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BUSINESS IN BRIEF 6/6
Crackdown
on fertiliser traders
Fertiliser
producers and traders have to meet more requirements to be eligible to stay
in business.
This is part of a
new decree on managing the fertiliser market drafted by the Ministry of
Industry and Trade. It is scheduled to be submitted to the Government next
month for approval.
Accordingly,
fertiliser producers will have to meet requirements covering locations,
workshop area, equipment, technology, and laboratory areas.
Managers at
fertiliser producing units must have completed at least tertiary level in
chemistry or agriculture.
Fertiliser traders
will also be required to use proper facilities. And business owners and
sellers will need to undergo training course in these subjects.
"The proposal
is expected to reject producers with poor quality products," said Nguyen
Thi Kim Lien, vice head of the ministry's Chemistry Department at a workshop
on fertiliser market management on Monday.
Lien said that the
production of fake or low quality fertiliser was at alarming levels, mostly
because everyone could make and sell fertiliser.
Poor quality
fertiliser with less than 20 per cent of the required nutrition were found
more and more in the market. They caused huge damage to crops and thus a loss
to farmers, she said.
At present, the
cost of fertiliser and plant protection chemicals account for half of rice
production costs. According to statistics, there are more than 500 fertiliser
producers and about 30,000 fertiliser traders across the country.
About 5,000 types
of fertiliser are allowed to be made, traded and used on domestic market.
Now, authorities are refining the list to manage the market.
An official from
the department, Truong Hop Tac, said that lack of staff, facilities and overlapping
management among agencies resulted in poor management.
Lien agreed with
Tac that the Ministry of Industry and Trade should be responsible for
managing non-organic fertliser while the Ministry of Agriculture and Rural
Development should be responsible for managing organic fertiliser and others.
Vice head of the
Market Watch Department Do Thanh Lam said that higher fines for violators
were also needed. In the first quarter of this year, the department examined
215 cases, cracked down on 82 violators, collected fines worth VND2.47
billion (US$117,600) and destroyed substandard goods worth VND253.2 million
($12,000).
Deputy Minister of
Science and Technology Tran Viet Thanh said improving the road transport
network’s operation and safety is a pressing issue, noting that poor
infrastructure and vehicle variety make controlling
He said intelligent
transport technologies have minimised costs and maximised efficiency and
effectiveness in countries worldwide. The government and its relevant ministries
and agencies have conducted initial research into introducing the
technologies capable of meeting
Delegates also
looked at data analyses relating to Sumitomo Electric Group’s intelligent
transport technology, the reality of transport in
At the event, the
National Centre for Technological Progress (Nacentech) and Sumitomo Electric
Group signed a memorandum of understanding on expanding science and
technology cooperation.
Banks offer
US$1.4 bln housing loans
Five commercial
banks are offering loans worth VND30 trillion (US$1.4 billion) to home buyers
and realty developers from June 1, in an effort to shore up the property
market.
The banks entrusted
by the State Bank of Vietnam (SBV) to join the lending programme include the
Vietnam Bank for Agriculture and Rural Development (Agribank), the Vietnam
Bank for Industry & Trade (Vietinbank), the Vietnam Bank for Foreign
Trade (Vietcombank), the Bank for Investment and Development of Vietnam
(BIDV) and the Mekong Housing Bank (MHB).
The banks offer an
annual preferential lending rate of 6 percent for this year, which will then
be revised by the SBV in the following year in December, at a rate that is
required to be below 6 percent per annum.
The move came on
the heels of the Government’s Resolution on bailout for home purchases, which
is expected to make it easier for borrowers to buy or rent low cost houses.
Accordingly, the
BIDV has registered to lay out a VND10 trillion (US$400 million) credit
package. It also pledged to process lending applications for individuals and
businesses within 4 and 20 working days, respectively.
Those eligible can
borrow up to 80 percent of the houses’ value and put up the purchased houses
as collateral for the bank loans that can enjoy a term of 15 years.
