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BUSINESS IN BRIEF 22/6
ADB-funded
project brings power to Lai Chau province
Households in 31
mountainous communes in northern Lai Chau province on June 19 gained access
to electricity as a project to expand and improve the province’s rural power
grids started generation.
The generation is
part of an Asian Development Bank (ADB)-funded programme to develop renewable
energy, expand and improve power grids in remote rural areas.
The two-phase
programme has a total investment of over 948 billion VND (45 million USD),
including 30 million USD funded by ADB.
Its first phase is
expected to complete later this month, with 5,758 households in Lai Chau
province and 7,944 others in Dien Bien province gaining access to
electricity.
Once becoming fully
operational by the end of 2014, the programme will provide electricity to
14,487 households in 48 communes in eight districts of Dien Bien province and
16,207 households in 53 communes in Lai Chau province’s six district,
including Than Uyen, Tan Uyen, Phong Tho, Tam Duong, Sin Ho and Muong Te.
It will help raise
the number of families having electricity in Lai Chau province from 61
percent to 79 percent and in Dien Bien from 67.9 percent to 81 percent.
Binh Duong
export value up 16% in five months
Local export
enterprises in the southern
Export value from
the province in the first five months of this year increased 16 per cent to
nearly US$5 billion against the same period last year, according to the
People's Committee of Binh Duong.
Domestic invested
enterprises achieved a year-on-year increase of 5.2 per cent in export value
to $820 million, while foreign invested firms' enjoyed a year-on-year rise of
18.6 per cent to $4 billion.
Key exports
including wood products, textiles and garments, leather, footwear and
handicrafts had contributed to the surge, despite the economic downturn,
according to the Binh Duong Importers and Exporters Club.
Pham Van Xo, head
of the club, said the club's 156 members had all signed export contracts
until the end of the year, and the apparel, leather and footwear industries
had received large orders for cheap, quality goods.
Enterprises must
cut production costs, apply modern technology and use a trained workforce to
increase profits, Xo said.
This year, local
leather and footwear enterprises were producing good designs and applying
modern technology in production and management to reduce risks, he said.
Le Hong Phoa,
chairman of the Binh Duong Apparel Association, said that local apparel
exports increased 7.3 per cent in value in the first five months to $600
million compared to the same period last year, and Binh Duong was considered
one of the leading apparel provinces in
However, the sector
still faced many challenges, he said. Those included lack of capital,
dependence on material imports and lack of workers.
Additionally, the
economic downturn and technical barriers on export markets were also
challenges for local exporters, Xo said.
Larger foreign
firms were also dominating the market due to larger production scale and
financial capacity that left local companies struggling to keep up with
global demand.
Local enterprises
should invest in infrastructure and technology to increase exports, he said.
Binh Duong exports
are projected to increase 20 per cent in value this year to $15-16 billion,
and key exports including wood products, textiles and garments, leather,
footwear, latex and handicrafts are expected to achieve good results.
Strong
growth forecast for high-tech export sector
High-tech products,
a key export item for
The seminar was
organised by the Department of Industry and Trade, Sai Gon Hi-tech Park and
WTO Centre's Development and Research Institute.
Huynh Khanh Hiep,
deputy director of the city's Department of Industry and Trade, said that
export turnover of high-tech products reached US$2.46 billion, an increase of
three times compared to 2011. This accounted for 11.4 per cent of
The main export
markets for hi-tech products are in Asia (
Among hi-tech
products, the city's software exports are expected to reach an average growth
rate of 40 per cent each year. By 2015, this is estimated to account for 2
per cent of the total export turnover.
However, Hiep said
to reach the target, support policies from the government were needed.
He noted that
"Local
companies need to restructure businesses, seek high-quality human resources
and cooperation opportunities to strengthen exports of high-tech
products," Hiep said.
Le Thi Bich Loan,
deputy head of the management board of Sai Gon Hi-Tech Park (SHTP), said that
in the first five months of the year SHTP's hi-tech product exports reached
$695 million out of $1 billion in total export turnover.
However, most of
this came from foreign-invested enterprises.
