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BUSINESS
IN BRIEF 18/7
Vinalines
takes losses for 5th consecutive year
Vietnam National
Shipping Lines (Vinalines) is forecast to lose around VND1 trillion (USD47
million) in 2014, the fifth consecutive year of losses for the shipping
giant.
Leaders of
Vinalines have admitted that the competitiveness of their fleet is weaker
than that of private shipping companies.
The biggest
difficulty in restructuring of for the company has been the high investment
required for upgrading its fleet, which experienced its best business between
2007 and 2008. In the ensuing years, business faltered and the company ran at
a continuous loss. However, if the company waits for the market to recover,
the fleet will have aged considerably, driving up the cost of maintenance. As
a result, Vinalines has had to sell some of its ships to cut losses.
Without improved
port operations and logistics, Vinalines may fail to reach total revenue of
VND9.78 trillion in the first half of 2014.
Amid this difficult
situation, leaders of Vinalines consider restructuring as a way to save the
firm from the looming risk bankruptcy in two to three years.
To date, seven
affiliates of Vinalines have completed equitisation as scheduled.
Of their current
outstanding debt of VND54.78 trillion (USD2.61 billion), Vinalines has
restructured USD196.3 million of it through foreign credit organisations and
VND43 trillion (USD2.06 billion) through domestic commercial banks.
The high demand
places
In the end of 2013,
The Vietnamese
market has seen the presence of several imported brands such as
In 2013, the
Vietnamese person drank 32 litres of beer, leading Southeast Asia, meanwhile,
per capita income of
Vu Thi Minh Hanh,
Deputy Director of Health Strategy and Policy Institute, said that average
global average beer consumption has remained almost unchanged over the past
decade at 6.13 litres per person per year.
Per capita beer
consumption in
Up to 90% of
Vietnamese men drink alcohol and the rate of local young people who use alcohol
is also increasing rapidly.
Mrs. Hanh cited a
survey which said that up to 60% of traffic accidents and 68% of domestic
violence cases as well as 38% incidents of social disorder can be attributed
to the abuse of alcohol.
Every year, around
2.5 million fatalities are related to the use of alcohol, accounting for 2.8%
of the total number of deaths worldwide.
Nguyen Trong Thai,
Office Manager of the National Committee for Traffic Safety, said that out of
every 500 traffic fatalities, 34% show high blood alcohol levels.
New
State-owned enterprises must focus on critical areas
New State-owned
enterprises (SOE) can only be formed if they provide products and services
critically important to ensuring national economic security, according to a
new decree approved by Prime Minister, Nguyen Tan Dung.
Under the decree,
the parent company in a State economic group must have the minimum charter
capital of VND10 trillion (US$470 million) and have at least 50% of their
subsidiaries operating in key stages of their main businesses.
The decree
stipulated that subsidiaries are not allowed to buy shares of other
subsidiaries within a parent company, as well as the company having control
over the State-run economic groups and corporations to which they belong.
State economic
groups and corporations are also required to disclose key information related
to their operations on a website for enterprises run by the Ministry of
Planning Investment.
The issuance of the
decree is part of the Government’s effort to restructure State-run companies
which, along with bad debt, have slowing down
In 2013, the
Government equitised 74 SOEs but most of them were small companies and only a
small share of equitised assets has been transferred to non-State
shareholders, according to a World Bank report.
Walmart
riding on TPP advantages
The
Kevin Gardner,
senior director of Walmart Global’s International Corporate Affairs, told
Vietnam Investment Review (VIR) last week in an interview that Walmart was a
strong advocate of the TPP negotiations from which it could greatly benefit.
“This comprehensive
trade agreement provides market access and will bring a wide range of
Vietnamese goods and agricultural products to consumers in our key retail
markets in the US, Canada, Mexico, Japan and Chile,” he said.
The delayed TPP
negotiations, which will hopefully be signed next year, are a multilateral
free trade pact between Australia, Brunei, Canada, Chile, Japan, Malaysia,
Mexico, New Zealand, Peru, Singapore, the US, and Vietnam. Once signed, the
pact is expected to cover almost 40% of global gross domestic product.
