|
BUSINESS IN BRIEF 19/11
Investors
leasing new apartments to thaw market
Many
property investors have converted apartments for sale to those for lease to
cut the selling price.
In the
past two years, Vingroup gave up on selling apartments in many projects due
to the downturn of the local property market.
A
group representative said the move aimed to protect the interests of
customers who had already bought apartments, adding that the group had a
long-term leasing strategy.
The
investor of a luxury apartment project in
At the
Elegant Tay Ho project, which has 400 apartments for sale, the investor
considered leasing 60 rather than selling them.
Do
Quang Lam, deputy general director of Tan Hoang Minh Group, said that whether
such conversions were successful depended on the location of the project as
well as the financial ability of the investor.
CBRE
Vietnam Co Ltd said demand for serviced apartments was still stable in terms
of number of inquiries, but tenants' budgets had declined by approximately 10
percent quarter on quarter.
Serviced
apartments on the west side of the capital city continued to be in high
demand, especially for units in the 1,000-2,000 USD range, due to the emergence
of the office hub along Pham Hung road and growing Japanese and Korean
communities in the surrounding area.
The
upcoming Samsung factory in northern Thai Nguyen province is also expected to
generate increased demand for serviced apartments in
Rents
are expected to become more competitive due to companies' tightened budgets.
In terms of location, the Tay Ho area will face pressures to reduce rents as
more supply comes on line, particularly when Lotte Center Hanoi opens in the
second quarter of 2014.
Projects
in the central business districts (CBD) still face competition from new
projects on the western side of the city.
Unsold
condominiums or parts of hotels are being increasingly converted into
serviced apartments and other serviced apartment projects are considering
expansion possibilities, especially in the Tay Ho area.-
Golden
promotion days boost sales in Hanoi
A
golden promotion weekend held on November 16-17 tripled the number of
customers at supermarkets and shopping centres in
On
November 16 alone, sales at the three golden sales points greatly contributed
to the over 30 billion VND (1.4 million USD) revenue of the HC electronic and
telecom stores system, according to HC Marketing Director Nguyen Hong Tien.
Since
early November, HC stores have earned nearly 190 billion VND (9 million USD)
in turnover, a sharp increase over the previous months.
Thanks
to the promotion events, customers to the Pico mall increased 75 percent,
bringing 20 billion VND (950,000 USD) to the owner, over two times more than
on other Saturdays. The figure for the final promotion day is expected to
further increase, said Pico’s Marketing Department Director Nguyen Quang Duc.
The
company has prepared a broad selection of products to better serve the
customer during the promotion month, Duc said.
Other
general supermarkets also witnessed a significant increase in the number of
shoppers.
During
the two days of promotion, customers at Big C Thang Long enjoyed up to 49
percent discounts on a variety of products including household utensils,
kitchen aids and electronic products.
During
this year’s promotion month,
It
offers the capital city’s shoppers a good chance to buy high quality products
at reasonable prices.
Businesses
also have an opportunity to resume and maintain the number of customers,
which has fallen significantly due to the economic downturns.-
The
involvement of authorities at all levels, enterprises, social organisations
and people in developing green cities in Vietnam through promoting green
growth is urgently needed.
The
suggestion was made by General Secretary of the Association of Cities in
Vietnam Vu Thi Vinh during a recent interview with Vietnam News Agency.
Green
growth plays an important role in ensuring sustainable and effective economic
development in
In
2012, the Prime Minister approved t he National Green Growth Strategy for the
2011-2020 period with a vision to 2050.
Green
growth has been of increasing concern to many countries in the world in
recent years. It is considered the shortest way towards sustainable economic
development as it contributes to creating jobs, reducing poverty and
improving the material and spiritual life of all people.
The
establishment of a green growth economy is based on an investment increase in
protecting the environment, development and efficient use of natural
resources , reduction of greenhouse gas emissions and the improvement of
environmental quality , thus stimulating economic growth, Vinh stressed.
On the
other hand, green growth development should also be based on science and
modern technologies which are suitable to
The
country has over 760 urbanised areas, of them 111 are cities and towns, Vinh
said, noting that urbanisation, industrialisation and modernisation have
brought many remarkable economic achievements, changing the landscape of
However,
urban development also shows many limitations, having a negative effect on
natural resources and causing water pollution, she added.
