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BUSINESS IN BRIEF 18/7
PetroVietnam
divests on schedule
PetroVietnam,
the state arm for oil and gas development, has been consistent in its
portfolio restructuring strategy to withdraw from non-core business fields.
According
to chairman of the PetroVietnam’s board of members Phung Dinh Thuc, the group
will completely withdraw its investment from Ocean Bank by 2015.
Works
are also actively being done to merge the current PetroVietnam Finance
Corporation (PVFC) and Western Bank. Thuc said the new bank would be
consolidated after the merger and that PetroVietnam would also wind down its
investment down to less than 20 per cent in the new bank by 2015, according
to the restructuring strategy.
Thuc
stressed that according to the strategy of PetroVietnam to abandon non-core
fields, withdrawal from banks and financial institutions was an important
issue.
“We
have been strictly following the government’s requirements to focus on our
core fields an concentrate on our strengths,” Thuc said.
Speaking
about the merger of PVFC, a financial institution in which PetroVietnam holds
a 78 per cent stake, Thuc said that after being approved by the State Bank,
the two sides had set up a merger plan. The plan has been approved by the
government in principle and final work is being done with the aim to hold a
shareholders’ meeting at the end of July.
A
source from PetroVietnam Finance said that following the merger, the bank
would be renamed PVCombank and had total assets of more than VND100 trillion
($4.7 billion).
The
merged bank is expected to have charter capital of VND9 trillion ($432.7
million) or 900 million shares at par value of VND10,000 per share. This will
be the first ever merger between a finance company and a bank in
PVFC
currently has VND6 trillion ($288 million) in charter capital of which half
belongs to Western Bank. US-based Morgan Stanley is now PVFC’s foreign
strategic shareholder, holding 10 per cent of its charter capital.
After
the merger, PetroVietnam’s stake in PVFC will be reduced to 52 per cent, from
a current 78 per cent.
While
emphasising that the group’s withdrawal from the financial sector was making
good progress, Thuc stressed that the divestments in other areas, particularly
the real estate sector, were facing difficulties.
“While
the real estate sector remains in turmoil, restructuring projects in this
sector remain extremely complicated,’ Thuc said.
PetroVietnam
is currently restructuring its PetroVietnam Construction Joint Stock
Corporation (PVC), a subsidiary which invests in construction and real estate
projects. PVC alone has 15 subsidiaries and 13 associated companies.
In
2012, PetroVietnam decided to abandon the
In
line with the government’s restructuring of state companies following the
Vinashin scandal, the group has returned to its five core business fields,
including oil and gas exploration and exploitation, petrochemistry and oil
filtration, the gas industry, electricity industry, and high quality oil and
gas services.
WB
guarantees new
The
American bank JP Morgan and its affiliates have provided Masan Industrial, a
subsidiary of Masan Consumer- one of the leading Vietnamese FMCG companies, a
three-year loan facility of $175 million, according to its parent company,
the Masan Group.
The
proceeds will be used to refinance the existing $108 million loan and to
further invest in the Masan Group’s consumer-related businesses. The firm,
the largest private sector company in
Of the
new loan facility, $150 million is guaranteed by the Multilateral Investment
Guarantee Agency (MIGA), a World Bank member. MIGA only supports investments
that are developmentally sound and meet high social and environmental
standards.
MIGA
said late this June, it has issued a guarantee of $167.7 million (Gross
exposure) covering a non-shareholder loan by the
The
project will help
The
project’s expected development impacts include increased food security and
safety, job creation, significant tax revenues, and improved environmental
and social standards.
The
project will also benefit small and medium enterprises (SMEs), as the company
currently purchases raw fish sauce from 40 traders who in turn source from
over 100 producers.
The
project is in line with the World Bank Group’s strategy to support private
sector growth through IFC lending and MIGA guarantees. This is the largest
corporate finance loan MIGA has supported in respect to a private sector
company globally.