In early June,
construction on five low cost apartment buildings started, notably the Tay
Nam Linh Dam social housing project in
Seminar
discusses intellectual property
Intellectual
property, competition and the right to intellectual property are the main
topics of a seminar in
The event, jointly
held by the Vietnamese Ministry of Science and Technology and the World
Intellectual Property Organisation (WIPO), drew the participation of nearly
100 managers and experts from the WIPO, Laos, Cambodia, the US, Japan and
Vietnam.
Deputy Minister of
Science and Technology Tran Van Tung underlined the important role
intellectual property plays in social development as well as the performance
of businesses.
He spoke of the
fierce competition between enterprises and increasing intellectual property
violations globally.
Pointing to
overlaps in legal documents and authorities in dealing with issues regarding
intellectual property in
They also raised
the sparse content of legal documents on competition in
Sharing experiences
in competition and the exercise of rights to intellectual property, the
experts stressed the need for countries to increase policy dialogue at an
international level and partner with the WIPO and other international
organisations in the field.
At the same time,
the countries should bring into full play measures and policies stipulating
intellectual property rights, calculating economic-social matters and each
country’s development orientations, they said.
Seminar
calls for renewable energy development aid
A senior Vietnamese
trade official has called for greater flows of capital into the developing
economies of APEC including
Luong Hoang Thai,
Head of the Multilateral Trade Policies Department of the Ministry of
Industry and Trade, stated his view at a seminar in
The event saw the
participation of financial and banking experts, policymakers and
entrepreneurs from Asia-Pacific Economic Cooperation member economies as well
as scholars from the Organisation for Economic Cooperation and Development
and the United Nations Environment Programme.
He pointed to the
fact that the renewable energy sector, which is relatively new to third world
countries, including
Meanwhile, the
majority of the least economically developed nations fall short of capital
resources to build infrastructure, severing the development of renewable
energy, he said.
This will push the
underdeveloped countries behind their developed counterparts, he added.
At the seminar,
other discussions touched upon APEC-related regulations for the development
of renewable energy projects, including its open and transparent investment
mechanisms for the development of a free and open energy market.
Participants presented
their candid opinions and shared experiences in luring funds for such
projects, and put forth their suggestions to handle the matter more
effectively.
Investors
shift focus to high-dividend stocks
Investors are being
encouraged to put money into stocks with high dividend yields, creating a new
investment trend.
Viet Nam's stock
market is becoming more attractive to cash holders, including risk-averse
investors, especially in the context that deposit interest rates at many
banks have fallen to just 6-8 per cent per year.
Prices of shares
which promise high dividends have risen significantly.
PetroVietnam
General Services Corp (PET) has gained around 30 per cent since the beginning
of this month, from VND17,000 (US$0.81) a share to VND22,000 ($1.05). According
to analysts, one of the most important reason for the rise is the company
promises to pay 15-18 per cent dividend.
Price of shares of
Khanh Hoa Power Co (KHP) also jumped 20 per cent in one month, from VND10,000
a share to VND12,000. KPH has paid a dividend over 10 per cent in recent
years.
Small stocks such
as telecom equipment manufacturer Sacom Development and Investment (SAM),
Hoang Quan Consulting Trading Service Real Estate Co (HQC) or Viet Nam Japan
Medical Instrument Co (JVC) also promise investors high dividends if these
companies accomplish their profit targets.
According to
analysts of HCM City Securities Co, investment in the stocks with high
dividend yields also brings about risks, particularly when the market sinks
in a long downtrend.
Prices of shares
will be adjusted down corresponding to the number of dividends issued while a
downward trend will push share prices down further, which will adversely
affect investors' investment profits.
Risk averse
investors therefore usually invested in high-dividend stocks in the short
term and they sold those shares as soon as share prices reach their
expectations, analysts said.
However, there are
many high-dividend shares with good liquidity and stable growth such as Phu
My Fertiliser (DPM), Sucrerie De Bourbon Tay Ninh (SBT) or seafood processor
Hung Vuong Corp (HVG).
Companies promising
high dividends often have good earnings and stable growth. High dividends
reflect the health of businesses, not just an information to support stock
prices.
