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BUSINESS
IN BRIEF 10/7
The loans with an
interest rate of 0.1% per year and payment duration of 40 years (including a
grace period of 10 years) aim to implement a US$117 million project to build
Hung Ha bridge and a US$45 million project to develop Hanoi University of
Pharmacy into a national university of regional standards.
Under the framework
agreement worth US$1.2 billion for 2012-2015, these two loan agreements
are part of follow-up seven signed agreements, bringing the Korean
Government’s total preferential loans for
Earlier, in the
2008-2011 period, the RoK provided over US$1 billion in aid to
The Ministry of
Finance spearheaded negotiations with the Turkish Government during a recent
working visit to the Middle Eastern country from July 6-9, and signing
a double tax avoidance agreement.
They also signed
agreements providing for cooperation in customs and financial management.
At a working
session with
Tuan underscored
the fact that the double taxation of profits will help boost the expansion of
cooperation between the two nations and reassured his host that
After signing the
agreement, Tuan expressed hope that
For his part,
Finance Minister Cantimur spoke highly of the recent signing of an investment
encouragement and protection agreement and a cooperative document bysmall and
medium-sized enterprises (SMEs) of both nations.
He affirmed that
the signing of the double tax avoidance agreement is of great significance
and will bring benefits to businesses of both nations, especially in the
context of the rapid development of information technology.
Later, the host and
guest officially signed the double tax avoidance agreement it the witness of
Vietnamese ambassador to Turkey Nguyen The Cuong and representatives from
Ministries of Finance of both nations.
Industrial
production index may surge 6.5%
Despite facing many
difficulties, the index of industrial production ticked up in the first six
months.
The Ministry of
Industry and Trade (MoIT) predicts it may surge 6.0-6.5% in the second half
of the year.
To achieve this
growth, the focus will be on using effectively investment capital, fully
exploring production capacity and market demand.
At the same time,
incentive policies should remain the focus to attract foreign investment and
boostdomestic production in the fields of support industry, mechanical
engineering, agriculture, chemicals, and light industry.
According to the
General Statistics Office (GSO),
US$446
million allocated for IT industry
Despite
macroeconomic challenges,
IDC revealed that
about 41% of the investment was allocated for developing hardware services,
which are facing difficulties due to low demand from other sectors like
banking, insurance, production, and retail.
In addition, the
US$71.8-million IT and financial sector modernization project undertaken by
the State Bank of Vietnam (SBV) is also expected to provide fresh impetus for
the IT industry this year.
Vietnam
imports 25,000 cars in H1
The volume of
imported cars was highest in May, a total of 5,000 units worth US$106
million. The strong rebound showed that the import value of CBU cars has been
on the rise since earlier this year.
The GSO estimated
that volume in June would be similar. Value is expected to decline to US$84
million on imports of luxury sedans and sport utility vehicles.
CBU car imports
were up 75% in the first five months, while locally assembled automobiles saw
only a 23% year-on-year increase, according to the Vietnam Automobile
Manufacturers' Association (VAMA).
Vehicle imports are
increasing this year due to a tax cut that took effect on January 1. As part
of the ASEAN Trade in Goods Agreement (ATIGA), the import tax on cars from
ASEAN countries is cut in half. The tax will drop to zero when
VNPT
International opens rep. office in Cambodia
The Vietnam Posts
and Telecommunications Group-International (VNPT-I) on July 7 inaugurated its
representative office in
At the ceremony,
VNPT Chairman Pham Long Tran said the opening of the new facility marks a
milestone in the group’s business strategy for expanding overseas markets,
including
He also confirmed
that VNPT will strengthen cooperation with
On the same day,
VNPT-I signed major economic contracts to provide IPLC, IPLC transit, IP Port
transit services for leading Cambodian telecom companies such as Telecom
In recent years,
VNPT-I has developed business cooperation programmes with its partners in
EU to check
quality of bivalve molluscs in Vietnam
The European
Commission Food and Veterinary Office (FVO) recently announced it will
perform quality control inspections over processing of bivalve molluscs from
September 9-18.
