|
BUSINESS
IN BRIEF 1/8
Positive
outlook for German businesses in Vietnam
A recent survey
reveals that 70% of German businesses operating in
The results of the
survey, made public on July 29 by the German ASEAN Chamber Network (GACN),
reflect the opinions of German invested businesses operating in –industry
(48%), services (35%), business (9%), consultancy (6%) and auditing (3%).
The survey shows
that 50% of the respondents report overall improved success in the past year
and this positive outlook is being translated into ongoing plans to invest
and recruit. Over 60% of the businesses plan to expand their workforce over
the next 12 months.
However, 70% of the
companies surveyed report they find it extremely burdensome to locate
qualified engineers while 46% said it is essential for the country to develop
a better skilled workforce.
Most of the
companies have provided continuing education and organised training courses
for their staff and workers, with 70% believing that the German vocational
training model is a good choice for
A shortage of
skilled workers was the number one obstacle reported in the survey followed
by import barriers, corruption, inflation, and tax burden.
The survey
reaffirmed the importance of the huge lucrative retail market in Vietnam to
German businesses and the importance of free trade agreements (FTAs) contributing
to their optimism on the nation’s economic development.
Consumer
confidence up in July
The ANZ-Roy Morgan
Vietnam Consumer Confidence Index posted another strong gain, increasing by
3.1 points to reach 134.1 in July, to stand well above the 2014 average of
131.
ANZ Bank economists
announced this in a report dated July 30, adding that easing of political
tensions appear to have contributed to the increase in confidence during the
month.
In terms of
personal finances, 34% (up 2%) of the Vietnamese people say that their
families are "better off" than a year ago, while 19% (down 1%) say
that their families are "worse off".
About 55% (up 7%)
expect their families to be "better off" financially this time next
year, compared to 6% (down 2%) who expect their families to be "worse
off".
As much as 61% (up
4%) of the Vietnamese people expect
However, 47% (down
2%) expect the country will have "good times" financially during
the next twelve months, while 15% (down 1%) expect "bad times".
Thirty-seven
percent (down 1%) of the Vietnamese people say now is a "good time to
buy" major household items, compared to 17% (up 3%) who say it is a
"bad time to buy".
"We believe
the economic backdrop will be one of sure-and-steady recovery, rather than a
V-shaped rebound," said Glenn Maguire, the chief economist of ANZ in
Asia-Pacific.
Consumer confidence
sitting above the 2014 average is aligned with
"We would now
assess confidence as being more likely to move sideways at elevated levels
rather than continue to make strong gains," said Glenn.
The ANZ Bank and
Roy Morgan Research launched the monthly private consumer index for
The consumer index
jumped 7.7 points in June.
Dong Nai
cashew nut exports up in volume, value
Southern Dong Nai
province exported 3,000 tonnes of raw cashew nuts earning US$19.7 million in
July, up 7.1% in volume and 11.9% in value on-year.
The average price
of raw cashew nut exports for the month hovered around US$6,588 per tonne,
6.2% higher than same period last year’s same period.
In the first seven
months of the year, the province exported a total of 15,200 tonnes of raw
cashew nuts, grossing revenues of US$98.6 million, up 22.5% in volume and
30.6% in value.
Key cashew nut
export markets include the US (US$42 million), China (US$22 million), Canada
(US$6 million), the UK (US$4 million), the Netherlands (US$4 million),
Australia (US$4 million) and Thailand (US$2 million).
Markets showing a
decline included
Advanced
fisheries surveillance ship handed over
The vessel – coded
KN-782 – is 90.5m-long, 14m-wide and 7m-high and has been under construction
since October 2012. It has a displacement of 2,500 tonnes and a maximum speed
of 21 nautical miles per hour with a total capacity of 12,016 horse power.
Speaking at the
handover ceremony, vice chairman of the provincial People’s Committee Do
Thong said the Party and State have paid special attention to ensuring the fisheries
surveillance forces and coast guard are adequately armed to protect sea and
islands’ sovereignty, implement rescue work and assist fishermen at sea.
