces would face more serious shortages, as no new power plants
become operational there this year.
Director
Cuong noted that since the beginning of this year, electricity supply has met
demand for production and daily consumption.
A
representative from EVN Hanoi told Kinh te & Do Thi (Economy and Urban
Affairs) newspaper that the recent power cut in the capital was part of
scheduled maintenance, rather than due to power shortages as in previous
years.
The
company does not yet have any plan to cut power this year, according to the
representative.
Vietinbank
to support SMEs
The
Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank) will
allocate up to 5,000 billion VND (approximately 23.9 million USD) to help
small and medium-sized enterprises (SMEs) through a preferential lending
programme titled “Accompany SMEs’ development 2013”.
Under
the programme, which started on May 1, SMEs have the opportunity to borrow
short-term loans at preferential interest rates which are three-percent lower
than the normal annual rate, for a term of up to six months.
Additionally,
the bank will create favourable conditions for enterprises to access capital
more easily and quickly to meet their production and business demand; as well
as give attractive special offers for businesses using Internet Banking
services.
Both
new and current customers with effective operation, secured finance and
meeting the bank’s requirements will be eligible for participating in the
programme.
The
activity aims to help enterprises overcome difficulties during an unstable
period of global economy.
Vietnamese
firms to go to int’l ICT exhibitions
Vietnamese
businesses will enjoy an opportunity to showcase their products and gain
visibility into foreign markets at three international IT exhibitions to be
held in
The
CommunicAsia, EnterpriseIT and Broadcast Asia exhibitions will feature a wide
array of the latest technology innovations and business updates across the
ICT and broadcast industries on June 18-21.
Organised
by the
Last
year's event attracted nearly 2,000 exhibitors and more than 50,000
professional attendees from around the globe.
According
to the Vietnam 2012 ICT White Book issued by the Ministry of Information and
Communications, the country's ICT sector saw total turnover of 13.7 billion
USD in 2011. The figure was a year-on-year increase of 79 percent.
By the
end of 2011, mobile phone subscribers reached 127.3 million and internet
users 30.5 million.
In
2011, more than 16 million people used 3G mobile networks in
NTUC
Fair Price to open grand supermarkets in Vietnam
A
license to form a trade joint venture in
Under
the license, the trade joint venture has $ 6 million as its initial
investment capital, of which the Vietnamese partner contributes 64 percent.
The
joint venture aims to build two chains of supermarkets named Co.opXtra and
Co.opXtraPlus.
According
to President of Saigon Co.op, the joint venture is expected to open one or
two grand supermarkets in large Vietnamese cities and that the first
Co.opXtra Plus will be inaugurated in mid May in Thu Duc district,
Observers
believed that the two models of supermarkets will be a potential rival,
directly competing with famous foreign retailers operating in the domestic
market and that the Vietnamese market will see a fierce competition between
retailers.
According
to CEO of NTUC Fair Price Tan Kian Chew, the joint venture will provide
opportunities for local producers as its supermarkets will attract their
goods and they will also have opportunity to participate in the company’s
global distribution network.
Many
projects may switch to PPP format
The
Ministry of Transport is considering changing the investment format for
several projects from build-operate-transfer (BOT) to public-private
partnership (PPP).
Investors
in the project for building Co Chien Bridge linking Vinh Long with Ben Tre
have recently proposed turning the project financing form from BOT to PPP
because of the changes in capital structure, according to the PPP Project
Management Board under the transport ministry.
Due to
financial distress, Civil Engineering Construction Joint Stock Company No. 8
(Cienco 8) pulled out of the project and Tuan Loc Investment Construction
Corporation took over the job.
The
investors have suggested the main bridge should be developed under the PPP
format instead of BOT, with State capital accounting for around 40%. The
investors will inject some VND1.2 trillion, in which Cienco 1 will contribute
35%, Cienco 4 20%, 577 Joint Stock Company 20% and Tuan Loc 25%.
The Co
Chien Bridge project costs a total of more than VND3.79 trillion, with the
main bridge demanding over VND2.21 trillion.
In the
list of projects with investment priority in HCMC from now to 2020, a lot of
projects were suggested for development under the BOT format, including the
belt roads no. 2, 3 and 4, the elevated roads no. 1 and 3 and the Provincial
Road 15 expansion.
However,
after reconsidering the planning for toll stations, the municipal authorities
are calling for investment under the PPP form.
Under
the decision on adjustments to the plan for transport development in the
Mekong Delta issued by the Government in April, the financing format for many
projects will also be revised.