“By gaining
tariff-free access to large markets such as the
“Walmart does not
have retail operations in
However, Walmart
opened a sourcing office in
Walmart is sourcing
apparel, footwear, homewares, toys and seasonal items from
Establishing
“strategic relations with growers and economic groups” is important for
Walmart and its customers, and having an office in Vietnam enable it to “more
broadly and effectively” operate and better facilitate the identification and
selection of suppliers while monitoring the manufacturing process to ensure
compliance, safety and quality, Gardner said.
In January 2014,
Walmart’s Global Sourcing vice president Bill Foudy came to Vietnam in search
of more market opportunities and met with Minister of Planning and and
Investment Bui Quang Vinh.
“Our presence in
A good example of
Walmart’s sourcing relationships in
“The owner of this business
has been successfully exporting her products to the
Walmart currently
operates retail outlet chains in North America, South America, Europe,
Africa,
Instant
noodle firms eager to tap into Mexican market
Vietnamese noodle
manufacturers have a chance to tap the Mexican market which annually imports
an estimated 1.6 billion packs worth US$500 million annually, according to
the Mexico-based Vietnam Embassy’s Trade Office.
A trade office
survey showed that instant noodles are primarily sold through 12 major
supermarkets, such as Wal-Mart, Aurrera, Superama, Soriana, and Comercial
Mexicana.
When exporting to
Hoang Tuan Viet,
Trade Counsellor to
To best approach
the market, businesses should develop a detailed advertising strategy to
market the products to the Mexican people. For example tasting at
supermarkets is an effective and proven method of marketing, he said.
Currently,
Japan-invested VinaAcecook leads the market with 51.5% of market shares,
followed by Masan Consumer (16.5%), Asia Food (12.1%) and the remaining 20%
are owned by smaller brand names like Miliket and Vifon.
Japanese
businesses want to invest in Vietnam
Around 30% of
Japanese businesses that are intent on investing overseas consider
JETRO reported that
it will conduct a fact-finding tour in the near future of key industrial
zones in northern Vietnam, such as Hanoi, Hung Yen, Bac Ninh, Ha Nam,
Haiphong and Quang Ninh for 26 Japanese businesses.
JETRO chief
representative in Hanoi Atsusuke Kawada said his agency anticipates that the
visit will facilitate Japanese businesses gain a better understanding about
the northern region’s investment environment, encouraging them to invest in
the country.
The retail market
in HCM City is getting set for major realignments as many of the world’s
leading retailers in the food, beverage, and fashion industries formulate
expansion plans to set up shop.
In early July,
The five-storey
mall will offer the latest fashion, a hypermarket, a cineplex as well as
lifestyle, entertainment, education, dining outlets, and other entertainment
on an area spanning 21,270 square metres, located at SC Vivo City’s South
Palace Complex .
Mapletree Group
will be introducing international brands including CGV-one from the
Other international
giants in including Starbucks, MOF, BreadTalk, ThaiExpress, Pepper Lunch and
Shabu Ya are also lining up putting the final touches on negotiations to
begin operation in the shopping centre in the near future.
Japanese retail
tycoon AEON Mall will also officially making its debut appearance in the
Vietnamese market in the remaining months of the year. The group inaugurated
its first commercial centre in Tan Phu district, HCMC on January 1, 2014 and
is continuing to expand its market share. The company is hurriedly preparing
to expand into Binh Duong province which borders HCMC in the fourth quarter
(Q4) of the year.
McDonalds’s, the
world’s largest chain of hamburger fast food restaurants opened its first
franchise in eastern
It appears
McDonald’s is following the lead of its predecessor to
Baskin-Robbins the
international home of delicious cones, shakes, treats, cakes, and pies
recently opened the doors for business of its 20th store in Q2/2014.
Dairy Queen, a US
based franchise owned by billionaire Warren Buffett, opened its first ice
cream outlet in January, 2014 with its first in District 1 and a second
shortly thereafter within only a few months. As planned, over the next five
years, Dairy Queen chain will massively expand to over 60 stores.
Caffe Bene, famous
In the HCMC Q3/2014
real estate report, CBRE Executive Director Vietnam Marc Townsend predicted
the landing of international retail brands in
The leading
indicator of the growth he says came in a Nielsen survey, in Q1/2014. The
confidence index of Vietnamese consumers was higher than the global average.
This is one of the key factors that increased the confidence of international
retailers and helped sway their decisions to invest in
Global Director of
Leasing Services and Retail Consultants Cushman and Wakefield Mark Burlton
recently commented that the global economic crisis created many changes in
the retail market over the past five years.
