|
BUSINESS IN BRIEF 26/8
Deputy
Prime Minister Nguyen Xuan Phuc has urged central Quang
Deputy
PM Phuc made the remarks at a ceremony on August 17 to mark the 10th
anniversary of the zone, which is situated in Nui Thanh district, Quang
After
a decade of operation,
Developments
in the zone have created jobs for nearly 50,000 direct and indirect workers
in the locality.
Comprising
24 communes and five industrial parks spread over 3,500 hectares, Chu Lai
been chosen as one of five key economic zones to be prioritised in the
2013-2015 period.
During
the ceremony, the zone was presented with the Labour Order, third class, for
its contributions to the national economy.
To
mark the occasion, the zone granted an investment licence to the Doctor Thanh
company allowing it to build an industrial park and international port
covering an area of 709 hectares and worth a total value of 1.6 billion USD.
Cross-border
trade with
Cross–border
commodity exchange between
The
southern
An
Giang serves as a gateway for local commodities to access the Association of
Southeast Asian Nations (ASEAN) market.
Last
year, cross-border trade turnover reached US$1.76 billion, a 24% year-on-year
surge.
According
to the An Giang Customs Department, its import-export turnover reached US$793
million in the first half of this year, up by 31% from last year’s figure.
Since
2009, the province has intensified its trade and investment promotion
activities, holding several border fairs to showcase quality Vietnamese
goods.
Fairs
promoting international trade, investment and tourism are held in Tinh Bien
district each year to attract domestic enterprises and partners from
An
Giang’s exports to
Exports
to
The
significant growth in trade is attributable to import-export policies and
mechanisms updated and adjusted annually by the Vietnamese and Cambodian
Governments.
An
Giang frequently holds working sessions with Cambodian provincial leaders to
effectively resolve difficulties and facilitate goods exchanges and trade
promotion.
However,
cross-border trade activities still face barriers in the form of
administrative formalities and unsuitable regulations, particularly those
determining permission for vehicles to pass through border gates.
To
ease difficulties, the Vietnamese Prime Minister recently approved
regulations on operating activities at land border gates to intensify trade
support services and import-export activities.
Land
site for US$4.5-billion oil project handed over
Ba
Ria-Vung Tau Province on Thursday handed over 400 hectares of cleared land to
the investor of the Long Son petrochemical complex project which will be
kicked of early next year.
Kan
Trakulhoon, President of Thailand’s Siam Cement Group (SCG), revealed the
information at a press briefing held in
According
to
The
Long Son petrochemical complex project based at Long Son Oil and
According
to
The
project which can produce 1.4 million tons of olefin with flexible grinding
technology includes other supporting works such as port, pier, storehouse and
power plant.
Besides,
the project can produce other products like polyethylene (PE), polypropylene
(PP) and vinyl chloride monomer (VCM). Such products are mainly for domestic
demand.
Previously,
Qatar International Petroleum Marketing,
Foreign
investors keen on
More
and more foreign investors are showing keen interest in the bad debt market
in
Karin
Finkelston, vice president of International Finance Corporation (IFC) in
Asia-Pacific, told a press briefing in
IFC
hopes to make stronger participation in the bad debt trading process, bank
restructuring and State-owned enterprise reform in the country, she said.
IFC
has invested in bad debt handling process in many countries and it hopes to
help solve bad debts in
IFC is
in talks to on supplement capital in some banks in
Techcombank
and VietinBank given IFC’s financial supports have provided over US$60
million worth of loans over the past three years. IFC, a member of the World
Bank Group, invested US$805 million in
Finkelston
commented that it is good to set up Vietnam Asset Management Company (VAMC)
but
Market
mechanism is the most important factor in bad debt solving. Besides,
“IFC
suggests that
Pham
Manh Thuong, deputy general director of Debt and Asset Trading Corporation
under the Ministry of Finance, said that many professional foreign investors
comprised of investment funds and banks are seeking bad debt trading information
in the country.
“I
have met some big investors. They said that they are willing to spend
hundreds of millions of U.S. dollars or more to buy bad debts in
However,
Thuong said that the lack of transparent information on bad debts is the
biggest challenge to investors besides those barriers such as administrative
procedures and reluctant cooperation from Vietnamese partners.