The
transport ministry is asked to consider changing the format for development
of the fairways for large vessels to enter the
Trung
Luong-My Thuan-Can Tho Expressway is also suggested for the PPP format.
Logistics,
petroleum firms post low profits
Listed
enterprises in the fields of logistics and petroleum saw their profits
falling in the first quarter of this year given adverse impacts of economic
difficulties.
Materials-Petroleum
Company (COM) in its unchecked financial statement posted an after-tax profit
of over VND5.6 billion, a 14.5% year-on-year increase.
Its
pre-tax profit also declined nearly 12% to over VND7.3 billion.
Explaining
these figures, the company blamed low earnings on petrol sales.
In the
first three months of this year, the company sharply cut spending such as
financial and sale costs and corporate management fees. It engages in oil and
gas business, gasoline pumping post installation, warehouse leasing and
design and construction.
Saigon
Fuel Company (SFC) also saw its after-tax profit plunging by 62% to nearly
VND1.4 billion although its revenue surged by 28%.
The
enterprise operates in many fields such as fuel business, financial
investment and real estate. However, gasoline sales contributed up to VND574
billion to its total revenue of nearly VND577 billion in the first quarter.
In the
logistics sector, Sea & Air Freight International Company (SFI) obtained
VND48.7 billion in revenue, up 27.7% against the previous year, but its
after-tax profit declined by VND1.3 billion to over VND2.4 billion.
According
to its financial statement, input costs and corporate management fees
increased but financial revenue tumbled from VND573 million to VND143
million. Difficulties of the economy and the export and import industry were
causes of the poor results.
South
Logistics Company (STG) gained VND6.4 billion in after-tax profit, a slight
rise compared to last year’s figure of VND6.1 billion. However, its profit
earned from business activities was VND7.7 billion, lower than last year’s
VND8 billion.
The
company during its annual general meeting this year approved a revenue target
of VND578 billion, 4.8% lower than in 2012, while its pre-tax profit is
expected to increase 6.5% to VND35 billion.
Meanwhile,
some logistics companies posted high profit rises due to revenues earned from
financial activities.
Transimex-Saigon
Corporation (TMS) gained VND103 billion in revenue and over VND35.9 billion
in after-tax profit, up 72% and 140% year-on-year respectively. The profits
were contributed by stronger import-export services and financial activities
in the previous quarter.
Masan
Group has set a profit growth target of 30-70% for 2013 given satisfactory
performance of its subsidiaries along with the projects to be operational
soon.
For
example, the Nui Phao polymetallic mining project is in its final stage, with
98% of land recovered and the factory ready for operation in this quarter.
The project is expected to generate huge revenues for
In
addition, the group has deeply penetrated the beverages and the consumer
goods industries.
Besides,
a new factory of Vinacafe in Long Thanh, Dong Nai is scheduled for operation
in the second quarter, raising the production capacity by 2.5 times.
Therefore,
the group targets profit growth of 30-70% in 2013 and aims for US$1 billion
in gross earnings in the next few years.
Such a
profit decline is ascribed to Techcombank, in which
In
2012, Masan Group mobilized around US$130 million from R.F. Chandler and
Early
this year, KKR Fund poured US$200 million into Masan Consumer, taking the
total mobilized capital in recent years to more than US$1.2 billion.
Vinalines
fails to sell debt-laden ships
Vietnam
National Shipping Lines (Vinalines) in the first quarter was able to sell
only three out of 23 ships put up for sale as the firm is still struggling
with debts related to those ships.
In a
report submitted to the Ministry of Transport, Vinalines said the three ships
sold out are Ha Dong of Vinaship, Transco Sun of Transco and New Phoenix of
Vinashinlines.
Among
companies under Vinalines, Vinashinlines is the enterprise with the most
ships put up for sale, at ten units, but the entity has been able to sell
only one.
The
biggest difficulty facing Vinashinlines is to tackle debts claimed by
material suppliers and repairing factories. The local giant is now seeking
ways to have the debts restructured after selling ships as well as to
unfreeze ships as collaterals at credit institutions.
There
are many ships whose debts are much bigger than their selling prices,
including the two foreign-flagged
According
to Vinalines, in the context of the current slackened sea transport demand,
shipping lines are afraid of purchasing more ships although the prices of old
vessels have fallen by as much as 30% in the first quarter against the end of
June, 2012. Besides, the oversupply has resulted in slow sales of Vinalines’
vessels.
