|
BUSINESS IN BRIEF 15/6
Official
calls for critical amendment to business law
If the Law on
Enterprises is not properly amended, it would put nearly 3,000 enterprises on
the brink of filing for bankruptcy, according to an official.
Minister of Planning
and Investment Bui Quang Vinh said at a recent National Assembly’s session
that Article 170 in the law desperately needs amending in order to save
thousands of enterprises, ensure foreign direct investment (FDI) and
employment for hundreds of thousands of workers.
Article 170 under
the current Law on Enterprises stipulates that FDI firms that were licensed
before July 1, 2006 must re-register and operate under the 2005 Law on
Enterprises. The re-registration term is five years since the law took
effect.
This means that as
of July 1, 2011, FDI firms that have yet to re-register are not allowed to
supplement their business spheres nor extend their projects. They are just
allowed to operate under the original fields mentioned in their business
license.
The ministry’s
statistics showed that as of May 31, 2013, as much as 2,916 out of total
6,000 FDI enterprises have yet to re-register.
The proposed
amendment to the article would remove the five-year deadline for the
re-registration.
The draft
regulation would allow FDI enterprises to decide if they need to register but
continue to operate in accordance with their business licenses.
FDI enterprises
that were set up before July 1, 2006 with expired business licenses could
file for bankruptcy to be allowed to re-register to continue their
operations, the draft regulation said.
Bui Quang Vinh
admitted the ministry’s fault in delaying the amendment of the article and
promised that they would amend the regulation as soon as possible.
Vinh said that the
number of FDI firms with expired business licenses has reached 41. The figure
would climb to 142 in 2014 and 269 through 2015.
He added that they
would issue regulations that stipulate the new deadline for such enterprises
to re-register and policies for enterprises that don’t register. Any that
fails to comply with the regulations would have to file for bankruptcy.
Nguyen Thi Kim Nga,
NA Vice Chairwoman said many NA deputies have proposed that the government
clarify the reasons why those enterprises have yet to re-register, assess the
socioeconomic impact of the situation as well as investment environment for
FDI firms in the country over the past time.
Meanwhile, some
others proposed that relevant agencies leave expired enterprises to file for
bankruptcy and then they would set up new enterprises. However, the
government said such procedures would be more difficult than amending one
article in the law as it would result in considerable losses, Nga noted.
“We’ll direct the
Ministry of Planning and Investment and the NA’s Economics Committee to
collect opinions on the issues so as to accomplish the draft amended law and
submit it to the NA for approval during this term,” she added.
Banks
reluctant over bad-debt settlement plan
Although the
newly-established Vietnam Asset Management Company is hoped to resolve the
problem of rising bad debts, banks have shown little interest in the company.
VAMC would buy bad
debts from banks via self-issued bonds. The bonds would have no interest rate
and credit institutions could use them to apply for refinance loans.
Banks, on the other
hand, are not enthusiastic that the bonds are set with only a five-year time
limit to resolve bad debts. In addition, banks would be required to
contribute 20% of the funds from VAMC bonds towards risk prevention each
year. If, after the five-year limit, bad debts have not been successfully
resolved, banks would be required to use the bonds to retake the debts.
Many banks
commented that the spending on risk prevention fund was the main issue that
made them reluctant about the VAMC project.
Tay Han Chong, CEO
of MeKongBank, said that the measures being taken by VAMC only helps to delay
dealing with the bad debt issue.
Another bank leader
in HCM City said VAMC will be a powerful tool for institutions who are in need
of a last resort, but that the mandatory spending on risk prevention makes
banks wary of accepting. "Banks will have to spend their profits on
contributions to the fund, so there will not be many perks for those
institutions who accept the programme," he said.
Nguyen Gia Dinh,
Vice Chairman of Sacombank, added, "During times when so many businesses
are experiencing financial trouble banks must be somewhat patient and keep
rates low. Our only option is to nurse these bad debts for a while and extend
payment deadlines if necessary. Once the business environment recovers we
will be able to recoup the capital."
Cao Sy Kiem, member
of the Monetary Policy Consultant Committee, said, "Of course, spending
on the risk prevention fund will affect the banks' profits, however, banks
banks are not earning much profit in the current situation anyway. Banks and
enterprises will have to work together in order to forge a final solution to
the bad debt problem."