The
MIGA requirements for its investment guarantee focus on accountability,
including environmental and social safeguards; institutional integrity; and
information disclosure.
The
agency has so far guaranteed just six
As for
Masan
Consumer has created some of the country’s most recognised food brands, such
as Chin-su, Omachi,
The
World Bank has categorised Masan Consumer as a Category B project for MIGA
due to the limited number of specific environmental and social impacts. This
January,
According
to market analysts,
In the
first half of the year, 33,216 Vietnamese workers were sent abroad under
contracts signed by Vietnamese firms and other their foreign partners, up by
1.6% compared to the same period of 2012, according to the Department of
Overseas Labour (DOLAB) under the Ministry of Labour, Invalids and Social
Affairs (MOLISA).
Despite
2013 forecasts of economic downturn, traditional markets have opened their doors
for Vietnamese workers, says Dao Cong Hai, deputy chief of DOLAB.
In
addition, other markets, including
To
realize the set targets, DOLAB has increased the number of Vietnamese workers
in traditional markets, while at the same time looking for new markets.
In the
first quarter of this year, the department sent workers to
Language
barriers remain the biggest difficulty for Vietnamese labourers in accessing
markets that require high-quality workers.
MOLISA
has mapped out a project to support Vietnamese labourers working abroad under
contract.
Under
the project, each poor labourer from rural areas would be provided with VND3
million for vocational training, and VND3 million for foreign language
courses. They would also receive financial support to help cover other
expenses before they go abroad.
M&A
market boasts huge development potential
Despite
unpredictable ups and downs over the past five years, the Mergers and
Acquisitions (M&A) market in
The
value of M&A deals has strongly increased, particularly during the
2009-2011 period. The market saw 295 deals worth US$1.14 billion done in
2009, and 245 transactions valued at US$1.75 billion, conducted in 2010.
In
2011, a total of 266 M&A deals raised US$4.7 billion, in total value a
year-on-year increase of 135%.
Last
year, the M&A market was worth a total of US$4.95 billion from 157 deals,
a rise of 5.3%t in value compared to the previous year. Despite the decrease
in the number of deals, the large transactions helped keep the market value
at a stable level.
In
December 2012, Vietinbank, one of the leading State-owned commercial banks in
The
first six months of this year also saw various M&A deals, particularly an
impressive deal of the largest commercial property company in
Recently,
foreign investors showed their greater interest in
Nguyen
Quang Thuan, General Director of Stoxplus Financial Media Corporation,
predicts that the M&A market will be much more dynamic in property, food
and drink, cement, finance and banking.
“Our
database shows that there are presently 10 M&A food and drink deals in
the process of negotiation. Foreign investors, specifically Japanese
investors, will continue publicising new deals in the coming time,” says
Thuan.
Meanwhile
Robert Tran, CEO of Canada’s Robeny Consultancy Group in Asia and the US,
says the pharmaceutical industry, pet food and education will receive more
attention in the near future, adding that his company has received various
requests from American and Canadian small and medium-sized enterprises about
pharmaceutical factories in Vietnam.
This
August, the largest annual M&A forum in
It
will focus on the quality of investment connection activities in order to
create greater cooperation opportunities, says Dang Xuan Minh, the Deputy
Head of the forum’s organising board, when talking to Dau Tu (Vietnam
Investment Review) about the event.
This
forum will sum up M&A activities in the country over the past five years
and forecast the trend and opportunities in the coming years.
Attracting
German investors to HCM City
A
delegation led by Nguyen Thi Thu Ha, Vice Secretary of the HCM City Party’s
Committee has paid a three-day visit to
During
its meeting with
Ha
spoke highly of effective cooperation with
Ha
called upon businesses from
During
its stay in
Developing
wind power in Vietnam
However,
to fully exploit this endless source of energy, besides support policies,
investors will feel more at ease if there are complete pricing and trading
mechanisms.
