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BUSINESS IN BRIEF 11/2
Diesel
price decreases by more than 100 VND per litre
The
Ministry of Finance on February 10 asked petrol businesses to reduce their
selling prices of diesel once again, this time by a minimum of 109 VND per
litre as of 8pm on the same evening.
The
previous price of diesel oil was 22,640 VND (1.06 USD) per litre.
This
is the second adjustment of the diesel price this year. The first change took
place on January 27 when the price of the product was slashed by more than
300 VND per litre.
The
ministry asked petrol businesses to stabilise the selling prices of other
products, such as mazut, unleaded petrol, RON 92 and kerosene.-
Stabilizing
market prices – a primary task
The
Ministry of Industry and Trade (MoIT) has directed its relevant agencies to
closely monitor market prices and make an immediate intervention to stabilize
the market after the Lunar New Year (Tet) holiday.
Trade
experts said the commodity market had sufficient inventory, meeting consumer
demand during the Tet holiday which fell in late January.
MoIT
statistics show total retail sales and social services in January reached
VND237.5 trillion, up 2.8% compared to the previous month and up 13% against
the same period last year.
The
market management watchdog fined more than 10,000 cases out of 15,000
inspected, contributing around VND20 billion to the State budget.
The
ministry says it will introduce support policies to encourage businesses to
bring “Made-in-Vietnam” goods to rural and remote areas and accelerate
supervision and control over trade frauds and border trade activities,
including the transportation and trading of counterfeit and contraband goods.
It
will actively implement the “Vietnamese people use Vietnamese products”
campaign and improve trade promotion efficiency at home and abroad.
The
MoIT will work with the Ministry of Finance to adjust market-oriented prices
of petroleum, electricity and coal so as to harmonise interests of consumers,
businesses and the State.
Rice
exports slump to record low in January
The
Vietnam Food Association (VFA) announced on February 10 the exported volume
decreased by 24.11% and its value was down 30.52% (FOB) and 16.42% (CIF).
The
VFA estimated around 300,000-500,000 tonnes of rice are expected to be
shipped in February.
VFA
said despite attaining the set plan, rice exports in January hit a record
low. Businesses mainly shipped their products to the
The
lackluster January rice exports are attributed to the lack of demand from
traditional markets.
Major
trade partners like
Exported
price in January was stable at US$405-401 per tonne for 5% broken rice, the
same as that from
The
current price is US$395 per tonne but will tend to decline when the
winter-spring crop in the Mekong Delta comes near, VFA forecast.
Vietnam
attends ASEAN-EU Aviation Summit
Minister
of Transport Dinh La Thang is scheduled to deliver a keynote speech on
aviation safety at the ASEAN-EU Aviation Summit in
The
meeting aims to strengthen and reshape political, technical and industrial
cooperation in aviation between ASEAN and the EU.
Vice
President of the European Commission in charge of transport Siim Kallas said
the EU should engage in
With a
combined population of more than 1.1 billion, ASEAN and the EU have great
potential for increasing aviation cooperation to benefit their residents.
He
affirmed that the summit marks an initial step in a new era of cooperation
between the EU and ASEAN.
During
the summit, representatives from airlines, airports, air navigation service
providers and Government officials will discuss a wide range of issues
including market prospects in ASEAN and the EU, the establishment of single
aviation markets and experience of the EU and ASEAN, as well as removing
trade barriers.
Conference
helps expand export market
The
southern
The
province will also focus on developing its relations with
Dong
Nai will organise trade promotion activities, hold conferences to implement
signed free trade agreements and anticipate the advantages brought by the
Trans-Pacific Partnership agreement, which is expected to be signed this
year.
Director
of the provincial Department of Industry and Trade Le Van Danh said that Dong
Nai’s export turnover hit more than US$10 billion in 2013, accounting for 10%
of the national figure.
Its
main exports include footwear, garments and textiles and wooden products.
Dong
Nai’s fresh mango shipped abroad
The
Suoi Lon cooperative in the southern
Chairman
of the cooperative Nguyen The Bao said the first container of 21 tonnes of
mango is expected to anchor in the European country by late February.
Besides
This
is the first time local fresh mango has been exported in large quantities.
Statistics
released by Dong Nai’s Department of Agriculture and Rural Development show
that the province has so far exported five types of fruit including
jackfruit, durian, mango, dried banana and dragon fruit, to international
markets, including notoriously picky ones such as the US and Europe.
