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BUSINESS IN BRIEF 4/12
Slower
growth in manufacturing sector
The
Vietnamese manufacturing sector slowed down in November to a fractional pace
as a fall in new orders broadly offset continued expansion of output and
employment, according to HSBC Vietnam.
There
were reports that client demand had weakened which was exacerbated by stormy
weather and associated flooding.
The
headline seasonally adjusted Purchasing Managers’ Index™ (PMI™) – a composite
indicator designed to provide a single-figure snapshot of operating
conditions in the manufacturing economy – recorded 50.3 during November. That
was down from 51.5 in October, although above the crucial 50.0 no-change mark
for a third successive month.
Manufacturing
output increased for the second month running, with the rate of growth solid
and the highest recorded since September 2011. Companies reported that
production was raised to help deal with higher volumes of new orders seen
during September and October.
On
this theme, latest data showed that backlogs of work were cleared to the
greatest extent since August. November’s survey indicated that volumes of new
orders fell for the first time in three months. The modest reduction followed
on from a record increase in October, and was reportedly a reflection of
relatively weaker demand.
There
was evidence that poor weather which led to some flooding also resulted in
reductions in new orders. New export orders were also down in November amid
reports of softer foreign demand for Vietnamese manufactured goods.
With
production requirements continuing to increase during November, manufacturers
again added to their payroll numbers. Growth in November extended the current
run of employment expansion to four months, although the latest net increase
was again modest.
Manufacturers
also raised their purchasing activity, the third successive month that this
has been the case.
Growth
was again solid as companies sought to service higher current output. Stocks
of purchases were also depleted, albeit only marginally.
On the
price front, input costs continued to increase during November, reportedly
the result of supply-side issues that led to a scarcity of raw materials.
Although
solid, the degree to which input costs increased was the slowest seen since
July. Moreover, vendors were also keen to improve their performance in the
face of stock shortages.
Finally,
manufacturers sought to protect margins by raising their own prices. November
marked the second month in succession that an increase in output charges has
been recorded, although competitive pressures ensured that the degree of
inflation was only marginal.
Trinh
Nguyen, Asia Economist at HSBC, said that “The slowdown of growth in the
manufacturing sector reflects weakness of demand abroad.
The
rise of headcount and quantity of purchases suggest that the outlook is
rather optimistic. We expect demand from abroad should bounce back after a
slump in November, although the pace of growth should still be modest due to
lacklustre domestic demand.
With
price pressures easing thanks to weaker commodity prices, manufacturers
should feel some reprieved.
Strict
control on gas prices
The
retail price of gas has just increased by VND80,000 (over US$1.5) per 12kg
canister to a record high so far this year, causing difficulties for both gas
traders and household consumers.
At a
press briefing held by the Ministry of Industry and Trade (MoIT) in
Chien
said he was concerned about the sharp increase in local gas prices that would
lead to the use of other kinds of fuel instead.
Chien
asked the MoIT to reduce the tax of imported gas from 5% at present to 0% and
strictly manage the gas market to prevent speculation in the face of a surge
in the global prices since early this year.
The
MoIT should work more closely the Finance Ministry to deal with violations by
gas traders, he added.
Chien
spoke highly of the Government’s Decree 177 as an effective tool for strict
management of gas prices in the country.
He
affirmed that there’s no speculation or monopoly on a large scale as major
businesses cannot make any corrupt use of their lion’s share to violate the
competition law.
Chien
revealed that the MoIT already put forth a draft decree to replace Decree 84
on oil and gas trading a few months ago and submitted it to the Prime
Minister for consideration on November 14.
In
2014,
In
2013, the capital city’s working groups have surveyed nearly 100 enterprises
to help them remove difficulties by promoting trade and investment, dealing
with large inventories and boosting production and exports.
Greater
attention has been given to promoting the property market and accelerating
the disbursement of support packages for house purchasing. As many as 84.3
billion has been disbursed so far for 21 customers.