Tran Bich Nga,
Deputy Head of the National Agro-Forestry-Fisheries Quality Assurance
Department (NAFIQAD) in turn has asked all pertinent quality management
agencies of agro, forestry, and aquatic products across the county to step up
efforts to ensure businesses are in full compliance with EU food and safety
regulations.
Key areas under the
microscope include programmes on hygiene and safety control at breeding
farms, procedures for granting certification of origin for products from
controlled areas, and measures to maintain bivalve molluscs inside the
controlled areas.
In addition,
domestic businesses also need to maintain detailed documentation on shipments
of bivalve molluscs, Nga said.
This is a basic
requirement for which
NAFIQAD also
requested the Centre for Quality of Agricultural Products provide the list of
test methods on microorganisms, toxic algae, toxins and environmental
pollutants and specific information about proven methods for food safety
which were implemented in regional centres.
All of urgent
requirements must be completed before July 10.
Newly-established
businesses up 19.3%
As many as 37,315
businesses were established in the first half of 2014 with a total registered
capital of VND230,924 billion, up 19.3% from the same period in 2013, the
Government news portal reported.
Some 33,454
businesses were dissolved or suspended operations in the first half, up
16.5%. The number of enterprises resuming operation reached 8,322.
Regarding business
structure, in the first half, those involved agriculture, forestry and
aquaculture saw a rise of 27.5%, real estate 38.7%, logistics 62.6% and
finance, banking and insurance 14.9%.
Most of the new
businesses are located in
Singaporean
investors keen on local real estate market
Singaporean
companies are highly confident that the
Linson Lim
emphasized that the rapid urbanization process, improvements in
infrastructure, and decreased interest rates in
The Estella project
is jointly venture by
“This demonstrates
the company’s long-term commitment to invest in the Vietnamese market,”
Linson Lim said.
Its first phase of
construction 719 luxury flats have been completed, which have so far sold
out. The second phase is expected to finish early next year with an
additional 500 flats.
The Estella project
is one of 18 projects licensed to construct around 22,000 flats and offices
in
The other projects
include an International Centre and
The 2014 MTA
Vietnam Show, the largest on manufacturing solutions in the country, got
underway in
Jointly organised
by the Singapore Exhibition Services and the Vietnam Chamber of Commerce and
Industry’s Exhibition Service Co. Ltd, the four-day exhibition showcases
products and machines in metal cutting and shaping, and tools for
It also gathers
world-leading brands like Mazak, Trumdf, Makino, Hwacheon and DMG Mori.
This annual event
offers a venue for businesses to seek the latest services and technologies of
precision engineering, machine tools and metalworking.
Several seminars,
including one on how to increase the competitiveness of
Danang and
Lao localities boost cooperation
A delegation from
the Lao Government Inspection Authority led by Inspector General Bounthong
Chitmany on July 8 paid a working visit to the central city of Danang.
At a reception for
the Lao delegation, Danang city People’s Committee Chairman Van Huu Chien
introduced the city’s geographical location, natural conditions,
socio-economic achievements in recent years as well as the result of
cooperation between Danang and Lao localities.
The two sides
exchanged views on issues related to inspection, settlement of complaints and
denunciations, anti-corruption; law-making process, training of inspectors
and anti-corruption solutions for Lao localities and Danang.
Danang has so far
signed 29 agreements and memoranda of understanding with Lao localities
aiming to increase the exchange of visits, facilitate production and business
activities and boost agricultural development, health, education and culture.
Danang’s export
turnover to
Meanwhile, Lao
enterprises display their wares at exhibitions in the framework of East-West
Economic Corridor (EWEC) Week taking place every year in Danang. Four
Danang firms are investing in
In terms of
education, Danang has also provided scholarships for students in the southern
provinces of
Last year alone,
the city granted 43 scholarships to students from southern Lao provinces.
Vietnamese
businesses eye northern Lao market
Entrepreneurs in
The statement was
made on July 8 by Mai Thi Thuy, Hanoi Women Entrepreneurs Association
Chairwoman, at an exchange between Vietnamese and Lao businesses organized by
Consulate General of Vietnam in
“Over the past 19
years Vietnamese businesses have highly penetrated the northern Lao market in
all sectors of the economy,” she said.
