BUSINESS
IN BRIEF 29/5
Export
credit shows signs of growth
Though banking
sector credit grew slowly in the early months of this year, executives at
many banks have said that production-business activities related to import
and export have gradually rebounded.
Deputy Director of
the State Bank of Vietnam (SBV)’s
By the end of April
2014, outstanding loans in dollars at city-based banks jumped 8.52 per cent
against the end of last year, while those in dong slid slightly, by 0.09 per
cent.
This reflects a
rebound in production and business activities related to import-export.
Foreign-invested
enterprises based in the city’s industrial parks and export processing zones
saw 7.5 per cent growth in their total outstanding loans in the first three
months of the year.
City-based ACB
reported VND7 trillion ($333 million) in export-related lending in the first
four months, according to the bank’s general director Do Minh Toan.
However, it has not
proven easy to borrow in dollars, though the lending rate has significantly
fallen over the past year as the SBV has introduced numerous changes to
lending and set requirements to better control and limit USD lending.
Accordingly, only
export businesses with income sources in foreign currencies are allowed to
borrow in dollars.
Also, the country’s
bad debt situation has made banks more cautious about export-oriented
lending.
Vietcombank
executives have attributed unfavourable export markets, the complex bad debt
situation, and the difficulties facing export firms, particularly those in
seafood and agriculture, to banks’ hesitancy to lend to export firms.
According to
Sacombank’s general director Phan Huy Khang, although export credit is a
priority of the bank, it has found it hard to boost export credit due to many
seafood and agriculture-related firms going insolvent in recent time and also
because lending without collateral is high risk in the current context.
Discussing export
credit, a member of the National Financial and Monetary Policy Advisory
Council Tran Hoang Ngan voiced concerns that the current tensions in the
Banks still
attractive despite low deposit rates
The latest figures
from the State Bank of
Deposit volumes
from community rose 7.48 per cent, indicating that people still favour
putting their savings into banks.
According to deputy
general director of NamA Bank Tran Ngoc Tam, the bank’s deposits have shot up
10 per cent in the past four months.
Similarly,
Sacombank, Orient Commercial Bank (OCB) and VietA Bank also saw their
deposits surpassing 10 per cent in the period.
Bank executives
have said that despite the six-month or less deposit rate cap being further
lowered to 6 per cent per year in mid-March, banks have still reported ample
capital resources because the property and securities markets have seen
little recovery, whereas gold and forex have seen far less action since being
put under state control.
Currently, deposit
rates at local institutions are popular with 0.8-1 per cent for demand and
less than one month deposits; 5.5-6 per cent per year on deposits from one to
six months; 6-7.5 per cent for deposits between six months and one year; and
7.5-8.3 per cent deposits of more than one year.
Lower deposit rates
have paved the way for banks to save on costs, and from there, gradually
reducing lending rates.
Priority firms for
lending (production and trading, import-export, supporting industry, and
SMEs) often borrow at 7-8 per cent per year and for non-priority areas, 9-70
per cent per year for short-term loans and from 11-12.5 per cent per year for
medium and long-term loans.
Retail
banking the key to competitiveness
Banks are scaling
up efforts to find suitable market segments for business promotion to boost
efficiency.
Figures show that
banks have been facing a saturated wholesale market, while their retail
market business has been increasingly vibrant with increasingly fierce
competition.
According to State
Bank of
Supporting this
idea, deputy chairman of LienVietPostBank Nguyen Duc Huong, said “Banks
focusing on wholesale may die quickly, while retail banks can grow
step-by-step in a sustainable manner.”
“Local banks should
not sit idly by enjoying their home court advantages. They need to recognise
retail banking as an important part of their growth strategy and take proper
steps to attract customers and sharpen their competitiveness in the market,”
said Tran Thanh Quang, deputy general director of private OceanBank.
He said this in the
context that foreign banks, realising the potential of this segment in the
Vietnamese market, are competing fiercely with local institutions to gain
market share.