Steelmakers
call for action on anti-dumping
Two local
steelmakers have filed a petition with the Viet Nam Competition Authority
(VCA) under the Ministry of Industry and Trade (MoIT) saying imported
cold-rolled stainless steel is being dumped on the local market.
The petition by
Posco VST Co Ltd and Hoa Binh Inox Joint Stock Company called for
anti-dumping measures against cold-rolled stainless steel imports from
mainland
According to
Article 10.4 of Ordinance 20/2004/PL-UBTVQH11 on anti-dumping of goods into
This is the third
time local producers have filed a petition against imported products. The two
previous cases were brought against float glass and vegetable oil imports.
Most stainless
steel items enjoy a zero import tariff, except stainless steel with a
circular cross-section, which is subject to a 10 per cent duty, according to
Circular 193/2012/TT-BTC dated November 15, 2012, issued by the Ministry of
Finance.
In October last
year, the finance ministry brought forward the amended version of Circular
157/2011/TT-BTC dated November 14, 2011, raising the duty on cold-rolled
stainless steel imports to 7 per cent from the previous 5 per cent.
Such an adjustment
was made after Posco VST, the largest cold-rolled stainless steel producer in
European
firms gain confidence in market
Business confidence
among European companies in
The Business
Climate Index conducted in May rose to the midpoint, from 48 to 50 points,
following three quarters that had registered below 50.
This is the second
consecutive increase, which suggests that European companies were regaining
trust in the Vietnamese market.
The key indicators
were an increase in revenue and orders, and optimism about the overall
economic outlook.
Despite positive
signs, the BCI remains at 50, far below the highpoint of 79 in 2011, and the
improvements over the last two quarters remain limited, with an increase of
two points per quarter.
More than half of
the businesses that took part in the survey are active in the services
industry, a quarter in manufacturing, and the rest in trading and other
activities.
In line with the
last survey, there has been a continued increase in respondents assessing
their current business situation as positive, from 40 per cent to 43 per
cent.
The previous
quarter saw a rise from 26 per cent to 40 per cent, and the current level
reflects improved business sentiment.
Looking to the
future, the business outlook has seen significant improvement, with members
having positive expectations rising from 30 per cent to 43 per cent.
This development
may be linked to the ongoing EU-Viet Nam FTA negotiations, the survey said.
Although business
confidence has improved, 57 per cent of respondents assessed their outlook as
either "neutral" or "negative".
Still, the survey
found that reported investment appeared to be improving, and that more
companies intended to have a significant increase in investment. This doubled
from last quarter's 7 per cent to 13 per cent.
Overall, investment
plans look more positive than they did a year ago, with 76 per cent of
respondents either expecting to keep or increase their investment levels,
compared to 72 per cent a year ago.
The number of
respondents expecting to cut investments further declined to 19 per cent from
last quarter's 24 per cent.
This again
indicates a returning faith in
When asked about
their expected number of orders and revenue in the medium-term, 84 per cent
of respondents said they would remain constant or would improve.
In addition,
concerns about inflation are declining, with 65 per cent of companies
expecting inflation to have limited or no impact on their business in the medium-term,
compared to 55 per cent in the last quarter and up from 43 per cent a year
ago.
Members were also
asked to indicate what they think the rate of inflation will be, and the
average came to 5.13 per cent.
This is very close
to last quarter's estimate of 5.12 per cent and down half a percentage point
on last year's 5.63 per cent.
Respondents'
appreciation of the macroeconomic situation is also improving.
Whereas last
quarter 57 per cent expected a further deterioration in conditions, and a
staggering 72 per cent the quarter before, this has now fallen below the
midpoint to 48 per cent.
In other words, 52
per cent of the respondents believe the economy will stabilise and improve in
the future, something which has not been seen in the Business Climate Index
since 2011.
Ministry
tables mineral tax hike
The Finance
Ministry is calling for comments on a proposal to raise the tax on mining
iron ore, titanium, gold, copper and several other minerals by 3 to 10
percentage points.
The proposed
increase is intended to bring in an extra VND508.6 billion (US$24 million) a
year in tax revenue.
The ministry said
the higher tax was aimed at discouraging exploitation of un-recycleable
natural resources.
