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BUSINESS IN BRIEF 23/8
US
billionaire to expand operation in Vietnam
Ashley
Furniture Industries CEO Todd Waneck is in
He has
met and worked with Pho Xinh CEO Duong Quoc
The
two companies recently signed in the
Accordingly,
a distribution centre for Ashley products will open in 2014 with a chain of
home stores and galleries put up in Pho Xinh supermarkets across
Waneck
has visited Binh Duong where his company will build a new factory as part of
its plan to withdraw its labourers in
Established
in 1945, Ashley Furniture Industries are co-owned by the father and son of
Ron and Todd Waneck who were once listed in the Forbes top 400 richest people
in the
Last
year Ashley ranked 115th among the biggest private companies in the
Todd
Waneck joined the company in 1979 and has been in charge of its external activities
for two decades.
The
Waneck family is also known as financial supporter for the US Furniture
Political Action Committee (FurnPAC) and politicians.
In
2006, Todd Waneck was awarded by the City of Hope National Cancer
Institute-designated Comprehensive Cancer Center for his sponsorship
programme.
How
to penetrate the German market?
Vietnamese
goods, buoyed by growth in consumer demand, are facing plenty of export
opportunity in the German market.
Seizing
these opportunities requires a business focus on ensuring their products can
meet German consumers’ strict quality and hygiene standards.
The
volume of Vietnamese goods exported to
Electronic
devices and associated parts achieved the highest growth rate of more than
130 percent, followed by paper (up 85.32 percent).
Telephones
and spare parts also increased by 80.9 percent to US$873.49 million,
accounting for 37.13 percent of Vietnam’s total export earnings from Germany.
Of the
figure garments came second with US$279.44 million (11.88 percent). Other
notable earners include coffee (US$223.71 million), footwear (US$197.51
million), and computers and electronic devices (US$131.82 million).
Products
exported to
Packaging
is a decisive factor behind export promotion at trade fairs in
Rice
export contracts cancelled
Vietnamese
businesses are unable to export 6.8 million tonnes as expected in the first
seven months of the year due to the cancellation of rice shipments worth of
nearly one million tonnes, according to the Vietnam Food Association (VFA).
Most
of the cancelled contracts were related to Chinese traders and the rest to
Philippine traders.
To
prevent this happening, the VFA has recommended that businesses carefully
check the content of every contract before they decide to sign, especially
with Chinese traders.
Nguyen
Dinh Bich, a leading expert on rice exports said
The
“Establishment of Carbon-Cycle-System with Natural Rubber” project is being
carried out at the Hanoi University of Science and Technology and Rubber
Research Institute of Vietnam in cooperation with the Japan-based Nagaoka
University of Technology.
The
six-year project, funded by the Japan International Cooperation Agency and
the Japan Science and Technology seeks to help
At the
meeting, Ngo Thi Ngoc Ha, deputy director of the Vietnam Standards and
Quality Institute, said the country has not had a standard for protein-free
natural rubber by which the safety of products can be measured.
The
latest research on “de-proteinisation” method under the project will help
create a standard, she said, adding that products made from natural rubber
are environmentally friendly, but could cause latex allergy in people.
Prof
Tran Van Top, vice president of the Hanoi University of Science and
Technology, said the project includes five research groups, and its results
would pave the way for future development of natural rubber in the country.
Prof
Masao Fukuda, the programme leader, said the project aims to help
The
capital city of
To
achieve this goal, it will increase the number of small and medium-sized
enterprises (SMEs) operating in support industry to 300 by 2015 and 700 by
2020.
Once
established and put into operation, the SMEs will be able to create
high-quality products that meet regional and international standards.
To
make the dream come true,
In
addition to encouraging enterprises to attract foreign investment and apply
advanced technologies, the city will offer them opportunities to access
preferential capital for their production and business.
Plans
are afoot to train a skilled labour force for enterprises. This year, 100
training courses on business administration will be held for 4,000
entrepreneurs and employees.