At
present, tackling foreign-flagged ships belonging to Vietnamese entities is
facing many difficulties.
Speaking
with the Daily, Nguyen Nhat, director of the Vietnam Maritime Administration,
said his agency is seeking approval from the Government and the transport
ministry to dismantle vessels anchored in
Thai
investor nears agreement on USD27 billion oil refinery
Thai
PTT Public Company Limited (PTT) plan to borrow 60% of capital for the
USD27-billion oil refinery project.
A
delegation from the provincial government of
The
two sides agreed that of the USD27 billion total investment, 40% would come
from investor’s equity and the rest would be loans.
PTT
pledged to contribute to at least a third of the project’s equity while the
remainder would come from its domestic and foreign partners.
The
provincial government and PTT plan to seek the government’s approval in late
May or early June for the investor to implement the project.
If
approved, they would continue to complete a feasibility study on the project
as well as other related procedures for the implementation.
Even
though the project is still at the pre-feasibility study, it has met
resistance from rival firms.
While
Vietnam Oil and Gas Group (PetroVietnam) opposed the project for fear of
diluting their influence over the domestic oil and gas market, the Ministry
of Industry and Trade as well as provincial authorities and several experts
have supported the implementation.
The
investor proposed the project at Nhon Hoi Economic Zone in
When
approved, it would be the biggest oil refinery project in
Export
turnover on year-on-year increase
According
to the Ministry of Industry and Trade, export turnover in the first four
months of this year reached US$39.46 billion, an increase of nearly 17
percent as against the same period last year.
At a
press conference on May 6, the Ministry said that of the above figure,
exports from foreign direct investment companies, excluding crude oil, were
up 25 percent to hit $23 billion.
In
April, export turnover was estimated at $9.7 billion, a reduction of 12
percent over March and an increase of nine percent over the same period last
year.
The
slow growth in export turnover in April is due to a fall in export value of
agro-aqua-forestry products. Vietnamese rice price has been the lowest in the
world recently, with the current prices being lower than that of
Import
turnover in April was recorded at $10.7 billion, a reduction of 7.6 percent
over March but an increase of nearly 19 percent over the same period last
year.
The
import turnover touched $40.19 billion in the first four months this year.
Trade
deficit was about $1 billion in April and $730 million in the first four
months.
According
to the Ministry, the trade deficit is because domestic enterprises have
increased imports of materials, being seen as a sign of production recovery.
In
April the production index in industrial sector moved up by five percent over
the same period last year.
MBV
launches its bikes to Vietnamese users
With
the increasing demand of urban sporty transportation,
These
bikes are developed in co-operation with premium bicycle manufacturer ADP
Rotwild at prices ranging from VND14 million to VND161 million.
The
Mercedes-Benz Fitness Bike is enjoying growing popularity. Its big wheels
offer a host of benefits for novices and experienced cyclists alike they roll
over obstacles with greater ease, and retain their momentum more effectively.
Another
star of the Mercedes-Benz Bike Selection is the
The
Kids' Bike provides a particularly snazzy means of introducing youngsters to
the joys of bike riding.
Industrial
production in recovery
Statistics
showed the industrial production index in April increased by 5.8 per cent
over the same month last year and the index of the four-month period rose 5
per cent over the same period last year.
The
figures reflected signs of recovery in industrial production and that
enterprises were more confident about the economy this year, the ministry
said.
However,
in the first three months, consumption was estimated to have increased only 4
per cent over the same period last year, proving that the purchasing power in
the domestic market had not improved much.
The
country was reported to have run a trade deficit of $1 billion in April and
$722 million in the first four months of this year.
According
to the ministry, the trade deficit last month was attributed to the low
growth of exports, especially the decline in the export value of
agricultural, forestry and seafood products.
The
ministry's report revealed that export turnover in April decreased 12.1 per
cent over March, reaching $9.7 billion, while imports also dropped by 7.3 per
cent to $10.7 billion.
Nguyen
Tien Vy, director of the Planning Department, said that in April, many
enterprises enhanced imports of raw materials for their production, resulting
in a trade deficit, which could be a sign of the domestic production
recovery.
For
the four-month period, export turnover was estimated to total $39.46 billion,
representing a rise of 16.9 per cent over the same period last year, and the
import turnover was nearly $40.19 billion, 18 per cent higher.
The
foreign direct investment (FDI) sector accounted for around 65 per cent of
the country's total export turnover and 71.5 per cent of the import turnover.
