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BUSINESS IN BRIEF 13/1
Gov’t
to borrow VND100 trillion through bond sales
The
Government has plans to raise VND100 trillion through government bond sales
in the domestic market this year, according to a report announced by the
Ministry of Finance.
The
ministry fulfilled last year’s G-bond issue target, raising over VND181
trillion. The sum made a great contribution to the State budget balance.
The
ministry continues to consider bond issues as the main capital mobilization
channel for the Government, the report said.
In
addition, although macro economic and financial uncertainties remain, the
stock market saw strong growth in 2013. Trading value jumped over 30% against
2012 while bond trading value has posted up the highest growth rate in
The
VN-Index advanced by 22%. Market capitalization reached 31% of gross domestic
product (GDP) while foreign portfolio investment value rose by around US$3.5
billion from late 2012.
According
to State management agencies, the positive growth will facilitate development
of the equity market in the following years, support capital mobilization and
equitization of State-owned enterprises.
The
nation’s public debt is estimated at 56.2% of GDP at the end of this year,
government debt at 42.6% of GDP and overseas debt at 39.5% of GDP. The
figures are still within the safety zone and do not cause huge impacts on the
macro economy, the report said.
Da
Lat offers finance for flower growers
Flower
cultivation in the Central Highland
Flower
growing enterprises and households will soon be prioritised for preferential
loans to help them implement technological innovations and develop
businesses.
The
provincial People's Committee is collaborating with banks to launch a
preferential package worth VND4 trillion (US$190.5 million) for flower
growers in the region to promote the application of advanced technologies,
said Pham S, vice chairman of the committee.
He
said that the province plans to provide a boost to flower growing, with a
special focus on selling flowers in pots instead of selling stems and
flowering branches.
This
is due to the fact that the demand for potted flowering plants is on the rise
in both domestic and foreign markets.
At
present, the province has 7,100ha of flower farms, mostly in Da Lat City and
the districts of Duc Trong, Lac Duong and Don Duong.
Last
year, the region produced about 2.1 billion flowering branches, of which 220
million were exported. The major flower importing markets include
Each
hectare of flowering fields in the province helped generate VND122.2 million
($5,800) last year, which is 2.5 times higher than average revenues of the
entire country.
Further
statistics show that there are flower fields of 38,000ha that generate
revenues of VND100 million – 250 million ($4,700 -$12,000) per hectare per
year, about 15,250ha with a revenue of VND250 million – 500 million ($12,000
-$24,000) and over 10,000ha with a revenue of VND500 million – VND1 billion
($48,000).
Vice
chairman Pham S said that growing high quality flowers has been the strength
of the province for decades due to many reasons, such as its ideal climate,
the expansion of flower growing areas and the improved cultivating and
processing technologies.
However,
there are a few challenges that still need to be dealt with, such as the lack
of market information, technology and the limited capacity of local
enterprises.
It is
for these reasons that financial assistance was a basic need, he added. This
would help flower growers promote scientific and technological applications
in the business. A similar model when applied to coffee production proved
effective.
The
province was also urged to improve linkage with neighbouring localities, in
terms of human resource training, technology transfer and market expansion,
because the coastal southern central region and Mekong Delta region,
including
Agriculture
expert Duong Ngoc Thi from the
He
suggested that the province outline a long-term strategy for flower and
vegetable cultivation, which would provide growers the ability to forecast
market demand and human resources and to use planning and facilities for
processing, production and trade.
Plant
tissue culture zone comes into operation in HCMC
The Ho
Chi Minh City Biotechnology Centre (HBTC) launched a dedicated zone for plant
tissue culture in District 12 on January 4.
It is
expected to be a centre for scientists to conduct research and apply
biotechnology into the plantation of vegetables, flower, ornamental and
medicinal plants.
In
addition, it will be used as a place to store the genomes of selected plants
and created new plants with desired traits.
The
plant tissue culture zone of the HBTC is billed as the most modern research
laboratory on plants in the southern region.
It
includes greenhouses and net houses equipped with computer-controlled
irrigation and cooling systems, said HBTC Director Duong Hoa Xo.
Other
facilities of the HBTC is scheduled for completion by the end of 2015.
