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BUSINESS IN BRIEF 3/9
Local
shopping website signs deal with Sumitomo
E-commerce
website Tiki.vn inked early this week a strategic partnership with Japanese
corporation Sumitomo.
A
strategic partner of Tiki, the Japanese corporation will own a 30 per cent
stake in the Vietnamese e-commerce website, which started by selling books,
but now trades in a great variety of products from fashion to electronics.
The
deal is a series B round of funding for Tiki, which secured series A funding
from the Japanese investment fund CyberAgent Ventures in 2012.
The
funding from Sumitomo will help Tiki.vn, in a bid to better serve its
customers countrywide, boost investment in their warehouses, delivery
network, as well as research and development on new products, the company
said in a press release.
Viettel
expands mobile market in Cameroon
Vietnamese
telecommunications operator Viettel has announced an exciting new tie-up with
Bestinver Cameroon S.A.R.L to build mobile network Viettel Cameroon S.A.R.L
and provide advanced integrated mobile services in the African country.
The
joint venture is set to become the largest telecommunications company in the
country, with 6,000 employees and a network covering 81 per cent of
Phung
Van Cuong, chief information officer of Viettel Group, said: "This
agreement marks our significant commitment to
With
smarter computing solutions from US-based IBM Corporation, the joint network
will develops its 3G infrastructure and provide high-speed mobile data and
voice services.
HP
unveils SME-tailored servers
HP on
Thursday launched a range of their ProLiant server brand servers that aims to
help small and medium-sized businesses (SMEs) to simplify the deployment time
and the management and maintenance of their technology infrastructure.
Pham
Vinh Thai, HP Viet Nam's Technology Director said SMEs are challenged by
limited financial and human resources when responding to growing customer
demands and evolving business needs.
He
said the new HP ProLiant MicroServer Generation 8 (Gen8) has been an ideal
first server that provides simplified set-up, and management and maintenance
with some of its technologies.
Further,
the microserver offers centralised, anywhere, anytime data access for
employees to boost productivity and collaboration through data sharing – and
it is small and quiet enough to sit on a desk.
Thai
Nguyen steel mill starts work
The
Thai Trung Rolling Steel Joint Stock Company on Thursday inaugurated a rolled
steel mill with a capacity of 500,000 tonnes per year in the
With
total investment of VND1.3 trillion (US$61.3 million), the 66,000- square
metre project is part of efforts to expand production of the Thai Trung
Rolling Steel JSC, a subsidiary of the Thai Nguyen Iron and Steel Corporation
(TISCO).
The
factory was equipped with the latest technologies from
New
PP duties a blow for businesses
The
tax adjustments are mentioned in Circular No 107 recently issued by the
Ministry of Finance.
The
circular contains changes to preferential import tax rates on certain
commodities that have been in force since September 26, 2013.
According
to the Viet Nam Plastics Association (VPA), PP is one of three major raw
materials used in producing plastic items, so households that make low-value
utensils will suffer the most from the tax hike.
Domestic
firms only turn out 150,000 tonnes of PP annually while local demand is
750,000 tonnes per year, forcing industry players to import 600,000 tonnes to
make up for the shortfall, VPA reports.
Based
on current import prices of $1,500 a tonne, enterprises will have to pay an
extra VND500 billion to import the same volume when the tax rate is raised to
3 per cent.-
Mitsubishi
recalls faulty vehicles
For
safety reasons, Vinastar, the sole distributor for Mitsubishi in
The
company fears that the steering wheel at the front of the vehicle could
disrupt stability.
Vinastar
also said the risk of fire and fuel leakages was heightened by technical
errors.
The
recall applies to 707 Mitsubishi Triton and 1,291 Pajero Sport cars with
models produced between 2011 and March 2013.
Viet
Nam Register has recommended people to bring all vehicles under the recall to
the agents authorised by Vinastar for examination and replace the new ones as
soon as possible.
The
examination will be conducted from September 3.
Refurbished
Metro An Phu reopens
Metro
An Phu officially re-opened on Thursday after two months of renovation and
expansion.
Metro
Cash & Carry Viet Nam said it has expanded its An Phu outlet in District
2 to 8,000sq.m, enabling it to distribute more than 25,000 food and non-food
products.
The
expansion is part of its efforts to support its distributors and serve
customers better, company officials said.
Metro
An Phu is currently the largest distribution centre for fresh food products
in the country's modern trade channels, with more than 1,200sq.m earmarked
for the purpose.
