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BUSINESS IN BRIEF 12/2
VND
to be added to Big Mac Index
When
the first McDonald’s outlet makes debut in HCMC this Saturday, The Economist,
a world’s leading economic news magazine, will certainly keep close watch
over the event as it is the publisher of the Big Mac Index.
The
Economist publishes the index as an informal way to measure the purchasing
power parity (PPP) between two currencies. Therefore, in an article about Big
Mac Index updates early this year, the newspaper said it would add
The
index is named after a hamburger sold at McDonald’s stores, the Big Mac.
The
exchange rate between two different currencies is the value of one currency
in terms of the other currency. But the real purchasing power of the two
currencies may not reflect this value.
For
instance, one U.S. dollar can now be exchanged for VND21,000. A good bread in
PPP
enables people to estimate what the exchange rate between two currencies
would have to be so that a sample basket of goods and services should cost
the same in both currencies.
In the
Big Mac Index, The Economist makes things simple by replacing the basket in
question with a single Big Mac burger. By collecting data about Big Mac
prices in different countries, the newspaper can calculate the Big Mac Index
of each country in order to indicate the currency of that country is
overvalued or undervalued. For example, a Big Mac in
Capital
and currency markets worldwide have been hit by a gradual winding down of
quantitative easing (QE) which is designed to keep interest rates at historic
lows to stimulate investment and consumption.
The
Fed announcement that it would reduce bond buying by US$10 billion to US$65
billion a month immediately sent a lot of currencies into a tailspin.
The
Big Mac Index allows The Economist to estimate what currency would have to
strongly adjust in the coming time.
Certainly,
no countries would use this index to adjust their exchange rates as there
always exists a difference in the purchasing power of different currencies.
For example, having a haircut in
The
Big Mac Index, anyway, can help
Is
Big Mac in town cheap or expensive?
As the
opening in HCMC Saturday of the first McDonald’s store in Vietnam has been
hyped by the local media, many news outlets have been trying to compare
prices of the U.S. fast-food giant’s products here and elsewhere in the world
in reference to the Big Mac Index published by The Economist.
For a
particular dish, some papers said its price is higher than in other countries
but others emphasized it is lower. There is nothing unusual about this
because they made comparisons based on different base prices.
Humuch?,
a web site at www.humuch.com that compares goods prices worldwide, uses a
single unit for price comparison, which is a Big Mac meal comprising a Big
Mac burger, a medium French Fries and a medium drink. McDonald’s Da Kao
outlet in HCMC charges this meal VND85,000 as shown in the menu and reported
by the local media. With the current exchange rate, it is equivalent to US$4.
A
similar Big Mac meal costs the most in Norway, US$13.13 at July 2013 price,
and the least in South Africa, US$2.66 at October 2012 price. For the Asian
region, the price is US$3.45 in
The
Big Mac which The Economist uses for price comparison sells for VND60,000 in
Vietnam, or US$2.84, while it costs US$2.74 in China, US$2.3 in Indonesia,
US$3.6 in Singapore, US$2.98 in the Philippines, US$2.92 in Thailand, US$2.32
in Hong Kong and US$2.23 in Malaysia.
Therefore,
the price of the Big Mac in
The
Economist is able to produce the Big Mac Index since a McDonold’s burger
reflects material cost, labor cost, and location rental in countries where it
is present, but it does not in
Now
the question is whether McDonald’s would increase purchases of domestic
materials in the coming time or remain reliant on imports. Nguyen Huy Thinh,
managing director of McDonald’s
However,
if domestic consumer prices inched up around 10% this year, the cost of local
materials would rise correspondingly. But if import prices remained
unchanged, McDonald’s would see no incentive for using local ingredients.
Then a possible strategy the fast food firm might take is to keep its prices
unchanged to gain an edge over rivals using local materials for their bread
at higher cost.