Capitalising
on TPP agreement
The
Trans-Pacific Partnership (TPP) agreement will create both opportunities and
challenges for the local agricultural, garments and footwear sectors, a
seminar was told in
The
event was jointly held by the Saigon Economics Times and the Vietnam Chamber
of Commerce and Industry (VCCI) to shed light on updated information on TPP
agreement.
Diep
Thanh Kiet, Deputy Chairman of the Vietnam Leather and Footwear Association
(Lefaso), said TPP will help improve the business climate in
Since
November 2010,
According
to Le Quang Hung, Chairman of the Management Board of the Saigon Garment
Company, a number of free trade agreements
Nevertheless,
Hung said, these trade agreements will also create barriers against
Vietnamese businesses, including tough competition, materials supply and
labour force.
Regarding
the agricultural sector, Van Duc Muoi, Chairman of the Ho Chi Minh City Food
Association, pointed out that local farmers are among the most vulnerable
during the international integration process because
Muoi
stressed that it is essential to have specific commitments for the
agricultural sector and relax TPP members’ requirements.
Economist
Pham Chi Lan noted that as global trade has shifted from trade liberalisation
to trade facilitation, commercial value is based on such factors as added
value and inter-dependence of industry, services and agriculture to create
the competitive capacity.
She suggested
local businesses build up new development strategies to take advantage of TPP
when it is signed.
Shrimp
exports may reach over US$2.4 billion in 2013
According
to the Vietnam Association of Seafood Exporters and Producers (VASEP), export
revenue from this product hit nearly US$1.4 billion in the past seven months,
rising by 14.7% compared to the same period last year. The figure is expected
to surpass US$ 2.4 billion by the end of 2013.
In
July, shrimp and crab saw remarkable export growth, while the export of Tra
(Pangasius), tuna and octopus continued to experience a decline.
VASEP
said 7-month shrimp exports made up almost 40% of total seafood export
turnover, or a year-on-year increase of 5%.
The
export price of shrimp rose in some key markets, notably up 17.2% in the
Tra
fish exports reaped US$985 million, 0.6% lower than the same period last year
due to capital shortages and reductions in global consumption.
The
local seafood sector recorded a total export turnover of about US$3.5 billion
in the past seven months, up 2.2% year on year.
Dong
Nai attracts over US$786 million in FDI
By
mid-August, southern Dong Nai province has lured US$786.76 million in foreign
direct investment (FDI) capital, meeting more than 78% of its yearly plan.
According
to the provincial Department of Planning and Investment, Dong Nai licensed 50
new projects worth US$364.28 million and 46 existing ones with an additional
capitalisation of US$422.8 million.
Notably,
there is a sharp increase in the number of projects that use a smaller
workforce and have a little impact on the environment in the services,
support and high-tech industries.
The
province has given priority to environmentally friendly projects in high
technology and support industry, which have high added value and use a little
energy. It has stopped granting licences to projects which are likely to
cause water pollution. Industrial zones without waste water treatment
stations are not allowed to lure investors.
To
attract more investors, Dong Nai creates a healthy business environment,
accelerates administrative reform and supports business operations.
To
achieve the target of attracting US$1 billion investment capital in 2013, the
province pays more attention to cooperation, human resources training and
infrastructure development.
It
also increase dialogues between management agencies and businesses to
timely iron out snags.
As
July 20, Dong Nai had 1,358 FDI projects with a combined capitalisation of
more than US$23,596 billion, including 1,045 valid projects worth US$19.25
billion.
Around
35 countries and territories have invested in the province, including
Prime
Minister approves broadcasting services plan
The
Prime Minister has ratified a plan for the development of radio and
television broadcasting services in the country in the run up to 2020.
The
plan, which was approved on August 19, aims to develop pay-for-view TV
services in a sustainable manner and cater for the growing demand for
entertainment.
It
also aims to ensure a healthy and competitive environment, and prevent
monopolies building up.
People
will be encouraged to gradually change from terrestrial TV services to other
kinds, as the country’s television stations will broadcast in digital in 2020
as set out in a different plan.
By
2015 there will be up to 80 popular TV channels and around 50 specialised
pay-for-view channels for viewers to choose from.
The
ratio and content of all foreign channels will be based on a full calculation
of the paid service system under different periods. The paid TV services are
targeted to reach up to 40% of population by 2015, and 70% by 2020.
