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BUSINESS
IN BRIEF 4/3
Businesses
focus on improving job skills
Companies in
According to the
Robert Walters' annual Global Salary 2014, companies face recruitment
pressure because of a small pool of highly qualified staff.
"As companies
continue to compete for top Vietnamese talent, the shortage of candidates and
lack of skills in niche areas pose recruitment challenges," Jon
Whitehead, country manager of Robert Walters Viet Nam, said at a conference
early this week in
"Employers are
likely to focus on training and development programmes for existing teams in
order to nurture talent internally," he said. "Attracting overseas
Vietnamese back home is another viable option as such candidates are valued
for their international exposure and expanded portfolio.".
The survey points
out that 3.5 out of 5 respondents are looking to switch jobs this year, with
top reasons being salary increases and lack of career progression in current
job.
According to
Whitehead, the outlook is fairly positive this year with multinationals
converting representative offices into wholly-owned businesses and
subsidiaries.
"Companies
will have to be more flexible in their hiring requirements and consider
candidates with broadly matching skill sets," he said.
Figures from the
survey suggest that candidates who switched jobs last year could command an
average 10-20 per cent salary increment. And this trend is likely to continue
in 2014.
The entrance of new
Fast-Moving Consumer Goods (FMCG) businesses in
Hiring for
procurement specialists is likely to increase due to growth within industries
such as garment manufacturing, electronics, electronic equipment and FMCG
businesses.
In addition,
internationally-recognised certifications such as ACCA, CIMA and CPA are
gaining value in
Online
auctions help improve transparency
Online auctions
provide an effective way of improving the transparency of buying and selling
and preventing corruption, according to Deputy Minister of Planning and
Investment Dao Quang Thu.
At a conference in
Ha Noi last week, participants discussed online auctions and Thu expressed
his belief that with the new Law on Tendering taking effect on July 1, the
carrying out of auctions will be further expanded.
Online auctions
have become popular in many countries, as they help save from 3 to 20 per
cent of auction package values, according to reports.
In
Quang
The central
The centre, which
covers 39ha, will include a reception area and tourism information service
for cruise ship passengers disembarking at the port.
Cua Dai beach, 5km
from Hoi An's old quarter, is a favourite location for tourists visiting the
UNESCO-recognised city.
The central
province welcomed 1.65 million foreign tourists in 2013.
The seventh Viet
Nam International Furniture and Fine Arts Exports Fair 2014 will be held at
the Sai Gon Exhibition and Convention Centre in District 7 from March 11 to
14.
The expo, VIFA EXPO
2014, will feature 630 booths representing 129 local and international
enterprises from 11 countries and territories, including
Despite tough
economic times, the number of participating companies proves there is strong
demand for new customers among firms involved in the industry, according to
the organisers.
With many
advertising campaigns launched within and outside the country, the fair hopes
to attract many new potential customers.
In addition, as
part of the ASEAN Furniture Show Circuit organised by the ASEAN Furniture
Industry Council, the expo will benefit from the council's advertising
campaigns directed at importers in the US, Japan, and Europe.
The organisers have
received more than 900 registrations from furniture importers in 70 countries
and territories. Most of these will seek new partners and suppliers at the
fair.
Co-organised by the
HCM City Department of Industry and Trade, the Handicraft and Wood Industry
Association of HCM City (Hawa) and Hawa Corporation, the fair also includes
two seminars, one on the latest safety regulations and standards to wood
products exports to the US, and the other on the domestic furniture design
industry.
Last year,
State-funded
projects back local IT products
The Ministry of
Information and Telecommunications has released a new circular, which decrees
that any IT projects funded by the state budget, must buy local products
first.
The circular
applies to all state-offices – political organisations, social organisations
and armed forces - and says that other economic sectors should prioritise
local IT products over imported ones.
To be considered a
local product, it must be produced in
The circular
specifies what kind of products may be used, such as hardware, electronics,
software, digital content and IT services.
All offices and
departments that use the state budget for IT investment must follow the
circular. Special approval must be given if non-local products are used due
to a specific technical requirement.
The circular will
come into effect on April 8.
