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BUSINESS IN BRIEF 19/12
LienVietPostBank
finances VND2 trillion for Vung Ang 1 power project
LienVietPostBank
signed a deal to provide VND2 trillion (US$94 million) to PetroVietnam to
continue construction of the Vung Ang 1 thermal power station.
The
Vung Ang 1 plant, located in the Ky Anh district of central Ha Tinh province,
consists of two turbines with a combined capacity of 1,200 megawatts.
Construction
of the US$1.77 billion plant was started in December 2006 and is nearing
completion.
The signing
of this financing deal is expected to accelerate progress on the project,
which is scheduled for completion by the end of 2014.
The
Vung Ang 1 plant is one of the priority power projects underway to generate
electricity for the growing demand of the central region.
Central
bank will continue gold auctions
The
State Bank of
From
March 28 to December 6 this year, SBV held 73 auctions in which it offered up
1.88 million taels (approx. 2.5m ounces). The auctions managed to inject 1.77
million taels into local credit institutions in a bid to combat speculative
activity in the market, minimise gold imports and increase foreign reserves.
Gold
auctioning is among a range of policy levers put into action more than a year
ago to moderate the gold market. Huy said the policy has significantly
improved the imbalance of supply and demand, stablised foreign exchange rates
and secured the legal rights of gold holders.
Vietnamese
citizens have a long tradition of privately storing gold reserves due to
deep-seated problems causing high inflation and depreciations in the dong.
In a
bid to wean people off gold holdings and to shore up the dwindling dong, the
State Bank of
Gold
holders now have to pay for their storage at banks, with the policy designed
to encourage people to covert bullion gold into dong.
Under
Government Decree No 24/2012/ND-CP dated April, 2012 on gold-related
activities, the State Bank of
Following
the rise of world gold prices, domestic gold prices yesterday were up around
0.16 per cent per tael against Monday. One tael is equivalent to 1.2 ounces.
Buying
and selling prices of SJC gold bars listed by DOJI at 5pm yesterday were
VND35.44/VND35.49 million per tael ($1,675/1,678), up around VND100,000
($4.7) from VND35.35/VND35.43 million ($1,671/1,675) on Monday.
World
gold increased yesterday, supported by a short-covering rally. Spot gold had risen
0.7 per cent to $1,245.90 an ounce.
According
to Reuters, gold has lost over a quarter of its value this year as fears that
the Fed will scale back its $85 billion monthly bond purchases brought a
12-year bull market to an end.
One US
dollar yesterday traded at VND21,070/ VND21,150.
Debt
legislation won't be delayed
The
State Bank of
According
to SBV deputy chief inspector Dang Van Thao, last year the central bank
delayed enforcing Circular 02 for one year to help businesses get easier
access to bank loans and give credit institutions more time to prepare the
roadmap and conditions to fully apply the provisions of the Circular.
Circular
02 strictly regulates asset classifications, the levels and methods of risk
provisioning and the use of provisions to handle risks in the operation of
credit institutions and branches of foreign banks.
Earlier,
leaders of some banks expressed the view that the application of Circular 02
in June 2014 means businesses will continue to be tied up and massive bad
debts will be incurred.
To
prepare for enactment next year, SBV has asked banks to calculate how
non-performing loans (NPL) will increase when applying this Circular to have
specific plans for risks.
Thao
said that SBV's Inspection and Supervision Agency will next year propose to
the SBV Governor to classify NPLs into 3 groups.
The
first group consists of businesses that have gone bankrupt or liquidated
without the ability to recover debts. In this case, banks will use provisions
to clear the debts.
The
second group consists of businesses that are in difficulties. This group
needs banks to restructure debts and lend more funding, along with
rescheduling debts and reducing interest payments.
The
third group consists of businesses that have been bankrupt or liquidated, but
have collateral. In this case, banks will be able to sell the collateral to
recover debts.
Banks
will also be allowed to set up an Auction Council to liquidate and sell
assets more quickly.
The
grouping is planning to be directed towards credit institutions to help
handle the expected increase in NPLs after the enactment of Circular 02.
The
central bank will continue to apply the interest rate ceiling on dong
deposits next year to stabilise market interest rate levels, said SBV's
Monetary Policy Department head Nguyen Thi Hong.
SBV
will actively and flexibly regulate interest rates to control and supervise
market interest rates, along with monetary and macroeconomic developments,
especially inflation, contributing to stabilising the currency market.
It
will also actively use tools to enforce monetary policies to control
inflation, stabilise the economy, support economic growth at a reasonable
rate and ensure safe liquidity for credit institutions.
The
central bank will also closely watch exchange rates, foreign currency markets
and balance of payments to create suitable management policies, in a move to
raise foreign exchange reserves and avoid the dollarisation in the economy,
Hong said.
