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BUSINESS IN BRIEF 20/8
Belgium
finances green growth in Vietnam
The
facility will promote green initiatives including energy efficiency,
transferring clean technology and managing waste and waste water.
Under
the agreement, a fund for green growth initiatives will be set up with the
Belgium "seed" money, then the Ministry of Planning and Investment
will be responsible for developing the fund by attracting local and
international donations.-
FLC
buy-out hastens Hanoi’s Alaska Garden City
FLC
Group has purchased Alaska Garden City Urban project on the western
outskirts of
Doan
Van Phuong, general director of Group, confirmed to VIR last week that Alaska
Land, the developer of Alaska Garden City urban area project, sold 99 per
cent of its stake, worth VND300 billion ($14.3 million) to the FLC Group.
Phuong said that the group planned to kick off the project in the fourth
quarter and expected to put into operation the VND3.5 trillion ($166.7
million) project covering on an area of 8 hectares in Dai Mo commune, Tu Liem
district in 2017.
According
to Phuong, the acquisition of the project would create a huge commercial
advantage for FLC due to the project’s ideal location on the western edge of
the capital, which is undergoing rapid urbanisation with many large-scale
projects such as the National Convention Centre, National Sports Centre,
shopping centres, supermarkets like Big C and a JW Marriott five-star hotel.
Alaska
Garden City will boast 300 villas, featuring a variety of housing options.
The apartments are located from the sixth floor of a tower complex that will
also include a shopping centre and offices. Besides the commercial houses,
the project has lower cost social housing with a 29-storey tower block.
Founded
in 2001, FLC’s first property project is
Forex
rates to remain stable
By the
end of 2013’s second quarter, foreign remittances going through
The
World Bank’s assessment revealed that the country’s foreign currency reserves
had doubled and lower inflation during the last two years had underpinned a
stable dong during the period.
Economist
Dinh The Hien assumed that with an annual inflation rate of 6-6.5 per cent,
the pressure on the exchange rate would be insignificant.
“The
exchange rate should remain on an even keel until the year’s end and the gap
between official and parallel market exchange rates should close,” Hien
predicted.
According
to international analysts, the State Bank’s devaluation of the dong by 1 per
cent against US dollars in late June did not reflect
“From
2011,
Similarly,
the dong-dollar exchange rate would be pegged at VND21,800 by the year-end,
according to a recent HSBC forecast.
The
average inter-bank dong-dollar exchange rate was set at VND21,036 on August
16.
“My
stance from early 2013 is that the exchange rate hike will be below 3 per
cent this year. The rate has risen by 1 per cent so far, so that from now
until the year’s end it may increase by another 1 per cent at most. The State
Bank is in a position to control the change,” said economist Tran Du Lich,
member of the National Financial and Monetary Policy Council.
According
to Korea Investment & Securities’ Emerging Markets Department director
Yun Hang Jin, the upward pressure on the exchange rate would continue until
the year-end, but growth would not exceed 1 per cent, entailing low profitability
for foreign exchange investments.
“Foreign
currency demand is highly unlikely to rise due to ample sources, and this has
led to depreciation in the dollar,” said Jin.
Viettel
seeks equal hi-tech incentives
Military-run
telecom group Viettel is seeking government approval for incentives for its
handset production like those enjoyed by foreign tech giants Samsung and
Nokia.
The
proposal calls for impartial treatment towards domestic and foreign
businesses to spur
According
to a Viettel source, despite reaping initial outcomes from telecom equipment
manufacture to feed the domestic market (like the launching of USB 3G V1000
or V6206 handsets), the group has still grappled with numerous hardships.
For
instance, Viettel bore high tariffs when importing materials and components
which could not be made in
“Most
of components and devices for mobile manufacture in
The
import duty of handset batteries is set at 20 per cent, that of vibration
motors 25 per cent and of micros at 15 per cent, for instance.
Tax
differences between whole-form imported handsets and imported devices for
domestic production have made it hard for Viettel products to compete with
similar items in the home market in pricing terms, Viettel claimed.
That
is one reason why, company officials said,
Apart
from imported handsets, local handset manufacturers also found it less
advantageous compared to foreign hi-tech firms on the same footing which are
operating in the Vietnamese market.