After
nearly two years of debate, VAMC was set up late July with an aim to handle
around VND40-70 trillion worth of bad debts from now to the end of this year.
The
central bank estimated that bad debt ratio stood at 4.67% in the total
outstanding loan by late April. However, some international financial
institutions predicted that the ratio might be several times bigger.
Software
processing industry shifts to high-value segment
After
over a decade processing software for the Japanese market, Vietnamese
software companies are now able to receive processing contracts with higher
values than before.
In the
past, local software enterprises could only carry out simple and low-value
processes such as coding and testing but now they are able to design and
research products to make more money, Nguyen Dang Phong, chairman of Fujinet
Software Solutions Company, said.
“
According
to Phong, in the last two years Japanese enterprises have
tended to transfer their software processing orders from
“To
compete with Chinese companies, members in the local software processing
industry have no other choice but to improve technical skills besides
applying international criteria like Capability Maturity Model Integration in
software production,” he remarked.
Sharing
Phong’s view, Chu Tien Dung, chairman of the HCMC Computer Association,
noticed the number of software processing contracts transferred to
“After
a period of time accumulating experience, Vietnamese software companies are
capable of carrying out processes with higher technical levels and this has
helped industry players increase their competitiveness against rivals from
other nations like
Despite
expressing an optimistic view on the Japanese market, local experts foresee
Services
buoy banks’ revenues
The
stable banking service revenues have helped local banks maintain January-June
profits at the same level as that in the year-ago period while their credit
activities barely grew in the year’s first half.
Among
seven lenders releasing their first six-month financial reports, up to six
posted up a strong rise in service revenues as a percentage of their total
pre-tax revenues compared to the same period last year, However, the total
profit of their banking services are approximately equivalent to the year-ago
period’s figures.
The
seven banks are ACB, NaviBank, Southern Bank, BIDV, Eximbank, Sacombank and
Vietcombank.
Among
these lenders, BIDV reported up to VND1.21 trillion of net service revenue, a
staggering growth from a mere VND411 billion in the same period last year.
Meanwhile,
NaviBank announced a sharp fall in net service revenues in the first six
months, from up to VND7.5 trillion in last year’s first six months to only
some VND1.11 trillion this year. However, the proportion of its net service
revenues still increased in this year’s January-June.
A
branch director of BIDV said service revenues at his bank come from the
issuance of letters of credit and international payments services among
others for corporate customers, and from fees of ATM cards and international
payment cards or money transfer for individual clients. He noticed service
revenues at his branch also inched up in the first six months.
In the
meantime, net revenues from lending activities declined at five out of the
seven banks from January-June while only BIDV recorded its net lending
revenues shot up to around VND6.65 trillion from roughly VND2.73 trillion in
the same period in 2012.
Five
banks recorded a decline in pre-tax profits while BIDV posted a year-on-year
rise of 45% to VND2.64 trillion in pre-tax profits in the six-month period.
Southern Bank, meanwhile, reported pre-tax profits of VND227.8 billion, 2.6
times higher than VND62.6 billion in the year-ago period.
Vietnam’s
gold demand surges in Q2
The
World Gold Council (WGC) estimated gold demand in the country at 23.2 tons in
the second quarter of this year, a 24% rise year-on-year but still lower than
the gold volume the central bank sold out in the period, according to
Vnexpress.
WGC in
the report released on Thursday said that gold demand in
In the
first quarter, gold demand declined 17% given gold trading regulations of the
Government and falling inflation.
However,
compared to other Asian countries such as
Over
the past one year, gold demand in the country reached 77.4 tons, down 26%
against the same period of the previous year. Of which, the demand for
bullion investment made up nearly 86%.
Anti-subsidy
duties feared to strangle shrimp exports
With
anti-subsidies duties on Vietnamese frozen shrimp determined by the U.S.
Department of Commerce (DOC), industry players are worried that shrimp
exports to this market will be strangled.
