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BUSINESS
IN BRIEF 14/4
Economy
recovering but demand improving slowly
The country’s
economic recovery has started to gain traction but aggregate demand has yet
to strengthen, according to the National Financial Supervisory Commission.
A report by the
commission on forecasts for the first quarter and the whole year said the
pace of consumption recovery is slow with retail sales of goods and services
(the price factor excluded) rising only 5.1% reported in quarter one, not
much higher than in the same period of previous years (4.5% in 2013 and 5% in
2012).
Private investments
have not improved much, which is evident in a credit contraction in quarter
one. Credit growth was 1.17% and 0.22% in the first quarter in 2013 and 2012
respectively.
Meanwhile, spending
on investment development declined 4.9% in the quarter while last year’s
first quarter saw a slight drop of 0.3%. Economic growth is thus quite low
compared to economic potentials.
Agriculture,
especially rice, is facing difficulties in output and price. Although rice
farmers have a bumper harvest, consumption of rice is still tough given the
mounting pressure from
Growth momentum
depends much on the foreign investment sector. Export revenues (crude oil
excluded) of the sector leapt 18.9% in the first quarter while those of the
domestic sector edged up a mere 2.8%.
The report points
out that it is necessary to continue stimulating consumer demand, supporting
farmers in terms of produce prices, lowering interest rates, and helping
enterprises and producers gain easier access to bank loans.
Besides,
disbursements of investment capital sourced from the budget and government
bond sales should be accelerated. Prices of essential goods and services, the
exchange rate and aggregate demand should be regulated in harmony with
monetary and fiscal policies, said the report.
However, the report
showed optimism, saying the economy is back to the growth trajectory although
the rate is modest. Economic growth is forecast to be higher in the coming
quarters, so the possibility of achieving 5.8% growth is high.
Vietinbank
may acquire Petrolimex's PGBank
PGBank, a small
in-house bank of Petrolimex, may sell 99 per cent of its stake to the
second-largest bank by assets, Vietinbank, as part of its restructuring
process.
The acquisition
plan, which was presented in a report prepared for PGBank's annual
shareholder meeting next Friday, is viewed as "the most advanced."
If approved by
PGBank's shareholders, Vietinbank will issue additional shares to acquire
PGBank.
The share swap
ratio of PGBank and Vietinbank is expected to be no less than 0.82:1.
Accordingly, PGBank
will become a banking unit under Vietinbank, yet will continue to retain
PGBank's trading brand and the operation system and management will remain
unchanged.
PGBank plans to
quadruple its pre-tax profit to VND250 billion (US$11.85 million) .
Last year, the
Petrolimex bank recorded a total outstanding loan of VND13.86 trillion ($657
million), up 0.6 per cent against 2012. Bad debt ratio recorded at the end of
2013 was brought to 2.98 per cent, from 9.81 per cent by the end of last
September or 9.09 per cent in 2012.
As of December 31,
2013, the bank's total assets were recorded at VND24.87 trillion ($1.2
billion), up 29 per cent against 2012.
The restructuring
process at PGBank is part of the government's direction that aims to reduce
the ownership of the major fuel importer and marketer, Petrolimex, from 40
per cent to 20 per cent next year. Petrolimex will have to withdraw its
investment in PGBank.
The plan of PGBank
and Vietinbank is not the first proposal of its kind. Since the beginning of
this year, Southern Bank and Sacombank, Mekong Housing Bank and Maritime Bank
also went through similar restructuring.
More border
gates benefit from tax breaks
The Ministry of
Finance has issued Circular 40/2014/TT-BTC, which guides the application of
preferential import tax on goods from
As compared with
the previous Circular 82/2012/TT-BTC, the latest circular mentions more
details and more product lines in the list of imported goods allowed to enjoy
a preferential import tax rate of zero per cent.
In addition, seven
border gates are permitted to enjoy clearance for imported goods with
preferential tax rate of zero per cent for products from
The circular came
into effect from January 1, 2014, and will expire on December 30, 2015.
Laos Petro
to invest in bonded warehouse, oil pipeline
Laos Petro Join
Stock Company plans to invest US$200 million in a bonded warehouse and oil
pipeline from Hon La of
Laos Petro Join
Stock Company has proposed this investment plan to the Quang Binh Provincial
People's Committee of Viet Nam.
