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BUSINESS IN BRIEF 5/9
Manufacturing
sector moves closer to stabilization: HSBC
The
August survey says, there was a survey record increase in employment as
manufacturers were in the positive for activity.
Profitability
remained under pressure, however, as output charges were little changed, but
input prices rose at the sharpest pace since March. Rising transportation
costs were widely reported.
The
headline seasonally adjusted Purchasing Managers’ Index™ (PMI™) recorded 49.4
in August. That was an improvement on July’s 48.5 and the best reading since
April but, by remaining below the 50.0 no-change mark, signaled a marginal
deterioration of manufacturing operating conditions.
New
orders received by
Latest
data showed that new export orders also continued to decline. The marginal fall
was the third in successive months. Export market conditions were reported to
have remained tough, but were showing signs of stabilisation.
Manufacturing
production volumes fell for a fourth month in succession during August.
The decline was linked to a fall in new orders. In line with the trend for
sales, the degree to which output fell was modest.
Manufacturers
were again able to make inroads into their work outstanding during the latest
survey period. Backlogs of unfinished orders fell for the seventeenth
successive month, and again at a marked pace.
Falling
backlogs in part reflected a depletion of inventories. Warehouse stocks fell
marginally for the first time in three months. Additional capacity also
helped companies to keep on top of workloads. Employment rose in August for
the first time since April, with the rate of growth solid and the sharpest in
the survey history. Recruitment reflected positive forecasts for production
and orders.
Profits
came under further pressure, reflective of two factors.
Firstly,
output charges were little changed. Competitive pressures, efforts to
stimulate sales and client requests for reduced prices all weighed on average
tariffs.
Secondly,
input prices rose at a marked and accelerated pace. Inflation was the sharpest
since March. Higher transportation costs and a rise in the price of oil and
associated derivatives were reported as key inflation drivers.
Commenting
on the Vietnam Manufacturing PMI™ survey, Trinh Nguyen, Asia Economist at
HSBC said that “
Seminar
features
The
Addressing
the event, Nguyen Thi Hong, Vice Chairwoman of the municipal People’s
Committee, said the model should expand into other fields to lure investment
and acquire technology.
Claire
Phillips, an expert from the UK Public-Private Partnership Agency, said the
model aims to meet demand for the overhaul and modernization of public
services by making costs more transparent.
According
to her, PPP is an important tool for procuring public services but it needs
appropriate research and application in concrete fields to bring expected
results.
At the
event, representatives from the UK Export Credit Agency provided information
about financial support for
PPP is
a model in which public projects enjoy private investment. Some
industrialized nations even adopt the policy of transferring public services
to the private sector.
The
model is popular in transport, infrastructure, education and waste treatment,
benefiting 100 countries and territories worldwide.
Osaka
businesses explore cooperation with Vietnam
Osaka
Industrial Development Agency Chief Kyoko Hirose has affirmed her province’s
small and medium-sized enterprises regard cooperation with
During
a September 3 working session with Ha
After
visiting some Japanese businesses in Ha
Kyoko
said Ha
The
province intends to build an exclusively Japanese industrial zone.
Kyoko
highly praised provincial leaders’ management for facilitating the effective
operations of its 40 Japanese investors.
The
Provincial People’s Committee announced it will soon welcome more Japanese
business delegations from Kansai and
HCMC
hosts five international exhibitions
Five
international exhibitions are taking place at
The
centre will host the International Plastic and Rubber Industry Exhibition
(Vietnam Plas 2013), Vietnam International Packing and Printing Industry
Exhibition (Vietnam Pack 2013), Vietnam International Print & Label
Industry Exhibition (Vietnam Print and Label 2013), Vietnam International
Food Processing & Pharmaceutical Industry Exhibition (Vietnam Foodtech
and Pharmatech), and Linkage Industry Vietnam—Machine Tool and Automation
Exhibition (Linkage Metalworking Vietnam 2013).
