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BUSINESS
IN BRIEF 3/4
Diesel
prices to fall, petrol stays unchanged
The ministries of
Finance and Industry and Trade have asked the local petrol distributors to
reduce the prices of diesel and mazut.
A press release
said that the price cuts would be between VND121 and 239, or between US$0.005
and $0.011, per litre from yesterday.
The Viet Nam
National Petroleum Group, which has the largest share of the diesel market,
now sells the fuel at VND22,600, or $1.076, per litre, which is VND240 lower
that the previous price. Kerosene now sells at VND22,480, or $1.070. A
kilogram of mazut is selling at VND18,760, or $0.89, which is VND130, or
$0.006, lower than the previous price.
Meanwhile, the
petrol prices remain unchanged. On April 1 morning, Ron 92 was being sold at
VND24,690, or $1.175, and Ron 95 at VND25,190, or $1.199. According to the
press release, wholesale petrol enterprises are being allowed to add VND150,
or $0.007, to their current profit of VND150, per litre.
The two ministries
said the decision to cut fuel prices was based on the global prices and is in
accordance with the principles defined in Decree 84 on petrol and oil
trading.
Ha Noi
exhibition spotlights northern supporting industry
Advanced precision
engineering and manufacturing technologies from the
Organisers said
that the 3rd International Precision Engineering, Machine Tools and Metalworking
Exhibition (MTA Ha Noi 2014) is a "leading event" that serves the
supporting industry in the north of
They said that at
this year's event, exhibitors from the previous two exhibitions have expanded
their pavilions to showcase more solutions that will help increase
productivity and spur development of supporting industries.
MTA Ha Noi 2014 has
the latest cutting, moulding and tooling systems, metrology machines and hand
tools, among many other engineering advances.
William Lim,
Project Director for MTA, said the three-day event was of great value because
it would help businesses in the region see and apply latest production
technologies.
Oshima Masayu,
director general of Japanese firm Kamogawa, said his company had been working
in
His company saw MTA
Ha Noi was an ideal venue to access the northern
The event includes
seminars on several issues pertinent to support industries as well as a
welding competition, organisers said.
Automated
customs system launched
A new automated
customs system which is able to deal with declarations within three seconds
became operational on April 1, according to the Customs of Viet Nam under the
Ministry of Finance.
Customs departments
in Ha Noi and Hai Phong City, began applying the Viet Nam Automated Cargo and
Port Consolidated System/Viet Nam Customs Information System (VNACCS/VCIS),
with the customs agency in HCM City due to adopt the system from May 15.
Deputy Director
General of the Customs of Viet Nam Vu Ngoc Anh said via VNACCS/VCIS that
businesses could make customs declarations at anytime and from any location
to save time and paper.
The system aims to
facilitate trade and investment activities, improve
After a three-month
trial that kicked off in November last year, up to 18,196 enterprises have
registered to join the system, and 10,154 have run it on a trial basis.
VNACCS/VCIS, worth
nearly 2.7 billion JPY (US$21.2 million) was funded by the Japanese
Government and is scheduled to be rolled out across
Central
bank adds to forex reserves
The State Bank of
Viet Nam (SBV) purchased roughly US$7.7 billion worth of foreign currency for
the national foreign exchange reserve in the first quarter this year thanks
to stable foreign exchange rates, SBV Governor Nguyen Van Binh said.
The purchase had
enriched the national forex reserve, which was reported to be more than $30
billion at the end of last year, and would help stabilise the forex rate, he
said.
However, Binh noted
that increasing foreign exchange reserves put a large amount of pressure on
the Vietnamese dong, because the goal was to inject money without causing
inflation and foreign exchange rate fluctuations.
The exchange rate
between the Vietnamese dong and the US dollar quoted at local commercial
banks yesterday was stable at VND21,075-21,085 and VND21,115-21,125 to the
dollar for bid and ask, respectively.
The interbank rate
quoted at SBV transaction offices has remained unchanged at VND21,036 to the
dollar from late June last year.
Binh said that in
the first quarter of this year, monetary and gold markets were also stable.