The project
includes the bonded warehouse, with a capacity of 300,000-500,000 cubic
metres, used for temporarily handling imported gasoline that will be
re-exported to
Ministry
wants new housing projects stopped
The Ministry of
Construction has made a proposal to Prime Minister Nguyen Tan Dung about
requiring localities to stop allowing new residential projects this year.
The ministry said
the proposal was being made due to a large inventory in the property market,
and that the supply of high-end housing was higher than the supply of low and
middle-level segments.
Reports from 61
localities from across the country showed that there are around 3,200 housing
projects being constructed, accounting for 81 per cent of the total with an
area of 81,500ha. Fifty-two provinces and cities in the country have
requested adjusted planning of 45 projects with an area of 21,000ha.
Ariston
Thermo opens new plant in Bac Ninh
Ariston Thermo,
Italian heating and water heating manufacturer, opened a new manufacturing
plant in Tien Son Industrial Park of Bac Ninh Province.
This is the
company's first plant in
"With today's
opening, we strengthen our production capacity within the countries of
Southeast Asia, an area of strong growth in which
With the new plant,
Ariston Thermo has set a goal expanding its business in the local market and
in other countries of
Toyota Viet Nam
(TMV) said it is preparing to recall 42,772 units of Innova and Fortuner for
checking and replacing the spiral cable of driver's airbag.
The malfunctioning
spiral cable may prevent the airbag from opening in the event of a crash. The
total number of vehicles that the TMV plans to recall includes 40,241 Innova
units produced from January 7, 2006, to January 19, 2010, and 2,531 Fortuner
units produced from February 1, 2009, to January 19, 2010, the
Japanese-invested car maker said in a statement sent to Viet Nam News.
The move follows a
global recall of vehicles, due to faulty airbags, by Toyota Motor Corporation
(TMC) that effected 3.5 million vehicles produced in North
According to the TMC,
the driver's airbag module in the vehicles in question contains electrical
connections housed in a spiral cable assembly, which includes a Flexible Flat
Cable (FFC).
The FFC could
contact a small point of the retainer and become damaged when the steering
wheel is turned. This damage could occur to a circuit on the FFC that
provides connectivity to the driver's airbag module.
If the connectivity
is lost, the airbag warning lamp will light up and the driver's airbag can
get deactivated, causing it to not deploy in the event of a crash.
Under detailed
guidelines from the TMC, the TMV will carry out the checking and replacing of
the spiral cable of driver's airbag free of cost.
The TMV said it has
been reporting the details of the campaign to recall the vehicles to Viet Nam
Register as well as managing logistics to facilitate an early recall.
"Immediately
after approval by Viet Nam Register, the TMV will send official and detailed
information of the campaign to customers and mass media in
Last December,
Toyota Motor Viet Nam also recalled 126 Land Cruiser Prado and Hiace for
checking the valve springs. In November 2012, it recalled 5,299 units of the
Corolla Altis and Vios to check and repair faulty power-window master
switches.
While the TMC – the
world's biggest automaker - sold nearly 10 million vehicles last year, its
Tran Van Viet, an
expert from the National Assembly's Economic Committee, said agriculture
should not only used to feed people, but to feed them properly.
"Food
security, climate-smart agriculture and green growth have become the
motivation for the farm sector in recent years," he said.
Nguyen Van Bo,
director of the Viet Nam Academy of Agriculture Sciences (VAAS), said it was
not possible to look at food security, poverty, hunger, climate change, and
environmental sustainable development separately.
He said
A model for smart
agriculture was initiated in 2011 with support from the Food and Agriculture
Organisation.
It was held in the
three
Viet said the term
"green growth" had become a development strategy in
Nguyen Do Anh Tuan,
deputy director of the
These include
shifting from protecting rice-planting areas to protecting agricultural land
and from developing rice production to improving food quality. He also
recommended that instead of expanding agriculture areas,
Tuan also mentioned
the need to invest in technology for the post-harvest period instead of
focusing only on production and to organise large-scale regional production
instead of small-scale, scattered production.
Another important
suggestion that Tuan made was that the Government support farmers from
vulnerable groups so that they could make higher profits. Besides, he said,
the Government should let the market run its own course instead of
intervening and should help the country focus on its strengths in order to
boost international integration.