Though there is
huge potential for the development of retail banks, to grab greater market
positions banks need to expand services to their existing customers to
maximise potential.
In reality,
consumer lending is the most common product banks are offering now,
particularly lending for car and house purchases.
Less common is
lending for furniture and housewares, as well as to small and medium-sized
enterprises.
Several banks have
teamed up with financial firms to boost consumer lending.
Lending to
agriculture and rural areas is also a priority of some banks. In this
respect, state-owned Agribank and private LienVietPostBank are the leaders in
tapping this segment.
“Our bank is
pouring 40 per cent of capital into agriculture and rural areas. Our
operations show that bad debts are rare in this field, while they are
extremely high in urban areas,” said Huong from LienVietPostBank.
Thang from the
central bank said that the fact that two thirds of the Vietnamese population
lives in rural areas and most do not have bank accounts is a great challenge,
but a bigger opportunity for local retail banks.
Financial
aid urged for fishermen
National Assembly
(NA) deputies in their group discussions on Friday proposed more emergency
measures to support fishermen, saying all the ministries should practice
thrift to financially help fishermen build bigger fishing boats.
Deputy Nguyen Thi
Quyet Tam said authorities should focus on backing development of a new fleet
of boats for fishermen who are in the forefront of the country’s effort to
protect its sovereignty in the
Deputy Vo Thi Dung
suggested the Government suspend a VND2-trillion project for dredging the
The Ministry of
Transport earlier advocated a VND35 trillion budget proposed by NA deputies
for assisting fishermen to improve their output and protect national
sovereignty. The capital should be used to build large fishing boats for
lease, said deputy Tran Hoang Ngan.
Meanwhile, deputy
Nguyen Ngoc Hoa suggested focusing on logistics services to deal with
problems such as shortage of seafood purchasing boats or cold storage
facilities.
“I suggest that
each ministry should draw up scenarios to have quick and effective reactions
against developments in the
Deputy Do Van Duong
said it is necessary to forecast impacts of
“We need to review
budget allocations for investment projects in the coming time. It is
necessary to invest in a fleet of fishing boats for lease to help fishermen
protect
Honda looks
to sell 2 million motorcycles
While domestic
motorcycle demand is still in decline, Honda Vietnam (HVN) expects to sell
two million units, inclusive of exports, in the fiscal year starting from
last month until next March.
The figure
represents a 6% rise from the previous fiscal year, which is contrary to
forecasts of sales contraction by many manufacturers. Sales of HVN have
steadily dropped in the past two years as well.
With around 1.85
million motorcycles sold last year, HVN’s sales volume plummeted 5% from the
previous year. However, its market share picked up 5.5 percentage points to
68%, which means other producers faced a slide in sales last year.
Explaining the high
sales target, Minoru Kato, CEO of HVN, said the firm would be launching 10
new editions of existing motorcycle models and all-new ones, offering
customers more choices.
The export target
is set to reach US$247 million, up 66% from last year. In addition to
exporting Lead, SH, Sh Mode and PCX scooters, the company will also export
Dunk 50cc scooter to the Japanese market only.
“We will gradually
make
According to Kato,
the rural Vietnamese market is holding high growth potential and foreign
markets like
The third factory
of HVN will be put into operation this October, raising HVN’s total annual
capacity from two million to 2.5 million units. The company has developed modern
facilities to help raise the ratio of local content in its motorcycles to
93%,” said Kato.
May CPI
picks up 0.2%
Price hikes between
0.06% and 0.43% are seen in 10 out of 11 groups of items in the basket of
commodities used to calculate the CPI.
While the group of
housing and building materials fell in prices last month, this month has seen
this group soaring 0.43%, followed by a 0.36% rise of transport services
prompted by rising transport costs.
Post and
telecommunications is the only group to see a price drop, at 0.03%.
With the catering
services group increasing 0.17%, foodstuffs and dining-out services have
inched up 0.37% and 0.21% respectively while food has declined 0.51%.