He said that the
monetary market had shown positive signs after nearly a month of interest
rate cuts. Although the deposit interest rate for 1-6 month terms was cut to
6 per cent from 7 per cent last month, bank deposits had risen sharply.
Lending rates for corresponding terms were also cut by 0.5-1 per cent, he
said.
Binh added that
lending in March was up 1 per cent month on month.
With increased
lending in March, Binh said he was unconcerned about credit growth this year,
adding that he expected the 12-14 per cent annual credit growth target to be
achieved.
Exports to
Telephone handsets
and components topped the list of exported products to
Other exports with
high growth included pepper (194.95%), steel (153.56%), tools (126.57%),
means of transport and tools (83.59%), electronics and components (79.17%),
seafood (62.81%) and wood and timber products (46.43%).
The nation is
considered a gateway for Vietnamese products to further penetrate the
European, Middle Eastern and North African markets.
Australian
wool producers market products in Vietnam
The Australian Wool
Innovation (AWI) is introducing Vietnamese businesses to its wool products to
expand its exports in the Southeast Asian nation.
AWI is also
building up contact with Vietnamese businesses to transfer their modern wool
and yarn processing technology.
The move helps
AWI general manager
Jimmy Jackson revealed AWI is discussing the possibility of establishing a
wool weaving factory in
Vietnamese
producers are currently importing yarn from
US lowers
Tra fish anti-dumping duties
The US Department
of Commerce has announced its final decision on the ninth results of its
administrative review (POR9) for anti-dumping duties on Tra fish fillets
imported from
The Vietnam
Association of Seafood Exporters and Producers (VASEP) reported under the
March 31 decision, Vietnamese frozen Tra fish filets exported to the
Accordingly, the
anti-dumping duties on products of two mandatory reviewed companies, Vinh
Hoan and Hung Vuong, are US$0.03 per kilo and US$1.2 per liko, respectively,
and for other companies, US$0.42 per kilo.
Truong Dinh Hoe,
VASEP General Secretary, said the new anti-dumping tariffs were much lower
than levels announced in the preliminary POR9 issued last September, when the
tax imposed on products from Hung Vuong Corporation and Vinh Hoan Corporation
was US$2.15 and US$0.42 a kilo, respectively, while other exporters had taxes
of US$0.99 a kilo.
Hoe said that
after receiving the preliminary decision of POR9, the association and
enterprises had worked to protect them against troublesome tariffs. This brought
encouraging results.
However, the new
tariffs remained high, Hoe said, adding that
In addition,
choosing
Indonesia is not
“economically comparable” to Vietnam and does not share similarities with
Vietnam in breeding standards and input costs, thus, choosing it as the sole
benchmark country in calculating the anti-dumping rate led to high
anti-dumping tax rates, he said.
He suggested the
DOC reconsider its investigation involved in imposing anti-dumping duties on
Vietnamese Tra fish exported to the
With the new
anti-dumping tax rates, exports of Vietnamese Tra fish to the
Tra fish export
revenue was worth US$275 million in the first two months of the year, a
year-on-year increase of 8.5%, with the US and EU being two key importers,
said To Thi Tuong Lan, VASEP Deputy General Secretary.
The country is
expected to earn around US$1.8 billion from Tra fish exports this year,
similar to last year’s figure, she said.
Leading
mechanical exhibition underway in Hanoi
Advanced precision
engineering and manufacturing technologies from the
The 3rd
International Precision Engineering, Machine Tools and Metalworking Exhibition
(MTA Hanoi 2014) is deemed as a leading event of its kind that serves support
industries in the north of Vietnam and its surrounding regions.
At this year’s
event, exhibitors from the previous two fairs expanded their pavilions to
showcase more solutions that will help increase productivity and spur the
development of support industries.
MTA Hanoi 2014
features manufacturing solutions such as cutting, moulding and tooling
systems, metrology machines and hand tools, among many others.
The three-day event
will also include seminars giving participants in-depth views into the
industry and a welding competition.
Industry
minister grilled by NA deputies
Minister of
Industry and Trade Vu Huy Hoang on April 1 engaged in a Q & A session
with the National Assembly Standing Committee on issues relating to his
ministry’s State management responsibility.
Among those were
measures to raise the efficiency and effectiveness of market management as
well as the responsibility for the State management of electricity and
minerals.