Nguyen Van Trung,
deputy head of the Vietnam Fisheries Surveillance Department emphasised that
the KN-782 ship helps instil confidence in fishermen that they will be
adequately protected.
The Ho Chi Minh
City local government has mapped out a plan to boost budget collections for
2015, with domestic revenues targeted to rise 14 -16% and earnings from
export and import to increase 6-8 percent, the Saigon Times Daily reported on
July 30.
The target was
pointed out in the city’s budget plan for 2015 issued by the
In 2014, the total
revenue of
The total revenue
this year to date has amounted to VND148.5 trillion, or 14.3% higher than the
same period last year. Domestic sources generated VND 81.89 trillion and
export-import tax collections contributed VND48.5 trillion, rising 17.2% and
15.8 percent compared to 2013, respectively.
According to the
HCM City Department of Finance, the increasing amount of tax collections is
attributed to greater efforts to attract foreign investment, high consumption
of consumer goods, cars, and oil and gas revenues. Other sources such as
personal income tax, registration charges and land use fees are also higher.
Besides, the
recovery of many manufacturing firms had positive impacts on the city’s
revenues.
Speaking at a
conference in June on the city’s socio-economic performance in this year’s
first half, Chairman of the HCM City People’s Committee Le Hoang Quan
expected the local economic recovery since 2013 will continue to gain tempo
in the coming years.
Vietnam-UK
trade gathering steam
Trade turnover between
Vietnamese exports
to the
Major imports of
Vietnam included turbine, machinery and equipment (24%), pharmaceutical
products (11%), mobile phone accessories & recording equipment (9%),
chemicals (7.5%), healthcare equipment (6%), plastic products (5%), iron and
steel (4%), cattle feed (4%), molluscs and aquatic invertebrates (3%),
and ink, dyes, detergents, and paint (2.5%).
Vietnamese Trade
Counsellor Nguyen Thi Hong Thuy noted though trade ties between the two
countries are enjoying fruitful development, Vietnamese enterprises are still
confronted with a number of difficulties competing with Europe,
A series of trade
and investment promotional activities are being organised in the
Thuy revealed that
the
However,
differences in development levels and business culture are a big obstacle to
increasing Vietnamese exports to the
She pointed out the
fact that most Vietnamese businesses are small and medium-sized in terms of
financial and management capacity, finding it hard to market their products
in the
That’s why
Vietnamese businesses need more time to carefully explore, penetrate and find
a firm foothold in a well-organised distribution network in the
Trade
surplus tops $1.3b in first 7 months
The country's trade
surplus in the first 7 months of this year reached US$1.26 billion thanks to
a good export performance, the General Statistics Office reported.
The result was due
to an improvement in export value which reached $83.5 billion in the first 7
months, up 14.1 per cent compared to the same period of last year.
There were a number
of high-valued export staples including marine products with an increase of
25.5 per cent to $4.23 billion, textile and garment industry with a rise of
19.4 per cent to $11.48 billion and phones and accessories manufacturing that
showed a growth of 13.9 per cent to $13.15 billion.
Crude oil export
value also made up $4.61 billion, up by 5.8 per cent in volume and by 8.3 per
cent in turnover.
The GSO stated that
the export turnover could reach a higher value if there was no reduction of
export value in agricultural products. These included rice exports with 3.86
million tonnes worth $1.75 billion, down 8 per cent in volume and 4.7 per
cent in value.
A decrease in
rubber exports also contributed to the situation with 454,000 tonnes worth
$832 million, down 9.5 per cent in volume and 32 per cent in value.
In the first seven
months, the country's import value was $82.24 billion, up 11.4 per cent
year-on-year.
The GSO said that
the country spent most for imports of raw materials for production such as
cotton which increased by 35 per cent to 458,000 tonnes and 36.3 per cent in
value to $919 million.
The value of
imported machines and spare parts increased by 24.4 per cent to $12.65
billion, and fabric import value reached to $5.5 billion, an increase of 16.7
per cent.