It added that the
current taxes on 13 kinds of metal minerals were 10-15 per cent. Tax
collection from mining in the past four years reached VND19.4 trillion
($923.8 million), VND26 trillion, ($1.23 billion) VND39.2 trillion ($1.86
billion) and VND41.3 trillion ($1.96 billion) respectively.
However, the
ministry believed the current taxes should be revised to better reflect the
higher added value gained from the use of modern technology.
Accordingly, tax on
iron ore would be increased to 20 per cent from the current 10 per cent. The
country had reserves of around 960 million tonnes and the yearly output was
3.5 million tonnes.
The tax increase on
iron was expected to bring in VND320.3 billion ($15.2 million) a year.
Tax on titanium
exploitation was also proposed to increase to 20 per cent from the current 11
per cent. Titanium exploitation and exports have been mainly ore with low
value.
The increased tax
on titanium alone would add between VND38.7 billion ($1.8 million) and
VND123.8 billion ($5.9 million) to the nation's coffers each year.
The ministry also
asked for an increase in tax on gold from 15 per cent to the highest level of
25 per cent.
It said technology
used by domestic enterprises in gold mining and processing were not highly
efficient, causing waste and harm to the environment.
The yearly tax
collection revenue on gold would be VND348.3 billion, ($16.6 million)
increasing by VND139.3 billion ($6.6 million).
Tax on copper was
proposed to increase from 10 to 25 per cent.
If approved, the
new tax would be in place from January 2014.
Mobile
exports to UAE jump
The figures were
made known by the Africa,
Vietnamese exports
to the UAE have witnessed high growth over the years, with phone handsets
taking the lead among the export items, the department said, adding that
phone exports to the market rose from $108.3 million in 2010 to $363 million
in 2011 and $1.5 billion in 2012.-
SBV lowers
farm loan interest
The State Bank
yesterday asked five commercial banks to reduce interest rates for existing
loans to 10 per cent for raising pigs, poultry, tra fish and shrimp breeding
and processing.
The bank told
Agribank, BIDV, Vietinbank, Vietcombank and Mekong Housing Bank to make
interest rates suitable to current market developments.
Short-term interest
rates for lending in dong have declined for prioritised sectors, including
agriculture and rural areas, many having hit 10 per cent, it said.-
HDBank
teams up with insurer
HCM City
Development Bank (HDBank) is to provide banking services to insurer Great
Eastern Life Viet
The bank said it
would help the insurance company manage income and expenditure accounts and
transfer money to parties relevant to insurance policies.
HDBank general
director Nguyen Huu Dang said developing cash management services was among
the bank's priorities.
SCB
predicts interest rate cut
The Standard
Chartered Bank said it expected a further cut of 50bps (0.5 per cent) in
interest rate in the third quarter if authorities "remain comfortable
with the inflation outlook and credit growth stays anaemic".
"We expect the
SBV to lower the refinancing rate by another 50bps to 6.5 per cent in the
third quarter. CPI inflation slowed to 6.61 per cent year-on-year in April
from 6.64 per cent in March (market consensus: 6.95 per cent)," the
bank's latest Global Alert report released on Tuesday said.
It said inflation
was expected to average 7.2 per cent year-on-year in 2013, down from the
bank's previous 8 per cent forecast.
The announcement
came on the back of easing inflationary pressure and sluggish economic growth
at the beginning of 2013. This is the second cut this year.
Local
support industry needs to develop
The Government has
been urged to provide incentives to spur development of the support industry
in a bid to lure more foreign investment.
The call was made
at the sixth forum on
Director of the HCM
City-based Investment and Trade Promotion Center (ITPC) Pho Nam Phuong said
many foreign manufacturing businesses failed to find eligible local component
suppliers.
There were few
qualified suppliers who could ensure efficient management, stable operation
and compliance with legal regulations on safety standards during the
manufacturing process, Phuong said.
Intel Viet Nam
Company purchasing manager Nguyen Thanh Tam referred to the fact local
suppliers had so far secured only low-value, short-term contracts which had
not yet earned them credibility with customers, especially foreign groups.
