BUSINESS
IN BRIEF 16/7
The southern
economic hub will also strive to increase export turnover by 13.5 percent,
mobilise 248.5 trillion VND in social development investment, and keep the
yearly consumer price index (CPI) at below the nation’s figure.
The targets are set
in a resolution adopted by the municipal People’s Council’s 7th session early
this month.
During the year,
the city will make every effort to create jobs for 265,000 people, reduce
unemployment rate by 4.8 percent and poor households to 2.32 percent, as well
as supply clean water for 89 percent of urban households.
At the session,
Chairman of the municipal People’s Committee Le Hoang Quan said the city
administration will continue its efforts to improve the investment and
business environment to boost production and trade, strengthen urban planning
and management towards sustainable development, together with effectively
implement social welfare policies to raise people’s living standards.-
Wood
exports forecast to reach US$5.5 billion in 2013
Wood and wood
product exports are expected to reach US$5.5 billion in 2013, growing at a
rate of 10% -15%, the Ministry of Agriculture and Rural Development has
predicted.
Wood product
exports have surpassed US$1 billion each year since 2004. The commodity is
one of few agroforestry and fishery products that have maintained a stable
growth since the start of the year.
According to
statistics from the General Department of Customs, exports of wood and wood
products fetched more than US$2 billion in the first five months of 2013, an
increase of 12% over the same period last year. In May alone, the sector
brought in US$450.4 million for a year-on-year increase of 8.9%.
Most of the major
import markets for Vietnamese wood and wood products recorded positive
growth.
The
Exports to China
and Japan in the same five months increased significantly by 10.3% and 18.7%,
with revenues of US$300 million and US$305.86 million, respectively.
Other major markets
such as the
However, many local
businesses and producers have encountered difficulties in the form of rising
input costs and lack of raw materials. Domestic timber supply meets only 30%
of market demand.
Customer
requirements regarding the legal origin of Vietnamese products compel local
manufacturers to perform careful quality control and to acquire international
certificates permitting the export of goods to certain markets.
Wastewater
from seafood firms pollutes fish farms
Wastewater
discharged by 15 seafood processing companies in Son Tra district have caused
heavy losses to more than 70 seafood farmers.
A dozen hectares of
oyster and fish farms with an estimated crops amounting to 150 tonnes were
almost wiped out due to poor quality water over the past two weeks.
The farms, situated
in
Although a
wastewater treatment station for Tho Quang precinct seafood processing zone
treats 3,000 cubic metres per day, the quality of the treated water is not
high.
Farmers said the
pollution continued day and night.
Nguyen Binh, 47,
said he had to bury his fish crop in recent days. "I lost VND250 million
($12,000) in just 10 days," he said.
"I have farmed
grouper and red snapper for 10 years in the area, but it's the worst loss
I've seen. I normally make a net profit of between VND60 million and VND70
million each year."
He added fish died
due to lack of oxygen in the treated water.
Le Duc Bui, 67,
from Nai Hien Dong Ward, said he had lost VND60 million ($2,900) in the past
two days. "Wastewater from seafood business stinks the bay," he
said.
More than 700
people in the coastal district live on oyster and fish farming.
Dragon Capital
funds fall in June on ETF redemptions
All funds under
direct management of Dragon Capital saw their values decline in June as
redemptions by exchange-traded funds (ETFs) reversed most the gains of the
previous month, Dragon Capital reported.
Viet Nam Enterprise
Investments Limited (VEIL) and Viet Nam Growth Fund Limited (VGF) suffered
the steepest monthly decline of 8.2 per cent each, higher than a 7.3 per cent
drop of the benchmark VN-Index in June.
According to Dragon
Capital, the poor performance of the two funds was mainly driven by slumps of
blue chips such as Masan Group (MSN), which plunged 20.3 per cent during the
month on concerns over selling pressure from the issuance of 17.5 million
ESOP (Employee Stock Ownership Plan) shares.