Speeding
up
Deputy
Prime Minister Hoang Trung Hai inspected the progress of the Nhan Co Aluminum
Plant in the Central Highlands
He
lauded efforts of the Vietnam National Coal and Mineral Industries Group
(Vinacomin) – the project’s investors - as well as the local authorities in
the implementation of the project.
He
asked for closer coordination between the investors and relevant agencies to
speed up the project.
It is
necessary to step up the construction of a red sludge reservoir, ensuring
environmental protection, he said.
The
minister also emphasised the need to ensure the quality of the construction
of the plant, while asking the investors to give priority to the ground
clearance as well as compensation and resettlement for local people.
The
plant should offer training courses and employment to local labourers,
especially those from ethnic groups, he said.
According
to a Vinacomin report, the project is 70% complete with a total
implementation value of VND8.2 trillion.
The
plant will be put into trial operation in the third quarter this year, so
that the first commercial products can be produced by the end of 2014.
In the
first phase from 2007 to 2014, Nhan Co Aluminum Plant, with a total
investment of VND11.76 trillion (US$552.720 million) is designed to produce
650,000 tonnes of aluminum a year and double its output after 2015, using
advanced and environmentally-friendly technology.
VND30
trillion for Danang-Quang Ngai Expressway
Work
has started on the first phase of an expressway linking Danang city and Quang
Ngai province in the central region.
The
140km road is being built at a cost of nearly VND30 trillion sourced from
World Bank and Japan International Cooperation Agency (JICA) loans and the
Vietnamese Government’s corresponding capital. It has 4 lanes and is 26m in
width.
Quang
Ngo
Khac Tuan, Vice General Director of the Civil Engineering Construction
Corporation No 4 in charge of bidding package 3A, said the corporation has
installed nearly two thirds of stakes and several bridge piles. It expects to
finish work ahead schedule.
Accelerating
rice trade with Africa
The
Vietnam Food Association (VFA) reports
Vietnamese
rice is favoured in
Last
year,
It
also signed such an MoU with
In
addition
It is
hoped that these MoUs will help rice export businesses fulfill contracts with
partners and avoid the unnecessary risks of paying through an intermediary.
To
help domestic businesses boost rice exports to Africa, the Ministry of
Industry and Trade will make a fact-finding tour of two key markets,
The
ministry will invite African businesses to visit
The
southern hub city of
In
order to reach this goal, the city will implement a variety of solutions,
with a focus on supporting local firms to overcome their difficulties and
enlarge their businesses, said Le Thi Dao, deputy director of the municipal
Department of Industry and Trade.
Assistance
in IT development and expansion of exports would be also included, she added.
Economists
have predicted that Vietnamese companies will soon enjoy greater
opportunities to develop their exports, as some bilateral and multilateral
trade agreements should be finalised this year. The world economy is also
looking a little brighter than a year ago, they noted.
However,
some local firms said that they were not optimistic about the city's
10-per-cent target.
This
year remains a difficult time for domestic exporters, in spite of some
positive predictions, said Do Ha
The
city is unlikely to achieve this goal without a breakthrough in the solutions
required to boost exports, he said.
Yet,
the city should review the current policies and then draw up incentives for
export enterprises, he suggested.
At
present, the city has still to provide export firms with real incentives,
which has resulted in many firms wanting to shift their production bases to
different localities where attractive preferential policies could be enjoyed,
he explained.
The
city should actively remove some of the obstacles that enterprises have been
objecting to, such as VAT refunds, he said. He added that effective market
forecasts would also be important for enterprises seeking new export
opportunities.
Of
note, the Department of Industry and Trade's statistics show that the city's
export value dropped 10.3 per cent year-on-year to $2.4 billion in the first
month of this year.
This
was due to significant turnover reductions of key items, including crude oil
(down 35 per cent), coffee (down 26 per cent) and electronics and components
(down 12 per cent). Also faring worse than last year were footwear (down 8
per cent) and clothing (down 5 per cent).
E-commerce
trading fails to take off in local farming sector
Transactions
of farming products on electronic trading floors are not popular in
Experts
say local farming product trading floors built to promote e-commerce on the
domestic market have not developed as expected, reported the Dan Viet online
newspaper.
