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BUSINESS
IN BRIEF 25/7
US life
insurer enters Vietnam
The Ministry of
Finance has granted a license to the BIDV Metlife Insurance Co. Ltd for its
establishment and operation in
The company is a
joint venture between the leading
The joint venture
has a charter capital of VND1 trillion (US$48 million), with the
BIDV Metlife
initially focuses on providing life and health insurance products.
National
CPI rises 0.23% in July
The nation’s
consumer price index (CPI) for July rose by 0.23% over June and 4.94% over
the same period a year ago, according to the General Statistics Office (GSO).
Among the baskets
of goods used in the CPI calculation, transport services recorded the highest
growth (0.44%), followed by construction (0.43%), food and services (0.26%),
and beverages, cigarettes, garments, hats, and footwear (0.2%).
Only post and telecom
services saw a decline (0.01%), which is well within the statistical margin
of error, while other goods witnessed slight rises of less than 0.3%.
Earlier,
HCM City seeks
business opportunities in Argentina
A business
delegation from
The delegation, led
by Vice Chairman of the HCM City People’s Committee Nguyen Huu Tin, held a
meeting with Vice President of Buenos Aires Legislature Maximiliano Ferraro,
and briefed the host on
At the meeting, Tin
highlighted fruitful cooperation activities between
He noted that
During their
The Vietnamese
delegation was scheduled to fly to
A Vietnamese
business delegation, led by Deputy Minister of Industry and Trade Tran Quoc
Khanh paid a working visit to
During their visit,
the delegation met with Angolan business community leaders and governmental
officials to discuss socio-economic development plans and alternative
proposals to enhance bilateral economic and trade cooperation.
Angolan leaders
reaffirmed their commitment to elevate the long-standing ties between the two
countries and thanked
They also voiced
their hope that
The two sides
agreed to jointly organise celebrations of the upcoming the seventh session
of the Intergovernmental Committee and the 40th anniversary of bilateral
diplomatic ties in 2015.
Within the
framework of the visit, a Vietnam-Angola trade forum was held, attracting a
huge number of Angolan and Vietnamese businesspeople.
PVEP asked
to boost overseas investment
Deputy Prime
Minister Hoang Trung Hai has proposed that PetroVietnam Exploration
Production Corporation (PVEP) focus on mapping out strategies to boost its
oil and gas exploration and exploitation overseas.
Hai made the
request at a ceremony that PVEP held to receive the Labour Hero title in
Hai praised the
corporation for ensuring energy security and contributing to national
development and defence.
He also asked the
corporation to keep a close eye on new developments in the
As of late 2013,
the corporation exploited more than 47 million tonnes of oil and condensate
and 40.37 billion cubic metres of gas, raising reserve to 305.52 million
tonnes of oil equivalent. The PEVP also carried out explorations of 148 wells
including 24 newly discovered oil fields.
It managed or
participated in the management of 43 oil and gas projects at home. It has
collaborated with foreign contractors to put many fields into stable, safe
and effective operation, including Su Tu Den (Black Lion), Su Tu Vang (Golden
Lion), Te Giac Trang (White Rhinoceros), Hai Su Trang (White Sea Lion), and
Dai Hung oilfield.
Besides, PEVP
controlled or took part in the management of 20 oil and gas projects in 15
countries worldwide. It conducted exploration and exploitation activities at
some oilfields in
From 2007 to 2013,
the corporation gained VND43.5 trillion (US$2.05 billion) in revenue and
VND23.8 trillion (US$1.1 billion) in pre-tax profits. It also paid VND14
trillion (US$658 million) of tax to the state budget.
India –
leading pharmaceuticals supplier to Vietnam
The Vietnam
Industry and
Overall, top ten
pharmaceutical exporters to Vietnam were India, France, Germany, the Republic
of Korea, the UK, Italy, Switzerland, the US, Belgium and Thailand,
accounting for 69.5% of the total value (US$670.1 million).