Stocks that previously
benefited from ETF purchases also suffered most from the ETF rebalancing and
redemptions. They included Hoa Phat Group (HPG), down 14.6 per cent; Phu My
Fertiliser (DPM), 13.4 per cent; Hoang Anh Gia Lai Group (HAG), 11.9 per
cent; and REE Corp (REE), 9.8 per cent.
Foreign flows
stayed negative in June, caused by emerging market fund outflows following
global market declines. In
The bullish
sentiment that followed the official introduction of the Viet Nam Asset
Management Co (VAMC) in late May subsided as investors started to realise
that the VAMC will take time to gain traction and may not have any real
positive impact on the economy in the short term, the report said.
"This together
with the continued foreign outflows prompted local investors to start taking
profits after a 10 per cent market rally in May and take a ‘wait and see'
stance," it said, noting average daily liquidity declined from $73
million in May to $57 million in June.
Dragon Capital's
three other funds also declined.
Viet Nam Property
Fund Limited (VPF) decreased 1.3 per cent while Viet Nam Debt Fund SPC
(VDeF), including VDeF-A and VDeF-B, dropped 1.5 per cent and 1.2 per cent,
respectively, seeing their worst month since 2010.
Since the beginning
of the year, VDeF-A rose 8.3 per cent and VDeF-B climbed 9.3 per cent.
A wave of foreign
selling was again attributed to the fund's poor performance, but as
foreigners held less than 5 per cent of outstanding Vietnamese Government
bonds, the rash of selling did not have much of an impact.
Shoes,
leather products showcased
About 160 domestic
and international manufacturers and suppliers are taking part at the
International Shoes and Leather Exhibition in
Companies from 16
countries and territories, including Argentina, mainland China, Germany,
India, Japan, Spain, Thailand, Turkey and the US, are showcasing machinery,
materials, chemicals, cloth, shoes and leather products.
The exhibition is
an opportunity for businesses to access new technologies, promote their brand
names and meet international partners.
Numerous activities
will be organised as part of the programme, such as an award ceremony for the
2013 International Footwear Design Contest, and workshops on opportunities
and challenges that
The Viet Nam Beer,
Alcohol and Beverage Association (VBA) recently proposed that the State
administration impose a special consumption tax of 10 per cent on carbonated
beverages.
In a proposal sent
to the National Assembly,
Carbonated
beverages contain a level of acidity that is 100,000 times higher than normal
water, which can lead to obesity, according to several studies.
The reaction
between the drinks' saturated carbon dioxide (CO2) and acid in the body
creates pressure on the stomach and intestines; and is especially harmful to
those who suffer from ulcers.
Kangaroo
Company jumps ahead
According to the
commitment, Kangaroo will use the investment to focus on equipping a modern
production chain. The products will meet international standards, including
ISO (International Organisation for Standardisation) and EC marking for
products in the European Economic Area.
Kangaroo, which
appeared in
The cooperation
with South Korean companies is part of a plan to become the top corporation
in its field in
MoC
considers building more small apartments for single people
The Ministry of
Construction said development of apartments sized under 30 sq.metre per unit
was under consideration.
Deputy Minister of
Construction Nguyen Tran
The current
standard area for low-income apartments ranges from 30 sq.metre to 70 sq.
metre.
Ha Noi to
stop licensing new commercial housing in city centre
Ha Noi will halt
the licensing of new commercial housing projects in the centre in three years'
time, according to the city's proposed Housing Development Programme for the
2012-20 period.
People's Committee
statistics showed real estate inventories in the city remained high with
5,789 apartments (totalling 566,000 sq.m).
The committee's
deputy chairman Nguyen Van Suu said the city was speeding up inventory
reduction by allowing properties to be converted into social housing or
structurally adjusted.