Top
global handset manufacturers
With
huge investments and the hi-tech factor, these firms have enjoyed generous
investment incentives that local firms producing the same items were not
given.
For
instance, Samsung Vietnam Electronics has enjoyed bigger tax incentives is
tax free when importing materials and accessories for handset manufacture in
In
this context, Viettel asked the prime minister to entrust the Ministry of
Finance for consideration of supportive policies to uphold fledging local
mobile manufacture in the initial stage.
Viettel
proposed import duty exemption in five years from 2013 to entire materials,
accessories and auxiliaries import serving research, design, assembly and
manufacture of handsets, irrespective of the fact they could be made in
Vietnam or not.
The
beneficiaries would be Viettel and its wholly-owned subsidiaries. Besides,
distributors shall enjoy preferential 10 per cent corporate income tax for
the income derived from selling handsets made or assembled by Viettel in the
domestic market.
Viettel
joint venture in
Movitel,
a joint venture between
The
award was presented on Thursday by market analyst Frost and Sullivan in
Frost
and Sullivan experts said Movitel was wise in paying attention to low-income
earners in
It has
expanded its network to bring services to all people through such programmes
as providing free internet connection for schools and reducing fees for phone
and internet users.-
A
memorandum of understanding on the job in hand was signed by the HCM City
Department of Information and Communications and the Vientiane Department of
Post and Telecommunications, during an ongoing visit by
The
Vice Chairman of HCM City People's Committee, Le Manh Ha, met on Tuesday with
the Secretary of the Vientiane Party Committee, along with Mayor Soukan
Mahalath.
Soukan
Mahalath praised
SeABank
and MobiFone sign co-operative agreement
The
Southeast Asia Commercial Joint Stock Bank (SeABank) and Viet Nam Mobile
Telecoms Services (MobiFone) have signed a partnership agreement.
It
aims to maximise the two sides' potential, enhance efficiency and increase
benefits for both their employees and customers.
This
agreement will open the way for closer cooperation, commitment and mutual
development between both parties.
MobiFone,
with many years of experience in the field of mobile communication services,
will provide advice and support to SeABank, the staff and customers at
SeABank when selecting products and services provided by Mobifone.-
FPT
IS promotes electronic tax and customs service
FPT IS
is offering free electronic tax and customs declaration services for the
first 500 enterprises that register to use the FPT.CA digital signature
service from August 12 to 25.
Customers
with a one-year package will get the digital signature service for free for
three months, as well as having FPT.eTax electronic tax declaration software
for free for a year and FPT.eCustoms electronic customs declaration software
for free for a year.
Customers
with two-year packages will get six months of FPT.CA, and a year of both
FPT.eTax and FPT.eCustoms at no extra charge. Customers with three-year
packages will be rewarded one Nokia 206 or Samsung C3312 mobile phone, a USB
token, nine months use of FPA.CA for free and a year's free use of FPT.eTax
and FPT.eCustoms.
Mining,
new products boost
Private
equity firm Masan (MSN) has announced second quarter profits thanks to the
launch of popular new products and its chemical Nui Phao Project.
The
group's net revenues surpassed VND2.7 trillion (US$127.3 million), up 8.4 per
cent year-on-year, while gross profits reached VND1.1 trillion ($51.8
million), rising 7.1 per cent thanks to growth from its food processing
subsidiary Masan Consumer.
Its
operating EBITDA (Earnings Before Interest, Taxes, Depreciation, and
Amortization) was up 3.7 per cent at VND660 billion ($31.1 million).
Masan
Consumer continued investing in building its brands, with significant focus
on its instant coffee business. It introduced a new formula for its Wake Up
Saigon brand and also launched Phinn, a 2-in-1 instant coffee.
It
expects to see its instant noodle share surge 30 per cent by the end of this
year.
In
addition, the Nui Phao project has achieved several key milestones in the
second quarter. It commenced production of tungsten and copper concentrate to
international specifications, and achieved its first product sales.
More
recently, Nui Phao has successfully produced sodium tungstate. Further
off-take contracts for tungsten, bismuth and fluorspar are already in place.