Vietnam’s
cooperative potential introduced in France
Evaluating the huge
potential of cooperation between
The event, part of
activities marking the Vietnam Year in
Speaking at the
seminar, Tours Deputy Mayor Christophe Bouchet, said that
“Exploiting the
advantages to their fullest and capitalizing on the benefits of cultural
heritage, the Loire Valley region of Tours has boosted cooperative activities
to become a dynamic and long-term economic and trade partner with Vietnam,”
he said.
Cultural exchanges
have been held through photo exhibitions, art performances and film screening
in the framework of activities of the Touraine-Vietnam Friendship
Association, further bolstering cooperation between the two nations he added.
At the seminar,
leading governmental and business officials of Indre Et Loire introduced
programmes to support
For his part,
Vietnamese ambassador to
The Vietnamese
diplomat highlighted huge economic potential between the two nations and
encouraged businesses of Indre Et Loire to invest in
Nguyen Canh Tuong,
Vietnamese embassy trade counselor in
Road
maintenance to cost $332m
The National Road
Maintenance Fund needed more than VND7 trillion (US$332 million) to repair
and upgrade roads this year, Chief of the fund's Central Council Le Hoang
Minh has said.
Of this amount,
VND4.6 trillion ($218 million) is expected to come from vehicle
registrations. The rest will be provided by the State budget.
Figures from the
council show that more than VND1 trillion ($47 million) was collected from
registration stations nationwide in the first three months of this year,
accounting for 23.5 per cent of the estimated amount for the whole year.
Nearly VND5.4
trillion ($256 million), which will account for 65 per cent of the fund, will
be spent on managing and upgrading national highways. The rest will be
allocated to provinces and cities to help them maintain and upgrade roads.
Out of the nation's
63 cities and provinces, 62 have set up their own road maintenance funds and
47 have councils to manage the funds.
Last year, the National
Road Maintenance Fund, which was established in 2012, collected nearly VND7
trillion.
It spent VND6.4
trillion ($303 million) on regular road maintenance and management, buying
toll collection rights for a toll station on National Highway No.1 and
establishing mobile truck weighing stations.
Statistics from the
Ministry of Transport last year showed that there were more than 37 million
motorbikes and two million cars in
The amount of road
maintenance fees vehicle owners are required to pay is decided by provincial
and municipal People's Committees.
Lending
rates at 2005-2006 levels
Lending rates
currently hover at 2005-06 levels, less than half the 2011 rates, according
to the State Bank of
Lending interest
rates in Vietnamese dong are currently at 8 per cent for the five prioritised
sectors (agricultural producers, exporters, small- and medium-sized
enterprises (SMEs), supporting industries and hi-tech businesses).
Other sectors are
charged lending rates of 9-10.5 per cent for short-term loans and 11-12.5 per
cent for medium- and long-term loans. Businesses with healthy and transparent
financial positions and viable business plans can borrow at 6-7 per cent per
year.
Last year, SBV
Governor Nguyen Van Binh called on credit institutions to cut lending rates
below 13 per cent for existing loans. Loans with rates of 13 per cent, which
are mainly for consumption, currently account for roughly 17-18 per cent of
banks' total outstanding loans, much lower than the rate of 31 per cent from
late June last year.
The Government
asked the banking industry last month to further lower interest rates on
existing loans to remove difficulties for enterprises.
SBV Deputy Governor
Nguyen Phuoc Thanh said that the banking industry would follow this
directive, trying to cut interest rates of existing loans to roughly 10 per
cent from the current 12-13 per cent.
If lending rates
remain as high as 13 per cent, firms will not be able to repay loans and will
be forced to close, Thanh said, so banks should cut rates to save not only
firms but also themselves.
Fuel prices
slashed, petrol stays unchanged
The ministries of
Finance and Industry and Trade yesterday asked retailers to cut price of all
kinds of fuel except petrol.
Accordingly, the
diesel price was cut by VND90 per litre to VND22,510 (US$1.07) while that of
mazut and kerosene was reduced by VND100 and VND130 per litre to VND18,660
($0.88) and VND18,360 ($0.87) respectively.
The price of petrol
remained unchanged at VND24,690 ($1.17) per litre.
The ministries also
wanted the use of the price stabilisation fund for petroleum products to be
minimised. The fund, built on contributions from the firms' selling prices,
is mostly used to offset losses during delays to adjust local prices after
international prices increase.
Accordingly, the
payback on petrol was reduced from VND200 to VND50 per litre, while that on
diesel, kerosene, and mazut remained unchanged at zero dong per litre.