The GSO said that
Most of the
imported products from
Import value from
Solutions
proposed to develop support industries
Support industries
are the backbone of the country's industry, according to Truong Thanh Hoai,
deputy director of the Heavy Industry Department of the Ministry of Industry
and Trade.
Further, support
industries play a key role in raising the competitiveness of industrial
products and are a decisive factor in the development and enhancement of the
nation's competitiveness. Without having support industries, it would be
impossible to operate manufacturing industries, Hoai said during a workshop
to discuss solutions to develop support industries in
Regarding
developing solutions for support industries in
Thu emphasized that
investment in technology required large amounts of capital. To assist
enterprises, the Ministry of Finance and the State Bank of
In addition, the
country has not yet developed specialized industrial complexes, resulting in
underdeveloped support industries.
The HCM City
Department of Industry and Trade has proposed a series of measures to develop
support industries by offering incentives to attract FDI businesses. It is
stated that FDI businesses are an important driving force to promote domestic
support industries.
The department has
also suggested that the Government consider a master plan for support
industries and offer credit loan policies for businesses to develop support
industries and human resources in support industries.
Hoai said the
Ministry of Industry and Trade is now developing a decree on the development
of support industries, and is expected to submit to the Government in the
fourth quarter of this year.
Hoai added that the
decree would focus on measures to support technology, production management
and customer services to avoid shortcomings in local support industry
companies.
Furthermore, the
decree would supplement incentives on corporate income taxes and construction
regulations on the building of support industry complexes to attract global
multinational corporations to provide parts and materials to invest in
Subsidence
blamed on residents
Construction
conducted by nearby residents has caused the pavement along the O Cho
Dua-Hoang Cau road, the most expensive route in Viet Nam that opened early
this year, to subside, said Nguyen Sy Bao, the director of the management
board on key urban development projects in Ha Noi.
Speaking at the
press conference on Tuesday, Bao said the pavement subsided after a short
period of construction after residents demolished their old houses. Residents
then gathered concrete stakes and drove excavators and trucks over the new
pavement.
Bao confirmed that
samples of bricks used on the pavement had been tested to meet quality
standards.
The loose management
and co-operation between the project's investor, inspection consultancy unit
and local authority had enabled the damage, he said.
The investor had
asked the construction unit to quickly re-build 165 square metres of the
damaged pavement, repair the covers of manholes and reduce the height of the
pavement to help drivers go up and down more easily.
The pavement had
since been fixed, he said, adding that a cost of more than VND70 million
(US$3,301) was incurred by the project's contractor.
Bao said the
management board would re-examine the incident to establish the fault of
those involved, including four units participating in constructing,
designing, consulting on and supervising the project.
In June, Ha Noi
Party Secretary Pham Quang Nghi had requested a re-examination of the
construction of the pavement on the O Cho Dua-Hoang Cau route following
inspections.
He said that each
phase of the project would reveal the responsibilities of those responsible
for the poor-quality pavement.
The O Cho Dua-Hoang
Cau road route was part of the city's Belt Road No1 project costing VND642
billion ($30.5 million), including $25 million for site clearance.
However, the real
amount for site clearance had been raised to VND743 billion ($35.3 million),
making it the most expensive road in the country.
Although the city
has opened the road for traffic, the installation of lighting systems,
separators, painted lines, pipelines and trees is yet to be finalised.
VN exports
face tough challenges
Low value adds,
poor quality of exports and heavy dependence on raw material imports along
with poor processing facilities and transportation were affecting the
country's export quality and efficiency.
Nguyen Thi Thu
Hang, senior technical consultant at Export Potential Assessment (EPA), told
a conference in Ha Noi yesterday that limited understanding about foreign
markets and international trade issues and inadequate market information,
poor supply chain and sector linkages as well as outdated production and
processing technologies for export products were also problems plaguing the
country's exports.