The localisation
ratio of high-tech products was still low, at 18 per cent. It is expected to
increase to 35-45 per cent by 2020, she said.
"Currently,
domestic enterprises are facing many difficulties including capital shortage.
They are still weak in R&D and design. These are key to increase added
value added for products," she said.
SHTP, in
collaboration with city authorities, has offered incentives on taxes, land
rentals and loans, as well as training support for high-tech support industry
projects inside the SHTP.
Chu Tien Dung,
chairman of the HCM City Computer Association, said the State should issue
support policies on infrastructure for production, including land, technology
and communications, to save costs and increase competitiveness with other
countries.
Human resources are
also an important factor to help software companies develop in an
international market. Employees are plentiful, but the quality of staff is
not high, failing to meet demand, according to Dung. The lack of skilled
workers has hindered export growth of companies, he said.
Dung said there was
also a need to build national trademarks for high-tech products and hold more
trade promotions to introduce products to the global market.
Local
products get thumbs up
Vietnamese goods
such as Vinamilk dairy products, 333 Beer and Hao Hao instant noodles have
been highlighted for their brisk sales in the domestic market.
The latest report
from consumer information group Kantar highlighted several Vietnamese
products in their rankings of top brands in the health & beauty, home
care and beverages and food sectors across the county.
Local products such
as Vinamilk,
According to the
report, the five most chosen food brands were Vinamilk, Chinsu (
Vinamilk reaches
nearly every Vietnamese household (94 per cent of the population), with 57
million individual sales each year.
The top five brands
in health and beauty are P/S of Unilever, Kotex of Kimberly Clark, Clear of
Unilever, Lifebuoy of Unilever and Colgate of Colgate-Palmolive. All are from
multinational firms.
The beverage sector
saw Nestle's Nescafe on top, followed by Sting energy drink from Pepsico,
Sabeco's 333 Beer, Coca-Cola and URC Viet Nam's C2 ready-to-drink tea.
The Kantar
World-panel Brand Footprint Ranking measures the popularity of brands in 32
countries in four continents.
Long An GDP
growth reaches 9.7%
Mekong Delta Long
An Province posted a 9.7 per cent increase in Gross Domestic Product (GDP) in
the first half of 2013.
However, this
year's H1 posted the lowest GDP growth in four years, the provincial
Statistics Office has revealed.
In the first six
months of 2013, the construction industry soared 13.9 per cent; the trade and
services sector increased 11.5 per cent; and agriculture, forestry and
fisheries grew 2.9 per cent.
The province also
posted total retail sales and services of VND16,681 billion (US$793 million)
in H1/2013, up 18.6 per cent year on year.
Long An earned a
total of $1.3 billion from exports, up 16.4 per cent year on year, while it
spent $1.036 billion to import goods and services, up 7.8 per cent.
Sai Gon
Co.op opens supermarket
Sai Gon Co.op
opened its 62nd supermarket in central
The store covers an
area of more than 10,000sq.m and stocks more than 30,000 products including
food, cosmetics, garments and household appliances and utensils.
It is the second
Co.op supermarket in central
On the opening
occasion, Co.op mart Nha Trang offered discounts of 50 per cent on thousands
of items till June 30.-
The 14th
Asia-Pacific Conference of German Business will be held in
At the meeting,
German enterprises will make exchanges and promote trade with regional firms,
economic experts and politicians.
The event will also
offer opportunities for Vietnamese businesses to work with German peers to
figure out ways to increase the two countries' bilateral trade and seek
investment partnerships.
Tra fish
exports forecast at $800m
Exports of tra fish
are expected to reach around US$800 million in the first half of this year,
down 7.3 per cent year-on-year, according to the Viet Nam Association of
Seafood Exporters and Producers (VASEP).
Tra fish exports
experienced a yearly decrease of 6.7 per cent in the past five months,
reaching around $670 million in that time, VASEP said, blaming the
unsatisfactory results for declining export value in some markets including
the EU, one of Viet Nam's biggest customers.
Over the period,
the country exported only $151 million worth of tra fish to the EU, plunging
17.6 per cent against the same time last year.