However,
the performance of one affiliate, Techcombank, was not as good as expected.
The challenging economic environment impacted the bank's results, as deposits
from customers grew 0.2 per cent while loans rose 2.2 per cent from December
2012 to June 2013.
Lower
interest rates and the tougher lending environment resulted in the second
quarter's net profit of VND194 billion ($9.1 million), down 57.6 per cent
from the corresponding period last year.
Shares
of the group, one of the largest blue chips on the HCM City Stock Exchange,
shed 0.6 per cent to VND87,500.
Ha
Noi stock exchange lists most transparent companies
The Ha
Noi Stock Exchange (HNX) yesterday honoured the 30 best listed companies in
terms of business transparency in an effort to evaluate corporate governance
over the 2012-13 period.
This
is the first time the exchange has attempted to assess the performance of its
listed members and it intends to carry this out annually to identify
businesses that deliver effective corporate governance.
This
year's theme was "transparency in the disclosure of information",
one of the five assessments that international organisations such as the
Organisation for Economic Co-operation and Development (OECD), the
International Finance Corporation and the World Bank strongly recommend.
In
terms of methodology, the HNX used OECD recommendations on corporate
governance to draw up the five criteria, including the rights of
shareholders, equal treatment for shareholders, the roles stakeholders play,
the disclosure of transparent information and the responsibilities shouldered
by managing boards.
Out of
these five, the disclosure of transparent information recorded the highest
average score. The rights of shareholders and equal treatment for
shareholders had the second highest score.
Business
efficiency and the liquidity of stocks are closely related to the level of
transparency and the ability to manage a listed company, said the HNX.
"Therefore,
this year's theme will help businesses to improve their awareness of the
importance of providing transparent information, which is a very important
component of corporate governance," it stressed.
So
far, the exchange has held several seminars on corporate governance, taken
listed firms on overseas trips to learn from other businesses and set up a
special information management system called the CIMS.
HNX's
top 30 listed companies for transparency:
1.
Asia Commercial Bank (ACB)
2. Bim
Son Cement (BCC)
3. Bao
Viet Securities (BVS)
4.
Dabaco Group (DBC)
5. Ha
Giang Mineral and Mechanics (HGM)
6. Hai
Minh Corporation (HMH)
7. Kim
Long Securities (KLS)
8. Kon
Tum Sugar (KTS)
9. Lam
Thao Fertilizers and Chemicals (LAS)
10.
Lam Dong Pharmaceuticals (LDP)
11.
Tien Phong Plastic (NTP)
13.
Phuong Dong Petroleum Tourism (PDC)
14.
PetroVietnam Southern Gas (PGS)
15.
Petrolimex Petrochemical (PLC)
16.
Portserco Company (PRC)
17.
Post and Telecommunication Insurance (PTI)
18.
Drilling Mud Corporation (PVC)
19.
PVI Holding (PVI)
20.
Petrovietnam Technical Services (PVS)
21.
Safoco Foodstuff (SAF)
22.
23.
Phuong Nam Education Investment And Development (SED)
24.
Sai Gon – Ha Noi Bank (SHB)
25.
26.
Tran Anh Digital World (TAG)
27.
Power Engineering Consulting 4 (TV4)
28.
29.
Vicostone Company (VCS)
30.
Steady
growth witnessed in VN -
This
made it the fourth largest investor in
As of
July, there were 3,385 South Korean investment projects worth $25.7 billion
operating in the country.
The
ministry said most of the major corporate groups from
Some
of these investors plan to expand their investments in the country, it said.
In
terms of trade relations,
Since
2007, when the free trade agreement between the two countries took effect,
According
to the Viet Nam General Department of
Many
key exports saw high growth, including crude oil with $432 million, up by
more than 150 per cent over the same period last year.
This
was followed by computers, electronic products and spare parts with $149
million, up 128 per cent year-on-year.
Next
came cassava and cassava products ($45 million, up by 67 per cent), garments
($545 million, up 42 per cent).
Other
products like vegetable and fruits, timber, footwear, bags and pepper have
also recorded high export growth rates.
