|
BUSINESS IN BRIEF 19/8
Local
firm wants to take over Nam Can Port
A
local company whose name is not yet revealed has expressed its desire to take
over
Located
on the left bank of the Cai Lon River in Ca Mau’s Nam Can District, Nam Can
Port was upgraded from a river port to a seaport in 1995 with total
investment of over VND111.6 billion. The units under the Ministry of Transport
were in charge of design, supervision and execution.
As per
the design,
In
late April 2006, at the request of Vinashin, the provincial government handed
over
The
current operator of the port is Nam Can Port Company under Vinalines. An
upgrade project worth over VND335 billion suggested by Nam Can Port Company
has been granted an investment certificate from the authority of Ca Mau
Economic Zone, but so far it has made little progress as the company is
facing financial distress.
A
leader of the Ca Mau Department of Planning and Investment told the Daily
that it was essential that
Early
this July, the leadership of Ca Mau asked the Prime Minister, the transport
ministry and Vinalines to consider transferring
A
province-based company has shown its interest in operating and investing in
Nam Can Port. When retrieving the right over
When
Rice
traders fret over extra conditions for export
Rice
exporters are feeling uneasy about the information that Decree 109 will be
amended with extra conditions for rice export, including the requirement for
a material zone.
Nguyen
Van Don, director of Viet Hung Co. Ltd., said he had voiced his opinion about
this requirement at a recent meeting with representatives of the Ministry of
Agriculture and Rural Development and the Ministry of Industry and Trade.
He
said the current conditions set by Decree 109 issued in 2011, requiring rice
traders to invest in infrastructure to get eligible for export, were
reasonable. However, it is very difficult for traders to shoulder the stage
of production, with both capital and expertise needed.
“Except
the material zone requirement, we have no problem with the other conditions
that will be added such as an annual export volume of over 10,000 tons in two
consecutive years,” said Don.
A
representative of Saigon Trading Group (Satra) expressed his concern over
additional conditions for rice export as rice traders are now struggling with
many problems.
“In
the context of difficult export, setting extra requirements for
infrastructure and material zone is even more difficult than granting rice
export licenses in 2012,” he said.
In
July, the Prime Minister requested the trade ministry to join hands with the
agriculture ministry and relevant agencies to consider amending Decree
109/2010/ND-CP on rice trading and export in a bid to link production with
processing.
The
above agencies are asked to pass a rice exporters planning in which traders
with material zones and those cooperating with farmers have the priority to
become major rice exporters, while those who are simply traders are
restricted for export. In addition, they have to draw up a roadmap to require
major rice exporters to develop material zones or form partnership with rice
farmers.
Expressway
toll collection right to be transferred in Dec
The
toll collection right over the HCMC-Trung Luong Expressway will be
transferred this December after a bidding round slated for November to select
a unit which will collect toll fees for five years, said a transport
official.
Speaking
to the Daily on Wednesday, Deputy Minister of Transport Nguyen Hong Truong said
that the bidding price would be announced on October at the latest, and an
official bidding round would be opened one month later.
Any
capable investor can join the bidding irrespective of local and foreign
organizations and individuals. Participating investors are required to have
bank guarantees.
There
have been two foreign investors eyeing the toll collection right of
HCMC-Trung Luong Expressway, according to Truong.
Responding
to a question why the collection right is only five years instead of 25 years
as planned before, Truong said that if the collection right was longer, the
bid price will be correspondingly higher, and it was not easy for investors
to mobilize enough capital. The term of 25 years as previously signed
includes the BOT Trung Luong-My Thuan section which has not been built, he
added.
Under
the scheme presented to the Ministry of Transport by the current operator Cuu
Long Corporation for Investment, Development and Project Management of
Infrastructure (CIPM), the transfer price is VND1.603 trillion, or nearly
US$80 million, for a five-year collection term. Besides, there will be three
phases of payment over a period of ten months.
Previously,
BIDV Expressway Development Company (BEDC) has purchased the collection right
of this expressway at over VND9.1 trillion to collect toll fees in 25 years.
However, due to difficulties in capital mobilization, BEDC has given it back.
Therefore, CIPM has been assigned to collect fees on behalf of the transport
ministry since February 25, 2012.
