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BUSINESS IN BRIEF 13/2
SCIC
to promote divestment at SOEs
The
State Capital Investment Corporation (SCIC) will boost the process of
divestment of non-core businesses at several State-owned enterprises (SOEs)
this year.
This
follows Decision 2344/QC-TTg of the Prime Minister, announced on December 2,
2013, which highlights the approval of the restructuring plan of the SCIC by
2015.
During
this year, the corporation will have to consider buying financial instruments
issued by SOEs if they fail to divest capital held at various banks.
It's
good news for the State-owned groups and corporations, which were finding it
difficult to find partners for stake transfers, especially in the real
estate, financial and securities sectors.
In
some circumstances, a loss may occur during the divestment process.
Therefore, enterprises are afraid of taking responsibility for a loss and
only conduct divestment when the capital market is strong.
To
help SOEs speed up non-core divestment, a new resolution is expected to be
approved by the Government in the first quarter of 2014 to allow SOEs to
divest capital below the par value after setting up reserve funds for the
investments as required.
The
SCIC, formed under Decision No 151/2005/QD-TTg dated June 20, 2005, is
responsible for managing and investing State capital in various sectors,
including financial services, energy, manufacturing, and telecommunications.
Transportation, consumer products and healthcare sectors are also under its
purview.
In
November 1, 2013, the Government issued Decree 151/2013/ND-CP, which enabled
a number of new mechanisms consistent with significant functions of SCIC,
including the sale of State-owned capital.
McDonald’s
president surveys
McDonald’s
president and CEO Don Thompson said that he made a fact-finding trip to
Speaking
to the press on Monday, Thompson said that McDonald’s has entered the nation
to expand its network but it is manager groups of McDonald’s Vietnam and the
Asia-Pacific, Middle East and Africa (APMEA) that will decide how many
eateries will be opened.
To
open a new restaurant, McDonald’s will look into supply chain, organize
manpower training and carry out construction, he said.
Thompson
said that surveying is important before entering a new market. A unit of the
group conducted this step, the franchisee in
McDonald’s
focuses on making customers feel satisfied rather than increasing the number
of its restaurants, he said.
McDonald’s
has entered
Up
until now, McDonald’s has tapped over 120 markets worldwide.
Vingroup
selects new CEO
Vingroup
has selected Ms Duong Thi Mai Hoa born in 1969 as the new Chief Executive
Officer (CEO) to succeed outgoing Ms Le Thi Thu Thuy.
Prior
to joining Vingroup in 2013, Ms Hoa served as the general director of Vietnam
International Commercial Joint Stock Bank and Vietnam Maritime Commercial
Joint Stock Bank (Maritime Bank). She also served a stint as the financial
director of Oracle
Ms
Thuy has officially been named as the incoming President of Executive Board
and General Director of VinE-com -an established company in the field of
e-commerce.
Thua
Thien-Hue IZs generate jobs for nearly 16,000 workers
Industrial
zones (IZs) in central Thua Thien-Hue province employed 15,920 local workers
in 2013, reported Nguyen Huu Tan, Head of the provincial IZ management board.
While
meeting with representatives from businesses in Thua Thien Hue’s IZs on
February 11, Tan said they made up 45% of the province’s total industrial
value and contributed VND1,264.9 billion to the State budget annually.
Nguyen
Ngoc Thien, Secretary of the Thua Thien-Hue provincial Party Committee, spoke
highly of business operations in the IZs and pledged to create the best
possible conditions for businesses.
This
year, Thue Thien Hue’s IZs aim to attract VND2,900 billion, with a focus on
mineral exploring and processing, environment and infrastructure development.
Local
authorities and businesses plan to organize more vocational training for
local labourers to meet an increasing demand for skilled workers, especially
in foreign firms.
Bad
debt among the biggest monetary challenges of 2014
Economist
Bui Kien Thanh said the Vietnamese monetary system has seen encouraging
signals, but still sees three major obstacles in the way of a full market
recovery in 2014, including bad debt.
