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BUSINESS
IN BRIEF 30/7
Ministry
requires petrol prices cut on world downward trend
The Finance
Ministry has required petrol companies to cut retail petrol prices as from
14:00 on July 28 against the backdrop of declining world prices, with the
companies to decide the specific price by themselves.
The reduction will
mark the 13th adjustment in the domestic market within this year.
The prices of
petroleum should go down at least VND325 per litre, taking into account the
gap between the current price and the base price.
Meanwhile, the
price of diesel 0.05S and kerosene should not be higher than the base prices
of VND22,334 (US$1.063) per litre and VND22,464 (US$1.069) per litre.
Mazut (fuel oil),
however, still sees its price unchanged but dealers will no longer receive
the price subsidy of 300VND per litre from the Petroleum Price Stabilisation
Fund.
On July 18, the
Ministries of Finance and Industry and Trade told retailers to draw 670 VND
per litre from the Petroleum Price Stabilisation Fund to offset their losses.
Newport
Corporation seeks business opportunities in Turkey
A delegation from
the Saigon Newport Corporation led by general director Nguyen Dang Nghiem
paid a working visit to
The visit,
co-organised by the
At a seminar held
during the visit on seaport services, general director Nguyen Dang Nghiem
stated he was very impressed with his first visit to
He said that
Nghiem emphasised
that the Saigon Newport Corporation wants to play an important leading role
in providing a full package of seaport services to the Turkish market as well
as serve as a driving force promoting cooperation between other businesses of
the two nations.
Meanwhile,
The nation enjoyed
a trade surplus of US$1.26 billion in the first seven months of the year,
according to the Ministry of Planning and Investment (MoPI) General
Statistics Office.
Total export
turnover was estimated at US$83.5 billion, representing a year-on-year
increase of 14.1%.
Of the figure, the
domestic economic sector made up US$27.7 billion, up 12.2%, while foreign
invested enterprises (FIEs) accounted for US$55.8 billion, up 15%.
In the reviewed
period,
Some products
showed decreases in export volume and value such as rice, cassava, rubber,
coal, oil and gas.
By July 2014, the
Danang
endeavours to become major socio-economic hub
Danang city plays
the pivotal role in
Le Hong Anh,
Politburo member and permanent member of the Party Central Committee’s
Secretariat, made the statement at a working session with Danang city’s Party
Committee on July 28 regarding the socio-economic situation in the first half
of the year and preparations for the upcoming Party Congresses at the
grassroots level.
During the first
six months of the year, the city’s Gross Domestic Product (GDP) reached
VND20,000 billion, up 9% on-year while total state budget collections hit
nearly VND7,000 billion. There have been across the board positive
developments in fields such as trade, service, import-export and tourism.
During the session,
Anh praised the excellent results made by the municipal party committee and
local residents in recent times but pointed out some limitations in the
city’s management.
He suggested that
in the short term, Danang should put forth a concerted effort to disseminate
information on the city’s socio-economic development advantages and
disadvantages among party members.
The ultimate goal
should be to fully identify available resources and opportunities and optimum
strategies to fully modernize and industrialize the city and region before
2020.
Promoting the
City’s image as a luxury travel destination as well as establishing
international and national level tourism centres should also be top priority
in as the city’s development strategy.
RoK – a
leading foreign investor in Vietnam
Statistics from the
Foreign Investment Agency (FIA) of
Lotte-Sea
Logistics, Lock& lock, Simone, Vina-Seafoods Pride, Quanon, Young
Chemical Vina and Magic Vina were among the many Korean investors that
attended a recent dialogue with the managing board of the Long Hau Industrial
Zone (IZ) in Long An province, discussing FDI attraction and IZ support
policies.
Such dialogues with
Korean investors have become increasingly more common in recent times.
RoK businesses
consider
They universally
regard
Experts caution,
however, it is important that the cash inflows are utilised efficiently and
effectively to their greatest advantage to achieve sustainable economic
development that benefits the national social welfare.
Without an
effective localisation process, the national domestic industry and
The country should
aim to realise the long-term benefits of developing a self-reliant domestic
industry focused on creating high added value products and avoiding at all
costs transforming itself into a nation that just does outsourcing, easily
exploited for its cheap labour and natural resources.