HSBC
forecasts bright year for Vietnamese exports
The
future is looking bright for export-oriented businesses, according to a
forecast by economists at the
In
their latest report, the HSBC said the reason is simple:
Despite
a faltering global demand in 2013 and declining commodity prices, exports
managed a respectable expansion of 15.4% principally due to to a rebound in
the garment and textile sectors as well as an increase in foreign investment
in the electronics sector, it said.
The
report showed that
According
to HSBC,
Export
businesses, especially foreign-invested manufacturing firms, will provide a
much needed boost to
HSBC
forecasts
The
increase of new orders, coupled with reduced inventories, means that output
will likely rise in the coming months to match the demand for goods. The
sharp increase of quantity of purchases reflects anticipation of rising
demand.
Inflation
trended downwards to an average 6.6% year-on-year in 2013 from 9.3% in 2012
and is likely to accelerate slightly in 2014 due to higher energy and food
prices, the report noted.
With
US and EU GDP expected to expand in 2014, the most likely scenario is that
the demand for Vietnamese goods will increase, especially for such goods as
apparel and electronics and the manufacturing sector to continue its upward
trend.
The
most positive news from the PMI is the sharp rise of the employment sub-index
which reflects the country’s competitiveness in labour-intensive
manufacturing accounting for high inflows of foreign investment in 2013.
Dong
Nai targets US$12 bil from exports
Southern
Dong Nai province has set a target to increase exports by 9-10% over last
year and earn a total of US$11.8-11.9 billion this year.
To
fulfill the target, the provincial Industry and Trade Department has
developed an action plan focusing on tasks and solutions to assist
enterprises clear bad debts and expand markets.
Department
Director Le Van Danh said that his agency has improved the quality of
information related to its market forecast and has updated policies on
import-export
activities
and is providing businesses with better and more comprehensive information
pertaining to the Free Trade Agreements (FTA) negotiations between Vietnam
and other nations.
In the
future, the department plans toorganise a delegation of businesses aimed at
penetrating such markets as Cambodia, Germany, Dubai, Ukraine, Russia,
Myanmar, the US, ASEAN, India and China.
Last
year, Dong Nai raked in over US$10.8 billion from exports, up 9.4% compared
to the previous year.
The
highest export earnings came from the
Vietnamese
and Thai local firms discuss cooperation opportunities
More
than 50 business representatives from the central
Their
discussion was focused on industry, agriculture, science and technology,
aqualcultre and seafood processing, health care, education and tourism.
Representatives
from the Thai companies said they hope Vietnamese partners will offer the
best possible conditions for their investment in the Vung Ang and Cau Treo
economic zones while Ha Tinh businesses said they also have the same desire
to run investment in
The
two provinces proposed mechanisms and policies to their authorities with a
view to promoting investment and economic and trade links between
Ninh
Thuan nuclear project requires comprehensive implementation
Deputy
Prime Minister Hoang Trung Hai has asked relevant agencies and ministries to
take every effort to ensure the progress and efficiency of the Ninh Thuan
Nuclear Power Plant project.
He
made the request while chairing a meeting of the National Steering Committee
for Ninh Thuan Nuclear Power Plant on January 2 held to supervise and direct
the implementation of the
At the
meeting, Vietnam Electricity (EVN) reported on the implementation of the
project components invested in by EVN, including the file approving the
project location, the investment report, comparisons between technological
designs of Ninh Thuan 1 Nuclear Power Plant. Issues related to feasibility
studies and consultation on the The Ninh
Thuan
2 Nuclear Power Plant project were also discussed at the meeting.
Other
agencies involved in the project made reports on infrastructure projects,
human resource training and residential migration and resettlement, among
other necessary steps to serve the nuclear power project.
The
Deputy PM asked the Ministry of Industry and Trade to review the overall
progress of the project to map the progress of specific tasks to allow
component items to be carried out properly as planned, particularly those
related to technology and operational training issues.
In
addition, he directed the Ministry of Science and Technology to implement the
dossier on the plant's location, assess the environmental impacts and
building up legal documents and mechanisms for the project.
Stock
market offers rich opportunities
With a
gradual improvement in the economy, many experts believe that the stock
market could be the most attractive investment channel in the new year.
Based
on the economy’s results this year in conjunction with the predicted effects
of the government’s policies next year, experts believe that the real estate
market will not necessarily experience an easy recovery and the gold and
foreign currency markets are likely to remain tightly controlled.
