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BUSINESS
IN BRIEF 31/5
A seminar in
During the seminar,
Vietnamese ambassador to
Ambassador Chung
said that both
Furthermore,
Last year’s two-way
trade in 2013 hit only US$240 million which has not fulfilled the set target
of US$500 million by 2010. In the first quarter alone, bilateral trade was
estimated at US$86 million.
Chung said that the
most important thing for businesses is to put faith in each other to
alleviate difficulties and bring two-way trade to US$500 million in the
coming time.
Both sides also
agreed to set up a column on the situation of Vietnamese market in the
website of the Alexandria Chamber of Commerce.
The pledge, part of
the 2013
The ministers said
that both nations are expecting mutually beneficial cooperation on almost
fronts, particularly trade, investment, tourism and science-technology.
Cho said the Korean
business community lauds the Vietnamese Government for its timely interference
in anti-China riots in Binh Duong and Ha Tinh, saying that he has strong
faith in the stable investment climate in the country.
On the national
defence and security front, both sides vowed to maintain existing dialogue
and policy exchange channels, while working more closely in personnel
training, defence industry, experience sharing and undertaking United Nations
peacekeeping missions.
They also agreed to
liaise better at regional and global forums, such as the United Nations, the
Asia-Pacific Economic Cooperation, ASEAN+ and the East Asia Summit.
Informed about the
recent developments in the East Sea, with China illegal stationing its oil
rig Haiyang Shiyou – 981 in Vietnam’s continental shelf and exclusive
economic zone, Cho called for the parties concerned to settle the dispute
through peaceful means in line with international law, especially the 1982
United Nations Convention on the Law of the Sea and the Declaration on the
Conduct of Parties in the East Sea.
In regards to the
situation in the
On the occasion,
Cho also paid courtesy calls to Deputy Prime Minister and Foreign Minister
Pham Binh Minh and Deputy Head of the Party Central Committee’s Commission
for External Relations, Nguyen Huy Tang.
Binh Duong
enjoys trade surplus in first five months
In the first five
months of 2014, the southern
According to the
provincial Statistics Office, during the January-May period, the locality’s
export turnover saw a year-on-year increase of 7.9 percent to reach more than
US$5.3 billion, of which US$4.469 billion came from the foreign-invested
sector.
High growth rate
continued to be recorded in Binh Duong’s main exports, including garment and
textiles (US$700.9 million, 18.2%), mobile phones and components (US$450.9
million, 70.8%) and footwear (US$440 million, 12.5%).
Meanwhile, in the
period the province spent US$4.39 billion on importing goods, up 7.6% from
the same period last year.
*** Meanwhile,
around US$65 million of foreign direct investment (FDI) was poured into Binh
Duong in May, raising total FDI capital to the locality in the first five
months of this year to US$815 million.
This is a positive
sign which shows that investors still retain confidence in the investment
environment in the locality and
Binh Duong has so
far lured 2,255 foreign-invested projects totally valued at about US$20
billion.
According to
Director of the provincial Department of Planning and Investment Mai Hung
Dung, out of the US$65 million of FDI invested in Binh Duong in May, US$43
million was poured into local industrial parks (IPs).
Singapore
investors keen on widening footprint in Vietnam
Singaporean
companies are keenly interested in enlarging investment and grasping
opportunities to do business with Vietnamese business partners, said Minister
in the Prime Minister’s office Lim Swee Say.
Say made the
statement at a working session with Vice Secretary of the Ho Chi Minh City
Party Committee Nguyen Thi Thu Ha and Vice Chairwoman of the HCM City
People’s Committee Nguyen Thi Hong, in
As one case in
point Say highlighted the recent cooperation between Saigon Co.op and
More than 120
supermarkets in
She emphasised that
During the fair,
NTUC FairPrice introduced 40 “Made-in-Vietnam” products to Singaporean
customers including several specialities such as coffee, Pho (Vietnamese
noodle soup), dragon fruits and seafood.
Second
The second
Mekong-RoK Business Forum got underway on May 29 drawing a large number of
representatives from the business community of
Speaking at the
opening, Deputy Foreign Minister Bui Thanh Son said the fourth Mekong-RoK
Foreign Ministers’ Meeting scheduled for Seoul this July is expected to
approve an action plan to expand cooperation between the Mekong nations,
which is a significant development for the region, Vietnam is committed to
bolstering Mekong-RoK regional cooperation and strengthening dialogues,
developing public-private partnership and creating favourable conditions for
businesses, he said.
Son also stressed
that through the forum,
Cho Tae-Yong,Korean
First Vice Minister of Foreign Affairs in turn said that the
He affirmed that
the RoK was impressed at the region’s GDP growth and sees many bright
prospects on the horizon.
The RoK Government
expressed the desire to further strengthen relations with
During the forum,
two debates on alternatives to developing the business environment and
enhancing opportunities to strengthen the supply and value chain connectivity
between the
Coffee
exports up in volume, value
According to the
Ministry of Agriculture and Rural Development (MARD),
During the period,
the average export price of coffee was US$2.001 per tonne.
Meanwhile,
MARD has forecast
that
Economists at the
Vietnam Centre for Economic and Policy Research (VEPR) say that economic
growth in 2014 is expected to be lower than last year and the economic
recovery remains tepid.
At a conference
releasing the Vietnam Annual Economic Report 2014 in
He went on to say
that the report hypothesises two alternative scenarios for the country’s
economic growth in 2014. The less optimistic scenario projects economic
growth at 4.15% while the more sanguine puts it at 4.88%.
The VEPR’s
estimates are much lower than the figures predicted by the National Financial
Supervisory Commission early last month.
The Commission
reported that GDP in 2014’s first quarter hit 4.96%, higher than the same
period of the two previous years, and is likely to be maintained in the third
quarter of this year. Therefore, it postulated that a GDP growth rate of 5.8%
in 2014 is within reach.
In April, the Asia
Development Bank (ADB) also foresaw that
Dr. Thanh said the
sharp reduction in GDP is partially attributable to the ongoing complications
in the
Vietnam’s northwest
is one of the country’s key corn cultivation areas with nearly 300,000 ha
used for the crop, accounting for 25 percent of the country’s total corn
growing areas, the Vietnam Economic News reported on May 29.
However, the
regional corn yields only reached 3.2 tonnes per ha, much lower than the
country’s average yield. Therefore, increasing yields and production for the
northwestern provinces drew great attention from the Ministry of Agriculture
and Rural Development (MARD).
The biggest
difficulty is that corn cultivation in mountainous provinces are located
mainly in steep, hilly and mountainous areas and therefore the soil is often
washed away during the rainy season, leaving the soil exhausted and having a
negative impact on the environment.
In addition, local
cultivation methods remain limited as they lack input agricultural materials
like fertilizer and irrigation water. Nomadic people living in shifting
cultivation mainly in forests also reduced forested areas and made their
livelihoods unstable, resulting in low corn yields and production.
In an agriculture
promotion forum on sustainable corn production in northwestern region recently
co-organised by the National Agriculture Promotion Centre and Lai Chau
province’s Department of Agriculture and Rural Development, a programme
linking the state, scientists, farmers and enterprises to develop corn
production in the region was recommended as one of the prerequisite
conditions for sustainable corn cultivation and a premise to build a key corn
growing region so that Vietnam can take more initiatives in its supply for
animal feed.