According to the
FIA, not only RoK investors but also those from Hong Kong and
For instance, Hong
Kong ranks second after the RoK among foreign investors in
The FDI sector
continued to enjoy an export surplus in July, bringing its total export
surplus to US$9.78 billion in 7 months.
The manufacturing
and processing industries drew the greatest attention from foreign investors
with 448 projects worth US$6.66 billion (making up 69.9%), followed by real
estate with US$1.13 billion and construction with US$547.58 million.
Samsung
Thai Nguyen rakes in US$2 billion from exports
More than three
months since it was put into operation, the Samsung Electronics Vietnam Thai
Nguyen (SEVT) earned nearly US$2 billion from exports, mostly smartphones and
tablets (June statistics).
The plant had
produced 5.4 million products in the reviewed period and the number is likely
to rise to 6 million in late July.
It is expected to
fetch US$8 billion in revenue this year and create 22,000 jobs for local
people.
The SEVT started
construction in March 2013 with total registered capital of US$2 billion. The
facility was inaugurated on March 10, 2014 and earned US$90 million from
exports in its first 20 days.
To date the SEVT
and another Samsung plant (SEV) based in Bac Ninh province have made an
enormous contribution to the country’s total export earnings.
Vietnam Customs
statistics show the country’s total export value from mobile phones and spare
parts hit US$12.3 billion in a period from January to July 15, a year-on-year
increase of 14.6%. Samsung made up a large proportion of the total.
The Saigon Newport
Corporation (SNP) held a conference on July 27 with representatives from 20
leading Egyptian businesses in
Speaking at the
meeting, Vietnamese Charge d' Affaires to Egypt Nguyen Hong Son introduced
Vietnam’s achievements in the renewal process underscoring the nation’s
exceptional annual average growth rate of 6.76% over the past 10 years amidst
the global economic crisis.
Son said
Son pointed out the
favourable geographic locations of the two countries, saying that
The two countries
have great potential for strengthening cooperation in logistics and
transport, especially in the context of carrying deep and wide economic
reform, accelerating privatisation, attracting FDI capital and developing
export-driven economy, Son concluded.
A SNP
representative said the company holds the leading market share among terminal
operators in
SNP currently
manages a system of 14 ports and two inland container depots (ICD) in the
country with total assets of VND30,000 billion (roughly US$1.4 billion). Last
year, it grossed over VND7,901 billion (US$367 million) in revenue.
At the meeting,
more than 20 members of the Egyptian International Freight Forwarding
Association (EIFFA) expressed their desire to cooperate with SNP to supply
all-in services for import-export businesses in the two countries.
A number of EIFFA
members said they will visit
Apartment
prices see slight decline across Ha Noi
The selling prices
of apartments in the capital fell by a slight 1 to 2 per cent in the second
quarter of the year compared to the previous quarter.
According to a
municipal Construction Department report, the prices of middle market segment
apartments in Dong Da, Ha Dong, Tay Ho and Hai Ba Trung districts saw a price
decrease of 2 per cent. Apartment prices in Cau Giay, Hoang Mai, Thanh Xuan
and Nam Tu Liem outer districts had fallen 1 per cent. Long Bien and Ba Dinh
districts remain unchanged in the selling prices of apartments during the
period.
In the high-end
market segment, apartment prices in Thanh Xuan and Tay Ho districts fell by 1
per cent, while those in Cau Giay and Nam Tu Liem stayed the same as the
previous quarter.
The department said
that prices were based upon figures from the municipal Taxation Department,
real estate transaction floors and People's Committee in the city's
districts.
However, figures
were different from previous reports by property consulting firms, such as
CBRE Viet Nam and Savills.
According to CBRE
Viet Nam, selling prices of apartments in the market in the April-June period
rose 0.2 per cent against the previous quarter.
CBRE said there was
additional money paid for property to intermediate agencies at projects which
have been built according to schedule or were near operational as the market
heated up.
Savills Viet
Decree No 20,
issued by the Ministry of Construction, required the publishing of two
indices, including the number and prices of estate transactions in the
property market at each locality.
It also proposed
pilot implementations in four big cities, including Ha Noi,
These indices are
to serve as a statistical tool to monitor the market in order to help State
management agencies provide suitable policies and strategies in the property
sector.