Central
bank sets new rules for foreign currency lending
The
Governor of the State Bank of Viet Nam (SBV) issued Circular No
29/2013/TT-NHNN on lending in foreign currency by credit institutions and
foreign bank branches to resident borrowers on 6 December 2013. The Circular
applies to (1) credit institutions and foreign bank branches permitted to
conduct foreign exchange activities and lend in foreign currency to clients;
and (2) residents borrowing from credit institutions and foreign bank
branches.
Lending
in foreign currency by credit institutions and foreign bank branches
Credit
institutions and foreign bank branches (the "lending bank") may
evaluate and decide to lend in foreign currency for the following demands:
(1)
Short-term, medium-term and long-term loans to make offshore payments for the
import of goods and services when the borrower has sufficient foreign
currency from production or business revenue to repay the loan.
(2)
Short-term loans to primary oil and petrol import enterprises obtaining the
Ministry of Industry and Trade's 2014 oil and petrol import quota and not
having sufficient foreign currency from production or business revenue to
repay the loan. This provision applies until 31 December 2014.
(3)
Short-term loans to meet domestic capital demands to implement production or
business projects for export of goods via Vietnamese border gates and when
the borrower will have sufficient foreign currency from export revenues to
repay the loan. When the lending bank disburses loan monies, the borrower
must sell by way of a spot transaction this amount to the lending banks,
except where the borrower needs to make payment in foreign currency under the
regulations. This provision applies until 31 December 2014.
(4)
Loans for offshore direct investment in projects or works of national
importance, having the investment policy approved by the National Assembly,
Government or Prime Minister and granted an offshore investment certificate
by the Ministry of Planning and Investment.
The
lending banks may evaluate and decide to lend in foreign currency outside the
above list in the priority fields or the fields in which development of
production or business is encouraged by the Government after SBV approves
each specific case.
SBV
approval to lend in foreign currency
To
lend in foreign currency to clients, the lending bank must send a written
request, including the following contents to SBV for approval:
(1)
The lending bank has evaluated the client's production or business project
and is assured that the project is feasible and efficient. The client must
satisfy borrowing conditions under the regulations on lending. The lending
bank is able to recover the loan, including principal and interest, on time.
The lending bank's request must include a specific report on the client's
current financial status, production or business status, source for loan
repayment, and demands to borrow in foreign currency, to implement its production
or business project in the priority field or the field in which development
of production or business is encouraged by the Government;
(2)
The lending bank must include a specific report on its own foreign currency
sources in order to provide the loan, and an undertaking to ensure balancing
of its foreign currency sources as appropriate for the term and amount of the
loan; and that the loan complies with current regulations on lending, foreign
exchange control, limits on extension of credit, prudent ratios applicable to
the lending bank and other relevant regulations;
(3)
The lending bank undertakes to be responsible for the results of evaluation
and decision to lend in foreign currency to clients and information contained
in the request.
SBV
will approve the lending bank's foreign currency loan within a maximum 30
business days after receipt of the lending bank's request.
Lending
banks' responsibilities
The
lending banks providing loans in foreign currency must comply with this
Circular, regulations on lending, foreign exchange control, prudent ratios
and other relevant provisions. The lending banks must provide monthly reports
to SBV on their foreign currency loans on the 12th day of the following
month.
This
Circular takes effect on 1 January 2014 and replaces SBV Circular No.
37/2012/TT-NHNN (28 December 2012).
Binh
Duong fares well in integration
The
southern
The
National Committee for International Economic Cooperation's 2013 PEI Index to
measure each locality's capacity to integrate into the global economy was
based on eight fields, covering infrastructure, culture, local natural
features, human resources, trade, investment and tourism.
The
standing was attributed to the locality's second place in investment, third
in infrastructure, fourth in human resources, sixth in tourism and seventh in
trade.
On
Monday at a workshop screening the province's economic integration, experts
said in weathering difficulties stemming from the post-global economic
downturn, the southern province has taken healthy and flexible policies to
help enterprises access various investment sources to better their operations
and renovate technologies.
Such
efforts paid off as Binh Duong has attracted US$1.3 billion in foreign
investment during the year, accounting for almost 10 per cent of the
country's total.
The
locality has so far had 17,259 enterprises operating with a total investment
of over $24 billion.
The
experts, however, suggested Binh Duong further polish its policies to ensure
its investment attraction and international integration is sustainable.
The
province has recently named six priority fields in calling for investment in
2014, including electrical-electronic industry, support industry, precision
mechanics, basic chemical industry, medical and pharmaceutical equipment and
high-quality food processing.
Motorbike
sales stutter despite holiday discounts
The
festive season had failed to light up motorbike sales towards the year-end,
with demand continuing to fall, dealers said.
Buyers
have resisted the lure of discounts and freebies offered by motorbike dealers
through a series of sales promotions launched before the year end.
