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BUSINESS
IN BRIEF 2/4
Vietnamese tyre
exports to
According to the
Ministry of Industry and Trade (MoIT)’s Vietnam Competition Authority (VCA),
Brazil's Ministry of Development, Industry and Foreign Trade has announced
its final decision on an anti-dumping duty imposed on bicycle tyres imported
from China, India and Vietnam.
Under the latest
decision, tyres exported by Kenda Rubber (
The product subject
to the investigation was classified as item HS: 4011.50.00. This was
Brazilian tyre
producers claimed that
Imported Vietnamese
tyres accounted for more than 18.5% of the total market in 2011.
The VCA had earlier
warned over the risk of anti-dumping lawsuit in
At present, the
market economy status of both
Recent statistics
showed that the average price of tyres imported from
The anti-dumping
tax levied on Vietnamese tyres is lower than similar tyres from
According to the
Vietnam Rubber Association, 830 businesses are operating in the industry with
major producers- the Saovang Joint-stock Rubber Company (SRC), the Danang
Rubber Joint Stock Company (DRC), and the Southern Rubber Industry JSC
company (CSM).
Previously, the
industry had primarily served domestic consumption, but since 2010 it has
enjoyed strong growth and helped
So far, Vietnamese
tyres have been exported to 137 markets in which
Recently,
In addition to the
anti-dumping duty on Vietnamese bicycle tyres,
New PPP law
improves quality of public service
Maintaining the
balance between public ownership and outright privatization for
Public-Private Partnerships (PPP) is the key to delivering quality public
services, said ADB Country Director for
Kimura made the
remarks at the launch of the Asian Development Outlook 2014 economic
publication in
He suggested that
A longer-term
challenge is improving the quality of infrastructure in
It contributes to
funding infrastructure projects, gaining access to international expertise as
well as access to advanced modernised technology that improves the quality of
the physical infrastructure in addition to the quality of services, he said.
Asian Development
Outlook 2014 forecasts
Inflation is
projected to average 6.2% in 2014, assuming reasonably stable food
production, moderate policy stimulation, and only slight depreciation of the
dong. Inflation is forecast to average 6.6% in 2015 as economic activity picks
up.
It advocates
financial sector reforms be undertaken including stepped up efforts by State
Bank of Vietnam to supervise bank lending, merger and restructuring of some
weaker banks, and eased restrictions on foreign investment in domestic banks.
It also
acknowledges initiatives regarding the new loan classification and provision
standards intended to close the gap with international norms that will come
into effect in June 2014 are a positive step for the economy.
Asian Development
Outlook 2014 is a flagship publication, which provides assessment of recent
economic developments in
Conference:
ways to better utilise large-scale rice fields
The Ministry of
Agriculture and Rural Development has held a conference to gather opinions on
the development of large-scale rice fields and links between agricultural
production and distribution.
At the event,
organised on March 31 in the Mekong Delta
It is necessary to
consider areas that see high rice productivity and quality rice in each
locality during the building of large-scale paddy fields, while focusing on
increasing the signing of trade agreements between farmers and businesses to
shape a competitive rice value chain, they said.
Meanwhile, Deputy
Minister of Agriculture and Rural Development Tran Thanh
For the 2013-2014
winter-spring crop, as many as 65 out of 97 local businesses in Mekong Delta
localities have joined the large-scale rice fields and connectivity model
with a total area of more than 54,000 hectares and a total output of 356,000
tonnes.
Industrial
production up 4.7% in March
According to the
General Statistics Office, in the first three months of 2014, the IIP has
recorded a year-on-year rise of 5.2%, higher than the rate of 5% in the
corresponding period of 2013.
Several industries
have seen high growth in the reviewed period, such as textile (20.2%),
leather and leather products (19.4%) and ready-made clothes (14%).
The northern port
city of
They are followed
by Quang
Meanwhile, decline
in industrial production has been seen in Quang Ninh province (3.5%) and Ba
Ria-Vung Tau province (1.7%).