According
to the International Energy Agency (IEA) and the World Bank,
Wind
turbines of the Bac Lieu wind power plant (photo:vietnamnet)
The
two organisations’ statistics show that 8.6% of
The
Ministry of Industry and Trade of Vietnam predicts that the country’s total
wind power capacity on land may reach 513,000MW, which is 200times more than
that of the current Son La hydroelectric power plant – the largest of its
kind in Southeast Asia – and 10 times more than that of the power sector’s
combined capacity.
In the
coastal areas and islands, total wind power capacity may reach 200,000MW.
In a
national power development masterplan to 2030, the government gives priority
to developing various sources of renewable energy, including raising the
ratio of wind power to total national power capacity to 4.5% by 2020 and 6%
by 2030.
Despite
the great potential, there are only about 20 wind power projects up and
running in the coastal and
Binh
Thuan, the national wind power leader, last year operated 20 turbine groups
for its wind power plant No1 in Binh Thanh district, with a total combined
capacity of 30MW.
In May
2013 the Bac Lieu wind power project completed the first phase, when 10 of
its turbine groups with a design capacity of 16MW were put into operation,
aiming to generate 56 million kWh/year.
Recently
Ninh Thuan province licensed the Cong Hai wind power project, which has 15
turbine groups with a design capacity of 37.5 MW and an investment
capitalisation of approximately VND900 billion.
Besides
domestic businesses, foreign companies have come to
Recently,
However,
the main obstacles to foreign investors include the high production cost of
such a project, time taken for investors to get back their investment
capital, and the lack of a competitive sale price.
Experts
calculate that the production cost for every kW would be US$2,250 if
A wind
power investor in Bac Lieu complains that a modern wind power plant offers
electricity at 10-12cents/kWh, while EVN is authorised by the government to
purchase wind power at just 7.8cents/kWh.
To run
the project effectively, this investor has asked the government and relevant
ministries to have a price subsidy policy and raise the average buying price.
However,
Tran Viet Ngai, chairman of the Vietnam Energy Association, has advised
investors to increase the use of local equipment and train local workers to
operate the plant, so as to lower production costs. According to his
calculations, investors will make a profit if the selling price is 7.8
cents/kWh.
The
Energy institute under the Ministry of Industry and Trade says to develop
this source of energy, the government should allow projects of this type to
enjoy existing credit preferences, import tax exemptions, and reduced
corporate income tax.
In
addition, the government should introduce an appropriate energy price policy
to encourage businesses investment in this field.
Local
firm to manage tallest building project in Myanmar
Located
near
It
will have 406 apartments including four penthouses and several facilities
like spa, a mini-theatre and a swimming pool.
Construction
on the palace is due for completion in late 2015.
Archetype
Group Ltd is a multi-disciplinary construction consultancy firm. It has
operations in
Penetrating
the Polish market
Since
Vietnamese
kiosks at trade centres in Poland
Nguyen
Duc Thanh, Vietnamese trade counsellor to
Meanwhile,
small and medium-sized enterprises, including foreign invested, still find it
difficult to penetrate this market, due to their inconsistent product
quality, substandard designs and patterns, and poor forwarding, delivery and
logistical services.
Thanh
reveals that Polish importers are conscious about the price of the products
and compare them with similar products from other countries.
In
addition,
The
trade counsellor, however, warns that Vietnamese businesses should keep their
eye on product quality if they want to gain a firm foothold on this market,
because Polish consumers are now more careful about imports.
To
penetrate deep into the Polish market, Thanh suggests businesses should
invest more in building and developing brands alongside market research,
trade promotions and post-sale services.
Top
priority is given to product quality, then prices, he says.
Obviously
commodities exported to
Polish
people also show interest in environmentally friendly products and the
control of hazardous substances contained in imports.
Thanh
says businesses should take advantage of the strong development of
associations of Vietnamese nationals, which now number 70.
