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BUSINESS IN BRIEF 17/7
Pepper
exports soar but stocks left bare
The
country now has almost no pepper left for export for the second half of the
year, according to the Ministry of Agriculture and Rural Development.
For
the first six months of the year,
"I'm
amazed at the figure of 85,000 tonnes of exported pepper," said a
representative of an exporter in
The
Viet Nam Pepper Association (VPA) predicts that this year's pepper yield will
be 90,000-95,000 tonnes. About 60,000 ha are under cultivation.
The
VPA said from 10,000 to 15,000 tonnes of pepper imported from other countries
in the region would be used for re-export, thus bringing "the total
availability" of pepper eligible for export to 105,000-110,000 tonnes
this year.
Based
on these estimates of yield and export volume, local farmers now have about
10,000 tonnes of pepper in stock.
Meanwhile,
local pepper demand remains about 5,000 tonnes annually. With such demand,
the amount needed for export cannot be met.
According
to figures from the Ministry of Agriculture and Rural Development, pepper
exports in the first five months of this year reached 68,000 tonnes, bringing
home $446 million, a year-on-year increase of 14 per cent in volume and 9.6
per cent in turnover.
The
average pepper export price stood at $6,554 a tonne in the first five months,
shrinking more than 4 per cent year-on-year.
The
agriculture ministry's figures show that export volume surged despite price
falls in the last six months.
According
to Nguyen Quang Binh, director of the HCM City-based Chanh Tinh Anh Co. Ltd.,
the price of black pepper in the local market did not fluctuate as sharply as
the prices of other farm produce, such as coffee and rubber.
The
January-May export rice price, for example, averaged $445 a tonne, tumbling
7.7 per cent year-on-year, bringing down local paddy prices to only around
VND4,000 per kilo at times.
In
addition, the five-month average export price for rubber was $2,595 a tonne,
a decrease of more than 15 per cent over a year ago, with natural rubber
prices hovering around VND40-42 million a tonne.
In the
past few months, the price of black pepper ranged between VND110,000 and
VND130,000 per kg. On July 10, black pepper sold for VND115,000 per kilo in
Pleiku, VND118,000 per kilo in Binh Phuoc, and VND120,000 per kilo in Ba Ria
– Vung Tau.
"The
gap in prices of black pepper depends on the distance between the growing
areas and the processing centres, which are normally based around ports, such
as ports in
The
stability of pepper prices helped a small number of local farmers keep their
goods in stock, waiting for higher prices, said Binh.
Most
of the country's exports are semi-processed pepper. The VPA has encouraged
its members to invest in processing technology, turning low-priced black
pepper into high-priced white pepper.
However,
Binh said that farmers had other priorities.
"To
earn an additional $200 – $300 on one tonne of exported pepper by processing
black pepper into white pepper is not the long-term target of
Drop
in FDI
Speaking
to VTV last week, MPI Minister Bui Quang Vinh said Japanese investors now
have 7,000 projects in
"It's
easy to understand," Vinh said, adding that
"These
ASEAN countries also have better investment environment and more modern
administration," he said.
"In
addition, these two countries, compared to
However,
The
volume of FDI into
During
this period, the Government issued major investment incentives while
restrictions on project assessment and management were loosened.
With
the advantage of cheap labour costs at that time,
Vinh
said the current investment environment was quite different from that period.
As the
country's macro-economy developed to a certain level, the Government began to
license hi-tech projects that are environmentally safe, and launched high
value-added projects instead of investment projects.
Vinh
said that the country's investment environment could no longer maintain its
competitiveness on cheap labour costs as labourers' salaries risen along with
economic growth.
"Registered
capital has not been as high as the peak investment period, but disbursements
are much bigger. These are more economically effective, and they create more
jobs with higher salaries," said Vinh.
To better
manage FDI projects, MPI has learned from
When a
foreign investor is granted an investment certificate after entering
The
investment licence will be granted to an investor only when requirements on
facilities, technological and environment infrastructure are completed as the
investor has pledged under its commitments.