According to
Director of the National Agriculture Promotion Centre (the MARD), the
sustainable development of corn cultivation requires collaboration among the
four previously mentioned stakeholders as well as sound investment.
In recent years,
the Syngenta Vietnam Company has coordinated with the National Agriculture
Promotion Centre, departments of Agriculture and Rural Development and
Agriculture and promotion centres in the northwestern mountainous provinces
to transfer technologies and raise farmer awareness of sustainable corn
production. Syngenta raised technical solutions to change the farming habits
and awareness and also implemented overall, scientific solutions to gradually
increase corn yields sustainably year after year.
Director of Foreign
Affairs of Syngenta Vietnam Company Le Thi Khanh Hoa said with annual
investment of more than US$1.5 billion for research and development to
support its networks globally, now Syngenta is the only company that has a
comprehensive collection of products on main crops such as corn, rice, coffee
and pepper.
As for corn,
Syngenta brings growers an abundant collection of hybrid corn varieties
including NK54, NK66, NK6326, NK67, NK7328 and NK4300 which have advantages
such as drought and cold tolerant, promising high yield from 10-12 tonnes per
ha, allowing farmers to use corn varieties suitable for each specific crop
and helping them improve the crop yields, increase incomes and improve their
lives in a sustainable way.
To develop
sustainable corn production, northwestern provinces need to set up a
concentrated corn cultivation region, apply scientific advancements in
varieties, cultivation skills and technological process. They especially need
to adopt more open policies to lure investment in processing facilities
attached with consumption of the products.
Vietnamese
rice introduced in Mexico
Vietnamese rice and
agricultural products were introduced to Mexican partners, along with trading
opportunities in the field, during a conference in
Addressing the
event, Ambassador to Mexico Le Thanh Tung reviewed bilateral cooperation
between the two counties over recent years, with two-way trade reaching 1.5
billion USD in 2013.
He called on
businesses of both sides to strengthen mutual trust by increasing direct
meetings.
Director in chief
of
He said
He also pledged to
work harder to remove technical barriers for Vietnamese goods, while continue
consolidating confidence of Vietnamese exporters in
Meanwhile, General
Secretary of the Vietnam Food Association, Huynh Minh Hue, briefed the
participants on
He said
Participants at the
event were also introduced to the nation of
Businesses of both
sides also had a chance to dialogue directly to locate partnership prospects.
Foreign investors are
increasing their interest in projects based in the Mekong Delta, the Vietnam
Investment Review reported.
Speaking on the
sidelines of a conference to promote investment in the region on May 22 in Ho
Chi Minh City, Nguyen Thanh Hoang, General Director of the Netherlands-backed
De Heus LLC Vietnam said the Dutch-invested company had decided to build an
additional 15 million USD animal feed plant and a 3 million USD aqua-culture
research centre in Vinh Long province.
According to Hoang,
the company’s existing 12 million USD aqua-feed plant in Vinh Long was
already operating efficiently.
Hirofumi Kishi,
General Director of Japanese-invested
“With a big
population and a unique culinary culture, the Mekong Delta offers massive
potential for a growing beer market,” said Kishi.
According to Kishi,
Yasuzumi Hirotaka,
Executive Director of the Japan External Trade Organisation (JETRO) in Ho Chi
Minh City said in addition to its favourable geographical position, the
Mekong Delta had major advantages including agricultural and aquatic
products, cheap land fees, low-cost labour, and improved traffic
infrastructure, including upgraded waterways.
“The most promising
investment sector in the Mekong Delta is now developing processing industries
thanks to the plentiful availability of rice, seafood and fruit,” said
Hirotaka.
EuroCham
representative Henk Meyknecht said European investors were paying much more
attention to the region, particularly focusing on tourism real estate, food
and beverage services, and hotels.
Speaking on behalf
of the 13 cities and provinces in the region, Vo Thanh Thong, Vice Chairman
of the Can Tho City People’s Committee underlined the fact that the local
authorities were keen to provide the most favourable conditions for
investors.
During 2011-2013,
the Mekong Delta attracted 271 projects with the total registered capital of
2.3 billion USD.-
Manufacturing industry attracts huge FDI
Three major foreign
investors –
As of April, Japan
had 2,226 projects covering all 18 sectors in Vietnam with a total investment
of US$35.51 billion, mainly in the processing and manufacturing industry
(1,227 projects at US$29.9 billion), real estate (30 projects at US$1.4
billion) and construction (US$56 projects at US$1.06 billion).
Its investments
are spread throughout 49 provinces and cities of the country, of which
Thanh Hoa took the lead with 9 projects at US$9.68 billion, followed by Binh
Duong, Hanoi, Ho Chi Minh City, Haiphong and Dong Nai.
The
The RoK pumped
US$30.77 billion into 3,736 projects as of April. The processing and
manufacturing industry topped the 18 sectors with 2,261 projects at US$18
billion, then came real estate with 76 projects at US$6.67 billion and
construction with 520 projects at US$2.3 billion.
Korean investors
have made their appearance in 49 provinces and cities nationwide.
In addition to
production, Singaporean investors have paid due attention to infrastructure
development at industrial and export processing zones. Five IZs have been
operated by Singaporean investors, including Vietnam-Singapore Industrial
Parks (VSIPs) in Bac Ninh,
Joint
project offers lower rate loans to businesses in Ha Noi
Businesses in the
capital can access loans with interest rates of 7–8 per cent per year under a
programme to remove difficulties for businesses.
The programme,
initiated by the Ha Noi People's Committee, connects banks and businesses in
the capital and is aimed to have commercial banks support credit for
businesses at reasonable interest rates.
Under the
programme, interest rates for short-term loans will be 7–8 per cent compared
with the market average rate of 9–10 per cent. The rates for medium- and
long-term loans will be 9–10.5 per cent compared with the market average rate
of 10.5–12 per cent.
The programme gives
priority to high-tech and supporting industries as well as small- and
medium-sized firms.
According to the Ha
Noi Statistics Office, credit in the capital in the first 5 months this year
increased by 0.3 per cent against the same period last year while deposits
rose 2.4 per cent.
Outstanding loans
in May alone were estimated at nearly VND948 trillion (US$44 billion), up 0.8
per cent from last month and up 0.3 per cent from December 2013.
Additionally,
short-term loans increased by 0.6 per cent from last month and 1.4 per cent
from December 2013, while medium- to long-term loans increased by 1.2 per
cent from last month and 3.9 per cent from December 2013.
However, the
capital's credit growth rate was much slower than that of the whole banking
industry. Data from the State Bank of
Total deposits of
Ha Noi-based credit institutions in May reached VND1,071 trillion ($49.81
billion), up 1 per cent from last month and 2.4 per cent from December 2013.
Production
jumps 5.4% this year
Industrial
production in the first five months of the year saw a 5.4 per cent
year-on-year increase, according to the General Statistics Office.
The index of
industrial production (IIP) also signalled that industry was recovering, with
the highest growth rate so far this year, noted the GSO.
"The growth
rate of 5.6 per cent during Jan-April was 0.8 per cent higher than the same
period last year," said industry expert Nguyen Quang Ha.
