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BUSINESS IN BRIEF 24/9
CPI
jumps in both major cities
The
consumer price indices (CPI) in the country's two largest cities continued to
increase in September due to a price surge in education-related commodities
and services following the start of the new school year.
Statistics
from offices in Ha Noi and
This
month's CPIs for
In
This
included education-related commodities increasing sharply at 57.2 per cent;
goods and services up 1,69 per cent; housing, power and water up 0.84 per
cent; and restaurants and catering services up 0.41 per cent.
In Ha
Noi, 10 out of 11 goods and services also increased in price. The highest
increase belonged to education-related commodities which was reported at 2.02
per cent.
The
departments said that education-related commodities and services increased at
the fastest pace this month due to the new school year, bringing with it a
high demand for books and school supplies and also some increases in school
fees.
Deputy
Prime Minister Nguyen Xuan Phuc yesterday attended the reopening ceremony of
Speaking
at the ceremony, Phuc said
He
reminded local authorities and Airports Corporation of Viet Nam (ACV) to make
full use of the newly-repaired airport to serve the socio-economic
development of the province as
During
the closure the airport's runway was expanded in width from 40m to 45m and
resurfaced to accommodate the landing of medium-size aircraft such as the
A321.
Its
terminal was expanded to 6,500sq.m to increase capacity and service 1.5
million passenger a year. During a peak hour, the upgraded terminal can serve
800 passengers and three A321 aircrafts at the same time.
A new
car park and taxi lounge with 160 parking spaces has also been built.
The
airport upgrades were completed for a total cost of VND700 billion (US$35
million) from ACV's budget.
On
September 20, the airport has accommodated flights by national flag carrier
Viet Nam Airlines and cheaper domestic carrier VietJetAir from Ha Noi and
Phuc
told local authorities to diversify tourism services to attract more visitors
to
On the
same day, Phuc cut ribbons for the completion of the upgrade work to
The
36km wide bypass upgrade cost the Ministry of Transport VND482 billion ($24
million) to complete. The bypass was put into use in 2004 to reduce
dependence on the national highway for traveling to
Seafood
firms call for administrative reform
The
Government should reduce administrative procedures related to food safety and
quarantine of seafood export from and import into the country, delegates told
a conference in
Vo Van
Phuc, general director of the Viet Nam Clean Seafood Corporation, said food
safety policies cost time and money for seafood exporters, reducing their
competitiveness.
Others
slammed the procedures for testing imported seafood, pointing out that
importers had to register for quarantine at one place and then went to
another for testing in addition to completing many procedures.
This
took much time, sometimes up to 10 days, for their goods to be cleared, they
said.
Vu Huy
Quang of Sai Gon Food Company said most import consignments came with health
certification (HC) from exporting countries, meaning they are safe, so
testing them all over again was just a waste of time.
Authorities
should therefore consider abolishing quarantining at ports or find another
way to make it easier for businesses, he said.
Nguyen
Thi Minh Tam, head of the Viet Nam Association of Seafood Exporters and
Producers (VASEP) office, said apart from monitoring production at processing
firms, authorities also tested export consignments to ensure food safety for
issuing export licences.
The procedures
took much time and affected export activities, she said.
Truong
Dinh Hoe, VASEP general secretary, said ensuring food safety right from the
early stages would be more efficient than testing export consignments.
"Most
seafood processing firms have good food safety control systems.
"We
need to focus more on checking inputs to mitigate risks involved in food
safety."
Government
programmes to control farming areas and toxic substances had seen some early
results, but they should focus more on educating farmers to be responsible,
he said.
Participants
called on the National Agro-Forestry Fisheries Quality Assurance to upgrade
its website to provide more information about food safety control and
quarantine procedures to make it easier for firms.
Ngo
Hai Phan, deputy chairman and general secretary of the Advisory Council for
Administrative Procedures Reform, promised to pass on attendees' suggestions
to the Government for consideration.