HCM City
sees start of year bump in FDI
Foreign direct
investment (FDI) into
Speaking at a
recent meeting at the HCM City's People's Committee office, Thai Van Re,
Director of HCM City Department of Planning and Investment, said in the first
two months of the year, the city authority has granted 46 investment
licences, up by 12.2% compared with the same period last year, with a total
registered capital of US$164.3 million, up by 267.2% on last year.
In addition, the
city authority has approved plans for capital expansion of US$52.6 million for
operational projects.
Re said the city's
economy remained stable and is showing positive signs of recovery.
In February the
city attained total retail sales and service revenues of VND43.4 trillion
(nearly US$2.6 billion), an increase of 3.8% over the same period last year,
although this was a 27.2% drop from January 2014, according to the report
released by the HCM City People's Committee.
The city's total
retail sales and service revenues in the first month of the year amounted to
VND103 trillion (nearly US$4.9 billion), up by 11.8% compared with the same
period last year.
The city's tourism
and hospitality industry and transport services also scored growth. The city
welcomed some 396,000 foreign visitors in January and 778,000 foreign guests
in the first two months, which is an 11% increase over the same period last
year.
The early opening
of shopping malls after Tet and the market stabilisation programmes in
February have helped the city to attain low CPI rate of 0.24% compared with
January 2014.
The city has shown
growth in other areas too - it reported an export turnover of US$1.8 billion
in February, which is up 14.7% and the city's agricultural production scored
a 6.3% growth rate over the same period last year.
Also in February,
2,741 new businesses were established in the city, with total registered
capital of over VND14.36 trillion (nearly $680 million).
After the Lunar New
Year Festival (Tet), enterprises in the city didn't suffer labour shortages
like in previous years, because businesses, (in particular companies that
employ large numbers of labourers), provided staff with financial help
returning home for Tet.
In February, there
were 25.000 employment opportunities in the city, including 12,300 new jobs,
up by 15.6% over January.
To improve further
still on the socio-economic growth, the city's People's Committee has asked
district authorities, departments and agencies to focus on efforts to curb
inflation, stabilise the macro-economy, and ensure social welfare for its
residents.
The city authority
asked agencies to further develop market stabilisation programmes to create
favourable conditions for enterprises to boost production, and in doing so
promote their brands and in the long-term, raise living standards.
The HCM City
Department of Information and Communication and the HCM City Computer
Association (HCA) on Friday signed a co-operation agreement, intended to
boost the development of the city's information and communication technology
sector.
Under the
agreement, the two sides will co-operate on research projects into ICT's
human resources, as well as gather opinions on how to develop the sector's
human resources between now and 2020.
Research into how
prepared various state agencies and businesses are for IT integration, will
be done this year.
They will hold
annual events such as seminar on
Chu Tien Dung,
HCA's chairman, said the association will also begin building a database for
the industry, to help investors draw out better business strategies.
Dung said
enterprises should focus more on developing applications based on new
technology like cloud computing, big data and mobility, to catch up with
global technology trends.
According to ICT
firms, there is a strong demand for software products based on new
technologies like cloud computing and mobility. However, a shortage of
professional human resources, has prevented domestic firms from meeting big
export orders, they said.
They called for
closer co-operation between the relevant associations, agencies and
businesses, to help develop human resources in the ICT industry.
On the same day,
HCA also signed a co-operation agreement with the Viet Nam Electronics
Industries Association, the Viet Nam Information Security Association, the
HCM City Semi-Conductor Industry Association and the HCM City Young Business
People Association, with the aim of sharing information and supporting one
another's future development.
Speeding up
SOE equitisation
The perfection of
legal institutions and mechanisms is one of the prerequisite tasks in order
to speed up the equitisation of State-owed enterprises (SOEs).
According to Pham
Viet Muon, deputy head of the Steering Committee for Business Renovation and
Development, the Government’s Decree No. 99/2012/ND-CP has clarified the
rights, responsibilities and obligations of the Government, ministries,
agencies, local governments and member councils of State-owned economic
groups and corporations.
Under the decree,
relevant ministries are responsible for exercising the rights,
responsibilities and obligations of the State as the owner of SOEs,
particularly State-owned groups and corporations, which includes inspecting
and assessing the efficiency of business operations.