The country's
largest economic hub,
The city's leaders
have placed the target to achieve a GDP growth of 9.5-10 per cent in 2014,
1.5 times higher than the national rate.
During a meeting
yesterday to review economic situation of the first quarter, Le Hoang Quan,
head of HCM City's People's Committee, commented that the city's economy has
been stabilised with GDP growth recorded at 7.7 percent, 1.5 times higher
than the national rate.
The consumer price
index (CPI) of this month reduce 0.46 percent, the lowest rate in ten years,
Quan said, adding that the city tries to suppport the country's target to
control inflation rate below six percent.
With recovered
economy, the city's State budget income in the first quarter this year is
reported at VND60.498 trillion, an increase of 16.7 percent in compared with
the same period last year.
"In the first
quarter of 2013, city's State budget income was roughly VND53 trillion. The
recovered economy leads the increase of State budget income in the
city," he said.
However, Quan also
warned about the heavy tasks during the rest quarters of this year.
In order to get the
GDP development rate of last year at 9.3 percent, the city should achieve GDP
growth rate in second quarter at more than 8.1 percent, third quarter, 10.3
percent and the last quarter 10.7 percent.
"This year's
GDP growth targeted between 9.5 and 10 percent, so GDP growth rate of the
second quarter should be over 9.7 percent. In order to achieve the target,
the whole city has to work hard during the the rest nine months," he
said.
To achieve that, it
is important to accelerate the implementation of a programme to support
economic restructuring, improve the business environment, raise the
enterprises' competitiveness, according to the chairman.
According to Vo Si,
deputy director of
Also in the same
period of time, 75 foreign direct invested enterprises were authourised in
the city, with registered capital of US$690 million, an increase of 11.6
times against the same period last year, Si added.
Despite of the
growth of GDP and higher number of new enterprise, the volume of both import
and export was reported as reduce in the first quarter. The export value
reached $6.3 billion, a reduction of seven percent in compared with the same
period last year, according to the department.
Si explained that
the export fall of industrial product and crude oil has contributed to the
drop of overall export value. Recently, instead of exporting, crude oil has
been transferred for being refined in domestic.
The city's chairman
requested relevant authourities to conduct a comprehensive evaluation on the
export situation in the city for better solutions in the up-coming times.
Meanwhile, the
import value during the first quarter reached US$5.4 billion, a reduction of
six percent in compared with the same period last year. Most of the imported
products are computers, electronic products, milk and products from diary.
With brighter world
economy, it's possible for the city to reach the GDP growth target at 9.5 to
10 percent placed by the city's Party Committee, Vo Van Luan, Chief Office of
HCM City's People's Committee told local media during a press briefing after
the meeting.
However, the
biggest challenges for the city to realise the target were the market and
capital sources, Luan said.
Related to the
development of Thu Thiem New Urban Area, land clearance has been done at 90
per cent. The city is revoke the rest part of land in the area. According to
the city, during the first quarter this year, the city has revoked 11 plots
of land with total area of 1,300 square metres.
Soursop
farming sweetens lives
Over the last
several years, many farmers in
Dao Van Dong in the
province's Tan Phu Dong District, for example, earned VND75 million
(US$3,500) from selling 10 tonnes of soursop in the last harvest.
Dong, who has a
0.5ha soursop orchard in Tan Ninh Hamlet, said his family was no longer poor.
The family once raised pigs and grew rice but had earned a low income.
"At that time,
my children had to go to other places to work as hired employees," he
said.
Similarly, Bui
Trung Tin in Tan Phu Commune said he had been earning a yearly income of more
than VND100million ($4,700) from his 0.5ha of soursop orchards.
Five years ago,
Tinh began intercropping soursop trees on vacant mounds of his paddy field.
When his soursop trees begun to bear fruit after three years of planting, he
stopped growing rice.
The district is
plagued with saline intrusion and acidic soil, and only a few kinds of trees,
such as soursop, can grow in the soil.