Gold
price free-for-all helps to eradicate market disparity
Gold
prices have been very volatile in recent days and the big gap between global
and domestic prices has narrowed.
On
Thursday morning the price of the precious metal in HCM City shot up by more
than VND630,000 to VND37.8 million (US$1,791) per tael of 37.5 grammes.
By 5pm
it had risen further to VND38.05 million.
There
was a slight correction as of 1.30pm yesterday, with the buying and selling
gold rates falling to VND37.75 million and VND37.90 million.
But
they remained VND600,000 higher than two days earlier.
The
trend was virtually identical in Ha Noi.
Analysts
said domestic prices were tracking a sudden global surge, with international
prices rising by US$67 per ounce to $1,360 in the last three days, a 15-month
record for a three-day period.
Nguyen
Duc Trong, sales director of Phu Nhuan Jewellery Company, said the global
price rose sharply after the
Trong
said the sharp increase in global prices has brought them closer to domestic
rates, narrowing the long-existing difference by VND1 million to VND3.2
million per tael.
Nguyen
Cong Tuong, deputy head of the Sai Gon Jewellery Company's gold trading division,
said the price increase caused many investors to rush to buy bullion since
they were afraid of a further rise.
On
Thursday SJC sold 3,000 taels, double the previous days' figure, Tuong said.
A
spokesperson for Bao Tin Minh Chau Jewellery and Gemstone Company too said
buying surged at its outlets.
Gas
industry transparency an explosive issue
Trade
fraud is an increasing problem for
Market
watch teams dealt with 400 gas trading violations in the first eight months
of the year, confiscating over 15,000 gas tanks and collecting penalties that
totaled VND2 billion (US$95,200). Many enterprises used fake gas tanks to
pump gas themselves from remote areas, said Do Thanh Lam, deputy head of the
ministry's Market Management Department.
Huu
said that authorities were too lax in granting licences to gas businesses.
Monopoly
is another pervasive problem for the gas industry. Last year, about 150
households in Ha Noi complained to the Viet Nam Consumer Protection
Association (Vinastas) that the
During
the discussion, participants also voiced worries over the surge of gas prices
in the past few months. Retail gas prices recently rose VND4,250 per kilo or
VND51,000 per 12-kilo gas tank due to the world increase. Since the beginning
of the year, the price has risen by VND77,000 per tank.
Consumers
should be quickly and accurately informed about such changes, Hung said,
since the gas price was an important factor in their cost of living.
Nguyen
Minh Phong, head of the Ha Noi Institute for Socio-Economic Development's
Economic Research Division, said the Government should prevent businesses
from controlling gas prices by requiring agencies to sell gas at list price.
Lam
proposed revoking the business licences of firms that violated LPG trading
regulations.
Last
year, the country's total gas consumption was 1.24 million tonnes. Industrial
and transport units accounted for around 35 per cent of gas consumption while
commercial units and households consumed 65 per cent.
VN
urged to court investors with local content ratio boost
The
Vietnamese Government should issue support policies to help increase local
content ratios for raw materials and parts, speakers said at a seminar held
on Thursday in
Yasuzumi
Hirotaka, executive director of Japan External Trade Organisation (JETRO),
said that Vietnamese businesses should consider the supply of locally
produced raw materials and parts as a survival matter since this would be a
decisive factor in retaining and attracting foreign investors, including
Japanese.
The
increase of local content ratios for raw materials and parts would help
Vietnamese SMEs cut production costs and improve their competitiveness.
According
to a survey by JETRO, the localisation rate in
Although
many foreign companies are eager to find long-term investment opportunities
with
Pham
Ngoc Hung, deputy chairman of the HCM City Union of Business Association,
said foreign investors often have to import materials and components from
abroad, which is detrimental to production and product prices, making it
difficult to compete with rivals.