"These
formalities will help to reject fraudulent projects that were done for other
purposes, such as to misappropriate plots of land," said Vinh.
Further
questions asked of Metro sturgeon origin
After
a week of controversy, Ha Noi Market Watch will check with suppliers over the
origins of sturgeon being sold at the Metro supermarket, the authority's
deputy director Nguyen Cong San has said.
Questions
were raised about the sources of the sturgeon last week when Le Anh Duc,
chairman of the Viet Nam Sturgeon Group, denounced Metro supermarket for
selling what he claimed to be illegal fish.
He
said the supermarket chain in the north imported between 50-70 tonnes of
sturgeon every month, while production in this area was unlikely to exceed
30-40 tonnes. Duc also believed that in the official documents, Metro's
sturgeon was said to have come from the
On
Tuesday, market watch officials checked sturgeon at two Metro supermarkets,
in Hoang Mai and Tu Liem districts. Labelling said the fish had come from
According
to a Metro representative, the enterprises that supplied the fish were Seaprodex
Ha Noi/Hasimex Company and Hieu Ngan Food Company.
The
Viet Nam Sturgeon Corporation estimates that up to 15 tonnes of unauthorised
fish are brought into
The
latest incident marks the second time this year that a foreign invested
supermarket chain has been pulled up for alleged infringements. In April, the
Big C supermarket in Tu Liem District was found to be selling green grapes
from Ninh Thuan province, but with a Chinese flag on the label.
Further
questions asked of Metro sturgeon origin
After
a week of controversy, Ha Noi Market Watch will check with suppliers over the
origins of sturgeon being sold at the Metro supermarket, the authority's
deputy director Nguyen Cong San has said.
Questions
were raised about the sources of the sturgeon last week when Le Anh Duc,
chairman of the Viet Nam Sturgeon Group, denounced Metro supermarket for
selling what he claimed to be illegal fish.
He
said the supermarket chain in the north imported between 50-70 tonnes of
sturgeon every month, while production in this area was unlikely to exceed
30-40 tonnes. Duc also believed that in the official documents, Metro's
sturgeon was said to have come from the
On
Tuesday, market watch officials checked sturgeon at two Metro supermarkets,
in Hoang Mai and Tu Liem districts. Labelling said the fish had come from
According
to a Metro representative, the enterprises that supplied the fish were
Seaprodex Ha Noi/Hasimex Company and Hieu Ngan Food Company.
The
Viet Nam Sturgeon Corporation estimates that up to 15 tonnes of unauthorised
fish are brought into
The
latest incident marks the second time this year that a foreign invested
supermarket chain has been pulled up for alleged infringements. In April, the
Big C supermarket in Tu Liem District was found to be selling green grapes
from Ninh Thuan province, but with a Chinese flag on the label.
Crop
rotation key to southern agricultural success
The
southern region should switch from low-yield rice to higher-value cash crops,
participants said at a meeting held by the Ministry of Agriculture and Rural
Development in
The
country's rice farmers are facing declining sales and prices, and the switch
would help diversify crop cultivation and increase farmers' incomes.
Speaking
at the meeting, Le Quoc Doanh, head of the ministry's Plant Cultivation
Department, said the region has favourable conditions for planting corn and
soybeans. Imports of corn, soybeans and sesame crops could be significantly
reduced if the yield of these plants was high.
To
make animal feed,
Participants
said that profits from planting other cash crops were higher than that of
rice.
In
In
recent years, Dong Thap, along with other southern provinces, planted one
cash crop and two rice crops on the same field each year. The rotating cash
crops include corn, soybean or sesame.
The
model of rotating cash crops and rice crops on the same field yields higher
profits than the model of cultivating three rice crops a year, according to
the province's report.
Crop
rotation will also help replenish the soil and reduce disease outbreaks
compared to rice on the same field.