HCMC-Truong
Luong Expressway worth VND9.880 trillion has a total length of 62 kilometers,
with the expressway stretching 40 kilometers and linking roads accounting for
the rest.
Realty
developers asked to make reports frequently
Real
estate companies will have to frequently report on their project development
as well as their operations, or else they would be penalized, when a new rule
is applicable this October.
Circular
11/2013/TT-BXD requires realty firms to make reports on the basic information
of their projects and regularly provide updates on the progress in project
development until their projects are finished. They will also have to report
on their operations, including trading and capital mobilization.
Having
struggled with insufficient information about the property market, the
Ministry of Construction now takes a drastic measure with this circular in a
bid to force businesses to provide their data so as to make the market more
transparent.
Over
two years ago, the ministry planned to develop a set of indicators for the
property market to closely follow the trading of apartments, terraced houses
and land plots as well as properly leasing. However, the ministry so far
still has not gone ahead with its plan due to the lack of information.
At a
recent workshop, the HCMC Department of Construction said the lack of
information was one of the current problems in the property market.
For
the lack of database, there have been no accurate statistics on the number of
ongoing property projects, total office and commercial space as well as
property prices.
Although
property project owners and trading floors have been long asked to make
reports, there have been no sanctions forcing them to do so, said the
department.
Even
in certain cases when realty companies comply with this requirement, their
data is questionable.
The
problem would never be solved if management agencies did not receive reliable
data from enterprises, said Nguyen Van Duc, deputy director of Dat Lanh Real
Estate Company.
“Inaccurate
data constitute a misleading report, and as a result, the illness of the real
estate market will not be correctly diagnosed,” he said.
Citing
the inventory ratio as an example, he said many enterprises deliberately made
false reports so that others might think their projects sold well.
Under
the new rule, if owners of property projects did not make reports, failed to
submit their reports on time or provided inaccurate information, they would
receive warnings on the first offense.
They
would be named on the website of the construction ministry and the local
construction department and have to pay penalties. It remains to be seen
whether penalties will be heavy enough to force property firms to make
reports and if data reliability will improve.
Agifish
to double chartered capital
An
Giang Fisheries Import & Export Joint Stock Company (Agifish), one of
leading catfish processors in
The
move aims to help the enterprise raise working capital for its Tra fish
farming projects. Agifish, which is now capitalized at VND128.5 billion, will
issue over 12.8 million new shares to existing shareholders at VND12,000
each. The shares will be offered to shareholders at the 1:1 ratio.
According
to the enterprise’s prospectus, the enterprise aims to raise VND154.3 billion
after this issuance to invest in three fish farming areas in Can Tho City, An
Giang and Dong Thap provinces. Total investment for the three projects is
expected at VND169.5 billion.
As of
March, Agifish had 121 hectares under fish farming, of which water surface
was 79.5 hectares, meeting 40-50% of its material demand. The enterprise
expects to raise the ratio to 70% in the coming time to secure revenues of
VND3 trillion and after-tax profits of VND95 billion this year.
Last
year, Agifish obtained nearly VND2.7 billion in revenues and VND31 billion in
after-tax profits.
The
enterprise has announced August 15 as the record date for share issuance.
Time for buying right transfer will be from August 29 to September 20 while
registration time will be from August 29 to October 4.
The
reference price of AGF (stock code of Agifish) on the ex-dividend date is
VND23,500 each. The enterprise currently has three major shareholders, Hung
Vuong Corporation with a 51% stake, Pan Pacific Corporation with 20.2% stake
and State Capital Investment Corporation (SCIC) with nearly 8.2% stake.
SCIC
early this week announced to auction Agifish shares on its website. SCIC
offers over one million buying rights at the starting price of VND25,600
each, meaning that investors must spend at least VND37,600 to own an AGF
share.
Time
for registration and deposit will run till August 30.
Masan
Group achieved impressive growth in revenue and gross profit last quarter
thanks to the launch of new products and the increased capacity of its Nui
Phao project.
In the
second quarter,
Its
earnings before interest sums, taxes, depreciation and amortization (EBITDA)
amounted to VND660 billion, an increase of 3.7% over the same period last
year.