With a
total of 460 booths, the exhibitions feature more than 260 foreign and
domestic enterprises from 15 countries and territories including
Displays
range across plastic pressure machines, glass blowing machines, automatic PET
bottle blowing machines, paint drying machines, milling machines, printers,
and packaging production machines.
Vinaxad
Deputy Director General Pham Quynh Giang said the events are excellent
opportunities for local plastic producers to forge international
relationships, learn about emerging technologies, and improve the
competitiveness of domestic products.
The
exhibitions were organised by the Vietnam National Trade Fair and Advertising
Company (Vinaxad), the Chan Chao International Enterprise Group, the Yorkers
Trade and Marketing Service Company, Paper Communication Exhibition Services,
Vietnam Plastics Association (VPA), and Vietnam Rubber Association (VRA).
Eight-month
export revenue approaches US$85 billion
The
Ministry of Industry and Trade (MoIT) has estimated
The
MoIT said export revenue hit US$11.5 billion and imports were valued at
US$11.8 billion in August alone, rising 5.2 percent from July.
Import
turnover for the year thus far totals US$85.4 billion, 14.9 percent higher
than the same period in 2012.
At the
MoIT’s online conference on September 3, many participants attributed the
rising import surplus to a sharp decline in values of key export items,
including seafood and other agricultural products.
Vietnam
Food Association Deputy Chairman Pham Van Bay said current global rice market
fluctuations have dramatically impacted Vietnamese rice’s export price.
Abundant Indian and Thai rice supplies force prices down.
The
MoIT stressed the need to minimise inventory levels and stabilise market
prices. Other priorities include facilitating the support industry’s
development, ratcheting up administrative reform, and expanding export
customer bases, especially if the yearly US$127–128 billion export value
target is to be achieved.
Aquatic
exports up 1.3% in 8 months
The
export value of aquatic products are estimated at US$591 million for August,
bringing the total turnover in the first eight months of this year to US$4
billion, a year-on-year increase of 1.3%.
According
to statistics by the Ministry of Agriculture and Rural Development, the
Exports
to
However,
decline was seen in exports to the
Ministry
slashes coal tax in bid to clear stockpiles
The
Ministry of Finance has cut the coal export tax from 13 per cent to 10 per
cent in a move to help coal producers reduce their high stockpiles. Under
Circular 124/2013/TT-BTC, the tax cut takes effect this week..
The
move was made following a proposal from the country's largest coal producer,
Vinacomin. The group asked the Government to revoke a July hike in export
tariffs, saying this had had a disastrous impact on its business.
According
to the group, since the Government raised coal-export tax from 10 per cent to
13 per cent in July, its coal export volume has dropped to only 120,000
tonnes a month, only a tenth of the previous amount.
The
group said the rise in tariffs meant that export prices had to increase
significantly. Taxes and fees now make up 30 per cent of the production cost
of export coal, and 20 per cent of coal sold to domestic customers.
To
avoid loss, Vinacomin had to raise coal export price, making its products
less competitive in the wake of low world demands.
The
Industry and Trade Ministry also reported that coal exports in July fell by
91 per cent in volume and 80 per cent in value compared to June. Coal exports
in the first seven months of this year reached 7.8 million tonnes, grossing
US$561.4 million.
Due to
the low demand, the group estimates it had stockpiled about 7.9 million
tonnes of coal at the end of August.
The
group claims that it can only export a maximum of one million tonnes of coal
in H2, down six million tonnes against the first half. It further claims that
this will cause a loss of thousands of billions of dong to the State budget.
Vinacomin
said it expected to sell about 2.9 million tonnes of coal this month while
producing 3.2 million tonnes.
Manufacturing
sector shows greater stability
The
Purchasing Managers' Index survey for August released yesterday by HSBC
Vietnam signalled a near stabilisation in the country's manufacturing sector.
"Although
output and new orders continued to fall, they did so at marginal rates,"
the report said.