Truong Dinh Hoe,
general secretary of VASEP, predicted that tra fish demand from the EU
markets were not likely to recover as expected and Viet Nam's tra fish
exports to the EU may not grow in the near future as the bloc's debt crisis
had not been overcome, while consumer power was yet to change positively.
On a brighter note,
Hoe said exports of tra fish to the
Tra fish exports to
the
Earlier, VASEP
forecast that tra fish exports would bring in $1.9 billion by the year-end,
surging 5.5 per cent year-on-year.
Tra fish business
should meet stricter hygiene and registration conditions to guarantee quality
and improve management of the sector, experts have said.
There should also
be more co-ordination among tra fish farmers, processors and exporters, they
said.
Firms get
right to defer tax payments
Enterprises would
be allowed to pay their tax debts by installments from the beginning of next
month, under a new proviso intended to assist firms in weathering the
economic storm.
The concession is
set to be added to the amended law of tax management, due to come into force
on July 1.
Under the caveat,
deferred tax debts must be paid off within 12 months. Enterprises would then
have to pay late payment fines at 0.05 per cent of the debt per day.
Enterprises must
obtain a guarantee from credit institutions to qualify for the deferred
payment. Under the guarantee, credit institutions must confer with tax
agencies about the ability of firms to pay the taxes and fines for late payment
in case enterprises do not fulfil their obligations.
If enterprises
failed to pay tax debts according to the registered schedule, after five days
of the deadline passing, guarantee institutions would be responsible for
paying enterprises' tax debts and fines for late payment.
However, at a
conference held last week by the General Department of Taxation, enterprises
said the rate of 0.05 per cent per day for late payment, equivalent to 18 per
cent per year, was high in comparison with the current loan interest rate of
12-13 per cent per year.
Enterprises also
said that it would be difficult for them to gain such guarantees from credit
institutions for deferred payment.
Seafood company delists due to low share value
Seafood processor
Gentraco (GFC) will ask its shareholders to delist shares and terminate the
status of a public company during its annual meeting tomorrow.
The company said
that due to the overall impact of the economy along with its own
difficulties, its share price in the stock market constantly declined to the
current VND3,000 (US$0.14) per share.
Therefore, Gentraco
could not raise capital through the stock market as well as enhance the
interests of shareholders because of the low market value.
In addition, the Ha
Noi Stock Exchange can delist the stock due to its low liquidity and being
put under special warnings and control. Hence, the company will volunteer to
cancel listing.
Gentraco expects
revenue and profit this year will reach only VND779 billion ($37 million) and
VND254 million ($12,000).
Seafood
firms sell assets to stay in business
Viet Nhat Seafood
(VNH) yesterday announced it had to sell some of its assets to raise capital
for its operation.
Specifically, it
will sell VND12 billion (US$571,400) in Phu Nhat Canned Food Co Ltd, which
has a charter capital of VND36 billion ($1.7 million).
In addition, it had
sold a VND54 billion ($2.5 million) property in
The company expects
modest revenue and profits of just VND80 billion ($3.8 million) and VND4
billion ($190,000) for this year.
VNH shares lost 3.8
per cent yesterday to just VND2,500 ($0.10).
FPT
earnings up in first five months
Software provider
FPT announced its revenue during the first five months of this year reached
nearly VND9.8 trillion (US$466.6 million), exceeding the period's target by 6
per cent and completing 36 per cent of the year's plan.
Gross profit was
VND968 billion ($46 million), or 37 per cent of the year's plan, while net
profit reached VND796 billion ($37.9 million), accounting for 36 per cent of
this year's target.
Earning per share
(EPS) after the first five months was VND2,162 ($0.10), equivalent to 35 per
cent of the year's plan. FPT closed yesterday's session off 0.5 per cent to
VND42,800 ($2).
Draft circular
regulates asset management
The State Bank of
According to the
draft, lenders with non-performing loans (NPL) ratios of 3 per cent and above
will be required to sell the loans to VAMC in either of two ways: at book
value by issuing special bonds or at market value by using other sources.