Admitting the fact
that foreign traders have bought agricultural products in
Under the law,
foreign traders with no official representatives in
The ministry has
instructed market management forces nationwide to prevent and settle this
problem, he said, adding that since the beginning of this year, the
phenomenon has not been seen in many localities.
Hoang attributed
this situation to weak popularisation work and ineffective inter-sectoral
coordination.
In the coming time,
the ministry will continue to improve the enforcement capacity of competent
forces, especially market watchdogs, in order to promptly prevent the illegal
activity, he said.
Regarding the State
management of minerals, he said that his ministry was responsible for the
illegal export of minerals, which caused losses to the State budget and
natural resource depletion.
The Ministry of Industry
and Trade will collaborate more closely with other ministries and localities,
particularly those in mountainous areas, in the management of businesses
involved in extracting minerals.
Responding to NA
deputies’ questions on the shortage of power for agro-seafood production in
the Mekong Delta region, Minister Hoang said the rapid development of
aquaculture areas in the region has resulted in a power supply-demand
imbalance.
The power sector
will do its best to meet the demand for agricultural production, he noted,
asking localities to better their planning work to ensure sufficient power
supply.
He suggested the NA
allocate budget for a programme to bring electricity to rural areas.
Also at the
session, which was broadcast live, the minister reported to the NA Standing
Committee the outcomes of the “Vietnamese people use Vietnamese goods”
programme.
Ministry of
Planning and Investment statistics show Russian investments are mostly
focused on processing and manufacturing with 34 projects totaling US$1.1
billion.
The mining industry
has attracted 7 projects valued at US$581.2 million, and the real estate
industry has lured 3 projects worth US$72.7 million.
Russian businesses
have also invested in construction, wholesales, retails, repairs,
agriculture, forestry and seafood processing.
Meanwhile,
The Hanoi-Moscow
Commercial Centre Company, with registered capital of US$190 million, is
offering entertainment, hotel and office leasing services in
The Ministry of
Foreign Affairs and International Organisation of La Francophonie (OIF) will
jointly host a forum on economic cooperation forum in
The event will
bring together 150 Vietnamese and foreign delegates, with keynote speakers
from the Ministry of Agriculture and Rural Development, the Ministry of
Industry and Trade, the Vietnam Chamber of Commerce and Industry, OIF,
economic cooperation organisations, businesses and development partners
The forum aims to
expand the Francophonie business network by creating a dialogue to stimulate
economic exchanges and develop key potential cooperative relationships for
the benefit of the economic development.
Topics at the forum
will address the Francophonie comprehensive economic strategy for the
Asia-Pacific region and its positive impact, along with practical
orientations towards sustainable economic growth.
Labour
demand outstrips supply
There was a
significant imbalance of workers with appropriate qualifications to meet
demand for business across a number of sectors in the first quarter of the
year, VietnamWorks reported on April 1.
Employment demand
grew by 11% in the first three months compared to the same period of last
year, while the labour force expanded only 8%, the report said.
VietnamWorks CEO
Jonah Levey said those who are lacking in academic credentials or sufficient
work experience are entering fierce competition to secure employment.
Meanwhile,
employment recruiters are struggling to find qualified job applicants, he
said.
The situation
remains relatively unchanged from 2013, demonstrating that despite steady
growth in quantity of jobs, the phenomenon of lack of quality in the labour
market continues to plague the economy.
Underqualified job
candidates are in a tough position searching for employment. For instance, in
the first quarter of this year, for every “entry level” job (the lowest level
in businesses) there were 101 candidates applying for the position, according
to VietnamWorks.
The competition is
triple or five times greater than that to enter a reputable university in
The fields with the
highest recruitment demands include import-export, information technology,
business administration, industrial production, customer service, sales and
marketing and construction.
Import-export tops
the list with demand rising 45% against the same period last year.
In terms of labour
force supply, the fields experiencing the greatest need for qualified
candidates span accounting, production, IT, software, import-export, design
and architecture.
Particularly, demand
for accounting surged sharply while its supply dropped significantly.