Retailers no longer
need to maintain a large number of stores like before in their country, he
said, adding that instead, they are actively searching for opportunities to
open stores in international markets, and they are particularly fond of
Currently, many
international brands have their eye on the Asian market, and most
particularly
Mark Burlton
stressed that most of the products of brands making their appearance in
However, prior to a
retailer pouring direct investment into any project, they must always
carefully weigh the pros and cons of the long-term venture.
One of the more
prominent obstacles that foreign retailers coming to
The process of
finding good location is arduous work. Overall project quality in
These are highly
complex and significantly important issues that retailers coming to
Cushman and
In 2015,
Thai Nguyen
actively betters investment climate
The
Duong Ngoc Long,
Chairman of the provincial People’s Committee, said his province always
creates the most favourable conditions possible for investors in terms of
investment permits and ground clearance.
Having welcomed a
high-tech complex project invested by Samsung Group from the
The province has
also hastened ground clearance in Yen Binh, Diem Thuy, Song Cong and Nam Pho
Yen industrial parks, enabling investors to kick-start the construction there
at an early date.
Regarding
administrative reform, it has promulgated 20 mechanisms and policies to
facilitate investment, notably the application of the “one-stop-shop”
mechanism in dealing with administrative formalities.
Regular dialogues
between businesspersons, provincial officials and bankers to ease
difficulties for local businesses have also been maintained.
As a result, many
investors have accessed preferential loans from commercial banks and
benefited from some tax policies.
In the first half
of this year, Thai Nguyen attracted 19 foreign-invested projects valued at
US$134 million, bringing the total to 66 with a combined investment of around
US$3.8 billion.
Local firms
seek investment opportunities in Turkey
A Vietnamese
business delegation is visiting
A Vietnamese
business delegation is visiting
The delegation, led
by Dien Quang Company Director General Ho Quynh Hung, are making the visit at
the invitation of Levent Çakıroğlu, CEO of Arçelik, one of Turkey’s leading
industrial groups.
The two sides are
expected to establish an official cooperation channel, bolstering bilateral
trade ties.
Dien Quang CEO said
he wants to study the Turkish markets and secure a foothold in the Middle
Eastern country, which he described as the largest export market of
During their stay
in
Bac Ninh
provides VND300 bln for Samsung Display
The People’s
Council of northern Bac Ninh province on July 10 approved a VND300 billion
incentive package to recruit a new Samsung Display project to the
The package
provides VND287 billion to fund 50% of the cost of infrastructure facilities
on an area spanning 46 hectares and another VND12 billion for employee training.
The maximum
allotted for training each employee is capped at VND1.5 million, which is
further limited by an overall cap of 8.000 employees.
As part of the
deal, the Bac Ninh provincial People’s Committee granted an investment
license for a US$1 billion Samsung Display at
The Samsung project
is projected to produce 48 million electronic products per annum, create
8,000 jobs and generate revenue of nearly VND6 billion annually.
Viettel in
Africa presented with Mobile Innovations Awards
Movitel, a joint
venture between
This is the third
consecutive year in a row that Movitel has been selected for the coveted
award for its achievements and innovation in mobile technology.
Since its inception
in May 15, 2012, the company subscribers have climbed to 5 million (making up
32% of market share) and it is poised to take the lead in the market in the
coming time.
Last year, the
company’s total revenue was US$154.5 million with profits of over US$8.8
million.
AEC could
be a bitter pill for sugar industry
The sugar and
sugarcane industry should look for ways to enhance its competitiveness,
especially with the ASEAN Economic Community set to come into existence next
year.
Vo Tong Xuan,
chairman of the Tay Ninh Sugar and Sugarcane Research Centre and senior
adviser on sugar to the Thanh Thanh Cong Group, said sugarcane and sugar
production costs remain high in
The industry is
thus at risk of losing on home turf once the AEC comes into being, he told a
conference organised by the Thanh Thanh Cong Group.
More than 200
scientists, farmers, and local and foreign executives from the sugar industry
attended the conference that analysed successful models from
Nguyen Huu Loc,
chairman of Thanh Thanh Cong's sugarcane committee, said the area under
sugarcane increased slightly in recent years to 289,018ha to yield a sugar
output of 1.58 million tonnes in the 2013-14 crop.