For
the success of green growth, political resolve of authorities is very
important, according to the expert, who also underlined the important role
played by enterprises and the private sector. She said enterprises should
apply modern technologies to increase effectiveness of production and create
environmentally friendly products, contributing to boosting sustainable
development.
At the
same time, people, as “green consumers”, should not use products that will
damage their health and the environment. They are entitled to ask providers
to create and supply eco-friendly products and services. Changes in awareness
and habits in purchasing and using goods will contribute to changing society
for the better.-
Over
3,000 southern farmers follow VietGAP rice field model
As
many as 3,300 farming households in southern Tay Ninh province reaped great
economic profits from this year’s crops by following the VietGAP large-scale
model of cultivation.
Under
the model, the farmers received technical support and applied advanced
farming methods to reduce rice production costs and minimise harmful effects
caused by pesticides.
Farmers
cultivated a combined 5,400 ha of rice plantations, in collaboration with
staff from the province’s plant protection stations and with technical
consultation from the Plant Protection and Cultivation Departments under the
Ministry of Agriculture and Rural Development.
During
the year’s winter-spring and summer-autumn crops, the rice production of
local farmers reached an average of 6.2 tonnes of rice per hectare, up 300kg
compared to previous crops.
Notably,
they could reduce production costs by 1.3 million VND (61.61 USD) while their
income increased by 3 million VND (142 USD) per hectare thanks to their
involvement in the model.
The
province is expected to raise the area of VietGAP rice cultivation to 6,000
ha with the participation of 4,000 farming households and will establish
several co-operatives producing quality rice varieties to meet farmers’
demand and help improve the effectiveness of rice cultivation.
Italian
press:
With
the signing of the Trans-Pacific Partnership (TPP) Agreement,
So
said
The
article, published on November 13, said that
The
upcoming TPP signing will allow
According
to the article,
Through
the FTA, the Italian Government hopes that
Meanwhile,
Workshop
looks at sustainable product innovation
A
comprehensive overview of product innovation and the move towards
sustainability in
Under
the theme "Product Innovation – Key for sustainable Future", the
workshop also included sustainable design developments from
Specifically,
it reported on achievements and experiences of the Sustainable Products
Innovation (SPIN) project in
SPIN
worked with more than 500 small and medium entrepreneurs in four sectors; textile,
furniture, handicraft, and packaging.
It has
supported them in innovating with product design, product strategy and clean
technology consultancy.
According
to the Regional Project Coordinator Nguyen Hong Long, SPIN created clusters
of sustainable technologies and a community of entrepreneurs with a strong
commitment to sustainable development, which will be the foundation for a
sustainable future in
"Through
the project, most companies now understand that it would be not too difficult
to re-design their products and still ensure their competitiveness," he
said.
He
also added that these companies have been motivated to take action in product
innovation and technology transfer in order to utilize waste to create the
input materials for production and to use natural resources efficiently.
More
than 30 sustainable technologies have been developed, utilized and bunched
into smaller groups to be applied to the natural conditions of
In
detail, Renewable Energy, Renewable Materials and the Zero-waste Knowledge
Farm are considered more successful.
The
model of a zero-waste knowledge farm embodies 25 sustainable technologies to
create a closed loop process in order to maintain a balanced environment for
crops and livestock.
The
model, developed from a traditional agricultural model integrated with new
applied technologies, has been deployed in 10 households in the suburban
districts of Ba Vi and Soc Son outside Ha Noi.
The
SPIN project, implemented in
Under
the programme, 2,000 products have been re-designed and newly-designed to be
environmentally friendly, non-poisonous to human health, and are to be
launched on the market.
They
include handicraft products, bags, kitchenware and furniture.
Total
cost of the project is EUR2.8 million (US$3.8 million), of which 80 per cent
is funded by the SWITCH-Asia programme of the European Union.
Vingroup
official bond issuance debuts on Singapore Exchange
The
international bonds issued by real estate giant Vingroup (VIC) at the
beginning of this month hit the Singapore Stock Exchange on Thursday.
Vingroup
debuted on the international debt capital market with a US$200 million
issuance of 4.5 year bonds, which were snapped up by more than 100 investors.