Reports show that
the implementation of State ownership management has been improved following
the issue of the decree, towards ending State agencies’ administrative
interference into SOEs’ operation. The management method of State capital in
SOEs is also gradually shifted from administrative to business forms.
Between 2011 and
2013, the country equitised 180 SOEs, bringing the number of wholly
State-owned businesses down to 949. Of these, 19 were State-owned
corporations and 21 had State capital of over VND100 billion.
Among the equitised
were the Bank for Foreign Trade of Vietnam (Vietcombank), the Bank for
Investment and Development of Vietnam (BIDV), Petrolimex, Vietnam Steel
Corporation and Viglacera.
According to the
steering committee, after equitisation, the businesses have enjoyed
considerable growth and performed their tasks more effectively. The
appearance of joint stock companies has increased the economy’s
competitiveness and accelerated the restructuring of the stock market.
The equitised
corporations have also reorganised business and production activities and
reshuffled member companies while merging those which overlap.
Implementing
financial restructuring, a number of businesses have increased their charter
capital and withdrawn capital from non-core areas.
Despite numerous
difficulties in 2013, 18 State-owned groups and corporations recorded total
revenues of VND1,184 trillion (US$56.38 billion) and contributed VND191
trillion (US$9.1 billion) to the State budget.
Under the 2011-2015
SOEs restructuring plan, the country will have to complete the equitisation
of 531 SOEs by 2015.
To have the
remaining 432 businesses equitised between now and 2015, the Ministry of
Planning and Investment stressed the need for a determination and unity from
central to local levels to ensure the progress of SOEs restructuring.
Dong Nai
adopts mechanical engineering strategy
Southern Dong Nai
province has approved a mechanical engineering development plan for 2020 with
the aim of attracting more than US$2.37 billion in investment capital by
2025.
Provincial Department
of Industry and Trade Director Le Van Danh said his province considers
mechanical engineering a key industry for socio-economic development and will
priotize developing competitive industries, such as producing metal
structure, boilers, electric equipment, motive power machines and
agricultural machines.
It will focus on
improving support industries to increase the localization rate of machinery
and equipment and actively engaging in the global chain of value.
Under the plan,
solutions and incentive policies will be worked out to attract investment
capital into the engineering industry by 2025.
Manufacture has
recently experienced rapid development, since the end of 2011 Dong Nai has
managed to lure 32 projects in the field.
By June 10, 2013,
provincial industrial zones attracted 270 foreign invested projects, of which
the engineering industry with US$3.237 billion accounted for 22.2% of total
investment capital. Meanwhile, domestic businesses have invested a staggering
VND5.682 trillion in 49 engineering projects.
The industrial
production of the engineering industry tripled from 2005 and made up more
than 20% of the province’s total industrial value with exports fetching
US$1.2 billion in 2013.
Surge in
Despite a modest
value,
In 2013, exports
rose by 1.06% to US$26.66 million and imports fell by 37.8% to US$1.15
million.
Major exports to
Venezuela are machinery, equipment and tools (US$8.65 million), footwear
(US$2.8 million), garment (US$2.3 million) and rubber (US$1.6 million) while
major imports include materials for garment and footwear, rubber, machinery,
equipment and tools.Both countries boast great potential for boosting
bilateral cooperation in energy, oil and gas, agriculture, industry and
consumer goods production,(electric equipment, electronics, garments and
footwear), health care, science and technology.
A green economy forum
for sustainable development was held in
Discussions at the
forum helped promote the Government’s policies for the development of a green
economy and raise public awareness of the effective and eco-friendly use of
natural resources.
Deputy Minister of
Natural Resources and Environment Nguyen Linh Ngoc said a green economy is
one that results in improved human well-being and social equity, while
significantly reducing environmental risks and ecological scarcities.
According to the
United Nations Environment Programme, “In its simplest expression, a green
economy can be thought of as one which is low carbon, resource efficient and
socially inclusive.”
Last September, the
Government adopted a national strategy on green growth, demonstrating
The aim of the
strategy is to improve the economic development model to dramatically reduce
green house gas emissions and form an effective economic structure.