"This
makes it difficult for
Japanese
companies look to
Hirotaka
asked the Vietnamese Government to create a support policy to promote human
resource training in industry.
Japanese
investors are concerned also about low legal compliance, unclear tax and fee
regimes, and informal costs.
A
JETRO survey of Japanese-affiliated companies in Asia and Oceania pointed out
that administrative procedures in
In
addition, the cumbersome tax system in
Hirotaka
said that "tax difficulties and entanglements can cause big risks for
trading activities of businesses."
JETRO
surveyed
Investors
also became frustrated when laws and decrees were changed frequently and not
implemented in a consistent manner across
They
added that slow administrative processing and required duplicates of many
papers in the central region and localities were big challenges.
Hirotaka
warned that
It is
expected that in the future Japanese businesses in the fiber and
manufacturing sector will move their factories and distribution systems from
Apart
from key areas such as HCM City, Dong Nai, Binh Duong, Long An and Ba Ria
Vung Tau, investment destinations would also include the Mekong Delta region,
Binh Phuoc Province, Lam Dong and the North.
According
to the Foreign Investment Agency, among the 10 biggest FDI projects in
Hung
said 60 per cent of Japanese businesses can generate profits from operations
in
Nearly
66 per cent of Japanese enterprises in
As of
June this year,
Site
clearance delays
Although
construction work on Starlake, a modern urban development area close to the
city's
Municipal
authorities said the cause of the delays was weak management capacity and a
lack of co-ordination between management agencies and the project's investor.
The
city's People's Committee recently reported on the project' progress, saying
that the implementation was "too slow."
The
Starlake was initially introduced as a mega urban project to stretch over 207
ha, spanning Xuan La Ward in Tay Ho District, Nghia Do Ward in Cau Giay
District and Xuan Dinh and Co Nhue communes in Tu Liem District. The project
is worth US$2.5 billion funded by Daewoo E&C and the Korean Development
Bank.
Nearly
one year on from the ground breaking ceremony, the project site is still
deserted despite efforts to hasten implementation from the investor and the
city's authorities.
According
to the project' investor T.H.T Development, as of July, 26 ha of land had not
been cleared for the project's first phase implementation.
T.H.T
said that it had transferred an amount of $65 million for the city's land
fund development centre, finance enough for site clearance compensation.
According
to chairman of the city's People's Committee Nguyen The Thao, adjustments to
the project's planning had also caused the project to move slowly.
He
ordered a clean site to be handed over to the investor imminently and said
that any planning adjustments must be submitted to the city for approval
within this month.
As of
the end of August, more than 91.76 ha out of 117 ha for the project's first
phase had been cleared.
Central
bank initiative reduces lending rates
The
lending interest rate is currently equal to the 2005-06 rate thanks to the
flexible interest rate cap regulations the central bank has applied since
2011, according to a report the bank released this week.
By
reducing deposit interest rates by 7-10 per cent, the bank was able to get
the lending rate down by 9-12 per cent against mid-2011.
Director
of the central bank's Monetary Policy Department Nguyen Thi Hong said that in
the second half of 2011 when inflation was high and liquidity of commercial
banks was weak, the central bank focused on strictly punishing violators of
interest rate regulations while keeping the annual deposit interest rate of
14 per cent unchanged.
In
early 2012, the central bank announced plans to cut interest rates by one per
cent per quarter on average to orient the market, Hong said. After five
successive cuts, the deposit interest rate cap was six per cent lower.
The
deposit rate also went down by roughly one per cent in the first nine months
of this year. The interest rate cap for deposits of terms less than six
months is seven per cent and the interest rate cap for longer deposits has
been removed.
Currently,
deposit interest rates at commercial banks are 1 – 1.2 per cent per year for
demand deposits, 5-6.5 per cent per year for one to six month terms, 6.5 – 7
per cent for six month to below 12 month terms and 7.5-9 per cent per year
for 12 month and 12 month-plus terms.