In the
first nine months of this year, Vingroup earned more than VND11.6 trillion
($552.38 million), an increase of 129 per cent over the same period last year
and 95 per cent of the company's annual goal.
After-tax
profits in the nine-month period reached VND6.05 trillion ($288.09 million),
up 311 per cent over last year.
A
majority of the group's turnover in the third quarter came from apartment
sales at its two major projects,
The
group's other businesses also performed well, including office leases (up 44
per cent), hotels (up 31 per cent) and healthcare services (up 81 per cent).
The
total asset value of Vingroup was estimated at VND61.58 trillion ($2.93 billion),
VND5.756 trillion ($274.09 million) higher than the end of 2012.
Each
share of the HCM City-listed company currently sells for VND66.500 ($3.12).
Dong
Nai earns $24 million from cashews
The
southern
Chairman
of the provincial Cashew Association Nguyen Thai Hoc also revealed that
The
extraction of cashew nut shell liquid not only brings economic benefits to
the producers but also provides jobs and positively impacts the environment,
said the Chairman.
Of the
country's total 80 million tonnes of cashew nut shell liquid output, Dong
Nai's production accounts for 60 per cent, he added.
He
made known that the province produces hundreds of thousands of tonnes of oil
a year and exports its products to not only
Many
producers have applied modern technology for higher export value as well as
supplying material for other industries in the province, Hoc said.
New VN leather
brand looks at new market
A new
luxury leather brand launched by a local entrepreneur seeks to fill the void
created by the dominance of foreign products and imitations made in
Felix
Leather opened its website www.felixleather.com on Wednesday, showcasing its
first collection FFFWXIII, which features what the firm says are
environmentally-friendly products, including handbags, smartphone cases and
table covers.
Ho Huu
Luc, chief designer of Felix Leather, said that he ensures the products use
certified accessories from
Deposit,
lending rates inch ever closer
The
domestic financial market is witnessing a rare phenomenon that is lending and
deposit interest rates have get so close to each other.
Within
three recent months, many banks have silently or noisily participated in a
race in raising deposit interest rates to mobilise more money from the
public.
Agribank
typifies the trend. The interest rate of its deposits with the three-month
term has increased by 0.5 per cent to 7 per cent per year, while the interest
rate of over 12-month deposits has climbed to 8 per cent per year.
Vietinbank
has increased the interest rate of dong deposits with less three-month terms
from 6 per cent to 6.5 per cent per year, and those with terms from 3 and 7
months to 7 per cent per year.
A
similar situation is also seen at Vietcombank at which the interest rate of
deposits with terms from 6 to 12 months has been raised to between 7 and 7.5
per cent per year. The rates of 6.5 or 6.8 per cent have been applied to
deposits with terms from two to three months.
The
deposit interest rate race at commercial banks seems more tense. After
Techcombank has raised the interest rate of less 12 month deposits to 6.75
and 7.45 per cent per year.
While
the banks are vying with each other to raise their deposit interest rates
they have also made efforts to cut their lending interest rates, sometimes
making them even lower than their deposit rates.
ABBank,
for instance, has recently launched a VND1.5 trillion (US$70 million)
preferential credit package with the interest rate of only 7.9 per cent per
year for enterprises. The lending rate is only 0.4 per cent higher than the
deposit rates of Oceanbank, Vietcombank and Techcombank.
On the
occasion of its 20th anniversary, SHB has offered the lending interest rate
of only 8 per cent for enterprises.
Meanwhile,
OceanBank is lending household-based businesses at the interest rate of just
8.5 per cent per year, 1 or 1.5 percentage point higher than the popular
deposit rates.
Some
commercial banks are even ready to get loss when they offer consumer loans at
the interest rate of just between 5.99 and 6 per cent per year to enterprises
and individuals to help them buy autos and housing.
According
to a CEO of a commercial bank in HCM City who declined to be named, the
disparity between the lending and deposit rates now is under 3 per cent, much
lower than the 5 per cent level in the previous time.
A
source from the State Bank also says that the ceiling interest rate of 7 per
cent is being applied for under 6-month deposits, down by 2 or 3 percentage
points as compared with the rate recorded in early the year.