Many real estate
projects in
Main offenders
included a tourism project of the T&T Group in Tinh Gia District's Tan
Dan Commune, Bitexco's complex project in
The committee asked
the Department of Natural Resources and Environment to consider the
revocation plans for these projects in accordance with established
regulations unless the projects began implementation before September 20.-
Market
shows slight improvement
The property market
in
According to
Savills Viet
Total stock in the
city was about 1.2 million square metres from 146 buildings, up 10 per cent
over the first quarter and 22 per cent over last year.
Office renting
greatly increased in the quarter to nearly 41,000sq.m, with the leased area
of Grade A buildings in the west area continuing on a sharp upward take-up
trend to reach 9,600sq m.
With regards to
hotels, the average number of occupied rooms in the second quarter was 4,200,
a year-on year increase of 9 per cent.
Seven projects
supplying 1,300 hotel rooms were expected to enter the market this year and
Tu Liem District would provide the largest supply, with 70 per cent of future
projects set to be five-star hotels.
The serviced
apartment sector rose again in the second quarter, meaning the total number
of leased units has now increased for five consecutive quarters, reaching
2,600 and up 1.6 per cent year on year.
For apartment
sales, the number of projects selling raw-construction units had increased
because developers wanted to reduce the total price per unit to attract end
users, according to Savills.
The soft liquidity
of the villa market remained in the second quarter, with the average price of
this market having dropped 2 per cent, the lowest decrease in approximately
one year. However, significant challenges were facing villas in the coming
months as there was still a lack of proper infrastructure development
accompanying this kind of property.
A report from
Cushman&Wakefied showed that rental prices for grade-A office space in Ha
Noi remained stable for the second quarter, but grade-B offices saw a 2 per
cent drop quarter-on-quarter.
Jonathan Tizzard,
associate director of Cushman&Wakefield, said that high vacancy rates and
a large increase in new stock in the short-term indicated that pressure on
rental levels would increase.
The serviced
apartment sector retained high occupancy rates and even witnessed an increase
in rents during the second quarter. However, the oversupply of apartments in
the city would influence the serviced-apartment market as more of this stock
was converted. There are about 10,000 new apartment units in Ha Noi and low
absorption rates continue.
The real estate
market had been in decline in
According to a
report by CB Richard Ellis Viet Nam (CBRE), the retail space drew attention
of foreign investors.
Notably, Warburg
Pincus, a global private equity firm, said at the end of May that it would
buy around 20 per cent of the retail unit of Vingroup for US$200 million.
The Ministry of
Industry and Trade's Circular 08/2013/TT-BTM about the Economic Needs Test
would also create more confidence in foreign investors when entering the
Vingroup took the
lead in Ha Noi retail market with two huge projects, the
However, 17
projects would enter the retail market by the year end with a total area of
nearly 500,000sq m, creating huge pressure on the market while many existing
trade centres were in difficulty and halting operations for restructuring or
conversion to other uses, according to Savills.
The CBRE's report
also revealed the continued trend of price declines in property market till
the year end, saying that home-buyers remained cautious and still expected
further price falls.
Regarding the
Government's stimulus package, Do Thu Hang, head of Research and Consultancy
at Savills Ha Noi, said only a very limited number of developers and buyers had
been able to take advantage of the package of VND30 trillion ($1.43 billion)
since the application process was extremely difficult.
Savills Viet
"If this
governance is not improved, investments will go somewhere else like
Fee cut
drives up car imports
The General
Statistics Office (GSO) said the strong rebound shows that the import value
of CBU cars has been rising since earlier this year, fuelled by hopes of a
cut in new car registration fees.
Each month for the
first four months of this year saw nearly 3,000 CBU cars being imported, with
their value increasing sharply from $48 million in March to $50 million in
April and $66 million in May.
However, their
import value dropped to $55 million in June.
Meanwhile, from
earlier this month, the Ha Noi People's Council started to cut the
registration fees on new cars with fewer than 10 seats to 12 per cent.