Financial
expert Nguyen Tri Hieu was upbeat about the stock market’s prospects. “In a
positive scenario, the VN-Index will increase by at least 30 per cent
compared with the end of 2013, equal to 600-650 points in 2014,” he said.
The
attractiveness of the stock market is said to be result of positive
macroeconomic developments.
According
to economist Vu Dinh Anh, a low consumer price index (CPI) has helped create
the conditions to stabilise the macro economy and implement solutions to
enhance gross domestic product (GDP) growth in 2014. Anh claimed the GDP
growth of 5.8 per cent and the CPI target of 7 per cent next year were quite
achievable. These indicators were sufficient grounds for optimism about the
stock market, he claimed.
The
more healthy economy would also help listed companies recover. Tran Van Dung,
chairman and general director of Hanoi Stock Exchange (HNX) said inventories
among listed firm were decreasing, their losses were smaller and profits
higher. In the coming time, as the economy recovered more, listed enterprises
would post brighter profit forecasts.
“These
will be the basic factors that will help the stock market in 2014, thereby
offering more attractive investment opportunities to investors,” said Dung.
Tran
Quang Vinh, investment director of Thien Viet Securities Company said the
stock market was recovering well with improved liquidity and was receiving
greater interest from foreign investors.
An
additional factor that could point to a resurgence of the stock market next
year included the potential lifting of the 60 per cent cap for foreign share
ownership for listed companies, which was mentioned in the draft decision
submitted to the prime minister by the State Securities Commission last
November.
“In
addition, the positive progress in negotiating the Trans Pacific Partnership
(TPP) might generate sharp changes in the stock market in 2014,” said Tran
Minh Hoang from Vietcombank Securities Company.
Grounds
for optimism as market thaws
The
residential for sale market is ending the year with signs of recovery.
The
According
to figures from CBRE, prices over the wider apartment for sale market fell
some 30 per cent compared to their peak in 2007, and prices and have now
reached levels deemed to be what the market feels is affordable.
Well
located good quality developments are registering higher sales. Those include
the Estella, Vista,
The
catalyst appears to be discounts and extended payment terms that allow buyers
to make payments over three to five years and furniture packages. Higher
sales in these projects have been consistently reported since early this
year, and this trend is expected to continue into next year.
Meanwhile,
the
Popular
developments have included
Dang
Ngoc Chau, senior manager for residential project marketing at CBRE, said
after the stagnation of recent years, the residential market in Ho Chi Minh
has turned into a property buffet party for residential purchasers.
“The
weak market has spurred a range of incentive programmes that have sparked
some interest.
In
A
range of projects have been opened for sale in the market, such as Tan Tay
Do, Van Phu, Sky Garden, Golden West, Discovery Complex and many others.
According
to experts, the key factor remained price. Developers who understood that
demand for mid and low-end residential remained very high and were focusing
on developing projects for this market segment would do well.
According
to Trinh Dinh Dung, Minister of Construction, property inventories compared
to the same period of last year had fallen.
Figures
from Ministry of Construction revealed that unsold residential developments
had remarkably reduced in the closing months of 2013.
Despite
the end of the year prediction that VND96,800 billion of property would still
remain in stock, this figure was 25 per cent lower that in the first quarter
of the year.
However
Dung added that positive signs could be seen in the low-end and social housing
projects. Transactions in this segment had doubled compared to the first two
quarters of the year.
Buy-to-let
offers ideal investments
Buy-to-let
property has been highlighted as a possible bright point in an otherwise
gloomy property market.
According
to Truong An Duong, head of the
“However,
this investment psychology has changed drastically. Besides the capital gain
aspect, investors now also pay attention the property’s ability to bring in a
stable flow of revenue,” Duong said.
The
instability of gold or stock markets has also encouraged individual investors
to lean towards the buy-to-let option.
He
said in some of the projects Savills was selling there were an increasing
number of apartments that have been bought and leased out.
Savills’
study shows that the current gross yields from buying and leasing apartments
have reached 4 to 6 per cent per year.
Due to
the interest rate ceiling being continuously adjusted downward since last
year, this yield rate is quite attractive to investors, especially those who
have favoured real estate as an investment channel.
For
buy-to-let investors, having a stable source of tenants remains critical when
reaching a purchase decision.
Some
developers have offered numerous programmes to support purchasers of
buy-to-let apartments, such as guarantees of leasing revenue during the first
year, or aid in searching for tenants without commission fees.