The
Vietnamese Trade Office has worked closely with Vietnamese businesses that
run trade centres and showrooms in
This
offers reliable support for Vietnamese businesses tapping into a market of 40
million consumers, and a broader market of 300 million consumers, because
According
to the Ministry of Industry and Trade, Vietnamese exports to
RoK
businesses seek opportunities in central province
The
The
figures were released at a July 12 meeting in
Nghe
An enjoys advantages that range from land, minerals, and fisheries to
tourism, human resources, and investment incentives, As of June 2013, the
province has welcomed 36 foreign directed investment projects worth a total
approaching US$1.4 billion.
RoK
Ambassador to Vietnam Dae Joo noted Korean business investment has
traditionally limited itself to urban centres like
He
expressed his hope that with support from the central province, the Korean
Embassy, and the Korean Trade Promotion Agency (KOTRA), more Korean
businesses will invest in Nghe An in the future.
Nghe
An Provincial People’s Committee Chairman Nguyen Xuan Duong said the local
administration will complete its administrative reforms as soon as possible
and do its utmost to facilitate foreign investor success, particularly in
projects involving advanced technology.
The
meeting also saw the signing of agreements between the Nghe An People’s
Committee and KOTRA, the approval of Korean StrongPlus Elevator’s US$10
million project, and the authorisation of Korean Global Sourcing
International’s US$2.5 million garment export investment.
Domestic
shipping firms strive to weather hardships
Effectively
using advantages on local and short-distance international routes instead of
further hiking transport gross tonnage proves a proper direction to local
ship fleets.
“It
becomes harder and harder for Vietnam’s ship fleets to achieve dual important
targets it is obliged to reach by 2020: transporting 200-292 million tonnes
of cargos, representing 9-10 per cent of Vietnam’s total transport volume and
hiking import export transport market share to 25-30 per cent,” said
Portcoast Consultant Corporation (Portcoast)’s deputy general director Nguyen
Manh Ung.
Portcoast,
under the Vietnam Maritime Administration (VMA), was assigned to handle the
project on revising
According
to Portcoast, these dual targets could only be feasible once satisfying these
two conditions:
In
respect to international shipping, at the end of 2012 local fleets consisted
of 1,755 ships with the gross tonnage reaching 6.9 million
dead-weight-tonnage (DWT) only covered 12 per cent of the market share,
mainly operating on short routes (less than 2,000km).
On
local routes, particularly regarding container transport the market share of
local ship fleets had dropped constantly from 80.1 per cent in 2010 to 61.7
per cent in 2011 and 58.7 per cent in 2012.
“Vietnamese
ship fleet’s market share has sunk significantly amid fierce competition from
foreign rivals whereas a suitable roadmap and conditions are needed to
improve the situation,” said a Portcoast source.
According
to Portcoast, local shipping firms, submerged in losses, are not in a
position to both embrace restructuring and further invest to raise the ship
fleet’s gross tonnage to 8.4-9.6 million DWT by 2015 as regulated at the
prime ministerial Decision 1601/QD-TTg.
Chairman
of Vietnam Shipowners’ Association Vu Xuan Quynh assumed from now until 2015
shipping firms’ prime target was to restructure their ship fleets to boost
operational efficiency.
Accordingly,
ships to be sold on liquidation would cover 40 per cent of ships’ total gross
tonnage of which Vinalines alone would sell 1.4 million DWT. Critically, even
after selling 59 ships Vinalines still incurred VND8.640 trillion ($410
million) in accumulated losses.
Based
on shipping market latest forecast and treaties, Portcoast has proposed
alleviating the sector’s pressure through scaling down development indexes
relevant to Vietnam’s ship fleets’ import export goods’ transport market
share to 16.4-17 per cent by 2020 (3.84-4.39 per cent on long-distance
routes).
“In
the near term, Vietnam’s ship fleets should take advantages of local routes
and short-distance international routes with traditional goods, pursuing the
target of restructuring the ship fleets, then gradually hiking their
operational efficiency in later period,” said Ung.