Registration fees
for second-hand cars with fewer than 10 seats will remain at 2 per cent.
The current level
of 15 per cent was introduced at the beginning of April, down from the
previous fee of 20 per cent.
This move aims to
increase car sales in the city, helping car assemblers to recover from a loss
of revenue caused by falling sales.
Motorbike users
will pay a road-use fee of VND100,000 each year to the country's road maintenance
fund.
Responding to these
changes,
The Viet Nam
Automobile Manufacturer's Association (VAMA) reported that sales of locally
assembled cars in May rose by 11 per cent over April and 42 per cent over the
same month last year, totalling more than 9,700 units.
The association,
which is comprised of 18 leading domestic car assemblers, raised its estimate
of total car sales this year from 100,000 to 108,000.
Foreign
firms plan pulp factory
The news was made
known by deputy head of the Dung Quat Economic Zone Management Board Le Van
Dung, who was quoted by baodautu.vn as saying:
"The province
is fulfilling final administrative procedures to grant an investment
certificate to the joint-venture in the third quarter of this year."
The pulp factory,
to be located in the Dung Quat Economic Zone, would provide about 200,000
tonnes of pulp annually, he said.
Sojitz in
co-operation with
The soon-to-be
licensed project is expected to help the nation reduce its reliance on
imported pulp, as current pulp production in the country was far below demand.
The country's paper
pulp imports over the first half of this year were 691,000 tonnes with a
total value of $640 million, representing a 114 per cent year-on-year rise
over the same period last year.
The Viet Nam Paper
and Pulp Association's statistics revealed that domestic pulp production
reached 484,300 tonnes in 2012, an increase of 30 per cent over 2011.
However, the association's general secretary Vu Ngoc Bao said this only met
half of the demand.
Banks issue
low interest loans
Banks have begun to
lend to people on low incomes and Government workers from the VND30 trillion
($1.43 billion) stimulus package to buy homes.
According to the
Government's website, five people working for Government agencies in
They borrowed for
10 years to buy apartments measuring 60-69sq.m and priced at VND14.8 million
per square metre.
Banks in central
Nesthome 1 is Phu
My's first low-cost housing project in the country.
In Ha Noi,
Vietinbank and Viglacera have tied up for loans for buyers of apartments in
Viglacera developments like the Dang Xa New Urban Areas No 1 and No 2 in Gia
Lam District, and OCT Tenement No 2 in Tu Liem District.
Vietinbank has so
far lent to eight home-buyers.
An Dong Tenement
built by PG and Bac Son by Hai Phong Investment Development and Construction
JSC are the two projects in northern
According to the
Ministry of Construction, 30 investors are included on the list it has
forwarded to the State Bank of Viet Nam (SBV) and other commercial banks, as
being eligible for the loan. Only three are State-owned enterprises.
Several projects
that asked to be converted into social housing are also being evaluated, said
the ministry, adding that the list of those eligible would be submitted to
the SBV and commercial banks within two weeks.
The ministry said
that it would work with SBV to identify difficulties with procedures to speed
up the granting of loans from the support package.
1,300 taels
of gold left unsold at auction
For the first time
in the State Bank's last six gold auctions, 1,300 taels were left unsold
yesterday. The bank offered 26,000 taels (one tonne) of gold with 16 credit
institutions in attendance.
The bank set a
reserve price of VND37.35 million (US$1,778) per tael, up to VND350,000
($16.60) higher than the local market price. One institution left without
bidding; the other 15 bought 24,700 taels at between VND37.4-37.5 million
($1,781-1,785) a tael.
The gold price kept
falling from early morning yesterday, down by VND50,000($2.20) a tael
compared with the same time of the previous day. Saigon Jewelry Company gold
was listed at 37-37.42 million ($1,761-1,781).