Overall, even after
fuel prices have surged and transport costs have shot up as a result of the
Government tightening controls on overloaded trucks, the CPI has not gone up
much, which can be explained by still sluggish consumer demand.
All these reflect
HSBC’s forecasts made last month.
According to HSBC,
prices would slightly edge up when local market conditions gradually
improved. Consumer confidence has not improved and global goods prices have
remained weak.
Even if educational
and healthcare costs rise in August and September, and electricity tariffs
surge in summer, this year’s inflation would be around 5.6%, the lowest level
in the past decade, says HSBC.
Ocean Bank
installs POS devices in taxicabs
Representatives of
Ocean Commercial Bank and Thanh Cong Taxi Company shake hands after signing
an agreement on comprehensive cooperation in
Floor
export rice prices may be removed
Local firms would
be allowed to export rice to their clients at the prices on which the two
sides agree, instead of the floor prices set by the Vietnam Food Association
(VFA).
The Government has
told the ministries of industry-trade and agriculture-rural development to
consider the impact of pilot removal of the floor prices on rice exports and
propose appropriate management measures to facilitate export activity.
In the first four
months of this year,
However, rice
exports to the
VFA forecast rice
exporting countries would face fierce competition while importing countries
would increase domestic supply. Therefore, local exporters would have
difficulty shipping the food staple.
Apart from pilot
removal of the floor rice prices, the two ministries have been told to
diversify export markets and set attainable targets.
VFA has recently
revised down this year’s rice export target to 6.2 million tons from 6.5-7
million tons it announced earlier this year.
The FOB floor
prices set by the VFA are US$410 per ton for 5% broken rice, US$375 per ton
for 25% broken rice, US$365 per ton for 35% broken rice.
Pepper
exports seen hitting US$1 billion this year
VPA chairman Do Ha
According to Nam,
Vietnam’s pepper has made its way to over 90 countries and territories,
contributing 30% of global pepper export volume and attaining 50% global
market share.
Pepper in the
country’s southeast and Central
HK firm to
develop huge textile plant in Long An
Hong Kong’s Huafu
Vietnam Industrial Co., Ltd has received an investment certificate to develop
a large-scale dyeing and yarn project worth US$136 million at
According to the
Long An Economic Zone Authority, the project covering an area of 20 hectares
is set for operation next May and will be able to dye 20,000 tons of cotton
and produce 30,000 tons of yarn.
The investor said
traditional dyeing techniques require a lot of water and chemicals harmful to
the environment, but Huafu’s project will dye cotton material, which is a new
technological trend in the industry as it can help save dye and water.
In addition to
Huafu, there have been many investors from
According to
experts, the investors of those projects are looking to capitalize on great
business opportunities the Trans-Pacific Partnership (TPP) agreement will
bring when
With tariffs to be
cut to zero,
An expert said
foreign investors are quick to come to tap investment opportunities.
Farming
attracts
Japanese
enterprises will continue to increase investments in
Yasuzumi Hirotaka,
managing director of the Japan External Trade Organization (JETRO) in HCMC,
told a seminar on the investment environment of the Mekong Delta last week
that production remained the top priority of Japanese firms, making up 85% of
their total investment capital.
Japanese companies
have also explored other sectors such as retail, distribution and information
technology. However, agriculture and seafood are attracting their attention.
“Japanese investors
are taking a step-by-step approach toward comprehensive cooperation with
Vietnamese firms,” Hirotaka said.
Hirotaka said the
Mekong Delta held huge potential and had strong advantages in seafood and
farm produce supplies plus low land rent and labor cost.
However, the region
is still facing challenges such as outdated technologies and machines for
agricultural production, harvest and processing, and underdeveloped transport
infrastructure.
Japanese
enterprises have complained about administrative procedures, urging local
authorities to simplify investment formalities. They are also concerned about
a high-quality manpower shortage in the region.