Five localities
with the highest demand for employees are
Some emerging
localities which have impressive growth in labour demand are Ba Ria-Vung Tau,
Ha
Among 10 localities
seeing the highest number of job applications,
Manufacturing orders pick up
Growth in the
Vietnamese manufacturing sector regained momentum at the end of the first
quarter with both output and new orders increasing at faster rates than seen
in the previous month, and new export orders returned to growth.
According to an
HSBC monthly Purchasing Managers Index (PMI) report released on Tuesday ,
employment decreased for the first time since June 2013.
Meanwhile, the rate
of cost inflation slowed and firms lowered their selling prices marginally.
The headline
seasonally-adjusted – a composite indicator designed to provide a
single-figure snapshot of operating conditions in the manufacturing economy –
posted 51.3 in March to signal a modest improvement in overall business
conditions.
The reading was up
slightly from 51.0 in February and pointed to a seventh consecutive monthly
improvement in operating conditions.
Solid new order
growth was recorded in March, with the rate of expansion quickening to the
strongest in five months. Panelists reported a general improvement in demand
across the sector.
New export orders
also increased in March, following a marginal reduction in the previous
month.
Growth of new
orders led manufacturing firms to increase production for the sixth month
running.
Moreover, the rate
of expansion quickened from that seen in the previous month.
The rise in
production helped firms to make inroads into backlogs of work during March.
Outstanding
business in the sector fell for the fifth month running, albeit at the
slowest pace in this sequence.
Increased output
requirements led firms to raise their purchasing activity.
Input buying grew
for the seventh successive month and at a solid pace which was only slightly
weaker than the series record seen in January.
Despite this,
stocks of purchases continued to fall marginally as inputs were consumed in
the production process.
Stocks of finished
goods also decreased, although the rate of depletion slowed sharply as a
number of panelists reported that finished products had been held in stock rather
than delivered to customers.
Employment at
Vietnamese manufacturing firms decreased in March, ending a seven-month
sequence of job creation.
Panelists indicated
that the main reason for the fall in staffing levels was that employees had
left in order to find jobs elsewhere.
The rate of input
cost inflation slowed for the third consecutive month.
Although shortages
of some raw materials had led suppliers to raise prices, falls in commodity
prices in world markets had reportedly been behind slowing inflation.
In spite of the
continued rise in input costs, manufacturers lowered their output prices
marginally amid reports of strong competitive pressures.
Suppliers' delivery
times were broadly unchanged. Where an improvement in vendor performance was recorded,
this was linked to requests from firms for faster deliveries.
On the other hand,
material shortages had led to delays in some cases.
Commenting on the
Vietnam Manufacturing PMI survey, Trinh Nguyen, Asia Economist at HSBC, said:
"The decline of employment and input cost inflation reflect the
bottlenecks of the economy: a mismatch between skilled labour demand and
skilled labour supply and sluggish pace of financial sector reform, which has
dampened consumer demand, dragging down price pressures."
Viet Nam-Brazil trade to reach $3b in 2014
The two-way trade
between
Of the total,
Experts have
forecast that the bilateral trade will likely reach $3 billion by the year
end if further trade promotion programmes and business conferences in both
countries were conducted.
Dong Nai
ranks third in Q1 industrial production
The Index of
Industrial Production (IIP) in the southern province of Dong Nai increased by
7.1 per cent in the first quarter of this year, ranking third after Hai Phong
(11.3 per cent) and Da Nang (10.5 per cent).
According to the
provincial Department of Industry and Trade, the IIP in March was up 9.3 per
cent from the previous month and 4.5 per cent against the same period last
year.
In the first three
months, nine out of 16 sectors enjoyed significant growth, including chemical
production (26.7 per cent) and leather and associated products (22.2 per
cent).
Meanwhile, declines
were seen in food processing, the production of tobacco, paper, rubber and
plastic products.
Le Van Danh, the
department's director, said that to maintain growth, the province would focus
on solving administrative difficulties, increasing the sale of inventories
and improving export policies.
It would also
provide businesses with information about domestic and foreign markets in
order to boost exports.