After hitting
$1,300 per ounce (1,566.5 a tael) last night, the price fell to $1,276.5 per
ounce ($1,538.2 a tael) on the global Kitco.com trading floor, making the
gold price in
Since March 28, the
Central Bank has held 43 gold auctions, selling nearly 1.168 million taels
(about 45 tonnes).
Experts
forecast subdued economic progress
Vo Tri Thanh –
Deputy Director of the Central Institute for Economic Management (CIEM)
predicted that
He said that
collecting revenue for the State budget was also facing difficulties this
year due to the Government's tax exemptions and the large number of
businesses that have gone bankrupt, cut back or even halted production, while
bad debts held by the banking sector remained the biggest problem.
Some said that the
country's exports and industrial output have given several positive signals,
but Thanh said industrial production remained poor and unstable, pointing out
that the Purchasing Managers Index (PMI) for the production sector has
dropped rapidly.
The country's
exports in the second quarter of this year only rose by 16 per cent, which is
lower than the 20 per cent recorded in the first quarter.
According to other
commentators, the restructuring of the economy and banking sector along with
measures to encourage social investment and favourable tax policies are
likely to increase supply and put pressure on the consumer price index (CPI).
The country's
economy is still being affected by the global economic downturn, while bad
debt and outstanding debts in the construction industry have yet to be
resolved.
Many said that the
interest rate on loans is no longer a major concern, but businesses still
find it difficult to access loans from commercial banks due to stricter
administrative procedures.
Nguyen Ngoc Tuyen,
director of the Institute of Finance and Economics, stated that stockpiled
products in the remainder of this year may see a high increase and this could
prove damaging to the country's economic growth.
The majority of
economic analysts attending the seminar said that inflationary pressures on
economic growth remain high, but have lessened.
Many international
organisations have lowered their forecast of Viet Nam's inflation rate to
between 6-7 per cent this year against previous predictions of between 7-9
per cent
Do Thi Ngoc –
Deputy Director of the Price Statistics Department at the General Statistics
Office said that inflation was no longer a major concern this year, as it has
only risen by 2.4 per cent in the first six months of the year.
Ha Nam
strives to attract FDI
The northern
province of Ha Nam was targeting to attract 15-20 new foreign-invested
projects with a total registered capital of US$120 million by the year-end,
according to the provincial Department of Planning and Investment.
In the first half
of this year, the province welcomed 11 foreign-invested projects, capitalised
at $78.4 million. During the period, the foreign-invested sector posted $293
million in revenue, up 37 per cent year-on year, and created 15,600 jobs.
The latest
additions bring the total number of licensed foreign-invested projects in the
province to 77 with capital totalling $670 million. Of the sum, $512 million
or 76.5 per cent of the total registered capital has been implemented.
The department
deputy director Bui Hong Thanh attributed the good performance to increased
efforts by local authorities to attract foreign investors including a range
of investment promotions.
Thanh said the
number of licensed projects rose significantly over the years from five
projects worth $7.5 million from 2001-05 to 39 capitalised at $267.8 million
between 2006-10.
It was the
operations of foreign investors that helped us to advertise the investment
climate, Thanh said, adding that the province was striving to attract more
investors from Japan and South Korea.
In order to do so,
the province has established an investment promotion office in Hiroshima,
Japan.
Besides
participating in overseas trade promotion activities, provincial authorities
had also held talks with foreign investors to listen to their problems, and
then they made the necessary policy adjustments to facilitate their
operations in the province, Thanh said.
"The province
will continue to adopt more incentives to attract foreign-invested
enterprises and secure long-term investment," said chairman of the
provincial People's Committee Mai Tien Dung.
He was speaking at
a recent working session with representatives from over 70 foreign-invested
enterprises from nine countries and territories based in the locality.
Dung said the
province would concentrate on perfecting infrastructure in industrial zones,
training qualified workers and reforming administrative procedures.
During the event,
Daiken Murakami, director general of Showa Denko Co and chairman of the
Japanese Business Association in Viet Nam, appreciated the incentives the
province was offering to foreign investors and Japanese firms in particular.