This
exactly points out the problem with the country’s exchange rate policy, of
which The Economist has no mention in calculating the Big Mac Index in
New
Lotte Mart to go up in Vung Tau
Lotte
Ba
Ria-Vung Tau Province has handed over an investment certificate to Lotte
Like
other projects in HCMC and elsewhere in the country, the Vung Tau project
will comprise a supermarket, a goods processing and retail section,
restaurants, and entertainment facilities like children’s playground,
billiards and bowling areas, gaming section, fitness center, and cinema.
The
company is expected to begin work on the project in the first quarter this
year and put it into operation next year.
An
authority of the province said Big C, another major retailer, was also
exploring the possibility of entering the province’s retail market.
Saigon
Co.op, the owner of the Co.opMart store chain, recently opened a second store
costing over VND80 billion and covering 6,000 square meters in Vung Tau,
taking to three the number of its stores in the province. The other is
located in
Vung
Tau has emerged as an important market for retailers. Thinh Vuong has
inaugurated
The
population of Ba Ria-Vung Tau is around one million, less than that of
neighboring provinces like Dong Nai and Binh Duong. However, retailers have
said they are investing in the province’s future as current demand there is
not high.
The
People’s Committee in the central city of
Those
companies have been asked to remove workers and property from mines excluding
facilities for safety and environment protection. The mines were closed
immediately to restore the environment.
The
city also tasked Hoa Vang District authorities to supervise the mines and
prevent any organization or individual from illegally exploiting minerals
there.
This
event occurred as a response to an article from Saigon Giai Phong Newspaper
about companies stealing soil from hills and rice fields for sale in Da Nang
City and the neighboring province of Quang Nam.
Private
sector needs greater leeway to pull economy out of woes
This
is what the World Bank and leading economists suggested when reached by the
Daily.
Victoria
Kwakwa, country director of the World Bank (WB) for
The
efficiency of the economy is particularly of great importance to regaining
high growth but the state economic sector is still mired in serious troubles,
she noted.
According
to the WB,
Kwakwa
said that with such an equitization process, the country would not be able to
fulfill its commitment to letting 500 state enterprises go public by 2015.
The WB
has seen signs of the private sector losing confidence, which is evident in
the fall of private sector investments from 15% of GDP in 2007-10 to 11.5%
last year.
The
global development lender cited a Provincial Competitiveness Index (PCI)
report by the Vietnam Chamber of Commerce and Industry as showing that
enterprises are scaling down investment activity or maintaining the status
quo. In addition, the Purchasing Managers’ Index in much of 2013 was below
50, a clear indication of manufacturing contraction.
Household
spending grew a mere 5.1% in 2009-12, well below the average of 8.9% in the
previous four years, according to the WB. The country, the WB said, is
experiencing the longest period of low growth since it embarked on economic
reform policy in the mid-1980s.
But,
Kwakwa said, the country still has a window of opportunity to pull itself out
of this difficult situation. Despite all those problems, she said with strong
belief that the nation would be able to shine as it did in the past.
Sharing
the WB’s view, Vietnamese economists said the state economic sector should
lower its share in the economy.
Economist
Le Xuan Nghia said though there are a few 100% state-owned banks left, they
hold 60% banking market share. This percentage should be reduced, he
proposed.
Professor
Nguyen Mai said all the decisions and other documents relating to state
enterprise restructuring, if stacked together, would be one meter high but
the restructuring process was extremely slow.
The
country saw a boom in the establishment of private enterprises in 2001-07 in
the advent of the Enterprise Law, which helped pull the economy out of the
financial crisis, he said, adding now private enterprises needed more room to
maneuver.
“We
have had no policy directing leading private companies towards investment in
technology, so they have been struggling to develop,” he said. “In addition,
there has been no policy creating opportunities for small and medium
enterprises to connect with bigger local firms and those in the foreign
direct investment sector. For fresh start-ups, no one cares about them.”
Expert
Pham Chi Lan said there had remained a great imbalance in the distribution of
resources and benefits and that most resources had been directed towards the
state economic sector. “My concern is that if private enterprises want to
grow big, they should have connections with those in the state sector;
otherwise, they would remain small and medium.”