At the conference,
Vietnamese and Lao delegates highly appreciated the importance of promoting
trade and investment in all aspects, especially in the fields of production,
tourism and services in
Vietnamese
businesses have poured approximately US$302 million (equivalent to 5.9% of
At the signing
ceremony in
Over the past year,
the ministry has resolutely restructured the agricultural sector by
supervising planning, applying science and technology, training human
resources, building proper policies and adopting new approaches in
agricultural development.
Ms. Victoria
Sutherland, Chargé d’affaires of
A large number of
representatives from the Vietnamese business community attended a seminar in
Attendees had a
chance to meet and hold exchanges with US consultants and legal representatives
and learn about the investment environment and specific cooperation
opportunities in the
In recent years,
The seminar was the
result of a joint effort by the
*** The same day, a
business forum between
Delegates to the
forum were informed about investment policies in both countries. They also
inquired into market information and partnership to boost cooperation in such
fields as food, beverage, tourism, beauty and heath care salons, restaurant
and hotel management.
A high-level delegation
from
The visit aimed to
explore business opportunities in
Saut P. Hutagalung,
General Director of Fisheries Product Processing and Marketing at the
Indonesian Ministry of Marine Affairs and Fisheries (MMAF) said that his
nation highlighted
From February to
June,
Saut P.Hutagalung
emphasised that this is a proper time for
State-owned
The highest-ever
price of 92 RON in
The price of
high-grade 95RON also increased by VND410 to a record high of VND26,410 per
litre.
According to
Ministry of Finance statistics, the base price of 92 RON, the most commonly
used form of gasoline in Vietnam, was now VND918, higher than the per litre
selling price.
Its diesel price
also went up by VND294 per litre to VND22,820, or US$1.08 per litre, while
its kerosene price increased by VND413 per litre to VND22,950, or US$1.09,
per litre.
An
ambitious target for industrial production
A long-term
industrial development strategy recently approved by the Prime Minister
targets an industrial production to GDP ratio of over 50% by 2030 and full
integration into the global value chain by 2035.
General Director of
the Industrial Policy and Research Institute Duong Dinh Giam says the
industrial sector has laid out a highly detailed and specific roadmap for
achieving its goals for 2030.
The overall framework
calls for average annual industrial value added growth of 6.5-7% in the years
leading up to 2020 and 7.5-8% by 2030, with average industrial production
value growth of 12.5-13% by 2020 and 11-12% by 2030.
Upon successful
implementation, Giam says, that the proportion of industry and construction
to GDP will be 42-43% by 2020 and 43-45% by 2030.
By 2020 the
proportion of the manufacturing and processing sector will make up 85-90% of
total industrial production value, and the value of high-tech products will
account for 45% of national GDP. The corresponding figures by 2030 will be
90-92% and over 50%.
Minister of
Industry and Trade Vu Huy Hoang says the industrial sector aims to have
advanced technologies fully installed in all facets of the industry by 2030,
elevating its capacity to be fully competitive in the global marketplace in
terms of quality, quantity and price.
Hoang underscores
the fact that last year
As a case in point,
Minister Hoang says the wood processing industry has distinct advantages
favouring both industrial production and export growth, The country has
relatively untapped plantation forests and high quality wood products that
world consumers highly appreciate.
Vietnamese timber
products with their high quality and clear country of origin (C/O) are in
high demand globally, which creates an incentive for the industry to fulfill
its set targets.
This is the first
time the national industrial development strategy has incorporated the wood
processing industry.
This is a good
signal for the industry which faces many opportunities in the global export
market, says Huynh Van Hanh, Vice Chairman of the Ho Chi Minh City Handicraft
and Wood Industry Association (HAWA).
No country in the
world which both develops the wood processing industry and raises forest
coverage likes
To obtain the set
goals, Giam suggests that the sector should strictly implement important
measures, such as selective investment attraction mechanisms to weed out the
weak investment groups in favour of attracting strong and highly reputable
multinational groups into key projects.