The cut in payback
on petrol prices was based on the estimation that traders were making a
profit of nearly VND200 per litre on petrol at current prices.
According to the
Ministry of Finance, the petrol price stabilisation fund stood at VND840
billion ($39 million) at the end of the first quarter of this year.
It noted that the
fund balance at the end of this quarter of Viet Nam National Petroleum Group
(Petrolimex) and the Military Petroleum Corporation was VND649.3 billion ($30.9
million) and VND154 billion ($7.3 million) respectively.
The HCM City Oil
and Gas Company and Thanh Le import-export company have a fund balance of
VND100 billion ($4.7 million) and VND109 billion ($4.8 million) respectively,
while Hai Ha Waterway Transportation Company has VND26 billion ($1.23
million).
SBIC not
ready for equitisation
The Shipbuilding
Industry Corporation (SBIC) is asking the Government for a special mechanism
to deal with debts and negative equities of its subsidiaries before equitisation
in the next 20 months.
SBIC's Chairman
Nguyen Ngoc Su made the revelation at a recent training workshop on
equitisation. Most of the SBIC subsidiaries are suffering cumulative losses
and grand negative equities.
"Currently,
the key challenge is that big negative equities are at a complete standstill
during the debt restructuring processes. It is mandatory for companies to
turn equities into a positive status before equitising," Su pointed out.
Accordingly, SBIC
expects the Government to allow its subsidiaries to transfer debts to the
mother corporation. Debt compensation will be provisionally made by revenues
from initial public offerings (IPOs).
If IPOs fail to
settle the debts, SBIC will seek the government's continued support throughout
the debt restructuring and loss compensating process.
SBIC, formally
known as Vinashin, intends to privatise four one-member limited companies,
such as Vinashin Corrugated Iron Company,
Five others slated
to go public next year are Thinh Long, Sai Gon Shipbuilding and Marine
Industry Company, Sai Gon Shipbuilding Industry Company, Bach Dang, and Pha
Rung shipbuilding companies.
In
SBIC has completed
its first phase of the restructuring process. In the second phase, the
government has permitted the restructuring of debts including the
Government-guaranteed debt, debt from the official development assistance,
and the amount lent to Vinashin.
Therefore, SBIC has
VND21 trillion (US$1 billion) of domestic debt and about $35 million of
foreign debts.
In October last
year,
The move was aimed
to help the State-run Vinashin cover a foreign loan worth $600 million, which
was considered crucial for the group to repay the foreign debts and enable it
to accelerate the much-needed restructuring of the corporation.
The bonds will be
issued for 12-year terms with an annual interest rate of 1 per cent.
The restructuring
of Vinashin was ordered in 2010 after government inspectors uncovered the
group's financial malpractices. By the end of 2009, the company was neck deep
in debts amounting to more than VND86.7 trillion or $4.1 billion.
The municipal
People's Committee said it has completed the sale of State-owned houses in
the city to meet the urgent demands of families and beneficiaries of social
policies.
Statistics from the
city showed that it had sold 93,600 State-owned houses till date, accounting
for 98 per cent of the total.
In 2010, the city
sold 92,500 similar houses with a total area of 5.1 million square metres for
VND5.86 billion, or US$279 million. The money has been reinvested in housing
projects.
The city has
102,000 State-owned houses.
Banks cut
rates on capital surplus
Many banks have
slashed interest rates to below the ceiling level of 6 per cent regulated by the
central bank amid abundant capital.
Deposit interest
rates listed at the Viet Nam Export Import Bank (Eximbank) for the term
ranging from one to three months has been cut to 5.7 per cent from the
previous 6 per cent rate. The deposit interest rate for the 4-5 month term
has also been slashed to 5.98 per cent from 6 per cent.
Sacombank has also
cut the deposit rate for the term of between seven and 11 months. The annual
rate of 6.55 per cent has been applied to the 7-8 month term, while 6.7 per
cent has been set for a 9-10 month term and 6.8 per cent for the 11-month
term.
According to the
central bank, credit in the first quarter this year rose only 0.01 per cent,
showing that banks are enjoying a surplus of capital.
Despite the
abundant capital, interest rates are still above the deposit rate ceiling in
some ailing banks, according to the Phap luat TP HCM newspaper.
Deputy Governor of
the State Bank of Viet Nam (SBV) Nguyen Phuoc Thanh said that the interest
rates over the deposit rate ceiling had greatly reduced, showing that in
spite of solid liquidity in some aspects of the banking system, it was not a
uniform trend.