JETRO executive
director Hirotaka Yasuzumi compared
From this,
There was an
increasing possibility of Japanese companies investing in Indochina,
including
The event was
co-hosted by
GAS
shareholders take profits as price hits record high
The price of PV Gas
(GAS) shares hit a record high in recent days, prompting many internal
shareholders to sell.
Stock analysts said
the operation of the gas giant had been stable with high revenues and
profits. The price of GAS shares had almost doubled since its debut in May
last year, hitting a record high at VND62,000 (US$2.95) on Wednesday.
Since the beginning
of March, many PV Gas executives have registered to sell shares which
totalled nearly 50,000 shares. Many succeeded in their sales, including vice
chairman Vu Dinh Chien selling 51,600 shares; chief accountant Nguyen Mau
Dung 50,000 shares and deputy general director Pham Hong Linh 47,7000 shares.
PV Gas affiliates
such as CNG Viet Nam, a supplier of compressed natural gas, sold its holdings
of 100,000 shares.
CNG bought GAS
shares at just VND31,000 ($1.48) before the company listed stocks on the
exchange. Besides a 30 per cent cash dividend it received last year, CNG has
earned a profit of 70 per cent from the investment.
According to a
report on PV Gas of Phu Hung Securities Co, the gas business has a solid
foundation and is likely to grow steadily thanks to and increase in the gas
price.
Ending March 2013,
PV Gas earned a whopping net profit of VND2.29 trillion (over $109 million)
and held a huge cash amount of VND16 trillion ($762 million). It also paid a
cash dividend of up to 30 per cent last year.
Latin American
markets offer a mine of untapped potential for Vietnamese enterprises to
penetrate and expand their businesses.
That was the
message from the Viet Nam Trade Promotion Agency at a conference in Ha Noi
yesterday.
However, there was
potential for this figure to further increase, said the Ministry of Industry
and Trade's deputy director of the American Market Department Tran Huy Dong.
Dong pointed out
that demand for imported products in the region – which has a total
population of more than 600 million - was huge and most had a taste for
foreign products.
According to Do
Viet Phuong, Trade Counsellor of
Some countries were
even faced with a scarcity of goods, so all types of products were wanted, he
added.
The region's
technical and hygiene standards for imported products were not as tight as
those for Europe or the US market, Phuong said, adding that several
Governments now had policies to diversify goods suppliers, including Asian
countries like Viet Nam.
"Latin
American markets would be a good choice if
However, the long
distance, language barrier and lack of market information remained
difficulties for Vietnamese enterprises seeking to penetrate Latin American
markets, experts said.
The geographical
issues would push up transport costs and reduce the competitiveness of
Vietnamese products, while Vietnamese products would face stiff competition
from other Asian countries including
Phuong said trade
organisations in
A website about
Latin American markets would be set up for enterprises to find information
and discuss business opportunities via an on-line forum, Dong said.
According to To
Xuan Canh, director of Hao Canh Sanitary Wares Company, the procedures should
be simplified to save time.
He said trade promotion
activities, such as exhibitions, should be enhanced for enterprises on both
sides to seek business opportunities.
Le Hoang Quan said
yesterday that the city's total retail sales and service revenues rose by 7.7
per cent compared with the same period last year.
Quan was speaking
at a meeting to review the city's socio-economic growth. He noted that the
CPI rose by only 0.66 per cent compared with December 2012, when it grew by
2.49 per cent.
Exports during the
first five months were VND10.73 trillion (US$512 million), a year-on year
increase of 4.3 per cent, while industrial production grew by 4.6 per cent.
Agriculture-forestry-seafood
production increased by 6.7 per cent, while the number of tourist arrivals in
the city was 286,200, a year-on-year increase of 6 per cent.
To promote
business, Quan has asked the city's Government agencies to take measures to
help them settle bad debts and overcome other difficulties.
In the next seven
months of 2013, the city will focus on measures for trade promotion and
market expansion.
The city authority
will promote exports, carry out programmes for price and market
stabilisation, and help businesses reduce inventory by sending goods to
remote areas and conduct demand-stimulus programmes in rural areas.
The city will also
continue to improve management and accelerate work on major construction
projects, said Quan.