EPA is the first
major activity of the four-year "Decentralised Trade Support Services
for Strengthening the International Competitiveness of Vietnamese Small and
Medium-sized Enterprises" programme, being implemented nationally by the
Trade Promotion Agency.
In order to deal
with these issues, Hang emphasised on the importance of promoting the
implementation of the State's preferential policies in support industries to
solve input material shortages.
Besides, to enhance
linkages in supply chains to reduce cost, improving product quality and
competitiveness of exports, diversifying export markets and accelerating
trade promotion were also necessary, she said.
She added that
improving the capacity of domestic enterprises in negotiating, contracting
and getting international transactions reduced should be also included.
On his speech at
the event, Deputy Minister of Industry and Trade Do Thang Hai said
The country was
also fostering its negotiations of Free Trade Agreements with foreign
countries to expand export outlets, he said.
In the future, it
was necessary to identify and assess products and services which had an
export potential and then focus on accelerating exports of these goods, he
noted.
According to a
report which was also released at yesterday's conference, the items with high
export potentials in the short to medium terms were coffee, rubber and
cassava along with pepper, garments and leather shoes. Seafood such as tuna
and shrimp were also on the list. Electronics, textiles and garment, and
wooden goods apart from bamboo and rattan products, were also items with high
export potential. Tourism and labour were items on the list.
SBV
approves new Construction Bank head
The State Bank of
Viet Nam (SBV) has approved a new chairwoman and general director of the Viet
Nam Construction Bank (VNCB).
The decision
follows the arrest and temporary detention of the bank's three former senior
officials on July 29.
The new chaiworman
is Vu Bach Yen, who has been a member of VNCB's executive board since
February 2012 and is a major shareholder. Meanwhile, the bank's Deputy
General Director Dam Minh Duc, who was in charge of the bank's operations in
Ha Noi, is the new general director.
According to the
Ministry of Public Security's Investigation Police Agency, the three former
officials were arrested on Tuesday for allegedly violating
The Article deals
with deliberate acts against the State's regulations on economic management,
leading to serious consequences.
The arrested
persons are Pham Cong Danh, 49, former chairman of VNCB; Phan Thanh Mai, 43,
former member of VNCB's executive board and general director; and Mai Huu
Khuong, 31, former member of VNCB's executive board, in charge of finance.
On Monday, a day
before they were arrested, SBV announced that the three officials had been
dismissed from VNCB's service to ensure normal operations of the bank.
VNCB was
established from the Trust Bank in May 2013. The Trust Bank was in operation
for 23 years with a charter capital of VND3 trillion (US$142.85 million).
It's reported that
Mai, Danh and Khuong were elected members of VNCB's executive board in
February 2013. Then Mai was appointed as the bank's general director.
Danh was also Thien
Thanh Group Ltd Company's chairman of the board of directors.
Thien Thanh Group
Ltd Co is a subsidiary of the Thien Thanh Group, based in
Meanwhile, Khuong
was also chairman of the executive board of the Dai Viet Stock Company, while
Mai was a member.
The case is being
investigated further.
Pan Pacific
stitches up tender for largest stake in Vinaseed
Pan Pacific
Corporation (PAN) announced it has become Viet Nam National Seed
Corporation's (NSC) biggest shareholder after completing the tender offer for
its shares.
According to its
filing on the HCM City Stock Exchange yesterday, Pan Pacific has bought 4.63
million shares of Vinaseed, lower than the total 6.23 million shares it
registered while buying.
PAN's total
holdings in the seed firm increased from 2.47 million shares to nearly 8.14
million shares, equivalent to 53.2 per cent of the firm's stakes that makes
NSC a PAN subsidiary.
The company could
spend over VND352 billion (US$17 million) to own NSC shares as in March, PAN
offered to buy their shares at a price of VND76,100 (US$3.61) per share from
May 30 to July 15.
Sellers included
Sai Gon Securities Inc (SSI) who sold out all its holdings of over 2.42
million shares in July.
NSC shares fell 0.7
per cent to close yesterday's session at VND74,500 ($3.53) a share while PAN
shares tumbled 3.1 per cent to end at VND47,500 ($2.25) each.