Some
developers offer buyers flexible payment schedules such as partial payment
upon handover, with the remainder being paid during the next two to three
years with little or no interest.
Reasonable
prices are another reason that the buy-to-let option has attracted investors.
Buy-to-let
apartments on mid to high-end developments are preferred by most foreigners
who currently work and reside in the cities.
Besides
expatriates who reside in serviced apartments or villas, foreigners with a
more limited housing budget opt to rent buy-to-let apartments.
The
rent for buy-to-let units is normally 20 to 30 per cent lower than serviced
apartments in the same location and development.
Foreign
Direct Investment (FDI) inflows to
Foreign
tenants often prefer Grade A or Grade B apartments.
There
are a range of housing for lease in Hanoi, from high-end apartments (100 to
150 square metres) leased at VND18 to 30 million per month per unit, mid-end
apartments from VND12 to 18 million per unit per month, and low-quality
houses at VND1.5 to 2 million per unit per month.
Rice
prices inch up in
The
Vietnam Food Association said that in December, enterprises have exported
over 303 tons of rice, worth US$153.5 million. The whole year export is 6.5
million tons of rice achieving US$2.9 billion.
By the
afternoon of December 30, traders in Dong Thap and Kien Giang provinces in
the Mekong delta proposed to pay VND5,100-5,300 a kilogram for fresh normal
rice; VND5,400-5,400 a kilogram for fresh long grain type and VND 6,200 a
kilogram for aromatic long-grain rice.
While
5-percent broken rice was quoted at VND8, 300-8,400 per kilogram, 15 percent
broken rice is at VND7, 950-8,050 a kilogram and 25 percent broken rice at
VND7, 750-7,850 a kilogram.
It
means that rice in the
Soc
Trang sustains strong economic growth
The
Mekong Delta
So far
this year, the province has granted licenses for 11 projects with combined
capital of nearly VND592 billion (US$28 million). The provincial leaders have
also met 28 delegates who want to explore opportunities for investment in Soc
Trang. On December 11, a mission from the Japan External Trade Organization
(JETRO) HCMC, led by Kenji Omi, paid a visit to Soc Trang to learn about the
province’s investment environment, especially in industrial parks and
complexes, services and tourism. On the same day, the province’s vice
chairman Le Thanh Tri met representatives of the
On
November 25, at the Mekong Delta Economic Corporation Forum held in
In
June, Korean Daelim Industrial Co. and East-West Korea Power Co. signed a
memorandum of understanding with
In the
agricultural sector, the province has harvested 2.2 million tons of rice this
year, mainly thanks to the large-scale paddy fields covering 24,688 hectares
that help increase productivity by 5-7% and decrease production cost by 12%
compared to the fields that use traditional cultivation methods. The level of
mechanization in rice harvest has now risen to 80% from the 25% in 2010, with
650 combine harvesters sponsored by the province. This helps improve rice
quality and profit for farmers, and cut costs. The fishery sector also fares
well, whose farming area covers 68,750ha, of which 15,686ha is for rearing
white-legged shrimp, up 6.7% and 3.5 times respectively, against 2012. The
total fishery production in 2013 is estimated at 197,000 tons, up 8.83% from
last year.
Manufacturing
and export have also recovered. A majority of main exports are on the rise,
raising total industrial production value to VND8,090 billion. Production of
baked bricks is up by 25.64%, followed by rice with 24.65%, frozen fish paste
with 3.5%, sugar with 2.39% and frozen shrimp with 0.03%. Furthermore, the
province has earned US$480.9 million in export revenue, up 11.63% against
2012, of which seafood contributes US$450.5 million, up 26.21%.
Goods
supply and demand are stable while inflation is controlled. Total retail
sales have reached VND37,000 billion, up 17% against 2012. The consumer price
index is estimated to be lower than 6%.
In
banking, this year’s total deposits are estimated to reach VND13,645 billion,
up 15% compared to 2012. Loan interests continue the downward trend, at 9%
per year in agriculture and export (down 2.9%), 11.5% per year in
manufacturing (down 3.1%) and 13.8% in the smokeless industry (down 2.2%).
Soc
Trang has collected VND1,702 billion for the provincial budget, of which VND30
billion is from import and export. The province also expects to disburse
almost VND1,790 billion, including official development assistance (ODA)
capital, to carry out 87 projects, 42 of them to be completed within this
year.