A
radio and TV services market will also be set up, allowing regulated, healthy
competition.
The
next step is for the sector to mobilise investment capital and improve
service quality.
UNDP
further supports
The
United Nations Development Programme (UNDP) in
UNDP
Country Director Louise Chamberlain made the pledge at an annual session in
Deputy
Minister of Natural Resources and Environment Tran Hong Ha asked the UNDP to
further support
The
ministry proposed five projects to the UNDP which are aimed at reserving
significant wetlands, improving the implementation capacity of the Rio
Convention in
The
UNDP has been supporting at least seven environment-related projects in
Louise
Chamberlain said these projects are on the right track to help build climate
change response capacity and reduce the level of environmental pollution in
dioxin-contaminated areas.
For
other projects that are underway, she urged the Ministry to shorten the
appraising and approval time to make it possible for them to get off the
ground soon.
Global
shipping industry sets sail under new standard
The
ILO’s Maritime Labour Convention – comes into force, ensuring protection for
the world’s 1.5 million seafarers and fair competition for shipowners.
The
International Labour Organization’s Maritime Labour Convention (MLC, 2006)
comes into force on 20 August 2013, inaugurating a new era of decent work for
seafarers and fair competition for shipowners in the global shipping
industry.
“This
Convention is a milestone in maritime history”, said ILO Director-General Guy
Ryder. “The product of tripartite dialogue and international cooperation, it
enables decent working and living conditions for seafarers to be advanced,
along with fair competition for shipowners in this, the most globalized of
industries”.
The
new Convention becomes binding international law as of 20 August. It needed
ratification by 30 ILO member States, representing more than 33 per cent of
global gross tonnage to enter into force. To date, more than 45 ILO member
States representing over 75 per cent of global gross shipping tonnage have ratified
the Convention.
The
Convention has the full support of the International Transport Workers’
Federation (ITF), which represents seafarers, and the International
Shipowners Federation (ISF), both of which played a key role during the five
years of its development and in the adoption of the Convention at a special
ILO International Labour Conference in 2006. It also has the strong
support of the International Maritime Organization (IMO).
According
to the Viet Nam Maritime Administration, the country has nearly 32,000
licensed seafarers including about 27,000 still working in national flag and
international vessels. Its 1,700 national flag ships cover one tenth of the
country’s exports and nearly half of container goods on domestic routes.
Prime
Minister Nguyen Tan Dung on 25 July approved the national MLC implementation
plan. The important blueprint requires an overall upgrading of domestic
marine laws by 2015; comprehensive assessment and certification for all
Vietnamese ships in 2013; the establishment of a tripartite consultation
mechanism involving representatives of the Government, ship owners and
seafarers this year; and investment in public information and entertainment
structures for seafarers at sea ports by 2020.
Healthcare
projects need VND7,500 billion
An
August 20 Health Ministry meeting in Hanoi, reviewing its activities during
the first half of 2013, has heard the healthcare sector requires more social
investment to overcome current capital shortages.
Participants
revealed a number of healthcare projects have yet to be completed because of
these difficulties.
The
investment shortfall for approved projects currently totals around VND7,500
billion, including VND4,500 billion for healthcare services, VND1,500 billion
for training, and VND1,000 billion for science and technology research
The
capital allocated to the medical sector was cut by 20 percent to VND8,512,46
billion in 2013. Funds mobilised from government bonds amounted to only 25
percent of last year’s figure.
The
first six months of 2013 saw the disbursement of VND3,850 billion, the
equivalent of 45.23 percent of the estimated yearly expenditure.
Netherlands
funds fresh water project in Ba Ria-Vung Tau
The
An
agreement to this effect was signed between the Dutch Consulate General in
The
first plant, with a capacity of 20,000 cu.m per day, will be located in Long
Tan commune, Dat Do district, while the second one, in Bong Trang commune,
Xuyen Moc distrct, has a capacity of 5,400 cu.m per day.
Once
completed, the two works will provide fresh water for daily life and
production for 35,000 local rural households.