He explained that
the liquidity of some ailing banks was so restricted that it was forcing them
to try to attract depositors with interest rates above the ceiling rate.
Thanh said that the
central bank would plan to boost competition in the banking sector by
solidifying the banking industry through restructures and weeding out weak
banks.
In a foreacast on
credit sector trends in the second quarter of this year released last week,
most credit institutions said deposit and lending rates in Vietnamese dong
would continue to decline this year.
Vinatex
announces investment plans
Viet Nam National
Textile Garment Group (Vinatex) will invest VND4.8 trillion (US$228.5
million) in three projects in the central
According to
information published on Vinatex's website, the projects that were granted
licences were a fibre plant and a garment factory in Quang Phuc Ward, Ba Don
Town and a garment factory in the Gia Ninh Commune, Quang Ninh District.
In addition to the
three projects , the group has signed a memorandum of cooperation with the
Quang Binh Province for four other projects, such as the research and
development of cotton and eucalyptus materials for the group's spinning
mills, investment research for the construction of a fibre plant in Quang
Ninh District, investment research for a fibre weaving and dyeing complex in
Bac Quan Hau Industrial Park, and an investment survey related to garment
factories for export in the Le Thuy and Quang Trach Districts.
According to
Vinatex,
On April 5,
New power
calculations
Prime Minister
Nguyen Tan Dung has issued a decision on electricity retail prices that will
apply to six price levels instead of the current seven levels.
The decision, which
will take effect from the beginning of June, stipulates that power tariffs
for households consuming 0-50kWh will be 92 per cent of the average price, 95
per cent for 51-100kWh, 110 per cent for 101-200kWh, 138 per cent for
201-300kWh, 154 per cent for 301-400kWh and 159 per cent for more than
401kWh.
The current
regulation divides power retail prices into seven levels. Accordingly, the
first level of 0-50kWh has been established for poor households, while the
remaining six levels have been applied to all households.
Customers would
therefore enjoy cheaper prices if their consumption fell into the fifth
bracket of 301-400kWh.
Retail power
tariffs will also be adjusted for industrial activities.
The new decision
stipulates a common price for two groups of production and water-pumping
sectors instead of the current two levels of pricing. The new tariff will be
one per cent higher than the current price.
Retail prices
applied to businesses will also be reduced by five per cent during normal
business hours, three per cent during off-peak hours and eight per cent
during rush hours for 6-22kV.
Stable
price initiative a success
The city's market
stabilisation programmme, with its diverse, high quality products and
reasonable prices, has become an effective way to regulate and stabilise
market prices.
Speaking at a
conference yesterday, Le Ngoc Dao, deputy director of the city's Industry and
Trade Department, said the programme had promoted trade co-operation between
Last year, the city
did not use the State budget to support enterprises in the programme but
invited credit institutions to provide preferential interest rates on loans.
Five credit
institutions and 59 enterprises joined the programme in 2013. They provided
VND860 billion (US$42.5 million) in short-term loans with an interest rate of
6 per cent per year and VND1.1 trillion ($53 million) for medium- and
long-term loans at 10 per cent per year.
The programme
accounted for 25-40 per cent of market demand, an increase of 15-30 per cent
in comparison with 2012.
Selling prices for
products in the programme were 5-10 per cent lower than market prices.
The programme
comprises four groups, including basic foodstuff, milk, essential medicine,
and goods for students.
The basic foodstuff
includes rice, sugar, cooking oil, meat, eggs, processed food, vegetables,
fruit and seafood.
Enterprises have
provided 350 kinds of food and the total value for products of the programme
in 2013 and Lunar New Year 2014 was VND12.5 trillion ($600 million), an
increase of 46 per cent compared to 2012.
Many participating
enterprises have expanded their production for the programme because of
increased capital and soft loans provided to them.
For example, the
Sai Gon Trade Corporation now has cold storage with a capacity of 21,000
tonnes for goods at the Binh Dien wholesale market.
Meanwhile, the Sai
Gon Co-op has invested in three storage and delivery centres in Hau Giang and
Binh Duong provinces and has updated equipment for their logistics system.
In addition, the Ba
Huan limited company has invested in an 18-ha farm for poultry and eggs.