Tran
Van Linh, vice chairman of the Vietnam Association of Seafood Exporters and
Producers (VASEP), described the final determination of DOC as a complete
failure for
With
anti-subsidy duties, Vietnamese frozen shrimp will no longer be able to
compete with the same item of the countries that are also defendants in the
anti-subsidy case, said Linh, who is also director of Thuan Phuoc Seafood
Company in Danang.
The
anti-subsidy case against shrimp imports from
However,
the Vietnamese side deemed such an accusation unjust, saying it is not fair
to slap both anti-dumping and anti-subsidy duties on Vietnamese shrimp.
Though
the final anti-subsidy duties set by DOC are lower than the preliminary ones,
the hardship for
Moreover,
DOC informed
With a
wholesale price of US$20 a kilo in the
The
VASEP representative stressed the two Vietnamese mandatory respondents to the
investigation could not represent the entire shrimp industry, with many
players not receiving any subsidy from the Government.
In a
recent talk with the Daily, Le Van Quang, chairman of Minh Phu Company, one
of the two mandatory respondents, said the board of directors set a revenue
growth target of 25-30% for this year. Whether this target is attainable or
not greatly depends on the results of the anti-subsidies investigation and
the anti-dumping one, he said.
The
Although
there are only 25 companies exporting shrimp to the
Rural
credit rises on easier borrowing requirements
Agriculture
and rural credit has doubled from VND292 trillion to VND622 trillion three
years after the Government’s Decree 41 took effect in 2010, said Nguyen Tien
Dong, deputy general director of Vietnam Bank for Agriculture and Rural
Development (Agribank).
Dong
told a seminar held last week by the Governmental portal that Decree 41 on
credit policy for this sector had left a great impact on rural lives and
agricultural production.
Before
the decree was issued, agricultural and rural loans without collateral were
less than VND10 million for farmers, VND50 million for large-scale farm
owners and VND100 million for cooperatives.
With
Decree 41, farmers having no collateral are allowed to borrow loans of
VND10-50 million while the respective figures for large-scale farm owners and
cooperatives are VND50-200 million and VND100-500 million. This has helped
meet a large capital demand, making access to loans easier for farmers.
Such
agricultural and rural credit has accounted for 18-19% of the entire banking
system’s total and will be 20-22% if Vietnam Bank for Social Policies’
outstanding loans are included, equivalent to agriculture’s contribution to
GDP.
Currently,
the total outstanding loans of Agribank are around VND560 trillion, with 70%
invested in the agricultural and rural sector. Besides, bad debts of the
sector are always less than 3%.
Responding
to farmers’ question why the bank keeps land use certificates as collateral
for any credit from VND50 million, Dong said that this aimed to avoid many
credit institutions lending money to the same household as the bank, which
will result in risks if the borrower was unable to repay.
Meanwhile,
regarding difficult access to loans as complained by enterprises, especially
those in the seafood and coffee areas, Dong said that high interest rate was
one of the causes to this.
He
also noted that coffee trading on commodities exchanges still contains many
risks while many seafood enterprises even use loans for other purposes such
as investing in property.
SCB
launches insurance products
Saigon
Commercial Bank (SCB) has offered insurance products at its transaction
points given the bancassurance agreement signed with Vietcombank Cardif Life
Insurance Company (VCLI) last Friday.
VCLI
is the joint venture between Vietcombank, BNP Paribas Cardif and SeABank.
Le
Khanh Hien, general director of SCB, said that the agreement aims to help
diversify business operations of the bank. SCB customers are now able to buy
products of the bank attached with insurance benefits or independent
insurance products of VCLI at 230 transaction points of SCB.
Bancassurance
is part of SCB’s development strategy to speed up retail banking activities.
SCB
now has chartered capital of over VND13.5 trillion and total assets of over
VND170 trillion as of June. The bank has 197,000 customers and nearly 4,000
staff.
Domestic
investors aggressive in realty M&A deals
More
domestic investors are taking part in the real estate mergers and
acquisitions (M&A) market in Vietnam, focusing on condo and housing
projects while leaving jumbo deals for hotels, commercial and retail centers
to foreign players.