Meanwhile,
the lending interest rate of 9 per cent is applied to the five prioritised
sectors, down by 3 or 5 percentage points.
As a
result, the interest rate spread between loans and deposits is only 2 per
cent per year.
With
such a small disparity, the banks' profit is predicted to significantly
reduce while the banks will have to use a majority of it for the risk
prevention fund (provision for bad debts), paying deposit insurance premiums,
and other operating costs.
This
also means that the banks would find it difficult to realise their profit
targets set for the year.
Appetite
for gold
On
November 8, the State Bank of
However,
a representative of the SJC Company who did not want to be named, said
trading in gold taels was very slow on those days.
His
company was only trading between 700 and 2,000 taels each day, much lower
than the 8,000 to10,000 taels recorded during the same period last year.
While
people seem to have turned their back on gold, they have queued to buying
gold jewellery in great quantity.
Many
factors have contributed to this change from the long-standing habit of
keeping savings in gold bars. One factor is the disparity between domestic
and global prices of gold bullion is too large, often at over VND3 million,
or even between VND5 and 6 million per tael.
Also,
people cannot deposit their gold at banks, and the number of places where
they can trade their gold bars has reduced significantly. So thousands of
shops that once traded in gold bars now just sell jewellery.
"The
people who are saying no to gold bullion are shifting to 24-carat gold
jewellery, mainly gold rings.
This
is because the price of pure gold jewellery is not so different from the
global rate, and it can be easily sold at any gold shop," said Nguyen
Van Dung, chairman of the HCM City Association of Fine Arts, Gold Jewellery,
and Gemstone.
The
owner of a gold shop in southern Long An Province's Ben Luc District also
said that people's demand for pure gold jewellery had risen ever since the
gold bullion market was tightened.
He
said transactions related to gold bars in the locality decreased sharply and
locals shifted to keeping their savings in pure gold rings.
The
sharp decrease in demand for gold bullion suggests that the central bank
should reconsider conducting less gold bullion auctions .
Some
analysts say that the domestic gold market should be let to work as it used
to, meaning enterprises should be allowed to continue importing the precious
metal and the central bank should act as a manager of the market, not
continue its current role as a gold trader.
They
expect the central bank to face liquidity problems if it continues to auction
gold. It would have to use a lot of dollars to import gold for auctions, and
this could create a local shortage of the greenback.
In
addition, when the central bank is directly participating in trading gold as
it is doing now, it will face the risks associated by fluctuations in gold
prices, as will the domestic gold market.
But
there are others who still support the central bank's gold auctions.
They
say that the auctions, held for nearly one year, has helped stabilise the
gold market, and pushed domestic and global prices closer to each other. But
they also feel that the frequency of such auctions should be reduced.
Export
growth
Although
The
textile and garment industry is among the industries that have led the
country in boosting export values.
In the
first 10 months of the year, it posted an 18.5 per cent year-on-year growth
in export value, and expects to earn US$2.5 billion by the year-end.
Similarly,
after the US International Trade Commission announced that Vietnamese shrimp
products exported to the country did not have to face any anti-subsidy
duties, that sector has shown strong signs of picking up.
In the
first 10 months of the year, $10 billion worth of shrimps were shipped, making
the greatest contribution to the entire seafood industry's total export value
$5.38 billion.
Tra
fish has also become a leading seafood export earner with shipments so far
valued at over $1.23 billion.
Despite
these success stories, the sectors are still struggling.
Enterprises
exporting shrimp and catfish, for instance, face a severe shortage of
materials for processing. Even in provinces that have large areas of shrimp
farms, like Ca Mau Bac Lieu, Soc Trang and Kien Giang, local firms are not
able to find enough raw material for processing.
Many
seafood processing plants in these localities complain that they can only run
at 40 to 50 per cent of their capacity.
According
to a representative of the Ca Mau Seafood Processing Association, many
Chinese enterprises came to
The
shortage has pushed shrimp prices very sharply, imposing much higher costs on
seafood exporters.
In
fact, shrimp prices have recently increased strongly by VND40,000-VND50,000
per kilo, according to
Meanwhile,
tra fish prices have surged VND4,000- 5,000 to VND23,500 and 24,000 per kilo.