"The average
sugar yield in
Ho Thai Binh of
Nuoc Trong Sugar Joint Stock Company, which grows 2,150ha of sugarcane in
Profits have
increased to VND27.25 million (US$1,285) per hectare compared to VND17.89
million without irrigation during the dry season, he added.
Nguyen Trong Thua,
director of the Department of Processing and Trade for
Agro-Forestry-Fisheries Products and Salt Production, said the small scale
and scattered production made it hard to mechanise sugarcane production,
resulting in high costs and low productivity.
Besides, a lack of
irrigation and use of unsuitable sugarcane varieties also affected
productivity, he said.
Post-harvest loss
of sucrose in the cane was high, especially in areas where transport from the
fields to the mills was limited, he said.
Factors that cause
a reduction in sugarcane yields include growing unsuitable varieties, poor
techniques, and inappropriate choice of planting time, fertilisers, and
irrigation, and failure to mechanise, according to Loc.
The planting time decides
sugarcane yields, good preparation of land help roots grow well, and
mechanised planting helps reduce costs.
Meanwhile,
disease-free and high-purity saplings plays a decisive role in increasing
yields, and farmers should be careful in translocating strains since they are
not suitable for all regions.
Le Ngoc Tinh, a
cane grower in Tay Ninh, said controlling dangerous sugarcane diseases was
also very important.
He said authorities
should invest more to produce harvesters suitable for each region. While
sugar companies should co-operate with farmers associations to set up
co-operative teams to make it easy to use machines in sugarcane cultivation,
he added.
Loc said the
country had10 different areas suitable for cane cultivation, each with
different climatic and soil conditions, and so it was important to find a
suitable model for each region.
Besides studying
the latest global models to identify new technologies, successful domestic
models should also be expanded, he said.
Thua urged the
sugar industry to boost research to make use of sugarcane by-products, saying
this would help reduce sugar production costs and improve the competitiveness
of Vietnamese sugar.
Vinacomin
posts 18% increase in H1 turnover, profit declines
The Viet Nam
National Coal and Minerals Industries Group's (Vinacomin) turnover in the
first half of the year was VND55.3 trillion ($2.6 billion), representing 18
per cent year-on-year increase.
Vinacomin is
expected to show VND600 billion (US$28.5 million) profits, meeting 30 per
cent of this year's target.
Vinacomin's Deputy
General Director Nguyen Van Bien told a press conference in Ha Noi on
Thursday that the low profit was due to increasing taxes and fees imposed on
the group.
Bien said that from
the beginning of February, tax on natural resources rose two per cent, making
the group pay VND1 trillion more in a year.
In addition, it
also had to pay more than VND1 trillion a year to get the rights for
exploration.
"The
increasing taxes and fees, together with unchanged coal prices in the
domestic market for the past three years have caused difficulties for
Vinacomin," he said.
He added that the
high taxes and fees would make the coal sector run out of capital for
investment.
He asked the
Government to lower taxes and duties, to help the group accumulate capital to
develop its coal mines while allowing it to export coal to
Vinacomin's General
Director Le Minh Chuan said coal exports to
Chuan said in the
process of restructuring, the group has absorbed nine single member companies
into its branches. It has also completed privatisation of two out of six
companies.
It withdrew VND1.6
trillion from non-core businesses in the finance and banking sectors.
Vinacomin has
ensured jobs for more than 126,000 labourers with an average income of VND7.7
million ($360) each a month, increasing 3 per cent over the same period last
year.
He said the group
was committed to making the Nhan Co Aluminium project operational by 2015.
Vinacomin is
looking to have a turnover of VND105 trillion this year, and produce 37.7
million tonnes of coal with consumption of 35 million tonnes. Of this, coal
exports would be 8 million tonnes and 27 million tonnes would be for domestic
consumption.
It would improve
capacity, lower product prices and complete its construction projects to
ensure energy security.
It planned to
increase the salaries of workers from 5 to 10 per cent.
Minister of
Industry and Trade, Vu Huy Hoang placed high value on the coal sector's
achievements in the first half of the year despite the difficulties.
Hoang urged
Vinacomin to make greater efforts as coal and electricity industries could
affect other sectors such as building materials and fertilisers it was
facing.
He asked the group
to accelerate its restructuring and focus on its core businesses.
Rubber glut
to last another two years
Despite a fall in
rubber export prices, many farmers in
With an oversupply
of rubber in the market, the price plummeted to US$1,979 a tonne in the first
half of the year compared to its peak of US$3,000 a tonne in 2011, said Pham
Dong Quang, deputy head of the Crop Production Department.