The programme aims
to bring essential food for all customers in supermarkets, shops, traditional
markets, industrial and processing zones, and restaurant owners who provide meals
for enterprises, factories and schools.
The programme has
8,200 points of sale, an increase of 1,270 since its inception. The number of
selling places in the city outskirts has increased from 54 in 2008 to 815.
Student uniforms,
notebooks and schoolbags have been provided to 2 million students in the city
under the programme.
In 2013, 13
enterprises joined the programme, with turnover of VND411 billion ($20
million), an increase of nearly 11 per cent compared with 2012.
Many promotion
campaigns were carried out, including cuts in prices by 25-30 per cent, and
donations of notebooks to poor students in rural areas. There are 769 selling
places around the city.
Milk was included
in the programme for the third year, with participation of the companies
Vinamilk and Nutifood, which have taken 30 per cent of market share.
These two companies
have provided 32 types of products with nearly 15,000 tonnes and revenue was
VND1.26 trillion ($60 million), an increase of 45.5 per cent compared with
2012.
Vinamilk's products
were tested as having the same quality as imported products, but the price
was half of the latter.
Milk products
purchased in the programme were brought to 1,563 schools, 284 factories and
31 enterprises in industrial and processing zones
This is also the
third year that essential medicine was included in the programme.
In 2013, there were
13 local leading pharmaceutical companies with 392 products taking part in
the programme, an increase of 307 compared with 2012.
There were 2,756
selling points for drugs, an increase of 732 compared to 2012, at 2,054
private pharmacies, 108 hospital pharmacies and 594 enterprises' shops.
"The programme
has improved enterprises' abilities and encouraged customers to use and buy
local products," Dao added.
The current
programme implementation end on March 2015.
Japanese
investors eye IT business opportunities in Da Nang
The central city of
These companies are
involved in, for example, producing electronic components, developing
software outsourcing, manufacturing pulp and nets for export, and processing
seafood and agricultural products. They have created over 25,000 jobs for
local residents.
The Vice Chairman
of the Japan Information Technology Service Industry Association (JISA), Mr
Takashi Igarashi, said that after Ha n oi and Ho Chi Minh City, Da Nang was
Viet n am’s third most attractive location in 2013, as perceived by JISA.
He also expressed
his belief that Japanese businesses would seek more investment opportunities
and partners in the city’s IT sector in 2014 and in the years ahead.
These positive
results have been attributed to the city’s favourable investment climate.
Technology Company,
Mr Michio Saruhashi, said that his company had made the right decision when
it chose the Hoa Khanh Industrial Zone in
He also remarked
that the city was attractive to his company due to the very favourable
conditions for foreign investors which have been created by the local
authorities.
He added that
recommendations from existing city-based Japanese businesses was another
reason for encouraging his company to invest here.
A representative of
the Mabuchi Motor Da Nang Company said that his company decided to invest in
Grasshoppers
attack crops in Cao Bang
Swarms of
grasshoppers are threatening crops in many localities in the northern
mountainous
The worst affected
are Hoa An and Thong Nong districts, with 11 out of 21 communes and towns in
Hoa An, and 7 out of 11 communes in Thong Nong reporting large numbers of the
insect.
The grasshoppers
are swarming along banks of streams and rivers, with an average density of
200-300 individuals per square meter, and even 1,000-1,500 grasshoppers every
square meter in some locations, according to local authorities.
The pests have
destroyed 12 hectares of plants, and start attacking corn and rice fields.
The province has
set up a steering committee to coordinate efforts to deal with the pests.
Vietnam
shares environmental protection with Laos
Vietnamese
environment officials shared experience in natural resources management and
environmental protection with the Lao National Assembly’s representatives in
At the working
session, attended by NA Chairwoman Pani Zathotu and vice chairpersons,
Minister of Natural Resources and Environment Nguyen Minh Quang briefed his
hosts on the management of land, mineral and water resources and the
environmental protection in
He also spoke of
challenges and lessons drawn from the reality so that the country can make
timely polices and laws on natural resources management and environmental
protection, thus boosting its socio-economic development on a right track.
As the two
countries share similarities in natural conditions and socio-economic
institution,
The minister also
expressed his wish that the two sides will increase cooperation and
professional exchanges in State management in general and in the management
of natural resources in particular.