However,
many attendees at the meeting expressed their concerns about guaranteed
outlets for rotated crops.
A
representative from
If
outlets for cash crops cannot be guaranteed, farmers will face even more
difficulties than now, according to a representative from
Mai
Thanh Phung, deputy director of the National Agriculture Extension Centre,
said the switch to cash crops should be done on a large scale.
This
would help increase sales and promote the sustainable development of rotated
crops, he added.
He
said that planting must be tailored to each province's advantages, including
soil type and other factors.
"Rotation
priority must be given to short-term crops that have high competitiveness and
to those that can replace imported produce like corn, soybeans and
peanuts," he said.
Huynh
Minh Doan, deputy head of the Southwestern Regional Steering Committee, said
that crop rotation should be based on market demand and that farmers,
enterprises, scientists and the Government should work together to develop
plans.
Addressing
the meeting, Vu Van Tam, deputy minister of Agriculture and Rural
Development, urged the southern provinces to designate the areas suitable for
these crops and set out new plans.
Advanced
farming techniques should also be used, he said, adding that cooperation
between farmers and enterprises was important to guarantee sales outlets for
farmers.
With
sustainable sales, farmers will be able to continue to plant these crops year
after year.
Under
the ministry's plan, corn and soybeans are two main crops to be used for
rotation on rice fields.
C
Many
farmers in the Central Highlands, especially in
Consumers
in the south prefer Tay Nguyen litchis from Dak Lak, Dak Nong and Lam Dong
provinces as the fruits have a beautiful red color, juicy fragrant flesh, and
have a pleasant sweet-and-sour taste, according to traders.
Demand
for the fruit is especially high in Da Lat and
Nguyen
Duy Tien, who earns an average profit of VND400 million (US$19,000) a year
from his one-hectare orchard, is a native of the northern
Tien,
who lives in Dak Lak's Krong Pak District, moved to the province in 1981, but
did not start his litchi orchard until 1996.
He
planted 80 litchi trees taken from Hai Duong, and after three years they bore
fruit, but not much.
So
Tien began to learn more about planting techniques and decided to cut down
his one hectare of old coffee trees that were no longer yielding much fruit.
In
2003, he planted 235 litchi trees, and in 2006 the
Two
years later, Tien said, he began grafting several litchi varieties onto his
litchi trees. In 2011, he harvested 19 tonnes of litchis and earned revenue
of VND760 million ($36,200)
His
litchi trees are now harvested 30 days earlier than the litchis planted in
the north.
Like
Tien, other farmers in
Nguyen
Van Hoa in Ea Kar District has 600 litchi trees, earning annual revenue of
about VND1 billion.
Most
of the litchi farmers in Dak Lak are natives of
Nguyen
Nhat Le, director of the Dak Lak Agriculture Extension Centre, said many
other farmers had also cut down their old coffee trees to plant litchi.
"Many
of them have escaped poverty from planting litchi," he said, adding that
farmers in the
The
quality of Dak Lak's litchi is now as high as those from the north, according
to farmers.
Not
only do Dak Lak's litchi trees have a high yield, but the earlier harvest
season allows farmers to sell the fruit at a higher price.
Litchi
trees, which can live a long time, begin to bear fruit after three to five
years of planting, yielding 100-150kg of fruit a year from the sixth year.
PM
outlines aid distribution
Agro-forestry,
fisheries, rural development, healthcare and education are among the areas
prioritised for assistance from NGOs during the 2013-17 period.
Under
the national programme on mobilising assistance from NGOs issued by the Prime
Minister announced on Wednesday, priority will also be given to vocational
training, climate change, social and environmental issues and consequences of
the war and natural disasters.
The
aid will prioritise poor, mountainous and ethnic areas.
In
rural areas, the programme encourages projects that contribute to poverty
reduction in poor districts, socio-economic development for ethnic minority
people, vocational training, job generation and micro-finance programmes.