Global oversupply
is expected to last for two more years, but will gradually shrink because of
a decline in production in rubber-exporting countries in
In addition, the
recovery of the world economy is expected to increase demand for rubber, he
said.
Tran Ngoc Thuan,
president of the Viet Nam Rubber Group and chairman of the Viet Nam Rubber
Association, said the current rubber price was "really not that low,
just low compared to its peak."
Do Duc Oanh, owner
of Doan Ket farm in Binh Phuoc Province, who has more than 60ha under rubber
cultivation, said that despite the price fall, he was still making a good
profit.
However, many
farmers are not using proper harvest techniques, which affects their rubber
productivity and quality, Oanh said, adding that the Government should pay
more attention to helping farmers use better methods.
He also petitioned
the Ministry of Agriculture and Rural Development to have better management
of seedling production organisations as many unreliable seedling providers
operated in the market.
Many delegates at
the seminar said that reports that many farmers were cutting down rubber
trees to plant other crops were untrue.
Quang said
according to reports from departments of agriculture and rural development of
many provinces, about 3,856ha of rubber was cut in the first half of the
year.
"However, of
that amount, 3,123ha was from old rubber gardens or from trees that could not
recover after being hit by storms last year that need to be replanted,"
he said.
Only about 733ha,
mostly planted on unsuitable cultivation land that was economically
inefficient, was cut down for other higher profit crops, he said.
The area of rubber
tree plantations increased rapidly from 454,100 ha in 2004 to 995,600 ha last
year, about 115,600ha higher than the Government's plan for rubber
development, he said.
VN-EU FTA
will benefit Vietnamese firms: experts
The
They said the FTA
with the EU would improve
The FTA with the EU
would conform to World Trade Organisation (WTO) standards.
The country's
export turnover to the EU market wass predicted to increase by four per cent
annually after the FTA is finalised.
The import-export
tariff on most Vietnamese products exported to the EU would gradually drop to
zero, creating an opportunity for Vietnamese enterprises.
However, to be able
to enjoy the advantages of the FTA, domestic businesses needed to be fully
aware of technical barriers to trade imposed by the EU relating to quality
and points of origin for products.
Le Trieu Dung ,
Deputy Director General of the Multilateral Trade Policy Department under the
Ministry of Industry and Trade, said local producers needed to increase
investment to improve product quality. The improvement of production would
also have a positive effect in the long term.
According to Tran
Ngoc Quan Deputy Director of the Ministry of Industry and Trade's European
Market Department, Vietnamese businesses should make every effort to raise
product quality to meet technical standards required by the EU market to
raise their competitiveness and boost export turnover.
According to the
General Statistics Office (GSO), in the first six months, the EU has taken
the lead in
Le Ky Anh , an
expert with the EU delegation to
Ngo Van Sinh, a
senior official from the Agro-Forestry Fisheries Quality (NAFIQAD), said the
EU was an important market for
The eighth round of
FTA negotiation concluded on June 28, and both sides are now planning to
finish the negotiations this October.
The FTA will enable
the country to make annual gains of about $1.5 billion by 2020 when export
tariffs are cut. The estimated increase in gross domestic product is about
2-2.5 per cent, and wages are estimated to improve by around 5 per cent.
Likewise, imports
from the EU will increase by 25-35 per cent, reflecting the greater reduction
in tariffs.
Policy
needed on wind investment
The Government
needed to develop a policy that encouraged investment in wind power projects
in order for the sector to progress, according to
In 2011, the
Government issued Decision 37/2011/QD-TTg to support wind power projects with
a target of reaching 1,000 megawatts (MW) by 2020 and 6,200MW by 2030, Le
Tuan Phong, deputy head of General Department of Energy, said at a seminar
held by the Ministry of Industry and Trade (MoIT) and the GIZ in Ha Noi on
Thursday.
Phong said that
since the decision,
The MoIT and GIZ
have conducted a survey to examine the issues investors have faced during the
development of these projects, and asked the Government to support investors
interested in developing the local wind power market.
According to GIZ
experts, difficulties included the support policies for the development of
wind power and its potential gains.
The survey also
found that many local enterprises that lacked expertise in the field invested
in projects believing they could get rich quickly.