Next
year, the
The
city has also pledged to provide businesses with credit loans at reasonable
interest rates, complete the building of industrial parks and industrial
clusters and effectively implement programmes to step up industrial
production and exports.
An
Giang to ship main products to Netherlands
The
Mekong delta
According
to the document signed with the
Chairman
of the provincial People’s Committee Vuong Binh Thanh said the cooperation
between the two sides will pave the way for An Giang’s key products to enter
the European market in the time ahead.
Thanh
called for assistance from the
The
province has invested over US$15 million to build a high technology centre so
that the
The
MoU is an important step to link up An Giang province’s main products with
the Dutch distribution system via Vietnam Trade House, said Bert Van Dijk,
Oss Trading Centre Director.
Can
Tho facilitates Finnish firms’ operations
Foreign
businesses, including those from
Profitable
investors in the field of services for example, will receive corporate income
tax exemption within two years, which will be reduced by 50 percent in the
three following years, said Deputy Chairman of the municipal People’s
Committee Dao Anh Dung at a recent workshop held in the city.
The
locality will also grant tax-free for overseas businesses for certain
imported commodities such as equipment, machinery, spare parts, and
specialised means of transport, Dung added.
As of
October this year,
Organised
by the Can Tho City People’s Committee and
Development
partnership forum to be held in Hanoi
The
Vietnam Development Partnership Forum will be held in
Speaking
at a press conference to announce this information in
Therefore,
the Vietnamese Government and donors agreed to replace the Consultative Group
(CG) meeting with the forum, with the participation of all development
partners in
Victoria
KwaKwa, Country Director of the World Bank (WB) in
Attendees
to the forum will include development partners participating in planning and
implementing policies and development cooperation programmes in
Minister
Bui Quang Vinh said the event will focus discussion on development priorities
as well as medium-term challenges in defining and implementing
Maintaining
stability, the restructuring of the economy and growth recovery will be major
issues deliberated at the event.
The CG
is an annual dialogue on development policies and partnerships with
international donors, as well as a forum to outline priorities to mobilise
and utilise official development assistance (ODA) funds to
Vietnam’s
rice export price surpasses Thailand
According
to Oryza Global Rice Prices,
The
price was US$15 per tonne higher than last week, up US$30 per tonne compared
to last month and down US$5 per tonne against the same period last year.
Meanwhile,
Thai rice was traded at US$395 per tonne, down US$155 per tonne against last
year’s period.
The
sharp price hike in Vietnamese rice is attributed to Vietnamese businesses recently
securing contracts to export 500,000 tonnes of rice to the
According
to the Vietnam Food Association (VFA), the paddy price in the Mekong River
Delta ranged from VND5,600-5,700 while long grain rice was sold at
VND5,800-5,900 per kilo, VND250 per kilo higher than last week.
Southern
Bank reports third quarter profit loss
Southern
Bank’s third quarter profits fell sharply on the back of losses sustained by
several areas of its operations.
The
bank’s financial statement for the third quarter showed pre-tax profit
plunging 65 per cent to VND33.9 billion ($1.6 million).
The
drop is the result of VND7.5 billion ($0.35 million) losses in forex trading
and VND44.2 billion ($2.1 million) in investment securities trading. In the
same quarter last year those areas brought the bank profits of VND7.9 billion
($0.37 million) and VND476 billion ($22.6 million), respectively.
The
lender’s revenue from services fell by 53 per cent on-year while at the same
time operational outlays rose 10 per cent and income from investments in
other entities fell 9.5 per cent.
The
bank’s profit stayed in the black thanks to net interest income of VND195.8
billion ($9.3 million) in the third quarter, up from the loss of VND178.5
billion ($8.5 million) last year.
Southern
Bank saw credit shrink 0.2 per cent in the first three quarters, but at the
same time its revenue from lending increased. This is attributed to increased
lending interest rates.
Nguyen
Xuan Thanh of the Fullbright Economics Teaching Programme expressed concern
that the banks have not lowered their lending rates and that the gap between
lending and deposit rates still stands at around 5 per cent. “Banks are using
this gap to earn income to deal with their non-performing loans,” he said.