Ha attributed the
high IIP growth rate to the 7.5 per cent surge in the processing and
manufacturing sector, which accounted for 70 per cent of total industrial
output.
During the period,
the garment and textile sector rose 21.1 per cent, motorised vehicles were up
9.6 per cent, and electric production and distribution grew 10.5 per cent.
Many products also
registered production growth in the first four months, including electronics,
up 12.4 per cent; and paper production and distribution, up 11.9 per cent.
However, other
products registered a decline in production, such as rubber and plastic, down
1.3 per cent; crude oil exploitation, down 2.6 per cent; and coal, down 5.6
per cent.
Agricultural
manufacturers offered preferential loans
Agricultural
manufacturers, integrated agricultural production - distribution projects,
technology-applied models - can now have access to more preferential loans,
the State Bank of Vietnam (SBV) announced on May 28.
In Decision No
1050/QD-NHNN of May 28 that took effect immediately, eligible subjects are
set to those that involve contracts to produce, process and distribute
agricultural products, those that are granted certificates of
technology-applied production by the Ministry of Agriculture and Rural
Development and households.
Highest annual
borrowing interest rates at commercial banks are 7 percent for short terms,
10 percent for medium terms and 10.5 percent for long terms.
Short-term loans
will be granted to meet the growing demand of fertiliser, seedlings and
varieties of poultry and animals, as well as agriculture equipments, while
medium- to long-term loans will support investment in infrastructure and
equipments to develop technology-applied models.
This pilot lending
programme will expire in two years.
The SBV has
strengthened cooperation with related authorities, agencies and the banking
system to develop better financial programmes for the field.
SBV has coordinated
with the Ministry of Agriculture and Rural Development and the Ministry of
Science and Technology to develop suitable mechanisms to help credit
institutions expand investment in the sector, especially for agricultural
production operations with strong application of advanced technologies.
Given the
approximately 70 percent of
In rural areas,
underdeveloped agricultural credit insurance has seriously affected farmers'
ability to repay, as it does not cover large variations in price due to
natural disasters or epidemics. For that reason, banks only lend moderate
amounts of capital.
Stimulating banks
to maintain a minimum ratio of 20 percent of their capital for agriculture
and rural development is considered a practical measure that could facilitate
credit activities in the field, as banks are still the major providers of
loans to the sector.
Central bank
officials said the bank had made efforts to regulate the monetary policy in a
flexible manner to support credit institution liquidity and stabilise the
currency market by boosting foreign currency reserves.-
Vietnam’s northwest
is one of the country’s key corn cultivation areas with nearly 300,000ha used
for the crop, accounting for 25 percent of the country’s total corn growing
areas, the Vietnam Economic News reported on May 29.
However, the
regional corn yields only reached 3.2 tonnes per ha, much lower than the
country’s average yield. Therefore, increasing yields and production for the
northwestern provinces drew great attention from the Ministry of Agriculture
and Rural Development (MARD).
The biggest
difficulty is that corn cultivation in mountainous provinces are located
mainly in steep, hilly and mountainous areas and therefore the soil is often
washed away during the rainy season, leaving the soil exhausted and having a
negative impact on the environment.
In addition, local
cultivation methods remain limited as they lack input agricultural materials
like fertilizer and irrigation water. Nomadic people living in shifting cultivation
mainly in forests also reduced forested areas and made their livelihoods
unstable, resulting in low corn yields and production.
In an agriculture
promotion forum on sustainable corn production in northwestern region
recently coorganised by the National Agriculture Promotion Centre and Lai
Chau province’s Department of Agriculture and Rural Development, a programme
linking the state, scientists, farmers and enterprises to develop corn
production in the region was recommended as one of the prerequisite
conditions for sustainable corn cultivation and a premise to build a key corn
growing region so that Vietnam can take more initiatives in its supply for
animal feed.
According to
Director of the National Agriculture Promotion Centre (the MARD), the sustainable
development of corn cultivation requires collaboration among the four
previously mentioned stakeholders as well as sound investment.
In recent years,
the Syngenta Vietnam Company has coordinated with the National Agriculture
Promotion Centre, departments of Agriculture and Rural Development and
Agriculture and promotion centres in the northwestern mountainous provinces
to transfer technologies and raise farmer awareness of sustainable corn
production. Syngenta raised technical solutions to change the farming habits
and awareness and also implemented overall, scientific solutions to gradually
increase corn yields sustainably year after year.
Director of Foreign
Affairs of Syngenta Vietnam Company Le Thi Khanh Hoa said with annual
investment of more than 1.5 billion USD for research and development to
support its networks globally, now Syngenta is the only company that has a
comprehensive collection of products on main crops such as corn, rice, coffee
and pepper.
As for corn,
Syngenta brings growers an abundant collection of hybrid corn varieties
including NK54, NK66, NK6326, NK67, NK7328 and NK4300 which have advantages
such as drought and cold tolerant, promising high yield from 10-12 tonnes per
ha, allowing farmers to use corn varieties suitable for each specific crop
and helping them improve the crop yields, increase incomes and improve their
lives in a sustainable way.
To develop
sustainable corn production, northwestern provinces need to set up a
concentrated corn cultivation region, apply scientific advancements in
varieties, cultivation skills and technological process. They especially need
to adopt more open policies to lure investment in processing facilities
attached with consumption of the products.
Capital
flow continues to pour into textile industry
Despite several
major new projects, the attractiveness of the textile industry seems to have
remained unchanged as it continues to lure huge amount of capital from both
domestic and foreign investors, the Vietnam Economic News reported on May 28.
According to
Vietnam Cotton and Spinning Association, in mid June 2014, Jiangyin Zhenxin
Wool Spinning Co., Ltd. (
The project plans
to invest in a production line with a capacity of 5,000 - 20,000 spindles and
an estimated production capacity of 800-2,000 tonnes of fiber a year.
Basically, Jiangyin Zhenxin Wool Spinning will support machinery and
production technologies and provide a source of capital worth more than 5
million USD.
Earlier, a series
of big projects from foreign investors have also been implemented in the
textile industry. For example, Texhong Ngan Long Science and Technique Co.,
Ltd of Texhong Group (
Domestic investors
meanwhile are not inferior in terms of investment scale and also seized their
opportunities in the sector. In early May of this year, Century Fiber JSC
launched groundbreaking ceremony of a new plant, Trang Bang branch Phase 3
with total investment of 33.9 million USD. After going into operation, this
plant will supply an additional 15,000 tonnes of POY and 15,000 tonnes of DTY
yarn each year.
The Vietnam Textile
and Garment Group has received permission from Quang Binh provincial People's
Committee to invest in a fiber production plant in Quang Phuc commune,
The continual
capital flows into the fiber industry were clearly due to the impact of the
origin requirement from the Trans-Pacific Partnership (TPP). Accordingly, in
order to enjoy the preferential tax when exporting goods to TPP markets,
especially the traditional markets of
In addition,
although
Along with the
growing number of projects in the textile industry over the past few years,
domestic fabric supplies have improved considerably and
Removal of
floor prices on rice export to be considered
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 Saigon Times Daily has reported.
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
That market
imported nearly 27 percent of
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 tonnes from 6.5-7
million tonnes it announced earlier this year.