According
to Timvan Galen, Chief Advisor of the Dutch government-funded programme,
ORIO, the project is one of the first seven ones signed by ORIO all over the
world. It is currently funding 66 projects worldwide, focusing on fresh
water, health care and energy.
Of
this figure, aquaculture will make up 65 percent, according to the sector’s
master plan from now until the end of the decade, with a vision towards 2030.
Under
the plan, which was ratified by the Prime Minister on August 16, the
country’s fisheries exports are projected to rake in 11 billion USD by 2020
with an average growth rate ranging from 7-8 percent.
The
sector will be industrialised in 2020 and modernised in 2030 while continuing
its comprehensive, effective and sustainable development with a high
competitive edge to firmly integrate into the global economy.
The
plan aims to improve the living standards of fishermen, protect the country’s
ecological environment and contribute to the safeguarding of the country’s
national defence and security at sea and on islands.
Up
until 2020, about half of fisheries workers will be trained and the average
per capita income will triple.
From
2020 through to 2030, the sector’s total output is expected to reach 9
million tonnes, of which 70 percent will come from aquaculture. Export
turnover in that timeframe is projected to climb to about 20 billion USD.
Training
courses will be designed for around 80 percent of workers in the sector, the
plan said.
The PM
has assigned ministries and municipal and provincial People’s Committees to
work together in implementing the master plan, which also focuses on areas such
as seafood production, processing and commerce, infrastructure, services and
logistics.
Measures
will be put in place to ensure the effective development of
science-technology, environmental protection, production management and
international cooperation.-
Toll
collection right auction launched
The
Ministry of Transport just kick-started the auctioning process relevant to Ho
Chi Minh City-Trung Luong expressway’s toll collection right handover.
As of
this time, setting an adequate traffic volume growth level for the road
remains the only entanglement in establishing the auction’s starting price,
according to the ministry (MoT).
The
Cuu Long Corporation for Investment, Development and Project Management of
Infrastructure (Cuu Long CIPM), which was trusted to pen the auction project,
proposed a 6 per cent hike in annual traffic volume along the road.
It
temporarily set the auction’s starting price for acquiring the right on toll
collection in fight years from October 1, 2013 at VND1.603 trillion ($76.3
million) which was based on 2012’s actual toll amount and a combination of
factors such as an 8 per cent interest to investor’s capital investment, 10
per cent value added tax and 6.6 per cent collection expenses etc.
Successful
investors shall take charge of fulfilling payment within six months in three
rounds, of which 40 per cent of the contract value must be paid in the first
round right after the contract becomes valid.
Cuu
Long CIPM’s deputy general director Duong Thi Tram Anh viewed the 6 per cent
annual traffic hike proposal as reasonable as the National Highway 1 which
runs parallel to the Ho Chi Minh City-Trung Luong highway is still toll free
so it would continue attracting a huge volume of traffic.
Deputy
head of Ministry of Finance’s Department of Public Asset Management Nguyen
Tan Thinh did not satisfy with the proposal, arguing that the developer
should mull higher traffic volume growth to bolster the road’s usage
efficiency.
Thinh
also said bright development perspective would also spur the traffic volume.
Deputy
Minister of Transport Nguyen Hong Truong was reported to propose Cuu Long
CIPM apply 8 per cent traffic growth hike when setting the auction starting
price, which will see Cuu Long CIPM’s auction starting price jump by an
additional VND30 billion ($1.4 million).
Despite
these arguments, the auction of Ho Chi Minh City-Trung Luong expressway’s
toll collection right is forecast to garner investors’ special attention.
Cuu
Long CIPM statistics show that in July 2013 the expressway attracted around
32,830 car equivalents each day, of which below 12 set cars accounted for 35
per cent.
Toll
collection on the road came to around VND1.1 billion ($52,300) each day in
July though it was not a peak period for traffic.
“At
least two foreign investors have showcased interests into the auction,” Anh
said.
To
complete the handover before December 2013, MoT Deputy Chief Nguyen Hong
Truong had asked Cuu Long CIPM to shortly complete the auction project and
inform of the auction on local media no later than October 1, 2013.
The
auction slated to take place one month later on November 1, 2013.