In
early 2013, Thu Duc Housing Development Corporation announced to transfer its
entire stake worth VND80 billion in Hanoi City-based Dong Mai project. Hoang
Quan Real Estate Company has also announced to acquire parts of Nam Hiep
Thanh staff housing project in Phu My new urban area in Ba Ria-Vung Tau
Province.
Dat
Xanh Group has also strongly participated in the M&A market, acquiring
two apartment projects in HCMC earlier this year. According to a
representative of Dat Xanh, many investors have offered projects to the
enterprise, so it will continue to invest in condo projects whose investors
face financial problems.
In
Earlier
this month, FLC Group Joint Stock Company has taken over a 99% stake from
Alaska Land Company, investor of Alaska Garden City. The project has total
investment of VND3.5 trillion and covers a total area of nearly 7.9 hectares
in
More
investors are now looking for buyers.
Vinaconex
7 is offering its project in Tu Liem District while Vinaconex 2 has plans to
sell Golden Silk project to secondary investors.
Ha Do
Group plans to transfer projects in An Khanh-An Thuong or My Dinh and it is
negotiating with some local and foreign partners to carry out transactions.
Licogi 16 Joint Stock Company has also announced it will transfer projects
this year.
Recently,
Song Da Urban & Industrial Zone Investment and Development Joint Stock
Company announced to sell a part of Nam An Khanh new urban area project. The
project, which was once considered highly profitable, has yet to be completed
after many years of construction.
Phan
Xuan Can, chairman of Sohovietnam Company, consultant for real estate M&A
deals, said that around 70 investors in
The
main reason is that these investors have failed to complete the projects as
scheduled given financial constraints. Some enterprises have restructured
portfolios, focusing on more important projects, while others wish to escape
from the market.
Meanwhile,
most buyers are businesses with strong financial capability and knowledge
about the market. They say that now is the suitable time to buy projects at
the lowest prices from partners.
Nguyen
Van Kha, chairman of Tu Liem Urban Development Joint Stock Company, said that
many real estate companies will divest capital out of the market this year.
Earlier,
many petty investors whose capital was just from VND5-20 billion joined the
real estate market. When the market met many difficulties, small enterprises
have no choice but to sell their projects to reduce losses, Kha said.
Old
projects introduced at Vietbuild 2013
Just a
few real estate enterprises joined Vietbuild 2013, the international
exhibition on real estate, interior and exterior design, and construction
materials, while most projects introduced at the fair were those already
launched earlier.
In
previous years, there were quite many enterprises joining the annual
exhibition. But this year, due to scant participation, exhibitors had chances
to lure visitors to their booths at the fair, which took place in HCMC from
August 14 to 18.
Hung
Thinh Land Company introduced three condo projects, including a project on
Pham Van Hai Street with apartments priced from VND1.7 billion each, Phuc Yen
2 project in Tan Binh District at VND1.2 billion each and Chuong Duong Garden
in Tan Phu District at VND13.5 million per square meter.
Meanwhile,
Phuc Khang Construction & Investment Joint Stock Company continued to
introduce to investors the
The
enterprise also offered
Minh
Vinh Khang Trade Joint Stock Company offered special sale for Bao Loc
residential area in
A
staff of the enterprise said the houses previously were offered at VND1.6-1.7
billion each. So, the enterprise expected to speed up sales with the special
discount.
Vietbuild
2013 took place at the Saigon Exhibition and Convention Center in HCMC’s
District 7. Around 800 local and international enterprises featured 2,200
booths at the fair.
Tra
fish processors post falling profits in Q2
Many
tra fish export processing firms suffered a decline in profits in
January-June due to rising production costs, according to financial reports
of the companies.
According
to the consolidated second-quarter financial report of Vinh Hoan Joint Stock
Company, the firm obtained net revenue of some VND1.35 trillion, a rise of
38% year-on-year. However, its profits contracted by up to 26% over the same
period in 2012 to VND52 billion only, which is ascribed to high production
costs.
In the
second quarter, Vinh Hoan’s production costs increased by more than 46%,
resulting in a contraction of 8% to a mere VND139 billion in gross profits.