Seafood
sector likely to grow on VN-EU FTA
As foreign seafood
importers are shifting their orders from
Speaking at the
Vietnam-EU Business Forum 2013 arranged by the Vietnam Chamber of Commerce
and Industry (VCCI) and the Delegation of the EU to
The FTA will help
lessen non-tariff barriers like trade protectionist measures, plant and
animal quarantine and future technical barriers through the agreement, VASEP
expects.
Three years ago,
the information that the EU might slap anti-dumping taxes on tra fish
imported from
Hoe expects the FTA
to help
A road map of tax
cuts for seafood companies is needed in the FTA as the industry will not be
entitled to preferential tariffs in line with the Generalized System of
Preferences (GSP) of the EU in near future.
Seafood exports
brought home over US$6.1 billion in 2012, growing more than 16 times in the
last two decades, with exports to the EU making up 18.5%.
Auto, bike
expo attracts 250 firms
he Saigon Autotech
& Accessories 2013 opened in HCMC on Thursday, featuring nearly 400
stalls of 250 foreign and local companies.
With the number of
display stalls up 40% against last year, the event this year is showcasing
about 300 products which are mainly components, accessories, assembly and
maintenance equipment and clean fuel.
The exhibition introduces
high-end motorcycle models and heavy-duty bikes such as Harley Davidson,
Rebel and Ducati along with products from
The automobile
area, meanwhile, shows the Subaru brand with imported models including BRZ,
Subaru XV 2.0i premium, Legacy 2.5GT and Outback 2.5i SUV.
Organized by Asia
Trade Fair & Business Promotion Joint Stock Company and
Shrimp
farming seen becoming conditional business
Those wanting to
raise shrimp may be required to have a minimum farming area of 2,000 square
meters, with 15-20% of it for a settling basin, according to a draft of a rule
specifying standards for shrimp farming.
The draft also
mentions banning the use of forbidden antibiotics in aquaculture and
discharging wastewater into sources of water for farming.
The General
Directorate of Fisheries and the Ministry of Agriculture and Rural
Development are collecting comment on the draft.
The above
requirements, in fact, have already been imposed on shrimp and tra fish
farming for years, but farmers have declined to comply with them, especially
the settling basin requirement.
Nguyen Van Nhiem,
chairman of the My Thanh Shrimp Association in Soc Trang, said authorities
and experts had always asked farmers to develop settling basins to handle
turbidity in water. However, because water was not heavily polluted back
then, farmers did not treat it before use for shrimp farming.
Besides, a large
area is required to build a settling basin. Therefore, farmers also ignore
this requirement, he explained. However, for nearly three years now, more and
more disease outbreaks in shrimp have been reported.
Meanwhile, there
has not been an irrigation system for aquaculture in the Mekong Delta, but
seafood farmers have to use the same irrigation system for rice farming.
Therefore, when disease strikes their shrimp, farmers will discharge water
into canals, but others get back that very water to raise their shrimp,
enabling the rapid spread of the disease.
“As shrimp disease
has not lessened, the requirement for settling basins set by the General
Directorate of Fisheries will eventually benefit farmers,” said Nhiem.
The requirement for
settling basins perhaps will get the consent of shrimp raisers. However, the
problem now is not the lack of land for settling basins, but the lack of
funding to continue shrimp farming.
Members of the My
Thanh Shrimp Association currently have a combined 22,000 hectares for shrimp
farming, but only about 20% of this area is in use. “Many association members
after a few crops of heavy losses due to the sudden shrimp deaths have no
money left to raise shrimp. We have land to develop settling basins as
required by the General Directorate of Fisheries, but have no money to raise
shrimp,” said Nhiem.
Debt
trading market far from reality
he birth of the
Vietnam Asset Management Company (VAMC) is not at all a magic wand that can
instantly give rise to a debt trading market. It is the first step in a long
journey ahead.
Tareq Muhmood, CEO
of ANZ Vietnam Bank, told the Daily that it is still too soon to say so as
the debt trading market has yet to take clear shape.