Hoa Binh
province works to lure Indian businesses
Currently hosting
two India-invested projects capitalising at 20 million USD, northern Hoa Binh
province is working to lure more investors from the South Asian country to a
wide range of its industries, in particular the processing, the field that
has so far drawn much interest from Indian businesses.
The province has
recently coordinated with the Indian Embassy in
Hoa Binh now boasts
eight industrial zones with a total land area of about 1,620 hectares where
infrastructural facilities are available for plants’ operation.
Apart from the
processing industry, the locality has strongly encouraged investments in
support industry and tourism.
It has offered a
corporate tax rate of 10-20 percent for investors during the time their
projects are underway together with other land use and tax incentives.
At the event, the
Indian representatives briefed Hoa Binh authorities and businesspeople on
their country’s customs formalities and import-export policies.
The Mekong Delta
will try to increase its economic growth by 11-12 percent per annum from now
until 2020 in order to enhance living standards for people in the region.
The Steering
Committee for the Southwestern region announced that the agricultural sector
will make up to 40 percent, industry - nearly 30 percent, and services - over
30 percent of the region’s economy.
In the field of
agriculture, the region will diversify products, strengthen intensive
farming, establish areas specialising in particular plant varieties like
rice, fruit and short-time industrial trees. Natural materials for industries
and animal feed will also be heavily developed.
Aquaculture, a
strength of the region, will have due attention paid to its expansion. The
region will invest in developing the irrigation system and protecting
ecosystems, especially the coastal salt-marshes in Dong Thap Muoi area, Long
Xuyen Quadrangle, west of
Small and
medium-sized industries will be efficiently developed. The industrial sector
will soon exploit the gas potential of the Southwest sea area, aimed at
developing gas-electricity- nitrogen fertiliser industry. Additionally,
industrial clusters, sea transport, agriculture and aquaculture processing,
engineering industry and construction material production will also be
developed. Can Tho city is considered the centre for these efforts.
In the services
sector, Mekong Delta provinces will pour appropriate investment into
developing trade and tourism, especially eco-tourism. Among others, Phu Quoc
island in Kien Giang province will be transformed into a tourist hub.
From now to 2015,
the region will invest in training, upgrading machinery and equipment, and
applying scientific and technological processes to production.
Infrastructure will
be further improved with the focus on rural road networks, highways
connecting the region with
A number of
universities will be upgraded while some new colleges are to be established.
The region will also modernise its provincial and district hospitals and
hasten the construction of medical facilities specialising in treating
cancer, gynecology-obstetrics, and heart and lung diseases.
The “Baby-Benz”
makes its debut in
The manufacturer of
luxury cars Mercedes-Benz Vietnam on Thursday launched the compact car
A-Class, imported from the Germany, which is the first luxury compact
introduced by Mercedes-Benz to tap the potential segment in the country.
The launch of the
new car line is aimed at attracting a wider range of customers in the
country, targeting successful young people, given the rising trend in compact
vehicle consumption in big cities.
A-Class is not
simply a car, but a companion, a statement of style and a milestone of
success, according to the company.
A-Class is a
milestone in design development of Mercedes-Benz. Coefficient drag (Cd) on
the new A-Class decreases from 0.31 to 0.27, the lowest one in the segment. A
lower coefficient drag helps the car save energy during operation, especially
when accelerating and running at high speed. With its size, A-Class is listed
as a compact. However, the driver can actually experience comforts in the
small car. The high bonnet helps the A-pillar curve the door with a longer
perimeter, thereby increasing the volume of interior space without affecting
the exterior design.
In addition, both
the A200 and A250 Sport AMG are using turbocharged 4-cylinder engine named
M270 with direct fuel injection, which brings a power of 156 HP and 211 HP
respectively – so impressive with the displacement of only 1.6L and 2.0L. The
new A-Class is the most economical car in the segment: the A200 consumes just
5.4 liters for 100 kilometers, an extremely low cost of VND130,000. With a
full 56-liter fuel tank, the driving range of A200 is over 1,000 km.