Thailand’s
leading retailer says to open store in Vietnam
Central
Group,
The
Thai firm is well known for its Robinson store brand but it will adopt the
brand Robins here in the local market. The Robins Department Store in
Tos
Chirativat, chairman of the executive committee and CEO of Central Group,
said in a statement that the new development followed the group’s successful
launch of SuperSports, Crocs and New Balance stores in Vietnam through a
distribution network of its subsidiaries.
Brand
licensing to Vietnamese partners has highlighted the strong spending power of
the country’s 90 million population, with more than 60% of people belonging
to a workforce with high purchasing power.
“This
makes
Robinson
Department Store Plc will be overseeing the operation of the forthcoming
department store in
Alan
Thomson, president of Robinson Department Store Public Company Ltd, said in
the statement that the Robins store would occupy 10,000 square meters of
retail space on the B1 level of
Robins
can boast one of the very best locations available in
After
the first store in
Low
demand pushes down goods prices
Traditional
wet markets and supermarkets in HCMC resumed operations on Wednesday with
prices returning to normal due to low consumption.
Prior
to this year’s Lunar New Year holiday, or Tet, goods prices did not increase
as much as in previous years and there were some products seeing lower prices
as consumers tightened spending.
Prices
of vegetables at Tan Thuan and Tan My markets in District 7 have dropped
20-30% compared to those on the first days of the Lunar New Year. However,
they are still around 20% higher than on normal days such as lettuce priced
at VND35,000-40,000 per kilogram and cucumber at VND20,000.
According
to Huong, a vegetable vendor at Tan Thuan market, selling prices at wholesale
markets are 15-20% higher than normal.
A
similar situation is seen with cattle and poultry meat as their retail prices
have declined on low consumption. The respective prices of one kilogram of
chicken, grade-one beef, pork rib and pork belly are VND115,000-125,000,
VND300,000, VND150,000 and VND100,000.
Even
with fruits whose prices were normally pushed up in the holiday due to high
demand, the prices have now declined.
However,
fish is the only product whose prices remain high, 30-50% higher than on
normal days, due to limited supply but high demand. At a small market on
Fish
at most supermarkets and convenience stores are displayed in small volume. A
staff member at Satrafoods store on Street 41 in District 4 said the store
did not sell much fish as its prices remained high.
These
are unlike previous years when food prices stayed 40-70% higher than normal
until the tenth day of the lunar calendar.
Vendors
attribute the situation to low demand and price competition from supermarkets
and convenience stores.
While
markets have seen few consumers over the past days, supermarkets and
convenience stores are quite busy.
The
fact that prices began to return to normal on the sixth day of the lunar
calendar is unusual this holiday. During the holiday, prices of most
commodities are quite stable with some lower than on normal days.
For
instance, after beverage and beer prices were pushed up by VND10,000-20,000
per carton by traders one month before Tet and then stabilized by
authorities, the prices have dropped, with a carton of Heineken beer selling
for VND352,000-360,000, 333 beer for VND200,000-205,000, Tiger beer for
VND293,000-295,000 and Coca-Cola for VND175,000.
Besides,
prices of essential food products at markets were stable and did not rise
until two days before the holiday.
Meanwhile,
supermarkets and convenience store offered discounts on some food products,
attracting big numbers of customers. The pork stall at a Co.op Food store on
More
consumers have chosen modern supermarkets before and after Tet. Quyen, a
seller of dried food at Tan Chanh Hiep market in District 12, said she had
few customers during the holiday. “There were few customers last holiday and
even fewer this holiday,” she said.
Thaco’s
engine plant project behind schedule
The
Chu Lai-Truong Hai engine plant invested by Truong Hai Auto Joint Stock
Company (Thaco) will start production later than scheduled for this year.
Located
in Chu Lai Open Economic Zone in
However,
the Government’s new rules on production exhaust gases, auto assembly and
imports have obstructed development of the project. The Korean partner has
not yet transferred technology to Thaco.
According
to a reliable source, during discussions in
Therefore,
Hyundai suggested canceling the contract. The group will consider revising
the production technology transfer contract in 2016.