Vietinbank,
JFC hold customer forum
VietinBank
and Japan Finance Corporation (JFC) and the Japan External Trade Organization
(JETRO) held a customer conference for Japanese small and medium-sized
businesses operating in
The
conference aims to concretise the content of the co-operative terms on
providing financial services to Japanese businesses which was signed by
Vietinbank and JFC in May this year.
Under
the agreement, the JFC will introduce VietinBank's services to small - and
medium-sized Japanese enterprises and issue Stand-by Letters of Credit to
guarantee their loans at VietinBank.
The
two sides also agreed to promote information exchange, as well as introduce
potential partners and clients to each other.
VietinBank
will provide diversified services for its customers, including services on
deposit, accounts, cash management, internet banking, foreign exchange.
Especially, VietinBank will provide flexible financing solutions to meet
capital needs quickly and efficiently for clients.
SBV
gold auctions continue to grow
The
State Bank of Viet Nam (SBV) sold 19,700 taels to 13 credit institutions on
Friday at VND38.45-38.48 million ($1,831-1,832) per tael at its 57th auction.
The
Saigon Jewellery Company (SJC) posted gold prices of VND38.20-38.45 million
($1,819-1.831) on its website at 3pm yesterday, while international gold
prices declined to $1,396 per ounce, or $1,682 a tael, on the kitco.com
trading floor.
This
made gold prices in
Since
the first SBV gold auction in March, the bank has sold more than 58 tonnes of
gold.
On
Friday morning the yellow metal inched up in
According
to International Enterprise (IE)
Among
the key imports from
The IE
Singapore also reports that
Of
Topping
Singapore's domestic exports to Vietnam in the first seven months was mineral
fuel oils, waxes and products (over S$1.35 billion); followed by printed
books, newspapers and products of printing industry (about S$395 million) and
electrical machinery (about S$386 million).
Two-way
trade between
Support
industry stumbling despite development demand
Although
the support industry was among prioritised sectors for
The
Ministry of Industry and Trade held the conference, aiming to create
advantageous conditions for the development of support industry in member
countries of APEC.
According
to Sotaro Nishikawa, director of the Japan External Trade Relations
Organisation (JETRO) in Ha Noi,
Jetro's
survey on more than 8,000 Japanese enterprises operating in Asian countries
showed that only 27.9 per cent of Japanese enterprises in
Although
the country had lower labour costs, the total production costs in
The
general secretary of the Viet Nam Chamber of Commerce and Industry, Pham Thi
Thu Hang, said the development support industry of
The
co-ordination of domestic manufacturers with FDI enterprises also remained
weak, while the capacities of local small and medium-sized enterprises (SMEs)
could hardly meet the demand of quantity and quality for production of big
foreign companies, she said.
According
to Hang, the Government of Viet Nam should have had policies to grasp chances
when the ASEAN region was becoming the world's component supply centre, while
selecting core industries to focus investments in.
Cao Bao
Anh from the ministry said that the support industry of
Anh
pointed out that an advantageous environment was necessary to encourage
investments in support industries, stressing the importance of research and
development (R&D), technology transfer and infrastructure development.
According
to Koji Ito from the Japanese Ministry of Industry and Trade, developing
support industry played an important role for a country to engage deeply into
the global value chain and integrate into the world market.
Mainly
drawing the participation of SMEs, the support industry needed incentives
from the Government to increase the competitiveness, he said.
Fisheries
sector seeks to net FDI
Provinces
involved in rearing and catching fish have called for foreign investment in
the processing industry.
This
is seen as a way of increasing the income of farmers who are paying high
input costs, according to the chinhphu.vn site.
In
June, the People's Committee of central
The
Japan-Viet Nam Friendship Association suggested that Binh Dinh province
should send farmers to
Fisheries
enterprises from
Other
coastal provinces, including Quang Ninh and Ba Ria – Vung Tau, have promoted
programmes to attract foreign investors.
Nguyen
Viet Thang, chairman of the Viet Nam Tra Fish Association, said foreign
investment in the fisheries sector was low.
However
he advised the sector to be careful that foreign investors did not dominate
the local market.
Vingroup's
profits up five fold
Property
giant Vingroup (VIC) said it earned a revenue of VND3.13 trillion (US$147.6
million), a drop of 17 per cent over last year.