Farming,
forestry, fisheries exports reach $17.4b
The value of
In July alone, the
industry gained $2.38 billion.
Total export values
included $8.31 billion from farming products, 5.9 per cent higher than the
same period last year; $4.2 billion from seafood products, up 24.5 per cent;
and $3.52 billion from forestry products, up 13.2 per cent.
According to the
Ministry of Agriculture and Rural Development, pepper crops saw growth, with
119,000 tonnes shipped abroad at a value of $862 million, up about 29 percent
in volume and 42 percent in value, Vietnam News Agency reported.
The largest markets
for Vietnamese peppers during this period were the
Meanwhile, cashew
nuts enjoyed an increase of over 2 percent, with 158,000 tonnes exported in
the reviewed period, taking in over $1 billion, nearly 16 percent in volume
and 17.5 percent in value higher than the same period's figure.
The seven-month
exports of coffee reached $2.31 billion, a year-on-year increase of nearly 22
percent, while wood and wood products enjoyed a 13.4 percent rise in
earnings, with $3.35 billion.
Meanwhile, seafood
exports brought home $4.2 billion, up 24.5 percent year on year. Vietnamese
seafood products mainly were shipped to the
Also, a drop in
both volume and value was seen in the export of rice, tea, rubber and cassava
products.
Rice exports
experienced decreases of 8 percent in volume and 4.8 percent in value, at
3.86 million tonnes and $1.75 billion.
The country
exported 451,000 tonnes of rubber, valued at $828 million, a drop of 10
percent in volume and 32 percent in value.
At the same time,
tea also suffered a 6.7 percent fall in volume and a 1 percent decrease in
value, with only 70,000 tonnes shipped, worth $116 million.
Report
predicts sweet success for confectionery makers
The future of the
domestic confectionery market is positive, reported the Business Monitor
International (BMI).
According to the
BMI Vietnam Food and Drink report for the second quarter 2014, the local
confectionery revenue is expected to gain a year-on-year increase of 10.65
per cent to VND27.27 trillion (US$1.3 billion) for this year.
A year-on-year
surge between 9.3 per cent and 10.6 per cent has been forecast for the
revenue from 2015 to 2018. That would bring in between VND30.15 trillion
($1.4 billion) and VND39.88 trillion ($1.9 billion).
"The long-term
outlook for the Vietnamese confectionery market is positive," said BMI.
Factors such as
rising purchasing power, favourable demographics, growing health awareness
and continued investments in the sector will support confectionery demand,
especially with regard to chocolates, it said.
It said local
chocolate revenues are expected to gain a year-on-year increase of 11.88 per
cent to VND4.54 trillion ($215.2 million) for this year.
The revenue is
forecast to have a year-on-year surge of 12 to 13 per cent for each year from
2015 to 2018, which is VND5 to 7.3 trillion ($237-346 million).
More personal
wealth is likely to translate into a greater discretionary appetite for
premium confectionery products. As an increasing number of domestic
confectioners expand their upmarket product ranges, it is likely to bolster
value sales growth over the coming years.
The BMI said 51.9
per cent of the Vietnamese population is estimated to be younger than 30, and
the maturing of this demographic group means that there are dynamic
opportunities in the mass market. Moreover, this demographic group is
generally more receptive to Western cultures and will give an impetus to
confectionery products.
Health awareness is
prompting shifts of consumption habits towards functional and healthy
confectionery products.
Capitalising on the
growing trend, domestic confectioners such as Tan Tan Food & Foodstuff
and Vina Mit are expanding their functional product offerings.
Regarding
investments in the local confectionery sector, BMI said sustained competition
levels in the Vietnamese confectionery sector have ensured that dynamism in
the market is unlikely to cool off any time soon.
Nabati
"Investment in
Belgian ingredients
firm Puratos, which manufactures products for the baking and confectionery
sector, announced in autumn 2012 that it will team up with fellow Belgian
firm Grand-Place Holding, which produces chocolate ingredients, to set up a
joint venture in
The two firms will
hold a respective 70 -30 stake in the new venture and will invest $10 million
in the operation over the next five years.