Masan
Consumer, a subsidiary of Masan Group, continued to make sizable investment
in the second quarter to promote brand building, with a focus on coffee
trading at Vinacafe Bien Hoa.
Vinacafe
Bien Hoa has introduced a new formula for Wake Up Saigon through a national
advertisement targeting middle-class consumers. In addition, the company has
launched a 2-in-1 instant coffee product named Phinn.
A new
factory of Vinacafe Bien Hoa has been opened in Long Thanh, raising the
capacity by 3,200 tons from 1,200 tons.
Masan
Consumer also invested in convenience food with an ambition of spurring its
share in the instant noodle market to some 30% by the end of this year.
Meanwhile,
the Nui Phao project of Masan Resources marked important milestones in the
second quarter. The project began to produce tungsten and copper ores meeting
international standards and sales revenue was recorded for the first time.
Recently,
the Nui Phao project has successfully produced sodium tungstate from deep
processing of tungsten ore.
A
sales guarantee contract has been signed between
H.C.
Starck holds a 49% stake in a joint venture running the Nui Phao project with
an aim of producing high value-added tungsten ores in
The
first half of 2013, according to Masan Group, was the period of major
investment with the development of new products, the initiatives for Masan
Consumer brand building and the operation expansion of Nui Phao Mine.
Devondale
dairy company officially enters local market
With
pure fresh milk products on offer,
Suzan
Douglas, general manager for marketing, innovation & special projects of
Devondale, said the firm’s dairy products have already been available in
Devondale
is a subsidiary of Murray Goulburn, a big dairy producer which turns out
around one third of total milk output volume in
The
Vietnamese market with a population of 90 million people consumes up to 1.2
billion liters of liquid milk annually while local supply only meets 22-25%,
forcing the country to resort to imports to make up for the shortfall, with
powder milk products representing as much as 96%, he reported.
Devondale
therefore is confident that it will be successful in the local market, citing
its survey indicating up to 70% of Vietnamese people highly appreciate
quality when shopping dairy products while local fresh milk demand is on the
rise.
Prices
of Devondale dairy products are pretty high, nearly doubling those of local
ones, with one 200 ml Devondale Smart Milk pack priced at VND13,000 and one
200 ml Devondale Full Cream VND12,000.
Devondale’s
products do not compete with domestic dairy brands but those coming from the
Business
assistance fund swells to over VND45 trillion
The
Fund for Business Assistance, Rearrangement and Development managed by State
Capital Investment Corporation (SCIC) currently has a balance of more than
VND45 trillion, a fourfold increase from September 2008, says a SCIC
newsletter.
Previously,
the fund balance was kept confidential, but experts expected it would be huge
and would provide a great help for State-owned enterprises to overcome their
difficulties and carry out restructuring.
The
Fund for Business Assistance, Rearrangement and Development has been
administered by SCIC since late 2008, when it was still called the Central
Fund for Business Assistance and Rearrangement.
Under
the regulations for management of the fund dated July 2012, the fund was
turned into the Fund for Business Assistance, Rearrangement and Development
for more efficient management of earnings from State stakes in companies,
including earnings from rearrangement of wholly State-owned enterprises. SCIC
is in charge of fund collection and spending and has to make periodic reports
to the finance ministry.
Regarding
off-budget funds, the State Audit of Vietnam in a report reveals the fund for
debt repayment had a balance of over VND35.6 trillion on December 31, 2011.
The fund of interest rate difference achieved a balance of some VND360
billion in 2010 and the sum collected in 2011 and 2012 (about VND466 billion)
is now deposited in banks.
Russian
aid for training Vietnamese officials under an agreement on converting debt
into aid as of end-2011 had reached US$12.32 million, or some VND256 billion.
The
social insurance fund in late 2011 had some VND183.5 trillion idle for
investment, and it has spent a total of VND180.9 trillion, up 31% against
2010.
However,
the State Audit of Vietnam says the social insurance fund does not have
specific plans for investment. In addition, the fund has shown signs of
violations when lending its idle money to a finance leasing company under
Vietnam Bank for Agriculture and Rural Development, leading to difficult debt
recovery and risking a loss of VND1.05 trillion as of end-2011.