Officials
and businesses hope the trade between the two countries will further develop
as consumption habits in
Last
year,
Seafood
is also another product with high export potential to
The
Viet Nam Association of Seafood Exporter and Processors said shipments of tra
fish to
To
increase seafood exports to
DIV
deal guarantees security for deposits
Prime
Minister Nguyen Tan Dung has signed a decision to set up the Deposit
Insurance of Viet Nam (DIV) in a bid to provide security to depositors.
The
decision will see the implementation of a deposit insurance policy to ensure
the stability of
DIV, a
state non-profit financial institution, will have a charter capital of VND5
trillion (US$238 million) funded by the State Budget. DIV's activities will
also be tax-exempt under the provisions.
DIV
will provide development strategy for deposit insurance and provide
submissions to the central bank and the Prime Minister for approval.
The
company will also participate in management and disposal of assets and the
recovery of insurance payable by institutions.
The PM
also approved the charter and operation of DIV, which provides the chairman
of the board of directors will act as the company's legal representative.
The
board will have up to seven members, including a chairman appointed by the
PM. Remaining members will be appointed by the Governor of the State Bank of
Vietnamese
businesses must ensure the health and safety of their products as well as
quality if they intend to penetrate the German market and expand throughout
the country.
According
to
German
consumers are extremely particularly keen about quality and the safety of
food, said the trade counselling organisation.
With a
population of 82 million and many high income earners,
The
counsellor said that taking part in trade fairs also helps
Statistics
showed that in the first six months of this year, bilateral trade between the
two countries hit US$3.695 billion, representing an increase of 29.51 per
cent year-on-year.
Of
this, $2.352 billion came from
Computers
and electronic products exports to
Garments
and textile products, coffee and footwear also experienced strong growth with
rates of around 10 per cent.
Last
year, bilateral trade was reported at $6.47 billion, an increase of 16.3 per
cent over 2011.
The
potential for trade between the two countries is expected to reach a much
larger figure, however the trade counsellor added that exporters should
carefully study tax policies, customs procedures and quotas.
H1
tax arrears surged 32 per cent due to economic hardship
Tax
arrears in the first half of the year surged 32 per cent against the end of
last year to VND64.63 trillion (US$3 billion), according to the General
Department of Taxation.
The
department said that the number was high compared with previous years,
stressing the economic hardship and restricted inspections were behind the
situation.
Some
cities and provinces with high tax arrears were Central Highlands Dak Nong
(up 152 per cent), southern An Giang (up 132 per cent), Binh Duong (up 116
per cent) and Ba Ria-Vung Tau (up 83 per cent).
Many
cities and provinces failed to meet the tax collection plans, of which 22
posted a very low ratio of below 45 per cent.
Due to
the economic hardship, many automobile manufacturers asked the Government for
tax payment extensions totalling trillions of dong in the first half of the
year.
Truong
Hai, for example, asked for VND1.2 trillion ($55.81 million) of tax arrear
extensions, saying that it owed banks of roughly VND6.5 trillion and had
products worth roughly VND3.3 trillion ($153.48 million) unsold.
The
department also attributed the low tax collection to the rising number of tax
frauds. Tax agencies in H1 met only 25 per cent of the inspection plans set
for this year.
During
the period, tax agencies conducted examinations and inspections in 18,198
companies, up 6.1 per cent year-on-year and the tax collection increase via
examinations and inspections reached nearly VND3.18 trillion ($147.9
million).
To
deal with the tax frauds, the department said that it would set up steering
committees in several cities and provinces to enhance the supervision and
inspection to fight the frauds.
Bank
card count reached 60.15m by end of June: SBV
The
number of bank cards issued in
The
department said that roughly 3.05 million new cards were issued in Q2 alone,
up compared with the first quarter when 2.81 million new cards were issued.
Total
trading volume via cards in Q2 reached VND27.89 trillion (US$1.297 billion)
with 6.57 million transactions, up 17 and 60 per cent against the same period
last year.
Of the
total, there were 54.89 million domestic cards, accounting for 91.25 per cent
of the plastic used in the country.