However
its net profit during this period reached more than VND4 trillion ($188.6
million), almost five times more.
The
jump in profits was due to the selling off of several subsidiaries to other
companies.
The
group's total assets as of June 30 reached over VND58.5 trillion ($2.7
billion), a rise of VND2.7 trillion ($127.3 million) compared to the end of
last year.
This
was raised mainly from the
Foreign
sales weigh on bourses
Low
valuation after several falling sessions helped buoy investors' trades last
Friday but strong selling by foreign investors throughout the week,
particularly in blue chips, pushed the two markets down overall.
On the
HCM City Stock Exchange, the VN-Index lost 2.9 per cent during the week,
closing the Friday session at 427.70 points, while the HNX-Index on the Ha
Noi Stock Exchange fell lower 0.37 per cent to a close at 61.19 points.
Pessimism
overshadowed both markets, driving down liquidity.
The
daily market volume on the southern bourse declined 27 per cent, averaging 43
million shares worth over VND865.5 billion (US$41.2 million) per session.
The
northern bourse showed similar figures with more than 16.1 million shares
worth VND144.5 billion ($6.9 million) exchanged per day, down nearly 30 per
cent compared to the previous week.
Continuous
net selling by the foreign sector in large-cap shares such as dairy giant
Vinamilk (VNM), insurer Bao Viet Holdings (BVH), Vietcombank (VCB),
Vietinbank (CTG) and property developer VinGroup (VIC) were attributed to the
market tumble.
The
VN30, monitoring the top 30 flagship shares, retreated 2 per cent to 531.23
points.
Overseas
investors concluded last week as net sellers on the southern market,
unloading combined shares worth VND370.3 billion ($17.6 million). They were
also net sellers on the Ha Noi market with a net sell of VND54.2 billion
($2.6 million).
The
stocks mostly sold were in the portfolio of the Market Vectors Viet Nam
exchange-traded fund (VNM ETF). The fund's investors withdrew around VND137
billion ($6.25 million) during last week's trades. Particularly, about
300,000 VNM fund certificates worth $5.6 million were sold last Monday.
According
to many stock analysts, the unloading of shares by the foreign sector in
Mounting
political instability in the
In
"In
the short term, foreign investors will likely sell shares in the domestic
market. Their strong sells will negatively affect major stocks such as BVN,
VNM, VIC or MSN which increase the possibility of a further reduction in the
VN-Index," said Le Thi Bich Hang, analyst at FPT Securities Co.
Along
with weak macro economic data, especially the return of inflation in August,
the domestic market was predicted to be volatile in the short term and may
retreat 450-455 points, Hang wrote in a report.
Committee
proposed to regulate State firms
The
Ministry of Planning and Investment would like to set up a committee in
charge of managing and supervising State-owned enterprises (SOEs) in an
effort to enhance their operational efficiency.
The
ministry said that the foundation of this committee would help separate the
ownership and the State management function, which complied with
international practices.
This
management model would help control the operation of SOEs while enhancing
their accountability and creating a fair playing ground for SOEs and other
economic sectors.
According
to economic expert Tran Du Lich, the foundation of a committee in charge of
managing and supervising SOEs was necessary, saying that no SOEs would be
under the management of ministries or local authorities except public service
enterprises.
He
said the committee must be responsible for continuing the restructuring of
SOEs – one of three focuses of economic restructuring.
However,
expert Le Dang Doanh said that he was worried that the operation of such a committee
would not be effective due to the large number of SOEs, adding that thorough
privatisation was important.
Statistics
showed that the number of SOEs was around 1,000, down from 5,655 in 2012
following privatisation, with more than 1,200 others with State holdings.
Innovation
vital for global business
With
the economy not recovering and natural resources running out, innovation and
creativity have become imperative for businesses globally, experts said.
They
said the benefits brought by money, machines, and labour are limited compared
to those yielded by creativity and innovation, which decide the
competitiveness of a company.
But
not many Vietnamese businesses realise that, they lamented at a conference in
Underlining
their point is the fact that last year
But
they admitted that companies and entrepreneurs have to pay a cost for
creativity and for creating an innovative environment.
One
attendee said it is time for Vietnamese companies and the whole economy to
embrace the world's innovative trends, which would bring new energy.
Sai
Gon Beer Alcohol Beverage Joint Stock Corporation is one company that has
adopted innovative methods.