The acquisition of
Vinaseed has shown PAN's investment strategy to expand business in the
agricultural sector in which Vinaseed is a leading company in the field of
plant varieties.
NSC is a stable
performer with profits rising steadily from 2009 to 2013. It estimates a
profit of VND59 billion ($3 million) in the first half of this year,
equivalent to 51 per cent of its yearly profit target and a rise of 9 per
cent against the same period last year.
Apart from
Vinaseed, Pan Pacific owns 62.4 per cent stake in Ben Tre Forestry and
Aquaproduct Import and Export Co (ABT), and 23 per cent in Long An Food
Processing Export Co (LAF).
PAN is operating in
administrative and support services with 10 business lines, including
agricultural and seafood production, home care services and industrial solid
and liquids apart from gas waste treatment services and high-rise building
and apartment management services.
Pan Pacific
incurred losses of more than VND2 billion ($95,000) last year and is under
warning status by the HCM Stock Exchange. Its first-half net profit is
projected at VND22.5 billion ($1 million), six times the same period last
year.
VSA sees
slight increase in steel sales in July
The Viet Nam Steel
Association (VSA) has reported that steel consumption in July was 380,000
tonnes, an increase of 1 per cent against last month.
In July, steel
plants churned out only 400,000 tonnes, which was lower than the designed
output due to low demand.
The Vice President
of VSA, Nguyen Van Sua said that steel consumption could decrease in August
due to the rainy season.
VSA forecast that
the steel industry will increase business by 10 per cent this year.
Footwear
exports fetch more than $1.1b
The southern
According to
Director of the provincial Department of Industry and Trade Le Van Danh, in
July alone, the export of this product brought $167 million to the province,
up 16.4 per cent over the previous month and 5.1 per cent compared to a year
earlier.
He said that growth
was seen in almost all markets, led by the
Local businesses
attributed the growth to the Generalised System of Preferences (GSP) that the
European Union has granted to
Unsold
sugar inventory reaches nearly 460,000 tonnes
The unsold volume
of sugar at factories was estimated at 457,890 tonnes as of July 15, 32,160
tonnes higher than a year earlier, an official of the Ministry of Agriculture
and Rural Development (MARD) said.
However, this will
not be a serious problem if the current effective control of smuggling can be
maintained, according to Doan Xuan Hoa, deputy head of MARD’s Department of
Processing and Trade for Agro-Forestry-Fisheries Products and Salt
Production.
At the same time,
he pointed to the fact that most sugar makers have not formed partners with
distributors, thus their sales depend much on the market. As a result, they
are under great pressure when supply overcomes demand on the domestic market.
To add to the problem, sugar export is also facing many difficulties.
Hoa urged the
Vietnam Sugarcane and Sugar Association and businesses to devise production
and sales plans for 2015 so as to ensure supply and demand balance in the
domestic market.
The department
forecasts the sugar output from now to the end of 2014 at 300,000 tonnes,
while imports this year are expected to reach 77,300 tonnes, bringing total
supply to 835,190 tonnes.
Meanwhile, sugar
consumption is predicted to be at the same level as last year, resulting in
unsold inventory of around 251,240 tonnes by the end of the year.
Personnel appointed
for Steering Committee for Price Regulation
Deputy Prime
Minister Vu Van Ninh who is head of the Steering Committee for Price
Regulation, has appointed Finance Minister Dinh Tien Dung as deputy head of
the committee.
Nine members of the
committee were also named under Decision 52/QD-BCDDHG freshly signed by the
Deputy PM. They are officials from the Ministries of Finance, Industry and
Trade, Planning and Investment, Public Health, Education and Training,
Transport, and Agriculture and Rural Development, as well as the Government
Office and the State Bank of
The Steering
Committee for Price Regulation was set up in May this year with Deputy PM
Ninh as its head under the Prime Minister’s Decision 690/QD-TTG. It is
responsible for studying and helping the Government leader consider and
approve major policies and orientations for price management in a certain
period, as well as specific measures to stabilise prices for essential goods
and services.