Domestic
motorbike sales for 2013 were expected to fall to around 2.5 million compared
to 3.1 million in 2012, due to slow economic growth and weak demand,
according to the Viet Nam Auto Motorcycle and Bicycle Association.
Dealers
are also struggling to during one of their worst years.
"The
months before Tet used to be the best time for business with people rushing
to buy new bikes, but this year is quite different," said Pham Manh Sy,
director of the Viet Phu Company, a prominent Yamaha dealer in Ha Noi.
Sy said
unlike previous years when they had enjoyed high sales numbers, he had only
sold four bikes last month.
"This
is the worst year since I started the business 15 years ago. I am thinking
about closing the dealership and turning it into a restaurant," he told
Viet Nam News in a telephone interview yesterday.
Most
motorbikes dealers are suffering like Sy despite a series of discounts and
sales promotions.
Suzuki
has cut VND2 million (US$97) from the price of its Hayate scooters, and
Yamaha is offering VND1.5 million vouchers for buyers of its Nozza model.
The
country's most popular brand Honda has also cut prices of its best selling
Wave by VND500,000.
Even
Italian luxury scooter maker Piaggio, which rarely cuts prices, is offering
buyers free bike registration fees.
"However,
prospective buyers have fallen, and purchasing power is falling," said a
Honda dealer in Ha Noi.
The
country's two largest motorbike manufacturers, Honda and Yamaha, which
account for over 90 per cent of the local market share, may experience
another bad year in 2014.
According
to a source close to these firms, Yamaha sales may drop by 10 per cent to
750,000 this year, while Honda expects to hit around 1.5 million to 1.9
million this year.
Viet
Nam's motorbike market, the fourth-largest in the world, has shown signs of
saturation, with annual output having exceeded demand, prompting producers in
the Southeast Asian country to speed up their exports to other markets.
With
motorbike sales totalling 3.1 million units last year,
But
motorbike sales in
Motorbikes
are the most common means of transport in
Brokerage
company announces closure
Au
Viet Securities Co, formerly listed as AVS on the Ha Noi Stock Exchange,
announced on Monday that it would dissolve the company.
It
became the third brokerage to voluntarily cease doing business this year,
following the closing of Sao Viet Securities and Cho Lon Securities. The
company has six months, from January 1 to June 30 next year, to liquidate its
contracts and pay its debts. Currently, Au Viet employs a staff of five, and
the payment of salaries and allowances for workers must be finished by June
30 at the latest. To conduct the company closing, it has established an asset
liquidation group of seven people, led by chairman Doan Duc Vinh.
The
proceeds from the liquidation will be used to pay for employees, taxes and
loans. The remainders will then be distributed to shareholders.
Vinh
also said he would buy shares from small shareholders. "Shareholders can
sell the shares on the over the counter market at negotiated prices,"
noted Vinh.
As of
September 30, Au Viet only had VND221 billion (US$10.4 million) in assets,
VND54.6 billion ($2.5 million) in cash, VND86.84 billion ($4 million) in
short-term investments and VND20 billion ($943,390) in receivables. The
company made a modest profit of VND6.1 billion ($287,700) during the first
nine months this year. During the same period last year, it lost more than
VND9 billion ($424,500).
Au
Viet is still holding shares of Vung Tau Real Estate and Construction (VRC),
Cuu Long Fish (ACL), Military Bank (MBB), retailer Pan Pacific (PAN) and HCM
City Educational Book (SGD). Vinh said he would gradually sell these shares.
Despite having to dissolve the company, Vinh stated he would continue to
invest in stocks.
Tien
Giang posts strong export turnover in 2013
Despite
the global economic downturn, southern
This
was the first time the province's export values exceeded $1 billion, director
of the Tien Giang Department of Industry and Trade Dang Thanh Liem said,
adding that such encouraging results would lay an effective foundation for
accelerating its exports in the years to come.
In the
future, the province would continue to speed up promoting trade, support
local firms in expanding their distribution channels in domestic and
international markets, and in participating in trade fairs and exhibitions to
seek new outlets for business.
Eastspring
Investments
Fund
management company Eastspring Investments Viet Nam on December 24 will begin
sales of certificates for its open-ended fund at the par price of VND10,000
(US$0.95).
The
company, which is owned by life insurance firm Prudential Viet Nam, plans to
sell five million units of its Eastspring Viet Nam Navigator Fund (ENF). The
fund plans to invest no more than 80 per cent of its capital in domestic
firms listed on the two stock exchanges in Ha Noi and
Kinh
Do on the lookout for suitable acquisitions
Leading
confectionery and foodstuff producer Kinh Do Corporation has announced plans
for mergers and acquisitions.
Its
general director, Tran Le Nguyen, said the company would seek more investment
opportunities in companies that are suitable for its strategy and look to
develop its brands in international markets. But in the coming years, food
would remain the company's core business, he said.