Card
payments increase strongly
Payment
via bank cards has become a strong tendency in the country with transaction
value and card issuance volume shooting up recently, according to the central
bank’s Payment Department.
In the
second quarter, some 6.57 million transactions worth nearly VND27.9 trillion
were made via cards, up 33% and 57% against the same period of 2012. The
figures also moved up quarterly during the period.
These
transactions did not include international payments, transactions by cards
issued by overseas banks, money deposits, withdrawals or transfers of the
same sender and recipient and payment transactions between banks and
customers. Therefore, card transactions mentioned above were purely goods
trading.
Local
banks have seen issuance of both international and domestic payment cards
increase. As of the end of the second quarter, the nation had 54.9 million
domestic payment cards and nearly 5.3 million international payment cards. Of
this, there were 55.7 million debit cards, 2.1 million credit cards and 2.3 million
prepaid cards.
Although
both payment revenue and issuance volume have leapt, the growth is still
modest compared to the total number of cardholders. In the second quarter, a
transaction was made on one of every nine cards nationwide, while each card posted
up transaction value of less than VND500,000 in the second quarter.
The
reason is that although a lot of cards have been issued, many are inactive
and users mainly use cards for cash withdrawals from automated teller
machines (ATMs).
Statistics
of the central bank show that there were over 14,400 ATM and over 110,000
points-of-sale (POS) transactions nationwide by June 30. However, over 134
million transactions were made via ATMs with the total value of VND237
trillion while only 5.7 million transactions were made via POS terminals
worth over VND29.6 trillion.
Bui
Quang Tien, head of the Payment Department, said that although card issuance
volume has shot up, many cardholders have yet to use cards to pay for goods
and services. As a result, payment cards have yet to promote their roles
while there has been increasing pressure on maintaining operations and
injecting cash into ATMs.
As the
Government is building a non-cash economy, the central bank is studying
solutions to encourage payments via POS such as tax incentives for sales or
payment services via this channel. The nation is expected to have 250,000 POS
terminals by the end of 2015, Tien said.
Gold
auction frequency reduced
From
this week onwards, only two gold auctions will be organized each week instead
of three as in the past four months, says a notice the central bank sent to
gold bidders.
Gold
auctions will be held on Tuesdays and Thursdays. The central bank will
announce in advance the volume of gold to be auctioned and the maximum and
minimum amount each unit can buy.
This
notice is consistent with the statement made by the central bank after
stopping selling gold for banks to settle their gold contracts in early July.
A gold
bidder remarked the demand for the yellow metal among citizens was declining.
Thus, the reduced frequency of gold auctions does not affect gold reserves at
banks and companies.
Meanwhile,
the gap between local and global gold prices on Tuesday was narrower than
last weekend. With around two tons of gold supplied each week, it is expected
that the price gap will not widen.
At the
gold auction on Tuesday, the floor price was VND37.6 million per tael,
equivalent to the buying price quoted by gold trading companies. Most of the
participating units made their bids, said the above bidder.
Saigon
Jewelry Holding Co. (SJC) at 11 a.m. on Tuesday quoted the precious metal at
VND37.55 million for buying and VND37.95 million for selling, unchanged from
the preceding day. Meanwhile, gold in the
As
such, the local gold price on Tuesday was about VND3.8 million per tael
higher than the world price, versus over VND4.5 million last week.
Meanwhile,
the U.S. dollar on Tuesday was a little weaker.
After
hiking the greenback from VND21,100 to VND21,140 last weekend and early this
week, most banks on Tuesday quoted a slightly lower price. Each U.S. dollar
on Tuesday bought VND21,120-21,125, down VND15-20.
Meanwhile,
in the unofficial market, one U.S. dollar exchanged for VND21,220, just 0.4%
higher the price quoted by banks.
Falling
demand hits desktop computer firms
Desktop
computer trading and assembly companies have been forced to make business
changes to survive tough times in the context that market share of the
product has constantly plummeted in recent years.
A
recent report of market research firm IDC indicates local sales of desktop
computers have dropped by an average of between 15% and 30% in the last two
years. Demand has come from companies, offices and the educational sector,
especially the areas that are still making heavy investments in computer
education.