Ngoc said that in
order to catch up with the global development trend, it is vital for
To do so, he said
Most participants
at the forum agreed that a green economy will bring long-term benefits to
They suggested
They highlighted the
significance of building and developing sustainable residential and
industrial zones as part of
As a developing
country,
As part of the
forum, a televised exchange among businesses was held to offer a chance for
managers, experts, scientists and businessmen to seek measures to boost green
economic development and contribute to the sustainable development of the
country.
Vietnamese
female businesswomen honoured
100 outstanding
Vietnamese businesswomen were honoured at a March 1 ceremony for their
excellent entrepreneurship and great contributions to promoting
social-economic development.
They were presented
with the “Yellow Rose” Cup for their accomplishment to sustainable economic
development during the 2011 to 2013 period
At the ceremony,
Vice National Assembly (NA) Chairwoman Nguyen Thi Kim Ngan congratulated the
awardees for their achievements. In light of the current economic
difficulties, businesses have made great effort to stand firm, generate more
jobs for workers and maintain high growth.
She urged honoured
entrepreneurs to improve their management skill to restructure their
businesses, and grasp opportunities for rapid and sustainable growth as
positive contributions to stronger national development and deeper
international integration.
Exports to
Exports to
Major exported
products included oil products, electronics, telephone handsets, seafood
(mainly shrimp), machinery, equipment, tools, cashew nuts, furniture, timber
products and footwear.
The top exported
products were crude oil with a value of US$150.14 million (up 55.4%,
accounting for more than 50% of the total), followed by telephone handsets
and components at US$26.78 million (down 6.2%) and seafood with US$19.58
million (up 31.5%).
Products with high
export growth included garments (up 47.7%), vegetables and fruits (50.6%),
chemical products (22.9%), wood and timber products (15.9%) and iron and
steel (95.2%).
Despite huge
potential, exports to
A free trade
agreement between
Wood and
timber exports nudge up in February
Wood and timber
product exports rose 8.4% to US$796 million in the first two months of the
year, reports the Ministry of Agriculture and Rural Development (MARD).
The MARD reports
the
Major exported
products to the
Cumulative wood and
timber exports in 2013 reached more than US$5.37 billion, a year-on-year
increase of 15.2%.
The Vietnam Timber
and Forest Product Association (VIFORES) says that
Local
exporters eye French markets
The Ministry of
Industry and Trade has set a target of US$2.45 billion in export to
According to the
ministry’s Import-Export Department, French markets remain fertile lands for
Vietnamese products, which account for a mere two percent of the markets,
excluding footwear, which claims nearly 10 percent.
In addition,
The French Foreign
Trade Ministry has singled out
Statistics from the
Vietnam Trade Office in
In 2013,
Vietnamese goods,
especially household articles, garments and footwear, enjoy increasing
popularity in
This year,
In order to make
inroads into
They are also
advised to avoid using such free email services as yahoo, hotmail and gmail
in business transactions.
Seafood
exports surge 23.5% in two months
Seafood export
earnings hit US$335 million in February, bringing its two-month export value
to US$919 million, a year on year rise of 23.5%.
The Ministry of
Agriculture and Rural Development (MARD) reports the
In January alone,
the US imported US$155.6 million worth of Vietnamese seafood, a staggering
increase of 89% compared to the same period last year.
Exports to
Its two chief
suppliers are
Delta sees
significant tra fish slump
The tra fish
farming area in the Cuu Long (
In Can Tho City,
for instance, the area is down 8.57 per cent to 480ha; in
The Directorate of
Fisheries blamed it on the falling prices of tra, and high cost of fish feed
and medicines, and the deterioration in the quality of tra breed stock – and
thus the quality of fish farmed.
The price of the
fish has fallen to VND22,500-23,000 per kilogramme while the production cost
is VND23,000-24,000, the Vinh Long Department of Agriculture and Rural
Development said.
Many farmers in Can
Tho have switched to raising other kinds of fish like snakehead and featherback.
The tra fish
farming area has plunged to 4,679ha now from 5,556ha last year. More than 90
per cent of the country's tra output is exported.
PM asks
central bank to boost credit growth
Prime Minister
Nguyen Tan Dung has directed the State Bank of Viet Nam (SBV) to facilitate
credit growth, quickly inject capital into the economy and improve
enterprises' access to capital.