The committee will
also assist the PM in directing local and municipal ministries and agencies
to manage prices, serving the targets and requirements of the Government on
curbing inflation and stabilising macro economy.
In addition, it
will hold seminars and conferences for experts to share experience in and out
of the country to improve the operational efficiency of the committee.
Philippine
firms encouraged to invest in Vietnam
Vietnamese
Ambassador to the Philippines Truong Trieu Duong has called on Philippine
businesses to expand their investment in
Speaking at the
22nd Metro Manila Business Conference recently held in
Philippine firms
said they highly value
Hosted by the
Philippine Chamber of Commerce and Industry, the conference aimed to gear up
for regional integration as an ASEAN economic community will be formed by
2015.
Many
barriers to business remain, says expert
Many policy
drafting agencies tend to resort to the “prohibition” term for the business
scopes that are hard to control and this has set up many barriers to the
country’s business environment, said the director of the Central Institute
for Economic Management.
Speaking at a
seminar held in
Cung said
regulations for the prohibited business areas regarding dangerous games for
children and their character development, social security and order, sexual
products and scrap imports which can pollute the environment among others are
unclear as there are a lack of detailed criteria and definitions.
Such regulations,
according to Cung, can be interpreted differently by different market
monitors depending on their worldviews, and this puts producers and traders
at risk.
“Individuals at
State management agencies can take advantage of different interpretations for
their private gains,” he warned.
The regulation
banning enterprises trading pollution-causing scrap imports, according to
Cung, is also unreasonable. He wondered whether enterprises are allowed to
trade domestic scraps or not.
Cung noted the
Enterprise Law is ruled by 20 industry-specific laws and regulations, and
ministries and sectors make full use of these laws to protect their
interests.
However, chairman
of the Vietnam Tea Association Nguyen Huu Tai disagreed with Cung.
Tai said food
producers should strictly follow the regulations on safety and hygiene of the
Ministry of Health rather than the Enterprise Law. He furthered a person owns
a big piece of land in a downtown area of a city but he is not allowed to
raise pigs on his land as he should observe the Land Law.
Dau Anh Tuan, head
of legislation at the Vietnam Chamber of Commerce and Industry, said in
support of Cung that the Enterprise Law would be invalid if industry-specific
laws and regulations set too many business conditions.
Tuan said the
inclusion of business lines with special requirements in the Enterprise Law
or in decrees needs careful consideration as it cannot be kept updated with
the reality.
Two
contractors banned from road projects
Two consulting
contractors responsible for supervising a project to construct a road
connecting Vi Thanh Town in
The Ministry of
Transport in a decision issued on July 24 banned Consulting and Construction
Ltd., Co. 747 and Design Consultant Enterprise, an arm of Investment
Construction Joint Stock Company No.10 under the Vietnam Urban and Industrial
Zone Development Investment Corporation (IDICO).
The two consultants
are found by the ministry to have violated regulations in supervising the
project’s quality and progress and failed to perform their contracts duly.
Apart from these
two contractors, over then other units relating to the construction of the
road have also had their works reviewed to guarantee the project’s quality.
Previously, the
transport ministry made a snap inspection into the project, invested by the
Gov’t
orders customs procedures simplification
Prime Minister
Nguyen Tan Dung has told the Ministry of Finance and its General Department
of Customs to remove unnecessary customs procedures to help enterprises at a
time of economic hardship.
In Notice
289/TB-VPCP, the Prime Minister requests that import and export goods
clearance time should be cut by 50% from the current level by the end of
2014. Paperwork should also be streamlined.
In 2015,
The Government
orders the General Department of Customs to further speed up application of
information technology and deployment of the ASEAN one-door mechanism and the
One-door Customs Mechanism.
The Ministry of
Finance will have to cooperate with relevant units to secure consistency in
management of export and import goods, people and means of transport
traveling into and out of the country.