Located between the
mouths of Cua Tieu and Cuu Dai rivers in the Cuu Long (
Nguyen Van Hai,
head of the Tan Phu Dong Agriculture and Rural Development Bureau, said more
than 400ha of the district's 540ha of soursop have borne fruit, mostly in Tan
Thoi, Tan Phu and Phu Thanh communes.
Nguyen Van Thuong,
deputy head of the Tan Phu Commune Farmers Association, said soursop, which
has a high nutritious value, had been in demand in recent years.
In Tan Phu Commune,
which has the largest soursop cultivation area in the district, nearly 600
households grow a total of about 300ha of soursop.
Tan Phu has a
soursop co-operative of 50 members and 30ha of soursop under cultivation. The
co-operative guarantees buyers for its members.
Local agricultural
officials have taught farmers new techniques, including how to grow trees
that bear off-season fruits.
Soursop has two
peak seasons a year, at the beginning of the rainy season and before Tet
(Lunar New Year).
The price of
soursop is stable and farmers can earn a profit of VND150 million per ha a
year, local officials said.
Hai said the
district was implementing a sustainability plan using Vietnamese Good
Agriculture Practices (VietGAP).
Mass clam
deaths leave farmers in debt
The death of 60
million snout otter clams the key aquaculture product of northern
Caused by the
Perkinsus parasite, for which there is no known cure, the massive deaths left
hundreds of households facing financial difficulties, said Nguyen Quang Ninh,
deputy head of the district's Department of Agriculture and Rural
Development. The disease cost 700 households and 20 enterprises more than
VND200 billion (US$9.4 million). Many farmers were forced to sell their clam
cages –and even homes – to pay off their debts.
Farming of snout
otter clams in the district started in 2003. After seven years, the tempting
profits from the business raised farming households from 10 to 700.
La Thi Loan, owner
of a waste collection business in the district's
Nguyen Van Tot has
worked on aquaculture in the district for years. The director of Van Hoa JSC
said tens of thousands of cages were abandoned underwater as the money earned
from selling the clams was not enough to pay workers to fish them from the
sea.
Nguyen Van Thin,
chairman of the Van Don snout otter clam production association, said the
clams were once extremely profitable. Farmers had to purchase breeds from
different sources, including
Currently, in the
district, only 3,000 hectares of water surface were used to raise the clams,
a reduction of 30 per cent compared to the same period of last year. This
number was likely to continue declining, he said.
According to Ninh
of the district's agriculture department, the provincial authority has agreed
to give financial support to affected households, but none has yet received
the money.
He said the
authority would provide VND200 per breed to those who lost more than 70 per
cent of their crops and VND100 per breed to those who lost between 30 and 70
per cent of their crops. However, households must show bills and other
necessary papers to receive this support, and many farmers purchase breeds
without clear origin, he said.
Experts at the
workshop said that initial steps being taken include raising public awareness
of nanomaterial risks to human health and environment and formulating a
national programme on nano technology development.
Nanotechnology can
be widely used in many areas including chemicals, cosmetics, energy,
electronics, engineering, food and medicine, they said. However, while it can
have beneficial applications in all these areas, it can also have unintended
effects that can adversely impact the environment, both within the human body
and within the natural ecosystem, they added.
Hoang Duong Tung,
deputy director of the Viet Nam Environment Administration (VEA), said
nanotechnology was already being applied in many fields in
Nguyen Anh Tuan, from
the VEA's Pollution Control Department named several risks that nanomaterials
could exert on human health and environment.
He said a nano
particle could invade water and soil resources when products using
nanotechnology were being transported or used, and this can have unforeseen
impacts.
A nano particle can
cause DNA damage among human beings as also stunt plant growth, he said.
Nguyen Xuan Phuc,
former chairman of Viet Nam Academy of Science and Technology's Institute of
Materials Science, said two steps have to be taken to raise public awareness
of nano risks to human health and environment.
First, children
should, step-by step, be educated on nano-related concepts at schools.
Second, mass media have to strengthen dissemination of accurate information,
he said.