The
company is growing at an average of 20-30 per cent per year, and is likely to
achieve profits of VND600 billion ($28 million) on revenues of VND5 trillion
($238 million) this year.
Chinese
and Vietnamese economists gathered in
At the
workshop, an expert from the Financial Research Institute under the Chinese
Ministry of Finance said
She
said the Assets Management Company (AMC) is an important tool to deal with
bad debts of the Central Bank of
Since
2008, many local businesses have hit snags in their operations due to the
impact of the global economic downturn, owing bad debts to credit
organisations.
Pham
Manh Thuong, Vice Director of the Debts and Assets Trading Company (DATC),
said by the end of June last year, all credit organisations’ bad debts stayed
at VND188,961 billion, accounting for 7.12% of total credit outstanding. Of
the figure, bad debts related to real estates made up a large proportion.
Thuong
said most bad debts were caused by a decline in economic growth and consumer
demand. Many businesses were unable to pay off their debts. One subjective
reason was that most credit organisations were more focused on stimulating
growth than controlling the quality of credits. Some even invested in risky
areas, such as real estate and securities to incur bad debts when they were
frozen.
Anti-inflationary
measures effective
In an
interview granted to Vietnam News Agency, GSO Director General Nguyen Bich
Lam said the government has succeeded in reining in runaway inflation in the
context of difficult times.
There
was growing concern about the recurrence of high inflation early this year
when the prices of medical and education services, petrol, electricity, and
gas would be adjusted as scheduled.
In
fact, 17 provinces and cities hiked the prices of medicine and medical
services by 19.5% against 2012, causing the national CPI to edge up 1.1%
overall.
Against
this backdrop, it is vital that inflation was kept in check, with the rate
hovering around 6%.
Lam
attributed the low CPI to
Above
all, he appreciated the government’s impressive performance, taking prompt
action to control inflation.
Ministries,
agencies and localities put the government’s anti-inflationary measures in
place, by keeping a tight grip on market prices, ensuring the market law of
supply and demand, and combating trade fraudulence.
The
State Bank of
Lam
said the dollarization of the economy was no longer a major headache for the
banking sector. The gap between global and domestic gold prices was narrowed
due to saturated demands within the public.
He
also gave reasons easing worries that the national economy has not yet
bottomed out due to the low CPI and excess industrial inventories.
The
national economy is recovering, he said, with the GDP growth increasing on a
quarterly basis, from 4.76% in Q1 to 5% in Q2, 5.54% in Q3 and estimated
5.91% in Q4.
Industrial
production is picking up, with the number of newly established businesses in
the past 11 months rising 9.5% compared to the same period last year. In
addition, 12,700 businesses resumed operation after a period of suspension.
11-month
investment capital rose 6.8% and credit growth also edged up 7.54%. The 17.8%
import rise means industrial production is recovering.
However,
in Vietnam Lam said low inflation is too fragile to be controlled and high
inflation is likely to edge up in 2014.
The
National Assembly approved the government’s proposal to raise the 2014 budget
deficit to 5.3% and issue more government bonds that will eventually increase
the amount of cash in circulation. The government will go ahead with its
roadmap for healthcare, education, electricity and water supply price
adjustments.
Czech
to build glass packaging plant in Vietnam
The
REF
General Director Jan Strunc told Deputy Minister of Industry Trade Ho Thi Kim
Thoa on December 17 that the company will use around 400-500 tonnes of sand
per day and generate jobs for around 500 local people.
The
plant will operated in 50 years with a design capacity of 220 tones of
products per day in the first phase and 500 tonnes of products per day in the
second phase.
The
plant will apply modern technology in producing glass bottles of different
shapes and sizes.
The
SHB
aims for its own subsidiary in Laos
SHB
plans to set up a 100 percent-owned subsidiary in
SBH
General Director Nguyen Van Le told at a meeting in
SHB
opened its branch in
Somphay
spoke highly of SHB’s achievement over the years, which have contributed to
socio-economic developments in
He
presented a certificate of merit to SHB and affirmed his support for its plan
to expand operation in the country.
Coating
industry develops strongly
Nancy,
a representative from the China National Chemical Information Centre (CNCIC),
made the remark at a press briefing to introduce an international coatings
exhibition (COATINGS EXPO Vietnam 2014) in
Nguyen
Thi Lac Huyen, Vice Chairwoman and General Secretary of the Vietnam
Paint& Printing Ink Association (VPIA) said Coatings Expo Vietnam 2014
which will take place in
The
State Bank of Vietnam (SBV) said it will promptly solve policy and
mechanism-related problems to facilitate credit expansion and ensure the
sector’s health safety in the coming time.
This
was announced at a press conference to initiate the sector’s 2014 tasks held
in
When
the financial market is stable and liquidity improved, interest rate caps on
deposits may be lifted, it said.