“The
auction is open to every individual and business having real capacity and
demand,” Truong underscored.
The Ho
Chi Minh City-Trung Luong expressway, part of the north-south highway
network, connects
Construction
of the project kicked started in December 2004 and the 50 kilometre long
expressway was open to traffic from February 2010.
McDonald's
selected JobStreet.com as official recruitment partner
American
fast-food giant McDonald’s has chosen JobStreet.com, a leading recruitment
network in
Vietnam
Jobstreet.com has searched and screened potential and talented candidates for
the first two positions of McDonald’s in
The
choice of McDonald's reflects the quality and prestige of JobStreet.com to
Vietnamese corporations and employees in recent years.
Piloting
in the process of applying technology for service quality improvements,
JobStreet.com has recently launched the official "Rich Information
Recruitment Form" called as Rich Job Ads.
With
many new functions like suggested salary, location maps and rich corporate
data, the users can obtain full information about prospective employers that
they have interest in a swift manner.
McDonald’s
is the world’s leading global foodservice retailer with over 34,500 locations
serving more than 69 million customers in more than 100 countries (37 in
Asia) each day.
In
August 2012, McDonald’s senior officials came to
Poor
regulations handicap investors
It is
high time for State agencies to improve the country's investment environment
by creating a consistent sequence of investment procedures nationwide, a
conference heard yesterday.
Chairman
of the Viet Nam Chamber of Commerce and Industry (VCCI) Vu Tien Loc said the
country's bureaucratic investment procedures were obstructing both domestic
and foreign investors who wanted to do business in
While
once one of the most attractive investment destinations in Southeast Asia,
the country was now ranked in only a modest position, Loc said at the
conference held by the chamber, where experts and enterprises joined together
to suggest administrative reforms that they believe would make the
environment more attractive to investors.
Of
more than 8,000 domestic enterprises and 1,500 foreign companies surveyed in
2012, 33 per cent of the former and 28.3 per cent of the latter found the
investment licensing procedure to be the most burdensome and complicated.
These
figures were announced by Dau Anh Tuan, deputy head of the VCCI's Legal
Department, who also noted that often contradictory investment licensing
regulations appear in five laws, 10 decrees and nine circulars.
He
added that to start a project, enterprises have to complete at least 18 major
administrative procedures at the ministries of Investment and Planning,
Construction and Natural Resources and Environment.
These
stages included seeking a location, requesting land use rights, making an
environmental assessment and submitting a detailed investment plan for
approval.
Tuan
argued that the complicated process was not only very costly for enterprises
but also made it impossible for them to set realistic time frames for their
projects, creating missed business opportunities.
Deputy
Chairman of the
"In
this case everything ran smoothly and it still took a very long time. If any
problems are thrown up then the time is even longer still," Hiep said.
"There
are too many directive documents to provide clear guidance. They are
confusing even to domestic investors like me so how can foreign investors
abide by our laws?"
Tuan
said that the overlaps in procedures could be attributed to a shortage of
information sharing within and between State agencies.
He
also acknowledged that in different localities a different sequence of
procedures were often required using different documents.
He
claimed that without one agency controlling the whole process there would
always be a weakness in supervising and assessing domestic projects.
Maria
Soo Chung, an associate of Baker & McKenzie Vietnam Ltd's Ha Noi branch,
said different licensing procedures exist for domestic and foreign investors.
She
said that the latter would always aim to seek the simplest, shortest and most
cost efficient way to carry out their investment, meaning that they would
soon become frustrated if legally required to begin a long-winded certification
process.
"Administrative
procedures concerning project implementation, such as land, construction,
imports and exports are still unclear and in some cases, incoherent and
incompatible with one another," she pointed out.
"We
hope that
Tuan
suggested the investment procedure must be simple, systematic and consistent
nationwide. He said that this would help save time for both State authorities
and enterprises while preventing the risk of corruption.
Nguyen
Hung Hue, a representative of the Ministry of Justice's Department for
Administrative Procedure Control, noted that investors were often placed in a
disadvantaged position because they did not have any tool allowing them to
supervise the performance of State agencies.