Regarding
power supply, Dang Huy Cuong, director of the Electricity Regulatory
Department, said that there would be enough power for production and daily
life this month, citing Electricity of Viet Nam's plan to generate 11.8
billion kWh.
The
Market Watch Department said the ministry would enhance market management to
prevent the flow of smuggled or low-quality products into the country to
product consumers.
Inspection
focus would be placed on price management, food hygiene and safety as well as
the quality of products such as milk, helmets and electric bicycles.
In the
first four month of this year, the market watch handled more than 6,545
violations which were mainly related to smuggling, selling of fake and
low-quality products and price violations, and collected total fines of more
than VND18 billion ($857.200).
Regarding
the refinery project in Nhon Hoi Economic Zone, worth $27 billion, Deputy
Minister Ho Thi Kim Thoa, at yesterday's press conference, said the
ministry's viewpoint was to support the project.
She
said more investment in oil refining was needed because
The
ministry also said that investment projects would be put under close
supervision, especially key projects making slow progress, and those which
were to be finished this year would be hurried up.
Budget
revenue reaches $3.6 billion
Government
revenue hit VND76 trillion (US$3.62 billion) in April, raising the total
revenue in the first four months of this year to VND244.1 trillion ($11.62
billion), the Ministry of Finance said on its website.
This
figure represented an increase of 2 per cent year-on-year, equivalent to 29.9
per cent of the estimate for 2013.
In the
January-April period, revenue from domestic economic activities was estimated
at VND164.29 trillion ($7.89 billion), up 2.9 per cent over the same period
last year, while income from oil exports reached VND40.27 trillion ($1.93
billion), up 4.6 per cent.
After
VND18 trillion ($864 million) in value-added tax was refunded, revenue from
international trade was estimated at VND38.29 trillion ($1.84 billion), or
4.3 per cent year-on-year decrease.
In the
four months ending in April, Government spending rose 12.3 per cent to reach
VND303.4 trillion ($14.56 billion), resulting in a budget deficit of VND59.3
trillion ($2.85 billion).
Vietnamese
CEO wins IT prize
Chairman
and CEO of software giant FPT Corporation Truong Gia Binh has become the
first Vietnamese businessman to be awarded the Nikkei Asia Prize 2013 in
recognition of his contributions to the development of information technology
(IT) in
Binh,
56, received the award in the category of regional growth. He has not only
contributed to the development of his own company but also to the development
of the IT sector in Viet Nam, Nikkei Inc said on its website. He set up a
software industry organisation and a university to foster IT experts, it
said.
Nikkei
Asia Prizes have also been awarded to Indian professor Tejraj Aminabhavi and
Cambodian architect Vann Molyvann. Awarded annually, the prize recognises the
achievements of people and organisations that have improved the lives of
people throughout
Banks
enjoy growth but stay below target
The
banking industry witnessed a positive increase in credit growth over the past
four months, with commercial banks reporting higher profits, according to the
State Bank of Viet Nam (SBV).
The
central bank said credit growth rose 1.4 per cent in the period compared to
late 2012, and 0.2 per cent more than in the first four months of last year.
Despite
the improvement, growth was still lower than targeted due to low borrowing
demands from enterprises and the production sector.
SBV
had previously set the growth target to ensure credit quality and liquidity
among credit institutions.
Last
week, BIDV and Vietcombank officially released their Q1 results for this
year.
BIDV
posted an after-tax profit of VND1.087 trillion (US$51.7 million) and
Vietcombank reached an after-tax profit of VND1.086 trillion ($51 million).
SBV
Governor Nguyen Van Binh said that capital mobilisation starting from January
this year had been bounced back compared to the same period in 2011 and 2012.
Up to April 23 this year, capital mobilisation rose 5.34 per cent against
late 2012.
Capital
mobilisation in Vietnamese dong was higher than foreign currencies, said
Binh,
noting that depositor confidence in credit institutions had improved
considerably.
In the
last four months, available credit had remained stable and exceeded
compulsory reserves required by the SBV.
The
inter-bank interest rate remained low and saw a light decline against earlier
this year. Thanks to stable liquidity, credit institutions had taken the
initiative of supplying capital for businesses, said Binh.
Vinacomin moves
to decrease coal export tax
The
Viet Nam National Coal and Mineral Industries Group (Vinacomin) is seeking
approval to lower the export tax on coal, claiming the mining industry faces
difficulties due to steep decreases in demand both at home and abroad.