Cultural
and social issues have also witnessed improvement. Social welfare is properly
conducted and the poverty reduction target is attainable. Most of those who
had great contributions to the country have earned medium incomes. The
settlement of lawsuits and complaints of residents and the fight against
corruption have been implemented effectively.
Only
30% of real estate firms expected to survive through next year
Only
20-30% of Vietnamese real estate firms are forecast to survive through the
next year, said Vice Chairman of HCM City Real Estate Association Nguyen Van
Duc.
Only
30% of real estate firms expected to survive through next year
Duc,
who also serves as Deputy Director of Dat Lanh Real Estate Company, said “A
range of idle property projects give proof of the sluggish real estate
market, forcing many companies to sell them to other firms."
He
added that solutions to save the market should have been made in 2011, and
that now it is too late to improve the situation and the solutions presented
this year will be ineffective.
“This
year's VND30 trillion (USD1.42 billion) package from the government to save
the property market has also failed to significantly change the situation. To
date, only 2% of this package has just been disbursed,” Duc said.
He
added that the Ministry of Construction has failed to accurately assess the
market as well as cumbersome and complicated procedures facing companies in
turning social housing projects into commercial housing projects.
Despite
the package, people have been facing administrative procedures and other
difficulties in getting loans through banks. They must provide proof of their
assets, the value of their homes and income, among other requirements.
The
Ministry has issued a circular to instruct the areas which are being
converted from large apartments into small ones, but the procedures last
between three and six months.
This
year, for example, there has not been any social housing project in
According
to Mr. Duc, not only the prices of homes and land, but also prices of petrol,
motorbikes and food play a factor. He added that tt is important to
raise incomes as well as reduce property prices.
When
undertaking estate projects, investors pay for building materials and other
costs upfront, but in a fluctuating market it has been difficult for them to
ascertain the worth of these projects in when finished, especially
considering fluctuations in interest rates.
Textile
exports forecast to grow
The
Viet Nam Textile and Apparel Association (VITAS) expects the export value of
the textile and apparel industry to show strong growth this year, an official
of the association said.
Le
Tien Truong, VITAS' deputy chairman, told online news ven.vn that according
to the global economic forecasts by the World Bank and the International
Monetary Fund, the world economy's outlook is expected to improve in 2014, as
large economies, such as the
An
improving global economy will be favourable for
Therefore,
the exports of textile and apparel by value could rise 12 per cent in 2014
from the previous year, he added.
To
reach that target, the export industry will have to continue implementing its
solution systems, which have ensured, thus far, that the industry has not
remained backward, Truong noted.
Hence,
the industry focuses on quality, price, the speed of supplying products to
the market and the ability to provide customer care services, which are
likely to ensure the nation's exports retain their competitive edge.
Truong
said 2013 was a successful year for
That
represents a year-on-year increase of 18.6 per cent to $17.9 billion for
textile and garment exports and a 15.7 per cent surge to $2.1 billion for
fibre products.
The
Viet Nam Textile and Garment Group had reported a gain of 11.2 per cent from
2012's figure to $2.91 billion in 2013.
The
industry boasted a trade surplus of $5.12 billion last year, with imports of
raw materials estimated at $14.88 billion. Local demand for textiles and
apparel also increased 12 per cent, he added.
Truong
noted that an accurate market forecast is important for the success of the
industry as it provides a framework for enterprises to base their production
and business plans.
Garment
exports went up 13 per cent to the
The
industry also has a strong potential to export products to the EU market.
Every year, the EU spend around $250 billion to import the staple, while
That
means
Ministry
to stabilise energy prices
The
prices of petrol and gas will continue to be partly market-driven and partly
managed by the State in 2014.
The
management of petrol and oil prices would include monitoring price movements
in the global energy market.
However,
to ensure stability of local energy prices, the State, especially the
Ministry of Finance and the Ministry of Industry and Trade, will continue to
manage the prices of petrol and oil with the help of the price stabilisation
fund and subsidies.
In
2013, the local prices of petrol and gas were relatively stable because of
the use of the price stabilisation fund and subsidies, even though prices in
the international petrol and gas market were volatile, according to the
Ministry of Finance.