From
now until the end of the year, tra fish exporters will need about 300,000
tonnes of materials for processing, but the domestic market can supply only
50,000 tonnes, some reports say.
Explaining
the shortage, analysts say that supply has become seriously short because
farmers who incurred heavy losses in previous crops have left fish ponds
idle.
In
fact, many of them want to continue farming, but they cannot borrow capital
from banks without repaying old debts.
Meanwhile,
only 30 out of 70 tra fish processing establishments have their own farms, so
the others have to rely on supply from individual farmers.
Seafood
exporters need to do several things to deal with the situation, officials and
industry insiders say.
They
say the firms should develop their own production farms, source guaranteed
quality raw material from other countries and effectively promote sales if
they are to succeed in current market conditions.
FDI
boosts property sector in Binh Duong
An
influx of foreign direct investment projects is warming up the real estate
market in southern
According
to the province's Department of Planning and Investment, the many
foreign-invested projects currently underway.
These
include a Taiwanese-invested project capitalised at US$1.7 billion, a $1.2
billion-Tokyu Binh Duong Garden City project developed by Becamex Tokyu Co
and the $170 million EcoXuan project financed by Malaysian Setia Lai Thieu
Co.
Detailed
planning, improved infrastructure and streamlined administrative procedures
made the province an attractive destination for foreign investors, local
experts said.
Binh
Duong's lower prices as compared to its neighbour
Nguyen
Thi Hong, a buyer from HCM City, said that she had come to Binh Duong because
of the low prices, which ranged from VND3 million ($143) to VND3.5 million
($167 million) per square metre.
Demand
for housing remained strong despite the frozen real estate market, said Tac
Dat Tac Vang Corporation general director Nguyen Vu Khoi.
However,
local people found it difficult to buy into these projects because the prices
were much higher than their income.
Investors
leasing new apartments to get property market moving
Many
property investors have converted apartments for sale to apartments for lease
to cut the selling price.
In the
past two years, Vingroup gave up on selling apartments in many projects due
to the downturn of the local property market.
A
group representative said the move aimed to protect the interests of customers
who had already bought apartments, adding that the group had a long-term
leasing strategy.
The
investor of a luxury apartment project in Le Van Luong also planned to lease
the apartments instead of selling them.
At the
Elegant Tay Ho project, which has 400 apartments for sale, the investor
considered leasing 60 rather than selling them.
Do
Quang Lam, deputy general director of Tan Hoang Minh Group, said that whether
such conversions were successful depended on the location of the project as
well as the financial ability of the investor.
CBRE
Viet Nam Co Ltd said demand for serviced apartments was still stable in terms
of number of inquiries, but tenants' budgets had declined by approximately 10
per cent quarter on quarter.
Serviced
apartments on the west side of the capital city continued to be in high
demand, especially for units in the US$1,000-$2,000 range, due to the
emergence of the office hub along Pham Hung Corridor and growing Japanese and
Korean communities in the surrounding area.
The
upcoming Samsung factory in northern
Rents
are expected to become more competitive due to companies' tightened budgets.
In terms of location, the Tay Ho area will face pressures to reduce rents as
more supply comes on line, particularly when Lotte Center Hanoi opens in the
second quarter of 2014.
Projects
in the central business districts (CBD) still face competition from new
projects on the western side of the city.
Unsold
condominiums or parts of hotels are being increasingly converted into
serviced apartments and other serviced apartment projects are considering
expansion possibilities, especially in the Tay Ho area.
Delta
province eyes Japanese cash flow
The
provincial authorities of Tra Vinh have called for Japanese investment in 19
major projects in agriculture, forestry and aqua-culture during a seminar in
Representatives
from Tra Vinh said the province has been attracting investment for projects
that would breed tra fish for export along the Tien (Anterior Mekong) and Hau
(Posterior Mekong) rivers.
The
province called for an investment of VND600 billion (US$28.4 million) for a
project to grow fruit trees on 5,000ha, and another investment of VND300
billion for a project to cultivate hi-quality rice for export.
Tra
Vinh also asked Japanese firms to invest in building facilities in the
province's industrial parks such as Dinh An, Cau Quan and Co Chien.