Pham
Dang Tuat, its chairman, said companies must believe in their own strengths
and not be chained to market trends, adding this is the only way to be
creative and innovative.
Another
delegate said most Vietnamese firms depend on Government policies rather than
innovate by charting their own course.
To
innovate and create, a company must ensure that human resources at all levels
– from managers to staff – have effective strategies, he said.
At the
conference, which was attended by 300 business executives and experts,
delegates analysed the common aspects behind the successes of Google,
Facebook, and Apple.
Experiences
related to managing and developing innovative methods at big companies were
also discussed.
The
conference was organised by Viet Nam Report and online newspaper Vietnamnet.
Ministry
vows to tackle tax transfer pricing
Transfer
pricing - the trick of misrepresenting tax bands to avoid paying extra –
poses a serious headache for tax collectors, so the APA is intended to avoid
future transfer pricing disputes by entering parties into a five-year fixed
agreement on their tax band.
Taxpayers
may enter into APAs with more than one tax authority – i.e, bilateral or
multilateral APAs – through the mutual agreement procedure (MAP) included in
most income tax treaties. Unilateral APAs involve agreements between the
taxpayer and one government.
Pilot
participants include Samsung and other FDI companies, under which, these
companies will declare their costs, prices and projected profits in
MoF
also released a draft circular advising on the application of the APA in tax
administration.
In
another move to avoid tax fraud, the Amended Tax Law regulated that though
frauds can be punished up to five years from the date of the violation,
offending tax payers must now pay the full amount owed if their frauds were
committed in the past 10 years.
Accordingly,
tax authorities can inspect any suspected cases from the past 10 years - if
they find any frauds they can collect the amount of tax owed and punish the
tax collector responsible for the oversight.
Can
Tho pursues industrial park development
Despite
struggling to attract new investments, Can Tho has decided to speed up
construction of industrial parks, hoping investors will return when the
global economy recovers.
The
Cuu Long (
It
also blamed the reduction in incentives and inconsistency in investment
policies.
Industrial
parks and export processing zones have only managed to attract five new projects
with a total investment of $18.6 million in the first eight months, CEPIZA
said.
Another
16 projects have increased their investment by $20.7 million, it added.
There
are now two IPs – Tra Noc 1 and 2, both almost fully occupied – and the city
is building six more, namely Hung Phu 1, 2A, and 2B, Thot Not, O Mon and Bac
O Mon.
Hung
Phu 1 (270ha), Hung Phu 2A (134ha) and Hung Phu 2B (62.63ha) will come up in
Cai Rang District, four kilometres from the city centre, 12km from the
airport, and 11km from the main port.
They
are also situated near Cai Cui Seaport and warehouse and are equipped with
modern equipment and services.
They
can fully meet investors' electricity, water, and telecom needs.
They
will prioritise investment in certain sectors like mechanical engineering,
electronics, and agricultural and seafood processing.
The
600ha Thot Not IP is situated in Thot Not District, 60km from the city centre
and conveniently located near National Highway 91 and the
It
will mainly focus on agricultural and seafood processing and manufacture of
agricultural machinery.
The
600-ha O Mon and 400-ha Bac O Mon will be built in O Mon District, and the
city is looking for developers.
CEPIZA
has told IP developers to report on difficulties they face so that it can
resolve them.
Can
Tho has so far attracted of $1.87 billion in 205 projects, including 23
foreign projects worth $184.44 million.
Cooking
gas prices continue to increase
The
retail price for a 12kg gas canister rose by VND12,000 (US$0.57) from Sunday
in line with rising world prices.
This
is the fourth time the price has increased domestically this year.
The
retail gas price of a 12kg canister of Sai Gon Petrol Co is now VND398,000
($18.95), while Gas Pacific Petro and Petrolimex Sai Gon are selling for
VND397,000 ($18.90) and VND404,000 ($19.23), respectively.
Rubber
plant opens in Phu Yen
A new
rubber processing plant worth VND25 billion ($1.19 million) opened its doors
last Saturday in the central
Financed
by Dang Phuc Gia Limited Co, the plant, the first ever of its kind in the
province, will provide 6,000 tonnes of products annually.
The
exports, despite witnessing a yearly rise of 5 per cent in volume,
experienced a decrease of 14.1 per cent in value.
VN
exports to
The
latest addition took
A
trade centre aiming to advertise Vietnamese goods to the market would be
established in
Vietinbank
pays high dividends
Vietinbank
(CTG) has announced it will pay a dividend in cash at 16 per cent of charter
capital. The rate is the highest amongst the commercial banks.