Singapore-Vietnam
trade turnover picks up
Two-way trade
turnover between
According to the
Singapore Department of Statistics,
Five groups of
high-value exports included phones and spare parts (US$538.5 million), petrol
and bi-products, (US$186.3 million), boilers, machinery and equipment (US$172
million), glass and glass products for construction (US$92 million), and
coffee and tea (US$87.2 million).
Meanwhile,
Singapore’s exports to Vietnam hit US$6.51 billion in the past six months,
up 21.7% compared to the same period last year, mostly from oil and gas
(US$1.78 billion), mobile phones and components (US$1.61 billion), plastic
products (US$391.5 million), and publications and printing products (US$298
million).
Among its exports
to
By the end of June,
Ca Mau
licenses nine additional foreign aided NGO projects
The People’s
Committee of southern Ca Mau province has issued nine additional investment
certificates for foreign aided non-governmental organisations (NGOs) projects
with investment capital of over US$2 billion.
The locality now
has 23 organizations which are implementing 31 foreign aided NGO projects on
health, education and training, natural calamity prevention and environmental
protection with total committed investment capital of US$11.6 million in the
2011-2014 period.
According to the
provincial People’s Committee, these projects are being implemented
effectively with the assistance of foreign partners.
The province is
currently formulating a plan to mobilise funding from NGOs in the 2014-2017
period. In addition, the locality has updated information, compiled documents
and expanded relations to call on funding from the People’s Aid Coordinating
Committee (Paccom) and a Vietnam Union of Friendship Organisations (VUFO)
southern representative office.
Australian
Bank sets up representative office in VN
The Governor of the
State Bank of Viet Nam (SBV) has issued a license No. 56/GP-NHNN authorising
National Australia Bank (NAB) to sets up a representative office in Ha Noi.
Accordingly, the
National Australia Bank is allowed to carry out a variety of non-profit trade
promotion activities in line with
One of the key
functions of the representative office will be to monitor the progress of its
funded projects in
The National
Australia Bank is headquartered at Level 1,
Fruit
prices soar in
With the fruit
harvest season drawing to a close, the prices of many fruits have begun
increasing in the Cuu Long (
In
Huynh Van Buon,
head of the Tan Phuoc Bureau of Agriculture and Rural Development, said
traders are now willing to pay high prices for the fruit, which now costs
VND4,000-4,200 per kilogramme at the field, VND3,000 higher than last month.
"At this
price, pineapple farmers can make a profit of VND35-40 million ($1,600-1,900)
per hectare a year."
Many farmers expect
the price to go up to VND4,500-5,000 soon.
Tien Giang has more
than 15,400ha under pineapple and an annual output of 200,000 tonnes.
With the
application of Vietnamese Good Agriculture Practice (VietGap) standards,
pineapple farmers here have earned good profits in recent years.
King orange prices
have risen to a record high of VND46,000-47,000 a kilogramme.
Supply is low not
only because it is well past the peak harvest season but also because of
citrus greening disease, which is fatal to citrus trees.
Ho Van Ut, an
agricultural promotion official in Tien Giang's Cai Be District, indicated
that the disease was widespread.
Tien Giang, the
delta's largest fruit growing area, has about 12,000ha of citrus fruits,
including more than 6,000ha of king orange.
In
Nguyen Thi Hong
Khanh of Ke Sach District's Thoi An Hoi commune said if the price stabilises
at these levels farmers can make a profit of VND200 million ($9,500) per
hectare.
"The price
increase has helped stabilise my family's income and guava cultivation,"
Khanh, who harvests around 200kg of the fruit every two days, said.
Ke Sach District,
Soc Trang's largest guava growing area, has around 1,000ha under the fruit,
according to the local Agriculture and Rural Development Bureau.
Guava has helped
many local farmers escape poverty because it is easy to grow, cheap to tend,
and the tree fruits for a long time, it added.