Dong
Van Lam, deputy chairman of the Tra Vinh People's Committee, said the
province would take measures to curb hindrances facing the province's
economic development such as underdeveloped infrastructure.
Administrative
reforms will be further enhanced to create favourable conditions for
investors, said Lam.
In
addition, preferential tax rates will be offered to investors that come to
Tra Vinh, located 120km from
Tra
Vinh's Long Duc Industrial Park has 26 tenants, including 12 foreign-invested
enterprises and 14 others invested by local companies, with total investment
of VND2,027 billion (US$96 million).
Nation
cements tighter trade ties with India
Vietnamese
and Indian entrepreneurs came together at a business forum in
Le
Thai Hoa, deputy head of the Department of Africa, West Asia and South Asia
Markets under the Vietnamese Ministry of Industry and Trade, highlighted the
traditional friendship between
He
noted that both countries had signed a number of co-operation agreements on
trade, double taxation avoidance and promoting investment stimulation.
The
two parties released a joint statement on a comprehensive co-operation
framework for the 21st century and sealed a Memorandum of Understanding
recognising
However,
bilateral exchanges have yet to match potential, Hoa said, suggesting that
local authorities from the two countries actively realise the terms set in
co-operation documents, especially the ASEAN-India Free Trade Agreement, in
order to create favourable conditions for their respective enterprises.
Businesspeople
of both nations should increase exchanges to seek partners and partake in
trade fairs and exhibitions, Hoa added.
Participating
businesses took the occasion to introduce themselves to potential partners
and learn the latest news about the business environment.
Real
estate sector not yet out of woods
Despite
early indications that market sentiment is improving after a lackluster
period of several years for the real estate sector, a number of key areas
should be examined before champagne corks are popped.
The
comment was made by to the latest report from Jones Lang LaSalle Viet
The
report notes that inflation in September was 6.3 per cent, far lower than its
peak of 22 per cent in September 2011.
Interest
rates fell from 15 per cent in early 2012 and stand at 7 per cent, with
further decreases on the horizon, according to the report.
Foreign
direct investment has reached US$15 billion, up 36.1 per cent year-on-year,
although considerably behind the dizzy heights of $71 billion registered in
2008.
For
the first time in many years, the country has registered a small but
significant trade surplus which stands at $124 million, and GDP growth stands
at 5.14 per cent, with steady improvement quarter-on-quarter.
The VN
Index has seen a dramatic increase of nearly 34 per cent over the past 12
months.
Disbursements
into the country are ranked 10th in the world, reaching $8.6 billion in the
first nine months, while the foreign exchange rate between the US dollar and
Vietnamese dong is stable at about 21,100.
All of
these factors paint a much improved and a considerably more stable economic
picture, the report said.
"The
banking sector continues to attract all the headlines and will prove to be
the single most critical factor in determining the speed of the
recovery." the report said.
"If
the current level of non-performing loans can be reduced and absorbed by the
newly formed Viet Nam Asset Management Company, we will see a faster momentum
in the recovery of the market as much needed credit will start being
released," it said.
The
big question is whether the structure of VAMC will prove an effective and
adequate vehicle in dealing with bad debt, according to the report.
The
report notes that the property market experienced a meteoric rise and fall in
the past 15 years, which has seen many investors, developers and owners make
and lose considerable sums of money.
It is
unlikely the property market will see these peaks and troughs again in the
near future.
"The
downturn was inevitable as the speed and rate of growth was unsustainable and
we are now seeing a correction in the market, resulting in more realistic and
affordable prices and rentals being achieved," said Stephen Wyatt,
country manager of Jones Lang LaSalle Viet
"However,
many owners and developers consider their property values have not been
affected by the downturn and continue to market their properties based on
historic values," he added.
The
proposed loosening of legislation on foreign ownership will assist the
property market, provided that the legislation is clear and transparent and
is in line with other countries in the region.
However,
local parties need to understand that foreign investors will only invest in
projects that are commercially viable and fit their investment strategy,
based on medium – to long-term objectives.
The
report concludes by saying there was more positive than negative news and the
economy was in a much better position but that challenges remain.
It
pointed out that the banking sector will need to restructure and lower the
level of non-performing loans and start to increase lending.