The FOB floor
prices set by the VFA are 410 USD per ton for 5 percent broken rice, 375 USD
per tonne for 25 percent broken rice, 365 USD per tonne for 35 percent broken
rice.-
Song Than
IP pledges to help riot-affected firms restore production
The Song Than
Industrial Park in southern Binh Duong province pledges to do its utmost to
support foreign-invested businesses hurt by recent social disorder to
maintain their investment flow in the locality.
Huynh Uy Dung,
Chairman of the Board of Directors and General Director of the Dai Nam Joint
Stock Company, the main investor in the Song Than IP, made the commitment at
a May 27 working session with representatives from 10 FDI enterprises, which
all specialise in manufacturing Asama bicycle spare parts in the park.
Dung also informed
participants about a plan to aid the businesses in resuming their production
and ensuring jobs for their workers. He pledged to allow the Active
International Vietnam Co., Ltd, a manufacturer of bicycle saddles, use 5,000
square metres at the IP without paying land use fees for 5-10 years.
Affected businesses
will also be free to use 18,000 square metres of land to stock their products
and materials during the process of restoring their production.
Dai Nam JSC will
allow FDI enterprises to unconditionally use the Tan Dinh Industrial Cluster
as a temporary place for their production, he said, adding the company will
provide furnished accommodation for experts and staff working at the IP.
A representative
from Asama Co., Ltd said the support is very timely and will help the company
soon resume its production.
Tran Van Lieu, head
of the managing board of Binh Duong’s IPs, required FDI companies operating
in the Song Than IP 2 to count their real loss caused by the disturbances and
submit a report on the damage to the board for its consideration as soon as
possible.
He also suggested
the firms pay for workers’ days off during the rallies and work with relevant
agencies to tackle difficulties.
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.
Vietnamese
in RoK receive funding from local firm
The Hoban
Scholarship Foundation, run by the Republic of Korea (RoK)’s Hoban
Construction Company, has agreed to grant 30 million Won (29,310 USD) to the
Vietnamese Association in the RoK.
A memorandum of
understanding on the grant was signed on May 27 at the Vietnamese Embassy in
The fund, to be
provided for one year from June 1, will be used to assist Vietnamese in the
RoK who have married into Korean families by supporting them integrate into
their host country’s society and teaching Vietnamese to their children.
The fund, granted
to the association for the first time, will also be used to support the
activities that boost the Vietnam-RoK friendship.
On the occasion,
the foundation also presented five scholarships valued at 2 million Won
(1,956 USD) each to five Vietnamese students in the RoK.
Purchasing
power hits the buffers
The modest growth
of retail sales of goods and services in the first five months of 2014,
holding at 6 per cent, suggests that domestic purchasing has not considerably
improved.
According to the
General Statistics Office (GSO), retail sales in the first five months was
estimated to reach VND178.9 trillion, or US$56.14 billion, an increase of 11
per cent over the same period last year
Further, said Vu
Manh Ha from the GSO, the growth of purchasing power in the first five months
had 5.5 per cent higher than the same period of last year. This modest
increase was attributed to the slight increase of the consumer price index
(CPI) at 0.2 per cent in May 2014.
The total retail
sales of goods reached $42.1 billion, accounting for a proportion of the 75.2
per cent of the total growth, at 8.5 per cent.
The increase of
goods was mainly attributed to the necessary items for daily living, such as
food and home appliances.
Ha said, generally,
that purchasing power in the first five months has not improved due to the
public's limited incomes and it was difficult to return to the total growth
of 12 to 17 per cent, as seen prior to 2011.
Agricultural
firms gain access to cheaper credit
Agricultural
manufacturers, integrated agricultural production—distribution projects,
technology-applied models—can now have access to more loans at cheaper costs,
the State Bank of Viet Nam (SBV) announced yesterday.
In Decision No
1050/QD-NHNN of May 28 that took effect immediately, eligible subjects are
set to those that involve contracts to produce, process and distribute agricultural
products, those that are granted certificates of technology-applied
production by the Ministry of Agriculture and Rural Development and
households.
Highest annual
borrowing interest rates at commercial banks are 7 per cent for short terms,
10 per cent for medium terms and 10.5 per cent for long terms.
Short-term loans
will be granted to meet the growing demand of fertiliser, seedlings and
varieties of poultry and animals, as well as agriculture equipments, while
medium- to long-term loans will support investment in infrastructure and
equipments to develop technology-applied models.
This pilot lending
programme will expire in two years.
The SBV has
strengthened cooperation with related authorities, agencies and the banking
system to develop better financial programmes for the field.
SBV has coordinated
with the Ministry of Agriculture and Rural Development and the Ministry of
Science and Technology to develop suitable mechanisms to help credit
institutions expand investment in the sector, especially for agricultural
production operations with strong application of advanced technologies. Given
the approximately 70 per cent of
In rural areas,
underdeveloped agricultural credit insurance has seriously affected farmers'
ability to repay, as it does not cover large variations in price due to
natural disasters or epidemics. For that reason, banks only lend moderate
amounts of capital.
Stimulating banks
to maintain a minimum ratio of 20 per cent of their capital for agriculture
and rural development is considered a practical measure that could facilitate
credit activities in the field, as banks are still the major providers of
loans to the sector.
Central bank
officials said the bank had made efforts to regulate the monetary policy in a
flexible manner to support credit institution liquidity and stabilise the
currency market by boosting foreign currency reserves.
Quality
standards spark fear among gold traders
Concern has spread
among jewellery traders just days before Viet
In September last
year, the Ministry of Science and Technology (MoST) issued Circular 22, which
takes effect next month. This regulates management and measurement policies
in the gold trading business.
Under the circular,
the standards of quality and measurement of gold jewellery sold on the local
market must be written in a product code showing the correct gold content.
And at least 75 per
cent of 18-carat gold jewellery must be pure gold, while 24-karat jewellery
must be a minimum of 99.9 per cent pure gold.
The media has
reported that due to a long-term lack of management controls, most 18-carat
jewellery on the domestic market is only 58-68 per cent gold.
According to Nguyen
Hoang Linh, a senior official from the Directorate for Standards, Metrology
and Quality, many people pay for gold jewellery they believe has a high gold
content.
However, when they
re-sell the items, they receive far less money than they expect because the
gold content is much lower than they expect.
While the circular
outlines the proper management of gold quality, traders complain that they
have been given too little notice. They say from the time it was issued to
the date it goes into effect is too short for them to prepare and manage
their inventory stock.
In the nine months,
the concerns have spread to more than 12,000 traders. As the date of
compliance with the circular draws closer, they say most of their products
were made without the necessary code to indicate gold content.
Ly Hai Son, owner
of a jewellery trading site in
He added that he
could not remake nearly 1,000 items in his possession to meet the requirement
of the new regulations because this would cost too much and could ruin his
business.
According to the
Viet Nam Gold Trading Association (VGTA), companies and businesses previously
made their own declarations on product quality, with an error margin of 1-3
per cent, whereas the circular only allows an error margin of 0.1- 0.3 per
cent.
VGTA deputy
chairman Dinh Nho Bang told Biz Hub that if the circular was not revised, it
would cause huge losses to traders and to millions of buyers in the country
who hold gold as a method of saving.