According
to the economist, the biggest challenge for the local monetary market in 2014
is bad debt. Last year the Vietnam Asset Management Company (VAMC) bought up
a large amount of bad debts and plans on continuing doing so in 2014.
However, the big task for the company this year will be how to deal with the
debt it has already bought. The majority of this debt comes from the real
estate sector, which has remained frozen in recent years. How to turn bad
debt into money is a challenge for VAMC.
Another
big problem on the list is interest rates, which are among factors affecting
business operations in the country. The preferential interest rates for
Vietnamese companies is around 10%, but the level for overseas and
foreign-invested firms in
The
third challenge listed was complicated cross-ownership in the banking system
leading to problems for banks in the control of cash flow. This, Thanh said,
compounds the problem of bad debt.
The
State Bank of
EVN
Meets Energy Demand
Vietnam
Electricity (EVN) has finally reached capacity to power the entire country
after 59 years of service, said the company director general Pham Le Thanh.
Maintenance
workers from HCMC Power Corporation at Thi Nghe transmission station in HCMC
(Photo: SGGP)
The
national grid’s capacity is 20,400 megawatts while the country’s consumption
is only 18,600 megawatts, said Nguyen Anh Vu, head of the public relations of
Ho Chi Minh City Power Corporation.
EVN
will continue to supplement more supply sources to increase the total’s
capacity by 4,466 megawatts.
The
group is building two 500-kilovolt transmission lines stretching from Pleiku
to My Phuoc to Cau Bong and from Vinh Tan to Song May to Tan Dinh.
EVN
will be able to meet energy demands in southern regions and
The
group is still launching campaigns for reduced energy consumption even though
they met demands.
Dong
Nai attracts nearly 178 million USD in FDI
Industrial
parks in Dong Nai province, one of the industrial hub in southern
The
figure made up more than 98 percent of the total FDI poured into the locality
in January last year and 19.8 percent of the target set for 2014, said Mai
Van Nhon, deputy head of the Dong Nai Industrial Park Management Unit.
In the
month, domestic investors also injected 60.1 billion VND (2.8 million USD)
into the province, he said.
According
to Nhon, 18 projects in the local industrial parks raised their existing
capital by 106.1 million USD last month.
During
the month, the management unit granted licences to eight new foreign-invested
projects with a total registered capital of 71.7 million USD and one
domestically-invested project worth 60.1 billion VND.
The
parks are expected to attract 900 million USD this year, with 400 million USD
coming from new projects and will prioritise large-scale projects or those
using cutting-edge technologies, the official said.-
Ha
Noi hosts international fishing exhibition
Over
100 domestic and foreign shipbuilders and maritime groups will take part in
an international exhibition in Ha Noi between February 26 and 28.
This
was revealed by Vu Anh Tuan, general director of the Shipbuilding Industry
Corporation, at a press conference in Ha Noi yesterday, while announcing the
seventh international exhibition on shipbuilding, marine technology and
transportation (VietShip 2014).
VietShip
2014, the largest meet of its kind on shipbuilding, marine tech and
transportation in
Official
reports show no Criffel cheese recalled in Vietnam
Official
reports state that none of the Scottish cheese named Criffel, which has
caused an international health scare due to deadly bacteria, has been
discovered in
The
statement was made by the Vietnam Ministry of Health Food Safety Department
on February 11.
After
learning of the bacterial contamination of Criffel unpasteurized cheese
produced by the Loch Arthur Creamery in
The
Department will continue to monitor the situation and update consumers with
timely information.
Soc
Trang approves windpower project
The
People's Committee of Soc Trang Province in the Mekong Delta has licensed the
Vinh Chau windpower project financed by German corporation EAB New Energy
GmbH and
Soc
Trang, which has huge potential for windpower sources, has approved four
windpower projects with total capacity of around 300MW.