Families
move to avoid floods
More than 800
households living in and around vulnerable areas in the
The season
typically occurs from May to December.
Nearly 1,400 local
households had been moved to new resettlement areas from 2006 to late last
year, Deputy Director Mai Mong Tuan of the provincial Agricultural and Rural
Development Department told Viet Nam News.
"Residents
have better lives in the new resettlement areas, including those in Luc Yen
District's Muong Lai Commune and Van Chan District's Suoi Bu Commune.
"The new zones
meet most of the specified criteria on building new rural areas, such as
having standard water supply and sewer systems," Tuan said.
The government has
supported relocating households with VND10 million (US$476) in cash and
220-350 sq m of land to build homes in the new resettlement areas.
However, local
authorities faced many difficulties in mobilising local households to move, Tuan
admitted.
"Several
households have refused to relocate as the new resettlement areas are far
away from their fields and not convenient for cultivation. Moreover, the area
of 220-350 square metres is not big enough for them to breed livestock,"
he said.
Local authorities
also lacked money to extend land area in the resettlement areas and to invest
in helping residents change their professions, he noted.
Tuan said they
would continue to inform and persuade local residents of landslide-threatened
areas to move. If necessary, they would be forced to do so to ensure the
safety of lives and property, he added.
Power
sector needs recharge
Experts called for
improving competitiveness to develop the country's power market at a seminar
organised last week in Ha Noi by the Viet Nam Energy Association.
While the power
generation market is fairly competitive, State-owned Electricity of Viet Nam
remains the sole distributor, and demanded a rise in prices to offset rising
costs.
The association's
chairman, Tran Viet Ngai, accepted the need to increase electricity prices
but said it should be based on market forces and that the Government should
amend the laws and eliminate the monopoly in the sector.
"If the market
is determined top-down like now, it cannot operate healthily," he said.
Other experts said
that only when consumers are able to choose the seller would there be a truly
competitive market.
A plan drafted by
the Ministry of Industry and Trade envisages
"We began to
create a competitive system for the power market since 2005 but it will be
finished only in 2023," said Nguyen Minh Due from Ha Noi Polytechnique
University.
"It is too
long a period and will have a bad impact since a monopoly still exists and
causes great losses to the electricity sector and the economy."
Ngai said that
after 10 years of having a competitive power generation market, the country
is no closer to meeting the requirements of true competitiveness, namely
effectiveness, fairness, and healthy competition.
EVN remains the
largest power producer.
Ngai pointed out
that while Article 19 of the Power Law stipulates the setting up of an
independent electricity regulatory agency, nothing has been done about it
yet.
Many delegates said
the Government should create a power ministry to help develop with a master
plan, development, policy making, and restructuring and equitising the
industry.
Duong Quang Thanh,
deputy general director of EVN, protested about the fact that the
competitiveness policy is only applicable to the power generation market and
not to inputs like coal and gas, whose prices are not based on market demand.
Dinh The Phuc
deputy head of the Ministry of Industry and Trade's Power Regulation
Department, agreed, saying that coal prices for thermal electricity plants
had been increased sharply, causing the cost of power production to rise from
VND846 per kWh to VND1,168 in the last two years.
With the ASEAN
Economic Community just around the corner,
Speaking at a
conference in
Bilateral trade
revenue reached US$9.4 billion last year, a year-on-year increase of 3.6 per
cent.
"I am happy to
note that in 2013
Regarding investment,
Meanwhile,
Vietnamese investors have invested in many projects in
The two countries
have set a target to raise bilateral trade to $15 billion by 2020, she said,
adding that, besides boosting investment and trade ties, "one area that
Jaruwan Suwannasat
of the Thailand Convention and Exhibition Bureau (TCEB) said more and more
Vietnamese businesses had come to visit trade shows in
Besides focusing on
raising the quality of trade shows to attract more foreign visitors,
including
About 3,488
Vietnamese visitors visited exhibitions in
VN must
accelerate ODA disbursement
More than US$20.9
billion of Official Development Assistance (ODA) has not yet been disbursed,
according to statistics released at a conference held on Saturday by the
National Steering Committee for ODA and Preferential Loans.