In the
first three quarters of this year the bank reported pre-tax profits of
VND246.3 billion ($11.7 million), falling 12 per cent on-year.
The
bank’ bad debt ratio is 3.8 per cent, rising from 2.7 per cent at the
beginning of the year.
Labour
exports pick up speed
According
to the Ministry of Labour, Invalids and Social Affairs’ Overseas Labour
Management Department (OLMD), more than 70,000 Vietnamese labourers went to
work abroad from January to October, with
Between
October 20 and November 14, the OLMD licensed about 2,000 to work in
Ninety
per cent of labourers went to work in factories, and a small number went as
nurses for rest-homes and other medical facilities.
According
to the Vietnamese Labour Management Board in Taiwan, one key factor
attracting workers to the country was the increase of the basic salary for
guest workers to VND13.3 million ($630) per month.
They
added that expenses paid by workers for procedures prior to leaving were only
around $3,000.
Top
labour exporters are Hutraserco Limited, Cienco 8, Oleco, Halasuco, and
Hycolasec.
Deputy
general director of Hyoclasec Pham Ngoc Minh said the average income of guest
workers in
After
a period of stagnancy, firms have also started exporting to the Middle East
and Africa, particularly
The
pay for exported workers at construction sites in
In
Qatar
has attracted nearly 2,000 Vietnamese guest works this year, mostly in
construction, with pay ranging from VND 7-11 million ($330-520) per month.
For
the African markets, the OLMD just licensed Hoang Long Limited to recruit 110
truck drivers and construction workers to go to
After
several years of delays,
Ho Chi
Minh City Department of Planning and Investment director Thai Van Re said
last week the city expected another $0.4 billion in FDI through the rest of
the year.
Speaking
at a meeting with city leaders reviewing the first 11 months, he said by
November 20 the city had licensed 412 new projects while 120 other projects
upped their capital.
The
southern hub saw $1.3 billion in FDI last year.
City chairman
Le Hoang Quan said that through the rest of the year the city would continue
its proactive economic restructuring and shaking-up of state-run enterprises,
as well as its balancing of the banking sector and restructuring public
investment.
He
added that the city had seen 7.6, 8.1, and 10.3 per cent growth in the first,
second and third quarters, and expects quarter four to hit 10.7 per cent.
Cut-sized
apartments to boost market liquidity
Downscaling
apartment sizes has become one of the easiest ways for property developers to
shift large inventories of unsold housing stock.
The
Hanoi Municipal People’s Committee recently took the decision to allow
developers to downscale more than 4,050 units in order to provide cheaper and
smaller apartments to feed the lower-income market segment. In order to be
downsized, developers have to obtain permission to shift their stock from
commercial to social housing projects.
The
4,050 units are spread across 14 commercial housing projects, and once
restructured they will provide 5,976 units.
According
to the Minister of Construction Trinh Dinh Dung, the high-end market is now
hugely over supplied, while there remains massive demand for good value
housing.
“Rescaling
existing apartments will help developers ease inventories and help
liquidity,” Dung said.
During
recent years, developers have largely focused on developing high-end
apartment projects, with prices reaching VND25 million ($1,200) to VND30
million ($1,430) per square metre for apartments of more than 100 square
metres in area. These developers are now redesigning their units into smaller
45 to 70 square metre units as well as scaling back on fixtures and fittings
to squeeze into the VND12 million ($570) to 15 million ($715) per square
metre price bracket.
Hoa Binh
Group’s
Some
other projects are following this trend. Hundreds of units at Golden West
were sold in a fortnight following their reconfiguration.
According
to Nguyen Thi Dieu Hang, deputy general director of Vinaconex 3, downsizing
has proved a reasonable solution, helping developers sell units which has
helped them accumulate financial resources to reinvest into other projects.