Vinh Hoan also attributed its shrinking profits to slackened local demand and
mounting inventories dragging down export prices.
The
six-month cumulative revenue of Vinh Hoan reached around VND2.42 trillion, a
pickup of 25% year-on-year, with net profits posting VND102 billion or a drop
of 14% year-on-year. With the performance, the company has realized 50% of
its business targets on revenue and after-tax profits.
According
to the second quarter financial report of Mekong Seafood Joint Stock Company,
the company only earned VND3 billion in after-tax profits in the first six
months of the year, slumping by up to 72% year-on-year.
In the
second quarter alone, after-tax profits of
Only
Hung Vuong Joint Stock Company stands out. The company’s consolidated
financial report indicates it in this year’s second quarter achieved
after-tax profits of VND128 billion, taking its total profits in January-June
to VND233.6 billion, a sharp growth over the year-ago period.
FDI
heaps praise for great contribution to economy
A
former investment official has brushed aside concerns over the domination of
the foreign direct investment (FDI) sector in the country, saying the
domestic economy could not have prospered like now without FDI.
Phan
Huu Thang, former head of the Foreign Investment Agency under the Ministry of
Planning and Investment, noted the FDI sector has made impressive
development, contributing greatly to the nation’s economic growth.
Thang,
who now serves as director of the
Many
FDI enterprises, especially those in the hi-tech industries like mobile
phones, computers and cameras, have far exceeded domestic players, and are
playing a role of ever-growing importance in the country’s exports, Thang
said.
Specifically,
he noted, the FDI segment only held 45.2% of total export value before 2011
but it rose up to hold a share of some 64% in 2012.
In
this year’s January-July, this area posted total export value of US$48.2
billion, or as much as 66.3% of the nation’s total exports and a rise of 22%
year-on-year. The exportation of mobile phones and accessories alone, mainly
by Samsung Electronics Vietnam, topped the list of Vietnamese key export
products when bringing home US$11.6 billion in the period.
“It is
undeniable that FDI contribution to the development of the country as a whole
is really huge,” Thang told the Daily.
FDI
capital picked up from US$26.6 billion in 1991-2000 to US$69.5 billion in
2001-2011, but the sector’s proportion in the country’s overall investment
has slightly fallen from 24.4% to 22.7% in the given periods. Nevertheless,
the FDI sector’s contribution to
The
above figures indicate FDI capital’s important role in
Notably,
FDI has boosted
Furthermore,
FDI capital has resulted in the strong development of certain industries
including hotels, offices for lease, banking, insurance, accounting,
logistics and supermarkets.
Con
Dao to be upgraded to city after 2014
Island
District Con Dao off the southern
Under
the project on special administrative management mechanism for Con Dao, the
district island after 2014 will be upgraded to a grade-3 city with an
estimated population of some 15,000 people by 2020. The number of visitors to
Con Dao is projected at 80,000 annually then, says the project.
With
the plan, the administrative organization model in Con Dao will be a modern
urban government model in which the city’s People’s Council won’t be
established but an Administration Committee whose chairperson, vice
chairpersons and members will be appointed by the local government. At that
time, 11 specialized State management agencies will be set up in the city to
support the Administration Committee.
Subsequently,
To
become a high quality tourism, service and economic zone as targeted by the
Con Dao socioeconomic development overall zoning plan by 2020 with a vision
to 2030, the would-be Con Dao City will apply specific mechanism and policies
to investment attraction, socioeconomic development, infrastructure
construction and national defense in line with Decision 32/2013/QD-TTg
approved by the Prime Minister on May 22.
The
second property exposition and trade fair will get underway in
Up to
20 exhibitors are on the waiting list with over 100 pavilions, said General
Secretary of the Vietnam Association of Real Estate (VNREA) Phan Thanh Mai at
a press briefing in
Information
about banking support deals, and social and low-cost houses will be made
available.
Customers
are also able to talk directly with investors and commercial bankers and
attend a workshop entitled “Social housing – perspective from a 30 trillion
VND package”.
Mai
said that around 10 commercial housing projects are being converted to social
housing, each offering between several hundreds to one thousand apartments to
the market.