Deputy
PM calls for more investment from French group
Deputy
Prime Minister Nguyen Xuan Phuc on February 11 met Jean-Luc Brial, Director
for Asia and building and water works of French civil engineering Vinci
Group, calling on the firm to continue investing in
At the
meeting, Deputy PM Phuc spoke highly of the performance by Vinci Group and
Vinci Construction Grands Projects in particular in
He
lauded the projects in transport infrastructure, urban irrigation, waste
water treatment and environmental protection that the group has implemented
in
For his
part, Jean-Luc Brial said in the future, the group will compete for contracts
of a number of transport infrastructure and urban water supply and drainage
projects in
Vinci
has recently signed a memorandum of understanding with Vietnamese partners on
the transfer of advanced technology in the field, enabling it to expand its
investment in
As
part of a lineage of 100-year-old companies whose names are associated with
impressive achievements worldwide, Vinci Construction Grands Projects designs
and builds major engineering structures like tunnels, bridges, dams, road and
rail infrastructures as well as buildings.
Dong
Nai conference promotes exports
The
southern
The
province will focus especially on the
Dong
Nai will organise trade promotion activities, hold conferences to implement
signed free trade agreements and anticipate the advantages that will be
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 surpassed US$10 billion in
2013, accounting for 10 per cent of the national figure. Its main exports
include footwear, garments and textiles and products made of wood.
Southern
firms focalise retail network expansion
The
business circle in
As of
the end of 2013, Vissan Co. Ltd. has over 100 showrooms and hundreds of
outlets and provided fresh meat and vegetables for nearly 1,000 schools,
organisations and hotels across the country.
Thegioididong.com,
a mobile device retailer, is also present in all 63 provinces and cities.
From 38 shops in 2009, this retailer has increased the number to 220.
Meanwhile,
the Saigon Union of Trading Cooperatives (Saigon Co.op) places importance on
developing various forms of retail to satisfy market demand.
At
present, it owns 69 Co.opmart supermarkets, 72 Co.opFood convenience stores,
170 Co.op stores, along with Co.opXtra hypermarkets and
In
2014, Thegioididong.com will upgrade and expand its retail network along with
piloting outlets in rural areas, whilst Vissan will put into operation a
factory in
From
now to 2020, Saigon Co.op will conduct its business in a sustainable and
flexible way, its chairman of the board of directors Nguyen Ngoc Hoa said.
Vice
Chairwoman of the HCM City People’s Committee Nguyen Thi Hong said over the
past decade, the city has zoned land and provided finance for developing
wholesale and retail systems. It has also proactively cooperated with other
provinces to extend the retail network, helping fuel the sector’s development
in
She
added that diversifying business and retail forms is practical and in line
with the current consumption trend. The expansion of retail facilities is
also a necessary factor for the growth of the domestic market and the
national economy as a whole.
Hai
Phong seeks investment in added value industries
The
northern port city of
Over
the past three years, Hai Phong has been considered a highlight in FDI
attraction.
In
2012, 1.2 billion USD of FDI was poured into the city, ranking it the second
among localities nationwide in attracting FDI. The figure doubled last year
to 2.4 billion USD, naming the city in the top three localities in this
field.
The
city now has over 360 active FDI projects, with a total registered capital of
8.27 billion USD.
Hai
Phong has lured large projects from
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.
To
lure more FDI, 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.
The
city will also promote the application of technologies and a quality
management system in accordance with the ISO 9001:2008 standard to swiftly
solve difficulties facing enterprises in implementing administrative
procedures.
In
addition, it has also paid attention to developing a high-quality workforce
and improving the skills of technical workers to meet the requirements of
large projects.-
Vietnam
boosts transport ties with Singapore, EU
Transport
Minister Dinh La Thang and his Singaporean counterpart Lui Tuck Yew have
agreed to strengthen bilateral cooperation in the transport sector.
During
their working session in
The
Singaporean side agreed to continue assisting
Both
host and guest noted with pleasure the development of air transport between
the two nations, with 1.7 million of passengers recorded in 2013, up 1.7
percent against the previous year.