Meanwhile
Vu Cuong Quyet, general director of Dat Xanh North said that developers were
struggling to sell larger units in a difficult market. Incoming finances from
apartment sales would help projects meet their schedules and ease the
pressure on bank loans.
However
experts have warned that scaling-down apartment sizes won’t resolve all the
problems.
According
to Dao Ngoc Nghiem, deputy chairman of the Vietnam Architecture and Zoning
Association, attention should be paid to the designs of the scaled down
apartments. He said minimum living conditions needed to be ensured, including
public space and facilities.
“The
redesigned units would create stronger pressure on the local community when
population density increased. This issue must be considered by policy makers,
developers and buyers in order to map out better transportation
infrastructure, and greater power and water supply needs and other relevant
issues,” Nghiem said.
Meanwhile
Nguyen Van Hai, director of the Hanoi Architecture and Zoning department
warned developers to ensure the buildings that were being restructured were
capable of coping with the changes and that power and water supply, drainage
system and services were all amended to take into account the higher
population density.
GSO
expert evaluates remittance success
In the
latest forecast from the State Bank of Vietnam (SBV), remittances into the
country are likely to hit $11 billion this year, rising healthily against
$9.75 billion last year. This would bring total remittances for the last 20
years to $84 billion.
According
to the World Bank,
Remittance
growth in
There
are four factors behind
Firstly,
the vast network of overseas Vietnamese (Viet Kieu) living abroad, nearly
four million, and particularly in the
Notably,
nearly 1.2 million Viet Kieu return home to visit their families every year
with average spending of $1,000 a person.
Besides,
over 400,000 Vietnamese labourers work abroad and contribute remittances of
around $2 billion a year.
A
second factor is
Few
countries allow remittances to be received in dollars, rather than being
exchanged into the local currency for deposit or sale to banks.
A
third is the interest rate for dong deposits is higher than that of dollars,
helping to attract foreign currency flows.
One
dollar in
Fourth
is that remittance services are developed and reliable and the number of
service providers is rising fast.
Experts
differ on benefits of tight currency policy
Experts
are weighing the economic effects of keeping the currency stable.
Banking
expert Nguyen Dac Hung said the
In
2010, the exchange rate shot up 9.68 per cent, in 2012 it slid 0.96 per cent,
and this year it has only risen 1.32 per cent and is forecast to peak at
around 1.4-1.5 per cent by year end.
The
rate will go up by a maximum 2-2.5 per cent for 2014-2015 thanks to the
government’s commitment to a stable rate, Hung added.
The
State Bank’s (SBV) efforts to keep the rate stable in recent years have been
praised by the banking community and import businesses.
According
to a source from HSBC,
That
said, the central bank’s efforts have also seen their fair share of
criticism.
Economist
Vu Dinh Anh said the stable exchange rate had falsely strengthened
Anh
recommended the SBV consider the risk of tightly controlling the exchange
rate over the long-term and that it should now consider a more suitable
policy.
Contrary
to this, however, banking expert Nguyen Dac Hung said stability had more
advantages than disadvantages by driving down the psychology of hoarding
dollars, as well as halting the dolarisation trend. It has also helped the
central bank replenish its foreign currency reserves and reduced public debt.
Head
of the SBV’s Foreign Exchange Management Department Nguyen Quang Huy said
both the exchange rate and inflation are intertwined. A stable exchange rate
helps the SBV stabilise the macro economy and management authorities should
carefully consider ulterior consequences before revising any policies.
Hung
added that the stable exchange rate has helped banks get strong returns from
their foreign exchange services.
“By
the end of 2012, one commercial bank had made more than $23 million from
their foreign exchange business. Most banks were profitable in this area in
2013,” said Hung.
Sacombank
general director Phan Huy Khang said foreign exchange was one of the bank’s
few strengths at a time they are losing greatly from diminishing credit
demand.
Financial
statements from 13 commercial banks showed that in the third quarter this
year, foreign exchange and gold business brought in over VND670 billion ($32
million) against $33.5 million in losses over the same period last year.