The meeting was
chaired by Deputy Prime Minister Hoang Trung Hai, who is also head of the
committee. According to the committee, around $8 billion of the funding must
be disbursed for projects and programmes scheduled for completion in 2014.
According to the
online newspaper VnExpress, the total amount of ODA disbursed in 2013 reached
US$5.14 billion, 23 per cent higher than the previous year.
However, many
obstacles continue to affect the disbursement of ODA, including important
policy differences on compensation, land clearance and resettlement between
Other difficulties
include changes in zoning at the local level and a lack of counter capital
due to limited state and provincial budgets.
In light of delays
in ODA disbursement, Deputy PM Hai instructed all agencies and ministries to
reassess projects that were not meeting specific deadlines.
Deputy Minister of
Planning and Invesment Nguyen Chi Dung added to the call, saying ODA
management and policies needed to be amended, while legal documents related
to construction, investment, bidding and public investment needed to be
revised with important additions.
Work is also needed
to review the implementation of ODA projects and tackle the shortcomings of
complex projects, he said, adding that extra support was needed to help
project owners overcome difficulties.
The Ministry of
Planning and Investment also called for oversight to ensure technical
standards were being met and projects with subcontractors not meeting
requirements were being put on hold.
Dung also called
for increased co-ordination between the Committee and the six development
banks (Asia Development Bank, World Bank, JICA, Korea Eximbank, KfW-Germany
and AFD-France), with a meeting every three months to review the progress of
ODA-funded projects and identify those falling behind schedule.
Deputy Minister of
Transport Nguyen Ngoc Dong said the biggest obstacle had been land clearance.
Because of this reason, the Ministry of Transport had not been able to
implement 39 projects with a total investment fund of $17.7 billion, with
$15.6 billion coming from ODA.
The conference was
held as
New
electricity grid ensures stable supply
The 500kV
electricity grid from Pleiku – My Phuoc – Cau Bong is expected to be
operational by the end of April, providing a stable electricity supply for
southern provinces.
More than 400
workers and engineers of the No 1 Electricity Construction Joint Stock
company are finishing the final work on the grid located in Ben Cat District,
"We have built
69 km of the grid in the southern provinces of Binh Phuoc and Binh Duong
through challenging terrain in mountainous areas. We have had difficulties in
ground clearance and all our human resources have been mobilised to work
through noon until sunset," Dang Van Nghia, deputy general director of
the company, told the Sai Gon Giai Phong (Liberated Sai Gon) newspaper.
The 427km project,
starting from Pleiku in the Central Highlands
The project was
carried out by the Viet Nam Electricity Corporation's National Power
Transmission company and managed by the Central Power Construction Management
Unit.
"Currently, 95
per cent of work has been completed. The final ground clearance will be done
on April 10 to make sure everything is finished on April 30," Nguyen Van
Tuan of the management unit said.
In Cu Chi District
in
"At present,
Cu Chi district has 43 projects that require ground clearance. The 500 kV is
one of the most important three national projects. We will meet directly and
try to solve and explain everything for those who have to move," said Le
Minh Tan, chairman of the Cu Chi People's Committee.
According to
figures, southern provinces will save at least VND1.2 trillion (US$56
million) on oil to run thermoelectric supply with a capacity of 400 million
kWh.
Foreign
retailers seek looser rules
Foreign business
associations have urged the Government to loosen and make more transparent
the economic needs test (ENT) that foreign retailers have to pass to
establish their second and subsequent outlets.
With a population
of nearly 90 million, rapid economic growth, and a youthful population eager
to keep up with the latest trends, Viet Nam is a potential gold mine for
retailers, Hong Sun, secretary general of the Korea Chamber of Business in
Viet Nam, told a consultation and dialogue held with businesses on ENT
criteria in HCM City last Friday.