The
event will be co-hosted by the VNREA, the Hanoi Real Estate Club and the
Alliance of Property Trading Floors G5.
Foreign
gaming company seeks investment chance
Austria-based
gaming company Casinos Austria AG on Monday had a meeting with HCMC Vice
Chairwoman Nguyen Thi Hong to discuss its casino and computerized lottery
plan in HCMC.
According
to Karl Stoss, CEO of Casinos Austria, the company has worked with HCMC
Lottery Company on supporting technology and developing new products such as
bingo and scratch card. In addition, Casinos Austria has signed a cooperation
agreement with HD Bank and a memorandum of understanding with Savico.
Casinos
In
response to Stoss, Hong said that the city did not have authority over such
projects and lottery was managed by the Ministry of Finance.
Casinos
Austria AG established in 1967 is one of the leading international gaming
companies. Together with some partners, Casinos Austria AG is operating 40
land-based casinos in 16 countries, eight shipboard casinos, 750 gaming
tables and over 7,600 slot machines.
Southern
bourse’s trading volume hits three-month high
Given
that the foreign ownership cap could be increased, investors have increased
trading on the stock market in recent sessions. The traded value on the
Hochiminh Stock Exchange on Tuesday rose to a three-month high of VND1.55
trillion worth of 65.9 million shares comprising both matching and
put-through transactions.
While
the traded value increased, the stock index of VN-Index declined 6.21 points
to 504.81.
The
fall of VN-Index widened throughout the session, losing 1.43 points in the
opening trading phase, then dropping 4.33 points in the second trading phase
before ending the trading day down 6.21 points. Meanwhile, the VN30-Index
lost 4.1 points to stand at 557.52.
Trade
focused on big stocks like Hoang Anh Gia Lai (HAG) with 3.65 million shares,
REE with 180 million shares and Vinh Son – Song Hinh (VSH) with 140 million
shares traded. In terms of put-through transactions, Masan (MSN) on Tuesday
recorded a high volume of five million shares worth VND435 billion,
equivalent to 41% of total traded value via matching orders on Tuesday.
Foreigners’
net buying value on Tuesday was VND84.5 billion.
There
were 78 stocks increasing, 131 falling, and 97 standing still on the
Hochiminh bourse. Vinamilk (VNM) price was adjusted down to VND146,000 per
share from VND150,000 as on Tuesday was the ex-dividend date for shareholders
to receive dividend of 20% in cash.
HNX-Index
also fell as it lost 0.28 point to 62.65. However, in the contrast to the
southern bourse, trade on the northern bourse was poor with only 21.8 million
shares changing hands, equivalent to VND182 billion, dropping 20% from the
previous session.
Explaining
on improved liquidity on the stock market, many securities companies said
that it was due to news on foreign investors’ ownership cap in local
companies as Vu Bang, chairman of the State Securities Commission, was quoted
by the media that the Government Office had approved the commission’s
proposal on raising the ceiling.
However,
a source told the Daily that the Government had approved in principle to
widen the foreign ownership in June but it took time to consider methods how
to apply it. It is because if the foreign ownership is revised up, the
Securities Law must be amended which needs to have the approval of the
National Assembly.
Gold
sells well despite high bidding prices
The
central bank sold 25,500 out of 26,000 gold taels to enterprises and banks
through an auction on Tuesday, although the floor price was around VND200,000
higher than the market price for a tael.
Some
12 units won the auction with the highest winning price of VND38 million per
tael versus the lowest level of VND37.98 million a tael, much higher than the
floor price of VND37.9 million.
Over
the past four months, the central bank has launched nearly 55 tons of gold
onto the market. Le Minh Hung, deputy governor of the central bank, recently
told the media that this agency will continue supplying gold for the market
if demand stays high.
Notably,
enterprises usually post up buying price in the morning lower than the
bidding price and then revise prices following the average winning price.
According to a representative of a large gold firm, enterprises have posted
up low buying price before the auction to prevent risks, meaning that they do
not have to buy gold at prices much higher than the bidding level. Besides,
the central bank will base on these prices to calculate low floor price for
auctions.