It
also encourages the development of agro-forestry programmes and small-scale
production infrastructure such as pumping stations, roads and irrigation
works.
In
urban areas, the programme priorities vocational training and job generation,
the development of small and medium sized businesses, HIV/AIDS, drug abuse
and prostitution.
The
programme is aimed at mobilising aid from NGOs and using it efficiently to
contribute to poverty reduction and socio-economic development in
Assistance
from NGOs needs to be used in line with the country's socio-economic
development plan and poverty reduction strategy.
Housing
package delays prompt City frustration
Members
of the HCM City People's Council have blamed the city government for not
making use of the VND30 trillion (US$1.4 billion) housing loan package as
housing remains a pressing issue in the country's most populated city.
"It
will be bad if the city cannot help more people and enterprises access the
package," Deputy Vo Van Sen said at a question session yesterday.
As of
yesterday, only 18 people and three property developers were doing the
paperwork to get the loan, according to figures from the construction
department.
At
least half of the developers currently building 3,000 public housing units
are eligible to borrow, adding that liquidating inventories would be the
priority, Tran Trong Tuan, deputy director of the department said.
"We
will apprise the State Bank of
Since
2006, the city has approved 25 public housing projects.
"Most
of [them] face a funds shortage issue," Tuan said.
Not
surprisingly only four projects have been completed while six are under
construction and ground will be broken soon for four others.
The
other 11, with 13,912 apartments, have made no progress and require at least
VND7.8 trillion ($371 million), according to the department.
The
city now has 14,490 apartments that have been completed or are under
construction remaining unsold.
He
hoped that 40 percent of them would be sold this year.
Some
14 percent were sold this year, he added.
Meanwhile,
unauthorised construction is on the rise in outlying districts, according to
Deputy Thi Thi Tuyet Nhung.
She
said at least 600 houses have been built illegally on agricultural land in
Binh Chanh District, a problem also seen in Cu Chi and Hoc Mon Districts.
In the
first six months of this year the department found 2,626 violations of
construction norms, mostly in Binh Chanh, Thu Duc, Binh Thanh, Binh Tan, and
9 districts.
Deputy
Huynh Cong Hung said most violators are medium- or low-income people with
real need for housing. More public housing should be built in the city, he
added.
Leading
economic zone faces imminent human resource shortage
Within
the next three years, the Vung Ang Economic Zone in the north central
province of Ha Tinh--among the five largest in the country--will need about
67,000 more employees, with only 12,000 working there as of now.
This
was announced by the Ministry of Labor, Invalids and Social Affairs and the
People’s Committee of Ha Tinh Province, at an online conference chaired by
Deputy Prime Minister Nguyen Thien Nhan in
The
conference was held to discuss future human resource training for the Vung
Ang Economic Zone.
According
to Nguyen Thien, Deputy Chairman of the provincial People’s Committee, 226
projects were licensed for Vung Ang EZ till June 30 this year.
Twenty
six of them, including four foreign invested projects, have come into full
operation. The remaining 28 projects, including 14 of foreign companies, are
under implementation.
According
to estimations made by the Ministry of Education and Training, the Ministry
of Labor, Invalids and Social Affairs and Ha Tinh Province, the Vung Ang EZ
will need at least 67,000 more employees by 2015.
Bui
Van Ga, Deputy Minister of Education and Training, said that three
universities in the north central region were tasked to train about 1,200
students for Vung Ang EZ in 2012. However, they were able to recruit only 14
students.
The
Ministry is continuing to seek the help of three schools to train another
1,200 students for the EZ this year.
However
Nguyen Dinh Toan, Deputy Minister of Construction, said that it will be very
difficult to attract students. This is because investors of the projects at
the IZ have neither ensured the recruitment of graduates nor specified the
salary grades.