Procedures to
screen technologies so that only projects with proven or technologies that
have been thoroughly researched and have a high probability of success are
implemented is a key measure.
Clarifying the list
of sectors that fully or partly receive investment incentives is of prime
importance, he says, adding this will allow for much improved control in
developing the support industry and services.
Last but not least,
Minister Hoang notes that the strategy does not focus on State-owned groups
and corporations but on the non-state sector towards a target for joining the
global value chain to supply industrial products to the world market.
Lotte Mart
markets Vietnamese goods in RoK
Lotte Mart, one of
the leading Korean food and shopping services retailers, is seeking
high-quality Vietnamese products for export to its supermarkets in the
The group expects
first shipments of Vietnamese products will be delivered to the RoK in late
2014 or early 2015, Lotte Mart
Roh said this is
the group’s strategic step, meeting its commitment to increase sales of
Vietnamese goods and promote Vietnamese brands in the RoK.
Deputy Minister of
Industry and Trade Ho Thi Kim Thoa, for her part, said her ministry welcomes
Lotte Mart’s business strategy and creates favourable conditions for the
group to realise its plan.
Lotte Mart has
invested approximately US$1 billion in its operations in
Shrimp, prawn
demand lifts seafood exports
The export value of
seafood in the first half of this year grew strongly due to a sharp increase
in shrimps and prawns.
The Ministry of
Agriculture and Rural Development said the value of seafood exports rose by
24.2% to US$3.45 billion, of which 48% to 49% came from shrimps and prawns.
The Vietnam
Association of Seafood Exporters and Producers said shrimps and prawns were
strongly sought after by the
Earlier this year,
disease in many shrimps and prawn supplies from other countries led to a boom
in the domestic market, which was unaffected.
Tran Van Pham,
General Director of Soc Trang Seafood Joint Stock Company, the second largest
shrimp exporter in
At the end of June,
in the Cuu Long (
Pham said that high
prices for shrimp and prawn had forced some importers to delay buying
Vietnamese products.
The total export
value of seafood this year is expected to reach US$6.9 billion, which
includes US$$3.5 billion from shrimp and prawn exports, similar to that of
2013.
Dollar
credit growth safe: SBV
There is no need to
worry about credit growth in foreign currencies in the first half of this
year as the ratio of dollar loans versus mobilisation is within its safe
threshold.
Head of the central
bank's money policy department Nguyen Thi Hong made the confirmation to the
local press on July 6.
Ministry of
Planning and Investment statistics showed that credit in foreign currencies
grew by 10.51%, while the growth of dong loans was only 0.68% as of June 20.
Hong listed three
factors that are supposed to ensure the liquidity of foreign currencies, in a
response to an earlier report of the National Financial Supervisory Council
which said that credit in foreign currencies was bearing certain pressure.
Firstly, the dollar
loans in May increased by 9.35% against the end of 2013, but increased by
1.34% only, year over year.
Secondly, taking
into account all deposits and savings from domestic accounts and other
capital sources, the ratio of dollar spending is only between 50% and 60%.
Thirdly, most of
the dollar borrowers are companies which have shown proof of having dollar
resources to repay the loan. Otherwise, dollar loans are only granted to
companies in priority sectors such as exports, agriculture, hi-tech applied
agribusiness and auxiliary industry.
"While the
overall credit growth is low, the central bank flexibly allows commercial
banks to expand credit in foreign currencies," Hong said.
The State Bank of
Vietnam (SBV) reported that the overall credit growth in the first six months
was 2.3%. The banking system now has six more months to achieve 12% credit
growth by the end of the year.
Hong said that
credit in foreign currencies significantly contributed to the overall credit
growth. In May 2014, Hong said if dollar loans had not increased by 9.35%,
the entire credit would not have reached 1.51%.
SBV reports showed
that the borrowing costs of dollar loans were 3 to 4 percentage points lower
than that of dong loans. This has been blamed for the steady increase of
dollar loans.