The
bank will also closely monitor fluctuations in the exchange rates, currency
market and foreign exchange.
At the
same time, it will regularly examine forecasting data on the balance of
payments to evaluate currency demand and supply, thus adjusting the interest
rates and fixing the dollarisation and the keeping of gold as a hedge among the
public.
According
to Nguyen Thi Hong, head of the SBV’s Monetary Policy Department, as of
December 12, credit operations grew 8.83%, 3.17% lower than forecast. It is,
however, estimated to be higher than last year’s rate of 8.91% by the end of
this year.
The
credit structure saw remarkable improvements, focusing on production and
business, especially the prioritised fields.
Between
January-November 2013, credit to rural farm production increased by 17%; high
technology - driven enterprises, 24.51%; and exports, 3.32%.
Bad
debts were also gradually brought under control.
According
to the SBV’s estimation, about VND105.9 trillion (US$4.977 billion) of bad
debt was settled during 2012 and the first 10 months of this year.
The
bank said the interest rate in 2013 was kept stable, increasing only 1%
against the forecast rate of 1-3% at the beginning of the year.
40
tonnes of Banh Chung for overseas Vietnamese
A
private enterprise in Dong Nai province is going to export 40 tonnes of Banh
Chung– a traditional Lunar New Year (Tet) savoury – to overseas Vietnamese
all over the world.
Vietnamese
people will celebrate the Tet holiday in more than a month’s time.
Tran
Thanh Toan, head of Tran Gia Banh Chung enterprise based in Bien Hoa city,
says his enterprise exports 35 tonnes of Banh Chung and five tonnes of
traditional phrynium wrapping leaves to the US, Europe, and Canada annually.
Banh
Chung for export can be kept as long as six months and served after several
minutes of microwave oven cooking.
Can
Tho targets 12.5% GDP growth
The
Mekong Delta city of
The
Municipal People’s Committee announced the target as part of the 2014 local
economic development plan released on December 17.
Municipal
Planning and Investment Department Director Nguyen Van Hong said achieving
the ambitious target will require provincial economic development programs to
focus on infrastructure construction, industry, trade, and services.
The
city will begin land and water transportation projects, bolster local
electricity and water supplies, upgrade market and supermarket networks, and
improve industrial park infrastructure in response to investors’ demands.
It
will also support the development of its rice processing industry and
aquaculture, and encourage an export industry shift away from raw materials
to higher added value products.
Can
Tho will encourage industrial energy efficiency measures, and look to create
the industrial clusters that support added value chains and better
international competitiveness.
In
2014, the city expects to produce 325,000 tonnes of seafood, 4.6 million
tonnes of rice, 37 million garments, 9.5 million pairs of shoes, 140,000
tonnes of fertilisers, and 1.1 million tonnes of cement. It expects to bring
the value of provincial industrial output to VND97.6 trillion, or 39.3% of
the provincial economy as a whole.
Can
Tho will expand its wholesale and retail networks along with the “Vietnamese
buy Vietnamese goods” campaign, support businesses in trade promotion both at
home and abroad.
The
city aims to raise its key export value of rice, seafood, garments, footwear,
iron, steel, handicrafts, and pharmaceuticals to US$1.65 billion in 2014 or
10% higher than in 2013.
Can
Tho will continue advertising local tourism in conjunction with other Mekong
River Delta provinces, aiming for a 4% increase in visitor numbers, or a 2014
total of 1.3 million tourists.
Vietnam-China
trade to hit US$50 billion this year
With
an average growth turnover reaching 35.9% from 2010 to 2012, making up a
proportion of 33.9 % of Vietnam’s export turnover, China is still one of
Vietnam’s key markets for farm produce.
This
was confirmed by the Asia-Pacific Market Department under the Ministry of
Industry and Trade (MoIT).
Vietnam’s
key agricultural products to China include fruits and vegetables, cashew
nuts, coffee, tea, rice, rubber, and cassava. Last year’s export turnover of
these commodities to China rose 17.37% to more than US$4.33 billion.
Especially, rice and coffee rose sharply in both volume and value.
China
is Vietnam’s leading trade partner with bilateral trade turnover reaching
US$41.1 billion in 2012.
Two-way
trade turnover reached US$41.07 billion in the past ten months and is likely
to hit roughly US$50 billion by the end of 2013.
At the
eighth session of the China-Vietnam Economic and Trade Cooperation Committee
held in Hanoi in April 2013, the MoIT and the Chinese Ministry of Commerce
signed a memorandum of understanding on bilateral cooperation in agricultural
exchange with the aim of creating a stable and transparent legal environment
for Vietnam’s farm products to penetrate the Chinese market.
Myanmar
supposed to be a strategic partner in exporting rice
Vietnam
should have a strategy for rice cooperation with Myanmar, according to the
Asia-Pacific Market Department under the Ministry of Industry and Trade.