The PM was speaking
at the monthly meeting of cabinet, which he chaired yesterday.
At the meeting, SBV
Governor Nguyen Van Binh revealed that a total of US$4 billion had been added
to
According to Binh,
this was due to a stable foreign exchange rate and the fact that the state
bank released VND150 trillion ($7.1 billion) in January to ensure liquidity.
He added that
Also, at the
meeting, PM Dung urged all ministries, sectors and localities to speed up the
restructuring of State-owned enterprises.
He said it was
crucial to focus on stepping up business privatisation, while strengthening
management and supervision over the State-owned sector.
He also asked for
quicker disbursement in capital for construction sourced by bonds, the budget
and official development assistance (ODA) while ensuring construction
quality.
According to a
report by the Ministry of Planning and Investment, in the first two months of
2014, the country recorded a trade surplus with surges in exports as well as
industrial and agricultural production values.
The disbursement of
ODA and FDI capital continues to rise compared to the same period last year,
while the service sector also reports good results. The report added that the
number of foreign tourists in
Regarding specific
measures to solve difficulties in business and production, many cabinet
members proposed that the Government prioritise credit for the agricultural
sector and rural areas, while intensifying investment promotion and expanding
the export market, especially for key agricultural products.
According to
Minister of Agriculture and Rural Development, Cao Duc Phat, ministries and
authorised agencies should work more closely with the ministry to seek and
broaden export markets for major agricultural products, especially rice.
He also called for
ministries, sectors and localities to strengthen co-ordination in the
inspection and quarantine of poultry, strictly supervising the cross-border
trade of livestock and fowls, and minimising the spread of epidemics across
borders, especially in the north.
Meanwhile, Deputy
Prime Ministers Nguyen Xuan Phuc and Hoang Trung Hai underscored the
necessary improvement of the domestic business environment and the effective
implementation of policies to attract foreign investment.
They asked the
Ministry of Planning and Investment to coordinate with other ministries to
find measures to assist new enterprises, while eradicating obstacles for BOT
(build-operate-transfer) projects.
Mentioning ways to
pick up business, Deputy Prime Minister Vu Van Ninh said the promotion of
production should be closely attached with the search for and forecast of
markets.
ACV plans
The Airports Corporation
of Viet Nam (ACV) has proposed expansion of the Tan Son Nhat international
airport in
Airports
Corporation executives met with the Minister of Transport, Dinh La Thang, on
Wednesday.
Last year, the
airport serviced nearly 20 million passengers, with a maximum of 550 flights
per day, Nguyen Nguyen Hung, chairman of ACV's board, told the minister.
More daily flights
are needed to service demand, Hung said.
He also noted that
the proposed
Tan Son Nhat has 40
aircraft parking spots, but it needs 60-65 spots in order to service 26
million passengers a year, according to Hung.
If the remaining
land and part of the land fund for national defence were used, an additional
21 spots could be built, according to ACV.
Under the proposed
plan, Tan Son Nhat's international terminal will be expanded to make space
for an additional 40 check-in desks, while the domestic terminal will be
extended by 3,900 sq metres.
Minister Thang said
the ACV should evaluate the entire plan and develop an overall strategy for
the airport.
Property
market shows positive signs
The local property
market has shown signs this year that property development will continue,
after a weak 2013, according to experts.
Early this week,
Novaland Group said it will invest VND3.7 trillion (US$176.2 million) to
purchase three building projects, including commercial and residential
properties in HCM City, as it expects the local property market to improve in
the next few months, reported the Thoi bao Kinh te Viet Nam (VnEconomy)
newspaper.
Phan Thanh Huy,
Novaland's general director, stated that the group decided to buy the three projects
as they fit into its development strategy.
The local property
market is entering a new development period and there is demand for property
products, Huy noted.
It is now a good
time for enterprises to complete projects for consumers who need them, he
remarked.
Many experts have
said this year that there is demand for apartments in urban areas, including
provinces and cities, in the local property market, so domestic investors are
expected to focus on selling and buying apartment projects.
