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BUSINESS
IN BRIEF 25/6
Vietnam
markets goods in France
Leaders from the
Vietnamese and French business communities convened at a meeting in
Head of the Trade
Promotion Agency (TPA) under the Vietnam Ministry of Industry and Trade
(MoIT) Bui Huy Son briefed attendees on
Son stated that
Vietnamese businesses have a high demand for modernized machinery and
equipment to bring manufacturing efficiencies in line with international
norms, increasing competitiveness.
The government is
also striving to streamline the legal framework, making it less complicated
for foreign investors to do business in
Most Vietnamese
exports fetching high value to
Son spoke glowingly
about
There is plenty of
opportunity for both business communities after the Vietnam-EU Free Trade
Agreement is due to be signed later this year, Son said.
He went on to say
that
A representative
from the French
Jacques Fouvel, a
representative from the French giant food retailer Casino Group headquartered
in Val-de-Marne, expressed his delight at the success of the Big C chain in
He said around 95%
of the retail products sold at Big C are made in
He said Casino
plans to construct additional retail outlets in
First half
industrial production up 5.8%
June's industrial
production index (IPI) was estimated to increase 0.5% against the previous
month, and this figure was also up by 6.5% against June last year.
The processing and
manufacturing industry posted growth of 7.8% against the same period last
year, while its consumption rose 9%.
The industry's
higher consumption increases versus that of production is a positive signal
for the industry's recovery and development, in particular, and for the whole
economy, in general.
Officials pointed
out that a number of industries showed high growth rates in the first half of
the year, including rolled steel production (up 25.4%), automobiles (up
24.2%), mobile phones (up 22.7%) and leather footwear (up 22.2).
Thanks to the rise
in consumption, the number of recruited workers in industrial production
firms as of June 1 saw an increase of 0.8% against the previous month; the
rise was 2.7% compared with the same period last year.
The Vietnam Chamber
of Commerce and Industry (VCCI) in a recent report also noted that H1 2014
saw a sharp improvement in business conditions compared with H2 last year,
despite the impact of various challenges.
The chamber
forecast that the total consumption of domestic firms will continually rise
in the second half of this year.
In a move to boost
production, the prime minister last week required VCCI and other relevant
ministries and agencies to resolve the requests of businesses and address
their difficulties in a timely manner before reporting the issues each month
to the prime minister and each quarter to the government.
The relevant bodies
have been instructed to focus on improving the business and investment
environment, supporting firms in accessing credit and markets, and restructuring
firms.
Leather
exports to top US$12 billion
Leather footwear
and handbag exports are expected to top US$12 billion this year, achieving
the target, the Vietnam Leather and Footwear Association (Lefaso) said.
They were worth
US$10.4 billion last year to rank third in the country's list of key exports,
Diep Thanh Kiet, Lefaso's deputy chairman, said, adding, "The exports
were very good in the first half of the year, with footwear exports going up
by more than 14% and handbags by over 18%."
But Kiet and others
at a June 23 seminar in
The industry
imported nearly US$4.2 billion worth of leather and other raw materials last
year, which accounted for 40% of its total export revenues, Kiet said.
Up to 70% of the
leather needed for footwear and handbag production was imported, mainly from
the
Only 40% of fabric
and other raw materials can be sourced locally, and the country spent more
than US$3 billion to import fabric and other raw materials last year, mostly
from
But there is a
growing trend of shifting production of fabric and others from
In the next few
years local production can supply more than 50% and the rest can be procured
from
With lower
production costs compared with
To capitalise on
development opportunities, companies should focus on improving the skills of
their workers, diversify their export markets, and pay more attention to the
domestic market, she said.
They also need to
restructure their organisation based on competitive advantages, strengthen
their design capabilities, build brands, and improve technologies to reduce
energy consumption and protect the environment, she said.
Most importantly,
firms should concentrate on developing their supply chain, especially for
feedstock, delegates said.