"But foreign
distribution companies have not been able to fully penetrate the market due
to the ENT process – an effective tool the Viet Nam Government has used to
control the development of foreign distribution networks in Viet Nam,"
he said.
During the ENT
process, the licensing authority examines the suitability of the retail
outlet in an area based on factors like population density, number of
existing retail outlets there, market stability, and local zoning plans.
"With ENT, the
licensing authorities in
But the Ministry of
Industry and Trade last year issued a circular to relax conditions, allowing
an ENT exemption for foreign retailers establishing an outlet of 500 sq.m or
less in an approved area with complete infrastructure.
Csaba Bundik,
executive director of EuroCham Viet
The ENT is vaguely
defined and there is no nation-wide implementing legislation to clarify the
ENT criteria, resulting in unpredictable, discretionary, and varied
interpretation by different local authorities, he said.
He called for a
clear definition and criteria for ENT, adding that the Ministry of Industry
and Trade and other relevant ministries need to provide clear guidance for
investors and licensing agencies and to ensure that the criteria are applied
consistently by local authorities.
Vo Van Quyen,
director general of the Domestic Market Department, said: "Because of
the very poor starting point for its retail sector, the country obtained a
very important agreement from WTO members on the application of the ENT in
relation to establishment of a retail sale point which is not the first
one."
Distribution is a
highly regulated sector for foreign investors, and this was the premise based
on which the country opened its doors to them, he explained.
Authorities
collected feedback from involved parties like foreign direct investment retailers
and regulating organisations to draft ENT regulations to ensure transparency,
he said.
But the
implementation of the regulations is inconsistent, he admitted.
He promised that
efforts would be made to improve the situation and smoothen things for
foreign retailers.
Dinh Thi My Loan,
chairwoman of the Viet Nam Retailers Association, said: "In reality,
"The ENT is
not at all a barrier for foreign investors to enter
The more than 700
supermarket and megamarket outlets and over 100 shopping malls in the country
only account for 25 per cent of the distribution in Viet Nam, meaning there
is plenty of opportunity left for foreign investors, she said.
Hong Sun said:
"A more wide open market will attract more foreign investors to the
distribution sector in
But foreign
investors are not willing to make a substantial investment to open one retail
outlet without some level of confidence that they would be permitted to open
additional outlets in the future, he said.
Number of
firms set up surges in March
The number of firms
established in March and their total capital almost doubled from the previous
month, according to figures from the Department of Planning and Investment.
There were 7,487
new companies who invested a total of more than VND35 trillion (US$1.66
billion).
In the first
quarter as a whole the number of firms that were incorporated and the number
that closed down were comparable, though the former increased by 16.9 per
cent year-on-year, almost twice the latter figure.
But in Cuu Long (
Le Xuan Nghia,
director of the Business Development Institute, the figures reflect the
churning going on in the economy. Sectors like services, processing, and
manufacturing are attracting plenty of investment while construction and
financial and insurance services have declined, Tien phong newspaper quoted
him as saying.
He predicted this
process would continue.
Vu Tien Loc,
chairman of the Viet Nam Chamber of Commerce and Industry, said many local
firms have become mature and begun to focus on long-term effectiveness and
are pulling out of unstable sectors.
Le Duy Binh,
director of the Ha Noi-based Economica Company, alluding to the continuing
rise in the number of firms being dissolved, said many small firms like his
own have little access to government incentives.
Binh recommended
the government increase Consumer Price Index (CPI) to improve purchasing
power. The Government should also ensure social security by reducing value-added
tax, and improving social insurance.
Phan Duc Hieu of
the Central Institute for Economic Management (CIEM) said all related
agencies should work closely together to assist businesses.
"To help
enterprises overcome challenges, incentives should be more specific and
consistent," he said.
HCM City
imports, exports tumble in first quarter
Its exports were
down to US$6.33 billion, Vo Si, deputy director of the city's Department of
Planning and Investment, said, attributing it to a fall of 12.8 per cent in
crude oil exports and of 11.3 per cent in industrial products like apparel,
computers, and electronics and components, gemstones, and precious metals.