Foreign investors
who were informed of sector's potential also discovered that the wind
capacity was less than required and cancelled their investments.
At the three
operating wind power projects, experts said that with the average
construction cost stood at US$2 million per MW of wind power with annual
operation costs of $35,000 per MW, investors had suffered losses.
The GIZ also said
that
The GIZ also said
the Vietnamese Government should make land rent exempt for investors on the
coast instead of building turbines at sea.
The government
should help enterprises to access loans and offer credit guarantees, the GIZ
survey said.
The Ministry of
Finance should exempt them from the 10 per cent import tax for wind turbines,
which pushes costs up.
Regarding the price
of wind power sold to EVN, the GIZ suggested that the price should be
increased to 10.4 US cents per kWh instead of the 7.8 cents investors are
currently receiving.
Larger
lenders on track to hit annual targets
Several banks have
posted satisfactory profits, achieving around half of the annual targets,
during the first half of this year, the Sai Gon Dau Tu (Sai Gon Investment)
online reported.
They have achieved
the results although the margins between deposits and lending interest rates
were narrowing, and the business conditions remained tough.
TPBank announced
that it had earned VND263 billion, or US$12.52 million, representing 60 per
cent of the annual target. Its deposits and outstanding loans grew 4.5 per
cent and 8.8 per cent, respectively, while bad debts declined 0.3 per cent at
1.66 per cent in the period.
Eximbank Chairman
Le Hung Dung said the bank has already reached over half of the year's profit
target of VND1.8 trillion, or $85.71 million, adding that this figure is
achievable if the economy doesn't see fluctuations between now and the end of
the year.
He noted that the
current context requires greater efforts by the banks as lending activities
remain a challenge with the risks of increasing bad debts.
For the first five
months, BIDV reported a profit of approximately VND2.5 trillion, or $119.05
million, and Sacombank posted about VND1.3 trillion, or $61.90 million. Both
figures were close to half of the banks' quotas for 2014.
Industry insiders
said it won't be easy for banks to complete their annual goals because the
current margins between deposits and lending rates are only 1 to 2 per cent.
Meanwhile, in credit activities, the margins should be 3 per cent or more so
that banks can establish provisional funds and obtain profits.
Due to this, it
will be hard for banks to avoid adjusting the profit targets in the fourth
quarter, like they had done last year, a senior banker said.
Tran Du Lich, a
member of the National Advisory Council for Financial and Monetary Policies,
said it is unlikely that the general credit situation will see significant
improvement in the coming months, and this will challenge banks expecting
high profits this year.
New cotton
plant to boost garments sector
The Phu Hung cotton
plant will officially begin operations in August in the central
The plant has an
annual capacity of 21,600 spools and once completed, will generate jobs for
200 workers and produce 100 per cent cotton yarn with an average output of
240 tonnes per month.
A development
strategy for the garment industry was approved by the Prime Minister and the
Ministry of Industry and Trade for the Central Region.
FLC to issue
shares to pay dividends, increase charter capital
The FLC Group will
issue shares to pay dividend and increase the charter capital.
It got the nod from
the State Securities Commission on Wednesday to offer shares to the public to
pay dividends at ratio of 4 per cent and to existing stakeholders to increase
its charter capital.
After the issue of
shares, FLC's charter capital would be increased to approximately VND3.15
trillion or $148 million from VND1.54 trillion or $72.3 million.
In the first half
of this year, the group met 50 per cent of the full year's profit target
which was set at VND350 billion or $16.5 million.
SSC
approves merger of two securities companies
The State
Securities Commission on Thursday approved the merger of Viet Nam International
Securities (VISE) and the Dai Tay Duong Securities Joint Stock Company (OSC).
The merger is part
of the efforts to restructure securities companies and will be implemented
with the swap ratio of 4:1 for VISE and 13.5:1 for OSC, and must ensure that
trading is implemented without any interruption.
If the deal goes
through, it would be the second merger of securities companies in
VISE reported an
aggregated loss of nearly VND75 billion or US$3.5 million in the first six
months of this year. As of the end of March, 55 of the 90 existing securities
firms reported aggregated losses, statistics of the finance ministry showed.
Restructuring
securities companies was a core issue during the restructuring of the stock
market which aimed at developing a more stable and healthy market.