Kiet said the
Government should be more pro-active in setting up industrial parks for
leather tanning, a key material for the industry.
Phan Chi Dung,
director of the Ministry of Industry and Trade's Light Industry Department,
said under the development plan for the footwear industry, the Government
wants to raise local content in production to 60-65% by 2015 and 75-80% by
2020.
The targets are
hard to realise, he admitted, but the signing of the FTA with the EU and the
TPP is expected to provide a boost to the rate.
There are 812 firms
are in the country's leather and footwear industry, he said.
A report released
at the Committee’s June 23 meeting, shows the city’s total GDP was estimated
at VND378.9 trillion (US$17.8 million), rising 8.2% over the same period last
year.
The city collected
VND121.91 trillion (US$5.73 million) for the State budget, equivalent to
53.87% of its target, up 14.9% against the same period last year. Of the
total, VND67.8 trillion came from domestic operations and the rest remainder
was from export.
According to
Director of the municipal Department of Planning and Investment Thai Van Re,
increase was seen in almost all income indicators as compared to those of the
same period last year. Particularly, income from the economic sector rose
18.9%.
As of June 15, the
city granted business licences to 11,189 enterprises with total registered
capital of VND59.2 trillion (US$2.78 million), bringing the total investment
to VND115.8 trillion, up 6% year on year, he noted.
It also attracted a
total of US$1.08 billion in foreign direct investment (FDI), equivalent to
202% of the same period last year’s figure. Of the total, US$967 million
poured in 169 new projects, while of US$110 million was added to 53
operational projects.
At the meeting,
Chairman of the municipal People’s Committee Le Hoang Quan asked local
agencies to apply comprehensive measures to fulfil all set targets for the
year, focusing on stepping up disbursement.
He also urged local
departments to review the prolonged property projects, while seeking new
export markets for the city’s products.
Van Phong
Thermal Power Plant 1 taking shape
Once approved,
construction of the Van Phong Thermal Power Plant 1 is expected to be
completed by the end of next year.
Sumitomo is eager
to get the project underway and is intensifying its negotiations with the
Ministry of Industry and Trade (MoIT) to sign a build-operate-transfer (BOT)
contract and complete investment registration procedures, a company
spokesperson said.
The 2,640MW Van Phong
Thermal Power Plant 1 will span more than 350 ha in Ninh Phuoc commune at an
estimated price tag of US$3.8 billion.
To create
conditions more conducive to the attraction of investors, Khanh Hoa province
pumped VND150 billion into site preparation work for the project and an
additional VND135 billion for resettlement projects.
In recent years,
foreign investors have found BOT power projects in
In recent years,
foreign investors have found BOT power projects in
Most recently,
KEPCO group of the RoK has also showed keen interest in investing in Song Hau
3 power plant with a designed capacity of 2,000 MW.
Vietnamese
pavilions, exhibiting a wide array of quality Made-in-Vietnam goods, are
garnering the attention of many South African businesses at an international
trade fair in
Fifteen Vietnamese
businesses are showcasing their products, mostly farm produce, construction
materials, electrical equipment, pharmaceuticals, and handicrafts, at SAITEX
2014, which opened on June 21, attracting 45 countries and territories from
around the globe.
Notably, the
Vietnamese Trade Office in
More than 200 South
African importers have shown keen interest in the Vietnamese goods and are
eagerly inquiring about quality, price and import-export procedures in
Hanoi Department for
Industry and Trade Deputy Director Phan Tien Binh, who is also heading up the
Vietnamese delegation to SAITEX 2014, said the event provides an excellent
opportunity for Vietnamese businesses to develop sales leads and the show is
an effective marketing tool for them.
Vietnamese
Ambassador to South Africa Le Huy Hoang in turn expressed his pleasure with
the warm and positive reception the Vietnamese pavilions have received from
South African businesses.