Shrimp
breeding model boost profits
The model to
establish large-scale fields to breed black-tiger shrimp in the Mekong Delta
district of Dong Hai has resulted in high profits for farmers.
Early last year,
the Dong Hai District Agriculture and Rural Development Bureau in
Under the model,
farmers are given financial support and farming techniques under the
Vietnamese Good Agriculture Practices (VietGap) standards.
Under a new
cultivation method, farmers change the water a fewer number of times in
shrimp ponds.
Duong Minh Doan,
who owns 2.6ha of land on a large-scale shrimp field, said participating
farmers had a bumper harvest last year.
"My family
made a profit of VND180 million (US$8,600)," he said.
Farmers earned a
profit of between VND60-80 million ($2,900 – 3,800) per ha a year.
The breeding period
for each black-tiger shrimp crop lasts about three months.
Vo Ngoc Can, who
breeds 2.8ha of black-tiger shrimp under the model, said he had consolidated
pond banks to prevent water leakage, and improved water quality, including
the content of pH and salinity.
"I use
probiotic products in shrimp ponds once every 15 days to improve water
quality," Can said.
River water is
taken into the ponds when there are high tides, he said.
Water in shrimp
ponds was released into the river only when it was necessary, with the
instruction of agricultural officials, he said.
Nguyen Truong Han,
head of the Dong Hai District Agriculture and Rural Development Bureau, said
the large-scale shrimp field model had been expanded to four of Dinh Thanh
Commune's five hamlets, with a total of 200ha.
Dong Hai District
plans to develop large-scale shrimp fields on a total area of 260ha, focusing
on Dinh Thanh and Long Dien Tay communes.
"With high
profits from the model, farmers have developed large-scale shrimp fields to a
total of more than 380ha so far," Han said.
The farmers have
joined co-operatives to work on the large-scale farming models, he said.
The new farming
model has also helped protect the environment as farmers have reduced the
amount of dredging of mud in shrimp ponds, which they had discharged into the
environment.
Deputy PM
inspects oil and gas project
Deputy Prime
Minister Hoang Trung Hai, yesterday, led a working delegation to visit the
Joint Venture Vietsovpetro to inspect its activities for oil and gas
exploration.
After inspecting
the entire venture, Hai praised Vietsovpetro's staff for their contribution
towards the venture during the first half of the year, as Vietsovpetro's oil
and gas exploration had met its target during this period.
The venture is
planning to exploit at least 17 million tonnes of crude oil and 10 billion
cubic metres of gas this year.
Stressing on the
role of oil and gas explorations as the country's key economic sector, Hai
asked the staff to work hard to ensure the venture reached its annual target.
He asked them to
ensure strict supervision over the operations of its oil and electricity
plants to ensure safety, protect the environment and continue to co-operate
with relevant State agencies to implement oil-related agreements. He also
asked them to help protect the country's sovereignty.
Kien Giang
backs sea farming
Authorities from
the Mekong Delta province of Kien Giang have granted licences to 340
investment projects totalling VND166.5 trillion ($7.93 billion) for the
development of sea-based economy for the 2010-2013 period.
Of the total
projects,
The province has
183 operational projects which focus on breeding, processing farm produce and
seafood, transport and tourism services.
Viglacera reaches
US$31.5 million in building material exports
The Viet Nam
Building Glass and Ceramics Corporation (Viglacera) expected exports of
building material to total US$31.5 million for this year, though it was
experiencing difficulties in production and business.
Viglacera Chairman
Luyen Cong Minh said yesterday that the corporation had exported its ceramic
tiles to many markets, including the European Union,
Five
industrial zones scaled down in Hai Duong Province
The Government has
approved plans for adjusting areas of five industrial zones in the
Of these, four industrial
zones have reduced their area - from 300 hectares to 200 hectares for Cong
Hoa, from 170.82 hectares to 135 hectares for Dai An, from 470 hectares to
433 hectares for enlarged Dai An, and from 72 hectares to 57 hectares for Phu
Thai.