Even the powerful version A250 Sport AMG, which can accelerate from 0-100km/h
in just 6.6 seconds, has the consumption of 6.4 liters for 100km.
In the family of
Mercedes-Benz, the young A-Class has inherited numerous smart features and
safety technologies from its brothers such as C-Class or E-Class.
Active Parking
Assist helps the driver find suitable parking space, as it automatically
performs steering, while the driver simply adjusts the acceleration and brake
pedal as directed.
Meanwhile, the
traditional parking brake will be replaced by an Electric Parking Brake,
eliminating the tedious task by a button. A-Class also inherits the Cruise
Control system, which allows the driver to adjust the maximum speed desired
in the speed limit areas. In emergency situations, STEER CONTROL will help
the driver steer accurately by highly controlling steering power.
Particularly, the A250 Sport AMG version will be equipped with smart
reversing camera, showing the reversing line to help drivers handle easily in
narrow space.
When inside, users
can also admire other top-class amenities, such as the sporty seats covered
with ARTICO leather. The seats will help driver and passengers be stable in
cornering at high speed, thus bringing the excitement on each journey with
the new A-Class.
The new car comes
with two versions, A200 and A250 Sport AMG, which are priced at VND1,264
billion and VND1,623 billion (VAT included) respectively.
Vingroup
gains big from
Vingroup Joint
Stock Company has completed the sale of
Under a deal with
Vietnam Infrastructure and Property Development Group Corporation (VIPD),
Vingroup has sold to VIPD its entire stake in the subsidiary Future
Investment and Trading Services One Member LLC, which owns the land use right
and all the property at Vincom Center A.
The pre-tax profit
from this deal is VND575.4 billion, said Le Khac Hiep, vice chairman of
Vingroup.
Vincom Center A is
a luxurious property located in a prime site in HCMC’s District 1, surrounded
by Le Thanh Ton, Dong Khoi, Le Loi and Nguyen Hue streets. It comprises nine
floors and six basements, with four floors for a high-end retail mall and a
five-star hotel from the fifth floor upwards.
VIPD is an
investment holding company involved in a diversified range of businesses
including real estate development and investment. It currently owns 1.1
million square meters of land in prime locations across
Hiep said his firm
expected to earn around VND3.66 trillion in pre-tax profit from apartment and
infrastructure transfers this year. The profit is forecast to be higher next
year thanks to the progress in apartment handover, he told the Daily.
Vingroup recently
announced it had sold its 20% stake in Vincom Retail to Warburg Pincus for
US$200 million.
Talking about this
deal, Hiep said: “We, as a real estate company, want to combine our
capabilities with experience of foreign partners in investment, promoting
global retail sale and supporting corporate consumers. Of course, we also
want the strong financial capability of Warburg Pincus to create growth
momentum for Vingroup in the future.
“The partner will
help us keep our revenue stable and develop the portfolio of properties for
rent. This deal is a step forward in business internationalization and
foreign investment attraction.”
JBA’s eased
monetary concern
Japanese companies
in
The Japan Business
Association in Vietnam (JBAV) chairman Motonobu Sato said at the Vietnam
Business Forum last week that the government recently adopted a loosening
monetary policy to control the economic situation.
“We understand that
with the loosened monetary policy, the government wants to support Vietnamese
companies in seeking loans from banks,” Sato said.
“But, our biggest
concerns are that high inflation and shortage of dollars may come back
again,” he said.
The State Bank in
March lowered the deposit interest rate from 9 to 8 per cent and in May it
continued to cut the rate to 7 per cent.
As a result, many
banks like Techcombank, Southern Asia Bank, PG Bank, Dai A Bank, Tienphong
Bank and Eximbank have reduced annual lending rates to 8.25, 9.43, 10, 10,
9.7 and 9.2 per cent, respectively. Vietcombank’s deposit interest rate also
dropped to 6 per cent last month.
The Ministry of
Planning and Investment (MPI) said in a bid to revitalise local production,
the government would find ways to boost credit growth to a targeted 12 per
cent rate for 2013.
During this year’s
first five months, credit expansion rate touched 2.29 per cent only.