He too
called for the removal of the existing procedural obstacles.
"It
is necessary to establish and maintain only one channel to provide
information about the regulations and the results of applications."
The
assessment was announced by experts at a conference on rural and agriculture
policies in the integration process yesterday.
It was
based partially on reports on the impacts of tax barriers in FTAs on
agriculture made by the
Pham
Thi Ngoc Linh, an expert from Ipsard, said the country was suffering from
FTAs with other countries, especially in terms of tax rates.
This
had led to taxes on agricultural imports witnessing a sharp decrease to 0-10
per cent on products such as beef, dairy products and rice, she said.
Most
of the country's agricultural exports to FTA partners are subject to tax
rates of 5-15 per cent, and sugar, dairy products, vegetables and meat had to
suffer taxes of 30, 23 and 18 per cent, she said.
She
forecast that Viet Nam's trade deficit with its four FTA partners including
ASEAN, China, South Korea and Japan would reach US$4 billion by 2017.
The
total export turnover for forestry-agriculture-aquatic products would
increase by US$15-17 billion, she said.
The
volume of agricultural exports to ASEAN countries is expected to surge by
18-20 per cent, while the volume of rice exported to China will be up 25-30
per cent, vegetables 15 per cent and dairy materials nearly 50 per cent.
Dang
Kim Son, director of Ipsard, said tax reductions for the country's FTA
partners had facilitated many foreign companies to do business and export
agricultural products to a third country.
Small-scaled
production, dated technology and a lack of funding had multiplied the
challenges for the country's agricultural production, he said.
Deputy
Minister of Agriculture and Rural Development Nguyen Thi Xuan Thu said the
ministry had been restructuring the agricultural sector to make it more
competitive.
Experts
also suggested that protectionism be replaced by development policies of
production and value chains.
Economic
downturn does not deter Vietnamese TV buyers
Viet
Nam imported 62,000 television sets last month, a 35 per cent year-on-year
rise and the highest number for any month this year, according to the
Ministry of Industry and Trade.
GfK
Research Company reported that TV imports saw the strongest growth in the
electronics sector, adding that it was due to the launch of a clutch of LCD,
LED, and 3D models by big brands like Sony, Samsung, LG, Toshiba, and Sharp
with new features, economical operation, and attractive designs.
Le
Tung, marketing director of Topcare, a Ha Noi-based electronics retail chain,
said TV sales have not been hit by the economic downturn.
Topcare
sold around 2,200 sets last month, and expects to sell not less than 10,000
in the fourth quarter.
Dau tu
(Viet Nam Investment Review) newspaper attributed the strong sales to
promotions by retailers.
Topcare,
for instance, is offering discounts of 4-27 per cent on most TVs.
Media
Mart electronics chain is also offering discounts starting at 10 per cent on
Samsung and Sony TVs this month.
US
continues price dumping probe
The
United States International Trade Commission (USITC) has determined that
there is a reasonable indication that US industry is materially injured by
reason of imports of certain oil country tubular goods (OCTG) from Viet Nam
and other import nations.
According
to the Viet Nam Competition Authority (VCA), Viet Nam was accused of price
dumping of between 103 and 111 per cent. This will directly affect 16
domestic steel manufacturers and nearly 7,500 workers.
It is
said that imports of OCTG from Viet Nam and other countries and territories
including India, South Korea, the Philippines, Saudi Arabia, Taiwan,
Thailand, Turkey and the Ukraine are allegedly sold in the US at less than
fair value.
The US
Department of Commerce (DOC) officially started anti-dumping duty
investigation into OCTG imported from Viet Nam, South Korea, India, Turkey,
Taiwan, Ukraine, the Philippines, Saudi Arabia and Thailand.
The
move was made after some US steel and steel pipe producers had lodged
complaints against those countries on dumping OCTG to DOC on July 2.
As a
result of the USITC's affirmative determinations, DOC will continue to
conduct its investigations on imports of these products. It's expected to
issue the preliminary conclusion in December and the final one will be given
in February 2014.
Last
year, Viet Nam exported 199,000 tonnes of OCTG to the US, earning a turnover
of US$189 million and accounting for 12 per cent of the country's imports of
the product.