He emphasised there
is a huge potential for expanding trade and cooperation between the two
countries in a host of areas and pledged to organize more trade promotion
events in the larger cities of
Japanese
firms sanguine on
Reedtradex reports
that many Japanese businesses have already confirmed their presence at
Vietnam Manufacturing Expo 2014, to be held at the
They have huge
expectations for business opportunities in
Seiji Masuda, Sanko
Fastem company Director General, spoke highly of the healthy business climate
in
“We are the leading
manufacturer of anchor bolts in
Masato Hayashi, a
sales manager for Hitachi Cable, said his firm is bullish on the huge
opportunities in the social infrastructure industries in
Municipal officials
have committed to building an open and transparent investment environment to
meet the requirements of the international integration process and have
gained the trust of Japanese investors.
Monthly CPI
rises in major cities
The month-on-month
consumer price indices (CPI) in the country's two biggest cities in June
increased after being down for several months, according to statistics
departments of Ha Noi and
The Ha Noi
Statistics Department reported that the capital's CPI in June edged up by 0.08
per cent over May and 1.16 per cent against the same period last year.
It said the
development of the CPI in June this year was similar to the rate in June last
year, and also increased after reduction in previous consecutive months,
reported the Thoi bao Kinh te Viet Nam (Vietnam Economic Times) newspaper.
Nine out of the 11
baskets of goods, which contribute to the calculation of the capital's CPI
data, saw an increase in prices this month. Among these, the prices of
building materials, electricity, tap-water and fuel reported the highest
increase of 0.84 per cent against last month.
After an increase
last month, the price of gas continued to surge since June 1 by
VND50,000-60,000 per 12-kg gas tank due to higher import prices.
This June also saw
a surge in the prices of cultural, sports and entertainment products, as it
did in June last year with a rate of 0.54 per cent because prices of domestic
and foreign tours increased. The prices of tickets for entertainment products
also increased on the occasion of International Children's Day on June 1.
The hot weather
also resulted in an increase in prices of categories of beverages and tobacco
products and of garments, hat and footwear products up to 0.45 per cent and
0.41 per cent, respectively, against last month.
Meanwhile, prices
of postal and telecom products dropped 0.17 per cent and categories of rice
and food products reduced by 0.27 per cent.
Gold prices in Ha
Noi dropped 0.82 per cent while the US dollar surged 0.36 per cent as compared
with last month.
HCM City Statistics
Department also reported an increase of 0.58 per cent in the city's CPI for
June against last month. The index had a year-on-year surge of 1.1 per cent.
The increase was
expected due to a decision permitting an increase in the cost of health care
services in the city since June 1.
Therefore, the
categories of medicine and health care services had the highest price
increase of 8.69 per cent among the 11 baskets of goods, which contribute to
the calculation of the city's CPI data, against last month. Rice and food
items came second with a rise of 0.53 per cent, as the price of food items
was up. But the price of rice reduced slightly due to stability in supply as
the Cuu Long (
The categories of
housing, building material, electricity, tap-water and fuel had the third
highest increase in prices at 0.44 per cent in June compared with May.
In June, gold and
US dollar prices in the city rose 2.7 per cent and 0.86 per cent,
respectively, against last month.
Quang Ninh
seeks investment
The Ministry of
Planning and Investment (MPI) has submitted to the Prime Minister a draft
decision on specific incentives given to the
According to news
portal Bizlive, under the draft, the MPI proposes to set up a pilot
State-owned finance and investment company in the province to better mobilise
investment capital to develop the province's infrastructure as well as other
important socio-economic sectors.
The company's model
will be the same as the HCM City Finance and Investment Company in HCM City
(HFIC).
HFIC, which is a
wholly State-owned company with a charter capital of VND5 trillion (US$234.74
million), is targeted to mobilise capital from domestic and foreign
organisations and individuals to invest directly or indirectly into the
city's prioritised sectors.