Binh
Duong names priorities in investment attraction
The
southern
The
six fields are electrical-electronic industry, supporting industry, precision
mechanics, basic chemical industry, medical and pharmaceutical equipment and
high-quality food processing.
The
province will encourage the application of technologies that help save
energy, fuel and materials during production.
It
also focuses on raising the local content as well as value and
competitiveness of products, minimising labour use, and developing industry
in line with environmental protection.
More
than 1.2 billion USD has been poured into the province this year, driving its
total FDI so far to nearly 19 billion USD.
Foreign-invested
projects in the province have been operating effectively, earning major
production and export values, with strength in garments, wood products,
footwear, electronics and food processing.
Development
partnership forum to be held in Hanoi
The
Vietnam Development Partnership Forum will be held in
Speaking
at a press conference to announce this information in Hanoi on December 2,
Minister of Planning and Investment Bui Quang Vinh said Vietnam has entered
the threshold of a low-average income country, while the country’s
partnerships with its development partners have been seeing changes suitable
for the current situation of aid in the world and Vietnam.
Therefore,
the Vietnamese Government and donors agreed to replace the Consultative Group
(CG) meeting with the forum, with the participation of all development
partners in Vietnam, Vinh added.
Victoria
KwaKwa, Country Director of the World Bank (WB) in Vietnam, said the WB wants
to share experience to help Vietnam make progress in its socio-economic
development, expressing her hope that Vietnam will gain new development
strides in the future.
Attendees
to the forum will include development partners participating in planning and
implementing policies and development cooperation programmes in Vietnam,
including representatives from the authorities at all levels, bilateral and
multilateral sponsors, social organisations, internal and external
non-governmental organisations, the private sector and research agencies.
Minister
Bui Quang Vinh said the event will focus discussion on development priorities
as well as medium-term challenges in defining and implementing Vietnam’s
socio-economic development policies.
Maintaining
stability, the restructuring of the economy and growth recovery will be major
issues deliberated at the event.
The CG
is an annual dialogue on development policies and partnerships with
international donors, as well as a forum to outline priorities to mobilise and
utilise official development assistance (ODA) funds to Vietnam. It is also a
platform for international donors to announce ODA commitments to Vietnam.
Dong
Nai’s 11-month export reaches 10 bln USD
The
southern province of Dong Nai fetched some 10 billion USD from exports in
January-November, up 8.7 percent year on year.
Of the
figure, over 1 billion USD was generated in November alone, a rise of 1.2
percent from the preceding month.
Key
foreign-currency earners include garments, computers, coffee, rubber and
cashew nuts, which have all reached the US, Japanese, Chinese and European
markets.
The
provincial Department of Industry and Trade, however, admitted that local
exporters face a lot of challenges this year like volatility in overseas
markets and fierce competition, especially for farm producers who have seen
export values fall.
In
November, concerned local agencies met with some exporters to make it easier
for them to access loans, declare tax and customs and apply for
energy-efficiency labels.
On
November 24-30, 11 local firms joined a trade promotion delegation led by
Deputy Chairwoman of the provincial People’s Committee Phan Thi My Thanh to
visit Dubai city in the United Arab Emirates – a key potential market,
especially for agro-fisheries products, spices, food, construction materials
and tropical fruits.
Viet
Nam exports cow feed to Japan, RoK
The
Viet Nong Lam JSC, operating in the southern province of Dong Nai, will
continue exporting feed for dairy cows to Japan and the Republic of Korea
(RoK) next year.
According
to Ho Sau, the company's Chairman of the Board, Viet Nong Lam has signed
contracts to ship some 36,000 tonnes of feed to the two Asian markets during
the first six months of 2014.
The
company's dairy cow feed is produced from the fermented stems of corn,
corncob, peanut shells and cassava bark, as part of a research project
implemented by Ho Sau.
Further,
Ho Sau said the company is investing in modern machinery and expanding its
plant in order to increase its production capacity to 10,000 tonnes of
products per month.