The
Can Gio Seafood Trading Centre was set up in 2002 to be the first farming
product trading floor in
Meanwhile,
the Binh Phuoc Cashew Trading Floor, launched with investments from
Sacombank, has also been closed. Enterprises must import raw cashew for
processing and do not have enough raw cashew in stock for transactions on
trading floors.
The
other commodity to lose its trading floor is coffee, which has been traded on
the Buon Ma Thuot Coffee Trading Floor since 2008. The trading floor was
developed with a total investment of VND100 billion (US$4.76 million) but has
not developed as expected.
The
trading floor has attracted 10,000 tonnes of coffee per year, too low a
volume and value, given the total output of one million tonnes of coffee each
year in the Southeast Asian region.
Economic
experts say electronic trading floors are popular in the world market as it
provides a modern, convenient and transparent trading method.
Economist
Nguyen Hoang My Phuong, who has studied the coffee trading policies of
However,
many local farming products cannot be traded on international trading floors
because
Moreover,
domestic companies must have deposits with trading floors to sell their
products there. They then have to transport goods to the warehouse and wait
for buyers, she explains. So, in this way, expenditure increases, and some
capital that matches the value of the products in stock is "buried"
at the warehouse. Domestic firms, however, cannot handle these expenses with their
small capital bases.
Tran
Duc Tung, head of the Viet Nam Pepper Association's administrative office,
says local enterprises are not successful on e-commerce trading floors
because they have a habit of buying and selling via intermediaries.
In
addition, state policies on e-commerce activities still do not ensure
security in financing, shipping and receipt of goods for farmers and
companies when they use the trading floor, Tung notes.
At
present, domestic pepper traders are successfully trading Vietnamese pepper
products. However, if they join the trading floors, they may not be as
successful because they do not have much experience with market forecasts and
may not be able to fix selling prices that are profitable, he adds.
Industrial
park to serve new purpose
The
Dong Nai Industrial Park No.1, the country's first industrial park, will be
turned into an urban trade and services area.
Located
in southern
Responding
to a petition of the Dong Nai People's Committee, Prime Minister Nguyen Tan
Dung approved the proposal to change the purpose of the industrial park.
Dung
assigned the Dong Nai People's Committee to work with ministries and industry
to implement the plan.
Last
Saturday, Deputy Prime Minister Hoang Trung Hai presided over a meeting with
officials of ministries and sectors to discuss issues related to the project.
The plan includes relocation of companies, zoning and construction areas in
the 24 industrial park, and investments.
The
total capital for building infrastructure in the industrial park to 2022 is
estimated to be more than VND10 trillion (US$476 million).
The
Ministry of Planning and Investment will collect opinions from ministries and
sectors to ensure feasible solutions and implementation of the project.
Set up
in 1963, the industrial park has 104 companies with over 26,000 employees.
The
industrial park's infrastructure has not been maintained properly and has
deteriorated. Most factories in the industrial park have outdated
technologies and limited investment capital.
The
Trade
target with
Bilateral
trade between
Bilateral
trade rose to $5.24 billion in 2013 from a modest $1.54 billion in 2007. Of
the sum, Vietnamese exports contributed $2.35 billion, up 13 times, and its
imports produced $2.88 billion, a two-fold increase.
Viet
Nam and India have accelerated trade ties through a series of measures, with a
focus on perfecting the legal framework for trade and investment
co-operation; fostering exchanges for trade and investment promotions; and
organising trade fairs, exhibitions and business forums in each country to
help businesses find new partners and investment opportunities.
The
two countries are considering a plan to grant long-term visas to their
businesspeople. They have also encouraged investment in the private sector
and offered all possible systems of support to open representative offices
and branches in each country.
VCBS
expects 15% stock market growth
The
stock market of
With
macro-economic stability, the stock market would be a more attractive
investment channel compared to other channels, such as gold, real estate and
bank savings, VCBS director Vu Quang Dong told Dau Tu Chung Khoan (Securities
Investment).
VCBS
expects the economy to grow at a faster rate than 2013 and the GDP to rise to
5.6-5.7 per cent, while the inflation rate will be about 5.5-5.6 per cent as
the government and the State Bank of
In addition,
VCBS forecast that the interest rate will be kept stable at 7-8.5 per cent
for the mobilising rate and 7-10.5 per cent for the lending rate in the short
term and 11-13 per cent in the long term.
Stocks
of export companies in sectors that include garments and textiles, footwear,
electronic components and software products as well as infrastructure
construction companies (building materials and logistics) will be in the
spotlight in the stock market this year.