Lending
rates are 7-9 per cent per year for short – term loans for prioritised
sectors such as agricultural and rural development, exporters, supporting
industries, small – and medium-sized firms and high-tech enterprises. The
rates for other production and business sectors are 9-11 per cent. Borrowers
with feasible business plans or healthy financial status can access loans at
rates of only 6.5-7 per cent.
Despite
the sharp cut of interest rates, deposits in dong by mid-September still rose
13.78 per cent against December last year, proving the success of the central
bank's monetary policy management, Hong said.
Additionally,
there has not been any unhealthy competition among commercial banks to
attract depositors even though the central bank removed the interest rate cap
for long-term deposits. The new interest rate curve shows improved capital
distribution, according to Hong.
Book
examines nation's TPP prospects
A
professor at the HCM City University of Economics and a group of young
researchers have written what is the first book on the challenges and
opportunities Viet Nam has by signing the Trans-Pacific Partnership.
Assoc
Prof Dr Pham Duy Nghia, the author, said membership of the TPP is important
for
He
pointed to a similar lack of preparation before joining the WTO on 2007,
which saw the country fail to benefit as much as it should have.
The
TPP offers a second chance, he said.
For
the book, the researchers pored over information from the 17 rounds of
negotiations and the hundreds of free trade agreements between
They
speculate on the advantages and disadvantages
Of the
several key areas still under negotiation, they focus on agricultural
policies, intellectual property, state-owned enterprises, and public
investment.
Thoi
Ngoc Doan Thuy, a researcher at the Ba Ria – Vung Tau Province Department of
Industry and Trade and one of the authors, said
The
four account for 95 percent of the proposed bloc's cattle and poultry
exports.
The
book has been written with support from the university's Fulbright Economics
Teaching Program.
More
tilapia brood stocks supplied to S America
The
Tilapia Breeding Centre has exported more than 26,000 breeder tilapias to
South America, mostly to
The
centre, located in the central province of Quang
It has
exported breeder tilapias at a price of US$7-12 each since 2006.
Every
year, the centre sells about 35-50 million black and pink breeder tilapias at
least 21 days old to the northern region.
Duong
said the Institute of Aquaculture Research No. 1 had assigned the centre to
produce black and pink tilapia brood stocks to supply the domestic and export
markets.
From
2011 to 2014, the centre invested VND64 billion (US$ 3 million) to set up two
establishments for selecting and multiplying tilapias.
One
establishment will select and preserve yellow and pink parent tilapias.
The
other establishment will conduct breeding experiments with the newly created
tilapia strains on an area of 7ha.
The
centre has been selecting tilapia strains that live in non-optimal
environments and producing male-dominant tilapia flocks by hybridising parent
tilapias from different lines, Duong said.
The
aim is to produce high-quality brood stocks that can meet harsh or variable
weather conditions, he said.
By
2014, the centre will supply an additional 50 million breeder tilapias a year
for the domestic market, he added.
Moody's
awards VPBank stable rating
Global
ratings agency Moody's gave B3 ratings to the debt and deposit of the Viet
Nam Prosperity Joint Stock Commercial Bank (VPBank) in both local and foreign
currency for the first time, saying the outlook was stable.
The
ratings took into consideration VPBank's relatively advanced governance
standards and progressive management plan to modernise credit risk management
and operational controls.
The
baseline credit assessment (BCA) also reflected the bank's need for external
capital, exposure to other Vietnamese banks and aggressive turnaround plan,
which involves inherent execution and asset quality risks.
Based
on reported loans alone, VP Bank's current loan mix is 48 per cent retail, 43
per cent SME and 9 per cent corporate.
VPBank
has one of the lowest loan exposures to SOE, which accounts for only three
per cent of its overall loan book. Its retail banking strategy targets
residents of
In
addition to loans, the bank has rapidly enlarged its deposit base, which grew
by over 100 per cent between 2011 and 2012 and 29 per cent so far in 2013.