They
included 55.75 million debit cards, 2.09 million credit cards and nearly 2.31
million prepaid cards.
At the
end of June, the country had 14,410 ATMs and over 111,000 points of sale.
However, millions of bank accounts are mainly used to withdraw cash rather
than make payments via cards and banking facilities.
This
is due to the fact that most businesses do not encourage the use of cards for
payment.
In
many supermarkets and shopping centres, customers who use cards for payment
are not entitled to discounts and other sales promotions, so they often
withdraw cash from ATMs before a trip to the market.
To
accelerate non-cash payments, experts emphasised the important role of
relevant ministries and agencies. For example, the Ministry of Industry and
Trade regulates that all shopping centres and restaurants should have the
facility to accept payment via bank cards, and the Ministry of Finance should
issue a tax reduction policy to encourage their use.
The
central bank is also drafting a decree under which individuals will not be
allowed to pay for securities, houses, land and vehicles including cars and
motorcycles using cash.
Organisations
will not be permitted to use cash for transactions in real estate,
securities, aircraft, ships or cars, regardless of the value. There will also
be a limit on the amount that individuals and organisations can be paid in
cash.
Regulation
hampers import firms
Deputy
PM Hoang Trung Hai asked relevant agencies to tighten the management of
temporary imports for re-export to prevent smuggling and trade fraud at a
conference yesterday.
The
conference was held in the
According
to the Ministry of Industry and Trade, shortcomings still remained.
The
ministry cited complaints from many enterprises that said the duration of
temporarily-imported products for re-export were allowed in the country was
too short, just only 45 days.
This
short duration posed risks because when customers delayed orders past the 45
days permitted, the goods were confiscated, the ministry said.
Deputy
Director of the General Department of Customs Vu Ngoc Anh also said that it
was not easy to return temporarily-imported products which were stuck in
According
to Hai, policies should be flexible and create advantageous condition for
temporary imports for re-export which was a common international trade
practice, while measures to prevent smuggling and trade fraud must be enforced.
He
said that an extension to the permitted duration should be considered, but
transferring or splitting containers into smaller units would still be
banned.
Enterprises
which violated the rules should have their licences permanently revoked, Hai
said, urging customs departments to enhance supervision.
Construction
begins on major
Work
started on an international seaport and industrial park in the Chu Lai Open
Economic Zone (EZ) on Saturday, the same day the zone received a Labour Order
from the State.
The
new seaport and industrial park will be located on an area of 350ha with
investment capital of US$400 million from Tan Hiep Phat Group.
The
project is a major addition to the expansion of the Chu Lai Open Economic
Zone, which was developed from a white sand area 10 years ago.
The
zone houses a total of 90 investment projects with combined registered
capital of $3.1 billion, comprising of five industrial parks, a tourism site
and an urban precinct with a total area of 25,500ha.
At a ceremony
to present the Third Class Labour Order on Saturday, Deputy Prime Minister
Nguyen Xuan Phuc said he highly appreciated the efforts made by the Chu Lai
Zone's management board after 10 years of construction and operation.
The
development has seen rapid expansion of infrastructure, industry and services
and the attraction of major investments, he stressed.
Phuc,
however, said the zone has not yet exploited its full potential. He pointed
out that the EZ has yet to built up appropriate institutions, hi-tech
facilities and high quality services that would make it more competitive with
other economic zones across the country and abroad.
He
also called on provincial leaders and the zone's management board to ensure
infrastructure, sustainable planning and quick procedures for future
investors.
He
said the EZ should focus on human resources training for local workers to
meet the labour demands of investors.
The
vice chairman of the provincial People's Committee and head of the Chu Lai EZ
management board, Huynh Khanh Toan, said the zone's industrial production
value topped VND7 trillion ($333 million) during the 2006-10 period, but
average annual production had fallen and was at VND1.9 trillion ($90.4
million) last year.
"We
have targeted automobile manufacturing as a core industry as well as boosting
the development of support industries and the hi-tech, electronics and energy
sectors," Toan said.
"We
hope to contribute VND6 trillion ($286 million) to the State budget in 2020,
creating 160,000 jobs and earning $340 million from exports."