The
total cash payment will mount to nearly VND4.2 trillion (US$198.1 million),
in which State shareholders will receive VND3.37 trillion ($158.9 million).
The
charter capital referred to is the level before the Bank of Tokyo-Mitsubishi
UFJ became its strategic foreign partner, equivalent to VND26.2 trillion
($1.2 billion).
The
dividends are expected to be paid on September 24.
Development
firm posts losses
The
Kinh Bac City Development Company (KBC) has recently announced its audited financial
statement for the first six months of this year, revealing losses of VND70.75
billion (US$3.3 million), a surge of VND9 billion ($424,500) compared to the
initial report.
The
biggest change after the audit was the deferred corporate income tax in the
first six months.
The
company had reported its deferred tax at VND43.3 billion ($2 million), while
the audit shows that the figure was just VND29.3 billion ($1.38 million).
Analysts
tip FDI to skyrocket
Foreign
direct investment (FDI) inflows in Viet Nam is expected to sharply increase
in the 2014-15 period as the stable economy would create favourable
conditions for the flow.
The
National Financial Supervisory Committee (NFSC) last week released the latest
forecasts for the economy in the 2014-15 period, showing that the FDI would
see a high growth rate because of world economic improvement.
The
World Bank earlier predicted that the world economy would have a growth rate
of 3 per cent and 3.3 per cent in 2014 and 2015 respectively, much higher
than 2.2 per cent this year.
In
addition, the committee said FDI attractions would be higher as Trans-Pacific
Partnership Agreement (TPP) would be signed in 2015.
It
added that domestic private investment would also be improved because
supporting policies will be brought into play in the next few years, while
solutions to restructure the banking sector and resolve bad debts would
upgrade the financial system.
Exports
are forecast to continue at a high growth rate due to FDI projects, and would
be momentum for the economy, the NFSC said.
However,
the committee said the economy would be challenged by risks of public debt in
Europe and decreasing growth in
Domestic
enterprises would still face difficulties, especially in the agricultural
sector. The State budget balance would be limited, causing capital shortage
for development.
It
also said
The
NFSC said total social investment capital would have to reach 30-31 per cent
of GDP in 2014 and 2015; credit growth at 15 per cent and exports at 12-14
per cent in 2014 to jump to 13-15 per cent in 2015, to achieve the above
mentioned GDP growth rate.
The
committee also sees inflation of around 7 per cent in 2014 and to fall to 6.5
per cent in 2015. Its forecast for this year's GDP growth of 5.3 per cent.
It
said the Government's policies should focus on improving demand and supply in
the economy, enhancing productivity and effectiveness.
It was
the reason that economic restructure acceleration played an important role to
create new changes for the economy, it added.
The
Government should also take solutions to gradually improve agriculture and
rural areas while supporting local industry and businesses.
The
outlook is given based on business and operation results in the first eight
months of this year and forecasts about the global economic situation given
by credit institutions worldwide.
Construction
firms report crumbling turnovers
Firms
under the Ministry of Construction in August made a turnover of VND11.81
trillion (US$557 million), bringing the total for the first eight months to
nearly VND94.84 trillion ($4.47 billion), down 7.2 per cent year-on-year.
Of
this total, the turnover of industrial and construction materials in the
first eight months was VND38.895 trillion, up by 3.7 per cent, data from the
ministry showed.
Cement
production in January-August reached 33.32 million tonnes, equal to 59.5 per cent
of the annual target.
The
industry sold roughly 30.57 million tonnes of cement domestically and
exported roughly 8.79 million tonnes in the first eight months, equal to 63
per cent of its annual target.
During
this period, the turnover from consulting services for the construction
industry also fell by 6.6 per cent to VND832 billion.
Earnings
from other fields including housing and infrastructure also dropped 1.1 per
cent to VND2.58 trillion.
The
industry's import value in August was $34 million, making a total of $135
million for the same period. The imports were mainly machinery and equipment.
The
industry earned an export value of $114 million in eight months, equal to
67.8 per cent of its annual target.
The
ministry added that it will keep a close watch on the real estate and
construction material markets and suggest more effective measures on how to
improve management and boost growth to the state budget.
Supervising
the publishing of an index of construction prices in cities and provinces
nationwide will also be undertaken to create a more competitive and
transparent housing market, it said.