VAMC will use the
special bonds to buy only NPLs that are backed by collateral, 65 per cent of
which must be real estate. The bad loans and collateral must be legitimate,
not used to back other obligations of credit institutions and have full
records and legal papers.
To have NPLs bought
by the VAMC bonds, the balances or outstanding bad debts cannot be lower than
VND3 billion for borrowing firms and VND1 billion for individual borrowers.
The Prime Minister
will decide if VAMC buys bad loans that do not meet the conditions as
recommended by the central bank.
To have bad loans
purchased by VAMC at market value, which must be based on recoverability of
the loans and collateral. The purchase price shall not be higher than the
market value or the re-assessed value of the debts.
Borrowers must also
have prospects of making repayments for the loans besides feasible production
figures, business and repayment plans.
The draft circular
also stipulates that credit institutions shall make specific provision for
special bonds issued by VAMC.
Under the draft,
VAMC can earn 2 per cent of total debts recovered and the income will be used
to offset associated costs.
VAMC is expected to
help the country to resolve roughly VND80-100 trillion of bad loans with a
projected loan recovery rate of 20-40 per cent.
Vietnam
Co-operative Bank to open
The Vietnam
Co-operative Bank (Co-opBank), formerly the Central People’s Credit Fund
(CPCF), will officially begin operating on June 24 with chartered capital of
VND3 trillion (US$142 million) and an operational duration of 99 years.
The bank’s
chartered capital is sourced from the State budget, CPCF members and other
legal entities.
The two state
capital representatives at the Co-opBank are the bank’s Board of Directors
(BOD) chairman Tran Quang Khanh and its Director General, Do Manh Hung.
The bank will be
headquartered in
Transformed from
the CPCF, the bank will take responsibility for handling all the CPCF’s
problems, in addition to implementing valid contracts and transactions signed
by the CPCF.
VietinBank
to loan $1.2b to Hoa Sen
The Viet Nam Joint
Stock Commercial Bank for Industry and Trade (ViettinBank) will lend VND2.5
trillion (US$1.2 billion) to the steelmaker Hoa Sen Group for the
construction of two mills containing cold rolling lines.
The loans will be
disbursed in late 2013 and early 2014 under an agreement on strategic
co-operation which was signed yesterday, said ViettinBank chairman Pham Huy
Hung.
Each cold rolling
line will have a designed capacity of 200,000 tonnes of metal per year.
VietinBank has also
committed to providing funds for Hoa Sen Group to supplement the company's
working capital. They will enjoy preferential lending rates of 8 per cent for
short-term loans and 11 per cent for long-term credits, Hung noted.
ADB to fund
power grid in Hanoi, HCMC
Prime Minister
Nguyen Tan Dung has approved a technical assistance project to develop a
power grid in
The project will
cost an estimated US$544,000, of which $500,000 will be contributed by ADB.
The Prime Minister
entrusted the Ministry of Industry and Trade to prepare, verify and ratify
the aforesaid project abiding by current regulations. The State Bank of
Increasing
fertilizer exports to Myanmar
Fertilizer exports
to
Dam Phu My Joint
Stock Company General Director Cao Hoai Duong said
The demand for
imported fertilizers will continue rising as the
Vietnamese
fertilizer exporters had previously encountered payment difficulties,
requiring the involvement of a third nation like
Duong said the
services have now improved, allowing Vietnamese exporters to conduct
international transactions with their trade partners directly.
The company has
produced around 438,000 tonnes of fertilizers since the beginning of this
year, ensuring an adequate supply for domestic consumption during 2013’s crop
seasons.
The group said
their cooperation agreement with
The agreement aims
to help AGPPS independently manufacture modern dryers capable of producing
germinated brown (GABA) rice. This rice variety’s abundance of amino acids is
beneficial to consumers’ health.
As
Last year, Satake
won a contract to build a large-scale rice-grinding factory for a Cambodian exporter
and another to increase the production capacity of a Thai rice processing
company.