After three years
of operation, HFIC gained a profit of VND1.27 trillion ($59.62 million) and
its return on equity (ROE) averages 15.81 per cent.
According to the
draft, Quang Ninh will also get funds for its key projects. It will be also
allowed to advance investment capital of the next year for its projects based
on the projects' implementation process.
According to the
MPI, Quang Ninh will implement 312 projects with State funds to boost the
province's socio-economic development during the 2013-15 period.
Quang Ninh has an
important location in the pivotal economic zone in the North of Viet Nam. It
is seen as an important part of the economic development triangle in the
North (Ha Noi – Hai Phong – Quang Ninh).
The Government has
so far decided to develop the province to form big centres serving as international
exchange regions, so as to support provinces in the southern part of the Song
Hong (
It will be also
targeted to form big industrial centres, to develop high-tech industries such
as electronics, informatics and new material production.
Consumption goods
production, food processing and seaport economic development industries will
also be developed. The government will take the lead in international
cooperation and foreign investment attraction.
In recent years,
Credit
growth on track to hit target
With credit growth
showing a marked rise in the second quarter, the State Bank of
From only 1.8 per
cent after the first two months, the Commercial Joint Stock Bank for Foreign
Trade of Viet Nam's credit growth rose to 3.16.per cent by the end of May.
The Military Joint
Stock Commercial Bank has reported lending growth of around 6 per cent and
deposit growth of 10 per cent.
The SBV's
Dang Ngoc Khanh,
general director of SeAbank, said his bank expected credit growth to top 6
per cent in the first half of the year, or 50 per cent of the year's target.
Analysts at the
Viet Capital Securities Joint Stock Company said the central bank's credit
growth target of around 13 per cent for the year appears feasible.
Khanh said his bank
recently signed many large credit deals with companies and was waiting to
disburse the sums, he said. The bank has also lent hundreds of billions of
dong in retail loans, he said.
He attributed the
rapid credit growth to rising demand due to positive changes in the economy.
Business activities
are recovering while inventories are decreasing, the housing market is
reviving, and exports are rising, he explained.
Economists agreed,
saying that the recovery in credit growth was also due to the fact that the
measures adopted by the central bank to help companies battle their
difficulties have begun to take effect.
Two of the most
productive measures were to lower lending interest rates and bring banks and
companies closer together, they said.
The central bank
had urged banks to cut interest rates on businesses' old debts to below 13
per cent and the current rate cap for priority sectors from 9 per cent to 8
per cent.
As a result, by May
25 interest rates were cut by 0.5-1.5 per cent from the levels recorded late
last year.
Dr Tran Hoang Ngan,
a senior banking expert, told Thoi Bao Kinh Doanh that "the recent cuts
in interest rates are reasonable. But it would be better for credit growth if
the rate is further cut by 0.5-1 per cent."
He also stressed
the need for measures to improve aggregate demand in the economy, and help
companies access banks loans to ensure credit growth.
Analysts said since
96 per cent of the companies in the country are small or medium-sized, and
most of them face difficulties with administrative procedures and assets to
be pledged to borrow from banks, the Government needs to assist them.
If businesses
manage to overcome their difficulties they would become stronger and
contribute to the recovery of the economy and improving aggregate demand,
they added.
Forbes
magazine to host business meet
The monthly
business magazine Forbes Viet
The event's keynote
speakers will include Deputy Prime Minister of Viet Nam Vu Duc Dam, Forbes'
publisher Rich Karlgaard, and Malaysian billionaire Vincent Tan, founder of
Berjaya corporation.
"
"Forbes Viet
Nam's Annual Business Forum, the biggest business event this year, will
gather top Vietnamese and international business leaders and entrepreneurs to
engage in discussions on important economic and business issues, as well as
investment opportunities as Viet Nam enters a new chapter," a press
release from Forbes Viet Nam said.