According
to Nguyen Duc Dien, public relations manager of Robo Technology Investment
and Development Joint Stock Company, his firm has suffered a sharp fall in
desktop computer sales volume in the last five years due to staggering
technological development and rising laptop and tablet computer demand.
The
desktop computer segment is also affected by import tax rate cuts soon to be
applicable in line with the country’s trade agreements.
The
Tax Policy Department under the Ministry of Finance has recently informed
The
local computer market has been scaled down and has been dominated by imported
products, prompting many enterprises in the industry either to go bust or to
switch businesses to trading or services activities.
At a
recent seminar in HCMC, Tran Thi Bich Ngoc, deputy director of the
Import-Export Department of the finance ministry, reported nearly half of
around 60 local electronic components and computer-assembling enterprises
were forced to shut down due to the import tax rate reductions. The tough
business conditions have forced a number of computer assembly firms to change
business strategies.
Dien
added that his firm was undergoing restructuring and was accelerating
information technology services instead of only focusing on assembling and
selling computer components like before. Specifically, Robo has coordinated
with Cisco to specialize in providing consulting services and solutions on
desktop virtualization to local enterprises.
Two
gas fields start operation
Vietnam
Oil and Gas Group (PVN) has begun to extract gas from Hai Thach and Moc Tinh,
two gas fields under the Bien Dong 1 project.
These
gas fields are available for extraction in 25 years with an output of 8.5
million cubic meters of gas and 25,000 barrels of condensate per day.
The
Bien Dong 1 project comprises two wellhead platforms named Moc Tinh 1 and Hai
Thach 1, each weighing nearly 10,000 tons, a processing platform with a
weight of nearly 21,000 tons and a condensate floating storage and offloading
(FSO) vessel, says a statement from PetroVietnam Gas Corporation (PV Gas) on
Tuesday.
Last
Wednesday, the first gas from Moc Tinh 1 wellhead platform safely flowed
through a 20-kilometer pipeline to the processing platform. Gas will be
transferred onshore via Nam Con Son pipeline under a gas distribution
contract with PV Gas.
Gas
extraction from Hai Thach and Moc Tinh helps ensure energy security for
An
expert in gas-fired power generation said that with Hai Thach and Moc Tinh
gas fields now in operation, gas-fired power plants in the nation’s south
would have more stable gas supply. The estimated gas volume of two billion
cubic meters per year is enough to feed three plants that are as large as
Nhon Trach 2.
Auto
assoc revises up sale forecast for 3rd time
The
Vietnam Automobile Manufacturers’ Association (VAMA) has revised up the auto
sales forecast for this year to between 110,000 and 112,000 units from
108,000 last week, the third time it has made an upward adjustment.
July’s
auto sales announced on Tuesday reached 9,360 units, rising by 23%
year-on-year. This is the fourth month in a row the sales volume has exceeded
that of last year’s same periods.
The
total auto volume sold in January-July increased by 18% to nearly 59,200
units, with car sales rising 25% on-year to over 23,800 units and truck sales
increasing 13% to 35,380 units.
Forecasts
have been continuously adjusted up in recent times.
Auto
sales of the domestic market were some 93,000 units last year, down 33% from
2011. Therefore, early this year VAMA forecast the year’s sales at around
100,000 units.
However,
with April’s sales results higher than forecast, VAMA predicted the auto
volume sold this year might hit some 103,000 units, or 3% higher than the
initial forecast.
The
month of May witnessed another robust sales figure, totaling 9,731 units, up
11% from the previous month and 42% from last year’s same period due to a
reduction in new auto registration fee on under-nine-seat cars. This upsurge
prompted the association to adjust the auto sales volume to 108,000 units.
According
to auto firms, growth of the auto market in the past months mainly results
from the Government’s development policy, especially the registration fee
reduction for car buyers.
The
sales volume is forecast to keep rising towards the year-end. Thus experts
said that VAMA might continue to make more changes in sales forecast.
Among
the automakers under the association’s umbrella, Ford
The
automaker’s sales in July rose by 46% from last year’s same period to 685
units, taking the total volume in the seven-month period to 4,100 units, up
102%.
According
to Ford
The
company sold as many as 790 Ford Ranger pickups in the seven-month period,
rising 251%, while the respective figures of Ford Transit, Ford Escape and
Ford Focus were 930 units and 178%, 433 units and 112%, and 761 units and
105%.