"There
was a survey record increase in employment as manufacturers signalled
positive expectations for activity."
Profitability
remained under pressure, however, as output charges were little changed but
prices rose at the sharpest pace since March. Rising transportation costs
were widely reported.
The
headline seasonally adjusted PMI recorded 49.4 in August, an improvement on
July's 48.5 and the best reading since April but, by remaining below the 50.0
no-change mark, signalled a marginal deterioration in operating conditions.
New
orders received by
Market
activity remained slow, according to respondents, and customer demand, soft.
But there were reportedly pockets of growth, meaning new work only contracted
marginally.
New
export orders also continued to decline, falling marginally for a third
successive month. Export market conditions remained tough but showed signs of
stabilising.
Manufacturing
volumes fell for a fourth straight month in August as new orders declined.
But, in line with the sales trend, the degree to wich output fell was modest.
Manufacturers
were again able to make inroads into their backlog during the latest survey
period, causing it to fall for the 17th successive month and again at a
marked pace.
This
also reflected a depletion of inventories. Warehouse stocks fell marginally
for the first time in three months. Additional capacity also helped companies
to keep on top of workloads.
Employment
rose for the first time since April, with the rate of growth the sharpest in
the survey history, reflecting the positive forecasts for production and
orders.
Profits
came under further pressure, reflective of two factors: Prices changed little
due to competitive pressures, efforts to stimulate sales, and client requests
for reduced prices but costs rose at a marked and accelerated pace.
Inflation
was driven also by a rise in the price of oil and associated derivatives.
Commenting
on the survey, Trinh Nguyen, Asia Economist at HSBC, said: "
"Global
demand is expected to pick up towards year-end thanks to a recovery in the
The
HSBC Vietnam Manufacturing PMI is based on data compiled from monthly replies
to questionnaires sent to 400 manufacturing companies.
The
central city of
A
total of US$180 million was to be invested in total for the projects – a
public park and an underground car park – in the city's downtown area.
The
developer Vien Dong Land Corporation was granted construction permission in
2008, but no progress has been made since a ground-breaking ceremony took
place five years ago.
The
city instructed the Department of Natural Resources and Environment to
withdraw the two projects to make room for other investors and developments.
"The
city will halt more delayed projects following final decisions at a meeting
of the city's Party Committee and the People's Council," said department
director Nguyen Dieu.
"We'll
release a full list of delayed projects that will be revoked this
month."
According
to an unofficial survey, the city has 30 slow-moving projects.
The
city has attracted 259 FDI projects worth $3.62 billion in total.
Meanwhile,
last month 210 domestic businesses registered total investment capital of
VND388 billion or $18.5 million.
Promotions
increase City holiday sales
Several
supermarkets in
Big C,
which offered discounts of 50 per cent on 1,500 products and will continue to
offer 49 per cent on 4,000 others almost through next month, said the rise in
sales was as it had expected.
Duong
Thi Quynh Trang, the French supermarket's director of Public Relations and
Foreign Affairs, said sales of items with big discounts, such as essential
goods, fresh and processed food, household utensils, garments, and cosmetics
increased sharply.
Since
it expected higher sales, it increased stocks as well as the number of
cashiers, security officers, and free delivery and other services.
Co.opmart,
the country's biggest supermarket chain, reported a more than 50 per cent
jump in sales during the holiday. It is offering discounts of up to 50 per
cent on more than 2,000 products and this will continue virtually through
September.
Vo
Hoang Anh, marketing director of Saigon Co.op, said fresh food sales saw the
sharpest increase — by 70-80 per cent — over normal days.
Other
supermarkets like Maximark and Citimart also reported a jump in sales during
the holiday.
Nguyen
Thi Phuong Thao, director of Maximark Cong Hoa, said revenues were up 20-30
per cent, adding customers preferred discounted items.
A fair
at the Phu Tho Indoor Stadium in District 11 that kicks off
The
fair, which closes today, has more than 400 stalls selling textile and
garments, foodstuff, household appliances, consumer goods, and others.