Tapping
into the Russian market
The Ministry of
Industry and Trade (MoIT) reported that Vietnamese exports to
However, the export
structure has shifted from agro-forestry and fishery products to phone
handsets and their spare parts.
This is not a positive
sign for
MoIT
statistics showed that the ratio of agro-forestry and fishery exports to
total fell sharply from 50% in 2009 to 20% in 2012.
According to
experts,
Eligible items are
coffee, tea, vegetables, fresh and frozen fruits, meat and meat products, and
seafood.
Chu Xuan Kien,
Deputy General Director of the Hanoi Trade Corporation (Hapro), said
businesses find it difficult to penetrate this market, especially big
supermarkets, due to fierce competition and cumbersome administrative
procedures, mostly modes of payment.
La Van Chau, former
trade councillor to
Household
utensil, gift fair attracts 100 businesses
About 100
businesses will showcase household utensils and gifts at a week-long special
fair in
On display at the
2013 Household Utensil and Gift Fair will be fashionable garments, cosmetics,
electronic products, toys, stationery, candies, processed food, handicraft
products, and souvenirs.
Cultural activities
celebrating Vietnam Family Day 2013 (June 28) will run in conjunction with
the fair, such as book reading for children and a space dedicated to
traditional Vietnamese food.
Organisers will
also run a writing competition themed “Great Dad”, a cooking competition, a
flower arrangement competition, a ceremony honouring 40 outstanding families,
and an art performance.
International Trade
Fair Organising Company (IFC) Director Nguyen Cong Tuan said the fair is a
practical response to the “Vietnamese people use Vietnamese goods” campaign.
It also provides a
good opportunity for businesses to share their experiences in manufacturing
and promoting their brands as widely as possible, he noted.
The fair will be
held at the Vietnam Culture and
Vietnamese people
observe June 28 as Family Day to promote humanitarian values of family in
society.
Quang Ninh
promotes trade, investment with Indonesia
A high-ranking
delegation from northern Quang Ninh province paid a visit to
During the visit,
the delegation had a working session with the Batam Free Trade Zone
Management Agency in the island
The Quang Ninh
officials also met with leaders of Indofood, the largest food corporation in
At the meeting,
Secretary of the Quang Ninh provincial Party Committee Pham Minh Chinh
highlighted his locality’s strengths on trade and investment cooperation,
noting that Quang Ninh is a centre for mineral exploitation, a leading
tourist destination in
The Indofood
leaders spoke highly of cooperation potential with Quang Ninh in particular
and Vietnam in general, affirming that the corporation considers Vietnam one
of its strategic markets in Southeast Asia which serves as a gateway for its
products to penetrate China’s southern provinces.
As part of the
visit, the Quang Ninh delegation also worked with
It also studied the
Indonesian Government’s policies and experience in developing SEZs, economic
and industrial zones, hi-tech parks and free trade areas.-
Bright
prospects for cassava exports
Cassava export
earnings are likely to reach US$2 billion if local exporters penetrate the European
and US markets, according to Nguyen Van Lang, President of the Vietnam
Cassava Association.
He noted that while
According to the
association’s statistics, the country now has 560,000 hectares under cassava
cultivation, with an annual output of 9.4 million tonnes. It has planned to
use all the cassava output for the production of bio-ethanol.
However, the
economic downturn has delayed the operation of ethanol factories, forcing
cassava producers to export their products.
Last year,
The country’s
bio-ethanol development project has set the target of producing 750 million
litres of ethanol for domestic use by 2015, which will need about 4.2 million
tonnes of raw cassava.
Firms call
for media supports in policy response
Businesses want the
media to side with them, reflect their hardships and be their voice against
unreasonable policies, heard a roundtable on Wednesday
The roundtable
themed Media and Business Community – Issues of Mutual Interests was held by
Phap luat TPHCM newspaper in collaboration with Thoi bao Kinh te Sai Gon, Sai
Gon Tiep thi, Doanh nhan Sai Gon and television channel FBNC.
Speaking at the
event, Vu Anh Tam, chairman of Tai Nguyen Co., said policy quality was worth
discussing since many of the current policies were ambiguous and impractical.