Nguyen
Duc Vinh, the bank's general director, said the bank had focused on the
retail banking segment and SMEs over the past three years with support from
world leading consulting firm McKinsey.
By the
end of last month, its charter capital was VND7 trillion with 200 units in 33
provinces and cities nationwide.
The
bank's total asset size of VND103 trillion ($4.9 billion) positions it as a
mid-tier joint stock commercial bank. It aims to become one of the three
biggest commercial banks in the country.
Binh
Duong attracts property developers
Long-term
investors seeking capital gains or rental income are increasingly looking to
the
The
province has been a leader in attracting foreign direct investment, with
almost 2,200 such projects with total capital of more than US$18 billion. Its
population last year was around 1.69 million people, of which 75 per cent
were of working age, revealing the potential of its residential market.
As of
August, there were 49 apartment and villa/townhouse projects in both the primary
and secondary markets, supplying around 11,000 dwellings – an 11 per cent
average annual increase since 2009. All residential projects are located in
the five main areas of Thuan An, Di An, Thu Dau Mot, Ben Cat and Binh Duong
New City.
This
year 18 additional projects are expected to hit the market with more than
11,800 apartments, villas and townhouses. Approximately 77 per cent are
apartments. In that segment, the price of active projects is $800-1,200 per
square metre and unit prices range from $80,000 to $120,000. In the landed
property segment, prices range from $550 to $1,000 per square metre.
The
average price in Binh Duong New City is $1,500-2,100 per square metre, higher
than in other areas. The prices at popular townhouse projects in
The
most common household size in Binh Duong is two to four people, with 73 per
cent falling in that range, making two-bedroom units the most appropriate.
Buyers
bemoan social housing deposits
The
Ministry of Construction plans to allow investors of social housing projects
to collect deposits from homebuyers, according to Deputy Minister Nguyen Tran
Recently,
the investor of the social housing project at 143 Tran Phu Street, Ha Dong
District collected a deposit of VND70 million (US$3,330) from each buyer as a
guarantee. The money will become their first payment after signing the
purchase contract; if they decide not to buy the apartment, they lose the
deposit.
Many
registered to buy apartments in social housing projects but ultimately
decided not to buy them, said Hoang Van Anh, chairman of Song Da Urban
Development and Construction Company. This made investment in such projects
risky. The move aimed to lessen the risk for investors by ensuring that
buyers actually intend to follow through with the purchase, he said.
According
to Vu Van Phan from the ministry's Housing Department, there are regulations
on deposits for commercial house purchases but none for social housing.
But
many buyers object to the new practice, saying that investors of social
housing projects already receive incentives from the Government.
Many
social housing projects had not yet been started, so buyers sometimes waited
for years to move into their apartments, said one buyer of an apartment in a
social housing project in Hoang Mai District.
Pham
Sy Liem, deputy president of the Viet Nam Federation of Civil Engineering
Associations, said that if investors of social housing projects were allowed
to collect deposits from buyers, the contract must specify that failure to
hand apartments over to buyers within the deadline would necessitate financial
compensation.
Liem
urged the construction ministry to collect feedback from homebuyers as well
as investors to ensure that the rights of both parties were protected.
As of
the end of August, commercial banks committed to provide 331 individuals with
VND105.32 billion (US$5 million) in loans from the Government's VND30
trillion ($1.42 billion) support package for the property market, according
to the State Bank of
Vietcombank
led the five banks involved in loan disbursement with a commitment to provide
VND44.89 billion in loans for 135 individual borrowers, followed by
Vietinbank with VND29.47 billion for 92 borrowers and BIDV with VND16.3
billion for 40 borrowers.
GPBank
is among nine fragile banks which were to be restructured under Government
schemes to strengthen the domestic banking system. While eight other banks
have been reorganised, GPBank's plan is still under consideration.