Economic
conditions will need to remain stable and show steady improvement, with lower
inflation, interest rates and a stable VND/US$ exchange rate, it added.
Legislation
will need to continue to loosen, attracting further interest from foreign
investors.
The
formation of the Trans Pacific Partnership (TPP) and ASEAN trade agreements
will further boost
"The
overall message is that the champagne can be put on ice, but it is still too
early to open it," the report said.
SBV
rolls out credit restructuring
The
State Bank of Viet Nam (SBV) has identified a further eight credit
institutions to undergo restructuring, calling for immediate plans to improve
bottom lines, revealed SBV Governor Nguyen Van Binh.
In a
report to the National Assembly, Binh said that the eight includes two banks
and six non-bank credit institutions.
These
institutions would have to submit restructuring plans for approval in order
to ensure stringent management in accordance with a restructuring plan laid
out for the 2011-15 period.
Under
the plan approved by the Prime Minister, the central bank named nine credit
institutions in the past two years that needed to be restructured; with
controls handed down to improve the management of finances.
To
date, eight out of them have completed the first phase of the approved
restructuring plan on a voluntary basis.
The
remaining bank will consult with SBV before seeking guidance from the Prime
Minister on a voluntary restructuring, potentially with the involvement of
foreign credit institutions.
SBV
has so far received restructuring plans for 24 out of 25 joint stock
commercial banks and approved the plans of 11 out of 25 banks.
It is
also considering the restructuring plans for four banks and waiting on
adjustments for nine banks.
For
State-owned banks, SBV has directed banks that have completed their
equitisation to complete appropriate restructuring plans to 2015, to submit
to the Prime Minister for approval.
The
performance of credit institutions has improved markedly with total assets
rising by 5.53 per cent by the end of September to VND5,376 trillion
(US$244.36 billion), according to SBV's new data.
Among
the total, assets of State-owned commercial banks increased 7.04 per cent to
VND2,356 trillion ($107.09 billion) and the rising rate of joint stock
commercial banks was 2.88 per cent, equivalent to VND2,221 trillion ($100.95
billion).
Compared
with late August, asset levels surged by more than VND83 trillion ($3.77
billion), of which State-owned commercial banks and joint stock commercial
banks made up VND35.3 trillion ($1.6 billion) and VND42.78 trillion ($1.94
billion), respectively.
Meanwhile,
reports on the third quarter showed the banking system's total equity
holdings also grew by 6.87 per cent, compared with the end of last year, to
VND455.236 trillion ($20.69 billion).
SSC
encourages firms to consider market flotation
Healthy
and transparent companies could still eschew difficult economic conditions by
raising capital through stock market flotations.
This
was heard at a Ha Noi conference jointly held by the State Securities
Commission and Ha Noi Stock Exchange on Thursday.
At the
conference, deputy director of the State Securities Commission's Department
of Issuance Management Bui Hoang Hai said securities offerings had slowed
down in recent years after their 2007-08 peak.
SSC
statistics showed that in the 2007-08 pre-crisis period, the total value of
shares issued hit VND100 trillion (US$4.76 billion), in comparison with the
modest sum of VND1.7 trillion ($809.5 million) seen in the first seven months
of this year.
Hai
pointed out that market difficulties and share values slipping below their
offering prices were among the main causes.
Many
companies' registry documents for shares issuance also failed to meet
requirements and had to be rejected, he added.
At the
conference, many companies said now was not the right time for listings or
securities offerings, especially in light of many listed companies leaving
stock exchanges due to losses or difficulties in raising capital.
Director
of the Ha Noi Stock Exchange Tran Van Dung agreed that cash flow problems
remained for listed companies in current conditions.
However,
healthy companies with transparent management had lots of opportunities to
raise capital from securities offerings, Dung said.
Hai
added that the stock market had seen recent improvements as the economy began
to show signs of a revival.
"It
is time for unlisted enterprises to put their securities offerings into
consideration," he said.
To
create advantageous condition for companies, the SSC proposed applying
restricted securities auctions to those which failed to fulfill offerings
requirements.
Vice
Director of the SSC's Inspection Department Vo Thanh Huong said Decree
108/2013/ND-CP, which came into force yesterday, would tighten punishments
for slow listings.