In
addition, Viet Nong Lam will carry out research projects to manufacture
cattle feed from corn, cassava and other farm produce waste, while promoting
its new products in domestic and foreign markets.
Binh
Duong names priority sectors for investment
The
southern province of Binh Duong has named six priority fields, while calling
for investments in 2014.
The
six fields are electrical-electronic industry, support industry, precision
mechanics, the basic chemical industry, medical and pharmaceutical equipment
and high-quality food processing.
Further,
the province will encourage the application of technologies that help save
energy, fuel and materials during production.
It
also focuses on raising the amount of local content used in manufacturing
products, as well as the value and competitiveness of products, minimising
the use of labour, and developing industry in line with environmental
protection.
More
than US$1.2 billion has been poured into the province in 2013, driving its
total FDI to nearly $19 billion, so far this year.
Foreign-invested
projects in the province have been operating effectively, earning major
production and export values, with strength in garments, wood products,
footwear, electronics and food processing.
Stability
key to domestic bond market
Viet
Nam needs a stable economic and financial system to create a sustainable bond
market in the future, according to experts.
Participants
gathered for a workshop, entitled "Macroeconomic stability and
sustainability of bond market in Viet Nam" yesterday in Thua Thien Hue.
Viet
Nam's economy in 2013 had many opportunities and development challenges. In
recent years, the government has directed and managed the economy to achieve
many positive results, Vu Bang, Chairman of the State Securities Commission,
said.
He was
delivering an opening speech at the workshop sponsored by the Deutsche
Gesellschaft fr Internationale Zusammenarbeit – GIZ (former German Technical
Cooperation – GTZ) and Ha Noi Exchange Board (HNX) in Thua Thien Hue.
The
domestic economy has been stable and inflation controlled at 4.63 per cent
during the first nine months of this year, he said.
Interest
rates from deposits and loans have fallen, while exchange rates of Vietnamese
dong and foreign currencies have remained stable and foreign exchange
reserves have increased.
However,
the economy has been hindered by difficulties, including a lack of stability
of the macro economy, difficulty in balancing the budget and a high level of
bad debt.
The
difficulty in the economy had affected the stock market of Viet Nam, he said.
But, on the bond market, the total value of listed bonds stood at VND521
trillion (US$26 billion), up 28 per cent compared with the same period in
2012.
Government
bonds are dominant in the Vietnamese bond market. Both size and liquidity of
the government – guaranteed bond market are very low.
The
enterprise bond market does not play an important role, nor is it well
managed, said Dr. Michael Krakowski, Chief Technical Advisor of GIZ
Macroeconomic Reforms Programme.
Products
available in the bond market are limited and simple. New products, especially
derivative products which could help to activate the market to improve its
liquidity and to act as hedging tools, are not available, or unofficially
implemented without any appropriate governing legal framework to regulate,
monitor and ensure sound and safe transactions.
All
frame conditions for the bond market are currently unstable and lack
sustainability, such as a high state budget deficit, difficult budget income
sources and high bond interest rates.
About
80 per cent of total volume and value of bond transactions are currently
performed by commercial banks. Bond market instability, if any, would be a
serious danger for the banking system, as well as for the entire Vietnamese
financial system.
"The
key solution to achieving a stable, sound and sustainable bond market is to
continue efforts aiming at macroeconomic and financial system stability.
Restructuring financial markets toward stabilization and strengthening risk
management would be the necessary step to be made," said Krakowski.
"In
addition, technical solutions would need to be developed and deployed,
accordingly. Viet Nam would need to implement proper public debt strategy and
develop models to forecast supply and demand in the bond market, which take
into consideration key factors, such as budget, public investment, changes in
monetary markets and interest rates, as well as requirements of issuing new
bonds to pay back existing debt."
"In
the medium and long run, Viet Nam would need to gradually move towards lower
budget deficits and sustainable balances budgets.
It is
also vital for Viet Nam to quickly implement regulations and plans on new
bond products and shifting the bond settlement system to the State Bank of
Viet Nam in order to ensure market soundness, and improve risk
management."