The annual interest
rates charged over privileged loans hover around 7% to 8%. For manufacturing
sectors, the rates are 9% to 10% for short-term loans and 10.5% to 12% for
mid- and long–term loans per year. For dollar loans, the popular lending
rates are between 3% to 7% annually.
Although the recent
rise of foreign credit is in line with the State Bank's direction, Hong said
that the bolstering by dollar loans was a short-term policy.
The central bank
will go ahead with measures for de-dollarisation of
Economists have
urged the central bank to cut the dong interest rate further, in order to
ease the capital cost burden on businesses. The bank said it would take time
to consider the issue thoroughly for the sake of the dong position in the
long run.
Last week, Pham
Xuan Hoe, Deputy Head of the central bank's Monetary Policy Department, said
that the total capital supply increased by 6% as of June 25. Roughly 87% to
90% of the capital resources in banks went to Government bonds and State
Treasury bills, though they should go towards supporting economic recovery
instead.
Samsung
seeks local suppliers
The rising demand
of foreign direct investment enterprises for raw materials has given local
companies the chance to become suppliers, but they must be more active in the
race.
According to the
Vietnam Association of Foreign-Invested Enterprises, Samsung Vietnam, the
electronic giant from the Republic of Korea with an approximately US$6.8
billion investment in the country, is expected to meet with around 100
Vietnamese companies next week to work on raw material supplies, after having
recently got approval to develop a US$1 billion plant in the Samsung Bac Ninh
Hi-Tech Complex.
The association's
vice president Nguyen Van Toan said that Samsung Vietnam will place their
demands and requirements for local companies wishing to become its suppliers.
He said that
Samsung will also provide support to Vietnamese companies in meeting the
standards set by FDI enterprises and engaging in the supply chain.
If successful,
local companies will benefit a lot from becoming a link in Samsung's value
chain, Toan said.
Contributing
US$23.9 billion to
However, amid the
rising FDI inflow in the support industry, whether local companies can grab
the opportunity to become raw material suppliers remained a difficult
question.
In the garment and
textile industry, for example,
A Japan External
Trade Organisation (JETRO)’s survey in March showed that the localisation
rate of Japanese enterprises in
The rate was low
compared to 64% in
SMEs not
yet ready for VN-EU FTA: officials
Small and
medium-sized enterprises (SMEs) are still not prepared for the
Deputy Director of
the Central Institute for Economic Management, Vo Tri Thanh said, though the
date is fast approaching, SMEs are not really prepared for the bilateral
agreement.
Echoing Thanh’s
view, Deputy Director of the Ministry of Industry and Trade (MoIT)'s European
Market Department, Tran Ngoc Quan said that big enterprises are well aware of
the agreement as they have taken active part in the negotiations. However,
that does not hold true with SMEs.
Quan said that
currently, MoIT makes public all information about the agreement to business
associations, which then introduces these to its members. However, many SMEs
are not association members, due to which they do not have updated
information about the agreement.
To make it easy for
SMEs to access the information, MoIT is trying to publish all the details of
the agreement on its website, Quan said.
The SMEs will be
caught napping on the EU market unless they actively prepare for the
integration right now, Quan warned.
According to MoIT,
Vietnamese firms should spend more time studying EU requirements and adjust
their product and production processes to comply with such requirements. The
reason for that is the EU imposes many trade regulations to protect human
health and safety, animal and plant life, and health and the environment.
These include
REACH, the European Community Regulation on chemicals and their safe uses,
FLEGT or Forest Law Enforcement, Governance and Trade aiming to reduce
illegal logging, and IUU, the regulation against illegal fishing.
Many experts
believe that the Vietnam-EU FTA is one of
When the agreement
is approved,
Hanoi
proposes service, tourism cooperation with Kagoshima
Vice Chairwoman of
the Hanoi People’s Committee Nguyen Thi Bich Ngoc on July 7 suggested
cooperation with Japan’s Kagoshima city in services, tourism and farm produce
trading at a reception for Kagoshima Mayor Hiroyuki Mori.
Ngoc said that
Basing on such
facts, she suggested the two cities consider cooperation in these spheres.