The
source told the Daily that the project with a large capacity would see part
of output consumed in
Recently,
The
new engine manufacturing project is subject to the Government’s incentives in
terms of investment credit, stimulus, tax and research and development
policies.
Vietnam
Airlines, despite its higher-than-expected profit last year, has forecast its
domestic market share might contract by a further 6.4 percentage points to
55% this year.
The
airline, which last year earned profit of VND140 billion, has set a target of
increasing the figure by 239.6% to VND335 billion though its market share has
shrunk steadily over the years.
Last
year it suffered a local air transport market loss of 7.3 percentage points.
The airline’s total market share for domestic and international services this
year is forecast to edge down from 50.8% last year to 47.1% this year.
The
air transport market grew 21.5% last year, especially in the low-cost
domestic segment which is project to gain stronger growth this year.
For
transport of passengers from abroad to
According
to the Ministry of Transport, Vietnam Airlines chairman Pham Viet Thanh has
forecast a tough business year in 2014.
While
the fleets of budget airlines in
The
arrival of major Middle East carriers like Emirates, Etihad and Qatar that
are aggressively expanding their worldwide flight networks has also piled
pressure on their rival airlines including Vietnam Airlines.
Meanwhile,
the competition from private carriers is growing stronger. VietJetAir saw its
market share soaring to 26.1% late last year and the rise is seen continuing
as it will expand its fleet from 10 planes to 17 or 20 this year.
But
Vietnam Airlines will take a modest approach by adding one more aircraft this
year to raise its fleet to around 83.
January
steel trade deficit falls
The
nation’s steel trade deficit stood at around US$340 million in January, down
by 18% against the same period of 2012, according to the General Statistics
Office.
Last
month, steel exports hit 150,000 tons worth US$110 million, down nearly 35%
year-on-year, while imports reached 650,000 tons with a total value of US$450
million.
Dinh
Huy Tam, a steel specialist, said that
Last
month, the local steel industry turned out around 196,000 tons, a 22%
year-on-year decrease, given the traditional Lunar New Year holiday, or Tet.
Many
enterprises decided to restart business on the ninth day of the lunar new
year this Saturday. However, they would maintain production at only 60-70%
capacity during the first months of this year due to low market demands.
Do Duy
Thai, general director of Viet Steel Corporation, told the Daily that steel
consumption would be sluggish in the first half of 2014.
The
enterprise will maintain production at its factories at around 70% capacity.
Viet Steel Corporation has a combined capacity of 1.5 million tons a year.
According
to the Vietnam Steel Association (VSA), the real estate market is still in
hibernation as the Government’s home credit package has reported a slow
disbursement rate.
Other
sectors such as shipbuilding, auto making and mechanical engineering have yet
to recover. So, this year’s steel consumption is expected to rise by only
3-5% against 2013.
Last
year, the nation’s steel consumption was 11.8 million tons.
VSA
said that the nation’s designed manufacturing capacity of construction steel
has reached 11.3 million tons a year but enterprises are turning out seven
million tons a year. Construction steel consumption was nearly five million
tons last year, down by around 500,000 tons against 2012.
Local
enterprises are expected to see tougher competition this year as supply has
far outpaced demand and consumption is low.
Expensive
cars sell well despite market blues
Even
though the domestic economy remained in distress and the local auto market
reported sales growth of less than 20% last year, luxury car brands stole the
limelight due to spectacular sales growth.
According
to Audi
Unlike
other auto brands in
Quattro-equipped
cars accounted for around 70% of Audi’s sales in
Last
year was also the fifth year in a row Audi
Tran
Tan Trung, general director of Audi’s official dealership in
Audi
Similarly,
Mercedes-Benz posted sharp sales growth last year, with 1,725 units sold, a
year-on-year rise of 65%, three times higher than the market’s average.
With
such a result,
Another
major luxury car brand is BMW. According to Euro Auto, the official importer
and distributor of BMW cars in the country, with a sales pickup of just 20%,
the total number of BMW cars sold locally amounted to nearly 1,000 units last
year. Last year’s growth indicated a steady rise in demand for luxury cars in
general and BMW vehicles in particular.