As of now, domestic
confectionery firms hold 70 per cent of the local market shares. These
include Kinh Do, Hai Ha and Bibica along with North Kinh Do, Huu Nghi, Pham
Nguyen, Duc Phat and other small private producers. Meanwhile, imported
confectionery products have accounted for 30 per cent of the local market.
Software
companies eye business demand
The market for
business management software is promising for IT companies thanks to
increasing demand for more effective management among local companies.
Many software
developers told Viet Nam News that there is a vast untapped market since only
a fraction of the thousands of companies in the country has already invested
in business management software.
It is an effective
tool for companies to strengthen their competitiveness against domestic as
well as foreign rivals by allowing them to better manage assets, accounts,
human resources, and other aspects, they said.
"There is no
study or research available on the exact demand," Nguyen Thanh Tung,
director of the Viet Nam Data Communication Information Technology (VDCIT)
Centre, told Viet Nam News.
"But it is
clear that more and more companies have invested in and focused on developing
information technology to improve their management."
VDCIT has come out
with solutions for tasks like customer relations management, human resource
management, project management, big customer relations management, and assets
management and found that "the market is in a fledgling state and has
not been explored and the potential is huge."
He explained that
only big companies buy expensive and comprehensive management solutions
covering all aspects of business.
The smaller ones,
based on their specific needs, use individual and specialised software, he
said, adding "thus, there is a great opportunity to develop them."
A marketing staff
at a software company in
"Only large
companies buy comprehensive software because the price is expensive at around
US$20,000. Small companies buy individual solutions."
"Vietnamese
software developers have an edge over their foreign rivals," Tung said.
"Made-in-Viet
"VDCIT is
setting up a distribution system and plans to invest more in human resources
and use cloud from next year," he said.
Sugar
industry needs overhaul
Revamping the
process from plantation to production to consumption were critical for the
sugar industry to overcome the prices that had fallen in three consecutive
seasons.
According to Doan
Xuan Hoa, Deputy Director of the Department of Processing and Trade for
Agro-Forestry-Fisheries Products and Salt Production, the sugar industry was
facing oversupply ahead of the 2014 to 2015 season.
In the 2014 to 2015
season, there was a plan to reduce the total sugar-cane plantation area to
300,000 hectares from 309,400 hectares previously, with the total output
reaching 1.6 million tonnes.
Hoa said that in
order to deal with sugar oversupply, the sugar and sugarcane association
needed to join hands with enterprises to raise the consumption plan in 2014
coupled with an export plan to ensure market stability.
He added that
planning of sugar and sugarcane development to 2020 with vision to 2030 would
be reviewed to ensure compliance with the reality, potential and
competitiveness of
Deputy Minister of
Agriculture and Rural Development Vu Van Tam, said at Thursday's conference
that sugar processing companies must revamp their production in order to cut
costs, which was vital for competition.
He added that the
planning of cultivation areas should be revamped to ensure efficiency and
productivity.
In the 2013 to 2014
season, sugar plantations signed contracts with farmers to consume the
sugarcane of nearly 267,000 hectares, making up for 90 per cent of the total
concentrated plantation area.
According to the
statistics of the Ministry of Agriculture and Rural Development, sugar
stockpiles reached 548,940 tonnes as of June 15, up 56,430 tonnes against the
same period last year. By the end of this year, the total sugar inventories
were expected to reach 251,240 tonnes.
Sugar prices were
seen falling from VND18,000-19,000 (US$0.84-0.89) per kilogramme in 2011 to
VND14,500-15,000 ($0.68-0.7) per kilogramme in 2013.
The price of one
kilogramme of sugar, including value-added taxes, has dropped to between
VND12,400 and 13,000 ($0.59-0.61) since March.
A representative
from the Viet Nam Sugar and Sugarcane Association earlier said that smuggled
sugar, which amounted to hundreds of thousands of tonnes a year with lower
prices, was a big headache and harmed local producers amid a huge volume of
sugar stockpiles.
At the end of June,
the Ministry of Agriculture and Rural Development proposed to the Ministry of
Industry and Trade not to extend sugar export licences granted in the first
half of this year but instead granting them for 200,000 tonnes of sugar at
the end of this year.
Insurance
firms see healthy H1 growth
The insurance
market grew 12.6 per cent in the first half of this year compared to the same
period last year despite the slow economic recovery, decreased interest rates
and low credit growth.