Saigon
Co.op has begun a nation-wide promotion programme to popularise Vietnamese
goods called Dong Hanh Cung Hang Viet 2013 (Go together with Vietnamese
goods).
The
highlight will be about 150 mobile sales at discounts and with freebies by
the supermarket chain's vehicles in many provinces in all parts of the
country such as Vinh Long, Ca Mau, Binh Duong, Ba Ria-Vung Tau,
The
goods that are offered at discounts – of 5-50 per cent — include high-quality
essential goods, food, garments, and utensils made domestically.
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).
Possible
new market for fruits economically fruitful
Four
types of Vietnamese fruits may be licensed for exporting to the
The
Minister of Agriculture and Rural Development, Cao Duc Phat, made the
statement after a meeting with the
This
would be a good sign for the Vietnamese vegetable agriculture industry, as
few fruits and vegetables are currently allowed into the
One of
the changes would include the opening of a new market for longan, welcome
news to farmers.
Currently,
most of longan in Hung Yen is sold in the local market, but recently some
have been illegally exported to
Concerning
the developing plans between the
However,
Hoang Trung, from the MARD’s Department of Plant Protection Department, said
that the issue is more complicated. In order to get a license, Vietnamese
fruit exporters must meet several strict requirements such as listing
diseases and epidemics, the chemicals used and methods of harvesting and
packaging processes.
He
hoped that, apart from longan in
Many
hope that the agreement could allow
More
state-owned enterprises find salary payment violations
On
August 31, Huynh Thanh Khiet, Deputy Director of the municipal Department of
Labour, Invalids and Social Affairs said, the cases of these eight firms came
to light after the case in which leaders of four state-owned public-service
firms in HCM City received a salary of VND2.6 billion per year (USD123,809).
He
added that to legalise big salary payments for the employees, these companies
use a trick by signing seasonal contracts of less than three months with
employees who meet all conditions to sign long-term contracts.
The
eight companies use their employee salary fund for bonuses for directors,
deputy directors and chief accountants. Due to violations in signing
contracts and salary calculations, many workers at these companies are not
offered anything in terms of social and health insurance.
Regarding
salaries given to the employees, Le Ngoc Thuy Trang, Head of Corporate
Finance Board under the HCM City Department of Finance, said this is a
blatant violation of the Labour Code.
According
to Mrs. Trang, the enterprises’ salary fund includes the fund of the
management board and workers. Under regulations, salary for managers is based
on their positions, and they have no right to use the employees'’ salary
fund.
The
recent inspection showed that the leaders of four state-owed public service
companies in
At
City Urban Drainage Company, Public Lighting Company, Saigon Traffic
Construction Company and the Green Park Company, the average wage was VND22.2
million per month (USD1,000) while the figure at other state companies was
only VND7.3 million. The case has caused public outrage.
While
managers and regular employees collected average salaries, day-labourers and
temporary employees were making much less.
Economist
Pham Chi Lan said she does not understand how state management agencies can
let this violation happen. This will affect people’s trust, particularly in
the context of the current economic downturn.
The
employees have been overpaid for a long time, but this was out of the control
of management agencies, including those involved in taxation. It creates
public doubt about the co-operation between the companies and authorities.
She
added that lots of garment and textile companies achieved good business
results, but the salaries of their managers account for just one third of the
salaries of the managers of the four suspect firms.
Meanwhile,
the Minister and Chairman of the Government Office,Vu Duc Dam, said the
prime-minister’s salary is nearly VND15 million (USD714.2) per month
and the level for leaders of economic groups is no more than VND36 million.
Bonuses for them are not allowed to exceed VND10 million (USD476.2).
Lawyer
Tran Cong Ly Tao, Deputy Head of HCM City Lawyers Association said the
above-mentioned salaries for the employees show signa of criminal
violation.