Toan
said the zone's Ky Ha and Tam Hiep ports have been upgraded to allow access
to 20,000 DWT (deadweight tonnage) ships.
The
central province has also cleared 2,000ha to lure investors and develop
Chu
Lai EZ has been included as one of five coastal economic zones across the
country to receive support from the State budget during the 2013-15 period,
with VND790 billion ($38 million) set aside for the zone for the period.
The
Labour Order was presented to the zone on the occasion of the 10th
anniversary of central
US
continues anti-dumping investigations into Vietnamese steel
The US
International Trade Commission (ITC) has used an August 16 vote to confirm
its resolve regarding ongoing anti-dumping duty investigations into Certain
Oil Country Tubular Goods imported from
The
ITC said that the
Following
US Government procedure, the Department of Commerce (DOC) will now continue
with preliminary investigations into Certain Oil Country Tubular Goods
imported from
The
preliminary anti-subsidy duty rate will be unveiled on September 13 with the
preliminary anti-dumping duties following later on December 9.
Eight
nations—the Republic of
Dao
Tran Nhan, head of
The
office noted the majority of Vietnamese Certain Oil Country Tubular Goods are
produced by joint ventures or foreign-invested companies.
The
DOC launched its largest ever anti-dumping investigation into Asian steel
pipes on July 23.
Boosting
exports to GCC region
The
Cooperation Council for the Arab States of the Gulf, also known as the Gulf
Cooperation Council (GCC) region, is a market rich in potential for
The
GCC is a political and economic alliance comprises of its six member nations
According
to the Ministry of Industry and Trade’s (MoIT) African and Western and
Southern Asia Market Department, the country’s trade exchanges with GCC
states surged over 2003–2012, rising from approximately US$392 million in
2003 to US$4.87 billion last year.
The
years following 2008 were even more impressive, with Vietnam’s GCC exports
raking in US$546 million in 2008, US$523 million in 2009, US$704 million in
2010, US$1.25 billion in 2011, and 2012’s record high.
Farm
produce is one of
The African
and Western and Southern Asia Market Department says improved quality and
diversity have ensured Vietnamese goods are quickly becoming favourites with
GCC consumers.
A
recent MoIT survey revealed GCC markets have reliable annual demands for
these goods as well as other commodities like garments and textiles,
footwear, timber furniture, agricultural products, building materials, and
fine art handicrafts.
The
GCC region’s own economic advantages range from its population of 48 million
to its abundance of oil, gas, iron ore, copper, gold, and aluminium. It is
often considered the world’s oil well, with six of its members accounting for
up to 40 percent of global petroleum reserves, 25 percent of gas reserves, 19
percent of total petroleum output, and more than 25 percent of traded
petroleum and refined petroleum products.
Saudi
Arabiai is the world’s leading petroleum exporter, a title claimed by fellow
member
The
GCC region’s GDP is higher than average thanks to those resources. Per capita
income in GCC states averages more than US$30,000. In some member states,
like
In the
first half of this year,
The
African and Western and Southern Asia Market Department is urging businesses
to expand their research into the promising market, participate in
exhibitions and fairs, and dispatch business delegations to promote trade
with their GCC counterparts.
Vietnamese
businesses should be careful to verify their partners’ details before
conducting any transactions or signing contracts, devise viable pricing
strategies, and make an effort to respect the business culture of the
majority Muslim region.
Stagnant
markets
Local
producers have been forced to bring steel prices down with the domestic
market remaining stagnant and Chinese steel selling at much lower prices.
Nguyen
Tien Nghi, Deputy Chairman of the Viet Nam Steel Association, said the local
steel market has been stagnant since last year, impacted by the real estate
market situation and the slowdown of construction projects across the
country.
Steel
prices reached their peak at VND20 million ($945.6) per tonne three years ago
before going down to VND17 to VND18 million per tonne last year and VND14 to
VND14.5 million ($685.5 million) per tonne in August 2013.
The
lower prices, however, have not boosted sales. Steel consumption in the local
market this year is estimated at 300,000 tonnes per month compared to 400,000
tonnes per month in 2012.
As a
result, inventories have risen to nearly 350,000 tonnes of steel and 450,000
tonnes of steel billet.