Sato said
In February 2011,
the government issued Resolution 11 to tighten the monetary policy and
strangle the black market to stabilise the macroeconomy.
According to the
JBAV, despite decreases in lending rates now, local enterprises were unable
to absorb new capital.
Meanwhile, it said
the major reason for
MPI deputy minister
Dao Quang Thu however said in response to foreign investors’ concern at the
VBF that with
“The Vietnamese
government commits to create all best conditions for investors to change the
dong into foreign currencies,” he said.
More clean water
for city’s residents VND1.2 tril. for Tan Hiep 2 water plant
Saigon Water Supply
Corporation (Sawaco) on Thursday started a trial operation of Kenh Dong water
plant it purchased with a designed daily capacity of 150,000 cubic meters of
water to provide clean water for six western districts, said Bach Vu Hai,
deputy general director of Sawaco.
Sawaco commissioned
Kenh Dong water plant during a 72-hour visit to check the stability of
equipment and the quality of water before connecting to the water supply
system in districts 12, Tan Binh, Tan Phu, Hoc Mon, Binh Chanh and Binh Tan.
With a designed
daily capacity of 200,000 cubic meters of water, the plant is developed by
Kenh Dong Water Supply Joint Stock Company at a cost of VND1.25 trillion. The
remaining capacity of 50,000 cubic meters of water will be for Cu Chi
District and industrial parks in Duc Hoa and Duc Hue provinces in Long An
Province, Hai told the Daily.
Under the city’s
water supply zoning plan, Kenh Dong plant will have its capacity raised by an
additional 150,000 cubic meters of water a day in the second phase in 2015 to
replenish clean water for Cu Chi.
Total clean water
supply of Sawaco is around 1.5 million cubic meters a day. The firm is
looking to increase its capacity to 2.4 million cubic meters a day by 2015
and 3.4 million cubic meters by 2025 in line with planning.
*HCMC’s leaders on
Thursday morning also had a meeting with Sawaco, the HCMC Infrastructure
Investment Joint Stock Company (CII) and Refrigeration Electrical Engineering
Corp. (REE) on the deployment of Tan Hiep 2 water plant designed with a daily
capacity of 300,000 cubic meters of water at a cost of VND1.2 trillion.
At the meeting, Hai
of Sawaco said Tan Hiep 2 plant will be constructed by a joint venture of
Sawaco, CII and REE with a capital contribution ratio of 36%, 32% and 32%
respectively. An REE representative told the meeting that his firm wants to
raise its capital contribution to 51% and that it will be responsible for the
construction progress of the scheme in front of the municipal leaders.
Banks lend
VND121 billion to enterprises in Nha Be
Five commercial
banks including Sacombank, VietinBank, OCB, DongABank and Agribank on
Thursday made VND121 billion loans available for 20 enterprises in HCMC’s Nha
Be District to help them maintain and develop their business operations.
This is part of the
bank-business connectivity program organized by the central bank’s HCMC branch
over the past year.
Speaking at the
credit contract signing ceremony, Nguyen Hoang Minh, deputy director of the
central bank’s HCMC branch, said interest rates have declined sharply and
rapidly. Therefore, interest rates and capital costs are no longer a big
problem for enterprises.
Lending rates
applied for five prioritized sectors have slid to below 10% per annum. Some
home and consumer loan programs even have interest rates as affordable as in
the pre-crisis period.
The program has
been organized in many districts in HCMC such as Can Gio, Tan Binh, Tan Phu
and Go Vap.
Egame seeks
funding for online game upgrade
Online Education
Game Joint Stock Company (Egame) is looking for funds to upgrade its online
education game Chinh phuc Vu mon (Conquer the Dragon Gate), which was
launched more than a year ago.
Nguyen Hong Thuy,
general director of Egame, said the company started developing the game in
2008. In April 2012, Chinh phuc Vu mon was launched into the market and so
far, Egame has spent US$2 million on the game.
“From now to 2014,
Egame will further invest in this game. The investment costs around US$10
million and the company is seeking finances,” said Thuy.
Chinh phuc Vu mon
targets students as there are currently 20 million college students and 17 million
primary and high school students in
“This market is
full of potentials, but it requires long-term strategies because it takes 5-7
years for an online game to start generating revenue,” said Thuy.