In response, Mayor
Hiroyuki Mori described
According to the
municipal People’s Committee, there are 478 Japanese projects across Hanoi
with total capital of some US$4.5 billion, 72.8% of which are poured into
manufacturing automobiles and motorcycles, electronic and mechanical
products, and building materials.
From now to 2020,
the capital plans to step up attraction of foreign investment, especially
those from
Hanoi
proposes service, tourism cooperation with Kagoshima
Vice Chairwoman of
the Hanoi People’s Committee Nguyen Thi Bich Ngoc on July 7 suggested
cooperation with Japan’s Kagoshima city in services, tourism and farm produce
trading at a reception for Kagoshima Mayor Hiroyuki Mori.
Ngoc said that
Hanoi is prioritising services and tourism, and it has strength in
agricultural production. Meanwhile, one of Japan’s advantages is maritime
services.
Basing on such
facts, she suggested the two cities consider cooperation in these spheres.
In response, Mayor
Hiroyuki Mori described Hanoi as an active and potential city, and stressed
that Kagoshima will facilitate its business circle’s access to Hanoi’s
market.
According to the
municipal People’s Committee, there are 478 Japanese projects across Hanoi
with total capital of some US$4.5 billion, 72.8% of which are poured into
manufacturing automobiles and motorcycles, electronic and mechanical
products, and building materials.
From now to 2020,
the capital plans to step up attraction of foreign investment, especially
those from Japan, into high technology.
Dak Lak
coffee shipped to 60 countries, territories
Coffee, the key
export of the Central Highland province of Dak Lak, is capturing an ever
increasing share of the global market as it is now exported to more than 60
countries and territories.
Among the markets,
31 have an export value in excess of US$1 million each while nine have
obtained values in excess of US$10 million each including Germany, Japan,
Italy, the US, Spain, the Republic of Korea, Switzerland, France and Russia,
the provincial People’s Committee reports.
Since early this
year, more than 138,000 tonnes of coffee beans have been shipped abroad,
representing an increase of 9.2% over the same period last year.
Import-Export 2/9
Dak Lak Company is one of the province’s leading coffee exporters. It
directly sells around 85,000 tonnes of processed coffee to 48 countries and
territories annually.
To stabilise the
market, export businesses have teamed up with farmers to produce pure coffee,
meeting the increasing demand for high-quality products of global importers.
Currently, more
than 41,000 farmers plant coffee on nearly 61,460 hectares to produce around
271,150 tonnes of high-quality coffee beans annually, in compliance with
certificate guidelines, such as the Common Code for the Coffee Community
(4C), the Rainforest Alliance (RFA), Fairtrade, and UTZ Certified.
The province has
established five sustainable coffee production alliances with the
participation of more than 1,087 households. The alliances are creating a
solid chain between farmers and businesses in production, trading and related
services like processing and exporting.
Contracts
to export 4.7 million tonnes of rice reached
Businesses have
signed contracts for the export of 4.7 million tonnes of rice, according to
the Ministry of Industry and Trade (MoIT).
The Vietnam Food
Association (VFA) said that through the end of June, Vietnam has delivered
more than 3 million tonnes of rice worth an estimated US$1.367 billion
to foreign partners.
The Ministry of
Agriculture and Rural Development (MARD) said that China remains
Vietnam’s largest rice importer with 40.46% of market share.
Notably, the
Philippines market has witnessed a sharp increase in importing Vietnamese
rice against last year’s same period, ranking second with market shares of
20.66% followed by Ghana (4.39%) and Singapore (3.63%).
The Philippines
Government has recently decided to import an additional 200,000 tonnes of
rice from Vietnam in the context of the price hike in rice and other
commodities in the market.
At present, the
price of dried paddy in the Mekong River Delta is hovering around
VND5,400-5,500 per kilo while that of long-grain paddy stands at
VND5,500-5,600 per kilo.
Villas in
world-class Montogomerie golf course listed for sale
Luxury villas at
the world-class Montogomerie golf course have been listed for sale by the
Central Green Land Joint Stock Company in Danang city at prices starting from
VND10 billion each.