Tran Duc Dien,
director of Maxland property's trading floor, told Nguoi Dong Hanh online
newspaper that the local property market has been recovering since the last
quarter of 2013.
Maxland's
transactions increased 35 per cent in the last quarter of 2013, as compared
to the same period in 2012, he said. Customers have chosen products that are
cheaper, while demand for luxury properties has begun to increase.
However, economic
expert Alan Phan told BizLive online newspaper that the property market this
year will not see significant changes because the average income of the
Vietnamese people remains low, while prices of properties, according to
investors, are not expected to decline further.
The market will
improve dramatically, however, when selling prices of properties approach the
people's average incomes, he remarked.
This year, the
property market will start to recover, he said, and reach its peak in
2015-16.
Nguyen Duy Minh,
general director of Hung Thinh Property Company, noted that this year
investors who have capital and a reputation will be able to complete their
unfinished property projects.
The South African
Ambassador to Viet Nam Kgomotso Ruth Magau expressed the desire during a
workshop held in the province on Thursday.
He pointed out that
Viet Nam is now one of South Africa's important economic partners and the
country is willing to create the best conditions for investors from Viet Nam.
First Secretary of
the Republic of South Africa MC Van Der Westhuizen said the wood industry was
a rising sector in his country, where raw materials were abundant.
Meanwhile, Binh
Dinh is one of Viet Nam's three largest wood-production localities,
generating US$2.3 billion in export turnover since 2010. The locality exports
its wooden products to 70 countries and territories across the world.
South Africa has
called for investments in farm produce processing, automotive and ancillary
industries, chemicals and plastics and electronics.
The country has
also sought investments in sectors such as IT and communications, metallurgy,
transportation and garments and textiles, as well as footwear and tourism.
In 2013, Viet Nam's
exports to South Africa reached $1.061 billion and the country imported $155
million worth of goods from the latter.
SBV to
issue new bad debt rules
The State Bank of
Viet Nam (SBV) will issue new regulations with some revisions of Circular 02 on
bad-debt classifications and risk provisions this April, for execution
beginning in June.
This was reported
by the online news portal VnExpress, which quoted a source from the central
bank.
Circular 02, which
regulates asset classifications, the levels and methods of risk provisioning
and the use of provisions to handle risks by credit institutions and branches
of foreign banks, was initially expected to come into effect on June 1, 2013,
in a bid for stricter regulations of bad debts.
After discussions, the
implementation of the circular was postponed by one year to June 1, 2014. The
delay was aimed at enabling businesses to access loans and boost credit
growth in the context of the continuing economic hardships and providing
credit institutions more time to prepare a roadmap and the necessary
conditions to fully apply the provisions of this circular.
However, concerns
still persist among banks about the implication of the debt classifications
under the regulations. Many banks say that the new regulations will lead to a
surge in bad debts and a collapse of big businesses, which could have a
potential domino effect on the financial system.
According to
industry insiders, the amended regulations of Circular 02, which will not
allow a bad debt to affect the classification of other loans given to the
same borrower by other banks, will provide some relief.
The circular
initially stipulated that a "substandard" to "bad" loan
with one bank would classify all other loans of that borrower into the same
group.
In Viet Nam, the
assessment of bank loans classifies them into five groups: current, special
mention, substandard, doubtful and bad.
The revision would
also postpone an initial requirement, wherein if central bank inspectors send
banks a warning note for any loan they find is violating regulations, it will
be classified as substandard. The violation can be a relatively minor one,
such as the lack of appropriate documents or a customers' vague purpose for
borrowing.
According to the
central bank, the bad debt ratio of the banking system was 3.63 per cent last
December. The government aims to keep the bad debt ratio at 3-4 per cent of
total lending by the end of 2015.
Viet Nam has one of
Asia's highest ratios of non-performing loans, which has troubled the economy
and led to a tightening of the credit policy required to boost consumer
spending and keep businesses afloat.
Southern
province revokes licences for 8 projects
The southern
coastal province of Ba Ria-Vung Tau has withdrawn the investment licences of
eight projects, worth US$71.5 million, since the start of this year.
Investors in these
projects had been urged to start construction, but they had failed to comply.