Nicola
Connolly, vice chairwoman of Eurocham (European Chamber of Commerce), said "
"Making
the right decision is absolutely key, especially as ASEAN starts taking more
shape."
She
spoke of the fact that an estimated 40 per cent of the economy is in the
hands of the State sector is not a problem in itself.
However,
the preferential treatment that State-owned companies receive in some areas,
including favourable access to land and credit, and having limited profit
targets generates inefficiency that is hampering economic growth, she said.
She
said
While
the Government has expressed the desire and need to move away from a labour intensive
economy into technology and value added areas, investors are unlikely to
bring their technology to
Furthermore,
"our members are finding it difficult when laws and decrees are not
implemented in the same way across
Paik
In Ki of Kocham (Korean Chamber of Commerce) hoped the Vietnamese Government
will offer more support and be active in solving difficulties that foreign
businesses face.
In the
first seven months of this year, South Korea invested US$12 billion in Viet
Nam, of which newly-invested capital was $7 billion (in 667 projects), and
additional capital for existing businesses constituted the remaining $5
billion.
Kimio
Yamaguchi, chairman of the Japanese Business Association in
He
said Japanese businesses are facing several difficulties ranging from
"very fundamental issues to daily operational and administrative
ones."
These
include poor transport infrastructure, road safety concerns, duplication of
many papers needed under the e-customs system, restrictions on overtime work
and mandated minimum increases in salaries that affected companies' business
plans.
"We
understand that these issues are not easily solved very quickly and some of
the issues may come from lack of information and understanding on our end.
"In
this regard, we believe that regular dialogue on such specific issues between
foreign investors and central and local government is very important and
essential," Yamaguchi said.
Rational
decisions
Nguyen
Thi Dan, head of the labour management and wage division under the HCM City
Labour, Invalids and Social Affairs Department, said the mandated increases
in minimum wages were based on socio-economic figures and living standards of
workers.
Before
issuing a decision, the Government collected opinions from foreign
associations and informed them in advance of the decision so that the latter
can prepare their business plans well, he said.
And
the minimum salary has only been increased by 10-15 per cent instead of the
30 per cent suggested by foreign associations.
Do
Nhat Hoang, head of the Ministry of Planning and Investment's (MPI) Foreign
Investment Agency, said current laws allowed overtime work not exceeding 300
hours per year.
The
limit is necessary to protect the health of workers as also give them time to
recover their strength, he said.
Herb
Cochran, executive director of Amcham (American Chamber of Commerce), said
"The
World Bank and the IMF have concluded that Viet Nam is in a ‘structural
growth slowdown,' because the ‘delayed and inadequate implementation of
structural reforms, including … bad debts in the banks, SOEs, and public
investment, are dragging down the country's long-term growth
potential,'" an Amcham statement said.
It
noted "a lack of Government-business coordination on structural reforms
for both State-owned enterprises (SOEs) and small and medium enterprises
(SMEs) to increase competitiveness and adapt to the WTO environment."
Amcham
recommended that SOEs be restructured and managed with transparency,
responsibility, and accountability, and that they operate on a "level
playing field" with private sector enterprises, both Vietnamese and
foreign invested ones.
The
radio service quoted Russian experts saying both counties need to adopt a new
approach to economic, trade and investment cooperation, as traditional
methods are no longer suitable in the current context.
Oil
and gas exploration projects symbolise Vietnam-Russia cooperation
(Photo:vietsovpetro)
The
experts said priority will be given to establishing free trade areas (FTAs)
with
Evgeny
Popov, Director of the Department of Asia and
“We
are planning to simultaneously sign FTA and investment agreements with the
prioritised projects,” said Popov.
The
radio service reported many big Russian companies are keen to invest in big
projects in
Inter
RAO, a Moscow-headquartered diversified energy holding company, is
considering
VSMPO-AVISMA
Corporation wants to build a titanium powder plant, while Geopromining is
interested in a project to modernise an ilmenite manufacturing factory in
Other
Russian companies are engaging in the Dung Quat oil refinery expansion
project.
Uralvagonzavod
has proposed establishing a joint venture company in
According
to the experts, Vietnamese companies also show their interest in Russian
projects. The Vietnam Oil and Gas Group (Petrovietnam) is teaming up with
leading Russian companies to exploit oil and gas in the two countries’
territories, as well as in the third countries.