Regulations
throttle engine plant
Truong
Hai Auto Corporation’s engine manufacturing plant, the first of its kind in
According
to a Quang Nam Provincial People’s Committee report sent to the government
last month, the Truong Hai engine factory “is facing difficulty” because it
“has not yet met the roadmap’s emission standards regulated by the prime
minister in 2011”.
According
to the Decision 49/2011/QD-TTg dated September 1, 2011 signed by Prime
Minister Nguyen Tan Dung, all cars and motorbikes manufactured in, or
imported to Vietnam have to meet Euro 4 emissions standards from January 1,
2017 instead of the current Euro 2 and 3 standards.
Truong
Hai broke ground on its engine factory in June 2012 with the total investment
capital of $182 million. As the country’s first automobile engine factory, it
is expected to increase the localisation ratio in
In
accordance with the Vietnamese government’s roadmap, Truong Hai will have to
stop manufacturing engines at Euro 2 and Euro 3 standards in January 2017.
Even if Truong Hai begins production in 2014 as scheduled, it will still only
be able to manufacture Euro 2 and Euro 3 engines for three years.
Critically,
the Quang Nam Provincial People’s Committee report stated that updating the
engines from Euro 2 to Euro 4 standards would not be easy for Truong Hai.
“In
addition, the changing to the manufacturing of Euro 4 engines over a short
period will be very costly,” said the report.
If
Truong Hai fails to upgrade the factory to one capable of manufacturing Euro
4 engines within next three years, the production at the plant will be forced
to cease.
In the
report, Quang
Previously,
Truong Hai obtained preferential incentives from the Vietnamese government as
it is considered a key national project. This means the investor could borrow
money, equal to 85 per cent of project’s total investment capital from the
Vietnam Development Bank with a preferential interest rate over 12 years.
Furthermore, Truong Hai will be backed by the government when borrowing
capital from foreign bankers. The company can also enjoy import and export
taxes of zero or the lowest possible levels in international agreements that
Growing
opportunities from car export
The
car sector strives to boost investment efficiency via export.
First
Mazda cars assembled at VinaMazda factory in central Quang
This
is the start of VinaMazda Company’s plan to export Mazda cars from
VinaMazda
is a member of Thaco, one of leading domestic automobile manufactures in
Around
300 Mazda cars were bound for export to these markets in 2013, jumping to
3,000 units by 2014 and 15,000 units by 2020.
A
half-month before that date, at Mazda Motor head office in Japan, Thaco’s
chairman Tran Ba Duong and Mazda Motor’s deputy chairman Seita Kanai inked a
contract under which VinaMazda will export Mazda cars from Vietnam to Laos
In
March 2011, VinaMazda was appointed as Mazda cars’ exclusive manufacturer,
assembler and supplier in
VinaMazda
factory in Chu Lai OEZ has received technology transfer from Mazda Motor for
manufacture and assembly of three Mazda car models in Vietnam- Mazda 2, Mazda
3 and Mazda CX-5- and entrusted to develop an expansive system with 20
showrooms and dealers across Vietnam.
This
is one of 15 manufacturing and assembling bases of Mazda globally.
“We
selected Laos as the first export market for made-in-Vietnam Mazda cars and
will consider bolstering VinaMazda’s export operation, preparing to make the
most of the tax breaks given to the auto sector under Vietnam’s integration
commitment with ASEAN region by 2018,” said Seita.
According
to Thaco’s chairman Tran Ba Duong, amid current hostile business climate
Mazda cars’ sales revenue constant growth in the recent years came on the
back of Mazda’s active support through rolling out new car models.
This
year, Mazda cars’ sales volume was forecast to be at least 3,000 units,
occupying 5.4 per cent of the market share and placing firth among
Vietnam-based auto manufacturers.