Bang has asked the
Ministry of Science and Technology not to apply the regulations to products
that were made before June 1.
On May 27, the VGTA
sent a letter containing 10 petitions related to the circular to both the
Ministry and the Directorate for Standards, Metrology and Quality, pleading
for the circular to be revised to better serve the trading community.
Lao Cai
iron, steel factory ups production
The Lao Cai iron
and steel factory in the northern mountainous
According to Nguyen
Van Ton, Director General of the Viet Nam-China Mineral Resources and
Metallurgy Company, the project's investor, the factory can produce 12-13
batches of cast iron every day, with a total output of 1,500 tonnes.
Applying the latest
technology, the factory is the second largest of its kind in Viet Nam after
the Thai Nguyen iron and steel factory.
In its first phase,
the factory has a design capacity of 500,000 tonnes per year, which will be
doubled in the second phase. The project uses Quy Xa mine as its main
material source, which has a reserve of 120 million tonnes. The first batch
of steel ingot is expected to be produced in June. Construction of the Lao
Cai iron and steel factory, which is partnered by Viet Nam Steel Cooperation
and Chinese Kungang steel and iron company, commenced in 2011 with a total
investment of $337 million.
Ha Noi
accelerates land clearance
The Ministry of
Transport has asked investors of three key transport projects in Ha Noi to
accelerate land clearances to meet the existing deadline.
The ministry made
the request at a recent meeting held to discuss land clearances for the Nhat
Tan Bridge, the road connecting Noi Bai International Airport to Nhat Tan
Bridge, and the Cat Linh-Ha Dong urban railway project.
Site clearance
efforts for these projects have made recent progress. However, some areas in
Tay Ho, Soc Son and Ha Dong districts are proceeding slower than expected.
Specifically, two
households occupying 216 square metres near the Nhat Tan Bridge and six
households impeding the Noi Bai-Nhat Tan Bridge road are yet to be relocated.
Vice chairman of
the municipal People's Committee Nguyen Quoc Hung said the committee had
required investors to work with the Tay Ho district authority to carry out
the site clearance and complete it this month.
The committee also
requested the Soc Son district authority to work with investors to chalk out
compensation for six households in the district.
Regarding the Cat
Linh-Ha Dong urban railway project, Hung said progress on site clearance and
construction was lagging behind schedule.
He said the
ministry needed to pay about VND356 billion (US$16.9 million) in compensation
to affected households to speed up site clearances.
In a reply to the
committee's request, Deputy Minister of Transport Nguyen Hong Truong said the
ministry had proposed the Government to deploy a further VND400 billion ($19
million) to implement the urban railway project.
As planned, the sum
would be allocated to the city for household compensations.
Truong also
required the management board of the railway project to carry out
construction work after the site clearance was finished.
The Cat Linh-Ha
Dong urban railway project was built at a cost of VND8.8 trillion ($419
million). The entire project measures longer than 13 km, including 12
stations and a depot. It is expected that the project will be completed by
June, 2015.
The Nhat Tan Bridge
project, which starts in Tay Ho District and ends at the intersection with
Dong Anh District, is nearly nine kilometres long, with the bridge stretching
3.7 kilometers and the access roads 5.2 kilometres. Investment capital of
VND13.6 trillion ($6.4 trillion) will be used to fund the new bridge.
Ministries
instruct dealers to keep petrol, oil prices steady
The ministries of
Finance and Industry and Trade yesterday asked dealers not to raise retail
prices for petrol, oil and kerosene even though they might face losses.
According to the
finance ministry, for about one month, dealers have been losing VND228 on
every litre of petrol sold and between of VND52-VND162 per litre of kerosene.
The ministry said
dealers could continue using the price stabilisation fund to cover their
losses.
This would continue
to give them VND200 per litre for petrol products.
The ministry also
extended use of the fund to mazut oil used in industry, subsidising it by
VND160 per litre.
Meanwhile, the
dealers were also told to cut rate of using the fund from VND180 per litre to
VND90 for diesel oil and from VND160 per litre to VND60 for kerosene.
The dispatch came
into effective at 2pm yesterday.
The current retail
prices on the domestic market are VND24,900 (US$1.19) for a litre of A92
petrol, VND22,680 for a litre of diesel oil and VND22,480 a litre for
kerosene.
SBV ready
to inject cash into commercial banks
The State Bank of
Vietnam (SBV) said at a press briefing on May 28 that it was ready to provide
cash for commercial banks in need of funds to stabilise banking activities.
The announcement
followed concerns that rising tensions in the East Sea over China’s illegal
deployment of an oil rig within Vietnam’s sovereign waters could cause
instability in the banking system.
Head of the SBV’s
Monetary Policy Department Nguyen Thi Hong said that banking activities were
still normal at present and the central bank was keeping a close watch on
market developments.
She added that the
central bank would take any measures to keep the currency market and banking
activities in check.
Hong earlier said
that the SBV was working with other relevant agencies to step up foreign
exchange regulation efforts and would severely punish those involved in
racketeering and causing turmoil on the market.
On May 21, Governor
Nguyen Van Binh gave an assurance that Vietnam’s central bank was committed
to ensuring safety and security for foreign banks, as well as protecting
legitimate interests of foreign investors in Vietnam.
Firms may
issue C/Os
Vietnam is
considering allowing manufacturers to issue certificates of origin (C/O) for
their products to enjoy preferential tariffs of the ASEAN Trade in Goods
Agreement (ATIGA), according to the Multilateral Trade Policy Department.
Speaking at a
recent seminar in HCMC, Le Trieu Dung, deputy director of the department
under the Ministry of Trade, said ASEAN countries were implementing two
projects on the C/O self-certification mechanism for enterprises.
The first project
has been piloted for a couple of years with participation of several hundreds
of trading and production firms in Brunei, Malaysia, Singapore and Thailand.
The second project was initiated earlier this year for Laos, Indonesia and
the Philippines.
Due to some legal
barriers, Vietnam will be able to join the second project after regulatory
adjustments are approved by the National Assembly.
The common goal of
ASEAN countries is to implement such a self-certification mechanism in the 10
member countries in 2015, and thus it is likely that Vietnam will join the
second project soon, according to Dung.
Yuichiro Okumura, a
senior inspector of Japan’s customs agency, said there was a shift in C/O
issuance from authorities to goods importers and producers, especially in the
agreements involving the United States.
Susumu Sato from
the Japan External Trade Organization (JETRO) in Hanoi said exporters might
be allowed to issue their own C/Os when Vietnam signed the Trans-Pacific
Partnership (TPP) agreement or the free trade agreement with the European
Union.
Vietnam’s
labour productivity lowest in Asia Pacific
The most recent
statistics on labour productivity in Vietnam has placed the country at the
bottom of countries in the Asian Pacific region, according to the
International Labour Organisation (ILO).
According to the
report, 20% of Vietnamese workers do not have a labour contract, the average
reaching 45% for workers under the age of 25. Those working in insecure
employment situations and low-income earners make up 63% of the workforce.
The report also
concluded that the productivity of the average Vietnamese worker is about 15
times less than that of an average Singaporean worker. Compared to Japanese
workers, Vietnamese are ten times less productive.
In the period
between 2002 and 2007 Vietnam experienced an increase in productivity of
around 5% per year, which has now fallen to 3.3%.