The
department said that there are some opinions that Vietnam is unwilling to
promote cooperation in technological transfer with Myanmar as the latter
might become a competitive rival in exporting rice.
The
department said that this is not a long-term viewpoint as it will only put
Vietnam in a position to compete rather than cooperate with Myanmar for mutual
benefits. In fact, Myanmar is a major agricultural nation that is more
potential than Vietnam in the field.
Therefore,
in the long-term, Vietnam should have a long-term strategy for cooperation in
agriculture and rice exports for mutual benefits, turn Myanmar from a
competitive rival into a strategic partner.
Myanmar’s
open-door policy has encouraged many nations to develop relations with the
country.
Many
economists predict that Myanmar will become a major rice producer and
exporter in the near future.
Hitachi
eyes Vietnam’s railway sector
Hitachi,
the Japanese maker of railcars, electronics and machinery, considers Vietnam
as one of markets for rail orders.
Hitachi
President Hiroaki Nakanishi said that the group is still considering a new
plant in Germany or expand the factory that it is under construction in the
UK.
He
said that they will work hard to win rail orders from Sweden, Vietnam, India
and Brazil.
The
group needs new orders abroad as the demand for new railroads in the UK has
dropped in recent years.
Export
growth rate expected to reach over 10% in 2014
The
establishment of ASEAN community by late 2015 and the signing of the
Trans-Pacific Partnership (TPP) and other Free Trade Agreements (FTAs) with
the EU, the Customs Union of Russia, Belarus, and Kazakhstan in 2014 will
pose both opportunities and challenges for Vietnam and its trade sector.
The
statement was made by Minister of Industry and Trade Vu Huy Hoang at a
December 16 meeting with the Minister-Counselors, and trade counselors of
Vietnam’s trade offices abroad in Hanoi as part of the 2013 Commercial
Counselor Conference.
The
Ministry of Industry and Trade (MoIT) has devised some concrete orientations
for the sector’s development in the coming year, he said.
Minister
Hoang said the target for industrial production-construction is set at
6.4-6.6% to ensure the link between domestic production and foreign
marketing.
It is
important for the country to develop potential industries including support
services for agricultural and rural development such as clean energy,
renewable energy, and bio-industry production using intensive labour.
Prioritys
will be given to investment in the areas of energy, mining, chemicals, oil
and pharmaceutical chemistry to reduce imports and increase the
competitiveness and added value of products.
Hoang
said that trade development should be closely associated with its
sustainability and contribute to improving competitiveness of the national
economy.
To
promote exports, the MoIT has identified new commodities based on basic and
high technologies to meet the consumer market demand in the world as defined
in Vietnam’s export strategy. He proposed focusing on exporting seafood, farm
produce, garment and textiles, and electronics.
The
focus will be on developing markets for competitive and high added-value
products or groups of items with a high proportion of turnover. So, it is
important to seize new opportunities arising from international economic
integration to promote exports to the US, EU, Japan, China, the Republic of
Korea, ASEAN, India and other potential markets such as Russia, Eastern
Europe and Latin America.
Minister
Hoang said that next year’s import surplus should be maintained at 6% or a
lower level compared to that of export earnings by importing only hi tech
goods which local businesses cannot produce at a competitive price instead of
luxury commodities.
Vietnam
should continue to limit imports as a protection against domestic production
in accordance with its international economic integration’s commitments
within the framework of FTAS.
It
should also strive to achieve a growth rate of 14% in terms of total retail
sales revenue and domestic service turnover, Hoang added.
Quality
focus lowers 2013 lending: central bank
Lending
this year rose only 8.8 percent against that at the end of 2012, and lower
than the 12 percent growth target set by the State Bank of Vietnam.
Speaking
at a press conference in Hanoi on December 16, SBV deputy governor Nguyen
Dong Tien said these numbers remained optimistic, since lending in VND
increased significantly while that in USD declined, as targeted by the
central bank.
Additionally,
the high increase in medium- and long-term lending helped firms meet their
long-term investment demands, Tien said.
He
added that this year's lending was largely demanded by those in the
production and businesses sectors, especially priority industries, where
lending to agriculture and rural development rose 24.51 percent and support
industries was up 10.84 percent.
Tien
said that though the central bank set a yearly credit growth target, it could
also make adjustments to ensure the quality of credit and avoid rising bad
debts.
Previously,
SBV Governor Nguyen Van Binh, at November's National Assembly meeting, said
he expected that credit growth this year would meet the 12 percent annual
target, explaining that lending often sharply surged in the final quarter.
Securities
authority to tighten stock market monitoring
The
State Securities Commission (SSC) has said the restructuring and supervision
of the stock market would be improved next year to ensure the market's
transparency and efficiency in operating.