Export
of completely-built car units (CBUs) from Vietnam to neighbouring countries
along with spurring the development of auto supporting industry is regarded
as proper steps to balance auto sector’s foreign currency flows.
The
Ministry of Industry and Trade forecasts the demand for cars in Vietnam would
range from 800,000-900,000 units by 2025, hiking to 1.5-1.8 million by 2030.
Auto import value would amount to $12 billion by 2025, hiking to $21 billion
by 2030 respectively unless below-nine seat passenger cars and 50 per cent of
trucks and buses were made in Vietnam with localisation rate reaching 50 per
cent.
Even
in this best-case domestic production plan, the total automobile import value
by 2025 would come to $5 billion, increasing to $9 billion by 2030. Thereby,
investing in domestic production and striving for export as what Thaco is
doing with its products and some foreign brands like Mazda and Kia are
gaining special attention.
The
ASEAN region has emerged as one of global auto manufacturing bases. Most
global auto giants have placed production facilities there, including GM,
Ford, Toyota, Mitsubishi, Mazda, Isuzu, Honda and Nissan. However, only five
ASEAN member countries have engaged in auto assembly and manufacture, namely
Thailand, Indonesia, Malaysia, the Philippines and Vietnam.
Fujitsu
Vietnam opens new office in Haiphong
On
July 11, Fujitsu Vietnam Ltd officially opened its new office in northern
Haiphong port city in order to meet the increasing demands of the firm’s
customers in Vietnam.
Fujitsu
has its Vietnam headquarters in Hanoi and a branch office in Ho Chi Minh
City. The firm’s new office opening in VSIP Haiphong has shown the commitment
of Fujitsu Vietnam to constantly improve the customer service quality and
“shaping tomorrow” with Vietnam’s ICT industry.
“Setting
foot in Vietnam over 14 years ago, our top-of-mind goal is to make life
better through our best and highest quality technology products and
solutions. With this new opening office in Haphong, we are glad to be able to
contribute more to the development of one of the active and potential cities
in Vietnam, with our first initials to our partners in VSIP industrial park,”
said Matsuura Taro, general director of Fujitsu Vietnam.
“Haiphong
welcomes the presence of Fujitsu Vietnam Limited. The new office opening will
definitely open a long-term cooperation between one of the leading Japanese
ICT company in the Vietnamese market and the active, young, full of potential
Haiphong. We commit to have the full supports for Fujitsu Vietnam and we
trust that this cooperation will be lasting and fruitful,” said Jack Zhea XUI
, VSIP Haiphong’s Marketing and Customer Service manager.
Fujitsu
Vietnam said it would continue broadening customer base and networking not
only in Haiphong but also in other areas in Vietnam’s northern region.
Fujitsu
is the leading Japanese information and communication technology (ICT)
company offering a full range of technology products, solutions and services.
Over 170,000 Fujitsu people support customers in more than 100 countries. The
firm reported consolidated revenues of 4.5 trillion yen ($55 billion) for the
fiscal year ended March 31, 2011.
Power
security calls for new plan
The
government is about to adjust the national electricity development master
plan for the 2011-2020 period, as delayed implementation of the plan over the
past two years threatens the nation’s power security.
In a
document just released by the Government Office, seen by VIR, Deputy Prime
Minister Hoang Trung Hai ordered the Ministry of Industry and Trade (MoIT) to
“urgently complete the adjusted electricity master plan VII” to be submitted
for prime ministerial approval next year.
Hai
also asked MoIT to hire an experienced foreign consultant to advise on
amendments to the master plan VII.
The
electricity master plan VII, or the national electricity development master
plan for the 2011-2020 period, was released two years ago and comprised of
construction timelines for 86 power generation projects and the national
power transmission grid.
The
plan was designed to ensure national power security in the long term.
However, the implementation of this plan has been slow over the past two years,
raising great concerns over potential power shortages in the near future.