Relevant agencies
are required to review the policies issued in recent times to help the
Government work out decrees guiding implementation of the amended Law on
Customs. The National Assembly has recently passed the law to ensure
administrative reform goals and requirements will be met.
Notably, the
Government requests stricter management of customs staff, especially at
grassroots levels, to prevent wrongdoing in the process of customs clearance.
Officials who violate rules must be eliminated.
Meanwhile, the
Ministry of Finance and the General Department of Customs will draw up a
project allowing the non-State sector to join equipment procurement and
infrastructure investment contracts in the customs sector. The contracts aim
to improve supervision and goods checks by the customs.
The Government will
continue investing in scanners to check goods and enhancing supervision at
border gates.
The General
Department of Customs should encourage private firms to join customs service
and agent sectors. The department will initiate a pilot scheme to apply a
consistent management model at border gates by arranging courses for
officials.
Initially, the
model will be piloted by the customs departments in
According to the
Doing Business 2014 report by the World Bank (WB),
It normally takes
enterprises in
In addition, it
costs firms in
Liquidity
risk still high at EVN
The power purchase
deals between Vietnam Electricity Group (EVN) and its subsidiaries lack
transparency with huge losses offset internally, which are among reasons for
high liquidity risk at the group, said State Audit of Vietnam.
According to the
auditing result for 2012, five power corporations of EVN owed the parent firm
as much as VND9.88 trillion worth of electricity and the amount the parent
company owed power plants also amounted to VND6.06 trillion.
The debt amounts
collectible and payable between the parent company and its subsidiaries were
quite high but EVN did not perform good bookkeeping to monitor and analyze
such debts. Besides, debt payments made by power purchasing companies to
power plants were often late.
According to State
Audit of Vietnam, power purchases between the parent company and subsidiaries
and affiliates were not objective as the internal power price in 2012 took
into account the losses incurred in 2011. By lowering the internal price, the
parent company offset losses for five subsidiaries with a total of nearly
VND1.72 trillion.
Besides, the parent
company underwrote the losses of VND865 billion incurred in 2011 for its two
wholly-owned thermal power companies, with VND722 billion for Uong Bi thermal
power plant and VND143 billion for Can Tho Thermal Power Company, said Nguyen
Hong Long from State Audit.
EVN also owed other
groups like Vietnam National Oil and Gas Group and Vietnam National Coal and
Mineral Industries Holding Corporation a combined VND16.07 trillion as of
2013, most of it overdue. However, EVN had pledged to pay VND2.65 trillion by
December 31, 2013 and the rest would be paid within seven years, with VND1
trillion to be paid each year.
According to Long,
EVN earned a profit of around VND8.82 trillion in 2012 and the return on
equity ratio was 7.52%, though the group earmarked over VND10 trillion to
cover exchange rate changes and other amounts to provide for losses of
previous years.
EVN borrowed much
to invest in power generation and transmission systems, with loans totaling
VND25.04 trillion as of 2013, including short-term loans of VND6.1 trillion.
With business
results improving gradually, EVN’s long-term loan payment capacity in the next
five years, according to State Audit, is ensured thanks to the amortization
of assets as well as its supplementary assets being revalued.
Philips
introduces smartphones in
Dutch electronics
giant Philips has launched its latest smartphone models and announced a new
distributor in
Smartcom Co. has
been picked by Sangfei Mobility Singapore, a company that holds the right to
trade Philips smartphones on global markets, as the authorized distributor of
Philips handsets in
With the debut last
week,
Philips has also
introduced its feature phone X2566 to the Vietnamese market.
Long-lasting
battery technology is among the highlights of Philips phones.
Philips had its
cellphones distributed by Thanh Cong Mobile in
Supporting
industries lack effective policies
Yasuzumi Hirotaka,
managing director of JETRO in HCMC, told a function on establishing the
Japan-Vietnam supporting industries forum last week that policy-making
agencies had not fully understood the needs of enterprises.