Investors
told to report on imported machinery
The
Prime Minister has issued a directive requiring investors to explain
technology and machinery they plan to import in dossiers applying for the
investment certificates.
Enterprises
will have to explain and make a list of machinery and equipment with their
basic parameters and technical specifications. Besides, such a list must be
approved by management agencies before the machinery can be imported.
This
regulation will be a mandatory requirement for projects submitted to the
authorities for licensing.
For
technology, machinery and equipment that are part of the engineering,
procurement and construction (EPC) contract, enterprises must make a separate
list with information about specifications, features, origins, years of
production, and their state of quality.
According
to the directive, enterprises are allowed to import only new machinery and
technology, and priority will be given to those of advanced technology,
suitable with approved investment projects, and are energy efficient and
friendly to the environment.
The
ministries of technology, investment, finance and industry have to work
closely together on monitoring the import of machinery, equipment and
technology as well as to regularly report on compliance of enterprises,
especially that of State corporations and groups.
There
have been many enterprises importing old, outdated and substandard machinery
and equipment, which does not meet business requirements, pushes up
production costs and pollutes the environment. This problem partly results
from the lax control of State agencies regarding the import of such products.
New
‘herbal’ rice introduced
Nghe
An Province-based Vinh Hoa Company has just launched what it terms as
“herbal” rice created from the VH1 rice strain which has high nutritional
value as tested by the National Institute of Nutrition.
The
Vinh Hoa purple rice has been successfully produced after a long time of
studying and cross-breeding rice strains, said Vinh Hoa Company’s director
Phan Van Hoa, who is also the inventor of the new product. He was speaking at
a seminar on Vietnamese rice values held by Sai Gon Tiep Thi newspaper and
Gao Restaurant in HCMC on Tuesday.
According
to testing results of the Quality Assurance and Testing Center 1 (Quates1)
and the National Institute of Food Hygiene Control, Vinh Hoa herbal rice
contains many nutrients not available in other types of ordinary rice.
This
rice variety has many micronutrients, vitamin A, B, lipid, calcium, iron,
cellulose and especially omega (6, 9) which can help prevent cancer. It is
rich in vegetable fat that does not contain cholesterol and is suitable for
those on a diet or with heart diseases.
Its
yield is as high as that of other varieties, Hoa said.
Farmed
in northern
After
farming rice in Nghe An Province, Vinh Hoa Company has also built a testing
model in the Mekong Delta
The
purple rice has been used at Gao Restaurant, which is also its distributor.
Local
shrimp exporters hope to win
The
Vietnam Competition Authority (VCA) is cooperating with the government’s
lawyers and the Vietnam Association of Seafood Exporters and Producers
(VASEP) to settle the
Pham
Huong Giang, Deputy Head of the VCA’s Trade Remedies Board, affirmed that the
government of
Vietnamese
businesses and relevant agencies are actively cooperating with the
She
noted that local firms have answered the US Department of Commerce (DOC)’s
inquiries on schedule and provided documents and evidence proving that they
do not receive any subsidy from the government.
According
to Giang, the DOC’s final decision on levying anti-subsidy duties on
Vietnamese shrimp does not truly and properly reflect the real situation in
She
said in its latest decision the Department lowers countervailing duties from
7.05% to 1.15% for Nha Trang Seaproduct Co, and from 6.07% to 4.52% for other
local exporters.
However,
she added, it maintains that Minh Qui Co, a subsidiary of Minh Phu Seafood
Corp, will be taxed 7.88%, higher than the rate stated in its preliminary
determination.
As a
point of fact,
Giang
also raised her concern over double taxation as Vietnamese shrimp businesses
are facing anti-dumping taxes ranging between 0.53% and 2.76%. This will
create obstacles to local shrimp exporters to the
The
DOC’s final decision will be submitted to the International Trade Commission
(ITC) for approval before being announced on September 26. If the ITC
certifies that US businesses suffer property losses due to the Vietnamese
government’s subsidy, the DOC will officially levy anti-subsidy duties on
October 3, 2013. Otherwise, the DOC’s lawsuit against imported shrimp from
Previously,
Vietnamese steel pipe exporters won the
Risks
from high interest rates
With
monthly interest rate reaching 3 per cent, investment advisory companies are
luring huge capital amounts from the community which prove highly risky
ventures since these monies are mostly poured into gold and forex trade but
not serving production or business activities.