He hoped the media would reflect business opinions about policy quality.
Le Chi Hieu,
chairman and general director of Thu Duc Housing Development Corp. (Thuduc
House), said legal and policy risks in
To cope with this
situation, businesses choose the easiest way, which is to give bribes, he
said.
Citing real estate
as an example, he said this sector was facing multiple problems such as exorbitant
prices, huge inventory and poor liquidity. Both enterprises and the State are
to blame for this situation, he stated.
High prices are
caused by unreasonable regulations on site clearance compensation, land use
fees and corporate income tax, along with sky-high lending rates and
cumbersome procedures, he explained.
Tran Van Thanh,
chairman of House Vietnam Co., said the economy had been infected with a
virus named financial distress. Still, policies are confusing and ambiguous,
undermining the confidence of the business community.
Pham Duc Binh,
chairman and general director of Thanh Binh Co. in Dong Nai, stressed
enterprises were struggling with impractical regulations, which they could
hardly satisfy. Therefore, they have to suffer, dodge the laws or violate
them.
He suggested that
when reporting on businesses, the media should only report what had been
completely obvious.
Representatives of
many companies said a lot of information on the media was untrue, causing
them much trouble. They proposed reporters and journalists be more
responsible, always confirming the information they hear and having a deeper
thought on every issue.
Truong Dinh Hoe,
general secretary of the Vietnam Association of Seafood Exporters and
Producers (VASEP), said the media should give their opinions on the State
policies right in their draft stage rather than waiting until their release.
Tran Ngoc Chau,
director of FBNC, said the business community was a source for economic
newspapers. Although the media cannot directly remove difficulties for
enterprises, they can exert a pressure on the policymakers.
At the roundtable
on Wednesday, Le Hoang Chau, chairman of the HCMC Real Estate Association, Le
Chi Hieu and Nguyen Thanh Toai, deputy general director of Asia Commercial
Bank (ACB), volunteered to join hands with the editors in chief of Phap luat
TPHCM, Thoi bao Kinh te Sai Gon, Sai Gon Tiep thi, Doanh nhan Sai Gon and
FBNC to organize regular meetings between the media and the business
community.
Coteccons
wins huge retail construction packages
Cotec Construction
Joint Stock Company (Coteccons) has won two bidding packages totaling more
than VND1.3 trillion to construct two commercial centers, with one in HCMC’s
District 7 and the other in
Tran Quang Quan,
deputy general director of Coteccons, said his firm had beaten four foreign
contractors, including Japanese and South Korean ones, to win the right to
develop the SC VivoCity shopping center on
The project is
invested by Vietsin Commercial Complex Development (VCCD), a joint venture
between Saigon Co.op Investment Development Joint Stock Company (SCID) and
With the bidding
package valued at VND1.2 trillion, Coteccons will have to complete the
project with total floor space of some 110,000 square meters in 16 months.
SC VivoCity belongs
to the
In the other deal,
Coteccons is picked as the contractor for the
The firm is
contracted to build the shopping center on about 70,000 square meters within
seven months for a bidding package of roughly VND120 billion.
The US$95-million
project is part of a series of shopping centers that Japan’s retail group
Aeon is developing in Hanoi, HCMC and Binh Duong.
With the
just-awarded packages, Coteccons raises the total bidding value it has
obtained since early this year to VND2.7 trillion, which will amount to
VND5.6 trillion if last year’s VND2.9 trillion worth of undeveloped works is
taken into account.
Most bidding
packages of Coteccons are in the shopping center segment, with no housing
schemes recorded, Quan informed.
* Savills Vietnam
expects the number of projects under construction and retail space supply in
HCMC to rise sharply in the near future.
Total retail space
supply of the city now is about 796,000 square meters, which is forecast to
double in the coming time with supplies mainly coming from districts 1, 2 and
7.
The average
occupancy rate in the first quarter of the year remained unchanged compared
to the previous quarter while the average rent posted a slight reduction of
2% against a quarter earlier.