Local
businesses say they are facing unfair competition from Chinese products that
are selling at VND1 million ($47.6) per tonne lower than domestically
produced steel.
Many
local firms have had to cut production by 50 per cent while others are facing
closure.
To
make things worse, the recent electricity price hike has forced them to push
their prices further up, making their products even less competitive.
In the
first seven months of 2013,
According
to the VSA, boron accounts for just 0.0008 per cent of the steel alloy, which
is allowed to be used in construction projects.
Traders
believe that steel alloy imported from
Safety
net
The
Viet Nam Food Association (VFA) has said it will introduce a new contract to
prevent cancellations of rice export deals, something that has happened far
too frequently in recent months.
According
to Pham Van Bay, Deputy Chairman of VFA, both sellers (local firms) and
buyers (foreign companies) have cancelled rice export contracts, but buyers
have far outnumbered sellers.
Bay
said the new VFA contract would give sellers legal grounds for taking buyers
to court if it is breached unilaterally.
Most
of the contracts that have been cancelled so far are commercial contracts
signed by two companies, which are different from government-to-government
contracts, said Bay.
Cancellation
of rice export contracts on the sellers' side was often done by private
companies that have not been allocated a quota to purchase rice for temporary
storage or firms that have the quotas but are unable to access bank loans due
to poor business performance and losses, Nguyen Tho Tri, deputy general
director of the Viet Nam Southern Food Corporation (Vinafood2), told the Thoi
Bao Kinh Te Sai Gon (Saigon Economic Times) newspaper.
However,
most of the cases so far are a result of contracts signed when prices were
low with a dense delivery schedule, creating high demand and pushing up
domestic prices. In this situation, if exporters continued to buy rice to
fulfill their contracts, they would suffer losses.
According
to the association, in the first seven months, contract cancellations
affected the export of nearly one million tonnes of rice, or about one-fourth
of more than four million tonnes worth $1.8 billion that were shipped.
In
July alone, local firms cancelled contracts for export of 180,000 tonnes of
rice.
Local
firms win famous ASEAN trademark award
Hundreds
of Vietnamese and Lao businesses were honoured at an August 17 ceremony in
Among
Vietnamese awardees included the Bank for Investment and Development of
Vietnam (BIDV), the Vietnam Joint Stock Commercial Bank for Industry and
Trade (Vietinbank), Tran Phu Electric Mechanical Joint Stock Company
(Trafuco), Oil and Gas Service Joint Stock Company, Tan Hiep Phat Group, and
Thien Long Company.
These
businesses’ brand names have been recognized widely in both domestic and
regional markets.
The
“famous ASEAN trademark” award aims to honour the community of outstanding
Southeast Asian businesses, entrepreneurs, organizations and individuals for
their great contributions to promoting the regional grouping’s prosperity,
socio-economic development and culture.
Can
Tho sets record in FDI attraction
Two
foreign businesses have been licensed to increase investment capital by
nearly US$3.3 million in Can Tho, bringing the total registered capital from
57 FDI projects in the Mekong Delta province to a record high of US$879
million.
The
figures were released by Le Duong Cam Thuy, Deputy Director of the Can Tho
provincial Planning and Investment Department.
Can
Tho has boosted administrative reform and offered many incentives for foreign
investors, such as lower tax rates, shorter licensing period, extended land
use duration.
The
province has established a trade promotion centre to provide businesses with
updated information and create a closer link among local firms and relevant
agencies.
Geater
attention has been given to developing support industry, upgrading
infrastructure facilities, providing enough human resources, and improving
investment attraction.
The
province has also increased cooperation with other Mekong Delta provinces to
strengthen connectivity with large economic hubs in the southern region such
as Dong Nai and
In
addition, site clearance projects are underway to facilitate industrial parks
(IPs)’ operations.
As
planned, the province will expand four IPs-- Hau River, Thot Not, Hung Phu
II, and Tra Noc II along with building drainage and sewerage system, waste
treatment plants and dealing with environmental pollution in a number of IPs.
Source:
VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
|
Thứ Hai, 19 tháng 8, 2013
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