They
expressed their belief that the figure will rise this year following the
recovery of the world economy, contributing to fostering the economic,
investment, trade, culture and tourism cooperation between
Thang
suggested
The
Vietnamese minister is visiting
On the
sidelines of the events, Minister Thang and Vice President of European
Commission Siim Kallas discussed the possibility of transport cooperation
between ASEAN and the EU in general, and Vietnam and the EU in particular.
According
to Thang, the EU, the biggest exporter to ASEAN and the second largest trade
partner of the bloc with around 200 billion USD made in annual two-way trade
and ASEAN with a 600-million population boast potential of trade promotion
and aviation partnership.
On the
On the
basis of the
The
country is negotiating and completing procedures to sign air pacts with other
EU members like
Kallas,
for his part, said
The
national flag carrier Vietnam Airlines is running four direct flights between
It is
effectively operating nearly 60 Airbus planes. Additional 14 A350 planes will
be put into use between 2015 and 2019.
On
February 11, Thang attended the signing of a contract to buy and charter 100
planes worth 9.1 billion USD between VietJetAir and Airbus. He later toured
some stalls at the
Intensive
development model should be implemented in stages
The
country should learn from growth model changes from extensive to intensive
development and focus on stages, said General Director of the Industrial
Policy and Research Institute Duong Dinh Giam.
Focusing
on specific stages will help avoid stretching investments, he said.
Giam
noted that it was important to adjust the model of growth to incorporate
suitable industrial space planning, promote foreign investments giving
priority to strategic investors, improve the quality of development
strategies and plans, and uphold the combined strength of the economic
system.
Despite
being one of the sectors to have received priority standing in policies,
support industries have still failed to meet their targets.
Although
last year's targets of branch development with high growth rates of more than
15 per cent in the long term in all three sectors – state-owned, private, and
foreign invested – were achieved, added value remains limited and, in some
cases, is even reducing, Giam added.
He was
also concerned about poor investment efficiency and the country's low
technological level as well as the pivotal role economic regions have played.
Unreasonable
resource allocations and planning, weak co-operation and co-ordination, and
unsatisfactory development in support industries were of equal concern, he
said.
He
also stated that reliance on imported materials for production and
unsatisfactory strategy planning and implementation were also a problem.
Giam
recommended that industrial development strategy in the next few months
should take advantage of domestic resources and markets and efficiently
participate in the regional and international industrial production network.
It
will also be necessary to develop industries and products for high-value
exports and for advanced technology, besides creating a platform for
agricultural and rural modernisation.
Priorities
of industrial development in the next few months should include amending the
industrial development model, promoting priority industries, and planning
reasonable industrial spaces, Giam remarked.
He
noted that to amend the industrial development model, it is necessary to
follow a step by step approach by moving from a quantity-based to a quality
and efficiency-based development model.
These
changes, he added, should be combined with an improvement in the efficiency
of the mobilisation of resources and bank branches' competitiveness.
Growth
must be parallel with improvements in technology and productivity. The ratio
of products with high added value and the quality of the industrial labour
force must improve.
Regarding
priority industries, efficient exploitation of limited resources is also a
requirement, Giam stated.
The
country should have a variety of offerings to create momentum for the
development of priority industries, including processing and manufacturing
industries, electronics and telecommunications industries, and new and
renewable energy sectors.
Deputy
Minister of Industry and Trade Le Duong Quang noted that despite government
guidance, the existing mechanism and legislative policies have not been
integrated.
Therefore,
he said, the ministry will have to seek government approval for the country's
industrial development strategy, taking into account the guidance and
priorities that govern the existing mechanisms and policy improvements as
well as the investment and business environment in key industries.
President
calls for support industry acceleration
President
Truong Tan Sang has underlined the need for support industry development if
President
Sang asked for greater efforts during a February 11 working session with
leaders of the Hanoi Southern Support Industrial Park (HANSSHIP) project.