Accordingly,
joint stock companies which do not implement securities offerings within one
year will be fined between VND100-150 million ($4,700-7,150).
This
aims to hasten joint stock company listings and enhance transparency.
Statistics
showed there were 3,000 joint stock companies nationwide, however, less than
1,000 were listed.
VN
welcomes foreign investors
More
than 600 foreign investors were granted stock transactional codes in the first
ten months of this year, up nearly 40 per cent over the 2012 figure,
according to the Viet Nam Securities Depository Centre.
Strongest
interest from foreign investors was seen in March, April and May when on
average 90 foreign investors were granted codes.
Not
only blue chip but also small-cap and mid-cap firms attracted foreign
capital. The operation of open-end funds helped foreign investors to
indirectly hold blue chip vouchers
According
to Cao Sy Kiem from the National Financial and Monetary Policy Advisory
Council, as quoted in Dau Tu Chung Khoan (Securities Investment), the strong
increase in the number of foreign investors being granted transactional codes
this year reflected the overseas investors' interest in Viet Nam's stock
market.
Foreign
investors saw the stock market as an attractive investment in both the short
and long terms, he said, adding that the proposal to raise the threshold for
foreign ownership in local companies, which currently sits at 49 per cent,
was a source of encouragement for foreign shareholders.
However,
important factors in reassuring overseas investors included a complete legal
framework and transparency.
Assab
Viet Nam Steel company put into action
Sweden's
Assab Pacific Group officially opened the Assab Viet Nam Steel Plant in
southern Bien Hoa City's Amata Industrial Park.
The
company is equipped with modern production lines that meet international
standards with an initial design capacity of 400 tonnes per year. The project
was granted a license in October 2012.
Assab
aims to become the leading foreign distributor of quality steel tools and
services in Viet Nam.
The
firm specialises in manufacturing tool steel for blanking and forming of
materials, die casting, extrusion and plastic moulding in cold conditions.
Vinamotor
invests VND140 billion in Bac Giang venture
The
Viet Nam Motor Industry Corporation (Vinamotor) received a license to invest
in manufacturing automobiles in Dong Vang in the northern province of Bac
Giang.
The
VND140 billion (US$6.6 million) project has an annual production capacity of
3,000 buses and 5,000 lorries.
The
province also granted an investment license to DV motor company for a VND16.5
billion project to manufacture motorbikes and electric bikes.
Medi
Pharm Expo to open in Ha Noi next month
More
than 150 local and foreign enterprises have so far registered to attend the
Viet Nam International Hospital, Medical and Pharmaceutical Exhibition (Viet
Nam Medi Pharm Expo 2013) in Ha Noi.
The
20th annual exhibition will be held at International Centre for Exhibition
(ICE), 91 Tran Hung Dao Street, from December 4-6, said the organising board.
This
event is expected to welcome exhibitors from countries and territories such
as India, Russia, Germany, New Zealand, United States, Republic of Korea,
China, Singapore and Thailand, added the organising board.
Notably,
medical machinery and especially modern equipment used in minor surgery will
be displayed at the booths of Russia and the Republic of Korea.
The
expo is co-organised by the Ministry of Industry and Trade, the Health
Ministry and the Viet Nam National Trade Fair and Advertising Company
(Vinexad).
Over
500 contracts signed at 2013 Int'l Agro Fair
As
many as 519 memoranda of understanding and cooperation contracts totally
worth over VND150 billion (US$ roughly 7 million) were signed during the 2013
International Agriculture Fair.
The
week-long event wrapped up in the Cuu Long (Mekong) Delta city of Can Tho on
Thursday.
According
to organisers, the fair successfully acted as a bridge linking the
Government, scientists, farmers and businesses, thus enhancing farmers'
insights into the integration period.
During
the event, enterprises also clarified their business strategies, expanded
trade promotion and trademark communications, and introduced their products.
Among
the 5,000 products displayed at the fair, there were 1,000 new categories of
machinery, agricultural equipment, fertilisers, pesticides and new and
productive rice seeds as well as new agro-forestry products.
Source:
VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
|
Thứ Hai, 18 tháng 11, 2013
Đăng ký:
Đăng Nhận xét (Atom)
Không có nhận xét nào:
Đăng nhận xét