"This will be
an opportunity for business leaders to discuss and explore investment
opportunities, and share business development experiences," Henry
Nguyen, chairman of Interactive Media, which organises commercial activities
for Forbes Viet Nam, said in a press release.
There will be more
than 20 leading speakers from the government, organisations such as World
Bank,
Three major topics
will be discussed: Fostering Economic Growth, Rising To the Top, and Capital
for Expansion and Investing in Innovation.
Human
resources key to the future
Speaking to the
media on the sidelines of the Manufacturing Expo — ASEAN's largest of its
kind — held in Bangkok from June 19 to 22, Viroj Sirithanasart, president of
the Thai Alliance for Supporting Industries Association, said Viet Nam can learn
from the success of countries like Japan and Thailand in developing their
industrial sector.
It could invite
foreign experts to help train human resources or send leading engineers to
other countries for on-the-job training so that they could come back and
train other technical personnel, he said, pointing out that this was how
He said Thai and
Vietnamese companies and organisations could work together to improve the
skills of Vietnamese workers.
Suttisak Wilanan,
project director of Thai Reed Tradex Company, the event organiser, said
Vietnamese companies should invest more in modern technologies to improve
their competitiveness and develop the country's industrial sector.
Exhibition and
trade shows should be seen as opportunities for Vietnamese producers to
update their technologies and managerial capacity to sharpen their
competitive edge, he said.
Boonlert Chodchoy,
managing director of Thai company C.C.Autopart Co., Ltd, said the emergence
of
Besides Japanese
and Korean investors, more and more Thai enterprises were also looking for
opportunities to invest in
The abundant labour
force and policies to boost the industrial sector were also among factors
attracting Thai companies, he said.
His company would
take part in Metalex Viet
Masashito Kishi,
general director of Sansei Industry Viet Nam Co., Ltd based in the
Despite
difficulties in sourcing raw materials,
Dredging
clears waterway route
Deputy Prime
Minister Hoang Trung Hai on Saturday attended the inauguration of the second
phase of the Soai Rap channel dredging project in
Started in 2013,
the project cost nearly US$131.6 million with over $103 million financed by
The 54-km channel
is equipped with warning systems, marking buoys and other devices, allowing
50,000 deadweight tonnage vessels to traverse ports in
In the future, it
will be dredged to the depth of up to 12 metres in service of 70,000
deadweight tonnage vessels.
Speaking at the
event, Hai said the project formed part of the national maritime economic
development strategy by 2020.
The navigation
route in
According to
information from the Sai Gon Port Container Terminal, following the
inauguration, at least five shipping companies have announced they would open
direct routes from
The same day, the
Deputy Prime Minister visited the Da Phuoc Solid Waste Treatment Complex in
He valued the
cooperation between the municipal authorities and the operator in promoting
the modern waste treatment method, which helps reduce environmental
pollution.
The first phase of
the $150 million project was completed with a 30-hectare landfill that can
handle 10,000 tonnes of waste per day. The complex is currently treating
3,000 tonnes of waste per day discharged by
Vietnam
Railway customer service to improve, vows new director
The new general
director of the Vietnam Railways Corporation (VRC) Vu Ta Tung vowed to
improve customer service, which has been widely complained about in the past.
“We are aware of
the importance of putting customer first when it comes to the development of
the country’s railway sector,” Tung said.
He noted that the
group has seen a long-term decrease in the market share, from 60% before 1975
to just 10% today.
He added that
trains still rank among the most popular means of transport, and it is time
to increase standards in the sector, and in order to achieve this goal, there
will need to be changes in pricing and staff behaviour. To this end, he
called for support to attract more investment into the sector.
“It’s obvious that
private investment will flow into profitable sectors. So, in order to attract
more investment, we need to make the sector more attractive,” he said.
He said that,
besides making a profit, VRC is also trying to maintain their social
responsibilities, including the transport of goods to remote areas.