Meanwhile, the area
of the Tan Truong industrial zone will increase from 100 hectares to 112.6
hectares.
The Government has
approved the provincial development plan for industrial zones by 2020.
Knauf begun
construction of first factory in Vietnam
Knauf
Located in the Dinh
Vu Industrial Zone in
“We just launched
two distributors in
“We are planning to
expand our relationship with key partners such as distributors, architects,
developers, government authorities with an aim to widely introduce our state-of-the-art
products with German technology to
Knauf Group was
founded in 1932 by the brothers Karl and Alfons N. Knauf in
Konica
Minolta opened representative office in Hanoi
Konica Minolta’s
new representative office comes two years after it established Konica Minolta
Business Solutions Vietnam Company in
“
Tadahiko Sunitani,
deputy general director of sales and marketing at Konica Minolta, said the
Japanese firm would like to make the brand popular among Vietnamese consumers
to compete with rivals such as Canon, HP and Fuji Xerox.
Konica Minolta is
one of the oldest companies in
In Vietnam Konica
Minolta is a relative late comer while other brands such as Canon and HP have
been active in the market for years.
“We acknowledge our
late entrance to the market, and recognise that a challenge lays before us in
making customers know about our products and brand,” said Sunitani.
He added
At this time,
Konica Minolta is the leading player in the printing industry in
Vu said the
company’s business growth in
Orfarm
opens second organic outlet in Hanoi
Orfarm, the first
made-in-Vietnam organic food brand opened its second outlet in
Well known as an
organic food brand, Orfarm is offering a direct “Farm to Customer” service,
providing fresh and raw organic food as well as ready-cooked products sourced
from Bao Chau Organic Farm in Soc Son district on the outskirts of
All products with
the Orfarm label are grown and bred in accordance with the eco-friendly
technology of
Orfarm products are
produced according to three main criteria: zero waste, no insecticides, and
no stimulants or harmful chemicals.
Using advanced
methods, EM technology creates farming conditions whereby putrefactive
microorganisms are suppressed and organic materials are enhanced through the
process of fermentation as opposed to putrefaction. In addition, living
organisms, as well as inorganic materials are equipped with the means to
impede deterioration.
The prices of
Orfarm’s organic products are higher than the refined or processed products
on the market, but this is offset by its precious value to human health and
the environment. Furthermore, the products are grown in accordance with the
forward-thinking environmental paradigm of co-existence and sustainability.
According to Asami
Hisanori, a technical expert with EMRO, Orfarm’s products are a good example
of how high-tech methods can be used to solve modern global problems.
Hisanori said that
although it was not easy to implement a system that sold directly from the
farm to customers, he was “happy that Orfarm can carry out this difficult
task while successfully maximising the benefit to customers. Products from
here are strictly monitored from the sourcing stage to the final product, and
customers can have complete faith in the products’ quality.”
Orfarm’s investors
remain confident and consistent in their business approach.
“Apart from the
desire to do something meaningful, we are also customers who want clean
foods. We think that only truly clean products can ensure the health of the
next generation. This ‘human interest’ model is something that should be
shared by all current producers,” said Nguyen Lien Ha, a representative of
Orfarm.
Starbay
resort project hears stern ultimatum
Hong Kong’s
Millennium Group may lose its planned $1.6 billion Starbay resort project on
the
The committee’s
Deputy Chairman Le Khac Nghi, in a recent meeting with Starbay Holdings, a
subsidiary of Millennium Group and also developer of the Starbay project, set
a deadline of July 20 for the developer to deposit nearly $1 million and
complete its application to adjust its investment certificate.
Additionally,
Starbay Holdings must prepare financing for site clearance to be ready at a
time of the committee’s choosing and complete its 1/500 scale construction
plan within six months as of June 10.
This is the
strongest warning so far the people’s committee has given to Millennium
Group’s subsidiary concerning its project’s long delay. Over the past three
years, the provincial committee revoked dozens of resort projects on the
“The Phu Quoc
Investment Management and Development Authority has urged the developer many
times to comply with the timeline, but we have yet to see any movement from
their side,” he said.