Rice
price falls after stockpiling program over
Ever
since the Government rice stockpiling program ended, the price of paddy in
the Mekong Delta provinces has fallen by VND 200-500 per kilogram compared to
the beginning of August.
In Can
Tho City and neighboring provinces, traders bought fresh low-grade paddy IR
50404 at VND 4,000-4,200 per kilo. The price of fresh long-grain paddy
varieties, such as OM 6976,
According
to experts, domestic paddy price dropped due to a decrease in rice export
price. In addition, as firms no longer received preferential interest rates
from banks, they could not continue to buy local rice at high prices any more.
After
a brief surge, rice export price has gone down in the past two weeks.
Currently, 5-percent-broken rice was sold at US$ 385-395 per ton, down from
US$ 405-415 per ton at the beginning of August. 25-percent-broken rice also
declined by US$ 15 per ton to US$ 350-360 per ton.
Vietnam
Food Association recently sent a letter to Prime Minister Nguyen Tan Dung and
relevant ministries, asking for purchase of 300,000 tons of late
summer-autumn and autumn-winter crops for stockpiling from September 15 to
October 16 and preferential interest rates for firms participating in
purchase for two months, starting from September 15.
BIDV
borrows US$140 million from foreign banks
Bank
for Investment and Development of Vietnam (BIDV) has signed a contract with
seven foreign banks to borrow a syndicated loan worth US$140 million.
This
is among largest sums of its kind ever lent to a Vietnamese commercial bank
over the past years.
According
to BIDV’s press release, the seven lenders are Cathay United Bank, China
Construction Bank, Indovina Bank, Far East National Bank, Shanghai Commercial
and Savings Bank, Vinasiam Bank and Hua Nan Commercial Bank. However, the
bank did not tell about term, interest rates and conditions of the loan.
“The
US$140-million syndicated loan will help BIDV supplement foreign currency
capital source,” said Quach Hung Hiep, deputy general director of BIDV.
As of
the end of June, BIDV ranked third in the country in terms of total assets
with over VND521 trillion after Agribank and Vietinbank. Its credit growth
rate was nearly 11%, bad debt ratio 2.57% and after-tax profit over VND2
trillion.
HDBank
acquires financial firm SGVF
HDBank
has obtained approval in principle from the central bank to acquire 100%
equity of Société Générale Viet Finance (SGVF), one of the largest
foreign-owned consumer finance companies in
SGVF
will become a subsidiary of HDBank. The transaction, the first one of its
kind, will pave the way for other institutions in
However,
HDBank did not disclose the value of the transaction.
SGVF,
100% owned by Société Générale, is a consumer finance company that was
licensed by the central bank in 2007. Currently, SGVF has around 1,100
employees with a network stretching to 42 provinces across
SGVF
has provided consumer finance services to more than 125,000 individual
customers through 300 partners and over 800 service introduction points
located at motorcycle and electronic vendors throughout the country.
HDBank
plans to retain the whole system, business partners, customers and employees
of the finance company.
Le
Thanh Trung, deputy CEO of HDBank, said in a statement that this merger and
acquisition (M&A) transaction is in line with international trends and
within the restructuring plans advocated by the Government and the central
bank.
HDBank
will continue the pursuit of the ambitious development of SGVF in the
consumer finance market and will maintain a similar human resources structure
post acquisition, Trung added.
Vinamilk
raises milk cows in Thanh Hoa
Vietnam
Dairy Products Joint Stock Co. (Vinamilk) plans to establish Thong Nhat Thanh
Hoa Cow Milk Co., a subsidiary specializing in raising milk cows in
The
new offshoot will be set up in cooperation with Thong Nhat Co. based in
The
new company will develop a farm of 2,600 hectares and have 26,000 cows.
According
to a representative of Vinamilk, the farm will be developed in many phases
under the model of farms in
Vinamilk
now has five milk cow farms whose scales are 2,000-3,000 cows each, and the
number of cows of the five farms is over 8,000. The firm plans to increase
its herd to some 25,500 in 2015 and 28,000 in 2016.