“The
construction of many power projects, particularly those in the south, have
been delayed, requiring additional supply from the north and central regions
to be sent to the south. This threatens the supply security of the national
power system,” Hai said in the Government Office’s document.
According
to the document, the government has taken numerous measures to push the
development of power projects in the south, including Vinh Tan 2, Duyen Hai 1
and Duyen Hai 2 power plants, and setting up transmission lines between
Pleiku – My Phuoc – Cau Bong, and Dak Nong – Phuong Long – Binh Long. But
these are not likely to be enough to ease the threat of power shortages.
“If no
more measures are implemented to increase the construction of power plants
and transmission lines, a severe power shortage is forecast in the south from
2014-2015,” Hai said.
According
to the electricity master plan VII, signed by Prime Minister Nguyen Tan Dung
on July 21, 2011, 46 out of 86 electricity generating projects were assigned
to state-owned companies, of which Electricity of Vietnam (EVN), PetroVietnam
and mining group Vinacomin are the investors of 40 projects.
Fourteen
projects were assigned to private domestic investors. Meanwhile, foreign
independent power producers, who are said to have stronger financial capital,
have few opportunities to engage in the plan, being assigned only eight
projects.
Just a
few months after the government released the master plan VII, state-owned
groups and corporations like EVN, PetroVietnam and Vinacomin complained that
they could not procure the necessary funds for all the power investment
projects.
From
now to 2015, EVN needs at least $25.3 billion for developing new power
generators and transmission projects and PetroVietnam needs $8 billion to
build five thermal power projects. Meanwhile, Vinacomin needs about $1.6
billion each year for investment in the sector.
Although
Vietnam’s economy is experiencing a downturn, power demand in the first half
of the year still rose 11 per cent year-on-year. The MoIT estimates power
demand will keep on rising from 11 per cent to 13 per cent next year,
burdening the existing power supply if new power generating plants fail to
meet construction schedules.
HCM
City to achieve public transportation target
Public
transportation will meet 15 percent of Ho Chi Minh City’s commuting demand by
2015 as targeted, according to the municipal Department of Transport.
The
current public transport system, mostly comprising buses, meets 10.53 percent
of residents’ demand, it was cited as saying in local reports on July 15.
Over
the last several years, the city has improved bus services to attract more
passengers. It has ensured better over sight of the operations of bus
companies, restructured several public transportation firms, reorganised bus
routes and promoted the use of bus services, the report said.
Among
the major improvements are the introduction of 53 buses running on compressed
natural gas (CNG), making them more environmentally friendly, and making 153
buses easily accessible for passengers with disabilities.
The
city is also drafting a plan to assemble 300 CNG buses under a 2012-15
project, the report said.
It
said the department will review the pilot programme to use smart cards
instead of tickets on bus routes 1 (Ben Thanh – Cho Lon Bus Station) and 27
(Ben Thanh -Au Co - An Suong Bus Station).
The
department will propose that the use of smart cards is expanded to al bus
routes in the city by the end of this year, and later, to all public
transport services.
Vinachem
celebrates healthy H1 profits
The
Vietnam National chemicals Group (Vinachem) reported profits of 1.787
trillion VND (85.1 million USD) in the first sixth months of the year, an increase
of 12.6 percent against the same period last year.
This
outcome was discussed at a recent conference to review the implementation of
tasks in H1/2013 and operations in H2.
According
to a general assessment, Vinachem’s industrial production continued to face a
number of difficulties and challenges during the period. However, efforts by
the industry along with good management by the group helped boost production
and business in the first half of this year and yielded some excellent
results.
In the
second quarter of 2013, the production value reached nearly 11.9 trillion VND
(566.4 million), turnover hit more than 12.3 trillion VND (588.62 million
USD) and profits recorded 937 billion VND (44.62 million USD).
For
the whole January-June period, the value of industrial production posted 21.2
trillion VND (1.01 billion USD), up by 6.7 percent over the same period last
year.