Currently only
three railway routes, namely Saigon-Nha Trang, Hanoi-Vinh and Hanoi-Lao Cai
are operating efficiently, while the five remaining routes are incurring
major losses, requiring government compensation.
“Our goal will be
to put the customer first in all our business strategies. We also need our
leaders and staff members to try to really understand the customers' needs in
order to better serve them," he added.
Strong
inflow of overseas remittances evidence global recovery
Overseas Vietnamese
(OV) remittances back to the homeland are expected to remain strong
throughout 2014,thanks to the solid economic recovery underway in many
countries like the US, Canada and Australia.
Official statistics
reflect that remittances in the five months leading up to June of this year
are continuing on an upward tick consistent with the trend experienced in
2013.
Nguyen Mien Tuan,
Deputy Chairman of Sacombank's executive board, said international
remittances transmitted to Vietnam via his bank hit nearly US$1 billion in
the first five months;a10%jump compared to the same period last year.
Sacombank is
projecting it will process a record cumulative total remittances exceeding
US$1.9 billion by the end of 2014.
Remittances channeled
through East Asia bank last year rose 10% to US$1.53 billion, and the bank
expects the remittance inflows will increase 20-25% this year.
Deputy Director
Nguyen Hoang Minh of the
The figure is
likely to reach US$2 billion in the first half of this year and US$5 billion
by year’s end, he said, outpacing the US$4.85 billion collected in 2013.
Minh said the
remittances are principally sourced from the
He forecast a
monthly growth of 20-25% in several months leading to the lunar New Year
holiday.
‘Tra fish
decree’ remains controversial
Controversies over
Decree 36/2014/ND-CP on farming, processing and exporting tra fish, usually
called “Tra fish Decree,” are still prevalent although the legal document,
issued at the end of April 2014, will come into effect on June 20.
The Ministry of
Agriculture and Rural Development, the Vietnam Pangasius Association (VN
Pangasius), the Directorate of Fisheries and relevant agencies had a meeting
with the Vietnam Association of Seafood Exporters and Producers (VASEP) to
look into petition by VASEP regarding the decree. However, parties found no
common voice at the meeting that took place on Monday in the Mekong Delta
city of
Nguyen Huu Dung,
chairman of VASEP, said that the decree in general was agreeable, but certain
provisions therein need to be revised or even abolished before the decree
took effect.
Dung claimed that
the regulation on the ice content in tra fish fillets should be removed.
Almost all
importers of
On the contrary,
Tran Bich Nga, deputy chief of the National Agro – Forestry – Fisheries
Quality Assurance Department (NAFIQAD) that helped prepare the decree,
insisted on the need of the regulation on the ice content.
The regulation is
needed for maintaining the prestige of local exporters, she said.
Besides,
participants in the meeting also argued against another regulation that
requires tra fish exporters to seek approval of VN Pangasius before making
shipments.
Nguyen Thi Anh,
chairwoman of Ngoc Xuan Seafood Corp in
Registering tra
fish export contracts with VN Pangasius does not help, but on the contrary,
it could unveil business secrets of enterprises as VN Pangasius also has its
own tra fish export firm, Dung of VASEP asserted.
High-tech
firms unable to meet localization targets
Representatives of
some enterprises at the Saigon Hi-Tech Park (SHTP) in HCMC said that they
would fail to realize the ratio of local content of 25% next year as required
by the SHTP authority due to undeveloped supporting industries.
Speaking at a
conference organized by SHTP and the HCMC Investment and Trade Promotion
Center last week, Le Bich Loan, deputy head of SHTP, said that as enterprises
had reached an average localization ratio of around 20%, the park management
was looking to 25% next year and 40% in 2020.
But localization
has proved hard for a number of enterprises at the SHTP. Tran Tien Dat,
managing director of Datalogic Vietnam Co. Ltd., admitted it was unlikely for
his firm to reach the goal.