The
State Bank of Viet Nam (SBV) said on Monday that it was consulting Prime
Minister Nguyen Tan Dung about the remaining weak bank, and there was a
possibility that the bank would be consolidated with capital contribution
from a foreign credit institution.
GPBank
has over VND3 trillion (US$142.86 million) in equity, according to its
website.
UOB –
providing multi-area services globally through networks in Asia Pacific,
Western Europe and
It is
among
The
Singaporean bank first invested in
Domestic
regulations currently allow foreign investors to own a maximum equity of 15
per cent in local banks, or 20 per cent in special cases permitted by the
Government.
A
revised regulation under Government consideration says that foreigner
holdings can exceed 30 per cent with special permission for the sake of the
credit institution restructuring process.
The
eight banks that have been restructured through mergers or self-reorganisation
are TrustBank (now Viet Nam Construction Bank), Ficombank, Sai Gon Commercial
Bank, TinNghiaBank, Habubank, Western Bank, Navibank and TienPhong Bank.
The
SBV said it would specify more weak institutions for drastic treatment in
this year, while affirming that the credit institution system was operating
better than it did in the first eight months of 2013.
Da
Lat resort awarded Green Lotus for landscape
Da Lat
Edensee, a resort in the
In the
Certificate of Excellence, Da Lat Edensee was recognised for its magnificent
location offering the most spectacular natural setting in Da Lat.
The
Green Lotus label indicates that the resort has made efforts to protect the
environment, use natural resources and energy efficiently, contribute to the
preservation of heritage and the development of the local economy, culture
and society, as well as pursue sustainable tourism development, according to
the ministry's official website.
Central
province breaks ground on $35m resort
Thanh
Trung Ninh Thuan JSC has started construction of the US$35 million Nui Chua
Eco-Resort on the coast of the south central
The
provincial People's Committee vice chairman, Vo Dai, said the project in the
It
would be a link between major tourist sites in neighbouring localities, such
as Nha Trang, Da Lat and Mui Ne, he added.
Dat
Xanh reveals real estate e-commerce website
Dat
Xanh Group unveiled 123muanha.vn, the country's first real estate e-commerce
website, on Wednesday.
The
website will supply customers with detailed information about property
projects throughout the country and allow them to select property and pay a
deposit.
The
company aims to use the site to expand access to the national real estate
market.
1,000
low-price apartments up for sale in Ha Noi
Muong
Thanh Real Estate trading centre released 1,000 low-price commercial
apartments in Kim Van-Kim Lu Urban Area, Ha Noi's Hoang Mai District for sale
on Thursday.
With
prices of around VND12 million (US$570) per square metre for apartments
ranging from 50 to 60 sq.m per unit, they drew the attention of many
low-income earners. About 800 units were sold on the release date, according
to Dien Bien Construction Company No 1.
However,
buyers often must pay an additional VND30-50 million ($1,430-2,380) for
intermediaries.
ANZ
Viet Nam opens office in Binh Duong Province
ANZ
Viet Nam on Thursday opened a representative office in the southern
The
bank's CEO, Tareq Muhmood, said the office would focus on supporting
customers involved in food and beverage processing, animal feed, textiles,
garment and leather production, packaging and furniture.
"The
new office confirms our commitment to the local market," he said.
Samsung
establishes R&D Centre in Ha Noi
Samsung
Electronics Viet Nam (SEV) will establish a research and development centre
for mobile and smart electronic products at
The
10,000 sq.m centre will serve all Samsung factories in
SEV is
a member of
Cashew
exports likely to boom towards end of year
Cashew
exports will pick up in the remaining months of this year, the Viet Nam
Cashew Association has forecast.
The
association cited increasing prices of exported cashew nuts in recent months
as strong evidence of an imminent upturn.
The
export price of cashews, which averaged less than US$6,300 per tonne in the
first two quarters, had risen to $7,600 per tonne by early August.