Other
Vietnamese businesses want to establish joint venture companies in
At
present Russian investment in
Footwear
exporters urged to seize new opportunities
Vietnamese
leather and footwear exporters must take advantage of a shift in demand from
Their
advice was based on increasing orders for Vietnamese goods from countries
such as
They
said foreign importers are shifting orders for leather and footwear products
from
Ho Thi
Kim Thoa, Deputy Minister of Industry and Trade, said Vietnam aims to bring
modern technology and prominent brands to the domestic industry.
The
Vietnam Leather and Footwear Association (LEFASO) said importers of prominent
leather and footwear products on the world market are planning to shift their
orders from China to Vietnam to capitalise on cost and labour advantages.
Dang
Van Chien, Director of the Hung Yen Footwear Joint Stock Company, said the
trend is merely a “signal” and that foreign importers have just visited
Vietnam to conduct market research.
In
fact, there remain snags in attracting foreign orders, adding that high
taxes, production costs and limited capacity need to be addressed first.
Currently, 80 percent of footwear exporters in Vietnam are engaged in partial
production of footwear products with limited capacity for end-to-end
production, including design work.
Domestic
producers still find it difficult to invest adequately in new technologies
for lack of management skills, not to mention their failure to predict
foreign market trends.
He
urged the Government to support training programmes aimed at improving the
quality of the labour force and attract more foreign partners.
LEFASO's
deputy chairman, Diep Thanh Kiet, said enterprises should review their market
strategy, improve their competitive edge and set up areas specialising in the
production of raw materials.
In the
first seven months this year, Vietnam's footwear export value jumped 15.6
percent from last year to US$4.79 billion.
Binh
Duong’s FDI attraction surpasses yearly target
The
southern province of Binh Duong attracted US$1.49 billion in foreign direct
investment (FDI) in the first eight months of 2013, surpassing its target of
US$1 billion set for this year.
During
the period, the province licensed 88 new FDI projects worth US$648 million,
bringing its total FDI projects to 2,174 with combined investment of over
US$18.4 billion. It also saw US$400 million added to 88 existing projects.
This
year, Binh Duong province has seen more investment from large groups, not
only operating in industrial production but also real estate and services.
Among
new outstanding projects are the Hoa Binh-Binh Duong VSIP Complex with a
total investment of US$199 million and Japan-based Panasonic Eco Solutions
Vietnam Company’s US$38 million electric equipment project in VSIP industrial
park.
In
order to lure more foreign investment in the coming time, the locality
continues to boost administrative procedure reform and enhance investment
promotion through consulates, trade offices and business communities while
improving the quality of workforce and services and ensuring security and
social order and safety, especially in industrial parks.
Besides,
Binh Duong will also pay more attention to attracting new investment projects
in high-tech industries such as electricity, electronics, pharmaceutics and
precision mechanics as well as giving priority to developing support
industries for garment, footwear and woodwork and services such as health,
education and banking.
Businesses
honoured with Gold Star Award
As
many as 200 businesses were presented with Vietnam Gold Star Award in Hanoi
on September 2, recognizing their efforts to improve performance and
accelerate international integration.
Congratulating
the 200 awardees, Deputy Prime Minister Nguyen Xuan Phuc said the Party and
State always create the best possible conditions for businesses of all
economic sectors to develop rapidly and maintain success.
Young
entrepreneurs and businesses in general should focus more attention on
developing reputable brand names on a par with international level,
Phuc urged.
“Given
the global unexpected complications, I believe Vietnamese businesses, with
their dynamism and creativity, will shoulder the burden with the government
to overcome difficulties,” said the Deputy PM.
He
asked relevant agencies and local authorities to ease business difficulties,
including accelerating administrative reform, to support the business
community. The award recipients, representing 200 outstanding brand names of
various economic sectors, earned over VND743 trillion in revenue, and VND71
trillion in post-tax profit, contributed to VND6,000 billion to the State
budget and generated 466,000 jobs last year.
The
top ten Gold Star Award Businesses’ include FPT, Thaco, Vietinbank, Vissan,
Phu My Fertiliser, VRG, Traphaco, PVEP, Thien Long and HoaSen Group.
This
year’s Vietnam Gold Star Award marked its 10th anniversary. Over the past ten
years, the award has become a prestigious prize, raising the profile of
Vietnamese brand names and businesses in the international integration
process.
Source:
VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
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Thứ Ba, 3 tháng 9, 2013
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