“The developer has
also issued several requests that conflict with the Vietnamese laws.
Therefore the project should be revoked in-line with current regulations,”
Nghi continued.
The Starbay project
is the largest so far planned for the
The 520 hectare
beachside project, licensed in 2008, plans to build nine hotels, a golf
course, villas and apartments, as well as a number of service and
entertainment venues.
Two years ago, in
an interview with VIR, Millennium Group’s CEO Martin Kaye said Starbay was
nearing completion on all its planning and land issues. He affirmed that
construction of the first phase would start within the year (2012) and
insisted that financing was in place. Despite his promise, the project has
yet to begin and Millennium Group’s capability and intention to build the
project are in question.
Terumo BCT
opened new factory in Ho Chi Minh City
Terumo BCT, a
global leader in blood component, therapeutic apheresis and cellular
technologies, today opened of its new manufacturing factory near
The $100 million
manufacturing facility supports the expansion of Terumo BCT’s business
globally. When manufacturing operations begin in early 2015, the new
manufacturing facility will provide increased production capacity.
According to Terumo
BCT, the factory in
Terumo BCT is a
global medical device manufacturer headquartered in
“This completion of
this manufacturing facility represents a continued commitment to our
customers on every continent, by providing global capacity and advancing
manufacturing techniques that will be used in Vietnam to increase product
speed to market and enhance our ability to meet customers’ needs,” said Craig
Rinehardt, executive vice president, global operations, Terumo BCT.
Yutaro Shintaku,
president and representative director at Terumo Corporation, said Terumo
BCT’s new
“We are optimistic
about the opportunities this new facility provides for us to participate in
the region’s growth and live our mission of contributing to society through
healthcare,” he said.
Low budget
leads to deteriorating social housing
Government
apartment buildings in
The CT19A apartment
building in the Viet Hung Urban Area, Long Bien District is a six-storey
building with 515 apartments with no elevator. After five years, many parts
of the building appear run-down.
Doan, a resident in
the building said her family lives on the sixth floor. Her roof leaks water
and cracks have appeared all over the building. She said, "When it
rains, the underground parking lot floods. I even fear that its roof might
collapse one day."
Despite its
appearance and the nuisances, rent in the building has just gone up from
VND29,100 to VND38,515 per square metre. "My total rent increased by
VND1 million (USD48). The number may not bother working people but it's a
huge sum for retirees like us," another resident said. He went on to say
that increased price might force some residents to move.
Vo Vinh
Meanwhile, the
Viglacera Infrastructure Investment Development Company is planning to invest
in a social housing project in Gia Lam District, but they are dealing with
problems with the procedures. Even home buyers have to go through a lot of
procedures before they can are allowed to buy an apartment.
Tran Anh Tuan, Director
of Viglacera Company, said potential residents must have at least one-year
temporary resident permit and low-income people must have been contributing
to the social insurance system for more than one year. According to Tuan,
students would find it almost impossible to fulfill the requirements. He
added that the Ministry of Construction should loosen their regulations.
Fake Phu
Quoc fish sauce troubles enterprises
A vast amount of
inauthentic Phu Quoc fish sauce has flooded the market after Phu Quoc received
the EU certificate of Protected Designation of Origin in 2012.
The problem was
brought up by Nguyen Thi Tinh, chairwoman of Phu Quoc Fish Sauce Association
on July 17 at a meeting held by the Ministry of Industry and Trade,
authorities of
Though they have
the certificate of Protected Designation of Origin, they still have to
compete with other 'Phu Quoc' fish sauce brands which are really produced in
Even in the
domestic market, an estimated 80% of Phu Quoc fish sauces is fake.