Minister
of Finance Dinh Tien Dung said at SSC's meeting last week that the commission
would focus on solutions to expand the scale of operations and improve the
market's quality, according to Vneconomy newspaper.
SSC's
statistics showed that the stock market maintained growth so far this year,
reflected through increases in the benchmark indices.
The
VN-Index on the Ho Chi Minh City Exchange rose 22 percent, in comparison with
the end of last year, while the HNX-Index in the Hanoi Stock Exchange was 13
percent higher. The increases in benchmark indices placed Vietnam among the
10 countries with the strongest stock market recoveries in the world.
Also,
the market capitalisation reached 964 trillion VND (45.9 billion USD), an
increase of 199 trillion VND (9.47 billion USD), equivalent to 31 percent of
the country's gross domestic product (GDP).
Meanwhile,
the average trading value reached 2.578 trillion VND (123.190 million USD)
each session, representing an increase of 31 percent over last year, mainly
thanks to the transactions of Government bonds, which witnessed a rise of 90
percent to 1.257 trillion VND (59.85 million USD) per session.
The
stock market also attracted many foreign investors, with registered accounts
rising about 55 percent.
Dung
said enacting the restructuring of the stock market, which was approved by
the Prime Minister, must be quickened, focusing on enhancing its quality,
financial capacity and management capacity.
In
addition, the management and supervision of the market must be improved, as
the stock market becomes more developed and sophisticated, to ensure
transparency and a market that remains healthy.
Pham
Hong Son from SSC also said that the commission would determine how to
eliminate weak securities companies through acquisitions, mergers or
dissolutions.
More
than 60 percent of securities companies reported losses this year, which is
slightly less than last year.
Tien
Giang enjoys export surge
The
Mekong Delta province of Tien Giang has enjoyed a 16.7 percent year-on-year
rise in exports, exceeding one billion USD this year despite a difficult
economic situation, a provincial official has said.
According
to Dang Thanh Liem, Director of the Tien Giang Department of Industry and
Trade, the result, which surpasses the province’s yearly target by 10.38
percent, is an important force speeding up its exports in following years.
Domestic
firms contributed 54 percent of the total, while foreign-invested ones made
up 46 percent.
Local
enterprises shipped abroad 134,220 tonnes of aquatic products for 284 million
USD, over 19 million pairs of shoes for 180.22 million USD and nearly 20,000
million clothes items for 211.95 million USD.
Liem
attributed the rise to the firms’ efforts in trade promotion and market
expansion. Exports to the Asian market account for 33.5 percent of Tien
Giang’s total revenue, followed by the EU, America and Oceania.
In the
future, the province will continue enhancing trade promotion and support
local enterprises to extend their distribution channels, broadening markets
and step up exports. The locality will also increase its engagement in trade
fairs in and outside the country, he added.-
Vinalines
seeks public aid for restructuring plan
The
Vietnam National Shipping Lines (Vinalines) has asked the Government to adopt
preferential policies to help domestic shipping fleets overcome difficulties,
according the online Vietstock newspaper.
In a
report sent to the Party Central Committee's Economic Commission, Vinalines
asked the Government to direct banks and credit institutions to extend its
debt limit and reduce loan interest rates in an effort to help it
successfully carry out the restructuring plan approved by the Prime Minister
early this year.
Vinalines
General Director Nguyen Canh Viet said he expected State-owned banks to lend
floating capital to shipping businesses, which are facing difficulties,
during the 2013-15 period.
For
his part, Minister of Transport Dinh La Thang said in a recent
question-and-answer session with National Assembly deputies that Vinalines
had restructured a debt of 7.855 trillion VND (374 million USD) at the
Vietnam Development Bank and 20.412 trillion VND (972 million USD) at other
credit institutions.
Vinalines
also proposed the Government reduce taxes, including value-added taxes and
import taxes for ships, and exempt the value-added tax of 10 percent for
shipbuilding projects which are designed for international maritime transport.
To
increase its market share in transporting export and import goods for the
Vietnamese shipping fleet, Vinalines has asked the Government to reserve the
right of transport of import and export goods, which are the country's
natural resources paid by the State budget, for the national shipping fleet.
At the
same time, it is necessary to exempt and reduce a number of taxes and fees at
the country's seaports until the maritime transport market has recovered.
Vinalines
also asked the Vietnam Social Insurance Corporation to allow shipping
companies to delay paying debts from social insurance, health insurance and
unemployment insurance from 2012 and previous years.
"In
the context of the world economy's degradation, most ship owners have been
suffering large losses. If there is no support from the Government, many
companies will become bankrupt and incapable of refunding the banks,"
said the report.
For
example, Vinalines Rubi, with a loading capacity of 1,800TEU, suffered a loss
of about 16,000 USD per day because payments for its freight were not enough
to compensate for costs. Similarly, Inlaco Express earns about 5,000-7,000
USD per day, on average, while its daily costs have increased to 14,000 USD.