The online portal
Viet Nam Economic News quoted Deputy Director of the Insurance Supervisory
Authority (ISA) under the Ministry of Finance Pham Dinh Trong as saying that
the macroeconomic situation had an impact on the insurance market in the
first months of this year. However, insurance businesses still posted good
business performances. They earned premiums totaled VND24.129 trillion
(US$1.132 billion) in the first half of 2014 (up 12.6 per cent from the same
time in 2013), of which non-life premiums reached an estimated VND13.077
trillion or $613.94 million (up 7.3 per cent) and life premiums came to
VND11.052 trillion or $518.87 million (up 19.5 per cent).
In the first half
of this year, insurance companies paid an estimated VND9.806 trillion
($460.375 million) in compensation, of which life insurance companies paid
about VND3.894 trillion ($182.81 million) and non-life insurance businesses
paid VND5.912 trillion ($277.558 million).
Insurance
businesses invested in the economy an estimated VND116.318 trillion ($5.46
billion), up 12.4 per cent from the same period in 2013, of which life insurance
companies invested about VND93.137 trillion or $4.372 billion (up 16 per
cent) and non-life insurance companies invested about VND23.181 trillion or
$1.088 billion (up 0.05 per cent).
Along with
expanding retail services, selling products through the banks and launching
new products, insurance businesses focused on business administration to
control their risks. In the first half of this year, the insurance industry
rapidly and timely assessed and paid in advance compensation to businesses
affected by the disruption in Binh Duong, Dong Nai and Ha Tinh provinces.
Deputy Minister of
Finance Tran Xuan Ha assessed that the quick claim settlement helped
businesses stabilise trading and production activities, contributing
significantly to the protection of reputation and image and improving the
investment environment of
Trong said that in
the first half of this year, ISA worked with relevant authorities to inspect
a number of life and non-life insurance businesses including the AIA,
Manulife, Dai-ichi, Hanwha Life, VASS, AAA and BSH.
ISA launched many
programmes to maintain the stability and development of the insurance market.
ISA Director Phung Ngoc Khanh said that management agencies would step up the
inspection and supervision of insurers and insurance brokerage businesses and
promote insurance business efficiency assessment.
Tax
agencies to audit suspect firms
The tax authorities
will audit enterprises which have allegedly made suspicious transactions,
according to a list provided by the State Bank of
Deputy finance
minister Do Hoang Anh Tuan instructed the General Department of Taxation's
(GDT) Inspectorate to audit the firms named in the Anti – Money Laundering
Information Centre's list this month. The firms can possibly evade paying
more than VND50 billion (US$2.347 million) in taxes.
Municipal and
provincial taxation departments will be responsible for investigating those
who can possibly evade taxes of less than VND50 billion.
Tuan said that the
audit results must be submitted to the GDT and the Anti-Money Laundering
Information Centre within 45 days of receiving the Anti-Money Laundering
Information Centre's list.
According to the
GDT, the tax agencies collected an additional VND4.119 trillion or $193.38
million in the first half of 2014, up 80.8 per cent year on year after the
audit of 20,983 firms.
During the period,
the agencies also investigated 557 firms which had declared losses and showed
signs of transfer pricing, and collected an additional VND580 billion or
$27.23 million.
The GDT reported
that the country's tax collection in the first half of the year was VND335.09
trillion or $15.73 billion, up 14.5 per cent year over year and equal to 53.7
per cent of the annual tax collection target. Forty-six of 63 cities and
provinces nationwide met more than half of their tax collection targets in
H1.
To increase the tax
collection in the second half of the year, finance minister Dinh Tien Dung
asked the GDT to intensify the collection of tax arrears and to take bold
measures against tax evasion.
The GDT must focus
on investigating suspect enterprises, and create favourable conditions for
the production and businesses of firms by organising regular dialogues to
help them resolve their tax-related problems.
Government
to issue instructions on selling State stakes in non-core firms
A decision
explaining Decree15/ND-CP, which orders the selling of the State's stakes in
non-core businesses at below face value, is expected to be issued this month.
This was announced
on the Ministry of Finance's website. The withdrawal of capital at below face
value was among the key resolutions which were taken to accelerate the
restructuring of State-owned enterprises (SOE). It was also decided that 432
SOEs must be equitised during the 2014-15 period.