Ho Kim Lien,
Director of Khai Hoan Fish Sauce Company, said only 50% of the output meets
the requirements of Protected Designation of Origin and only 5% of those are
actually made and bottled on
While fake fish
sauces have become ubiquitous in the market, enterprises in Phu Quoc mostly
sell materials for making fish sauce instead of the finished product.
According to many
companies, fake fish sauce can easily gain access to the market because they
are cheaper.
VN strives
to become car spare parts supplier
PM Nguyen Tan Dung
has signed Decision 1168/QD-TTg dated on July 16 approving the strategy for
The overall goal is
to turn the auto industry into an important one of the country, give a boost
to the development of other industries, and become a spare parts supplier to
the global car production chain.
Under the strategy,
The country will
give priority to small-sized and economical cars that provide seating for up
to nine people encourage the production and assembly of special-purpose
vehicles.
Domestic car
production is expected to meet 67 percent of the local demand in 2020 and 78
percent in 2035.
Auxiliary
industries will also be developed to support the auto industry in a bid to
gradually raise the localization rate.
The auto industry
is also expected to ship 90,000 cars by 2035.
Sustainable
dairy zone project breaks ground in Ha Nam
FrieslandCampina
The groundbreaking
ceremony marked an important milestone and is considered a first encouraging
step for the development of sustainable dairy zones in
This project is a
partnership between FrieslandCampina, De Heus, Wageningen UR, Friesian Agro
Consultancy B.V, Fresh Studio, Ha
It is expected in
the project that by 2018, three dairy zones will be established, with each
zone having about 50 dairy farms, to produce at least 7,000 tons of fresh
milk per year and create approximately 350 jobs.
After five years of
participation in the project, each dairy farm is expected to have a herd of
50 to 80 head of cattle. In addition, the project aims to develop and
implement training programs, set up a dairy cattle feed supply chain, and
provide financial services for farmers participating in the project.
As the main partner
in the project, FrieslandCampina undertakes the roles of management,
execution and direct investment, and will establish three specialized dairy
zones in
The company will
help farmers gain access to preferential loans; provide training and supply
technical advice for farmers; and develop and establish procurement and
control systems to ensure good milk quality as well as the consumption of
fresh milk at competitive prices.
The dairy zone in
Ha
FrieslandCampina has
been in
HSBC Bank said in
its latest report that
A strong supply
chain will help the country earn more from the products made and outsourced
in this market and lessen its heavy dependence on material imports.
In the Asia
Economics quarterly report released on July 17, HSBC said
“We believe TPP
considerations and recent tensions with
Concerning
macro-economic issues, the bank projected inflation in
HSBC also
reiterated the limited impact of the
Core investors in
Since last
December, HSBC’s Purchasing Managers’ Index (PMI) has stayed above 50,
showing the upward trend of the sector. Output and quantity of purchases have
been strong as the response to price discounts and better external demand.
In June, the
country’s exports gained double-digit growth, albeit with some deceleration.
But with the export performance primarily driven by foreign invested
enterprises, the concern is that the
In addition to
waiting for the conclusion of the European Union (EU) FTA and good news from
the TPP negotiations, HSBC said observers will also watch out for the
progress of State-owned enterprise (SOE) and banking sector reforms.
Prime Minister
Nguyen Tan Dung stated that the Government would be equitizing 432 SOEs by
2015. Numerous regulations were passed to streamline the process and now
everyone is waiting to see whether this will galvanize the momentum for
reform, the report said.
SCC to
divest all stakes from eight firms
Saigon Construction
Corporation (SCC) will sell all its stakes at eight enterprises and reduce
its holdings at three others, according to the company’s restructuring scheme
for the 2013-2015 period.
In addition, it will
disband or allow five other affiliates to go bankrupt to reduce the number of
its subsidiaries or enterprises where it owns shares from the current 28 to
15, according to the scheme endorsed last month by the HCMC government.