Mai Duc Chinh,
Deputy General Director of the Vietnam Labour Union, confirmed that the lower
labour productivity rates were reflective of the real situation. He said
that, compared with other regional countries, especially Singapore, Vietnam
is lagging behind.
The director of ILO
in Vietnam, Gyorgy Sziraczki, said that labour laws in Vietnam should be
revised in order to improve the situation.
Sturgeon
able to benefit Vietnam
Vietnam introduced
Siberian sturgeon into cold-water areas in 2005. Four species are being
farmed today, making the country one of the world's top ten producers of
these valuable cold-water fish.
Sturgeons are a
high-value species, especially their eggs which are made into caviar. They
have been introduced into aquaculture in Vietnam in an effort to use the
availability of cold-water resources, especially lakes and reservoirs, and
have become a major cultured fish in highland and mountainous areas. With the
development of sturgeon aquaculture in the cold-water areas of the north and
central highland provinces, Vietnam has made its way onto the list of the top
ten sturgeon producers in the world, along with China, Russia, Italy,
Bulgaria, Iran, the US, France, Poland and Germany, according to the Food and
Agriculture Association (FAO).
The four sturgeon
species cultured in Vietnam are Siberian sturgeon, beluga, Russian sturgeon
and sterlet, with Siberian sturgeon being the most popular, according to Dr.
Tran Dinh Luan, former deputy director at the Research Institute for
Aquaculture No. 1 (RIA 1) in the northern province of Bac Ninh. Chinese
sturgeon was also introduced into Vietnam a few years ago but has not been as
successful as Siberian sturgeon or the others because of its slow growth
rate, he added.
Siberian sturgeon
was the first species introduced into Vietnam from Russia via RIA 1. The
fertilised eggs were hatched and reared successfully in many areas such as
Sapa in Lao Cai province, Na Hang in Tuyen Quang, Thac Ba Reservoir in Yen
Bai province, Da Lat in Lam Dong province and Da Mi Reservoir in Binh Thuan
province.
The private sector
has mainly contributed to sturgeon aquaculture development in Vietnam. In
2007, the Ha Quang Company co-operated with Russian experts to carry out
trials on egg incubation and hatching, and raising Siberian sturgeons,
Russian sturgeons, and sterlets in Tuyen Lam Lake in Da Lat. In 2008, the
Vietnam Sturgeon Company applied the new technology to culture the four
species in the Da Mi Reservoir. Surprisingly, more than 20,000 Siberian
sturgeons, Russian sturgeons, and sterlets grew well at 30.5 degrees water
temperature during the summer of 2008. After such great results, the company
is also looking to produce caviar for export to markets such as Japan, Russia
and the US.
Another private
company, Yen Bai province-based Northern Sturgeon JSC has built a sturgeon
nursery in Van Chan district and grown Siberian and Russian sturgeons in Thac
Bac Reservoir.
Many other private
companies such as Giang Ly in Lam Dong, Thien Ha in Lao Cai province and Chu
Va Hydropower Company have also invested in this business but on a smaller
scale.
There are many
sturgeon farming systems in Vietnam such as tanks, ponds and cages. The local
temperatures range between 16 and 18 degrees. As a result, sturgeons cultured
in Vietnam grow 1.5-2 times faster than in their countries of origin. They
also have lower feed conversion ratios and shorter farming periods and thus
reduced labour costs, noted Dr. Luan.
Therefore,
Vietnam’s sturgeon can compete with products from the temperate zone. Fish
productivity has significantly increased, from 7-10 kilograms per cubic metre
at the beginning to 20-30 kilograms today thanks to improved farming systems
and technologies.
Vietnam has been ranked
as the eighth producer of sturgeon in the world, Luan said. “It is important
that there is a detailed development plan for this business in Vietnam.”
As part of
Vietnamese government efforts to promote fish farming in highland areas, RIA
1 officer Nguyen Hai Son and researcher Nguyen Quang Thai have developed
methods and guidelines for raising sturgeon in cages in Vietnam.
Son explained cage
culture in lakes and reservoirs was considered one of the most important
trends in many countries seeking to take full advantage of water surfaces to
improve aquaculture activities. “Cage culture also has several advantages
over other methods of culture because it uses existing water bodies and
simple technology while requiring comparatively low capital investment,” he
added.
The methods and
guidelines include selecting the species, designing the cage, selecting the
site, managing production, providing good quality feed, and sampling,
harvesting and keeping records.
Records of cage
environment and fish health should be kept to minimise any problems as early
as possible in the production cycle, said Son. “Record keeping also helps
farmers learn from past mistakes, thus reducing the risk and costs of
production in subsequent crops,” he explained.
Locally-cultured
sturgeon are popular in the domestic market, especially tourist destinations,
as well as supermarkets, hotels and restaurants in major cities such as
Hanoi, Hai Phong and Ho Chi Minh City and provinces such as Lam Dong, Dak
Lak, Quang Ninh, Hai Duong, Bac Ninh and Bac Giang. They are sold live,
fresh, chilled and frozen, whole or in chunks. The prices for live fish range
from $10-15 per kilogram.
New gust of
interest as wind power tariffs rise
The feed-in tariff
for wind power projects could rise above the currently regulated 7.8 US cents
in an effort to pave the way for the development of more wind power projects
in Vietnam.
Director of the
Ministry of Industry and Trade’s (MoIT) Renewable Energy Department, Pham
Trong Thuc, made the announcement at a joint Vietnamese-French seminar on
supporting the development of renewable energy held in Hanoi last week.
Thuc said that
although Decision 37/2011/QD-TTg on wind power project incentives was passed
in 2011, wind power still only accounted for 1.5-2 per cent of Vietnam’s
overall power generation capacity.
“This year the MoIT
will revise the Decision 37 to allow reasonable feed-in tariffs for wind
power projects to attract investors,” said Thuc.
With a more than
3,000 kilometre-long coastline, Vietnam has giant wind power potential. The
Vietnamese government is looking to attract scores of wind farm projects to
produce 1,000 megawatts for the national grid by 2020.
Vietnam’s
under-developed wind-power infrastructure has been ascribed to difficulties
ranging from weather to technology, and, in particular, the high cost of
investment and the cap on electricity prices.
According to the
Institute of Energy, investors must spend $2,250/kWh for US and EU technology
and $1,700/kWh for Chinese technology for a wind farm project producing 30MW.
However, on average, the price for power generated by these projects is 10.68
US cents/kWh for the former’s technology and 8.6 US cents/kWh for Chinese
technology. These figures include recouping capital and depreciation.
German Federal
Enterprise for International Co-operation’s chief technical advisor Werner
Kossmann told VIR that the current feed-in tariff in Vietnam of 7.8 US cents
was too low to attract investors despite support mechanisms such as a 1 US
cent/kWh subsidy from the Vietnam Environment Protection Fund, free land for
projects and emissions reduction credits.
He also said that
over the past few years many wind power projects had been registered,
however, most of them remained on paper because power prices in the country
were still set too low. He added that if the tariff was to increase to
10.2-12 US cents/kWh, dozens of projects would start moving forward.