According to the
provincial Department of Planning and Investment, local authorities will hold
meetings with investors to enquire about the difficulties they are facing as
well as their expectations, so the authorities can take measures to support
them.
Based on the
inquiry, the province will cancel licences for projects that their investors
are unable to implement.
Ba Ria-Vung Tau
Province has granted investment licences to seven new local projects so far
this year. Its target is to give permission to 17 domestic projects to be
constructed in 2014.
In 2013, the
province attracted 13 foreign-invested projects worth $217 million and 29
others by local businesses with investments valued at VND14 trillion ($666.6
million).
VietJetAir
launches HCM City-Da Lat route
VietJet Air has
launched flights between HCM City and the Central Highlands resort town of Da
Lat in Lam Dong Province, its 22nd route so far.
The HCM City-Da Lat
air-link operates seven weekly round trips with a total of 2,520 seats.
To mark the
occasion, the airline will put on sale 30,000 discounted tickets on all its
routes for just VND22,000, or US$1, for three days from March 5. The offer
will apply for flights scheduled between March 22 and May 20, excluding
national holidays.
Dong Nai
attracts $331m in foreign investment
The southern
province of Dong Nai has attracted US$331 million in foreign direct
investment (FDI) to date this year.
This was stated by
the director of the provincial Department of Planning and Investment Bo Ngoc
Thu.
Of the total,
approximately $86 million came from nine newly licensed projects with the
remainder coming from nine others with increasing levels of capital, Thu
noted.
The latest
additions have increased the number of licensed projects in the locality to
roughly 1,400, worth a total of $24.7 billion.
Japan is now Dong
Nai's leading source of FDI, with 167 projects and investments valued at $3.1
billion.
Lotte Viet
Nam plans international push
To further expand
in Viet Nam in the future, the Republic of Korea's Lotte retail group plans
to develop Lotte Viet Nam into one of its leading branches abroad.
Visiting the
country and exploring investment opportunities in the northern province of Ha
Nam is part of the plan, said Director General of Lotte Centre Ha Noi Lee
Jong Kook during his working session with local authorities on Thursday.
The company's
representative praised the province's socio-economic progress in the past few
years and its policies to attract foreign investments.
He also emphasised
that the local transport system is an advantage, which will facilitate
operations by overseas investors, including Lotte. He added that Lotte hoped
to contribute to the area's development.
Ha Noi to
expand My Dinh Bus Station
The municipal
People's Committee has decided to invest over VND51 billion (US$2.43 milion)
this year in building and expanding My Dinh Bus Station in the west of Ha
Noi.
The total
investment would include VND25 billion ($1.19 billion) for construction,
while the rest of the funds would be spent on land clearance, rehabilitation
and other costs. Covering an area of 13,000 square metres, the station would
comprise services, technical infrastructure, parking area, water drainage,
trees and lighting system.
The Viet Nam
Transport Corporation is the project's investor.
Minister
orders review of property market
The Ministry of
Construction has asked localities nationwide to review real estate projects,
housing development projects and urban areas and send the report to the
ministry.
The report would be
submitted to Prime Minister Nguyen Tan Dung in March.
Statistics from the
State Bank of Viet Nam showed that by the end of last month, banks had
committed to give loans of more than VND2.3 trillion ($109.5 million) to
2,246 home buyers. Banks disbursed loans of VND1.06 trillion ($51 million) to
2,218 borrowers, an increase of VND200 billion over last January.
The ministry said
the production and business value at its enterprises was estimated at VND10.4
trillion ($495.24 million), accounting for 7.4 per cent of the whole year's
target and a reduction of 9.5 per cent over the same period last year. The
reduction was due to the long Tet holiday.
Vinamilk
shuts down its real estate company
The Viet Nam Dairy
Product Joint-Stock Company (Vinamilk) has announced the closure of its real
estate and investment company.
This was disclosed
in a letter sent to the State Securities Commission and the HCM City Stock
Exchange on Monday by Vinamilk's general director Mai Kieu Lien.
Lien said the
VND160 billion (US$7.6million) real estate company International Real Estate
Investment One-Member Co Ltd was established as a Vinamilk subsidiary for
real estate businesses such as those involved in the brokerage and leasing of
real estate and warehouses in HCM City, in 2006.