The
move comes just six months since the Ministry of Finance agreed to cut the
tax from 20 to 10 per cent, helping Vinacomin export 6.5 million tonnes of
coal and reduce its inventory at the end of last year.
Nguyen
Van Bien, Vinacomin's deputy general director, said the current export tax of
10 per cent was still high in comparison with other countries. It proposed
the ministry make the export tax on coal similar to the average world prices.
Accordingly,
if the average price was less than US$75 per tonne, the export tax would be
10 per cent. If the price was at $75-85 per tonne, the tax would be 15 per
cent and 20 per cent for a price of over $85 per tonne.
Bien
said the tax mechanism would ensure transparent calculations while supporting
the industry in coal production and exports.
He
added that the coal sold to the Electricity of Viet Nam (EVN) in the first
quarter of the year was at just 71 to 73 per cent of the 2011 levels, causing
Vinacomin a loss of VND1.5 trillion ($71.4 million).
Vinacomin
had implemented cost-cutting solutions to save input costs for production and
investments - this was the reason why the group was allowed to increase the
price of coal sold to the EVN last month by 21-22 per cent. However,
Vinacomin said the increase was swallowed up by this year's coal production
costs.
In the
first three months of the year, the group mined 11.7 million tonnes,
accounting for 25 per cent of its yearly target. It sold 3.94 million tonnes
for domestic use, an increase of 23 per cent over the same period last year.
The
group said it would give priority to domestic users of around 28 million
tonnes this year. It forecast total consumption and exports would be lower
than last year.
Coal
consumption last month was 700,000 tonnes, just 60 per cent of the March
figure.
Increasing
the price of coal sold to the EVN would add VND2 trillion ($95.2 billion) to
Vinacomin, thus making a hike in electricity tariffs likely.
The
EVN said the cost of coal accounted for 70 per cent of thermo electricity
prices and that thermo power made up one quarter to one-third of the
country's total power supply.
It
added that if coal prices were increased, electricity tariffs would be
higher.
It
expected the price would be increased by 11 to 13 per cent this year as the
central region received low amounts of rainfall, prompting the mobilisation
of power from thermo electricity plants to the national grid.
Fusion
Maia Resort in Da Nang voted best spa in Asia
The
Fusion Maia Resort, located in central coastal
The
World Luxury Spa Awards annually recognise spas around the globe that set
standards in quality, innovation and service.
Located
on Ngu Hanh Son District's Bac My An Beach, Fusion Maia Resort was voted one
of
The
Maia Spa is the highlight of the resort and the largest spa in
The
awards also voted Le Spa at La Residence Hotel in
Investors
shun city ferry plan
A plan
to develop a ferry system to relieve traffic congestion on
The
city said Thuong Nhat Company had submitted a feasibility study and plan,
which includes details on several routes.
But
all remains on paper, Tran The Ky, head of the city's Department of
Transport, was quoted as saying by the Sai Gon Giai Phong (Liberated Sai Gon)
newspaper.
Many
local residents and city authorities have supported the idea and asked
investors for their input, but obstacles, such as low bridge clearances and
the shallow levels of canals, have deterred other potential investors.
The
city has even asked State-owned enterprises to invest in the project, but
they have shown no interest.
Nguyen
Kim Toan, director of Thuong Nhat Company, said such a system could increase
tourism and reduce traffic congestion on the roads.
However,
many of the city's canals and rivers are too shallow to carry passenger boats
and the clearance of many bridges is too low.
The
city has more than 230 bridges over rivers and canals, many of which do not
meet the standard of 2.5m of clearance required under the city People's
Committee's water-traffic zoning plan through 2020.
According
to the city's Transport Department, the Nhieu Loc –
A
representative from Thuong Nhat Company who declined to be named said one
major problem was the need for land clearance to build 16 ports for the
water-bus system.
Ky,
the transport department head, said that some bridges would have to be
rebuilt, which would increase construction costs.
These
kind of costs were scaring away investors, who were worried about not making
a profit.
In its
plan, the Thuong Nhat Company said it would use boats of different sizes to
adapt to the condition of canals and the navigation of some bridges.
The
company's plans called for a 25km waterway route stretching from District
12's An Loc to Nha Be District's Phu Xuan, and a second 12km route from
Other
routes would extend to western and southern areas, including Ca Mau, Kien
Giang and Ha Tien, Dong Nai and Binh Duong.
With a
dense system of rivers and canals, nearly 8,000km in length and a water
surface covering 16 per cent of the total space,
Under
Thuong Nhat's plan, 16 boats would be used, eight of which would be able to carry
100 passengers per trip, and the remaining, 40 passengers.