He said Egame had
surveyed 5,000 parents nationwide before making the game. The respondents
said they want games that are both educational and attractive.
Chinh phuc Vu mon
is based on the tale of a carp transforming into a dragon after successfully
climbing a cataract called the Dragon Gate. Players join the search for
talent to deal with the major concerns of the community.
To win the game,
players need not only skills and tactics, but also extensive knowledge of
natural and social sciences.
The game also
features a 3D classroom with hundreds of lessons for junior and senior high
school students.
If achieving big
success with Chinh phuc Vu mon, Egame will develop more online games for
foreign markets.
Social
Insurance
The Vietnam Social
Insurance and the Vietnam Post Corporation (VNPost) on Thursday signed an
agreement to manage beneficiaries and pay social insurance monthly via the
national post system.
The contract
clarifies how VNPost will provide services to the social insurance entity via
the country’s post network including paying monthly pensions and social
insurance allowances by cash, managing beneficiaries in line with the list
provided by social insurance entities and those receiving money via
individual bank accounts. Besides, VNPost helps the partner master the
changes of the number of pension and social allowance beneficiaries for
certain cases as stipulated by the contract.
The service earlier
had been piloted in four provinces from August 18, 2011 as the first phase
and it then was launched on a trial basis in eight more provinces and cities
in April, 2012, with the total volume amounting to nearly VND600 billion for
about 220,000 people via monthly payments.
*In a related
development, the post savings system mobilizes an average of more than VND13
billion a day, says a source from the system.
Speaking at a
meeting held by the Ministry of Information and Communications on Thursday,
Do Ngoc Binh, chairman of VNPost, said despite the interest rates’ volatility
in the market last month, his firm had still done good business with the post
savings segment.
Deposits of the
post system reached about VND400 billion in May, with over VND13 billion
mobilized a day on average, while the current deposit value of the whole
system totals VND12 trillion now, Binh said.
Total revenue of
VNPost was around VND1.49 trillion from January to April, with the express
delivery segment growing 20% year-on-year, while the post savings segment saw
a surge of up to 32% over the same period in 2012, Binh reported. In the
meantime, the information technology and telecom service segment only
recorded a rise of 40% year-on-year in the same period.
VNPost was formerly
under the Vietnam Post and Telecommunications Group (VNPT) but it has been
transferred to the information ministry this year.
The firm achieved
total revenue of VND2.3 trillion in 2008, VND2.89 trillion in 2009 and
VND3.34 trillion in 2012. It provides services from mail, newspaper
distribution, money transfer and express delivery to financial post, express
post and IT and telecom.
Two-way trade
turnover between
According to
preliminary statistics from the Spanish Customs,
Bilateral trade
value has grown considerably from 1 billion euro in 2008 to 2 billion euro
last year, except for the year of 2009 due to the impact of the global
economic downturn.
Rice
exports hit US$1.302 billion in five months
According to the
Vietnam Food Association (VFA), the 70,516-tonne shipment in the first week
of June was estimated at US$33.387 million.
Rice prices in the
Mekong Delta region currently hover around VND4,850-5,200/kg.
On the domestic
market, the average price of 5% broken rice is VND6,500-6,600/kg, and that of
25% broken rice VND6,100-6,200/kg.
Nokia
The Nokia mobile
phone manufacturing plant in
Herd said his
plant, which is located in the Vietnam-Singapore Industrial Park (VSIP) in
northern Bac Ninh province, will be officially inaugurated in September this
year.
The factory of the mobile
phone giant is designed for an annual output of 180,000 units, and most of
its products will be exported, he said.
“We plan to develop
Nokia
He also said that
the Vietnam-based plant is currently employing 300 workers and expects to
recruit thousands more in the future.
Thai group
invests in $2bln Quang Ninh hi-tech complex
The complex, to sit
on 16,00ha in Quang Yen village, Uong Bi district, will include a high-tech
park, a free trade area, and research units to develop high added value
products, as well as educational facilities and urban areas.
The first phase of
the project will be built on 500ha at a cost of US$1.5-2 billion.
Construction work will begin in December 2013, with the first factory
scheduled to be put into operation in late 2014.