Recently, Bui Quang
Ngan, deputy director of the Central Wind Power Joint Stock Company explained
that rising interest rates, plus input material price increases of 1.5-2 fold
for wind power projects meant investors not only wanted, but needed an 11-12
US cent electricity tariff just to make a small profit.
Vietnam’s wind
power industry is set to take off with 42 projects in the pipeline.
Agriculture
reveals barren FDI vista
Faced with plunging
foreign direct investment in agriculture, the Ministry of Agriculture and
Rural Development is considering new methods to attract foreign investors to
pump prime the sector with new capital sources.
Minister of
Agriculture and Rural Development Cao Duc Phat told a workshop held last week
in Hanoi on the attraction of foreign direct investment (FDI) into
agriculture, that despite robust exports of agricultural products worth $28.5
billion last year, there had been an alarming plunge in FDI inflows into the
sector.
Fifteen years ago,
FDI into agriculture, forestry and fisheries accounted for 15 per cent of
Vietnam’s total FDI volumes, but the rate had plummeted to 0.5 per cent over
the past three years.
Nguyen Ba Cuong,
deputy director of the Ministry of Planning and Investment’s (MPI) Foreign
Investment Agency, said by the end of April this year, Vietnam’s agriculture,
forestry and fisheries attracted only 520 foreign-invested projects of the
country’s total number of 16,300.
“Almost all the FDI
projects in the sectors are in the Red River and Mekong Delta regions. Remote
provinces have barely attracted any FDI projects in these sectors. FDI
projects in agriculture, forestry and fisheries mainly focus on areas with
quick capital returns such as farm produce, timber and food processing,
animal husbandry and animal feed,” said Cuong.
Nguyen Van Toan,
vice chairman of the Vietnam Association of Foreign-invested Enterprises
attributed the sharp fall in FDI in agriculture to the lack of material zone
development planning and sudden changes in planning and policies by the local
authorities.
Meanwhile, Bui Tat
Thang, director of the MPI’s Development Strategy Institute said the lack of
a long-term FDI attraction strategy and weak rural infrastructure still
constituted major barriers for FDI inflows into Vietnam’s agriculture sector.
Determined to
address the issue, Minister Phat said, “We realise that a review of the
mechanisms and policies is required to stimulate foreign investors into the
agricultural sector as we know it would bring about benefits for both
businesses and farmers.”
The minister also
promised to create a favourable agricultural investment environment, shorten
administrative procedures, cut costs and remove the inconsistencies between
policies and implementation.
According to Phat,
in order to encourage foreign investors in agriculture, the Ministry of
Agriculture and Rural Development (MARD) was considering allowing foreign
businesses to directly procure farm produce from farmers instead of through
intermediaries.
According to the
MARD, it needed to create large-scale domestic businesses capable of
partnering with foreign firms, while at the same time improving the quality
of human resources in the sector.
Tedi South
suggests four lanes for HCMC-Moc Bai expressway
Transport
Engineering and Design Inc. South (Tedi South) has suggested that the
HCMC-Moc Bai expressway should have at least four lanes by 2020 to serve
increasing demand for passenger and cargo transport on this route.
The consulting firm
under the Ministry of Transport said that the 55-kilometer expressway was
planned to comprise four to six lanes and connect Belt Road No. 3 in HCMC
with Moc Bai Border Gate in the southern province of Tay Ninh.
Tedi South proposed
the expressway have four lanes by 2020 and be expanded to six lanes by 2040
based on its projections that the daily number of vehicles on the expressway
would reach its highest rate of 62,000 PCU (passenger car units) by 2040, not
to mention the strong increase in cargo transport between the two
destinations.
At a meeting in
Hanoi last week, Vice Minister of Transport Nguyen Ngoc Dong told Tedi South
to consider different investment phases and options for the expressway
project, with priorities given to building two main lanes and two sub-lanes
to minimize investments.
The HCMC-Moc Bai
expressway is one of the six highways connecting this economic hub and nearby
provinces. It will also be part of a trans-Asia expressway linking economic
centers and urban areas of Southern Key Economic Zone with seaports and
international airports in the ASEAN region.
Along with National
Highway 22, Ho Chi Minh Road, belt roads No.3 and No.4 in HCMC, the HCMC-Moc
Bai expressway is expected to form an uninterrupted transport system in
southwestern provinces.
Two lanes
proposed for Trung Luong-My Thuan expressway
Cuu Long Corporation
for Investment, Development and Project Management of Infrastructure (Cuu
Long CIPM) has suggested developing two lanes for the Trung Luong-My Thuan
expressway section in the Mekong Delta in the first stage due to difficulties
in investment mobilization for the project.
Duong Tuan Minh,
general director of Cuu Long CIPM, said the first phase of the expressway
required nearly VND25 trillion (US$1.18 billion) and it was difficult to
mobilize this sum.
Therefore, Cuu Long
CIPM wanted to develop the expressway with two lanes of 2.5 meters in width
each plus sections for emergency stops in the initial stage under the
build-operation-transfer (BOT) format. The corporation will widen the road to
six lanes afterward, using official development assistance (ODA) loans.
As for the My
Thuan-Can Tho expressway section, Cuu Long CIPM also proposed carrying out
the project in two phases. The first phase is scheduled for ground breaking
in the third quarter of next year and completion in the second quarter of
2018 while ODA loans will be sought for the second phase to expand the
expressway to six lanes.
Trung Luong-My
Thuan-Can Tho Expressway will help shorten the travel distance between HCMC
and the Mekong Delta once it is completed. A 40-kilometer expressway section
between HCMC and Trung Luong in Tien Giang Province was opened to traffic in
2010.
Registered
capital of new domestic businesses in HCMC up 26%
The number of
newly-established domestic enterprises in HCMC fell by 2% to less than 9,560
in the year to May 20 but their combined registered capital grew by 26%
year-on-year to more than VND53 trillion, according to the HCMC Department of
Planning and Investment.
The department
reported the figures at the HCMC People’s Committee’s economic review meeting
for May on May 26.
In the period, more
than 16,250 domestic operational enterprises registered to adjust business
activities with combined additional capital of over VND47.3 trillion, up 15%
in number and 4% in capital compared to the same period last year.
The department
calculated the total sum of fresh and additional registered capital by
domestic businesses in the January-May period neared VND100.5 trillion, up
14% from a year earlier.
In the period, 120
new foreign direct investment projects with total registered capital of
US$724.2 million were licensed in HCMC, down 7.7% in number but up 356.4% in
capital.
The strong increase
in FDI flows resulted from projects in the garment and textile sector,
including a high-quality apparel production undertaking of Worldon Vietnam
(US$140 million), a quality fiber facility of Sheico Vietnam (US$50 million)
and a rubber gloves project of Cleanwrap Latex Vietnam (US$10 million).
Besides, 40
operational FDI projects added US$68.8 million to their capital pledges in
the first five months, bringing the total new and additional investments to
US$793 million, up 119% year-on-year.
HCMC has so far
received over 20 groups of foreign investors coming to sound out
opportunities in trade, supporting industries, information technology and food
processing among others.
BA HCMC
looks for outstanding entrepreneurs
The HCMC Young
Business Association (YBA HCMC) on May 26 held a press conference to
introduce its Outstanding Young Entrepreneur Awards 2014 to honor outstanding
young businesspeople of the city for this year.