Since
2011, the Vietnamese steel sector has faced four anti-dumping lawsuits. Three
previous lawsuits were on carbon-welded steel pipes, steel-wire garment
hangers and welded, stainless steel pressure pipes.
Coal
production down 4m tonnes
The
Viet Nam National Coal and Mineral Industries Group (Vinacomin) is expected
to produce only 39 million tonnes of coal this year, a significant drop of 4
million tonnes.
The
Ministry of Industry and Trade released the sales figures, 9.3 per cent lower
than targeted, which will come as a slight disappointment to the mining
giant.
About
10.5 million tonnes of the total coal was for export and 28.5 million tonnes
consumed domestically. Last month saw the lowest coal consumption this year
with 2.1 million tones, only 0.25 million of which were for export.
Vinacomin
expects to earn VND97.9 trillion (US$4.64 billion) this year, meeting 93.8
per cent of the yearly target. Its coal operations will generate VND53.4
trillion of the total.
Despite
the drop in coal consumption, the corporation is still set to make a targeted
profit of VND2.5 trillion on coal, aiding Vinacomin's VND10.78 trillion
contribution to the State budget.
Vinacomin
said the low figure was due to higher export tax rates of 13 per cent being
applied from July 7. It was forced to halt its coal exports as its costs were
almost equal to export prices.
The
group last week proposed lowering coal export taxes to 10 per cent in order
to lift coal consumption by the end of the year.
At a
meeting with Deputy Prime Minister Hoang Trung Hai in coal mining Quang Ninh
Province, Tran Xuan Hoa, Vinacomin's Members Council chairman declared that
the move was essential to halt declining coal sales.
Land
handed over for delayed Long Son petrochemical complex
The
People's Committee of southern Ba Ria-Vung Tau Province has handed over 400ha
of land to the Long Son petrochemical complex project, which has an
investment of US$4.5 billion.
Kan
Trakulhoon, President of Thailand's Siam Cement Group (SCG), the main
investor in the project, said final negotiations were being completed over
equipment supply packages, with work on the project expected to start early
next year.
Work
on the complex based in Long Son Oil and Gas Industrial Zone was initially
set to start in 2009, with production scheduled to begin in late 2012.
However, the complex has fallen behind schedule due to issues related to site
clearance.
The
complex aims to help meet the growing demands of local industries for
high-quality plastic resins, valued at up to $2 billion annually.
It
will consist of a factory capable of turning out 1.65 million tonnes of
olefins, 1.45 million tonnes of polyolefins, 280,000 tonnes of chlor-alkali
and other materials each year. There will also be support facilities
including a port, warehouse and power plant.
Currently,
SCG holds more than a 28 per cent stake in the complex while the remaining
interest belongs to Qatar Petroleum, Viet Nam National Oil and Gas Group
(PetroVietnam) and Viet Nam National Chemical Group (Vinachem).
Kan
said that the complex was a major project SCG has pursued during the past six
years.
VietinBank
to shift $14m
VietinBank
has received approval from the State Bank of Viet Nam (SBV) to contribute
supplementary capital worth US$14 million to Indovina Bank Ltd (IVB) so that
it can raise its charter capital as approved in January.
The Ha
Noi-based bank, officially known as Viet Nam Joint Stock Commercial Bank for
Industry and Trade, must carry out procedures in accordance with current
laws, the central bank said in a post on its website.
SCB
offers insurance
Saigon
Commercial Bank (SCB) is offering insurance products at its transaction
points following an agreement signed with Vietcombank Cardif Life Insurance
Company (VCLI) last Friday.
VCLI
is a joint venture between Vietcombank, BNP Paribas Cardif and SeABank.
Le
Khanh Hien, general director of SCB, said that the agreement aimed to help
diversify business operations of the bank.
SCB
customers can now buy bank products with insurance benefits attached or
independent insurance products from VCLI.
Vietnamese-Malaysian
trade booms
Vietnamese
businesses are being encouraged to invest strongly in Malaysia in order to
capitalise on the nation's rising import demands.