This
will be due to expectations of an improvement in capital inflow, together
with the economic recovery and the government's effort to boost
infrastructure during the year.
VCBS
also added that foreign capital will flow strongly into the stock market this
year, and the first quarter will witness strong buying of blue chip funds.
The
farming and processing of tra fish in the Mekong Delta region will encounter
more difficulties when a new
The US
Senate on February 4 gave final congressional approval to a five-year farm
bill.
Under
the provision, the inspection of catfish, including Vietnamese tra and basa
fish (scientifically named Pangasius) , will be moved out of the remit of the
Food and Drug Administration and into the Department of Agriculture.
Accordingly,
Vietnamese catfish exported to the
While
the move poses challenges, it will also jolt the industry into restructuring
for more sustainable production, Dung said.
Pham
Anh Tuan, Deputy Director General of the Directorate of Fisheries under the
Ministry of Agriculture and Rural Development, said
According
to the Vietnam Association of Seafood Exporters and Producers (VASEP), the
country exported 380 million USD worth of tra fish to the
Dong
Nai promises to lend a helping hand to foreign SMEs
The
People’s Committee of the southern
The
project is expected to provide businesses, which usually struggle
communicating with local authorities because of the language barrier, with
information and legal knowledge, thus assisting them in fulfilling procedures
for obtaining an investment certificate.
It
will also support them in implementing other relevant procedures, such as
making a seal, registering a tax code and submitting an environmental impact
assessment report.
According
to Director of the provincial Department of Planning and Investment, Bo Ngoc
Thu, the province gives priority to the high technology and the support
industry, environmentally friendly projects, agricultural and infrastructure
development and the services sector.
In
January this year, the province granted investment certificates to eight new
projects costing over 71 million USD. The projects were from the
Mai
Van Nhon, Deputy Head of the management board of industrial parks (IPs) in
Dong Nai, said that the Long Duc and Sonadezi Long Thanh IPs have invested in
building production workshops to rent out to businesses. These are
particularly suitable for small and medium-sized enterprises as they can set
up operations very quickly.
Aquatic export
value rises in January
The
country shipped abroad nearly 400,000 tonnes of aquatic products, a yearly
increase of 0.8 percent, according to the Ministry of Agriculture and Rural
Development.
The
The
country’s aquatic products are shipped to over 150 markets worldwide. Besides
traditional partners such as the
Nghi Son oil
refinery helps boost economic development
2013
marked an important milestone for the central
The
complex in the Nghi Son Economic Zone in Tinh Gia district is one of
Once
commissioned in 2017 as scheduled, the NSRP is expected to refine 200,000
barrels of crude oil a day, equivalent to 10 million tonnes of oil a year.
It
will be the second in
The
complex has affirmed the province’s determination to make a breakthrough in
the industrial and socio-economic development.
It has
also reflected the locality’s endeavours to improve the investment
environment, which was evidenced by the amount of more than 4.7 billion USD
in cooperation agreements signed at a forum to promote investment in the Nghi
Son Economic Zone (EZ) and its surrounding areas held in the province in
October. The forum coincided with the ground-breaking ceremony of the
complex.
With
the NSRP complex, Thanh Hoa province is expected to become a more attractive
destination for both domestic and foreign investors.-
The
central city of
The
company’s General Director Dang Minh Truong said the park will be constructed
following the design of world-famous architect Bill Bensley, with an
estimated investment of 4 trillion VND (188 million USD).
It
will cover a total area of 880,082 sq.m on the western bank of the
The
building will comprise four main areas: a game section, a culture section, a
multi-purpose zone for art performance activities, and a car park.
The
culture section will be divided into nine areas with miniature replicas of
typical architectural works, historical sites and scenes representing
In
2014, the Sun Group will continue implementing the second phase of the Hoa
Xuan ecological urban area, the project running along
The
cable car line in Ba Na Hill tourism site and the
This
year,
The
city has also planned to develop sustainable tourism in a bid to turn the
sector into its spearhead economic industry.-
Hai
Phong - a highlight in FDI attraction
The
northern port city of
In
2012, Hai Phong attracted 1.2 billion USD in FDI and was considered a
highlight in FDI attraction. The city currently has nearly 400 effective FDI
projects with total registered capital of over 8 billion USD.