Last
year, there were 11 adjustments in local petrol and gas prices, including six
downward adjustments that lowered the price by a total of VND2,160 per litre,
and upward adjustments that increased the price by a total of VND3,200 per
litre. Overall, the prices of petrol and gas surged 4.48 per cent from their
levels in 2012.
The
price adjustments were in compliance with the market regulations issued by
the Ministry of Finance and the Ministry of Industry and trade.
The
most recent adjustment in energy prices took place on December 18: the price
of A95 petrol rose VND580 per litre to VND24,710, while the price of A92
petrol was raised to VND24,210. The price of diesel was increased by VND650
per litre to VND22,960, while the kerosene price was hiked by VND380 per
litre to VND22,400.
Several
companies and households are worried about another hike in energy prices
before the Tet festival because that will lead to hikes in the prices of
goods and services.
Nguyen
Van Thanh, chairman of the Viet Nam Automobile Transport Association, told
the Viet Nam News Agency that several transport companies are planning to
increase transport fees, adding that this could have an impact on ordinary consumers,
as the Tet festival approaches.
The
Ministry of Finance acknowledged that an increase in prices is likely due to
a surge in petrol and oil prices in the global market. Without a price hike,
domestic petrol dealers could face losses.
Finance
Minister Dinh Tien Dung pointed out that every adjustment of petrol and oil
prices in the domestic market is aimed at ensuring the stability of the
economy and curbing inflation by preventing sudden or large increases in
energy prices.
The
ministry will consider the interests of ordinary consumers first, followed by
the interests of companies and the State when it decides to hike energy
prices again, according to Dung.
Nguyen
Anh Tuan, head of the Price Management Department under the Ministry of
Finance, said the prices of petrol and oil are managed under regulations
contained in Decree 84/2009/ND-CP on trading petrol and oil.
The
country imports 70 per cent for its demand of petrol and oil, so it is highly
vulnerable to changes in global prices, Tuan added.
The
two ministries do not decide specific prices for petrol dealers; only ceiling
and floor prices are established.
The
regulation aims to encourage enterprises to choose partners who can provide a
reasonable trading system, which can reduce costs and offer appropriate
selling prices to consumers.
Price
policies to boost market transparency
Economist
Vu Dinh Anh said market prices in 2014 will see a certain impact from
traditional price policies and a temporary decline in gross investment and
consumption.
The
relaxation of fiscal policies and the issuance of VND17 trillion (US$809
million) worth of investment bonds during 2011-15 will also affect prices on
the ground.
The
government's attempts to help enterprises overcome crises and accelerate
economic growth will help to circulate the widespread flow of money more
rapidly, and this will likely put some pressure on inflation.
Economists
argue that any change in prices this year should depend on the administration
of electricity, coal, fuel, healthcare services, and education.
Tran
Van Hieu, deputy minister of finance, confirmed that essential items will be
managed according to the market-oriented principles formed by the State's
administration.
Experts
called for a flexible approach to issuing, allocating and implementing
policies with a provision for minimising the impact on the market. The State
was also expected to apply anti-monopolistic measures to raise competitiveness.
Prices
will be publicised to reinforce public scrutiny.
Prime
Minister Nguyen Tan Dung instructed the Ministry of Finance (MoF) to improve
price administration for goods, especially essential items, to curb
speculation and unreasonable prices.
In an
attempt to control and stabilise prices prior to and during Lunar New Year
2014 (Tet), MoF collaborated with the Ministry of Industry and Trade to
investigate the prices and quality of commodities and essential goods that
will be used during the festive season.
Nguyen
Anh Tuan, head of the Price Administration Department, noted that the initial
investigation showed that the market had a stable supply of goods, so there
will not be much pressure on price administration.
Price
administration in 2013 has been well appraised. MoF's Price Administration
Department explained that the movements of prices last year were the same as
those seen every year. The department's efforts helped keep the prices
reasonable and stable.
The
central
The
province also hopes to achieve an industrial production value of about VND10
trillion ($470 million) this year.
Towards
these goals, it will focus on completing four IP projects approved by the
government: Chan May IP in Phu Loc District, Phu Bai IP in Huong Thuy town,
Tu Ha IP in Huong Tra town and Phong Dien IP in Phong Dien District.
It
will also allocate land lots to develop other IPs in the districts of Phu
Vang, Phu Loc and Quang Dien, while establishing 16 small-scale industrial
clusters in the province with a total area of about 650 hectares.