The aim is to
encourage businesspeople to do their best to contribute to development of the
country and society. The eighth edition of the awards is one of the
activities held to mark the 20th anniversary of YBA and the 9th Young Businessman
Congress term 2014-2016 from May 2014.
Held every two
years, the awards will go to 10 businesspeople in HCMC who have made
outstanding business and social achievements, including taking good care of
workers at their firms in the two latest years and respecting State
management regulations.
The organizers will
also choose entrepreneurs for the “Outstanding Young Entrepreneur” awards in
the fields of effective business solutions, investments in new technology,
environmental protection, social activities, and employee care.
Candidates must be
under 45 years old and are recommended by YBA HCMC, business associations and
clubs among others. Registration can be made from June 16 to July 16.
After 14 years, the
awards have been given to 61 young outstanding and 11 typical entrepreneurs.
The awards are great encouragement for young businesspeople to invest in and
expand business and trading activities and contribute more to the city’s
economic growth.
Apart from the
awards, the YBA HCMC will also organize forums for city leaders and young
entrepreneurs, Vietnamese CEOs, e-business as well as seminars on trade
promotion.
The YBA HCMC was
established with 30 members but its members have reached nearly 1,000 with
total registered capital of nearly VND104 trillion (US$4.8 billion). These
members have provided jobs for around 157,200 people.
Car imports
hit record in May
Around 6,000 cars
worth US$92 million have been imported into Vietnam this month, the highest
monthly volume this year, according to the General Statistics Office (GSO).
Local media quoted
the GSO as saying that the car imports rose 50% in volume and 3% in value
over April.
Companies have
spent more than US$380 million buying some 20,000 foreign autos in the year
to date, increasing by more than 50% in volume and 45% in value.
VnExpress cited the
Vietnam Auto Manufacturers Association (VAMA) as announcing that companies
sold 11,300 units of different brands and models last month, rising by nearly
30% over a year ago and around 41,400 autos in the first four months of this
year, up 36% over the same period last year.
After the
Government reduced registration fees for the autos under 10 seats to support
this auto market, the demand for cars has recovered after more than one year
of stagnation.
VAMA has revised up
its prediction that 125,000 units would be sold this year, up 14% over last
year.
Hungary
firms keen on agriculture
Hungarian firms are
looking for investment opportunities in different sectors in Vietnam and
agriculture is one of their prioritized areas, according to the chairman of
Hungarian Chamber of Commerce and Industry.
Parragh Laszlo told
the Daily last week when a delegation of Hungarian firms were visiting
Vietnam that Vietnam was restructuring its agriculture sector to turn out
more quality and value-added products, and this was a good opportunity for
Hungarian firms.
Laszlo said as
Hungary had an edge in agriculture, its enterprises would be able to
cooperate with Vietnamese counterparts to help develop agriculture in this
country.
Nguyen Le Ha, who
is managing director of Vietnam-Network Co. Ltd. and a member of the
delegation, said her company was seeking Vietnamese firms to implement
cooperation projects in agriculture and that Hungarian government had
supporting policies for agricultural development.
In addition to
farming, Hungarian businesses also sound out the prospects for wastewater
treatment, construction of water pipes, healthcare, education and technology,
Hungary has been involved in a clean water treatment project in the central
province of Quang Binh.
Laszlo said more
members of the Hungarian Chamber of Commerce and Industry were coming to
gauge the Vietnamese market and that a Hungary-Vietnam trade promotion center
would be established in Vietnam later this year to support trade and
investment cooperation between the two nations.
Two-way trade
between Hungary and Vietnam remains insignificant, at US$100 million a year,
and Laszlo forecast the figure could rise in the years to come.
“We have an
export-import bank providing loans with preferential interest rates for
enterprises willing to enter the Vietnam market. Therefore, it is expected
that trade between the two nations will increase in the future,” Laszlo said.
Ba Dinh
political center to be expanded
The Ministry of
Construction and Hanoi authorities have announced a zoning plan already
approved by the Prime Minister to expand Ba Dinh District in Hanoi - the
political center of Vietnam.
The plan of scale
1/2000 envisages an additional area of 29.5 hectares for the political center
compared to the 105 hectares in a zoning plan announced in July 2012.
The new plan
includes the area of 9.14 hectares for the Party Central Committee agencies,
2.95 hectares for the President’s Office, 2.95 hectares for the National
Assembly’s entities and 5.55 hectares for Government bodies.
The headquarters of
the ministries of Planning and Investment, Justice, and Agriculture and Rural
Development will be moved out of Ba Dinh to a new place in accordance with a
general zoning plan for Hanoi. The premises of these three ministries will be
transferred to other departments for use.
As per the plan of
expanding the political center, the current building of the Ministry of
Foreign Affairs will be restored before being transferred to the Vietnam
Fatherland Front Committee after the new headquarters of the ministry is
completed.
The new plan
attaches importance to preserving and restoring the old French-built
buildings of security, defense and diplomatic agencies.
ACB asks
VietinBank to return embezzled money
The court hearing
of a case against Nguyen Duc Kien, former vice chairman of Asia Commercial
Bank (ACB), in Hanoi City on May 26 ended up in an argument between
representatives of ACB and VietinBank, with the former asking the latter to
return the deposits appropriated by a former VietinBank officer.
According to
indictments, Kien and his accomplices issued a decision assigning 19
individuals to deposit VND718 billion at VietinBank. However, the money was embezzled
by Huynh Thi Huyen Nhu, former deputy chief of VietinBank’s risk management
department.
ACB at the court
said that the deposits had been placed in accordance with the contracts
between VietinBank and its customers. ACB transferred the money to the
accounts its staff opened at VietinBank, with the bank issuing statements to
confirm that the money had been transferred to VietinBank, not to Huyen Nhu’s
own account.
After Huyen Nhu’s
case was uncovered, VietinBank has yet to give an explanation on its
responsibilities for the lost money. VietinBank rather than Nhu had to take
responsibility, an ACB representative said.
Meanwhile, a lawyer
defending VietinBank said the money was deposited at VietinBank as a payment
account, which is different from a deposit account opened to earn interest.
If the ACB staff in
question wished to open deposit accounts to take the interest, they should
have asked for certificates of deposit.
“I doubt this was
an agreement between Huyen Nhu and Bao Ngoc, deputy manager of budget of
ACB,” the lawyer said.
The ACB side still
insisted the deposit contracts were made between the assigned individuals and
VietinBank. The ACB staff had made no documents assigning VietinBank to make
payments via their accounts. Therefore, VietinBank must bear responsibility
for the lost money.
Nguyen Van Hoa, ACB
chief accountant, said that if a bank employee had deposited money at ACB and
then withdrew it, ACB would have taken all responsibility.
If VietinBank is
found guilty, Kien, ACB former chairman Tran Xuan Gia, and other high-ranking
officers like Le Vu Ky, Pham Trung Cang, Ly Xuan Hai and Huynh Quang Tuan
would not face the charge of acting against the State’s economic management
regulations causing serious consequences.
The issue between
the two banks was also debated at a lower court hearing of the Huyen Nhu
case. State President Truong Tan Sang requested related agencies to clarify
the problem before the appeals hearing opens.
Source: VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
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Thứ Sáu, 30 tháng 5, 2014
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