Agriculture
credit growth tipped
The
State Bank of Viet Nam (SBV) has predicted that credit growth in the
agriculture sector will rise 15 per cent, while in comparison the country's
total credit growth is predicted at 12 per cent.
The
figure was announced by the central bank yesterday during a seminar on
banking credit for economic development, held by the
According
to the SBV, in the first three months of 2013 the total outstanding debt
facing the entire economy rose 0.67 per cent compared to the last three
months of 2012.
Of
this figure, outstanding debt for agriculture and rural areas reached nearly
VND579 trillion (US$27 billion) or 3.1 per cent up compared to late 2012. It accounted
for more than 18 per cent of the entire economy's outstanding debt - not
including debt owed to the Bank for Social Policy.
Currently,
the outstanding debt for the seafood industry stands at 34.5 trillion ($1.6
billion), a 1 per cent decline from the last quarter of 2012, partly due to
an 8 per cent decline in seafood exports. Meanwhile, outstanding debt for the
purchasing of machinery and equipment in the farm sector reached VND1.32
trillion ($628 million), or a 16.4 per cent rise compared to late 2012.
As of
April 25, the total outstanding debt of the entire economy rose 1.73 per cent
According
to deputy director of the Monetary Policy Department at the State Bank, Pham
Xuan Hoe, every year the entire banking system had to pay interest on savings
at more than VND300 trillion ($14 billion) per year.
Of
that figure, VND280 trillion ($13.3 billion) was paid to businesses and
individual depositors, while the remainder went to the State Capital
Investment Corporation, State Treasury and insurance organisations.
Some
economists have calculated that the whole economy now has to pay VND400
trillion ($19 billion) per year in interest for commercial banks, Hoe added.
Speaking
at the seminar, Nguyen Duc Huong, deputy chairman of LienViet PostBank said
that by lowering lending interest rates to rescue ailing businesses, the
central bank would face challenges. He noted that if loss-making businesses
were rescued by the central bank with a lending rate even as low as zero per
cent, they would still not survive, and at the same time depositors would
rush to withdraw their money at the banks due to the lower interest. As a
result, commercial banks would face the risk of illiquidity, leading to a
liquidity race among commercial banks.
Huong
conceded that the central bank could lower the lending interest rate at a
reasonable ratio to protect depositors instead of trying to rescue
loss-making businesses.
Nguyen
Duc Trung, an official of the
Ministry
agrees to bolster rice research
The
Ministry of Agriculture and Rural Development yesterday signed a Memorandum
of Understanding (MoU) with the International Rice Research Institute,
pledging to bolster the use of science and technology in rice research for
Speaking
at the signing ceremony, Minister Cao Duc Phat said the agreement signaled a
new stage in the co-operation between both sides, and would lead to an
improvement in
IRRI
General Director Robert Zeigler said the institute had been proud of its
partnership and achievements in
Since
1975, through IRRI and
Power
prices held despite coal costs
Despite
a rise in the price of coal sold to power plants late last month, the
Ministry of Industry and Trade has not been asked to permit an increase in
power prices by Electricity of Viet Nam (EVN).
Director
of the ministry's Electricity Regulatory Department Dang Huy Cuong confirmed
this at a ministry meeting on Monday.
However,
he admitted that EVN was doing calculations and would report to the department
in the near future.
Taxi
operator to open on island
Phuc
Xuyen Co Ltd on Sunday carried vehicles to Co To Island in northeastern Quang
Ninh in preparation for the opening of the first taxi operator on the island.
The
company is equipped with three Innova seven-seater cars and 10 electric cars,
worth more than VND4 billion, said company director Doan The Xuyen.
Quang
Binh hosts trade fair
A 2013
trade and tourism fair, organised by Quang Binh Provincial Department of
Industry and Trade and SHB Event Joint Stock Company, opened in Dong Hoi City
on Monday.
It
features more than 250 Vietnamese enterprises across the country who have a
total of 350 stalls carrying conical hats, garments and textiles, processed
food, timber furniture, handicrafts and household goods.
The
provincial Department's Deputy Director Dinh Minh Chat said the eight-day
fair was part of activities to celebrate UNESCO's recognition of the central
province's
Source:
VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
|
Thứ Tư, 8 tháng 5, 2013
Đăng ký:
Đăng Nhận xét (Atom)
Không có nhận xét nào:
Đăng nhận xét