Husbandry
industry to overcome hardship, says ILRI
Lucila A. Lapar, an
agricultural economist of ILRI, said that meat is a necessary product of
consumers and that meat consumption will increase following higher incomes of
people in the future. Therefore, the husbandry industry of
Besides, domestic
consumers are fond of raw meat rather than imported frozen meat. This is an
advantage for enterprises in this sector.
ILRI’s study also
provided suggestions for husbandry enterprises to overcome difficulties.
Because consumers usually diversify their eating habits, using various types
of meat such as seafood, livestock, beef and eggs, enterprises should also
provide diversified products to meet their demands. This must be included in
long-term strategies of enterprises.
The most important factor
is price because it will impact decisions of buyers. Therefore, enterprises
must find out ways to reduce costs to launch competitive products onto the
market, the report said.
Besides, meat
consumers still care about problems such as diseases, food hygiene and
safety. The study showed that consumers have given negative responses to pig
diseases, with roughly 50% stopping or reducing meat consumption and around
one-third have shifted to use other types of meat.
Compared to their
Second IZ
for Japanese investors in BR-VT kicked off
Thanh Binh Phu My
Joint Stock Company on Wednesday began construction of Phu My 3 Industrial
Zone in Ba Ria-Vung Tau (BR-VT) Province’s Tan Thanh District to attract
Japanese investors.
This is the second
industrial zone project in BR-VT which directs at Japanese investors. Dong
A-Chau Duc Joint Stock Company last month had started work on an industrial
zone targeting investors from this country.
According to Pham
Quoc Dung, chairman of Thanh Binh Phu My Co., Phu My 3 was picked by the
province to become a special industrial zone for Japanese investors.
Phu My 3 Industrial
Zone covering an area of 999 hectares consists of four main areas - supporting
and multi-disciplinary industries, heavy industries, port and logistics, and
utility services. Among these, at least 300 hectares will be set aside for
Japanese investors.
Dung said Phu My 3
had its planning designed by Nikken Sekkei Civil Engineering and would become
an industrial zone having synchronous infrastructure and utilities meeting
international standards. Besides, it can meet demands of many industries such
as petrochemicals, chemicals, basic materials, supporting industries,
mechanical engineering, hi-technology, and port and logistics, he added.
According to Dung,
having an investment of VND7.26 trillion, Phu My 3 has well-equipped
accommodation for staff, workers, engineers and experts with hotel,
apartment, shopping center, international school, hospital and park to create
a good working and living environment for investors and employees. The
industrial zone also provides built-up workshops for enterprises with short-
and medium-term operations.
Phu My 3 will use
natural gas, liquefied petroleum gas (LPG) and condensate to supply stable
electricity and water for tenants. In addition, to save time and costs for
customers, the industrial zone provides “one stop service” investment
support.
According to Nguyen
Thi Thao Nhi, general director of Thanh Binh Phu My Co., Phu My 3 Industrial
Zone is located in the Phu My port urban-industrial area. With location
advantages, the firm will make Phu My 3 a modern industrial zone and help
investors cut production costs.
BR-VT has proposed
the Government to consider offering special incentives to attract investors
in the supporting industries.
Nhi said that all
investments in Phu My 3 could enjoy preferential taxes, including a corporate
income tax rate of 20% in ten years after enterprises start operations, a
corporation income tax exemption in two years after enterprises gain taxable
income and a 50% reduction in the next four years.
Dong A-Chau Duc
Joint Stock Company last month kicked off construction of Da Bac Industrial
Zone in BR-VT which also directs at Japanese investors. The 75-hectare
industrial zone will have land and workshops available for investors in the
fourth quarter.
Investors
on Phu Quoc likely forced to place deposits
Le Minh Hoang,
director of the provincial Department of Culture, Sports and Tourism, said
dozens of investors of slow-moving projects on Phu Quoc have been asked if
they could continue their projects or not so that Kien Giang Province can
decide on such projects.
“Investors have to
give their answers within this month. In addition to pledges on implementation
timelines, investors are required to prove their financial strength and pay
deposits to ensure the execution of their investments,” Hoang said.