To
achieve such targets, Vinamilk has set aside over VND1.5 trillion to invest
in four new farms in Tay Ninh, Ha Tinh and Thanh Hoa provinces.
In
related news, HCMC has plans to increase the capacity of milk cows raised in
the city from 5,000 kilograms per head a year to 8,000 kilograms by using
farming techniques from
The
city on Tuesday opened the Dairy Demonstration and Experimental Farm in the
outlying district of Binh Chanh. The project aims to help farmers reduce
farming costs and increase the milk productivity.
According
to the HCMC Department of Agriculture and Rural Development, the current
average capacity is 5,000 kilograms.
Under
the project, the experimental farm will provide training courses as well as
transfer farming technology of
Covering
over ten hectares and consisting of different sections, the experimental farm
has been developed at a cost of over VND70 billion, with the city’s budget
accounting for over VND59 billion and the rest sourced from
Currently,
Vietnam has around 170,000 milk cows, with HCMC alone accounting for nearly a
half, at 83,000 cows, followed by Nghe An Province with around 30,000 head of
cattle.
Self-defense
measure taken for domestic oil
The
Ministry of Industry and Trade last week signed a decision to adopt a
self-defense measure for refined soy and palm oil taking effect from
September 7, slapping an additional 5% on top of the current import tariff
for the edible oil.
Under
the decision, in addition to import tariffs, refined soy and palm oil
imported to
This
is the first time Vietnamese enterprises have succeeded in asking for
self-defense measures for domestic products when foreign products of the same
categories are imported into
Last
November, Vietnam Vegetable Oils Industry Corporation (Vocarimex) made a
petition to the Vietnam Competition Authority and the Ministry of Industry
and Trade to adopt self-defense measures. The ministry initiated the
investigation and sent questions to relevant sides one month later.
On
April 22, the ministry decided to take a self-defense measure after a period
of investigating relevant issues.
Vocarimex
as the petitioner received supports from four domestic oil producers, which
are Tuong An, Tan Binh, Cai Lan and Golden Hope-Nha Be.
These
five companies account for 100% of the domestic vegetable oil production
while prevailing regulations allow for initiating such a measure if
petitioners hold a combined 50% of domestic production, according to the
Ministry of Industry and Trade.
According
to the ministry, the increasing volume of imported vegetable oil left an
impact on the domestic production, causing material injury to local players.
The market share of domestic producers dropped from 52% to 27% in the
2009-2012 period while the market share of imported oil increased from 48% to
73%.
The
market share decline resulted in a fall in production. The domestic
production dropped by 32% last year while the import volume rose by up to
45.83%. Besides, revenues and profits of domestic producers contracted
sharply by 38% and 31% respectively compared to those of 2011.
“The
decline in domestic production was seen clearly last year and tends to
continue in the coming time. If so, domestic producers cannot avoid losing
market share,” said the ministry’s report.
HCMC
hosts more dialogues with FIEs
City
vice chairman Le Manh Ha admitted this to foreign investors during last
Friday’s dialogue co-chaired by him and Do Nhat Hoang, director of the
Ministry of Planning and Investment’s (MPI) Foreign Investment Agency. The
dialogue was attended by companies from Europe,
Ha
elaborated by saying that more direct communication would needed for
officials and administrators to understand the problems companies faced and
then solved them.
Herb
Cochran, executive director of AmCham
AmCham
will continue to cooperate with Vietnamese business and industry associations
to help Vietnamese firms become “qualified suppliers” in US supply chains.
“And
we recommend that the people’s committee and relevant departments, as well as
business and industry associations, provide support for this effort as well.
This will help develop supporting industries in
EuroCham
vice chairwoman Nicola Connolly said, “
She
warned that European countries may be looking to other Asean markets while
mentioning returned skepticism of
“This
brings us back to the same high level that we experienced last year,” she
said.