He said the
increase in local demand for crude oil for refining has led to a decrease in
exports in recent years.
Exports of gold and
gemstone are also in a downtrend since they are now under Government control,
he said.
The rising trend
among foreign companies to shift from production to retailing and
distribution also caused exports to slide, he added.
Tran Anh Tuan,
chief of general research at the HCM City Institute for Development Studies,
said exports of computers and electronic components had fallen due to their
low competiveness in international markets since they are made locally under
outsourcing contracts with foreign companies.
Imports fell to
$5.4 billion, with those of key products like computers and electronics
plunging by 16 per cent, dairy products by 15.5 per cent, steel by 12.4 per
cent and others like apparel, fibre, and pharmaceuticals by smaller rates.
Steelmaker
sales could notch new $1b record
Hoa Phat Group (HPG),
The information was
released by the group's chairman, Tran Dinh Long, at its annual shareholders'
meeting yesterday in Ha Noi.
Long said
first-quarter revenue had reached VND6 trillion ($284.4 million) with a
profit of VND800 billion ($37.9 million).
"Based on
these positive results, HPG is confident that it can hit its business targets
this year," Long said.
Hoa Phat Group is
among the few companies that performed well last year, despite the economic
slowdown.
The group reported
a total revenue of VND19.2 trillion ($910 million) and a net consolidated
profit of VND2.01 trillion ($95.3 million) in 2013, exceeding its yearly
targets by 4 per cent and 68 per cent, respectively.
Steel production
continued to play the leading role, contributing 78.7 per cent of total
revenue and nearly 83 per cent of the group's profits, thanks to the Hoa Phat
Integrated Steel Complex which was put into operation in October last year.
In 2013, its
construction steel output reached 727,000 tonnes, an increase of 17 per cent
compared to 2012, while sales grew 699,000 tonnes, up 14 per cent. From 2014
onward, combining the full capacity of the complex of 850.000 tonnes per
year, the group's total construction steel production capacity will reach
1.15 million tonnes per year.
Regarding its
liability, Long said HPG's borrowing was only VND5-7 trillion ($237-332
million), while its equity reached nearly VND10 trillion ($473.9 million).
HPG also deposited nearly VND2 trillion ($94.8 million) in local banks last
year.
HPG has set very
ambitious targets for this year. The group plans to raise its charter capital
to nearly VND4.19 trillion ($199.5 million), while the revenue target is set
at VND23 trillion ($1.1 billion) and the post-tax profit goal is VND2.2
trillion ($104.3 million).
The projected
dividend rate has increased from 20 per cent to 30 per cent, of which 15 per
cent will be paid in cash and the remainder will be offered in shares.
HPG plans to use
VND41 billion ($1.9 million), about 5 per cent of the profit in excess of
last year's target, to reward the company's managers.
Long said it was a
moderate rate given the group's impressive business results.
Deputy PM
praises committee
Deputy Prime
Minister Vu Van Ninh yesterday applauded the effort of the Steering Committee
for Enterprise Renovation and Development at a meeting in Ha Noi, saying that
the committee had fulfilled its assigned tasks for 2013 and early 2014.
Speaking at the
meeting, held to assess the committee's performance in the past year and
implement its tasks this year, Ninh said the committee had carried out
effective co-operation with relevant agencies and made appropriate proposals
to the Government.
In 2013 and 2014,
the committee reported, it advised the Prime Minister properly on carrying
out reforms of State-owned enterprises (SOEs) in order to improve their
efficiency.
The committee
submitted 24 legal documents to the Prime Minister, including important ones
on SOE equitisation, dissolution and re-organisation.
In 2013, the
Government re-arranged 101 SOEs and equitised six.
The Steering
Committee also co-ordinated closely with the Steering Committee to
restructure the State-owned shipbuilder Viet Nam Shipbuilding Industry
Corporation (Vinashin), which ran up debts of over US$4.2 billion.