Over the past 25
years, foreign direct investment flows into the Mekong Delta have been low.
Between 1988 and 2013, the region had 830 active projects with combined
investment capital of more than US$11.3 billion, or a mere 4.9% of the
nation’s total. Most projects have been licensed in Long An Province with 493
projects worth US$3.8 billion and
Report
highlights need for change to increase exports
According to the
HSBC Research Department's report on
visible in shopping
malls across the world. The report was released by the HSBC Bank (
The country's
exports growth is expected to increase by double digits per year by 2025,
with free-trade agreements expected between
TPP and EU-FTA will
help facilitate exports and investment by taking advantage of the increased
market access. With the wind in their sails, more Vietnamese goods are
expected to be shipped across the globe. But the speed at which exports can
accelerate is limited, as
"The ongoing
improvements in transport corridors, customs procedures, manufacturing and
agricultural supply chains will allow
Whether it's broken
rice, Robusta coffee, crude oil, textiles or electronic handsets, Vietnamese
exports are stuck at the lower end of the value chain, according to the
report. Agriculture products are primarily in raw rather than processed form,
forcing farmers to compete over volumes. Manufactured goods are mostly labour
intensive, with limited local inputs.
Cumbersome
transport logistics, trade procedures and an inefficient supply chain organisation
are the main reasons for
the prevailing
strategy is not sustainable in the long term. Therefore,
Petrolimex revises
pre-tax profit target
Stakeholders of the
Viet Nam National Petroleum Group (Petrolimex) last Saturday agreed on the
goal of the aggregated pre-tax profit for this year to be 1 per cent
lower than last year.
Speaking at the
annual general meeting of shareholders, general director of Petrolimex Tran
Van Thinh stated that the targeted profit for this year was lowered, at
VND2trillion (US$95.2 million), due to the projected decreasing petrol demand
as well as the harsh competition among wholesalers in the domestic market.
The temporarily
tightened import for re-exporting will push up costs, impacting the group's
competitiveness, he added.
Costs will also
arise from investments in developing a distribution system for biofuel E5,
which was compulsory in seven provinces–Ha Noi, Hai Phong,
Ngai,
At its
shareholders' meeting on Saturday, Petrolimex expected to sell around 9.23
million cubic metres of petrol and oil this year, with a total turnover of
VND200 trillion ($9.5 billion), 2 per cent higher than last year.
The group also
targeted the dividend payout ratio for this year to be no less than bank
interest rates, which will be around 8–10 per cent this year.
The petrol and oil
business, Petrolimex's core business besides investments in insurance,
transportation, services and construction, brought the group a profit of
VND849 billion ($40.4 million) last year after a loss of VND125 billion
($5.9 million) in 2012.
Petrolimex reported
a total turnover of VND51.8 trillion ($2.46 billion) and VND337 billion
($16.04 million) in pre-tax profit in the first quarter of this year.
Petrolimex's
chairman Bui Ngoc Bao reported at the meeting that the group would be listed
on the stock exchange by next year as it was currently raising charter
capital and seeking a strategic partner.
Hiep Phuoc
to be turned into port zone
On Saturday, the
chairman of HCM City People's Committee, Le Hoang Quan, said he had asked the
IP's management board and responsible agencies to not allocate land
plots but instead
to locate projects along the
In the near future,
the city will focus on building transport facilities, such as metro lines,
ring roads and expressways to meet demand for cargo transport to and from
Hiep Phuoc Port. The target is 200 to 250 million tonnes of cargo to be
handled at the port by 2020.
According to the
HCM City Department of Transport, the
The river has been
dredged to the depth of 11.5 metres, permitting 50,000-tonne vessels to reach
the Hiep Phuoc Port Complex.
The
Privately-owned
startups on the rise in Dong Nai
Southern Dong Nai
province has so far this year seen the establishment of 900 new
privately-owned startups, which have registered a total investment of over
3.3 trillion VND.