The bar code
scanner producer has posted a five-fold rise in revenue in the past five
years, from nearly US$3 million in 2009 to over US$160 million now. The firm
has been seeking domestic suppliers to raise local content to cut prices but
it has not found suitable partners.
Datalogic has
realized a localization ratio of less than 4% and has mainly bought such
products as packaging and simple plastic components in
A representative of
Intel Products Vietnam Co. Ltd. said that its new business scopes required
lower costs and faster production. Therefore, the company has been always
looking for domestic suppliers to meet the requirements.
However, the
company has been able to find only around 20 domestic suppliers for simple
parts, so its localization ratio is now just 10%.
Intel Products
Vietnam is expanding its chip assembly and test plant and has higher demand
for domestically-made components. Domestic suppliers will have the
opportunity to supply parts for Intel factories globally when partnering with
Intel Products Vietnam, the representative said.
According to the
management of SHTP, around 40% of the enterprises at the park have reported
localization ratios of up to 10%.
Osato Kazuhiko,
director of the Japan External Trade Organization (JETRO) in HCMC, said a
survey showed that domestic firms were able to meet over 30% of the material
and parts needs of Japanese firms in this market last year, which was equivalent
to half of that in
Corporate
representatives at the conference said that
Last year, the
city’s high-tech product exports hit US$2.93 billion, accounting for 14.6% of
total export value (excluding crude oil). Enterprises at SHTP contributed
over US$2.7 billion of the total.
Thaco
commissions huge container ship
Vietnamese
automobile firm Thaco has commissioned a big container ship plying HCMC-Chu
Lai route.
On the launch day
last Friday, Truong Hai Star 3 carrying its first shipment of 320 containers
and 1,000 tons of coiled steel docked at Chu Lai-Truong Hai port in the
central coast province of Quang Nam.
The total
construction cost of the ship and containers is VND78 billion. This is the
third such vessel built by Thaco to service the domestic route between Chu
Lai of Quang
The 8,015 DWT
vessel, which meets European standards and is registered with
On the same day
Thaco introduced its logistics service package which comprises road and sea
transport, warehousing, distribution and bonded warehousing.
Chu Lai-Truong Hai
port and logistics complex covers a total area of 173 hectares, including 56
hectares of industrial land, 71 hectares of warehouse, and 46 hectares of
road. The total cost of phase one of this complex is VND387.5 billion and
VND127 billion in the second phase. By the end of this year the firm will
have spent VND515 billion on the complex.
Ha Tinh:
Ground broken for sand-based seed shrimp farm
The Thong Thuan
aquatic company started construction of a sand-based shrimp farming facility
in the central
The 3.3 million USD
facility will sprawl over 7.1 hectares that accommodate 29 farms of various
sizes.
The company expects
that it will annually generate 3.5 billion seed shrimp for breeding.
Boasting a
coastline of 137km, Ha Tinh has excellent potential for developing
aquaculture.
It has so far
allocated over 7,200 hectares for the sector, especially the farming of
high-yield shrimp along sandy banks.
Binh Duong
successful in attracting FDI for industrialisation
The arrival of FDI
projects have contributed significantly to increasing the industrial
proportion of Binh Duong’s economy to 62 percent at present, helping it
basically meet industrialisation standards.
The southern
Mai Hung Dung,
director of the provincial Department of Planning and Investment, reported
that 2,295 FDI enterprises with a total investment of nearly 20 billion USD
are running in the locality, of which many have registered to add more
capital.
In this year’s
first half, Binh Duong lured nearly 1 billion USD in FDI with over 600
million USD added to 56 underway projects, he said.
Notably, the
Japan-invested Saigon Stec company based in the Vietnam-Singapore Industrial
Park 1 added additional 175 million USD to its camera circuit board
production project, raising its total investment to 340 million USD. The move
has enabled it to produce 224 million products per year, said Dung.
Le Thanh Cung,
Chairman of the provincial People’s Committee, has reiterated that the
province has regarded foreign and domestic investors alike an important
resource spurring its socio-economic development.