The Amata Group has
been investing in
Vingroup previously
proposed building hotels and entertainment areas worth nearly US$45 million
on
Quang Ninh
provincial leaders say that choosing strategic investors is an important step
towards restructuring the province’s economy with a focus on developing
industry, services and tourism.
FDI
projects cancelled due to infeasibility
A number of FDI
projects worth billions of USD across
The Kien Giang
provincial government has just decided to cancel a luxury resort project
worth EUR2 billion (USD2.63 billion) on
The project was
proposed by Swiss Trustee Group in late 2007 with their Vietnamese partner
Vinaconex R&D JSC.
The project
received approval in principle by the provincial government but the investor
has yet to complete required procedures.
After several
warnings by local authorities for the investor to complete compensation and
resettlement plans by last February, along with detailed plans for the
project itself by last August, these deadlines were not met.
Eventually the
project was cancelled, stirring up public concern over other similar luxury
FDI projects.
Statistics by the
Ministry of Planning and Investment's Foreign Investment Agency showed that
numerous FDI projects, worth billions of USD, have been cancelled since 2007.
The most prominent
of these include the USD9.8-billion Ca Na steel complex in
A number of others
have been progressing at a very slow pace.
Several economists
have expressed worry over the general feasibility of the plans for many of
these luxury FDI projects, which they say exhibit significant disparities
between registered capital and actual fund disbursement. Numerous projects
that are already underway, such as
"Many
investors have failed to realise their pledges," said Dr. Nguyen Mai,
Chairman of the Vietnam Association of Foreign Invested Enterprises.
He added that any
projects that show themselves to be stagnant or infeasible should be
discontinued as soon as possible in order to make way for better ones.
Disbursed ODA capital reaches US$1 billion in May
The Ministry of
Planning and Investment has reported ODA disbursement reached US$1.5 billion
by the end of May, accounting for 31.3 percent of amount planned for this
year.
Earlier, ODA
disbursement was estimated at $450 million in the first four months of the
year and in May alone it exceeded $1 billion, more than two times higher
compared to that of four months earlier.
Last year, ODA
disbursement was estimated at more than $3.6 billion, the highest so far.
Meanwhile, ODA committed capital reached $7.3 billion in 2012, and nearly
$6.5 billion in 2013.
Data from the
Ministry showed that implemented FDI capital in the first five months of the
year was estimated at $4.58 billion, up 1.6 percent, while registered capital
was at $8.52 billion, up 8.9 percent year-on-year.
Ha
Of which, Finetek
Since the beginning
of this year, there have been five South Korean companies that have received
investment certificates to invest in industrial parks and complexes in Ha Nam
Province with a total investment capital of $47.5 million.
The People’s
Committee of Dong Nai Province, the Japan International Cooperation Agency,
and Airports Corporation of
For this purpose,
nearly 5,400 households with more than 17,000 people will have to be
resettled and 3,000 of the existing houses will be completely destroyed.
Total compensation for resettlement is expected to reach VND15 trillion
before the project can even take off.
The project will
cover an area of 5,000 hectares that will including runways, air terminals,
and related infrastructure for airport services.
Before the project
kicks off, site clearance will be necessary in Long Phuoc, Bau Can, Long An,
Binh Son, Suoi Trau, and Cam Duong Communes.
Ministry
resolves freeze in property market
According to a
report prepared by the Ministry of Construction, many measures have been now
put in place to resolve the present freeze in the property market.
Minister Trinh Dinh
Dung said the ministry has implemented several measures to balance supply
with demand and combat growing bad debts as well as create social housing for
students and low income groups.
Since 2012, the
Ministry has been studying the various causes that led to freeze in the
property market.
Municipal and
provincial authorities have been asked to reassess and convert condominium
projects to suit market demand. Thus the Ministry has stopped 138 projects
covering an area of 4,361 hectares, including 37 projects in
The Ministry is
concentrating more on building or converting existing buildings into social
housing. As per a survey, by 2015 around 1.74 million people will face
housing difficulties and 1.715 million workers from other parts of the
country working in industrial parks will wish to settle down in the City. Low
income groups too will need housing.