The
Viet Nam Chamber of Commerce and Industry (VCCI) says Malaysia imported goods
worth US$168 billion in 2011, a rise of $51 billion from 2009.
For
the first time in decades, last year Viet Nam achieved a trade surplus of
over $1 billion with Malaysia. Two-way trade also rose 17 per cent in 2012 to
$7.9 billion.
Statistics
from the Viet Nam Customs Department show that bilateral trade continued to
flourish in the first seven months of this year, with Vietnamese exports
generating $2.87 billion.
Major
exports include crude oil, rubber, rice, computers and spare parts, phone
handsets, coffee, seafood, steel, vehicles, machinery and equipment.
Viet
Nam mainly imports oil and fat, petrol, chemicals, plastic materials, timber
and dairy products from Malaysia.
Shazryll
Zahiran, Malaysian Consul General in HCM City, says the two countries have
signed a total of 13 bilateral agreements, creating plenty of opportunity for
an increase in bilateral co-operation in investment, trade, banking,
education, tourism, labour, sports, security and national defence.
Vu Van
Canh, a Vietnamese trade counsellor in Malaysia, says bilateral trade is
expected to reach a record high this year as the Malaysian economy has
already recovered from the global economic slowdown and is developing well.
According
to Canh, two-way trade this year is estimated to hit up to $9 billion, of
which $5.2 billion is from Vietnamese exports.
As of
July 20, 2013 Malaysia had invested in 445 projects capitalised at $10.2
billion in Viet Nam, ranking it eighth among foreign investors and second
among ASEAN backers in the country.
By
March 2013, Viet Nam had nine investment projects in Malaysia, worth a total
registered capital of $413 million.
New
farming models set for Mekong Delta
The
Ministry of Planning and Investment and local governments in the Cuu Long
(Mekong) Delta plan to set up three new co-operative models for farming
fruits, tra fish, and rice.
One of
the tasks under a project to improve the condition of local people, it will
be carried out in two phases in Can Tho city and the delta's 12 provinces.
The
first phase, which began in July and will end in October, involves appraising
the Delta's collective economy and functioning of existing co-operatives and
proposing new co-operative models for the region's three key products.
The
second phase, to go on until July 2016, will see implementation of the new
models.
The
delta's individual economy has developed well and the region has designated
special areas for growing rice and fruits and aquaculture, according to the
ministry.
But
people are still poor and do not have stable incomes because they do not have
stable markets for their products.
Deputy
Minister of Planning and Investment Dang Huy Dong blamed this on individual
farmers failing to co-operate.
Besides,
no organisation has come forward to instruct farmers in effective production
methods, he said.
The
2012 Co-operative Law offers a suitable model for fixing these problems by
providing members of co-operative inputs at low prices, production techniques
and technologies, and guaranteed outlets, he added.
Can
Tho and the 12 provinces have 1,300 co-operatives with 23,260 members and
45,000 co-operative teams, according to the Southwestern Region Steering
Committee.
Full-fledged
co-operatives should have at least seven members while those with at least
three are considered co-operative teams.
Only
2-5 per cent of farmers in the Delta are members of co-operatives, with the
main hurdles to membership being low education standards and poor management
of the co-operatives, local authorities said.
Huynh
Chi Nguyen, deputy director of the Hau Giang Province Department of
Agriculture and Rural Development, said most of the province's 106
co-operatives are small and have difficulty in finding regular outlets for
their produce.
Besides
suitable mechanisms and policies, human resources are also a key aspect in
developing co-operatives, he said.
Ngo
Hong Chieu, deputy director of the Dong Thap Province Department of Planning
and Development, said people with money and education prefer to set up their
own companies and rather than join co-operatives.
Of the
province's 200 co-operatives, only a few have chairpersons with a university
degree, he pointed out.
Most
co-operatives offer basic services like pumping water and supplying
breedstock and seeds.
It is
difficult for them to attract members since most cannot find stable markets
for their produce, he reiterated.
Nguyen
Quoc Hai, chairman of the Can Tho City Cooperative Alliance, said problems
related to policies, funding, and human resources and a lack of successful
model.
Source:
VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
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Thứ Năm, 22 tháng 8, 2013
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