Accordingly, the
State-owned SCC will withdraw all capital from eight companies, including Kim
Thach Joint Stock Company, Construction Joint Stock Company No. 3,
Construction and Planning Consultant Joint Stock Company, and Infrastructure
Development and Investment Joint Stock Company. It will also divest all
stakes in Totalgaz Vietnam Company Limited, G.V.C Development Company
Limited, SATIC Joint Stock Company, and ADEC Joint Stock Company.
Given the scheme,
SCC’s core businesses will include construction of civil and industrial works;
construction consulting; and real estate.
In addition, this
corporation is allowed to do business in such fields as manufacturing and
purchasing building materials, and other products and services related to
construction.
Exchange
rate hike pays modest gains
Businesses say the
appreciation of the US dollar by the State Bank of Vietnam (SBV) in June has
positively affected their businesses, although the benefits remain modest.
On June 19, the
central bank increased the dong-dollar interbank exchange rate by one
percent, after keeping it intact for one year, with one dollar currently
equivalent to 21,246 dong, instead of 21,036.
Director of SBV
Monetary Policy Department Nguyen Thi Hong said the move was meant to support
the nation's export profile and economic growth during the remainder of the
year, as the demands of the economy were low and business performances
remained difficult.
"The banking
sector is sharing its difficulties with us," said Bac Viet Steel Company
director Tran Anh Vuong. "The recent adjustment in the exchange rate
followed a road map and was transparent, and it is supporting enterprises
very well."
But Vuong said the
impact that the change had on production and export was insignificant, except
for such factors as wages and electricity prices, many other inputs were also
affected by the dollar price. These factors accounted for 30 percent of all
inputs at his firm, so profits were limited.
Further, CMC Joint
Stock Company director Nguyen Quang Huy agreed that the move was good for
enterprises in the current context, although the impacts were small.
Nguyen Thi Lan,
director of animal feed company Anh Dung Investment, said importers did not
expect the exchange rate increase, though they had found themselves paying
rising port service charges, as well as production costs, and had to
recalculate their product prices.
Meanwhile,
economist Tran Du Lich said the adjustment was not a change in the SBV's
exchange rate policy, as had been predicted. Rather, it followed the market
supply and demand and was consistent with price developments in
In recent days,
when dong-dollar exchange rates tended to fall on the free market, the SBV
raised dollar buying prices sharply at the regular exchange. This showed its
consistent policy to maintain dollar prices and support exports, market
observers said.
Further, banking
expert Nguyen Tri Hieu said the appreciation of the dollar was necessary,
though the one-per-cent adjustment will not have any significant impact on
the economy. This indicated the central bank's caution in implementing
operational policies within the context that the economy still faced many
challenges.
Bosch
launches automotive R&D center in HCMC
Bosch, a leading
global supplier of technology and services, on July 16 announced the
establishment of an automotive research and development (R&D) center in
HCMC.
This is a second
R&D center of Bosch in
Set up early this
month, the new center will initially focus on computer-aided design (CAD),
simulations and testing of automotive technologies such as continuously
variable transmission (CVT) and fuel injection.
Vo Quang Hue,
managing director of Robert Bosch Vietnam Co. Ltd, said the automotive
R&D center is located next to the software and engineering R&D center
at the E-Town tower in Tan Binh District.
The new center will
initially have a work force of around 30 associates.
Hue described the
setting up of an automotive R&D center as an important step for Bosch
Vietnam. “We remain confident of Vietnam’s role as a strategic hub for our
high-tech manufacturing and R&D activities.”
Since it was set up
in 2010, the software and engineering R&D center, Bosch’s first in
Southeast Asia, has grown faster than its initial estimate by 1.5 years,
reaching the milestone of 500 associates in May this year, he said.
This R&D center
offers smart solutions such as embedded software, hardware and IT tools and
mechanical design, as well as Business IT and IT-enabled services
Mallikarjuna Guru,
managing director of the R&D center for software and engineering, said,
“Our young team of local engineers has experience and competencies comparable
with the best engineers around the globe. This results in increased
productivity and quality of our solutions and has opened up growth
opportunities for us.”