The lack of
effective policies to spur
Therefore, the HCMC
Export Processing Zones and Industrial Parks Authority (HEPZA) and JETRO in
HCMC signed a memorandum of understanding to boost supporting industries in
this city, including the establishment of the Japan-Vietnam supporting
industries forum. This forum is expected to bring the requests of both
Vietnamese and Japanese firms to policy makers and help them get a better
understanding of businesses.
According to
Hirotaka, the forum will also assist in human resource development for
supporting industries as if there are not qualified people making
technological transfers happen, it is difficult for local businesses to grow
and benefit from technological advances despite strong foreign investment
inflows.
As Japanese firms
have not found good local enterprises in supporting industries, JETRO and
HEPZA will make a list of businesses at exporting processing zones and
industrial parks in HCMC that can meet the demand of Japanese firms.
There were 311
Vietnamese enterprises active in supporting industries as of last year. Many
foreign enterprises operate in supporting industries
There are many
final products made in
Citibank
launches new credit card
Citibank
Raul Parades,
Citibank
In addition, card
holders can enjoy privileges at Citibank partner restaurants, hotels and
shopping centers.
The group has
introduced Citi Rewards in several markets in Asia-Pacific such as Hong Kong,
the
Citibank joined the
local retail banking market in 2009. Earlier, it launched other credit cards
onto the market such as Citibank PremierMiles World MasterCard, Citibank Visa
Platinum Cask Back and Ready Credit.
The amount of total
outstanding loans in HCMC is estimated at VND984 trillion in the first seven
months of this year, a rise of 3.35% compared to end-2013, heard a meeting on
the city’s socio-economic situation yesterday.
The central bank’s
HCMC branch earlier estimated the city’s credit growth rate by end-June at
1.32%, but the rate actually increased to 2.84%.
Nguyen Hoang Minh,
deputy director of the State Bank of
Up to date, there
have been 701 companies, two cooperatives and 25 family-run businesses
approved by banks for loans totaling VND15.7 trillion.
The total amount
from the program is expected to reach VND28-30 trillion at the end of this
year compared to the earlier estimate of around VND20 trillion, Minh said.
As many as 34
companies will also borrow an additional sum of nearly VND1.9 trillion from
banks on August 8 with the annual interest rates of 7.5% for short-term
tenors and 9.5-10.5% per annum for medium and long-term tenors.
Businesses in fact
have accelerated borrowing money from banks to support their operations.
However, certain obstacles concerning bad debts and stockpiled goods are
reasons behind the low credit growth rate.
The ratio of bad
debts stood at 4.84% as of end-May, up 0.15 percentage point against the end
of last year.
The city’s export
turnover hit US$16.4 billion, a year-on-year rise of 3.5%, in the first seven
months of this year, director Thai Van Re of the city's Department of
Planning and Investment told the meeting.
Certain exported
products enjoyed good results including pepper, up 85.8% year on year,
followed by vegetables and fruit with a 48.5% increase, machines and
equipment up 37%, aquatic products up 14.8%, coffee up 14.6%, rice up 11%,
apparel up 8.6% and footwear 7.4%.
Meanwhile, the
city’s import revenue stood at US$14.14 billion in the first seven months of
this year, an 8% year-on-year fall.
Notably, goods from
China that account for 22% of the total import revenue inched down 1.9% in
value. However, imports from Singapore surged by 45.8% in value, followed by
goods from the U.S. up 28.3%, Taiwan 18.5%, South Korea 11.7%, Thailand 4.8%
and Japan 4.1%.
The city used to
buy a wide variety of products from China, ranging from machines and
equipment, electronics, metal to materials for agriculture.
However, China’s
illegal placement of an oil rig in Vietnam’s waters in early May has
influenced the export-import activities between the two countries, but it is
also deemed as an opportunity for the city to lessen economic dependence on
China.
Source: VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
|
Thứ Năm, 31 tháng 7, 2014
Đăng ký:
Đăng Nhận xét (Atom)
Không có nhận xét nào:
Đăng nhận xét