In
2013, the province granted investment certificates to nine new projects and
allowed three others to increase their investment capital, with a total
registered capital of almost VND1.9 trillion ($89.3 million).
The
province's industrial parks have established 87 projects so far, with a total
investment capital of VND17.7 trillion ($831.9 million).
SOEs
named for ADB reform project
Three
Vietnamese State-owned enterprises (SOEs) will be selected for the SoE Reform
and Corporate Governance Facilitation Programme - Project 3, funded by the
Asian Development Bank.
The
loan will be guaranteed by the Government, according to the Ministry of
Finance.
The
programme runs from December 2009 to December 2015, with a total value of
US$630 million: $600 million from Ordinary Capital Resources and $30 million
from the Asian Development Fund.
Top
carmaker delays on greener Euro 4 standards
Truong
Hai Auto Corporation, the largest domestic automobile company in
In an
announcement sent to the company late last month, Deputy Prime Minister Hoang
Trung Hai stated the Prime Minister had agreed “in-principle” to allow Chu
Lai-Truong Hai engine plant “to manufacture and sell 100,000 diesel auto
engines until the end of 2018”.
The
permission followed a plea by the corporation and Quang
According
to a Government decision issued back in 2011, all cars and motorbikes
manufactured or imported in
During
the two-year extension, Truong Hai must prepare investment plans and upgrade
production lines to manufacture higher standard engines.
Chu
Lai-Truong Hai was the first auto engine factory in
According
to Truong Hai, it has signed a technology transfer contract with the
Under
the Government’s roadmap, Chu Lai-Truong Hai would have to stop manufacturing
Euro 2- and Euro 3-standard engines in January 2017. The company had called
for a revised timescale as the implementation of higher production standards
would make it difficult to produce sufficient numbers of the current engine
types within just three years.
Quang
Nam People’s Committee pointed out that the technology upgrade for
manufacturing Euro 4 engines in such a short time would be very costly,
backing the manufacturer’s request to extend the timeline for manufacturing
Euro 2 and Euro 3 engines.
Truong
Hai previously obtained preferential incentives from the Government for the
project when recognised as a key national engineering project.
This
status allowed the company to take loans up to 85 percent of project’s total
value from the Vietnam Development Bank with a preferential interest rate
over 12 years. Truong Hai would also receive a government guarantee when
borrowing capital from foreign credit providers. The company enjoys hugely
discounted import and export taxes.
It has
yet to meet the domestic consumer demand that has continued to increase over
the past two decades. Its focus on assembly has prevented it from developing
a complete manufacturing plant.
Bac
Lieu salt receives geographical indication protection
The
National Office of Intellectual Property under the Ministry of Science and
Technology has recognised the protection of geographical indications for salt
– a product of the Mekong Delta
According
to Huynh Minh Hoang, director of the provincial Department of Science and
Technology, the protection is granted to salt produced in areas of Vinh Thinh
and Vinh Hau communes in Hoa Binh district, and Long Dien Dong, Long Dien Tay
and Dien Hai communes in Dong Hai district, where the natural conditions are
favourable for salt production.
Since
the 18 th century, Bac Lieu solar salt has been famous for its high
proportions of Natri Clorua, Magnesium, Calcium and a low ratio of sulphate,
making it moreish.
Making
salt is a traditional trade of people in Hoa Binh and Dong Hai districts of
Bac Lieu. The product has been used widely in Vietnam and exported to some
countries, mostly Japan.
The
protection of geographical indications for Bac Lieu salt is expected to
enhance the trademark of the product in both domestic and foreign markets.
Bac
Lieu aims to develop spearhead economic sector in 2014
The
Mekong delta province of Bac Lieu has set a target for 2014 to harvest 1
million tonnes of rice and 275,000 tonnes of aquatic products, which are
components of its spearhead economic sector .
The
province advocates maintaining the current rice cultivation area, taking
proactive control of pandemics along with multiplying efficient production
models including the large-scale field one.
Its
agricultural sector is also about to help local farmers apply advanced
technology in production to generate high-yield and low-cost produce.
In
addition, the locality intends to better the collaboration of the sides
involved in the large-scale field model and other collaborative models as
well as help enterprises invest in places which are imbedded with
high-quality materials for export.