With its proximity
to automotive original equipment manufacturers, the center is strategically
positioned to be the engineering R&D hub for the Southeast Asia region,
according to Bosch.
On July 16 also saw
Robert Bosch Vietnam receiving the “hi-tech status” from the Government for
its factory in Long Thanh Industrial Park in the southern province of Dong
Nai. This means the company can enjoy preferential treatments in terms of
taxes, helping it continue expanding business in Vietnam.
Private
firms scale down operations
Despite the rising
number of private firms in Vietnam in the 2002-2012 period, their operation
scale, workforce and capitalization were all narrowed down, seen in their
share in the national gross domestic product (GDP) shrinking from 15.5% in
2002 to only 11% in 2012, according to the Vietnam Chamber of Commerce and
Industry (VCCI)
Senior economist
Pham Chi Lan, who used to serve as a vice chairwoman of VCCI, asserted the
private sector’s dwindling operations at a meeting with local media organized
by the Business, Studies and Assistance Center (BSA) on Tuesday.
During the talks,
Lan shared the knowledge she had gained from a fieldtrip with a research
group of Vietnam Academy for Social Sciences to take comments from private
businesses in HCMC, Binh Duong, Can Tho and An Giang.
A study by VCCI
shows revenues, competitiveness, and confidence of private enterprises all
declined. Particularly, less than 30% of them last year weighed expansion
schemes.
The number of
newly-registered companies was nearly 50,000 – 60,000 but as many as 40,000 –
50,000 ones shut down business within 2012 alone.
Concerning the
legal system, many companies complained about the ambiguous law and unstable
business environment, Lan said.
Although
enterprises appreciated efforts by governmental agencies in revising and
enacting new laws, they have not had faith in those legal documents that are
described as unfeasible, complicated and troublesome. The overlapping rules
and regulations also cause a lot of troubles to corporate operations.
Lan quoted remarks
by economist Nguyen Ngoc Bich, saying that lawmakers have the mindset of
politicians and do not understand business in general and private business in
particular.
Policymakers in
many instances do not see shortcomings in law enforcement but only take
advantage of their power to put pressure on enterprises.
Lan also mentioned
another obstacle concerning the State policies decried as unsynchronized and
impractical. For example, certain State bodies encouraged export at any rate
despite little profits or even losses while leaving the domestic market
dominated by foreign companies.
It is difficult for
state-owned, private and foreign direct investment companies to work together
due to the lack of a common link while in many foreign countries, all the
big, medium and small companies are all connected together, Lan added.
Vinafood 2,
AGPPS to jointly develop rice industry
Vietnam Southern
Food Corporation (Vinafood 2) has joined forces with An Giang Plant
Protection Joint Stock Company (AGPPS) for a sustainable growth strategy for
the rice industry in the Mekong Delta.
Huynh The Nang,
general director of Vinafood 2, told the Daily that his company is working
with AGPPS over developing large-scaled paddy fields, a model which has been
invested by AGPPS and other enterprises in the region in the past years.
AGPPS has
successfully applied the model to some 10% of the total area under paddy
farming in the Mekong Delta. Nang expected the cooperation with Vinafood 2
will help expand the acreage to 30%.
Vinafood 2 is the
country’s biggest rice exporter with annual shipments of 2-3 million tons of
rice while AGPPS is one of the leading producers and suppliers of quality
rice and other products for export.
“The advantages of
the two sides will certainly create significant changes for the rice industry
in the Mekong Delta,” Nang said.
Huynh Van Thon,
chairman of AGPPS, the partnership with Vinafood 2 will help address
shortcomings of the value chain in the rice industry, enhance the quality of
rice and improve incomes of local farmers.
Thon said AGPPS and
Vinafood 2 will also work towards building strong brands for Vietnamese rice.
As part of the
strategy, Vinafood 2 will ask AGPPS to become its strategic partner in the
future.
Source:
VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
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Thứ Sáu, 25 tháng 7, 2014
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