In
spite of the many long-term difficulties and challenges, Vinalines reported
promising signs from maritime logistics services, as nearly 32 logistics
businesses have become profitable.-
HCM
City firms prepare for Lunar New Year surge
Despite
the economic situation, companies and traditional village-based producers are
making all efforts to meet the usual surge in demand during Tet (the Lunar
New Year) and improve quality and design, a Ho Chi Minh City official has
said.
Le
Ngoc Dao, deputy director of the Department of Industry and Trade, said at a
seminar on new Vietnamese products and special features for the longest and
most important yearly festival: "With higher quality, Vietnamese
products have met the increasing demand of consumers and gradually competed
with imports."
Around
20 firms like Vissan, Pham Nguyen Bakery, An Giang Fruit-Vegetables and
Foodstuff Joint Stock Company, Sai Gon Food, Phu Le Wine JS Company, and Hanh
Phuc Fish Sauce Company displayed many new products they plan to produce for
Tet.
They
assured adequate supply besides promotions to meet customers' needs during
the festival.
Phan
Van Dung of Vissan, one of the country's biggest meat processing firms, said
production for Tet had begun as long ago as June to ensure enough supply so
that prices remain stable until after the festival.
"Along
with supermarket chain Co.opmart, his company would slash meat prices on the
last two days before Tet – which falls on January 31 this year – to enable
poor people to buy since prices spike at traditional markets on those
days," he said.
Le
Thanh Truc of Phu Le Wine JSC said local specialities like traditional wine
are very popular during Tet.
The
company would unveil many ne w designs for gifts during the New Year, she
said, adding that it plans to increase supply 10-fold to avoid a shortage
like last year.
Sai
Gon Food also plans to increase supply this year after a shortage last Tet,
Le Thi Thanh Lam, the company's deputy general director, said.
Tran
Thai Ha, managing director of the Binh Duong branch of Huu Nghi Food JSC,
said the company would supply 5,000 tonnes of confectionery in the south
during Tet, expecting sales to increase by two or three times.
Nguyen
Thanh Nhan, deputy general director of Sai Gon Co.op – which owns Co.opmart –
said: "Demand is expected to increase by 10-20 percent over last
Tet."
Sai
Gon Co.op's supply of essential goods during the New Year will increase two-
or three-fold over the normal time.
It
will organise 150 mobile sales trips to rural areas and industrial parks and
hopes to sell goods worth more than 20 billion VND (almost 1million USD).
Apart
from selling essential goods at 10 percent less than market prices under the
city's price stabilisation programme, Sai Gon Co.op will also cut prices of
other products by 10-50 percent in co-operation with suppliers just ahead of
Tet.
Domestically
made products would continue to dominate the market due to their reasonable
prices, Nhan said.
Dao
said since supply would be ample, prices would not increase suddenly during
Tet.
In any
case, the department would monitor markets and severely punish hoarders and
black-marketers, she said.
The
conference was held in Ho Chi Minh City on December 16 by the High Quality
Vietnamese Products Business Association, the Tuoi Tre newspaper, and
Co.opmart as part of a programme called "Vietnamese Tet-Vietnamese
goods".
Central
Highlands localities join to lure investment
Five
Central Highlands provinces agreed to foster connectivity in investment
promotion, disbursement in pledged investment capital and social welfare
practices during a December 16 conference in Lam Dong province.
Accordingly,
the localities will organise investment promotion in a direction of boosting
regional linkage, strengthening tourism cooperation and building long-term
strategy to attract investment to the region.
The
provinces will also work close with the Investment Promotion of the Central
Region and other domestic and foreign agencies to support investors to
explore investment opportunity in the region.
Besides,
they will strengthen their investment promotion activities overseas and
conduct roadmap shows in European Union, the US and Japan with a hope to lure
investment wave from the European Union, the US and Japan .
Five
Central Highlands provinces include Dak Lak, Dak Nong, Lam Dong, Gia Lai and
Kon Tum. The region’s per capita annual income increased from 2.9 million VND
in 2001 to 26.9 million VND in 2012.
During
the second conference on investment promotion in the region in Pleiku city,
Gia Lai province on April 12, Minister of Planning and Investment Bui Quang
Vinh said the region needs about 400 trillion VND (18.8 billion USD) for
development for period 2011-2015.
After
the first conference in 2009, investors have poured over 90 trillion VND into
the region.
Since
2005, the region attracted over 192 million USD in official development
assistance with the focus on agriculture and rural development, poverty
reduction, urban infrastructure, transport, education, training, healthcare
and irrigation.
By the
end of March this year, the region lured 169 FDI projects with a total
registered capital of 900 million US.
Source:
VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
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Thứ Tư, 18 tháng 12, 2013
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