In
terms of aquatic cultivation, Bac Lieu will home in on developing offshore
exploitation and breeding cages of aquatic varieties such as mudskipper and
prawn under the VietGAP standards in hope to help locals diversify their
income streams and contribute to mitigating environmental pollution.
In
particular, the local agricultural sector encourages farmers to adopt
high-tech and intensive prawn breeding models.
Despite
difficulties facing local agriculture and aquaculture production last year,
it still produced 990,500 tonnes of rice and 263,000 tonnes of aquatic
products, more than double the yearly target.
Tien
Giang supports farmers with high-yield fruits
The Mekong
Delta province of Tien Giang is undertaking a number of programmes to help
local farmers improve the quality of their fruit varieties to raise their
incomes.
The
move is part of the Quality and Safety Enhancement of Agricultural Products
and Biogas Development (QSEAP) project funded by the Asian Development Bank
(ADB) during the 2010-2015 period.
Last
year, Tien Giang province spent over 5.8 billion VND (272,600 USD) helping
farmers plant more than 5.5 million Queen pineapples and nearly 17,000 dragon
fruits that are productive and of high quality.
The
locality boasts an area of over 70,000 hectares for fruit cultivation, the
largest orchard acreage in the delta, producing nearly one million tonnes of
various fruits, including special ones such as Hoa Loc mango, Tan Lap
pineapple, Vinh Kim star apple, Ngu Hiep durian and Co Co grapefruit.-
Gemadept
sold tower
HoSE-listed
Gemadept Corporation has sold the 22-floor Gemadept Tower in Ho Chi Minh
City, bringing in a hefty cash sum to be used for investment in logistics and
port projects.
Gemadept
concluded the deal in December with four subsidiaries of Korean CJ Group,
according to a company release. The proceeds from the transaction was
recorded in the 2013 income statement.
Instead
of selling the asset directly, Gemadept founded the wholly-owned firm
Marproco, using the tower as paid-in capital, then sold its interest in the
newly-established concern.
However,
Gemadept only sold 85 per cent of Marproco this year, with the remaining 15
per cent reserved for 2014.
Gemadept’s
moves to sharply increase Marproco’s charter capital to VND936 billion ($44.3
million) from the previous VND6 billion ($284,158), has caused Vietcombank
Securities (VCBS) to estimate the building’s value at VND930 billion ($44
million). As the asset has input costs of VND218.4 billion ($10.3 million),
the deal has earned the company VND711.6 billion ($33.7 million).
The
building earned Gemadept more than VND64 billion ($3 million) from office
leasing in the first nine months of 2013, figures unchanged against the same
period last year. Gemadept reported total sales of VND1.827 trillion ($86.53
million) and pre-tax profit of VND186.5 billion ($8.83 million) in the same
period. With shareholder targets for whole year sales and pre-tax profit set
at VND2.3 trillion ($108.93 million) and VND500 billion ($23.7 million)
respectively, the company looks set to meet their expectations comfortably
through the sale of the
Gemadept
will use the proceeds to invest in logistics and port projects, but specific
details have not yet been released.
The
firm now operates four ports in the country with two others under
construction.
HCM
City export processing, industrial zones draw US$576 million investment
According
to the Ho Chi Minh City Export Processing and Industrial Zones Authority,
total newly-registered and adjusted investment capital reached US$576.77
million by the end of December 2013, achieving 115.35 percent of the plan, up
40.09 percent compared to previous year.
Of
which, foreign investment capital was at $358.55 million, up 72.7 percent
over the previous year while local investment nearly touched VND4.58 trillion
($218.21 million), up 6.91 percent compared to that in 2012.
In
2013, 20 projects had to temporarily call halt to operations or stop
operations, comprising of 13 foreign direct investment projects with total
investment of $18.37 million and 7 local projects with total investment of VND122.8
billion.
32
other projects liquidated ahead of schedule due to ineffectiveness with five
FDI projects with total investment of $6 million moving to other locations
out of the industrial zone, and 27 local projects with total investment of
nearly VND2.08 trillion.
In
addition, 35 projects had to reduce by 20-30 percent of its capacity due to
economic difficulties.
Last
year, Japan was the biggest investors with investment accounting for 47.38
percent of total investment, followed by Singapore with 26.27 percent, and
Australia with 14.26 percent.
Source:
VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
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Chủ Nhật, 12 tháng 1, 2014
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