Japan
leads in FDI projects in Vietnam
The Foreign
Investment Agency (FIA) under the Ministry of Planning and Investment, on
July 10, held a seminar to help Vietnamese businesses and their counterparts
from
Participants
paid attention to problems on tax policies, environment protection, export
and import, investment in processing zones, and wage control.
According
to Nguyen Ba Cuong, Deputy Director of FIA, the country has attracted more
than 15,000 FDI projects with total registered capital of more than US$218
billion until June 2013.
Price
of rice shoots up in Mekong Delta
Rice
prices have shot up suddenly by VND300-500 a kilogram in the last few days in
the Mekong Delta, as compared to prices at the end of June.
By the
afternoon of July 14, traders paid VND4,300-4,400 a kilogram for fresh normal
rice and VND4,600-4,700 a kilogram for fresh long grain type in Dong Thap,
Kien Giang and Long An Provinces.
According
to traders and rice export companies, the rice price hike is thanks to the
recent sunny weather, which facilitated timely harvest and better rice
quality. Besides, rice consumption has also risen.
The
Ministry of Agriculture and Rural Development informed that the Mekong Delta
is in peak harvest of the summer-autumn crop, which will complete by end of
August.
Local
farmers have also already sown about 300,000 hectares of autumn-winter rice
in the last few days.
Thousands
of workers go on strike in HCM City
More
than 1,000 workers from two companies in
The
strikes occurred on July 10 at Thuan Phuong Embroidering Garment Limited
Company in Binh Chanh District and Hoang Ngoc Truc Limited Company in Tan
Binh District.
Some
workers at the Hoang Ngoc Truc Company complained that since March any
workers who took leave to deal with private issues suffered from pay cuts
based on overtime wages instead of normal wages.
“Our
normal wage is VND11,000 (USD0.52) per hour but when we take off work we are
docked based on our overtime wage, which is from VND17,000-19,000
(USD0.80-USD0.90) per hour. Sometimes they even use the overtime hours we
already worked to reimburse for our off days. It’s really unfair,” one worker
said.
Another
worker said that any workers who need time off because of health or family
problems may have their pay level reduced.
“After
all kinds of pay cuts, our salaries are very modest. Many of us get paid the
same amount to work on weekends as on working days," she added.
Workers
at Thuan Phuong Company said many of them had worked 50-60 hours of overtime
over the course of a month, including at least two weekends, but were
disappointed by their meager paychecks when they came.
“In
June I worked 54 hours of overtime, including two weekends, but they paid me
for only 24 hours of overtime and did not include any weekends. When I
complained they said they used part of our salaries to pay for social
insurance fees for the remaining six months. I find that really suspicious,”
one worker said.
Even
though Hoang Ngoc Truc Company employees around 300 people, more than 200 of
them do not have labour contracts or social insurance policies.
“Many
people who have worked here for over two years have asked for labour
contracts but the company refused. Initially they pledged to pay us
VND300,000 (USD14.26) per month each for 'diligence'. At first they paid half
that, but now the payment has completely disappeared,” a worker said.
Another
worker said they have to request days off for the weekends. Anyone who takes
a three-day weekend is reported, adding that the company sets high
productivity targets and forces employees to work overtime, even on weekends,
to meet those quotas without proper pay.
Phan
Thi Lan, Chairwoman of District 6’s Labour Union, said Hoang Ngoc Truc
Company has headquarters in District 6 and has relocated their factory to
Binh Tan District.
“All
the company’s trade union officials have stopped working and we received
little support from the company during the relocation process,” Lan said.
The
company announced on July 10 that they would reconsider and return missing
payment for workers’ overtime hours by July 13 and would improve their
policies in the coming months, she added.
Real
estate bailout package little help to low-income earners
The
Ministry of Construction has announced a list of 30 projects and several
enterprises to benefit from the VND30-trillion (USD1.42 billion) real estate
stimulation package, but low income individuals are not yet among them.
As a
result, 30 projects to build social housing or change commercial housing into
social housing would get support. However, the ministry has yet to address
the difficulties faced by low income people in getting access to home loans.