Gas
hike casts doubt on monopoly
The
large hike in gas prices beginning on December 1 has shocked many local
consumers, while experts pointed to it as a sign of the existence of a
monopoly.
Prices
have increased by VND44,000 (US$2.2) since June, but following this most
recent price hike, consumers must pay another VND80,000 (nearly $4) per
canister (12kg), making this the highest price since December last year.
Comparing
different shops, the price for canisters is now listed between
VND450,000($21.4) and 495,000($23.3) in the local market.
The
price increase caused Pham Thi Minh from Ngoc Khanh Street, Ha Noi, to no
longer order from her usual provider, since she now checks prices from other
vendors.
"It
is so unfair, I have nothing added to my retirement, yet prices of everything
keep rising; first electricity and now gas, and it is just too much"
said Minh.
She
has since ordered from a new gas shop because they offered her a reduction of
VND50,000($2.5) on her first order.
In Da
Nang City, Nguyen Thi Huong Lan, a worker, said the price increase was
unexpected and too high for workers like herself, wondering whether she could
save enough money to send some home to her parents.
While
gas companies explained that the hike was due to rising gas prices throughout
the world during December, yet experts suspected a different reason for the
hike.
Among
providers, Nguyen Thi Thanh Hong, deputy director of Sai Gon Gas Petrolimex
Company, said one tonne of gas increased $267.5 on world markets in December,
so there was no alternative but raising local prices.
However,
economist Le Dang Doanh seemed not to be convinced with this explanation. He
told Tuoi Tre newspaper that the gas market was not being operated
transparently.
Doanh
suspected some local enterprises were holding their gas in storage, waiting
for global price hikes to increase the price of their stored gas.
Meanwhile,
Nguyen Ngoc Son from the University of Economics and Law in HCM City told the
local press that in a market where most gas companies raise their prices to
the same level, they cannot be said to be operating in a competitive market.
According
to Son, there were 30 major gas companies in Viet Nam which own different
purchase contracts set at different prices.
But on
Sunday, these companies all posted their new increased price of VND78,000 or
79,000 (around $4) per canister, which made Son think there exists a
collective monopoly.
While
Doanh and Son said the Viet Nam Competition Authority should work to find the
reason for the price hikes, deputy chairman Tran Van Thanh, on behalf of the
Viet Nam Gas Association, sent a request to the Ministry of Finance on
November 28 asking for a reduction to zero per cent of the current 5 per cent
tariff on gas products.
If the
tariff is reduced to zero, a reduction of VND17,000($0.8) per canister could
be passed along to the public.
Industrial
production growth heralds economic recovery
The
regular growth of the industrial sector over the last several months reflects
the distinct signs of recovery that the Vietnamese economy is showing,
according to the Ministry of Planning and Investment (MPI).
MPI
Deputy Minister Dao Quang Thu has told a cabinet meeting that in the first 11
months of the year, although the country's industrial production increased by
only 5.6 per cent year-on-year, this growth rate has been maintained for
several consecutive months.
A
report tabled at the meeting also said that apart from the improved
industrial sector performance, the service sector has continued developing
thanks to the Government's support.
The
support has also seen production pick up in forestry, fisheries and
aquaculture, the meeting heard.
In
November, the industrial product index was up by 2.6 per cent over the
previous month, marking a year-on-year increase of 5.7 per cent.
In the
industrial sector, the processing and manufacturing industries sectors had
registered the highest growth rate of 7.1 per cent.
Pham
Cong Vinh, deputy director of the General Statistics Office, said that it was
the processing and manufacturing industry's high growth that lifted the entire
sector.
A
representative from the Ministry of Industry and Trade also said that exports
of the processing and manufacturing industry in the first 11 months of the
year had made important contributions to the country's export value.
In
spite of the positive signs, the picture of economic growth at two of the
country's biggest economic hubs, HCM City and Ha Noi, is not all that rosy.