Even
for expensive Lexus cars, demand is still running high. Lexus’s first
dealership in Vietnam opened to business a month ago but has since received
around 60 orders for LS 460L, GS 350, ES 350, RX 350 and LX 570 models priced
at between VND2.6 billion and VND5.7 billion per unit.
The
consumption of luxury cars in
Talking
about the Vietnamese luxury auto market, Toyota Vietnam general director
Yoshihisa Maruta described Vietnam as a potential market, saying that though
the nation’s GDP per capita was lower than Thailand’s and Indonesia’s, many
local customers are willing to own luxury cars.
Audi
will open Audi Danang this year after developing its networks in HCMC and
In
addition to opening a BMW dealership in Danang this year, Euro Auto will open
the first two dealerships for Mini cars in
The
capital contribution and distribution experiences of Sime Darby can make Euro
Auto more competitive in the luxury auto segment, according to experts.
Meanwhile,
Mercedes-Benz rolled out the first locally assembled S-Class car and
announced the retail price of S 400 L at VND3.48 billion per unit early this
year. This automaker will market more cars this year.
Lexus
does not focus on increasing its sales but offering customers with excellent
products, and convenient sale systems and services.
Besides
the first dealership in HCMC that meets global Lexus standards,
Rising
Tet travels to Vung Tau spur expressway toll revenues
The
suspension of HCMC-Vung Tau hydrofoil services following a hydrofoil fire
that happened on January 22 has led road traffic between the two cities to
surge, thus benefiting a newly opened 20km stretch of HCMC-Long Thanh-Dau
Giay Expressway.
The
new freeway section that connects HCMC and neighboring
Nguyen
Viet Tan, director of Vietnam Expressway Services Engineering Joint Stock
Company, told the Daily that traffic on the expressway during the Lunar New
Year holiday was double that on normal days, rising from 8,000 to over 16,000
vehicles a day. In particular, the number of tourist vehicles and private
cars surged sharply on the fourth and fifth days of the lunar calendar, he
added.
The
suspension of hydrofoil services prior to the start of the weeklong holiday
created an opportunity for passenger transport firms to increase the
frequencies of their bus services between HCMC and Vung Tau.
A
representative of Phuong Trang, a major transportation company based in HCMC,
said the firm increased the number of daily bus services on the route from 24
to 40 during the holiday to meet strong travel demand.
According
to Tat Thanh Cang, director of the HCMC Department of Transport, around
12,000 passengers traveled between the two cities by road during the height
of the holiday.
The
travel time by bus now is almost equivalent to that by hydrofoil, around two
hours.
Formerly,
hydrofoil would be an alternative transport means for passengers who did not
want to get caught in heavy traffic jams on the busy
Ba
Ria-Vung Tau boosts tourism in 2014
The
southern
To
meet this target, the province will invest in infrastructure upgrade, improve
service quality, and diversify tourism products. It will develop tours of
historical and cultural relics, including Con Dao (Poulo Condo) island and
traditional craft villages, as attractive tourist destinations.
The
locality will also increase promotions in
Ba
Ria-Vung Tau will promote cultural and tourism festivals, including the
annually international kite flying festival, and inaugurate the first phase
of MGM Grand Ho Tram Beach –
Despite
economic difficulty in 2013, the province received nearly 12.5 million
visitors and earned VND2.9 trillion from tourism services, representing
year-on-year increases of 13% and 18.7% respectively.
During
the recent Lunar New Year festival, it served 365,000 holiday-makers and
gained a 21% rise in revenue to VND216 billion.
The
Mekong Delta city of
The
plan aims to have 2,000-2,500 households growing vegetables in areas covering
a total land mass of 750ha.
The
households will be provided with farming techniques according to Vietnamese
Good Agriculture Practice standards (VietGAP), as well as post-harvest
preservation techniques.
Under
the plan, the city will also develop 500ha for fruit cultivation that will
also serve as eco-tourism sites.