Of the
projects, 15 registered for their loans before the government issued the real
estate bailout package, Resolution 02, and 12 registered after its issuance.
According
to the ministry, the package would provide support to enterprises of
different sectors without prioriotising state-owned enterprises.
“Among
selected projects, only four belong to state-owned enterprises,” the ministry
noted.
The
Bank for Investment and Development of Vietnam (BIDV) has agreed to lend
Vicoland Housing Development and Construction Group VND117.7 billion (USD5.6
million) to invest in a social housing project in Thua Thien – Hue Province.
The
bank has also decided to lend VND540 billion (USD25.67 million) to Hoang Quan
Real Estate Services, Trading and Consulting JSC for a project to change a
commercial housing project into social housing in HCM City.
Several
officials, including Deputy Minister of Construction, Nguyen Tran
Concerned
parties are speeding up the implementation of the package.
Gas
companies post good six-month results
Liquefied
petroleum gas (LPG) trading companies continued to achieve good business in
the second quarter, further consolidating their six-month performance.
According
to a just-released financial report of CNG Vietnam Joint Stock Company, the
firm obtained nearly VND250 billion in sales in the second quarter, growing
21% over the same period in 2012. It enjoyed more than VND37.6 billion in
after-tax profit, shrinking about VND800 million over the year-ago period.
CNG
attained total sales of roughly VND448 billion in the first six months of the
year, jumping 25% year-on-year and meeting 50.5% of the year’s plan. CNG
posted more than VND66.1 billion in after-tax profit, a slight pickup
compared to the same period in 2012.
Meanwhile,
other listed gas suppliers like PetroVietnam Gas Corporation (GAS),
PetroVietnam Southern Gas Joint Stock Company (PGS) and PetroVietnam Northern
Gas Joint Stock Company (PVG) have yet to release their financial reports for
the second quarter. However, they are all expected to fare well in the
period.
Nguyen
Si Thang, chairman of PetroVietnam Southern Gas Joint Stock Company, told the
Daily the six-month sales and profit of his company both beat the targets set
for 2013 but he declined to elaborate on the specific figures.
Thang
ascribed the good performance to the recovery of local consumption, with sale
volume marking a quarter-on-quarter increase in the second quarter.
Dunlopillo
opens first mattress showroom
Dunlopillo
Vietnam Co., Ltd on Thursday opened its first showroom in
With
investment of around VND2 billion, the 140 square meter showroom is located
in HCMC’s District 10 at 228-230 Ngo Gia Tu Street, a street specializing in
selling furniture.
Dunlopillo
merged with the Spanish producer of sleeping products Pikolin last year to
develop and expand its brand. Together with experience, resources and
technologies of Pikolin, Dunlopillo targets to become a big mattress retailer
in
According
to Thinaharan Muthusamy, managing director of Dunlopillo in
Products
from the plant are not only supplied for the domestic market but also
exported to the Middle East,
Smuggled
sugar poses threat to domestic industry
Sugar
inventories have amounted to hundreds of thousands of tons, but the domestic
market is still awash with smuggled sugar as relevant authorities have failed
to find out effective cures for the problem, heard an online meeting in Hanoi
on Wednesday.
At the
meeting “Removal of difficulties for Vietnamese sugar enterprises” organized
by Industry and Trade newspaper on Wednesday, an agriculture official said
sugar plants turned out a total of 1.51 million tons of sugar in the crop
2012-2013.
The
agriculture ministry forecast sugar oversupply at more than 300,000 tons in
the current crop, said Doan Xuan Hoa, deputy director of the Department of
Processing and Trade for Agro-Forestry-Fisheries Products and Salt Production
under the agriculture ministry.
Nguyen
Thanh Long, chairman of the Vietnam Sugarcane and Sugar Association (VSSA),
noted sugar inventories at VSSA member companies totaled up to 500,000 tons
as of June while total sugar volume smuggled into
How to
contain sugar smuggling is a big question to many people at the meeting.