Meanwhile,
Japanese Businesses Association Ho Chi Minh City (JBAH) chairman Kimio
Yamaguchi said Japanese investments would increase continuously to
“But
we have to say that the current business environment in
Eight-month
rice export fetches over 2 billion USD
The
figure included over 521,000 tonnes shipped in August, which brought home
229.7 million USD.
According
to the VFA, the price of dry unhusked rice in the Mekong Delta provinces
ranges from 5,100-5,400 VND per kilo.
VFA
forecast that rice export this year can reach 7.5-7.6 million tonnes.
Last
year, the country shipped a record 7.72 million tonnes of rice, earning 3.45
billion USD.-
VietinBank
and JFC strengthen ties
Vietinbank,
Japan Finance Corporation (JFC) and the Japan External Trade Organization
just inked at a deal at a customer conference for Japanese small and
medium-sized enterprises (SME) in
The
agreement stipulates that the JFC will promote Vietinbank expansive services
to Japanese SMEs and issue Stand-by Letters of Credit to guarantee their
Vietinbank loans.
The
services to be promoted include accounts and deposits, cash management,
internet banking, and foreign exchange. Most importantly, Vietinbank will
provide flexible financing solutions to meet clients’ capital needs quickly
and efficiently.
The
lending terms on this financing will range from one to five years and will be
calculated in Vietnamese dong to avoid risks resulting from the floating
interest rate policy. The rate will also be open to periodic revisions to
help diversify firms’ financial resources.
According
to Vietinbank deputy general director Pham Huy Thong, the bank has formed a
specialised section (the Japanese Desk) to build and maintain high-quality
relationships with Japanese partners and to support Japanese customers in
accessing Vietinbank’s diverse capital sources.
“Japanese
SMEs can access a full suite of highly effective and practical services at
Vietinbank which would help them keep up with their capital expansion plans
and scale-up operational efficiency, and thereby forge stronger relations
between Vietnam and Japan,” Thong said.
“I
expect that Vietinbank’s advantages will make it a top choice for Japanese
firms doing business in Vietnam,” said JFC executive director Takamichi
Harada.
Health
market looks robust
The
growing demand for healthcare services in Vietnam not only offers big
opportunities for healthcare services providers, but also makes the country a
profitable market for medical equipment manufacturers.
Seven
Japanese medical equipment manufacturers comprising Konica Minotal, Toshiba,
Fujifilm, Olympus, Hitachi, Mitsubishi Electric and Nihon Kohden have
presented their most advanced equipment in Hanoi, with an eye on expanding
their sales in Vietnam.
“Vietnam
is the fastest-growing economy in Southeast Asia, and the demand for
healthcare here is growing rapidly too,” said Nobuyuki Hatakeyama, deputy
manager of International Sales Division, Toshiba Medical Systems Corporation,
adding that the strong growth would lead to greater demand for advanced
medical equipment.
He
noted Vietnam had great potential for Toshiba to expand its medical equipment
sales. “We are providing products and services to Vietnam from Toshiba
Medical Systems Asia in Singapore, and two of our cutting-edge Aquilion One
systems have already been installed and are in use. Using the latest
technologies, we will continue to contribute to Vietnam’s medical sector by
developing high-quality products that meet local needs,” he said.
In the
latest financial report, Toshiba’s medical sector revenues in Vietnam reached
$60 million.
With a
population of nearly 90 million and increasing average incomes per capita,
Vietnam’s private and public healthcare services are lagging behind growing
demand. Espicom Business Intelligence, a UK-based company providing business
intelligence on medical devices, pharmaceuticals and healthcare across global
markets, estimates 92 per cent of Vietnam’s medical device market was
supplied by imports this year, and the sector was growing rapidly. Japan,
USA, Singapore and China were the leading suppliers, accounting for 50 per
cent of the imports in 2012, the publication noted.