Over the past
years, the province has worked hard to remove obstacles for enterprises along
with constantly improving its investment environment to ensure investors’
effective operations, he said.
The locality’s
healthy, equal and positive environment has earned foreign investors’ trust,
affirmed Cung.
In addition, a
well-built comprehensive infrastructure system deserves keen interests from
investors, he stated, noting the clearance of thousands of hectares of land
to host new projects and expanded ones.
FDI projects are
expected to do more for Binh Duong’s industrialization and modernization
process and further raise local people’s living conditions.
A delegation led by
officials from HCM City's Department of Culture, Sports and Tourism will take
part in the 20th International Trade Fair for Travel & Tourism- OTDYKH
Leisure 2014 in Moscow from September 16-19.
The departments of
culture, sports and tourism, tourism promotion centres and travel companies
from Ha Noi, Da Nang and HCM City and the provinces of Khanh Hoa, Ninh Thuan,
Binh Thuan, Ba Ria-Vung Tau and Lam Dong will promote marine resort tourism
products to the Russian market, which has more than 19 million outbound
travelers per year.
The Vietnamese
delegation will also meet with local partners from
OTDYKH Leisure, the
leading international autumn trade fair for leisure travel in
Firms turn
to agriculture alternatives
While
This year, the
company will sign several export contracts of forestry products, worth over
US$10 million each. Thu Duc has also been pushing the export of woodchips,
materials that serve the paper industry, and cassava for making alcohol to
Japanese companies.
Hieu said that the
turnover of agribusiness may be lower than that of property projects;
however, agribusiness was likely to have lower risks .
Thu Duc Housing is
not the only company with such an emerging trend with traditional business
lines of trading, but investment and property companies are also struggling
to survive.
An Duong Thao Dien
Real Estate Trading Investment JSC made its capital contribution to Ascentro
Trading Investment JSC, which specialises in trading farm and forestry
products and live animals.
Hung Thuan Group
Corp, which specialises in investing, developing and trading real estate,
established an in-house Vina Yen Eco Investment JSC for specialising in
swiftlet farming, fish farming and orchid planting in the southern
Vina Yen's chairman
Lam Truc Nho said that revenue from swiftlet farming was high and stable with
a good provision of export to
In fact,
This was a good
opportunity and lucrative new field that should not be missed, noted Bui
Phap, chairman of Duc Long Gia Lai Corp.
Earlier, Tan Tao
Group established a research and fragrant rice export company (ITA Rice) to
cultivate rice paddies on 60.3 hectares in the Cuu Long (Mekong) Delta
At the shareholder
meeting in April, Hoang Anh Gia Lai Group (HAGL), previously a major player
in the real estate sector, announced that agribusiness will make up over 50
per cent of the corporate's revenue this year. This sector accounted for 60
per cent of the total revenue last year.
HAGL's president
Doan Nguyen Duc said that one of the key factors to success was in applying
high technology in every stage of agricultural production, from seeding and
harvesting. Duc added that technology application cut costs of chopping cane
to VND30,000 ($1.3) per tonne, instead of the average cost of VND200,000
($9.3) in
Nguyen Dinh Bich
from the Trade Research Institute noted that investing money in agribusiness
was a wise decision, as this sector was likely to grow as a result of the
upcoming Trans-Pacific Partnership Agreement.
Bich pointed out
that serious investors should not feel compelled to invest large amounts of
capital into agriculture projects, and they can recover their investment
capital and make a profit at a reasonably short period.
However, land fund
is viewed as a hindrance to the development of an agriculture project and a
substantial agribusiness economy.
Dang Kim Son,
director-general of
Moreover, taxation
policy makers should cut or minimise relevant taxes and fees for agribusiness
companies and deduct value-added taxes for imports of essential production
tools.
Source: VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
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Thứ Ba, 24 tháng 6, 2014
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