Hai
Phong Economic Zone Authority Head Pham Thuyen said that in recent years, the
quality and size of FDI projects markedly improved. Previously, the projects'
scale was only 2-4 million USD and the number of projects with capital of 20
million USD upward was small.
Hai
Phong has now attracted large projects from
FDI
attraction in the city has seen a breakthrough since 2011 when it attracted
910 million USD in FDI. The city attracted 1.2 billion USD through 29
projects and became one of the biggest localities nationwide in terms of FDI
attraction in 2012.
Hai
Phong has more advantages than other localities to attract foreign
investment. The city currently has 12 industrial zones, a notable of which is
Nomura. Since 1994, Hai Phong has pioneered in building industrial parks with
modern, consistent infrastructure. Nomura has become one of the most
successful industrial zones in
Hai
Phong is a favorable gateway to land, railway and waterway routes and ranks
first among provinces and cities nationwide in terms of seaport services.
That is why most of big investors in Hai Phong produce goods for export.
In
recent years, administrative procedures in the city have improved to increase
investor’s comfort. Hai Phong has taken the initiative in catching the wave
of investment from many countries.
Hai
Phong targets to attract about 1.2 billion USD in FDI in 2014. To achieve
this target the city has many solutions including speeding up the
construction of infrastructure projects and creating a breakthrough in the
construction of essential infrastructure in the Dinh Vu-Cat Hai Economic
Zone.-
Orders
placed with garment factories in the first days of the Lunar New Year herald
a bonanza for the garment sector, boosted by breakthroughs created by the
Trans-Pacific Partnership (TPP) Agreement, reported radio The Voice of
Vietnam (VOV).
Members
of the National Textile and Garment Group (Vinatex) customarily place their
orders in the first three months and this year’s rise bodes well for 2014
being an opportunistic year for
Over
recent days, the Duc Giang Garment Company has been busily packing products
for export to the EU, the
Many
other garment businesses are also sanguine about the prospects for exports
this year. They are actively searching for quality domestic materials to
reduce dependence on imports, mindful of the need that domestic suppliers
ensure delivery of goods on schedule.
This
contributes to improving the competitiveness and is attracting more orders
from well-known trademarks in
The
Dong Tien Garment Joint Stock Company is not only focusing on keeping its
traditional clients but also pursuing expansion into new markets with
specialty designed products, such as clothes for skiing, elastic coat and
underwear.
Particularly,
the TNG Trade and Investment Joint Stock Company has invested heavily in
promoting its brand and building a domestic distribution network with clothes
for teenagers. The TNG brand is now gaining popularity across the country and
is favoured by many young people.
Garment
10 Company Director General Nguyen Thi Thanh Huyen says since early this
year, the company has received a large number of orders for exports so it is
stepping up production of high quality shirts in Thieu Do district, Thanh Hoa
province and 12 others in Quang Binh province, as well as one production line
to make luxury jackets in Thai Binh province.
Nguyen
Ngoc Lan, Vice General Director of the Nha Be Garment Corporation, says like
many other Vinatex members, Nha Be orders are up this year and it is hopeful
exports will be better than the previous year.
A
leading Vinatex member, the corporation has continually poured investment in
production to meet the increasing demand of customers. European clients are
shifting their original design manufacturer (ODM) products to
To
seize the opportunity, Nha Be has built a sample unit to make ODM products
for European clients only. It has drawn up a carefully thought out marketing
plan and if it is successful, Nha Be and other garment makers stand to gain a
competitive edge.
Vinatex
General Director Tran Quang Nghi says the group has gradually reduced its
dependency on imported materials for exports and promoted self-designed
products to increase the added value of the products.
It has
focused on quality improvements, helping the group move to a higher position
in the global garment chain and businesses make full use of capital assets
available.
Vinatex
has obtained both targets of restructuring – market and investment
efficiency, Nghi says.
Quality
growth is a key task of Vinatex this year, he says, adding the group will
keep export growth of 12 percent and raise ODM products from 10 percent in
2013 to 12-14 percent this year.
The
group will expand its “lean” manufacturing method which has been successfully
applied in some businesses to reduce inventory and raise competitiveness,
Nghi says.
With
57 projects afoot, 2014 is expected to be a boom year in investment for
Vinatex. Most projects centre on developing material areas in an effort to
raise the ratio of local contents in products – a necessary step towards
grasping the opportunity brought about by TPP and breaking into the global
market.
Source:
VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
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Thứ Ba, 11 tháng 2, 2014
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