Over
the past eight months,
IT
firm wins $2.5 million contract in
FPT
Information Systems (FPT IS) announced it had won a US$2.5 million
telecommunications contract with a Lao trade partner on Thursday.
Following
the deal, FPT IS and Lao Telecom Company will join hands to develop payment calculation,
customer management and service distribution systems.
FPT IS
has secured a firm foothold in the Lao market. In April, the firm inked
another contract with Lao Telecom Company worth $1 million.
Ha
Noi prioritises trade infrastructure
The
capital city is prioritising a plan to develop infrastructure for trading
activities, contributing to socio-economic development, according to the
municipal Department of Industry and Trade.
The
priority is implemented in the 2011-2015 period and will be continued in the
next five years. Over the recent time, the city has been promulgating many
policies so as to develop as well as monitor the system of markets in the
locality.
To
date, the capital counts 414 markets, 122 supermarkets and 26 plazas which
play an important role in supplying commodities to the city as well as Song
Hong (Red River) Delta.
HCM
City to host world textile machinery exhibition
Around
200 Vietnamese and foreign companies are expected to take part in an annual
textile and garment machinery exhibition to be held in HCM City next month.
The
companies – including from China, Germany, India, Japan, Taiwan, and the US –
will display their products and technologies at more than 360 booths at the
four-day event to open on October 24.
There
will be machines for spinning, weaving, knitting, yarn processing, cloth
cutting, sewing, and laundry, chemicals, and garment accessories on display.
The
organisers, Viet Nam Exhibition and Advertising Company and Taiwan's Chan
Chao International Co, hope the exhibition will provide local companies
access to advanced machinery and technologies, enabling them to improve
product quality.
Notch
joins Riverorchid group to build top Indochina network
Notch,
one of Viet Nam's longest established and leading digital agencies, signed an
agreement on Wednesday to merge with Riverorchid, Indochina's specialist
communications network.
Tarun
Dhawan, managing director of Notch, said the strengths of Notch were a
significant presence and client base in Viet Nam, while riverorchid Digital
has existing operations not just in Viet Nam but also across Cambodia,
Myanmar, Laos and Thailand.
The
combination aims to build Indochina's premier specialist digital network
embedded within Indochina's specialist communications network.
Bank
deposits still seen as safe
Despite
declining deposit interest rates, people see bank savings as a safe
investment channel in the context of rising price pressure and market
turmoil.
In the
first eight months, total deposits at credit institutions grew about 10.5 per
cent, although deposit interest rates fell by 2-3 percentage points.
Deposits
in dong were up by about 11 per cent.
Industry
insiders estimated that in the latter part of the year, deposit interest
rates would not change much, but deposits might increase.
"The
current interest rate is quite stable, benefiting both banks and
depositors," said Vo Thi Sanh, BIDV director of managerial information
and ALCO assistance.
BIDV
recently slashed the rate for 3-11 month terms by an additional 0.25-0.5
percentage point and kept rates for more-than-12 month terms unchanged at 8
per cent annually in order to encourage long-term deposits.
"Let's
say there is no way for people to put their money in. If somebody has idle
money, they could make profits from savings," said Nguyen Thanh Toai,
ACB's Deputy Director.
Some
Ha Noi branches also reported good footfall for short-term deposits, which
accounted for 50 per cent of the total.
"At
the present time, I prefer the three-month term to longer time frames as it
gives me a sense of flexibility," said Do Dang Tan, whose nine-month
deposit was just due at Techcombank.
Tran
Thi Dung, a customer at Vietcombank, added that he always chooses short terms
because "with a big amount of money, a very slight increase or decrease
in interest rates makes a big different in profit."
However,
a few investors disagree.
"I
know short terms are more flexible but I don't see a possibility of interest
rates increasing. So I'm trying my luck with a one year term to enjoy the 8
per cent rate. In an emergency, I can always mortgage my savings to borrow
money immediately," said Pham Thi Hoa, a retail investor.