“There
is a big gap between central and provincial hospitals in Vietnam now. Central
hospitals are far better-equipped than provincial hospitals. When the
Vietnamese government upgrades the public hospital system and when private
investors build more new hospitals, there will be major opportunities to
provide equipment,” said Hironobu Kawano, general manager of Asia-Pacific
Sales Marketing Department, Olympus.
Olympus
established a representative office in Vietnam in 1997 to begin local
services based on sales and post-sales customer care. In 2005 Olympus Medical
Systems Vietnam Company, a subsidiary company of Olympus group, was
established with Hanoi as headquarters and a branch office in Ho Chi Minh
City.
“Our
business in Vietnam is very good,” said Kawano. “Since 2009, average revenue
growth has reached 30 per cent.”
Fujifilm
is also expecting to expand business in Vietnam. Takaaki Ueda, general
manager of Endoscopy Systems Division of Fujifilm Corporation, said Fujifilm
planned to bring advanced products such as ultrasound systems and double
balloon enteroscopy which are routinely performed in Japan, however are not
common in Vietnam because there are higher needs for specific educational
programme.
“Our
next challenge in Asia regarding endoscopy sales is to increase the number of
physicians capable of using endoscopes in order to increase the demand for
endoscopy systems and achieve a higher sales growth ratio,” said Ueda, adding
that the firm would open a training centre in collaboration with Japan’s
Nagoya University and Hue University for the training of around 20-30
physicians per year in Vietnam.
Japanese
ODA charges Vietnam power development
Japanese
official development assistance (ODA) loans play a vital role in ensuring
Vietnam’s power projects continue moving forward and power supply keeps up
with demand.
Japan
has been a consistent supporter of Vietnam’s power supply projects in the
areas of supply, transmission, and distribution.
The
state –run Electricity of Vietnam (EVN) currently has conducted 12 power
projects in progress funded by over $5 billion in ODA loans from Japan, of
which seven are completed. The remainder are in active progress.
Since
1995, the total Japanese ODA toward power projects totaled $11 billion, of
which $5.34 billion came from the Japan International Cooperation Agency. The
Asian Development Bank has distributed capital totaling $2.37 billion, said
an EVN report.
EVN
reported that during 2011-2012, ODA loans totaled around $4 billion with EVN
receiving $3.5 billion. This has been particularly handy in 2012, as the
company found it difficult to source capital from banks.
Power
projects funded by the Japanese government made up nearly 18 per cent of
EVN’s power supply and 10 per cent of the national power system.
Notably,
in 2011 Vietnam and Japan signed a cooperation agreement on the Ninh Thuan 2
nuclear power plant. Accordingly, Japan will support Vietnam in preparing for
and implementing a nuclear energy programme, as well as training human
resources for the plant and developing nuclear power regulations.
The
Ninh Thuan 2 nuclear power plant would have a capacity of 2,000 MW with two
turbines and will be built in the province of the same name. It would be
Vietnam’s first nuclear power plant and follows Vietnam’s power development
strategy and was approved by the 12th National Assembly. The $12 billion
project is slated to start in 2014, with the first phase to begin commercial
operations by 2020.
EVN
said that it was aiming to get Japanese ODA support of around $1.5 billion
between 2013-2015 for developing the Duyen Hai 3 power plant, transmission
projects, human resources, and infrastructure necessary for nuclear power.
EVN
asserted that as a leader in high-tech innovation, Japanese investment would
be bolstered by technology exchange.
Under
Vietnam’s Power Development Plan towards 2020, it is envisioned that the
total power capacity of Vietnam will be increased to 75,000 MW by 2020 and
146,800 MW by 2030.
With
electricity consumption rising by 12 per cent a year, current projects would
not keep up with demand. The dry season is particularly difficult, with
Vietnam relying heavily on hydro-power, which makes up 40 per cent of the
country’s total production.
From
now to 2015, EVN needs at least $25.3 billion to for its power generation and
transmission projects.
Source:
VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
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Thứ Tư, 4 tháng 9, 2013
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