During the first
two weeks of May alone, 69 new businesses were set up with a combined
investment of 235 billion VND, reported the provincial Department of Planning
and Investment.
By May 15,
newly-registered and additional capital of people-run businesses in the
locality had hit more than 6.6 trillion VND, said the Department.
Department Director
Bo Ngoc Thu said the province is working to improve its competitiveness after
its Provincial Competitiveness Index (PCI) was ranked 40 th in 2013 from 9 th
in 2012.
The PCI plunge was
blamed for the locality’s failure to strengthen its transparency, reduce
market participation cost, and improve its dynamism.
To fix the
situation, the department has proposed stepping up administrative reform,
rolling out more support activities for businesses, especially private
businesses.
Provincial
departments and sectors were suggested to increase their publicity of
information relating to State policies and guidelines to businesses.
In the first
quarter of the year, the province’s Index of Industrial Production (IIP) increased
by 7.1 percent, ranking third after northern Hai Phong city (11.3 percent)
and central
Dong Nai is one of
It is also one of
the country’s leading FDI receivers over the past years.
In the first five
months of this year, Dong Nai ranked third FDI attraction, gathering 579.74
million USD in newly-registered and additional capital, according to the
Foreign Investment Agency of the Ministry of Planning and Investment.
It targets to reel
in around 900 million USD in FDI for the whole year.
The province has
established an office to directly support foreign investors and provided
small and medium-sized FDI enterprises with special assistance related to
investment licences.
It will give
priority to high-tech, environmentally friendly projects and those in the
fields of services and infrastructure investment.
Dong Nai
endeavours to help riot-affected firms restore production
Local authorities
and agencies in the southern
Phan Thi My Thanh,
Vice Chairwoman of the provincial People’s Committee, made the instruction at
a May 26 conference aimed to seek ways to support affected enterprises and
maintain foreign investment flow in the province after the incidents.
Thanh also
requested the firms to advance money to pay workers’ salary for the days off
during disturbances, adding that relevant agencies will establish working
groups to verify real losses of affected enterprises and work out solutions
to this issue.
Besides, she
stressed that Dong Nai’s departments, agencies and localities should promptly
carry out the recent direction issued by Prime Minister Nguyen Tan Dung on
providing support to the firms that suffered from the damages.
At the event, some
participants suggested the province’s taxation sector deduct value-added tax
levied on input materials destroyed in the incidents and extend the deadline
for paying corporate income tax for affected companies.
Many expressed hope
that the local customs sector will not impose a fine on enterprises which
have lost customs-related documents and records. Business representatives
also asked for extension of the deadline for tax payment for affected
businesses while exempting or reducing import and value-added taxes levied on
imported machines and materials damaged during the disturbances.
Representatives
from Chinese- and Taiwanese-invested enterprises said their firms need
all-faceted support from the local authorities and other stakeholders in
order to stabilise their production. They also affirmed Dong Nai province is
an attractive destination and will continue to maintain their investment in
the locality.
Earlier, Finance
Minister Dinh Tien Dung has asked
The disturbances
erupted during workers’ rallies in protest of
Some extremists
incited others to destroy property of foreign firms as well as of the State,
businesses and individuals, and acted against law enforcement officials,
disrupting social order and business activities. Thanks to the government’s
timely interference, most affected companies have returned to work and social
order and security has been restored.-
EVN
intensely performs energy-saving solutions
In addition to
efforts to develop the power grid, the Electricity of Vietnam (EVN) has
actively implemented energy-saving solutions, the Vietnam Economic News
reported.
According to EVN’s
energy-saving report, the group has strongly deployed solutions and created a
breakthrough in improving energy efficiency in all sectors such as industrial
production, construction, transport and services.
Legal documents,
management network and the deployment of the energy-saving programme have
basically been formed. Energy database system has been piloted in some
sectors such as cement, steel, garment and textile and seafood processing.