Hanoi-based
Khai Thai Investment Advisory Company Limited was reported to offer customers
3 per cent per month interest rate, tantamount to 36 per cent per year, five
times more than current mobilising cap at local banks.
Similarly,
in the recent past Vipro Investment JSC, also based in
The
country is now home to several dozen investment advisory firms providing
entrusted investment services with similar interest rates to woo customers.
Usually,
these firms require their customers to deposit money at least three months
with a minimal amount of VND50 million ($2,380).
Such
firms were reported to lure several dozen billion
According
to the staff at Khai Thai and Vipro, the main source of incomes from
investment advisory firms like theirs comes from forex trading.
“The
investors can put their mind at ease with save investments at Khai
“Our
company has a regulation that the advisory staff shall bear 75 per cent of
the transaction order value if the orders entailed losses to investors, so
the investors should not be worried,” the staff added.
Financial
experts, however, assumed such investments were very risky. A typical example
for this was the case with Golden Hanoi Financial Investment Company
Limited’s southern branch in 2012. Accordingly, the branch denied paying back
money to its customers when entrusted investment terms ended.
According
to lawyer Truong Thanh Duc, chairman of Hanoi-based Basico law firm, the
profit rate of 36 per cent per year is unrealistic for common production and
business activities in current context. Besides, entrusted investment
services relevant to gold and forex trade is also unusual, impinged on the
law and the investors face losing their money at any time.
Senior
financial and banking expert Dr. Le Tham Duong said entrusted investments as
offered by such investment advisory firms were fraught with risks since this
form of investment did not exist in any current legal document (including the
Civil Code). Therefore, investors would be at disadvantages where disputes
occurred.
Many investors
eye GreenFeed
GreenFeed
Vietnam Joint Stock Company, a big producer of animal feed and targeting at
clean food chain, has received much attention from investors.
There
have been many local and foreign investors wanting to invest in GreenFeed
The
representative said that GreenFeed was appraised at US$145 million in late
2011 and achieved a strong growth rate of over 60% last year. One of the
strategic shareholders of GreenFeed is a Singaporean investor whose stake is
not revealed.
According
to GreenFeed, the firm may cooperate with one of the businesses to utilize
its strategy in the future. “Meanwhile, the issue of selling GreenFeed to a
partner as rumored is not what should be talked about right now,” the
representative said.
According
to another source, a large group specializing in food processing and animal
feed production of
GreenFeed
According
to experts in the food sector, such a path is what many big international
food groups have taken for a long time. This strategy, plus good business
results in recent times, has made GreenFeed catch the attention of investors.
GreenFeed
Vietnam Joint Stock Company established in 2003 in Long An Province as
mentioned on its website www.greenfeed.com.vn specializes in producing
animal, poultry and aquaculture feed. The company is one among the large
producers of such feed as well as other products. It has five plants based in
Long An, Dong Nai, Binh Dinh, Hung Yen provinces and
The
world of fast-food which is expanding in
Since
1997,
Lotteria
Vietnam's business development director Nguyen Thanh Tam said they suffered a
tough time when they were first established in 1998, and the growth rate only
picked up in 2010 and now, they are expecting over 40% annual growth rate.
Kao
Sieu Luc, Director of Asia Bakery and Confectionery, said they hope to
provide bread for McDonald's in
Marketer
Hoang Tung said
"Vietnamese
people have already become familiar with fast-food. This is both an advantage
and a challenge to McDonald's because competitors have already taken 90% of
the market share and many prime locations." Lotteria
A
report in 2012 by W&S Group, an online market research group in the Asia
Pacific region, with 272 people aged above 16, showed that young people come
to fast-food restaurant at least once every three months.
Over
47,000 workers sent aboard in seven months
According
to the Department of Overseas Labor, under the Ministry of Labor, Invalids
and Social Affairs, crucial markets such as
A
labor cooperation agreement between
Confectionery
enjoys a tasty growth rate against food rivals
Confectionery
production will see the highest growth in the food technology industry, Vu
Quang Hung, deputy head of the Ministry of Industry and Trade's Institute for
Industry and Strategy Policies, has said.