Property
developer has new foreign partners
Affordable property
developer Nam Long, which is listed at HOSE as NLG, on Thursday handed over
share certificates to three new foreign strategic partners, who acquired 15.5
million shares from its recent private placement.
The three
international investment institutions, World Bank's affiliate International
Finance Corporation (IFC), Bridger Capital and Probus Asia, who respectively
acquired 7.5 million, six million and two million shares at the price of
VND18,000 (US$0.86) compared to the par price of VND10,000 ($0.48).
Their investment
helps increase NLG's foreign investment state to 43.6 per cent.
The previous
foreign investors include Aseana Properties Limited, Nam Viet (a fund of
Goldman Sachs Group) and Viet Nam Azalea Fund managed by Mekong Capital.
Also receiving
share certificates the same day were three local investment organisations,
the securities firm HSC, Huong Viet and Tan Hiep.
These six new
investors purchasing 25.5 million shares helped the property developer to
raise VND459 billion ($21.85 million).
General director
Nguyen Vinh Tran said at the event that his company's legal capital has
increased from VND955 billion ($45.4 million) to VND1,210 billion ($57.6
million).
The money will be
added to its working capital to support its future affordable apartment
projects.
The company plans
sale offers of 2,000 units this year, twice the number it sold in 2013.
50 million
shares for sale in Hancorp IPO
The Ha Noi
Construction Corporation (Hancorp) will sell nearly 50 million shares in the
corporation's initial public offering (IPO) this year.
Hancorp's chairman
Nghiem Sy Minh said that each share would be worth VND10,200 (US$0.48).
At present, Hancorp
has invested in 14 associated companies with a total investment of VND1.182 trillion
($56.285 million).
According to the
equitisation plan of Hancorp which was approved by the Prime Minister in the
Decision 28/QD-TTg in January 2014, the IPO will help Hancorp increase its
charter capital from VND1.2 trillion ($57.1 million), to VND1.9 trillion
($90.4 m).
Working mainly in
construction and as contractor of infrastructure, industrial zones, urban
areas and housing projects, Hancorp is known for the construction of the
Daewoo Hotel, National Conference Centre, Keangnam and Royal City.
Hancorp, with 33
member companies working in the construction industry across the country,
earned VND9 trillion ($428.5 million), as revenue in the last three years.
Its total assets are worth VND16 trillion ($761.9million).
Hancorp expects to
gain VND8 trillion ($380.9 million), in revenue and VND1 trillion ($47.6
million) in profits in the next five years, said Minh.
Vinamotor
plans IPO launch in March
The Viet Nam Motors
Industry Corporation (Vinamotor) will launch its initial public offering
(IPO) at the Ha Noi Stock Exchange on March 27 this year.
The corporation
will auction 51 million shares, which are equal to 51 per cent of the charter
capital and are worth VND10,000, or $0.47, each.
Vinamotor was
established in 1964. Its main products include coaches, buses, trucks and
automobile parts. Its equitisation plan, which has a charter capital of VND1
trillion ($47.6 million), has been approved by the Prime Minister.
Dragon
Capital’s bond funds merged
Fund manager Dragon
Capital has merged VDeF-A and VDeF-B under the Vietnam Debt Fund SPC (VDeF),
forming a general portfolio to improve investment and risk management.
The merged fund now
has total asset of US$38.5 million. Converting all bonds in the VDeF-A into
the VDeF-B was approved at Dragon Capital’s shareholder meeting in Hong Kong
last month.
Established in
2007, VDeF is an open-ended Cayman Island-registered fund that seeks
sustainable profits in the local debt market. It has been listed on the
Ireland stock market in Dublin.
The VDeF-A fund
concentrates on government debts and debts of State-owned enterprises.
Meanwhile, the VDeF-B has a broader investment strategy with corporate bonds
included.
VDeF has made
strong growth over the past three years with VDeF-A and VDeF-B rising 9.25%
and 10.36% respectively. With the results, the two funds took the lead in the
Emerging Market Corporate Debt report announced by the analytical service
provider Camradata recently.
Source: VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
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Thứ Hai, 3 tháng 3, 2014
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