The presence of
VAMC will make conditions favorable for bad debts to be traded, he noted, but
evaluation will be a challenging matter. Banks want to get rid of bad debt
and investors may be ready to pay 30% of a debt’s value but banks still want
100% of that, he said.
“VAMC is just the
first step,” he said in an interview with the Daily.
Investors from
But it doesn’t mean
that
The establishment
of VAMC is not a miraculous solution for the economy and the bank
restructuring process, he said, adding some banks could recover rather
quickly while others would have to merge with one another. “It would take
several years.”
After the 1997-98
crisis in Asia, he said, it took
Looking at the debt
crisis in Europe, Cyprus and Iceland have not had a simple answer to the
problem while the U.S. also needed several years to recover from its subprime
mortgage problem, he said.
But the
establishment of VAMC is an important move, Muhmood stressed, and
international investors and credit rating agencies want to see this done as
well.
New World
Hong Kong-based New
World Hospitality, which manages the five-star New World Hotel Saigon in
HCMC, has been renamed as Rosewood Hotel Group.
The hospitality
group acquired the
Dang Huy Hai,
deputy general manager of the New World Hotel Saigon, said the name change of
the parent group did not affect the
“We keep the
current name and our business is as usual because
Rosewood Hotel
Group manages 40 hotels under the three brands of Rosewood,
Hotels named New
World are present in
First local
project gets Conquas certification
Kicked off in
October, 2011,
After nearly two
years of BCA assessment, Hoa Binh has become the first contractor in
Conquas introduced
by BCA is a strict standard assessment system to evaluate the quality of
building projects from start to finish with specific scores. It is currently
applied in
Demand
still high for high-end apartments
Despite property
market difficulties, the high-end apartment segment has shown its resilience,
with some projects having reported high demand in recent months.
Phu My Hung
Corporation has sold 132 of 165 apartments within one day of the second sale
last Saturday. An apartment of this project has a price tag starting from
VND30 million per square meter, with VAT included.
The company
launched the first sale of some 160 apartments in the middle of March to
explore the market response. Also within one day, customers registered to buy
130 units.
The director of a
property exchange said his firm did not completely focus on low-cost housing
projects as the high-end segment could still find buyers. Besides, many
homebuyers are ready to make cash payments, instead of using installment
plans financed by banks, he added.
Most project
investors care about financing and use deferred payment as a bait to attract
customers.
For instance, Phu
My Hung has rolled out a payment plan lasting up to 30 months, the longest
duration the firm has ever offered. In addition to such a plan, the firm
provides many loan incentives at different banks.
Also with the
deferred payment plan, a couple of projects are selling their final
apartments though their price is around VND30 million per square meter.
For the 66 final
apartments of the Him Lam Riverside project in District 7 developed by Him
Lam Land Company, customers will pay only half of the value and then move in.
The rest will be paid in two years’ time with no interest.
Deferred payment
also applies to The Estalla project in District 2 of Keppel Land Vietnam,
enabling customers to take the keys of their apartments after paying 50%.
Similarly, for 71
final apartments of the Imperia An Phu project invested by Kien A Investment
and Service Company, customers can move in after paying only 30% of the
price. The rest will be paid over two years.
According to some
project investors, the payment extension and discounts have proved attractive
to customers, with more customers willing to come to project sites to inspect
model apartments.
While tra fish and
shrimp are facing big trouble ahead due to dumping accusations and antibiotic
problems,
According to the
Ministry of Agriculture and Rural Development, the export turnover of tuna
has reached US$155 million this year, up nearly 20% year-on-year.
Explaining the high
growth, the Vietnam Association of Seafood Exporters and Producers (Vasep)
said the European market has increased tuna imports after a long period of
importing small amounts due to economic difficulties.
However, the export
value of Vietnamese tuna will rise even higher if fishermen do not use bright
lights to attract and catch tuna. This method helps reduce the catching costs
but results in lower quality of tuna.
Together with tra
fish, tuna is one of the major seafood products of
Tuna obtained an
export turnover of US$380 million in 2011, accounting for 6.3% of
Meanwhile, the
export value amounted to nearly US$570 million last year, with the
Business
vexed by IPR protection problems
Though
At a workshop on
IPR early this week, participating companies voiced their displeasure with
intellectual property protection agencies for not properly protecting them
from IPR infringements.