Vinachem’s
accumulated revenue was over 23.9 trillion VND (1.14 billion USD), up 6.3
percent year-on-year.
In the
past six months, the group’s members focused on stimulating the production
and consumption of products, keeping stocks at a reasonable level to ensure
the supply of essential commodities on the market.
Subsequently,
the group has seen its products sell more than during the same period of
2012, which has helped reduce stockpiles.
On the
basis of these results for H1/2013, Vinachem has set a target for Quarter 3
of 11.44 trillion VND (544.76 million USD) in the value of industrial output,
11.8 trillion VND (561.9 million USD) in turnover and 800 billion VND (38.1
million USD) in profits.
In
order to achieve these targets, Vinachem will focus on speeding up key
projects as well as restructuring itself to create the motivation for a
thorough development with stable profits, said Nguyen Anh Dung, President of
Vinachem’s management board.-
Wood
exports to hit annual target
Vietnam's
wood industry is expecting to reach this year's export target of 5.5 billion
USD, thanks to a recovery in exports of its wood products, experts have said.
The
Ministry of Industry and Trade said that the wood industry gained a
year-on-year increase of 12.5 percent, bringing the export value of this
industry to 2.46 billion USD for the first half of this year.
Traditional
markets such as the US , Japan and China also had a strong surge in export
values.
Dang
Quoc Hung, deputy chairman of the Handicraft and Wood Industry Association of
Ho Chi Minh City (HAWA), said that exports of Vietnamese wood products to the
US increased over the first half of this year, which signals a recovery.
The
industry expected that the export of wood products will continue to increase
in the second half of this year, Hung said. The export value of wood products
to the US is estimated to reach 1.7 billion USD for the year.
In the
second half of this year, Chinese demand for wood exports will surge due to
competitive pricing, he said. China will import 800 million USD of woodchips
from Vietnam this year.
The
ministry said that the export value for wood products is expected to increase
by 10-15 percent, which will reach its export target of 5.5 billion USD for
the year.
However,
Hung said, almost all of the wood processing businesses have faced higher
import prices for their materials, yet they could not increase their selling
price, so they must have huge losses or might be even forced to stop
production.
On the
other hand, large businesses have managed to keep up production because they
have modern equipment which reduces labour costs.
Companies
have said that the Government should support them with low interest rate
loans so that they can upgrade their equipment and technology and overcome
production difficulties. The Government should also not increase land rent to
allow businesses to focus on their capital and to make investments in
equipment and technology.
Trade
deficit forecast cut to 4bln USD
The
Ministry of Industry and Trade has slashed its forecast for the country's
2013 trade deficit down to 3-4 billion USD from 9 billion USD previously.
According
to a ministry report released last week, the country's export revenue in the
second half of the year will be roughly 68-69 billion USD, pushing total
export earnings for 2013 to nearly 129-130 billion USD - a 12.5-14 percent
gain on last year.
Import
value during the second half will reach roughly 70-71 billion USD, raising
the yearly figure to 132-133 billion USD, a 14.5-16 percent increase on the
previous.
Accordingly,
the trade deficit is expected to be nearly 3-4 billion USD, equal to 2.5-3
percent of the total export value.
Previously,
the ministry forecast the country's export revenue to reach 127 billion USD
this year, 1 billion USD higher than the Government target, while import
value was to be 136 billion USD.
The
trade deficit therefore would stand at roughly 9 billion USD, equal to 7
percent of the total export value, but still slightly below the Government's
8 percent target.
Export
value during the first half of the year rose 16.1 percent to 62.05 billion
USD in spite of price falls and trade barriers. Export growth was driven by
manufactured and processed goods including telephones and components,
computers and electronic devices.
The
country's trade deficit in the first half of the year was roughly 1.4 billion
USD, equal to 2.3 percent of the total export value.
Source:
VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
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Thứ Tư, 17 tháng 7, 2013
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