According
to the HCM City Department of Planning and Development, four of the 25 growth
targets that the city had set for the year are not likely not be realised,
two of which are investment attraction and budget collection.
This
means that the city's Gross Domestic Product (GDP) is expected to reach 9.3
per cent by the year-end instead of the targeted 9.5 per cent.
Meanwhile,
an official with the Ha Noi Department of Planning and Development said that
because of low purchasing power, many enterprises in the city had mainly
focused on settling their inventory problem and not paid much attention to
investment for further development.
Consequently,
although the city administration had set aside preferential loans worth
VND100 billion (US$5 million) to support its enterprises, just VND20 billion
($1 million) has been disbursed to date, he said.
Nguyen
Mai, former chairman of the State Commission for Cooperation and Investment,
said that Viet Nam's economy still had much potential to develop in coming
years.
However
to do this effectively, private enterprises should be given priority to
develop, Mai said, adding that the private economic sector could bring about
an additional growth rate of between 1 and 1.5 per cent for the economy per
annum.
He
also stressed the need to strongly develop support industries for foreign
invested enterprises and to quickly remove obstacles in disbursing the VND30
trillion ($1.5 billion) housing stimulus package.
If
this credit package was disbursed it would catalyse growth in several
important economic sectors including construction and construction materials,
creating employment for thousands of people, adding around 1 per cent to the
nation's GDP growth every year, Mai said.
Conference
to develop cashew sector takes place in HCM City
The
cashew industry needs to map out an appropriate development strategy as
cultivation areas have shrunk, delegates told a conference on sustainable
development in HCM City last week.
According
to the Viet Nam Cashew Association (Vinacas), the plantation area fell from
nearly 440,000ha in 2007 to 360,000ha now.
Viet
Nam now ranks third in the world, down one spot, and is expected to drop
further to the fourth position, after India, the Ivory Coast and Brazil,
Vinacas said.
Nguyen
Duc Thanh, Vinacas's chairman, said the unstable price of cashew nuts and low
productivity had prompted many farmers to replace their cashew trees with
other industrial ones.
Although
many farmers produce a high-yield cashew, the cultivation areas of this type
of cashew remained small compared to the total cashew cultivation area, he
said.
"Most
of the cashew cultivation areas have not received proper caring techniques,
and offered low yields," he said.
"Viet
Nam has processed about one million metric tonnes of raw cashew nuts a year,
but domestic production has met only 50 per cent of the demand."
It
annually imports about 500,000 tonnes of raw cashews from other countries, of
which imports from African countries accounted for 300,000 tonnes, he said.
At a
cashew buyers and sellers meeting in HCM City last week, many African raw
cashew suppliers also called on Vietnamese firms to invest in processing the
nut in their countries. African countries, as a result, would limit the
exports of raw cashew in the future, making it hard for local processing
firms to import the raw materials, Thanh said.
Hoang
Quoc Tuan, director of the Agriculture Planning Centre, said the cashew
industry must change its development outlook.
"Previously,
we thought that cashew trees should be plant in areas that are not suitable
to plant other trees. This should be changed, just cultivate it at suitable
areas," he said.
In
addition, advanced science and technology should be used in cashew
cultivation to improve productivity and product quality, he said.
Nguyen
Trong Thua, head of the Agro-Forestry Processing and Salt Industry
Department, said the cashew industry, which is one of nine major farm
production industries, would be restructured under the general policy of the
agricultural industry.
The
cashew industry must focus more on more research to create seedlings with a
high productivity, he said.
Localities
should develop zoning plans for cashew cultivation areas and help farmers
with planting techniques and other support to increase incomes for farmers,
which would contribute to ensure a stable material zone for the cashew
industry, he said.
Viet
Nam expects to export about 250,00 tonnes of cashew nut this year for a value
of US$1.55 billion. Including the exports of cashew kernel oil, export
revenue could top more than $1.8 billion, Thanh said.
Source:
VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
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Thứ Ba, 3 tháng 12, 2013
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