He pledged to work
with local authorities in an effort to draw more Japanese businesses to the
province.
Japanese
investors find ASEAN attractive
Members of the
Association of Southeast Asian Nations (ASEAN) have succeeded in luring
Japanese businesses over the last two years by improving their investment
environments.
The statement was
made by Motonobu Sato, chairman of the Federation of Japanese Chambers of
Commerce and Industry in ASEAN.
Speaking at the 6th
dialogue between the Secretary General of ASEAN and the federation in Ha Noi
yesterday, Motonobu said the federation's membership had risen from 4,500
companies to nearly 5,700 since 2010.
It showed Japanese
companies' strong commitment to investing in ASEAN, he said, adding that
their business engagements are primarily in the automotive and auto-parts,
electronic and electrical appliances, chemicals, consumer products and
financial services sectors.
After the European
Union, Japan is the principal investor in ASEAN in terms of net inflow of
foreign direct investment (FDI). The latest statistics indicated that in
2011, Japan invested over US$15 billion in ASEAN, making up 17 per cent of
total FDI in the block.
Japanese
manufactures in ASEAN have steadily been increasing their local procurement
ratios either in their host country or from other ASEAN nations.
According to a
survey of Japanese Affiliate Firms in Asia and Oceania last year by Japan
External Trade Organisation (Jetro), 50 per cent of raw materials and parts
procurement that ASEAN-based Japanese manufacturers used came from ASEAN
countries.
Finished and
semi-finished products were exported to markets including Japan, ASEAN
countries, mainland China and Europe.
At this dialogue,
Japanese businesses made suggestions to the ASEAN Secretariat for 2014,
including the early elimination of non-tariff barriers/measures which were
recognised as bottlenecks for improving business competitiveness, as well as
the introduction of the "ASEAN Business Travel Card" scheme.
They also asked for
a co-ordinated tax and social security system to avoid double taxation and
duplicated social security payments, plus steady negotiations on the Regional
Comprehensive Economic Partnership aimed at developing a more
business-friendly framework.
At the talk, ASEAN
General Secretary Le Luong Minh said despite being hit by the global economic
slowdown, Japan was still the second biggest trade partner and FDI
contributor to ASEAN.
He said by
responding to Japanese companies' requests at previous dialogues, ASEAN had
made progress in simplifying customs procedures
Minh said the
dialogue was a good mechanism for assessing implementation of comprehensive
measures to realise the ASEAN Economic Community goal in 2015.
The Federation of
Japanese Chambers of Commerce and Industry in ASEAN was formed in 2008 to facilitate
mutual co-ordination and contribute to regional economic development, while
improving business environments for Japanese enterprises through dialogue
with the ASEAN Secretariat.
Domestic
brands walk tall in VN market
Made-in-Viet Nam
footwear is the first choice for a majority of Vietnamese customers,
according to the Viet Nam Leather and Footwear Association (LAFASO).
The association
says the finding comes from a recent survey that studied consumer behaviour
patterns in five major cities and provinces – Ha Noi, HCM City, Hai Phong,
Thanh Hoa and Binh Duong.
The survey was an
attempt to help enterprises keep abreast of market demand and develop
strategies for product design, pricing and distribution.
The survey showed
that almost two-thirds, or over 70 per cent, of the respondents would
purchase local shoes and sandals as their first choice.
The association
said the survey also highlighted the growth potential of the domestic
footwear market.
It found that about
65.9 per cent of the respondents spend less than an average of VND200,000
(approximately US$10) per month on footwear.
Twenty per cent of
the respondents said they were ready to spend VND500,000 (US$24) and the
remaining said they would pay even higher sums on their footwear per month on
average.
Industry insiders
said these figures indicate great growth potential since consumers appear
willing to spend significant sums on their footwear, and this expense would
only increase when incomes go up in the future.