The department also
plans to invite enterprises to participate in several fairs outside the
province, including the 2014 Lifestyle Fair in April and the International
Vietbuild Exhibition in June in
ADB
forecasts slight growth in Vietnam's GDP
The Asian
Development Bank today forecast that
The bank said that
this follows the progress made in addressing the weaknesses of the domestic
banking sector, accompanied by the economic recovery in the
In its Asian
Development Outlook 2014 report released in
Dominic Mellor,
country economist for ADB Vietnam, said the new Public Private Partnership
decree needs to put greater emphasis on competition, which means projects
must be awarded through competitive bidding and should follow standard
international practices.
The outlook also
forecasts that the growth patterns in
AWI
considers setting up wool factory in Vietnam
Australian Wool
Innovation (AWI) has stated that it is in discussions with three Vietnamese
companies and six foreign firms about the possibility of establishing a wool
weaving factory in the Southeast Asian country.
Vietnamese
producers are now importing wool yarn from
AWI is making
efforts to intensify connections with Vietnamese businesses to help them
access its natural wool products as well as
It considers this
move as a solution to reduce
Binh Duong works to remain destination for FDI
The southern
According to the
provincial Department of Planning and Investment, since the beginning of
2014, Binh Duong has received over 726 million USD in FDI, more than 70
percent of its annual target and 40 percent of
Of the figure, more
than 533 million USD was injected into 28 existing projects.
Director of the
department Mai Hung Dung said the flow of more capital into existing projects
indicates that the registered money was disbursed effectively.
There are now 2,276
FDI projects in Binh Duong with a total investment of some 20 billion USD. In
2013, the FDI sector contributed about 75 percent of the province’s
industrial production value and 80 percent of Binh Duong’s 16 billion USD of
export turnover.
Dung said the
accomplishment was thanks to regular dialogues between authorities and the
business circle to remove all obstacles, better the administrative process,
and enhance mutual trust.
Industrial parks
that meet investors’ various demands and the newly opened administration
centre are also said to be magnets for investment. Additionally, another
investment attraction channel is through businesses running in the province
that have updated their partners about local conditions.
From now to 2030,
Binh Duong will build industrial parks covering thousands of hectares. It
will also step up training a quality workforce to satisfy the demand of
technology projects.
With 216 projects
totalling over 4.6 billion USD,
The provincial
People’s Committee considered Japanese investors as trustworthy partners,
whose projects suit Binh Duong’s preferences such as transport, technology
and electronics.
CEO of Japan’s
Saitama Agata Bank Suzuki Tsutomu attributed Vietnam’s favourable investment
environment to a stable political situation and an abundant and capable young
workforce, which have encouraged Japanese investors to come to Vietnam and
Binh Duong in particular.-
Measures
for central coastal seafood growth
A conference was
held on March 29 in the central coastal
With nine provinces
and cities, the region is endowed with a coastline of 1,400 km –making up
43.8 percent of the nation’s total shoreline, and extensive fishing grounds,
particularly Hoang Sa and Truong Sa.
Figures from 2012
show the region is home to 46,201 fishing boats and over 200,000 fishermen.
The area for aquatic cultivation was estimated at 33,778 ha, producing over
180,000 tonnes of produce worth 27 trillion VND (1.3 billion USD).
Attendees put forth
a number of solutions to develop the industry in a sustainable manner, such
as restructuring the sector by increasing added value, promoting the links
between fishermen and businesses, perfecting the fisheries infrastructure
system, and enhancing the quality of human resources.
The application of
new cutting-edge technology and bettering policies in the field are two of
the measures needed to realise the target, participants said.
Many scientists
have also proposed the Government enforces incentives linking high-class
tourism and aquatic development with protecting the national sovereignty over
seas and islands.
The conference is
part of the 2014 Seafood Festival which is underway in Phu Yen province
(March 27 - April 2).-
Local spending remains modest
Consumer spending
rose 5.1 per cent in the first quarter of this year reaching US$33.4 billion,
up 10 per cent on the same period last year, the General Statistics Office
(GSO) announced yesterday.
In March alone,
consumer spending reached $11 billion, rising 2 per cent on the previous
month.
However, not all
welcomed the news, with GSO economist Vu Manh Ha describing the 5.1 per cent
increase as a modest gain compared with the previous years. Consumer spending
was 5.0 per cent and 4.5 per cent recorded in the same period in 2012 and
2013 respectively.