Market
monitors have detained a combined 1,300 tons of sugar illicitly flown into
the nation since 2010, with 200 tons in 2010, 331 tons in 2011, some 700 tons
in 2012 and 362 tons detained in An Giang Province so far this year, said Do
Thanh Lam, deputy director of the Market Monitoring Department under the
Ministry of Industry and Trade.
This
amount as the tip of the huge iceberg indicates that smuggled sugar volume is
on the rise, Lam said.
There
are two types of the illicit trade, one via the country’s border areas and
the other as temporary imports for re-exports, said Nguyen Do Kim from the
General Department of Customs. But he said it is very difficult to deal with
these illegal practices.
Kim
said it is a tough job to fight the illegal activity as smugglers tend to
sneakily store commodities in warehouses along the country’s border areas
thanks to cooperation from their accomplices.
Timber
import from EU surges
The
import of wood materials from the European Union (EU) has increased strongly
in the past months although prices are higher than before, according to
importers.
Vo
Quang Ha, director of Dong Nai Province-based Tan Vinh Cuu Joint Stock
Company, said the volume of wood imported from EU countries has risen by
15-20% since the year’s beginning.
HCMC-based
Thien Thanh Phat Timber Company said that the firm’s wood import from the EU
has doubled year-on-year due to the increasing demand of wood processing and
exporting enterprises. Most wood processors have gained orders sufficient for
production in the next 6-12 months, making the demand for wood materials
higher than last year, he added.
Wood
processing and exporting enterprises said that EU countries had strict
regulations on legal origins of wood.
Most
wood materials from the EU are planted and exploited under Forest Stewardship
Council (FSC) standards. Therefore, wood materials of clear origins imported
from the EU will ensure the legality of
According
to the General Department of Customs,
Similarly,
the import from
In
addition, the prices of wood imported from the U.S., EU and Africa have
increased by an average of some 20% compared to 4-5 months ago due to a
recovery in the U.S. construction market and the low supply of wood in
Africa, said Huynh Van Hanh, vice chairman of the Handicraft and Wood
Industry Association of HCMC (Hawa). This may leave an impact on profit
targets of local wood processing and exporting enterprises.
HNX:
Foreign investors not fleeing bond market
The
Hanoi Stock Exchange (HNX), which manages the local government bond market,
has rejected rumors on the exodus of foreign investors from the bond market,
giving statistics to prove that they are still net buyers on the debt market
this year.
“Net
buying of foreigners in the first half this year was VND3.7 trillion,” said
Tran Anh Tuan, head of the bond department at HNX.
The
exchange’s statistics showed that the net purchases by foreigners on the
secondary bond market amounted to VND2 trillion in January, VND2.5 trillion
in March, VND3.7 trillion in April, and VND1.9 trillion in May. They were net
sellers only in February and June with VND0.7 trillion and VND5 trillion
respectively.
Tuan
said those were the just outright trading value and if counting repo trading
value, the total traded value would double.
In
contrast with the buying trend in the early months this year, foreign
investors in the past few weeks have sold government bonds. A source told the
Daily that in the first six days of July, foreign investors were net bonds
sellers with VND750 billion, while the most updated figures for the past
couple of days are not available.
“However,
statistics in the first ten days of this month showed that the (foreigners’)
trade caused no big change on the market as the average trading value on HNX
has remained normal,” said Tuan of HNX.
Trinh
Hoai Giang, deputy director of Hochiminh City Securities Co. (HSC), said
foreigners were net sellers in the past two weeks but that was just a normal
practice of locking in profits. Therefore, such a practice cannot constitute
a conclusion that it was an exodus from the market as seen in the crisis in
2008, he said.
Explaining
the foreigners’ current selling, Tuan said the government bond yield had
risen due to falling interest rates, most clearly on the two- and three-year
terms.