According to Hoang,
there are many new investors wanting to invest in Phu Quoc but many projects
here are moving slowly. The province is considering setting the required
deposit amount, he said.
“It is tentatively
put at some 3-5% of the minimum investment amount of a hectare. The current
minimum investment ranges between US$1 million and US$1.3 million per hectare,”
he said.
The provincial
government has recently agreed to revoke the approval-in-principle earlier
given to the ecological tourism project Asia Pearl worth two billion euros on
In related news,
representatives of Kien Giang and other provinces in the Mekong Delta,
Overland
infrastructure is sufficient but there is a shortage of tourist boats which
can sail on international routes as well as flights to Phu Quoc. Furthermore,
Phu Quoc is also lacking hotels for tourists.
“This is also the
reason
CII to
issue bonds for city’s infrastructure
The HCMC
Infrastructure Investment Joint-stock Company (CII) said on Tuesday it would
soon issue VND1 trillion worth of bonds to mobilize funds for infrastructure
projects in the city.
Le Quoc Binh,
general director of CII, said that after the success in mobilizing funds for
building Saigon 2 Bridge, the company has decided to attract funds this way
to finance other key infrastructure projects in the city.
CII has been
entrusted by the city government to upgrade the Thu Duc Intersection, the BOT
Binh Trieu 2 Bridge and Road project, and an approach road connecting the
The Saigon 2 Bridge
project is developed by CII under the Build-Transfer format at a total cost
of nearly VND1.5 trillion, or some US$70 million, with VND1 trillion sourced
from a bond issue. The bridge, whose construction began in April last year,
will be opened to traffic this November.
In related news,
the municipal government has asked the Department of Transport to speed up
the progress of three steel flyovers at key traffic intersections in the
city. These flyovers, at the junctions of Ba Thang Hai-Nguyen Tri Phuong-Ly
Thai To; Cong Hoa-Hoang Hoa Tham; and Cay Go intersection, must be completed
in the third quarter this year.
FamilyMart
convenience stores change name
Many convenience
stores bearing FamilyMart brand in HCMC have been renamed B’s mart.
As observed by the
Daily, the change of signs at the stores which were formerly known as
FamilyMart outlets has started since the end of last week. Some stores have
already resumed business while others have still halted operation.
Phu Thai Group
Joint Stock Company, which had earlier joined forces with a Japanese partner
to operate FamilyMart stores, has distributed invitations for a press
briefing on the establishment of B’s Mart Co. Ltd, which is also the brand
seen on the new signs. The meeting will take place in HCMC this Thursday.
In the meantime,
local retail companies and multiple suppliers for FamilyMart have circulated
the rumor that FamilyMart had already withdrawn from
Up to now, related
sides have still kept tight lips on the aforesaid information.
FamilyMart, a
Japanese retail brand with over 17,000 stores worldwide, has entered the
Vietnamese market since 2010 through a joint venture with Phu
Up till the change
this week, there had been more than 40 stores bearing FamilyMart brand in
HCMC, compared to a total 300 stores that FamilyMart planned to open in
The website
nhuongquyenvietnam.com earlier said that
Vietnam-invested
bank in top 5 in
Bank for Investment
and Development of Cambodia (BIDC) established by Bank for Investment and
Development of Vietnam (BIDV) has been listed among the five largest
commercial banks in
In a statement
released on Tuesday, BIDV cited a report of the National Bank of
In this group, BIDC
has reported the lowest bad debt ratio at 1% and has been among banks with
the best credit quality. The bank ranked sixth in the market in terms of
charter capital, 10th in terms of network and eighth for staff scale.
BIDC is one of the
two banks in
In July, 2009, BIDV
established Investment and Development Company of Cambodia (IDCC) to acquire
BIDC started
operation a month later with a charter capital of US$70 million, focusing on
providing financial services for Vietnamese enterprises in
As of the end of May,
the bank had had total assets of US$540 million, 3.1 times larger than in
2009 while its outstanding loans more than quadrupled to US$380 million. The
bank now has six branches and one transaction point in
Source: VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
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Thứ Sáu, 21 tháng 6, 2013
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