Three well-known
Vietnamese shoe brands most favoured by respondents are Biti's, Thuong Dinh
and Vinagiay, the survey found.
Nguyen Thi Thanh
Xuan, deputy general secretary of LEFASO, said the survey results would help
domestic producers understand Vietnamese consumers better and develop suitable
production and marketing strategies.
Local firms can
also adjust their product designs to better meet consumer preferences, she
said.
The survey showed,
for instance, Vietnamese consumers bought their footwear at retail shops
(40.8 per cent), footwear centres (28.3 per cent) and enterprises'own stores
(18 per cent). Consumers make their choices based on reasonable prices,
quality assurance and convenience, Xuan said.
The survey findings
indicate that despite their limitations in production capacity, design and
distribution, domestic footwear makers have opportunities to expand their
market share in the coming years, she said.
Deputy general
director of the Binh Tien Consumer Goods Company Limited (Biti's), Nguyen Duy
Thanh, said footwear is a fashion product, so it is very important to keep
creating new products and designs, especially considering the fierce
competition from Chinese imports.
Each month, Biti's
needs to introduce at least 50 new shoe designs if the company is to survive,
Thanh said.
In addition to
improving product quality and designs, Biti's has also increased investment
in developing distribution networks and after-sales services, he said.
The company's
factory has an annual production capacity of 20 million pairs, 55 per cent of
which are sold in the domestic market via 60 major direct distribution
centres and 3,500 agents.
As a result, the
company has been able to increase its turnover by between 20 and 30 per cent
every year, Thanh said.
Xuan said
fashionable design was the Vietnamese footwear industry's weakest point.
This could be seen
in the fact that 59 per cent of those preferring to buy foreign shoes said
their choice was influenced by their design, she said.
To further expand
their market share, domestic shoemakers should pay more attention to
improving product designs and come up with effective sales strategies, Xuan
said.
Ha Noi
looks to improve business competitiveness
Ha Noi must improve
its investment, production and business environment to boost its provincial
competitiveness index (PCI), said Ha Noi People's Committee Vice Chairman
Nguyen Van Suu.
Suu made the remark
at a recent seminar on the city's dismal PCI ranking, which was 51st out of
63 provinces and cities last year, 15 places lower than its performance in
2011.
The rankings were
established in a survey by the Viet Nam Chamber of Commerce and Industry.
Among nine
categories in the PCI, Ha Noi was in the top group in terms of labour
training but it was bottom of the list in issues such as land access and
stability of land use.
The capital's Party
committee and People's Committee were forced into gathering all relevant
departments and agencies to figure out the reasons behind the disappointing
performance and propose ways to enhance the PCI.
Suu asked the
municipal units to further push administrative reforms with a focus on
administrative procedures and the implementation of a one-stop mechanism, to
remove difficulties for businesses.
Tran Huy Sang,
director of the Municipal Department of Home Affairs, said improving its PCI
ranking would help boost Ha Noi's socio-economic development.
The Ha Noi People's
Committee had previously issued a plan to boost PCI rankings in the period
2011-2015.
However, despite
its poor PCI showing, Ha Noi had recorded a 7.7 per cent economic growth rate
in the first six months of the year, a relatively high figure in the context
of economic hardship nationwide.
The PCI programme
has been a US Agency for International Development's Viet Nam Competitiveness
Initiative since 2005. All 63 provinces and cities have used the PCI to
devise their own economic policies and development strategies.
Phu Quoc to
join national power network by 2015
Phu Quoc Island
will be connected with the national electricity grid by an undersea cable
system by 2015.
The island
constantly faces a severe shortage of electricity since numerous tourism
projects are in progress, forcing it to rely on diesel generators and often
causing outages in many parts.
This has hindered
tourism development on the island, according to Huynh Quang Hung, deputy
chairman of the Phu Quoc District People's Committee, and the island is in
need of a stable power supply system, especially after the opening of the Phu
Quoc International Airport last December.