Ngo Thi Bau, deputy
general director of Nguyen Tam Fashion Co., known for the brand Foci, said
she once attempted to pursue a case in which Foci clothing items were
counterfeited, but to no avail.
She recalled
filling in many papers and going through several checks by the competent
agencies. “Regulations on IPR are sufficient, but I’m uncertain about the
bodies in charge of IPR protection,” she noted.
A representative
from Viet Tien Garment Co. said the firm had received advice on how to cope
with counterfeits from the Office of Intellectual Property under the HCMC
Department of Science and Technology, but this agency did not do a good job.
“We got stuck in
the settlement stage and did not know how to get out of that,” said the
representative.
Hoang To Nhu,
deputy head of the Office of Intellectual Property, said that in some
particular cases, law could not be enforced because of high levels of
sophistication and complexity in intellectual property infringements.
For example, there
was a store selling unbranded powdered food. When there was a buyer, the
store would package and label the food with a protected trademark. The
company owning the trademark wanted to bring the case to court but lacked
evidence. “The office currently has seven inspectors, but they have to cover
many areas,” said Nhu.
Ngo Duc Hoa,
chairman of Thang Loi Garment Co., said the new blankets and pillows of his
company had been faked and sold at half price. Other companies in the same
situation as Hoa’s firm advised him to ignore it.
Representatives of
many firms wondered why the local market was flooded with counterfeit and
contraband goods from
Con Dao
tourist port to open next year, depending on capital
Con Dao island
district was working with contractors to ensure a passenger port was ready by
2014, according to the
The port will cover
2.56ha of coastal land, with a wharf, a main port capable of receiving two
ships at once, an embankment and other auxiliary buildings such as a ticket
booth and service centre.
Construction was
expected to come to an end in 2012, but only 35 per cent of the plan has been
finished to date.
Vu Xuan Quyen, head
of
Once completed, the
port will contribute to the locality's socio-economic development,
particularly in maritime services and tourism.
Property
sales rule draws criticism
Real estate
developers proposed doing away with the regulation that all property
transactions be carried out on the trading floor, saying the rule had not
achieved the desired effect.
Created in
accordance with the 2006 Law on Real Estate Business, the regulation sought
to make the property market more transparent.
But while major
investors, particularly State-owned enterprises, complied with the
regulation, many other developers did not, said Dang Tien Phong, director of
Song Hong Joint Stock Corporation under the Ministry of Construction.
Instead, many
investors negotiated directly with buyers and set their own trading floors or
associated with other trading floors, which failed to ensure transparency.
"If the
regulation is not removed, it might create an unfair playing field,"
Phong told Viet Nam Investment Review.
The process of
listing property on trading floors was also complicated, as was the
transaction process, said Pham Thanh Hung, deputy director of Century Group.
The regulation that
property must be announced and listed on the trading floor a week before
transaction was only appropriate when the real estate market was booming, he
said.
In a frozen market,
the regulation would push up costs, he added. In addition, many real estate
trading floors were not managed effectively, which would pose a risk to
buyers. These trading floors took advantage of regulation loopholes to
mobilise capital and transfer property illegally.
According to an
expert from the real estate association, a large number of trading floors
were established while the property market was booming, but not enough
attention was paid to quality or management.
When the recession
hit the market, many floors shut down without reporting the action to the
construction department, making management difficult.
According to Nguyen
Van Minh, deputy president of the Viet Nam Real Estate Association, only a
few property trading floors conducted legitimately transparent operations.
As of the end of
March, there were more than 1,010 trading floors throughout the country,
mainly in Ha Noi and
Out of over 500
trading floors in Ha Noi, more than 122 halted operations last year and 200
others did not have any successful transactions.
Starting in the
third quarter, property trading floors will be required to report their
operations once a month.
The laws on housing
and real estate business were being amended to ensure appropriateness with
the current reality, the ministry said.
Source: VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
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Thứ Tư, 5 tháng 6, 2013
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