The Ministry thus
wants localities to build more social houses to meet the increasing demand.
Realty developers have been required to restructure their property development
plans to build more social housing projects for low-income groups and those
entitled to social housing policies.
Investors have been
ordered to convert commercial houses into social houses or converted large
apartments into smaller ones. So far 56 investors of 23 condominium projects
in
The Ministry said
it has reaped some initial positive results in resolving obstacles in the
property market and house prices have lowered, said Construction Minister
Trinh Dinh Dung.
Dung also added
that in future, the National Assembly will re-adjust business income tax and
value added tax with preferential treatment along with credit packages that
will allow members of the public to take out loans at only 6 percent a year
to purchase apartments under social housing projects and small commercial
projects. These measures will further help the frozen property market.
VSA objects
to power price discrimination against steel industry
The Vietnam Steel
Association (VSA) has strongly objected to a Ministry of Industry and Trade
plan to apply separate higher electricity tariffs for major power consumers
like steel and cement plants, saying this is an act of price discrimination.
The status quo
should be maintained as the steel industry is currently in trouble over poor
demand, Pham Chi Cuong, chairman of VSA, said, adding any power price hikes
this time around would sink the industry and other electricity-guzzling
sectors like cement into further difficulty.
“Personally I think
there shouldn’t be any adjustment of power prices for the steel and cement
industries. A price change, if any, should ensure fair treatment for all manufacturing
industries, meaning power prices shouldn’t be increased for the steel and
cement sectors only,” Cuong said.
In the steel
industry, only steel billet production consumes much power, with the power
price for the activity representing some 6% in the billet cost, while power
prices of other products only make up 2%, Cuong clarified.
Prices of power
sold to steel and cement production and other manufacturing industries would
surge as a result of a new power retail pricing scheme drafted by the Ministry
of Industry and Trade. As planned, power price hikes for manufacturing
sectors, including iron, steel and cement production, would be different
depending on voltage and production hours.
However, the draft
provides a new power pricing method for steel and cement production, instead
of applyimg the same level for all manufacturing industries as at present.
Under the draft, iron, steel and cement producers using power voltages of
110kV or higher during peak hour would pay 10% more for power compared to the
prevailing price. The highest price hike for voltages of less than 6kV during
peak hour would be 20% as per the draft.
The new rule on
retail power prices would take effect from July 1 in line with a number of
amended regulations of the revised Power Law which will also come into force
on the same day, a source from the Electricity Regulatory Authority of
Vietnam (ERAV) under the industry ministry said.
Mobile phones and
phone components now rank second among
Fatih Kemal
Ebiclioglu, chairman of the Istanbul Electrical-Electronics, Machinery &
ICT Exporters’ Association, said last Friday that
Last year,
Vietnamese exports to
Fiber tops the list
of items fetching the highest revenue from export to
In the first
quarter of 2013, cell phones and component exports to this market reached
US$70 million, most of it coming from the factory of Samsung in
There are still
great chance for cooperation between
He said Vietnamese
exports to
Bond-funded
projects increasing in scope
Many projects
funded by government bonds have raised their investment costs to increase
scope, although the National Assembly (NA) Standing Committee allows such
undertakings to adjust investment costs when there are changes in prices and
technologies.
At the NA session
in Hanoi last week the committee delivered a report on inspections into their
compliance with the Law on Practicing Thrift and Fighting Wastefulness in
using government bonds for investment in 2006-2010.
Initially, the
total cost of the projects to be financed by government bonds in the period
2013-2010 was some VND150.6 trillion, of which VND110 trillion would be
covered by government bonds. However, by 2010, the total cost of these
projects had been raised to more than VND570.9 trillion, with VND530 trillion
to be funded by government bonds.
The capital demand
for the period after 2010 is VND315 trillion.
The latest report
published by the Government on May 17 revealed the total cost of bond-funded
projects had been increased to approximately VND685 trillion.
Most of these
projects have revised their investment costs. Some have boosted their total
investment costs by many times, while some others have not only adjusted the
costs of labor, site clearance, materials and equipment, but also increased
their size.
As a result, the
total investment cost of government bond-funded projects has snowballed.