Municipal
leaders and project managers told the State leader the HANSSHIP project is
part of the national industrial development master plan and the capital
city’s 2020 socio-economic development strategy (with a vision towards 2030).
The
project has so far completed the necessary infrastructure and land clearance
ahead of factory constructions from major companies such as TAKAKO, NIDEK,
Hanel, and Thang Long.
The
project aims to attract 3,000 domestic and foreign businesses, generating
more than 300,000 jobs and serving as a model for support industry parks.
Municipal
leaders and government representatives proposed adjusting loan, interest
rate, and tax policies to improve the competitiveness of Vietnamese
industrial parks and entice more major foreign investors.
President
Sang acknowledged these proposals and asked businesses to focus on developing
sufficient infrastructure, hiring and training human resources, and reforming
practices in preparation for 2015’s ASEAN and
Ha
The
Provincial
People’s Committee Chairman Mai Tien Dung unveiled the goal at a February 11
meeting between Ha
The
province pledged to improve its investment environment, reform administrative
procedures, and support labour recruitment and contract negotiation.
Dung
said FDI enterprises promote economic development, contribute to state
budgets, raise productivity, and advance the industrial sector. Recent
provincial policies have earmarked infrastructure upgrades and bureaucratic
reforms in the interests of open and transparent environment favoured by
foreign investors.
The
province’s 20 new FDI projects in 2013 were capitalised at US$118 million.
Its cumulative FDI project total stands at 79, with registered capital
exceeding US$700 million.
Australia
sends first buffalo shipment to Vietnam
The
Australian live animal export industry has embarked on a new endeavour with
the
NT
Chief Minister Adam Giles said a growing middle class and an appetite for
high-quality meat is driving rising consumer demand.
He
described the livestock industry as a key element in the government’s plan to
develop the NT into the “food bowl of
NT
Minister for Primary Industries Willem Westra Van Holthe noted the territory
is currently the only Australian jurisdiction exporting buffalo.
The
first shipment of 222 farmed buffalo will be joined by another 600 next week
and 1,500 more when the wet season eases in April.
Australian
officials will travel to
South-East
Asia Livestock Services Commercial Manager Dean Ryan said buffalo exports to
115
countries register for VietShip 2014
As
many as 115 foreign and domestic shipbuilders and maritime groups have
registered to attend the 7th International Exhibition of Shipbuilding, Marine
Technology, and Transportation (VietShip 2014).
A
February 11 press briefing in
Participants
from
VietShip
2014, which takes place during a period of difficulty for Vietnam’s
shipbuilding and maritime industry, is expected to foster investment and
trade exchanges between Vietnamese and foreign businesses.
The
exhibition will also feature a shipbuilding industry seminar and contract and
cooperation agreement signing ceremonies.
The
event’s best products and services will be honoured with an awards
presentation.
Bauxite
plant's products praised
Deputy
Prime Minister Hoang Trung Hai visited the Tan Rai Bauxite Complex in the
Central Highlands Province of Lam Dong on February 11, where he applauded the
quality of the plant's first products.
The
plant opened last October and has since produced 260,000 tonnes of
high-quality aluminum. More than 160,000 tonnes were exported to European and
Asian markets while more than 855 tonnes were sold in the domestic market for
US$320–330 per tonne.
Under
the bauxite project in the Central Highlands region, which started in 2007,
the Tan Rai plant was built in Lam Dong province and the Nhan Co plant was
built in
The
Deputy Prime Minister asked Vinacomin and the project's Management Board to
ensure safety. He stressed the need to prevent red mud from polluting the
surrounding environment and build an extra reservoir for red mud in case of
emergency.
Vinacom
has signed a long-term contract with Japanese company Marubeni to provide
300,000 tonnes of aluminum per year and another contract with a Chinese
company to provide 150,000 tonnes per year.
The
Lam Dong bauxite complex is expected to produce 540,000 tonnes of aluminum
and 800,000 tonnes of hydrate in 2014.
Source: VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
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Thứ Tư, 12 tháng 2, 2014
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