A
source told the Daily that Saigon Jewelry Company (SJC) has continued to process
gold bars for auctions in recent times.
The
gold market has stayed a little quiet as SJC has seen strongest transaction
volume of just around 2,000 taels a day. Trading turns busier during the days
gold bar auctions take place.
Swedish
firms keen on local mining industry
Many
giant Swedish firms in the mining industry have shown keen interest in
investment opportunities in Quang Ninh, wanting to supply mining equipment
for local firms to tap coal mines in the
Speaking
at a seminar on coal and minerals late last week in Quang Ninh, Swedish
ambassador to Vietnam Camilla Mellnader said that
According
to Swedish enterprises attending the business matching with local firms in
Quang Ninh on Monday, coal is mainly exploited from open-cast mines in
Simon
Asell, regional marketing director of the Swedish mining company ABB, said
his firm wanted to join forces with Vietnam National Coal and Mineral
Industries Group (Vinacomin) and other local enterprises to study cooperation
chances in coal and mineral mining deep in the earth.
“This
is a highly potential area in
Similarly,
a representative of Scania Company, a solution provider in the transport
industry established in 1891, also came to the event to sound out business
opportunities this time. The firm said it had deployed many projects in
coordination with mining companies by encouraging them to use high quality
transport equipment with low-cost operational expenses.
The
seminar was also attended by Richard Anund, managing director of
SEK
has assisted lots of companies in Asia and the company is ready to provide
financial supports to Vietnamese firms doing business with
Local
wood products penetrate new markets
The
local woodworking industry has posted positive growth in traditional markets,
and has even penetrated into some new markets such as
Besides
traditional markets such as the
As
The
Ministry of Agriculture and Rural Development forecasts the nation’s wood
export revenue growth rate at around 10-15% this year with value estimated at
US$5.5 billion. Between January and July,
Some
markets such as
Nguyen
Quoc Khanh, chairman of the Handicraft and Wood Industry Association of HCMC
(Hawa) and chairman of AA Construction Joint Stock Company, said that the
demand for woodworking products and project furnishing remains high. The
enterprise has signed many contracts to furnish restaurant and hotel projects
overseas.
Can
Tho realty awaiting capital support
The
property market in Can Tho, the economic center of the Mekong Delta, is still
facing difficulties as both individuals and companies have not been able to
access the VND30 trillion housing credit package launched by the Government.
Many
commercial housing projects in Can Tho seeking permission for conversion into
low-cost homes are still awaiting approval so as to benefit from the VND30
trillion housing credit package.
After
the Government decided to offer the credit package to support developers and
buyers of low-cost homes, Can Tho City has had five housing projects meeting
the prescribed conditions. However, none of these developers have got the
low-interest loans so far.
Specifically,
Thien Loc Co. Ltd. has sought approval for adjusting two housing projects
into low-cost homes with total areas of nearly 18,880 square meters in Cai
Rang District. Can Tho Housing Development and Trading Co. Ltd. has applied
for converting more than 14,230 square meters of commercial housing schemes
into budget homes with a total of some 402 condos in Hung Phu 1 Residential
Area in the same district.
Besides,
Can Tho Hoang Quan Investment and Real Estate Joint Stock Company has asked
for permission to develop low-cost homes at a resettlement project also in
Cai Rang District with a total of 11,120 square meters.
Nguyen
Tan Duoc, director of Can Tho City’s Department of Construction, said that
four of the above five projects are still waiting for disbursement from the
VND30 trillion package, except for a scheme of Hong Loan Construction and
Trading Joint Stock Company.
As
observed by the Daily, many projects are still under construction or have
just completed shell buildings in Cai Rang District in Southern Can Tho and
residential areas in Binh Thuy and Ninh Kieu districts among others.
In the
Southern Can Tho new urban area alone covering 3,200 hectares, at least 20
investors with 30 projects to build modern residential areas, high-class
apartments and offices for lease on a total of some 1,300 hectares are all
incomplete.
The
developer of an on-going project in the urban area who declined to be named
said the hard access to the loan package along with the frozen realty market
and slackened housing demand had forced many investors to abandon their
schemes.