EVN has also paid
special attention to promoting communication campaigns, contributing to
raising community awareness on energy-saving and protecting the environment.
Member units have deployed many solutions such as organising training
courses, competitions, exhibitions and the Earth Hour campaign and bringing
energy-saving contents into the national education system.
According to EVN
assessment, energy-saving activities and projects carried out in recent years
have always attached to the government’s goals and requirements, contributing
to bringing practical effects to the society.
When the law on
energy efficiency took effect on January 1, 2011, energy-saving activities
have created a breakthrough. The country saved more than 5 billion kWh of
electricity in the 2006-2010 period and 1.3 billion kWh and 1.67 billion kWh
in 2011 and 2012 respectively.
In particular, in
2013, the country saved 2.8 billion kWh of electricity, equal to 141 percent
of the yearly plan with a total amount of about 3.7 trillion VND.
However, the
energy-saving programme has also faced some problems in terms of financial
resources and low community awareness. A number of energy efficiency projects
have remained difficult to get access to capital source. In particular, the
problem of low energy price was a large barrier when implementing energy
efficiency measures. Therefore, the most important solution is to change the
perception of energy efficiency ,especially in sectors that use lots of
energy with poor performance.
According to the
plan, in 2014, EVN will drastically implement measures such as assigning
power loss target to member units, promoting campaigns on energy-saving and
raising community awareness.
In addition, the
group will continuously implement projects and programmes to exploit
energy-saving potential such as energy-saving households, energy-saving
routes, advertising the use of solar energy water heaters, using safe
lighting sources and playing video clips on energy-saving in the public
areas.
Moreover, using
compact fluorescent bulbs, installing energy-saving devices, such as air
conditioners and refrigerators mounted with inverter and switching off lights
when not needed are mentioned, contributing to changing consumer habits on
energy-using.-
Can Tho’s
five-month exports fall by 14 percent
The Mekong Delta
city of
Of that sum,
earnings from the shipment of rice and processed aquatic products accounted
for nearly 70 percent.
Toai said decreases
were seen in both export volume and value of rice due to fierce competition
from
Prices of rice
destined for the
Meanwhile, aquatic
shipment is facing more trade barriers. Notably, the
Quang Ngai
officials study Singaporean management methods
The central
It is the first
class lectured by Singaporean experts.
During the five-day
course, participants will gain a better understanding of
They will also look
into case studies about the island state’s industrialisation, development
master plans for Jurong Island and a variety of urban sustainability
practices.-
By May 20,
According to the
municipal People’s Committee, the city also gathered additional capital worth
68.8 million USD, poured into 40 operational projects.
All told, the total
of newly registered and additional capital was valued at 793 million USD, an
increase of 119 percent from the same period last year.
After learning
about social disorders caused by some local extremists in protest against
Thus, by May 19,
all 32 firms affected by the incidents had returned to business.
In the near future,
the city will continue to consider and adjust relevant policies to lure more
foreign investment inflow, especially for the fund in high-tech and
supporting industries.-
Investment
in innovation fuels growth
Capacity is taking
off, with economic growth projection hitting 5.8 per cent by 2017, it
anticipates.
The report
undertakes a quarterly review of Southeast Asian economies, with a focus on
the following countries including
Against the
backdrop of a recent emerging markets sell-off, potentially rising interest
rates luring investors back to the developed world, and a slowdown in
Less developed
economies such as
Two things must
happen to allow this progress to higher-value manufacturing; government-led
investment in education and skills, and private-sector-led large-scale investment
in production.
Mark Billington,
regional director of ICAEW South East Asia, said: "Investment in
education and skills is key to building a knowledge economy."
He added as a
highly educated workforce is put into place, the extent to which
Charles Davis,
ICAEW economic adviser, said that investment is not just about building
plants and creating new capacity, it is necessary that foreign firms setting
up new sectors in less-developed economies transfer knowledge and increase
the skills of workers so they can produce higher value-added goods and
services.