An international
seminar was held in
In a keynote
address, Deputy Minister of Natural Resources and Environment Bui Cach Tuyen
stressed that in recent years,
The total revenue
in the industry exploded by 86.3% to US$25.5 billion in 2012, he said, adding
that the trend is continuing.
The IT industry’s
gross exports hit a record high of US$20 billion in 2012, up 82% from a year
earlier, and accounted for 17.5% of the country’s total exports for the year.
However, Minister
Tuyen cautioned that environmental pollution caused by production activities
in the industry is posing great challenges to the environment and the nation’s
health.
Other participants
at the seminar in turn shared their experiences in electronic waste
collection, management and treatment, as well as global environment
protection.
There was general
consensus that electronic waste treatment in
Da Nang
Airport Service to list on Ha Noi Exchange
The Da Nang Airport
Service Joint Stock Company (Masco) will list more than 3 million of its
shares under the code MAS at the Ha Noi Stock Exchange this year.
This was reported
by the Investment Newspaper. In the first quarter of this year, Masco earned
VND58 billion, or US$2.76 million, in revenue and after-tax profit of VND7.8
billion, or $371,000, which was thrice the value of the after-tax profit of
the same period last year.
The service supply,
including the supply of flight meals at the
Hoa Phat
wants to issue shares to employees
Steel maker Hoa
Phat Group (HPG) will seek the opinion of its stakeholders about issuing
shares under the employee stock ownership plan (ESOP) as bonuses for its
internal staff.
HPG plans to issue
more than 9.6 million ESOP shares. With HPG currently being traded at around
VND55,000 or $2.6 per share, the ESOP shares, which are expected to be issued
in the next two years, are estimated to be worth VND530 billion or $24.9
million.
HPG expects to earn
VND23 trillion or $1.08 billion in turnover and VND2.2 trillion or $130
million this year, up 25 per cent and 80 per cent respectively over last
year.
BIDV offers
$93m in separate bonds to investors
The Bank for
Investment and Development of Viet Nam is offering VND2 trillion or $93.8
million in separate bonds to a group of investors.
Sources quoted by
Dau Tu Chung Khoan (Securities Investment) newspaper said the bond issue,
which would reportedly end by the end of this month, aims to increase
capital. Last year, the bank issued VND3 trillion or $140.8 million worth of
bonds, which helped it raise its capital adequacy ratio.
As of the end of
last year, BIDV's capital adequacy ratio was 10.23 per cent.
Major
cities aim to boost co-operation
Trade and
investment promotion campaigns and economic forums have yet to play a
significant role in the development of five major cities in the country.
Director of Da Nang
City's trade and industry department, Phan Van Kha, said during a meeting in
Da Nang yesterday that production, retail and service values of five cities –
Ha Noi, Hai Phong, HCM City, Can Tho and Da Nang – grew to over VND623
trillion (US$30 billion) during the first six months of this year, a 12.5 per
cent increase in comparison with the same period last year.
The figure also
contributed 43.3 per cent to the country's production, retail and service
values in the last six months.
"However, even
though the production value of five cities contributes 45 per cent annually,
the link in trade and investment has not been satisfactory in the past few
years," Kha said.
"Economic
co-operation has just seen information exchanges, discussions of investment
opportunity, trade fair and potential, but there has been no effective
action," he said.
"The joint
action of co-hosting conferences and forums on investments and trade were
rarely seen, while the policy on investment promotions and hi-tech
developments or supportive industries has yet to see an agreement signed
among the five cities."
Vice Chairman of
the
"There are
various challenges for us ahead when
"It calls for
further co-operation and close links among the five cites in creating power
to sustain the economic growth and contribution to the country," Viet
said.
"It is also a
chance for us to set out a long-term strategy of industry development in
joining world trade."
Despite an economic
crisis hitting the world in late 2008, the five cities have seen medium
growth in industrial production and exports in the first half of this year.
Hai Phong was the
biggest with an industrial production growth of 11.8 per cent, ahead of
Over 1,976 projects
have been put into operation in 6,400 industrial parks and complexes in the
five cities over the first half of this year, an equal value of VND4 trillion
($190 million).
Export turnover in
the first half of this year has earned $22 billion, an 8.2 per cent growth in
the same period last year, accounting for 31.3 per cent of the country's
total export turnover.
However, only Ha
Noi,
Two cities,
Direct air routes
are available between five cities.
Source:
VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
|
Thứ Năm, 17 tháng 7, 2014
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