By
2020, the city will also have areas specialising in growing flowers and
ornamental trees in Ninh Kieu, Binh Thuy, Cai Rang and Phong Dien districts.
Under
the plan, the city will also set up specialised farms for breeding fish,
including 24ha for producing tra fish fries and 120ha for breeding tra fish.
The
plan is expected to cost more than 833 billion VND (39.7 million USD). Of the
figure, 53.6 billion VND will be from the city's budget and the rest, from
investors.
The
plan will develop infrastructure, and build and upgrade irrigation systems in
areas of specialised agriculture.
It is
hoped that the plan will encourage enterprises to enter into contracts with
farmers, in which the farmers produce specifically for the enterprises,
thereby decreasing their risk and improving quality and value.
It
will also provide a chance for farmers to develop their tourism service
skills when tourists visit the fruit orchards.
Nguyen
Hong Dieu, Director of the Can Tho Agriculture Extension Centre, said the
centre will work with relevant agencies to implement the plan and local
agriculture officials will provide training on advanced farming techniques
for local farmers.
The
city now has several specialised agricultural fields, including rice,
vegetable and fruits. Of these, rice cultivation in the region currently
stands at 235,370ha, up 16,780ha against 2008.
The
city has developed many large-scale rice fields. This has helped strengthen
cooperation among farmers, enterprises, scientists and the Government. The
new model for large-scale rice fields has improved income for farmers.-
Construction
begins on new Vinatex factory
The
Vietnam National Garment and Textile Group (Vinatex) kick-started
construction work on a new factory inside the Thanh Loc Industrial Zone in
the southern
The
project is part of an effort by the group to reach 5 billion USD in export
turnover by 2016.
Covering
an area of 36,500 sq.m, the factory will be built at a cost of 150 billion
VND (7.05 million USD).
Once
completed, it is expected to create jobs for 2,225 labourers, generate 200
billion VND (9.4 billion USD) in turnover and contribute 2.3 billion VND
(108,100 USD) to the State budget annually.
In
2013, Vinatex maintained its dominant position in the domestic textile and
garment industry, as it contributed 2.9 billion USD to the sector’s export
revenue, posting a 12 percent growth compared with 2012.
This
year, it will focus on producing and exporting high quality textile and
garment products and reducing usage of imported materials.-
Dragon
fruit export heads towards new market
Domestic
exporters are striving to diversify markets for their dragon fruit, with a
view to reducing their dependence on traditional importers from
Thanks
to domestic farmers’ efforts to improve product quality, Vietnamese dragon
fruit has managed to penetrate into demanding markets such as the EU,
Over
the recent past, dragon fruit exports to the EU, in addition to other
traditional markets, including
Specifically,
the dragon fruit has satisfied strict quality requirements of the aforesaid
importers and has become the first Vietnamese fruit receiving export code
granted by the
In
addition, the Plant Protection Department under the Ministry of Agriculture
and Rural Development has recently granted a certification for dragon fruit
of the Hong An Agricultural Products Import-Export Co., Ltd that satisfies
requirements for export to the RoK.
According
to Director of the Southern Fruit Research Institute Nguyen Minh Chau, around
54 percent of
In
lowering the dependence on the main importers, efforts have been exerted by
domestic dragon fruit exporters to seek and diversify new markets, namely
According
to a representative of the E.K Prima Vietnam Co., Ltd, a subsidiary of LuLu
Group International which is one of the largest corporations in the
However,
several countries such as the
Therefore,
domestic experts suggested that localities specialising in dragon fruit
should soon surmount shortcomings related to processing, especially
preservation and packaging, as well as fostering trade promotion activities.
Vietnam
has around 25,000 ha of dragon fruit mostly grown in the central and southern
provinces of Binh Thuan, Tien Giang and Long An. Due to high economic value
brought to growers, the dragon fruit plantations in the localities have
continuously increased over the recent past.-
Binh
Duong sees rise in industrial production, exports in January
The
southern
In the
first month of this year, the province recorded a 12.1 percent year-on-year
rise in industrial production value at 16.56 trillion VND (773.76 million
USD), while its exports hit 1.3 billion USD, up 14.3 percent over the same
period last year. The foreign-invested sector contributed 1.1 billion USD, up
11.4 percent.