Ha explained that a
low consumer price index (CPI) had contributed to the modest rise. In the
first quarter of 2014, CPI increased 4.65 per cent, while it rose to 16.4 per
cent in the first quarter of 2012 and to 6.64 per cent in the first quarter
of last year.
He also noted that
purchasing power in March had stayed low due to consumers reigning in
spending after the Lunar New Year shopping season. Spending had also slowed
with the pace of economic growth.
Meanwhile, many
businesses have maintained halts on production in response to low spending
and high inventories.
According to the
statistics from GSO, in the first quarter of this year, the number of
businesses stopping production had risen 10 per cent on the same period last
year, while the inventory index stood at 13 per cent.
Low consumer
spending is expected to continue for the next few months.
Domestic
wood exports surge in Q1 on track to annual target
The country's
exports of wood and wooden products in the first quarter surged by 20.1 per
cent against the same period last year to US$1.4 billion, according to the
Ministry of Agriculture and Rural Development (MARD).
In March alone,
wood and wooden product exports hit $490 million.
The US and China
were Viet Nam's largest wood and timber product importers in the first three
months of this year, accounting for 52.89 per cent of the industry's total
export value.
General secretary
of the Viet Nam Timber and Forest Product Association, Nguyen Ton Quyen, said
Quyen added that
the export target was feasible as local exporters had signed a significant
number of export contracts.
Bilateral and
multilateral agreements, including the European Forest Law Enforcement,
Governance and Trade (FLEGT) and Voluntary Partnership Agreement (VPA),
expected to be signed this year, would be a good opportunity for
Quyen added that
authorities should change current standards to fit new EU regulations.
Awareness of partners in the wood and timber industry remained low regarding
new trade deals, limiting opportunities provided by the VPA/FLEGT.
However, he noted
that if the TPP was signed in 2014, enterprises must be prepared to adapt to
large markets such as the
He explained if the
country bought wood outside the TPP block, wood products exported to TPP
countries would incur high taxes and strict legal supervision, but the tariff
rate would be zero if wood was bought from the TPP block, he said.
SBV
prohibits movement of undeclared gold
Vietnamese and
foreign individuals have been banned from carrying gold bars and gold raw
materials when leaving or entering
This was announced
in Circular No. 11/2014/TT-NHNN, issued by the State Bank of Viet Nam (SBV)
on March 28.
The circular allows
the carrying of gold jewellery and fine art made of gold provided the total
weight of these objects is not more than 300 grams (10.5 oz). In case
travellers bring more than the permitted amount, they must declare it to
customs officials.
The circular
further stated that this rule also applies to foreign individuals who are
permitted to reside in
According to the
circular, Vietnamese people living abroad can carry gold, including gold bars
and gold materials, ranging in weight from 300 grams (10.5 oz) to less than 1
kilogram (35.2 oz), and must declare it to the customs authorities. If the
weight of the gold is 1 kilogram or higher, the carriers must present a
license from the SBV.
Since May 2012, the
SBV has been the only gold importer in
Circular No. 11
replaces Decision No. 1165/2001/QD-NHNN on the carrying of gold across the
country's borders.
Transport
SOEs drive through successful IPOs
The success of the
initial public offerings (IPO) of the State-owned transport enterprises in Q1
is likely to send out positive signals on the long-waited equitisation.
Deputy Prime
Minister Vu Van Ninh said that the positive results would remove the hesitant
sentiment on the stock market.
From January to
March, five out of the nine State corporations under the Ministry of
Transport managed to successfully offer shares to the public.
The Transport
Engineering Design Inc sold all shares at VND21,848 each, twice the initial
price, generating VND56.8 billion, or US$2.7 million, for the State. The Viet
Nam Waterway Construction Corporation gained VND91 billion, or $4.3 million;
the Civil Engineering Construction Corporation 4 (Cienco 4) got VND226.5 billion,
or $10.7 million; Cienco 1 made VND162 billion, or $7.7 million; and the
Thang Long Construction Corporation made VND258.5 billion, or $12.2 million.