The projects
planned for development in more than two years can factor possible rising
costs in their total cost estimates. Still, cost adjustments in the three
years from 2010 to 2012 far exceeded inflation in this period, suggesting the
projects that spurred their costs indeed wanted to expand their scale.
“This leads to an
imbalance in funding,” says the report by the NA Standing Committee, adding
that it even goes against the law.
In 2006-2010,
government bond funds were allocated dispersedly. Meanwhile, the number of
projects and their total costs grew rapidly, causing financial shortages for
many ongoing projects, forcing them to be rescheduled or adopt another
investment format, causing a waste of resources.
The mechanism for
capital allocation is unreasonable with no specific criteria, leading to
inequality among regions and localities, paving the way for the ask-give
mechanism to stay. Many projects seem to be not as urgent as they claimed
when seeking government bond funding.
The NA Standing
Committee told the Government to request ministries and localities to review
the total investment cost of all projects and classify them. Those making
cost revisions inappropriate with the NA resolutions and Directive 1792 of
the Government should not get additional funding.
The committee also
asked the Government to reprimand the ministries and localities in charge of
the government bond-funded projects with several wrongdoings and make a
report to the NA at the next sitting.
Work starts
on Japanese biotech plant
Japan’s Nippon Zoki
Pharmaceutical Co. Ltd. last Friday started construction of its first
biotechnological plant in Vietnam.
The plant at Que Vo
Industrial Park (IP) in the northern province of Bac Ninh is being developed
by Konishi Vietnam Biotechnological Co. Ltd, a subsidiary of Nippon Zoki,
with total registered capital of US$90 million on 10.6 hectares.
The first phase of
the project, which costs an estimated US$62 million and covers three
hectares, will be put into operation in April next year.
Nippon Zoki
specializes in making pain relief and human immune system improvement
products.
According to the
investor, the plant will make pharmaceutical products extracted from the skin
of white rabbits in New Zealand with a designed consumption capacity of 3,700
head a day. In the first phase, the investor will import raised rabbits from
New Zealand for production and develop on-site input material regions in the
long run.
Bac Ninh vice
chairman Nguyen Tien Nhuong expects the project of Nippon Zoki to open up opportunities
for the development of the province’s husbandry industry.
The factory in Que
Vo IP, when in place, will be a great opportunity for the rabbit farming
sector in Bac Ninh and the nation’s north as a whole.
It is easy to raise
rabbits with low investment capital in the north while local farmers can make
high profit. The project will also contribute to increasing export value of
Bac Ninh, satisfying local demand and improving incomes of locals in its
material farming regions.
In addition to the
plant under construction in Que Vo, Nippon Zoki has two other plants abroad,
with one in China and the other in Japan, which are running at full capacity
but are still unable to meet rising demand, the investor said.
Australia’s
Woolmark backs garment industry
Australian firm
Woolmark and Vietnamese textile-garment manufacturers are jointly
implementing a project intended to help Vietnam become one of the top five
textile-garment manufacturing countries by 2020.
As the exclusive
agent of Merino wool worldwide, Woolmark has been working with some 50
Vietnamese partners to develop a sustainable supply chain in Vietnam and
expand its market by introducing Merino wool to the local market.
The project is
aimed at promoting the trademark Woolmark owned by Australian Wool Innovation
Limited (AWI) and introducing Vietnamese wool brands of high quality and
added value to global markets, said Jimmy Jackson, general manager for
product development and commercialization at the Woolmark Company.
He said 70% of AWI
wool was exported to China. However, the attractiveness of China is on the
fall, so AWI is seeking other markets for Australian wool.
Asked why AWI was
eyeing Vietnam, he said Vietnam had a developed textile-garment industry and
a lot of skilled labor.
Especially, wool
processing needs a lot of water while Vietnam has a high annual rainfall plus
nearly 400 rivers across the country. Therefore, AWI is pursing this project
in Vietnam.
“Reducing exports
to China and increasing exports to Vietnam is a strategy of the company,”
said Jackson.
Source: VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
|
Thứ Sáu, 14 tháng 6, 2013
Đăng ký:
Đăng Nhận xét (Atom)
Không có nhận xét nào:
Đăng nhận xét