The
government bond supply is rising, but the money for bond investment was still
ample given banks’ low credit growth. Therefore, the high supply could not be
the reason for saying that there was an exodus from the bond market, he
added.
There
were 27 securities companies, 19 local banks and six foreign banks being
members on the HNX’s bond market as of May this year.
Transactions
by foreign investors have remained stable, making up around 30% of the
secondary bond market’s total trading value. Their total trade in the first
half this year amounted to more than VND100 trillion.
HSBC
warns
The
bank’s researchers in a new report on Asian economies expect the country GDP
growth this year would slightly increase to 5.1% from the level of 5% in
2012. The 5.1% level is lower than the country’s target of 5.5% set by the
Government early this year.
Weak
domestic demand reflected through low credit growth continues to hammer
economic activities. Major growth indicators, including HSBC manufacturing
PMI, consumer price index, and trade prints reflect sluggish domestic
activities, said the report published by the bank’s global research
department.
“The
second half of the year could determine whether
Exports,
especially manufactured goods of the foreign-invested sector, are supporting
the economy, contributing to final demand and employment growth. Electronics,
textile and garment manufacturing are expanding robustly while commodity
exports are being hit by weak global prices. This trend is forecast to
continue for the rest of the year, said the report.
Inflation
will be under the Government’s control given weak domestic demand and low
global commodity prices. HSBC expects this year’s consumer price index will
increase 5.9% compared to 8% last year.
However,
as revenue collection is decreased due to falling corporate tax, value added
tax especially import VAT, the Government can potentially raise the costs of
public services.
Aspect
Software and FPT IS announced strategic partnership
Aspect,
a leading provider of customer contact and Microsoft platform solutions,
today announced a partnership with Vietnamese information technology leader,
FPT Information System (FPT IS).
Under
the terms of the partnership, FPT IS will represent, market and implement
Aspect’s Interaction Management offerings in
As
“Through
Aspect’s partnership with FPT IS, businesses in Vietnam will benefit from the
best of ourleading Interaction Management solution that is delivered and
distributed by one of the country’s most trusted leaders in the information
technology sector,” said Jagannath Narendran, senior vice president, APAC and
Middle East, Aspect Software. “We treasure this relationship with FPT IS and
believe that their expertise in the financial sector, and their marketplace
knowledge, make them an excellent choice for Aspect’s Global Channel Partner
Program.”
As
more businesses in the region start to recognise the growing role of the
contact center as the center of the customer experience, there will continue
to be an increasing trend for businesses to invest in interaction management
platforms to optimise every interaction with their customers and foster
winning relationships.
“Customers
have always been our top priority, and our business ethos have always been
about selecting technologies to help the businesses of our clients reach new
levels of productivity,” said Cam Linh Vu, FPT IS Business Development
manager. “We recognised the strength and depth of Aspect’s brand and
technologies and believe that their Interaction Management solution will
enable us to further empower our clients with an interactive experience that
nurtures lasting loyalty.”
With
Aspect’s Customer Interaction Management solution, FPT IS will offer
businesses in
Mitsubishi
aircraft-part plan readies for take-off
Mitsubishi
Heavy Industries will increase the production of aircraft parts for Boeing
aeroplanes in
VIR
failed to contact with MHI Aerospace Vietnam Company, the wholly-owned of
Mitsubishi Heavy Industries in
According
to Japanese media, the new factory will produce components for the Boeing 777
jumbo jet that are currently made at the Mitsubishi Heavy Industries’ Nagoya
Aerospace Systems Works.
Mitsubishi
Heavy Industries built their first factory in
Mitsubishi
Heavy Industries presently has multiple large-scale projects under way in the
aerospace sector, including production of components for Boeing planes and
Mitsubishi Regional Jets.
The
company’s flap production in
With
the investment expansion of aircraft-part production in
At
present, Korean Aerospace Industries Ltd,
Source:
VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
|
Thứ Ba, 16 tháng 7, 2013
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