Speaking
at a conference discussing the development of the food technology sector by
2020 held in Ha Noi last week, Hung said the industry had a relatively high
growth rate of 17 per cent in the 2006-10 period.
The
food technology industry had become one of the most attractive sectors with a
strong growth rate and high consumption, he said.
The
sector's production value also showed high growth from VND6 trillion
(US$285.7 million) in 2005 to VND17 trillion ($809.5 million) in 2011.
Of the
total, confectionery production grew at 35 per cent, glutamate 10 per cent
and instant noodles 10 per cent.
Confectionery
was expected to expand a further 8 to 10 per cent annually from 2011 to 2014
and begin exporting by 2020.
He
added that the food technology industry was targeting an initial 14 per cent
export growth rate in 2020, rising to revenues of around $1 billion by 2030.
In
addition, he said, the food technology industry showed remarkable changes. In
2011, instant noodles accounted for 30 per cent of the total while it took
the lead in the sector in 2005, accounting for 40 per cent.
Confectionery
production achieved impressive growth from 20 per cent in 2005 to 40 per cent
in 2011.
The
number of confectionery businesses also rapidly increased from 182 in 2005 to
324 in 2011.
The
production was divided into three groups: imports accounting for 20 per cent,
businesses holding high proportion such as Kinh Do Group, Hai Ha
Confectionery Company and Bibica Joint Stock Company accounting for 42 per
cent, and other enterprises.
However,
he said confectionery consumption in
According
to the industry's development plan, it targetted to achieve high and
sustainable growth, improving product quality and diversification.
However,
he said, the sector's competitive ability was mainly in domestic market while
its exports were limited. For example, the glutamate export totalled only
$100 million last year, which was much lower than its potential.
He
said the sector should have a clear strategy for maximising local businesses'
global competitiveness, upgrading assembly technology and promoting the
reputation of its brands.
Deputy
Minister Ho Thi Kim Thoa said the sector's technology and human resource
quality was lower than other countries. The Government should be giving
incentive policies, trademark registrations, trade promotions and accurate
market data collection and analysis.
Thoa
said global economic fluctuations made ensuring food quality, safety, and
hygiene standards were reliably met all the more important.
Breaking
into lucrative Brazilian market
Businesses
are advised to penetrate deep into the Brazilian market when this largest
South American economy slashes taxes on numerous imports late this year.
However,
it later decided to cut import taxes on these products by 25%, and experts
say Vietnamese businesses cannot afford to let such a potentially lucrative
expansion opportunity slide idly by.
The
decision is expected to benefit Brazilian sectors like metallurgy, chemicals,
pharmaceuticals, machinery, vehicles, tyres and tubing, and construction
materials.
It
will also help contain inflation, reduce input costs, and improve
competitiveness.
Imports
are encouraged in
The
Vietnamese Trade Office in
Vietnamese
product prices are enticing compared to its international competitors,
prompting Brazilian businesses to seek to import and distribute the
products.
Two-way
trade turnover between
Despite
the impressive growth,
Vietnam
Customs says two-way trade turnover hit US$1.030 billion in the first half of
2013, up 31.2%, of which Vietnamese exports generated US$499.4 million, up
57.6%.
The
bilateral trade figure is expected to total US$2 billion by the end of 2013,
with US$1 billion in Vietnamese exports. If such impressive growth is
maintained, the trade value is predicted to rise to US$5 billion in the next
five years and to US$8 billion by 2020.
Businesses
are encouraged to boost trade promotions to capitalise this lucrative market.
This year the Vietnamese Trade Office in
A
number of garment and footwear businesses have participated in international
fairs and exhibitions in
The
office says businesses requiring further information and interested in
establishing trade relations with Brazilian partners can send emails to its
representatives, visit www.ecoviet.com.br for a list of reputable importers,
or consult the websites of the Vietnamese Ministry of Industry and Trade.
Source:
VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
|
Chủ Nhật, 18 tháng 8, 2013
Đăng ký:
Đăng Nhận xét (Atom)
Không có nhận xét nào:
Đăng nhận xét