Notably,
the locality’s total revenue from the retail and service sectors in January
reached 10.1 trillion VND (477 million USD), an increase of 10.6 percent over
the previous month and 26 percent year on year.
After
a long Lunar New Year holiday, workers in all industrial parks have resumed
their normal working schedule. Before the holiday, more than 20,000 workers
were supported to return their own hometown with free travel tickets and New
Year gifts valued at 46 billion VND.-
Nghe
An targets 560m USD in investment
The
central
To
realise the target, the province will do more to improve its investment
climate and provincial competitiveness index, accelerate administrative
reforms and complete infrastructure facilities while more heavily promoting
its potential, Vice Chairman of the Nghe An People’s Committee Huynh Thanh
Dien explained.
In its
investment attraction strategy for 2014, Nghe An is seeking to win investment
in high technology, new material production, health care, pharmaceuticals,
information technology, beverages, industrial zone infrastructure, education
and vocational training, Dien said.
Nghe
An is currently home to 627 valid projects, including 588 domestically
invested ones worth nearly 110 trillion VND and 39 foreign-funded ones worth
1.49 billion USD.
The
projects are all operating smoothly, Dien said. They have generated jobs for
local people and increased budged revenues, while helping attract funds for
other projects in the locality, he added.-
Retail
sales rise 13% in January
The
nation's total revenue from retail sales and services topped VND273.49
trillion (US$13 billion) in January, a year-on-year rise of 13 per cent, the
General Statistics Office (GSO) reported.
Statistics
have shown that last year, the country's retail industry recorded a yearly
increase of 12.6 per cent at VND2,618 trillion (US$124.66 billion).— VNA/VNS
Photo Thanh Vu
Vu
Manh Ha, a senior expert at the GSO Trade Department, described it as an
encouraging result compared with the average growth rate of 12 per cent in
the latter half of 2013.
He
also attributed the first month's retail sales growth to the rapidly rising
demand for commodities during the Lunar New Year holiday.
The
trade sector, which accounted for nearly 80 per cent of the total revenues,
rose 10.8 per cent over the same period last year, while the services sector
experienced a significant rise of 24.2 per cent.
Statistics
have shown that last year, the country's retail industry recorded a yearly
increase of 12.6 per cent at VND2,618 trillion (US$124.66 billion).
The
revenue growth, however, was the lowest over the past four years, compared
with 24.5 per cent, 14.2 per cent and 16 per cent in 2010, 2011 and 2012
respectively.
During
the year, the sector with foreign investments posted the highest revenue rise
of 33 per cent, following by the private sector with 15.3 per cent. Notably,
the State-owned sector recorded an 8.6 per cent slump in the total retail
sales.
Competitive
power market reviewed
Deputy
PM Hoang Trung Hai yesterday chaired a meeting to review the operation of the
competitive power market in 2013 and develop wholesale power market in the
pilot period of 2015-16.
As of
late 2013, 102 power plants joined the market with total output of 26,901 MW.
Up to
48 electricity plants with total capacity of 11,947 MW (or 44.4% of the
national output) offered prices in the market.
A
large number of experts said that after one year of operation, the
competitive power market contributed to raising transparency and equality in
mobilizing electricity resources; increasing competitive efficiency and
cutting costs.
The
competitive power market operated constantly without any interruption even
during difficult time such as the blackout occurred in May, 2013 when a crane
accident cut power to one-third of
Deputy
PM Hoang Trung Hai instructed the Ministry of Industry and Trade (MoIT) and
related agencies to resolve obstacles including mechanisms and legal
regulations to speed up the development of competitive power market.
Earlier,
the MoIT and the Electricity of Viet Nam had submitted a roadmap to pilot the
Overall Project on competitive wholesale power market from the end of 2015 to
2016. Since 2017, the competitive wholesale power market would operate fully.
Source:
VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
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Thứ Ba, 11 tháng 2, 2014
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