"In the long
term, as these economies grow wealthier, foreign direct investments will
increasingly be driven by consumption rather than production, as the large
populations of Southeast Asia should provide increasing numbers of affluent
consumers," he said.
Though
US reduces
anti-dumping duty on
The Vietnam
Competition Authority (VCA) announced on May 27 that the US Department of
Commerce (DOC) has lowered anti-dumping tax, on
In its final
decision, the DOC agreed to reduce the tax rate, which was proposed at
17.72-53.91% on December 31, 2013, following the Department’s preliminary
determination.
Vietnamese firms
involved in the DOC’s anti-dumping investigation included Son Ha
International Corporation and Mejonson Industrial Vietnam Co. Ltd.
VCA reported that
US producers required the imposition of anti-dumping duties on stainless
steel pressure pipes imported from
In the DOC’s final
decision, Malaysian exporters faced 22.70-167.11% tax rate, while those from
Last year,
Vietnam’s stainless steel export earnings from the US hit US$10.3.The US
International Trade Commission is due to make its final decision on whether
the imports harmed local industry on July 6, and the DOC will issue the order
to impose the anti-dumping tax on July 13, 2014.
However, in case
the USITC shows its opposition, the investigation will end without any
anti-dumping duties.
Lamborghini
revs up distribution in Asia-Pacific region
World super sports
car manufacturer Automobili Lamborghini has officially appointed CT-Wearnes Vietnam
as its authorised partner, to expand its distribution networks and agents in
the Asia-Pacific region.
Accordingly,
CT-Wearnes Vietnam will become Lamborghini’s first distributor in
Sabastient Henry, Head
of South East Asia & Pacific at Automobili Lamborghini said that the
establishment of an authorised partner in
He highlighted
Lamborghini’s long-term potential in the Vietnamese market.
CT-Wearnes Vietnam
General Director Pham Xuan Dong said that the showroom in
Firms hurt
by riots get tax breaks
Deputy Prime
Minister Vu Van Ninh has urged
Ninh said this was
necessary to stabilise the operations of foreign and domestic businesses.
In a meeting with
the city's People's Committee yesterday, he said the city should also map out
measures, including tax and land rental breaks, to help enterprises affected.
Ninh praised the
measures taken by authorities to deal with the rioting during protests
against
He also praised
efforts to prevent extremists from damaging enterprises, especially
foreign-invested businesses and told city authorities not to allow the
situation to be repeated.
Ninh added that
labourers should be instructed about proper behaviour
According to a
report from the Municipal People's Committee, 32 enterprises in industrial
parks and three others outside were hit by the disturbances. Total damage has
been estimated at VND3.9 billion (US$185,700).
City authorities
implemented immediate measures to settle the matter. As a result, by May 17,
most affected enterprises resumed normal operations.
However,
enterprises said they were committed to pay workers even for days they were
absent due to disorder.
Meanwhile, Prime
Minister Nguyen Tan Dung has urged relevant ministries and agencies to offer
more support to businesses harmed by recent social disorders to help them
resume normal operations.
He asked the
finance ministry to direct customs agencies to provide import tax exemption
for businesses affected and not to collect value-added tax for imported goods
to help them repair and buy new equipment.
In support of
workers, the PM urged businesses to pay wages for those workers who had to
stop working during the period. The expense used to pay for them would be
deducted from business tax later.
The PM urged
People's Committees to temporarily use their provincial budgets to pay
workers if companies involved could not immediately do so.
He said that when
business owners returned from overseas, they would be asked to refund the
money. The expense would also be later deducted from tax.
The PM asked
ministries and agencies to propose measures to help any business that could
not immediately resume operations.
He also urged
provincial People's Committees to reduce land rentals for businesses that had
suffered damage.
Businesses that
have stopped operations to re-invest in trade and production facilities will
have land rental payments refunded and be exempt from land rental fees for
2014.
Source:
VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
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Thứ Tư, 28 tháng 5, 2014
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