In 2007 the
Ministry of Industry and Trade commissioned Electricity of Viet Nam to lay a
110KV cable across the sea to Phu Quoc island from Ha Tien in Kien Giang
Province.
The Government has
instructed speedy disbursement of funds for the work, according to the
ministry.
Construction of the
55.8km, 31 MVA cable is expected to cost VND2.4 trillion (US$114 million) is
start early next year.
Prysmian Powerlink
SRL, the Italian contractor for the project, is currently fabricating the
cable.
Prysmian said it
would be the longest of its kind in Southeast Asia.
Hung said once laid
the cable would ensure stable power supply to the island, promote its
economic development, and reduce the use of diesel generators and, thus,
environmental pollution.
H1 cashew
exports increase in volume and value
Viet Nam hopes to
ship 95,000 tonnes of cashew in the second half of the year, bringing the
year's total to 210,000 tonnes, an increase of five per cent over last year,
according to the Viet Nam Cashew Association (Vinacas).
Speaking at a
conference held in HCM City last Saturday to review the industry's first-half
performance, Dang Hoang Giang, Vinacas general secretary, said some 115,000
tonnes of cashew worth US$716 million was exported in the first half of the
year.
This was a
year-on-year increase of 30.3 per cent in volume and 18.8 per cent in value,
he said.
However, the
average export price for the period was $6,185 per tonne, down 9.46 per cent
against the same period last year, he said.
The US remained the
biggest importer of Vietnamese cashew, followed by China, EU and Australia.
Giang said cashew
businesses have encountered many difficulties in the first half of the year,
including shrinking output and a shortage of working capital.
Cashew output last
year was just 264,810 tonnes, compared to 301,730 tonnes in the preceding
year. The output for this year would be even lower, he said.
For the second half
of the year, there are both positive and negative signs for the cashew
industry, he added.
Regarding the
negative aspects, Giang said the world economy had been recovering very
slowly from the prolonged slump.
In addition,
"India recently raised its import duties on cashew nut, causing
difficulties for Vietnamese exporters."
But the appreciation
of the US dollar against the Vietnamese dong and the stimulation packages
launched by big markets like the US, Japan and the EU to increase local
consumption were positive factors, he said.
Vinacas forecasts
that demand for cashew in the world market will increase from now to the end
of the year, given that many festivities take place during this period.
To meet its export
target, Viet Nam would need to import about 180,000 tonnes of raw cashew in
the remaining months of the year for processing, Giang said.
Domestic processing
companies imported 220,000 tonnes of raw cashew in the first half of the
year, up nearly 88.9 per cent from the same period last year, mostly from
Cambodia, Ivory Coast, Ghana, Nigeria, Guinea Bissau and Indonesia.
Nguyen Van Chieu,
Vinacas deputy chairman, said Viet Nam can currently process more than
800,000 tonnes of cashews a year, but local supply accounts for less than
half this capacity.
As a result, the
country had to import a large volume of raw cashew from other countries, he
said.
However,
representatives of enterprises have complained about the poor quality of
imported raw cashew, especially from Africa, saying they were mixed with
contaminants including cashew skins, rotten branches and cashew sprouts,
Vinacas chairman Nguyen Duc Thanh told the conference.
The country must
have regulations to control the quality of imported raw material, Thanh said.
The association had
agreed to establish a council to provide consultancy services on raw cashew
imports, he added.
Chieu said the
council would work to reduce and prevent risks involved in raw material
imports.
The results of a
two-year review on the use of machinery in processing cashew were also
presented at the meeting.
The report says
that overall, higher economic efficiency has been achieved through reduction
in costs and time, as well as improved product quality.
Cashew enterprises
should focus on improving their production technology even further in order
to ensure their sustainable development, the report says.
Source: VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
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Thứ Hai, 15 tháng 7, 2013
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