Montogomerie has
been voted by Forbes magazine as one of the world’s top ten golf courses in
Asia.
All 64 villas have
views looking to Ngu Hanh Son Mountain and the 18-golf course and are built
in accordance with the highest of international standards replete with three
bedrooms, living room, kitchen and a swimming pool.
Vietnam-Singapore
two-way trade rises 22.4%
Two-way trade between
Vietnam and Singapore surged 22.4% to more than US$6.5 billion in the four
months leading up to May, according to the Singapore Department of Statistics
(DOS).
In the five month
period, Singapore imports from Vietnam were valued at US$1.223 billion, up
23.7% over last year’s same period.
Singapore’s key
imports were telephones and components, boilers, machinery and spare
parts, coffee, tea, glass products, construction glass, and oil and gas.
Some items with the
highest growth include soil with sulphur, limestone, plaster, cement and
sand, footwear, animal fat and vegetable oils, and fruit and vegetables.
Meanwhile,
Vietnam’s key Singaporean imports reached nearly US$5.3 billion, up 22.1%
over last year’s corresponding period
Garment
material imports rise 20% in H1
The garment and
textile sector’s raw material imports jumped 20.6% in the first six months of
the year toUS$7.7 billion, the Vietnam Textile and Apparel Association
(Vitas) reports.
Specifically,
fabric imports were valued at US$4.63 billion, up 17.5% over last year,
followed by accessories (US$1.5 billion, up 30.5%), and fibre (US$749
million, up 3.5%).
The country’s total
garment and textile export turnover reached US$10.4 billion in the first half
of 2014, 18.4% higher than the previous year.
Vitas statistics
also show that import turnover of materials including fabric and fibre for
export items hit US$5.9 billion in the reviewed period, an increase of 23.3%
from a year ago.
To achieve the
export target of US$13-US$13.5 billion in the remaining six months of 2014,
the value of material imports is expected to increase sharply to keep pace
with export production.
Vietnam
corn imports rise to boost animal feed production
The country’s
imports of corn in the first six months of the year exploded to 2.33 million
tonnes valued at roughly US$600 million, the Ministry of Agriculture and
Rural Development (MARD) has reported.
Nguyen Xuan Duong,
deputy director of the Animal Husbandry Department of MARD, also said the
total demand for corn is forecast at 4.5 million tonnes for the year with an
estimated price tag of more than US$1 billion.
“The rising trend
experienced by corn imports over recent years is primarily attributable to
the increased demand for corn in the production of animal feed,” Duong said.
“Vietnam lacks
sufficient agriculture acreage to significantly expand corn production and
must rely heavily on imports to meet the increasing demand.”
It is also
difficult for domestic farmers to compete with the foreign market price,
Duong admitted, adding that corn is currently averaging US$245-248 per tonne,
equivalent to VND5,800-5,900 per kilogram, while the domestic price hovers
around VND6,200 per kilogram.
Industry experts
say to reduce corn imports, the agricultural sector must apply biotechnology
to become more competitive and invest heavily in building corn preservation
and distribution systems.
Big
companies team up for SC VivoCity project
The Vietsin
Commercial Complex Development JSC (VCCD) on July 3 signed a memorandum of
understanding (MoU) on the development of SC VivoCity project with the Bank
for Investment and Development of Vietnam JSC (BIDV) and 13 other domestic
and foreign counterparts in Ho Chi Minh City.
VCCD is a joint
venture between the Saigon Co.op Investment and Development (SCID) and the
Singaporean Mapletree- a leading Asia company specializing in real estate,
investment and capital management.
Under the MoU, BIDV
pledged a financial package worth US$40 million for the project. Other
stakeholders, including CJ CGV – the largest multiplex cinema chain in the
Republic of Korea (RoK), agreed to rent 21,270sq.m, accounting for half the
total floor acreage of the project.
Saigon Co.op and
NTUC Fair Price – the two leading retailers of Vietnam and Singapore - plan
to build a megamall named Co.opXtra, while other brands such as renowned
Starbuck, MOF, Bread Talk, Thai Express, Pepper Lunch and Shabu Ya will
provide diverse food services.