The Lao
representatives appreciated
Landville
given final warning
Ninh Thuan province
has told the South Korean firm to make clear its intentions Photo: Le Toan
The provincial
committee, in an announcement sent to the company late last month, said that
it would not extend the timeline for Landville Energy’s feasibility study,
and that Landville Energy should file an investment application to the
committee no later than June 2014.
Landville Energy
received the green light from the province to conduct a feasibility study into
the project in August 2013. The investor had to complete the study and submit
its investment application to the provincial committee within six months. The
details of the project such as investment cost and capacity were not
unveiled.
“The company has not
yet completed all the procedures and has failed to complete its feasibility
study on time. Therefore, the provincial committee may reject the proposal,”
the Ninh Thuan Provincial People’s Committee said in the announcement.
The local
authorities have also ordered the company to make a commitment to put the
wind farm into operation by the first quarter of 2016.
“If Landville
Energy fails to meet the June deadline for filing an investment application,
the provincial committee will assume the company no longer wants to invest in
this project, and the committee will withdraw its in-principle approval from
the project,” the committee stated, adding that the province would not
compensate any costs relating to the feasibility study.
The threat by the
Ninh Thuan Provincial People’s Committee reflects the province’s policy to
weed out weak investors from potential wind farm projects in a context where
many domestic and foreign investors in the renewable energy sector are
planning to flock to the province.
Located in the
southern-central coastal region, Ninh Thuan is said to be an ideal site for
wind power. According to a World Bank survey, the province boasts ideal 7-7.5
metre per second gusts of wind at a height of 65 metres.
The Ninh Thuan
Provincial Department of Planning and Investment reported that five investors
had received licences to develop wind farms with the total capacity of 344
megawatts (MW) in the province so far.
Covering an area of
553 hectares in Thuan Nam and Ninh Phuoc districts, Enfinity’s project has
the total capacity of around 124.5MW, making it one of the largest wind power
projects in Vietnam.
Vinexad
building sale faces shareholder doubts
Late last week,
Vietnam Trading Expo and Advertising Joint Stock Company (Vinexad) faced
strong disagreement from its shareholders over a proposal to sell its office
building on
The shareholders
argued the company’s management board did not provide information on the
sale, such as the potential buyer, the price of the building, how its value
had been appraised or plans for the capital raised by the sale.
They said the lack
of information made them feel the sale was not transparent, or feasible.
According to Nguyen
Khac Luan, chairman of Vinexad, the board only wanted in-principle approval
from shareholders and then once approved would take the aforementioned steps.
According to some
shareholders, the proposal was not in their best interest.
Others claimed that
if the proposal was approved, the management board would be given total
control of the sale and shareholders would only informed after it was
complete.
At a meeting last
week held in
Vinexad has claimed
its financial difficulties stem from inefficient operations, caused in part
by the building’s old age which makes it undesirable for potential tenants.
The 1,500 square
metre building has a lease contract through 2026.
It has been plagued
by vacancies since 2013 when the rental market slumped.
Vinexad added that
building could not be redesigned as a high-rise as it is faced by the limited
height requirements for properties around the lake.
The proposal to
sell the building was finally approved by the stakeholders in-principle but
the board is required to make a detailed plan which it will propose at the
next meeting for further consideration.
Vacant
villas overtaken by squatters
According to a
survey conducted by Lao Dong newspaper, a range of villas valued in the
billions of dong in residential areas such as Xa La, Van Quan, Me Tri, Co
Nhue and Viet Hung are unused.
These areas are
located along new, expanded streets, have convenient transport access, and
are near public facilities such as schools, supermarkets and hospitals.
But for several
reasons they lacked paying tenants and have been occupied by the homeless.
According to Nguyen
Van M, the owner of a villa in Xa La in
“I am luckier than
many others whose villas are unused and have deteriorated,” M said.
As well as the
above districts, villas in the urban areas of An Sinh My Dinh 2 in Tu Liem
district and Phap Van-Tu Hiep in Hoang Mai district are also sitting
unfinished and have become the haunts of thieves and drug addicts.
According to the
Hanoi Municipal People’s Committee, in 2013
The committee plans
to map out fines or taxes to force owners to finish construction. But many
developers don’t have the capital resources to do so.
Dang Hung Vo,
senior consultant of the Ministry of Natural Resources and Environment, said
the vacant villas were a result of the property boom and bust. “These villas
are owned by wealthy people who bought them for speculation, but not living,”
he added.
Vo said this was
because
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Chủ Nhật, 13 tháng 4, 2014
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