WTO
link doubles total trade
Viet
Nam's total trade value last year reached US$228.31 billion after six years
of participation in the World Trade Organisation (WTO), double what it was
when the country joined in 2007, according to the General Department of
Customs.
The
figure shows that the country's total import-export value in 2007 surged 31.3
per cent, or $26.52 billion compared to 2006, the highest growth rate in the
period of 2003-12. In 2011, its total import-export value was $200 billion.
Viet
Nam's foreign trade growth was also reflected in its world ranking. The WTO
ranked the country 50th and 42nd in terms of export and import revenue in
2003. However, Viet Nam moved up 13 positions to 37th in exports while its
imports jumped 18 positions to 34th.
Nguyen
Minh, head of the Ha Noi Institute for Socio-Economic Development's Economic
Research Division, said the WTO accession had positively impacted the
macroeconomy and businesses.
He
said enterprises should comprehend this integration more thoroughly and
accurately in order to plan development, map out practical investment plans,
avoid risks, diversify businesses and delve into professional research.
Exports
to US accelerate this year
Viet
Nam accelerated exports to the US market over the past eight months,
resulting in a record trade surplus of US$11.68 billion, according to the
General Department of Customs.
Exports
rose modestly by 4 per cent year-on-year to $15.14 billion, while imports
dropped by 5 per cent to $3.46 billion.
Two-way
trade has increased significantly in recent years, especially after Viet Nam
joined the WTO in 2007. Despite the negative impact of the global economic
recession, trade last year still topped $24.49 billion, more than double the
figure recorded in 2007.
Trade
surplus with the US jumped from $10 billion in 2010 to $14.8 billion in 2012
thanks to increasing exports of goods such as garments, timber products,
seafood and footwear. Key imports from the US are machinery, equipment,
tools, computers, electronics and components, cotton, plastic material,
animal food and soybeans.
The US
is now Viet Nam's second biggest trading partner after China. However, Viet
Nam's exports account for only 1 per cent of US imports, with the country
ranking 40th out of nations with the greatest export value to the US.
Experts
suggested domestic businesses closely obey US market regulations and
requirements to minimise the risk of being blocked by anti-dumping and
anti-subsidy legislation.
Failed
FDI projects lose their licences
Seventeen
foreign direct investment (FDI) projects abandoned by investors in southern
Dong Nai Province had their investment certificates revoked this year,
according to the province's Industrial Zone Management Board.dy exodus of FDI
investors since the early 2000s, leaving around 47 abandoned projects worth
US$100 million in the area.
A $2
million project by Haileck started in 1997 to develop pipelines in Nhon Trach
1 Industrial Zone. However, investors retreated in 2010 with the company
halting all operations in the country.
In a
similar fashion, Richway Plastics Company shut down a $3 million project to
build a factory in Nhon Trach 3 Industrial Zone with investors fleeing only
four years after the project commencing in 2006.
The
Dong Nai Industrial Zones' Management Board has pointed to project losses and
financial difficulties as the major causes for the sudden flight of capital
from the province. However, the board also blamed Viet Nam's bankruptcy proceedings
as too tedious and costly for investors to wind up the projects properly or
with due notice.
The
sudden disappearance of FDI projects has left thousands of labourers without
jobs and despite efforts to contact investors, no response had been received
by the province's Management Board.
Nguyen
Manh Van, deputy director of the management board, said dealing with
abandoned FDI projects had been difficult due to the lack of detailed
regulations in the Law on Investment.
He
said the Ministry of Planning and Investment had since issued a document
providing instructions for the handling of the projects early this year.
Inspection
of the remaining 30 FDI projects left unattended is also underway, he said,
adding that the projects were often inefficient and distorted employment
opportunities.
"Handling
these projects is urgent and now we have the regulations to resolve
outstanding issues" he said.
Source:
VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
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Thứ Hai, 23 tháng 9, 2013
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