Other partners
include Guardian’s health and beauty store, California Fitness&Yoga
Center, Playtime-a Korean indoor play centre for children, and Wall Street
English Training Center.
The SC VivoCity, to
be built on 62,000sq.m at a total investment of US$100 million, will be one
of the leading shopping and entertainment centres in Ho Chi Minh City when it
opens the door in 2015.
EVN pulls out from property sector
Electricity of Viet
Nam (EVN) has completed divestment from its real estate holdings and is
hurrying to withdraw capital from financial organisations, according to
officials.
The group's recent
report on its business operation in the first half of the year showed that it
completed divestment at Saigon Vina Real Estate Company (Land Sai Gon) and
the Central Power Real Estate Joint Stock Company (Land Mien Trung), as
approved by the Ministry of Industry and Trade.
EVN also completed
the transfer of its 1 million shares at Global Insurance Corporation (GIC) to
International ERGO Company to reduce its stake in the company from 22.5 to 20
per cent.
Further, EVN sold
more than 25.2 million shares at An Binh Bank (ABBank) to Ha Noi
Import-Export Company (GELEXIMCO).
Statistics from the
Finance Ministry, released last week that in the first half of 2014,
State-owned enterprises (SOEs) have completed divestments from non-core
businesses, valued at VND822 billion (US$39.1 million).
Last year, SOEs'
investments reached VND965 billion ($45.9 million), mainly in finance,
banking and insurance.
The businesses'
total investment in non-core businesses was estimated at VND22 trillion
($1.04 billion).
Its stake at ABBank
has now been lowered from 21.27 to 16.02 per cent.
"EVN's capital
at ABBank included profits from shares and cash. Its investment at the bank
will continue to lessen, based upon the Government's requirements," it
said.
The group added
that it has withdrawn all capital from EVN Investment and Construction
Company, as it sold 500,000 shares at the company to ensure the highest
effectiveness of the transfer.
It has also been
carrying out procedures to divest investments from An Binh Securities Company
(ABS), auctioning off 11.4 million shares.
The ministry
approved its divestment plan at EVN Finance Company (EVNFinance) to reduce
its stake from the current 40 per cent to 15 per cent.
Under the group's
restructuring plan, EVN would withdraw from seven joint stock companies by
the end of 2015.
Mekong
Delta rice producers to plant more certified seeds
The Cuu Long
(Mekong) Delta Rice Research Institute plans to double the area of rice
fields using certified seeds in the next two to three years.
The delta is the
country's main rice producer with about 1.7 million hectares under the crop.
But certified seeds
are only cultivated on around 500,000ha per crop, according to the institute,
adding that farmers mostly use paddy from the preceding crop to seed the next
crop.
The increase in the
use of certified seeds is targeted at improving the quality of the country's
rice exports, Deputy Minister of Agriculture and Rural Development Le Quoc
Doanh said.
This is allied with
the programme of developing large-scale rice fields by enterprises to create
their own raw material sources, he said.
Dr Le Van Banh,
director of the institute, said to achieve the target, the institute, through
the Ministry of Agriculture and Rural Development, is implementing an
agricultural extension project for producing certified rice seeds.
It would co-operate
with farmers to produce selected purebred varieties on some 10,000ha, he
said.
Through the
enterprises that have developed large-scale rice fields, the certified seeds
would be sold to famers taking part in the programme but also to farmers who
are not, he said.
The Viet Nam
Southern Food Corporation (Vinafood 2), along with its subsidiaries, wants to
tie up with the institute to develop quality seeds and supply them to
enterprises for the large-scale rice fields, he said.
Planting certified
seeds would yield rice of uniform quality and fetch higher export prices, he
said.
But the domestic
prices of rice, whether grown using certified or uncertified seeds, are
almost the same though farmers have to pay more for buying certified seeds.
This discourages
farmers from using certified seeds, Banh admitted, adding that firms
therefore need to consider their purchase prices to boost their use.
Source:
VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
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Thứ Tư, 9 tháng 7, 2014
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