The Deputy Prime
Minister asked the Ministry of Labour, Invalids and Social Affairs to examine
the management of salaries and bonuses paid in State-owned groups. The
Ministry of Finance, meanwhile, was asked to intensify inspections of
State-owned enterprises to make sure they conformed to financial regulations
and the Ministry of Agriculture and Rural Development was asked to continue
researching the restructuring of agricultural and forestry enterprises.
Deputy Prime
Minister Ninh asked the Ministry of Construction and the Ministry of
Information and Telecommunications to submit their codes of conduct.
Buyers
return to Ha Noi market
Property
transactions in Ha Noi had started to pick up since the beginning of the
year, indicating a change of direction for the languishing market, according
to the Ministry of Construction.
According to the
Xay dung (Construction) newspaper, 1,290 transactions were successfully
completed in the first two months of the year, twice as many as the same
period last year. They included 820 social housing apartments and 470
commercial apartments.
The successful
transactions were mostly for completed or nearly-completed apartments priced
of VND15-22 million (US$714-1,000) per square metre.
A number of
commercial developments located outside the city centre also attracted buyers
with prices from VND13-16 million per square metre and guarantees the
projects would be completed on time and handed over as scheduled. They sold
100 apartments in the first two months of this year.
The increasing
number of transactions was due to the efforts made by investors and agents to
restructure developments and adjust prices, according to the ministry.
This month, new
developments have also been released onto the market and are proving popular,
including Starcity Le Van Luong,
Ha Noi's property
market expects the recovery to continue in the second and third quarters when
developments are launched, such as Mipec Riverside, Berriver Long Bien,
Nguyen Manh Ha,
head of the House Management and Real Estate Market Department under the
Ministry of Construction, said the capital's property market had started to
recover in early in 2013 as the inventory started to fall.
From January 1 to
February 25 this year, the inventory fell by 2.8 per cent against December
2013 and 23 per cent against the same period last year. Empty properties were
mainly located in areas far from the city centre without technical or social
infrastructure, he said.
Many experts have
noted that the interest rate cuts will lead to depositors moving their
investments from savings to other assets with higher profits. While many
money holders were looking for lucrative investment choices, the recovery in the
real estate market has seemingly grabbed their attention.
Deputy Governor of
the State Bank of Viet Nam Nguyen Dong Tien remarked at a recent conference
that besides the stock market, the real estate market will majorly benefit
from the interest rate cuts in an ideal market.
Experts
urge VN firms to build online profiles
Just 20 per cent of
Vietnamese companies have registered international and local internet domain
names, and the lack of web-based exposure could hurt other firms in the
future, experts said at a seminar yesterday.
The seminar, held
in the northern coastal city of
According to VNNIC,
only 20 per cent of 500,000 companies in
VNNIC deputy
director Tran Minh Tan said internet domain plays an important role in
business operations now as it helps companies advertise themselves in the
cyberworld.
"Nowadays, the
success and fall of a company can partly be due to the way they do business
in the internet world. I think Vietnamese businesses should consider the
Internet an important part of their operation." Tan said.
The centre informed
the seminar that over 90,000 new ".vn" domains were activated last
year, bringing the total number of national domain names to 263,900.
The increase has
helped the country keep its number one position in
Among these,
domains with Vietnamese names accounted for 127,166, said the centre, which
functions under the Ministry of Information and Communications.
The VNNIC said it
earned revenues of VND143 billion (US$6.8 million) from domain activation and
subscription fees in 2013, exceeding its annual target by 15 per cent.
According to the
Ministry of Information and Communications, internet service providers (ISPs)
in
Between 2009 and
2013, the number of internet users increased by 170 per cent, and broadband
availability climbed 7.5 times compared with 2005-09.
The number of
internet users is expected to reach 60 million by 2018, and total revenue
from internet services and content is expected to climb to VND100 trillion
($4.7 billion).
Source: VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
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Thứ Ba, 1 tháng 4, 2014
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