Seafood
processing plants to be reorganized
The
Vietnam Directorate of Fisheries has plans to streamline the network of
seafood processors nationwide with a reported aim to better control
environmental pollution and facilitate management, a move that has triggered
instant reactions.
In its
restructuring scheme, the directorate said the reorganization is needed as
the processing capacity has now far exceeded the demand. On average,
processing plants are currently running at 60-70% capacity, said the agency.
Therefore,
the directorate will coordinate with the Ministry of Industry and Trade and
provinces to inspect and rearrange processing enterprises, relocating them
into industrial zones and concentrated materials.
The
restructuring scheme suggests a road map for restructuring seafood processing
plants to fit each material production area and each market.
In
addition, the directorate will work with provinces on reorganizing production
based on the product value chain from farming ponds to consumers. Purchasing
and processing enterprises will play the crucial role in organizing the
product value chain.
The
model of farmers, material suppliers and processing enterprises all having
their stakes in the product chain will be piloted and expanded to create “an
organic link” between production and consumption.
According
to the Vietnam Association of Seafood Exporters and Producers (Vasep), the
nation currently has around 520 seafood processing facilities meeting export
requirements. Among these, there are 412 facilities and plants qualified to
export products to
One
Vasep representative, however, blasted the directorate’s restructuring
scheme, saying most of operational ones meet exporting requirements and need
no restructuring.
“If
wanting to reorganize the network, the management agency only can reduce the
number of plants under the State ownership, not those belonging to the
private sector,” said the source who asked not to be named.
Besides,
there have not been any statistics pointing out which plants are operating at
50-60% capacity and which ones are running at full capacity, and running at a
low capacity does not necessarily means low efficiency.
The
restructuring scheme will need an estimated VND40 trillion until 2020, with
10% sourced from the State budget, according to the directorate.
The
two sides reached the consensus during talks between visiting Vietnamese
Deputy Minister of Industry and Trade Nguyen Cam Tu and his Lao counterpart
Khemmany Phonsena in
In the
coming time, the two nations will create a legal framework for their
businesses’ trade and investment activities.
They
will also focus on studying a possibility of establishing a new trade
agreement that suits the current situations of the two nations, especially
when they are members of the World Trade Organisation.
The
two sides suggested measures to increase border trade, improve people’s living
conditions and maintain political stability and security in areas sharing the
border, thus contributing to fostering the Vietnam-Laos special relationship.
Two-way
trade between
SBV
holds forex rate as market steadies
An
official from the State bank of Vietnam (SBV) told local media on August 21
that there will be no adjustment of the foreign exchange (forex) rate at
present.
He
said that forex market shows good liquidity and the demand for dollars has
been met.
Earlier,
the SBV said on its website that the forex market is becoming stable while
the exchange rates at commercial banks and on the free market tend to
decrease.
It
said it will continue closely monitoring the forex market so that it could
also take measures to stabilise the market if necessary. Two months ago, the
central bank devaluated the Vietnamese dong by 1 percent.
On
August 21, some commercial banks raised dollar prices, offering from
21,060-21,075 VND for buying and 21,120-21,140 VND for selling.
Thai
Binh power plant credit agreement reached
The
Vietnam Oil and Gas Group (PetroVietnam) and its Japanese partners signed an
export credit agreement worth 141 million USD to purchase equipment for the
Thai Binh 2 Thermal Power Plant Project in
The
credit is funded by the Japan Bank for International Cooperation (JBIC), the
Bank of Tokyo-Mitsubishi UFJ (BTMU), Citibank and Mizuho Corporate Bank .
The
money will be allocated to buy steam turbines and other machinery, provided
by the Japan-based Sojitz Corporation .
The
Thai Binh 2 power plant project, which is being built in Thai Thuy district
of the Red River Delta
The
company wants to help ensure a stable electricity supply which serves the
country’s economic development and supports the business activities of
Japanese enterprises in
Source:
VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
|
Chủ Nhật, 25 tháng 8, 2013
Đăng ký:
Đăng Nhận xét (Atom)
Không có nhận xét nào:
Đăng nhận xét