Four other
corporations under the ministry, however, failed to reach the target,
including Cienco 5 which sold only 13.4 per cent of the shares, Cienco 6
which sold 4 per cent, the Waterway Construction Corporation which sold 36.3
per cent and Vinamotor which sold 3 per cent of the shares.
The Ministry of
Transport is also speeding up the equitisation of units controlled by the
Viet Nam National Shipping Lines (Vinalines). The parent company of Vinalines
is expected to issue an IPO by Q1 2015.
None of the IPOs
issued by the four corporations under the Ministry of Construction succeeded.
Deputy Head of the
Steering Committee for Business Renovation and Development Pham Viet Muon
said the strategic investor participation did help to make some of the IPOs
successful. Those who failed didn't have any strategic investors.
According to
economic think-tank Vo Tri Thanh, one of the key things that the State-owned
enterprises need to do to attract strategic investors is to improve
information transparency and set up a committee for strict supervision of the
equitisation process.
Economists
suggested that the companies whose IPOs failed should shift to the joint
stock model so as to improve administration and supervision, which would help
their next IPO.
The Ministry of
Finance plans to submit new regulations to boost equitisation and the
withdrawal of State capital.
In a draft to amend
the Viet Nam Law on Enterprises 2005 on practices of the State-owned
enterprises (SOEs), the Ministry of Planning and Investment proposes to
regulate periodic and upon-request information disclosure at SOEs. This shows
a growing pressure to restructure this driver of the economy.
The Southeast Asian
economy plans to get a total of 432 SOEs equitised during the 2014-15 period,
or 216 enterprises per year. Viet Nam is well on its way to carrying out a full-scale
reform of the bloated state-owned enterprises. Between 1986 and 2013, the
number of state-owned enterprises fell from 12,000 to 1,284.
Market
recovery paves way for IPOs
The rapidly
recovering stock market has created opportunities for enterprises to consider
listing on exchanges.
The stock market is
appealing more to the investors with the VN-Index advancing nearly 20 per
cent, while the HNX-Index soaring 30 per cent in the first three months of
this year, coupled with the trading value reaching trillions of dong per
session.
Chairman of the
State Securities Commission Vu Bang remarked that the stock market will
continue to grow along with macroeconomic improvements.
The Government's
determination to restructure the stock market has also helped to attract both
foreign and domestic investors. He noted that there has been a rise in both
foreign direct and indirect investments into Viet Nam, thereby boosting the
stock market to show further growth.
In addition, the
draft regulation on increasing foreign stakes in listed enterprises was
submitted to the Prime Minister for review and will soon be issued. This will
bring opportunities for further development of the stock market and will help
the enterprises to get access to capital sources and improve their financial
condition.
According to Bui
Hoang Hai from the Securities Issuance Management Department, it was the
right time for public companies to consider listing to raise capital, given
the rapid market gains in the first quarter.
He urged the companies
to be well prepared for the procedure, as the opportunities could fly away,
adding that several companies still did not have a complete understanding of
the regulations. According to statistics, violations related to information
announcement by public companies accounted for about 20 per cent of the total
violations handled.
In September last
year, the Decree No. 108/2013/ND-CP was issued, which regulated that
companies must be listed on the exchange within a year of their initial
public offerings.
Support
industry expo takes place
Ha Noi Trade
Promotion Centre (HTPC) will co-operate with Thailand's Reed Tradex Co to
organise an exhibition on the support industry in the capital city from
August 27 to 29.
The event is
expected to help provide the Vietnamese industry with access to advanced
technology and industrial products in the global chain as well as to
management systems and designs so that it can follow new trends.
The Viet Nam
Manufacturing Expo 2014, which will see participation by 200 brands from 20
countries, will showcase manufacturing machinery and technologies, Reed
Tradex said in its latest press release.
"The expo will
also be a good opportunity for industrial part-making factory owners,
engineers, production managers and industrialists to source new solutions,
new parts, new suppliers, new partners and new knowledge to keep up or lead
the change that the promising future of the regional ASEAN Economic Community
will bring," it noted, adding that trade programmes and business
seminars in which Vietnamese companies can meet domestic and overseas
partners will be also included.
Source: VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
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Thứ Tư, 2 tháng 4, 2014
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