Although Decree
15/NQ-CP was issued in March, allowing the sale of the State's stakes at
discounted rates, the process has been going slow as many SOEs are stuck,
especially because of the withdrawal of outside investments which had
incurred losses, and due to the lack of detailed instructions.
From 2013 to June
2014, SOEs managed to withdraw around VND1.85 trillion, or US$87.3 million,
from their non-core businesses, comprising only 22 per cent of the total
non-core investments of VND22 trillion ($1.04 billion) which need to be
withdrawn by 2015. There is a huge load of work that needs to be completed by
the end of 2015.
However, Deputy
Director of the Corporate Finance Department Dang Quyet Tien said the capital
withdrawal process was projected to speed up during the second half of the
year, with the Government taking measures to accelerate it.
Deputy Prime
Minister Vu Van Ninh recently asked ministries and provincial people's
committees to punish leaders of enterprises which failed to implement
equitisation or capital withdrawals efficiently.
The Decree 69/2014/ND-CP
on the establishment, re-arrangement and operation of State economic groups
and corporations, which will come into force on September 1, has banned SOEs
from investing in irrelevant sectors.
The State Capital
Investment Corporation (SCIC) has studied to buy a stake in 12 groups and
corporations in non-core businesses such as banking and insurance, according
to the Vietnam News Agency.
SCIC's General
Director Lai Van Dao told a press meeting held in Ha Noi on Thursday that the
units were big State-owned enterprises including Viet Nam Rubber Industry
Group (VRG), Viet Nam National Oil and Gas Group (PVN), the Electricity of
Viet Nam (EVN), the Viettel Telecom Group, the Viet Nam National Coal and
Minerals Industry Group (Vinacomin) and Viet Nam National Shipping Lines
(Vinalines).
Dao said SCIC met
with Vinalines and VRG on the issue and would meet with other groups and
corporations based on evaluation of the divestment's effectiveness and
progress.
He added that in
the first half of the year, the corporation had succeeded in divesting its
capital in 31 enterprises. Of these, in 26 businesses the corporation sold
its non-core investments while in five other firms it sold a part of such
capital.
"The selling
of capital was higher than in the same period last year, bringing VND863
billion ($41 million) to the corporation and posting 46 per cent year-on-year
increase," he said.
SCIC gained VND3.35
trillion ($159.5 million) in turnover in the period, increasing 37 per cent
over the corresponding period last year and met with 57 per cent of the
year's target. Its after-tax profits reached VND2.6 trillion ($123.8
million), representing 34 per cent year-on-year rise.
By the end of June,
its list of businesses included 335 enterprises with total State-owned investment
of more than VND15 trillion ($714.2 million) and charter capital of over
VND65 trillion ($3.09 million).
According to SCIC's
restructuring plan, it would divest from 376 firms by 2015. However, it would
hold long-term capital in Viet Nam Dairy Products Joint Stock Company
(Vinamilk), Hau Giang Pharmaceutical, FPT, and Viet Nam National Reinsurance
Corporation.
In addition, it
would have controlling stakes in more than 20 joint stock companies including
Bao Minh Insurance Corporation, the Trang Tien Investment and Trade Company.
FDI sinks
despite new projects
Total registered
capital of foreign direct investment (FDI) projects in the first seven months
this year decreased by 20 per cent year-on-year to US$9.53 billion, according
to the Ministry of Planning and Investment's Foreign Investment Agency (FIA).
However, total
disbursements from FDI firms were estimated at $6.8 billion, increasing 2.3
per cent against the corresponding period last year. FDI businesses generated
an export turnover of $55.83 billion and incurred around $46.04 in imports,
resulting in a trade surplus of $9.78 billion.
In the reviewed
period, as many as 889 new FDI projects were licensed with total registered
capital of $6.85 billion, representing 0.9 per cent year-on-year decrease.
About 300 projects increased their investment by $2.67 billion, reducing 46
per cent in comparison with the same period last year.
The processing and
manufacturing industries took the lead in attracting FDI with 448
newly-licensed projects with new registered and additional capital of $6.66
billion that accounted for 70 per cent of the total FDI. They were followed
by the real estate sector with $1.13 billion, accounting for 12 per cent of
the total and the construction sector with $547.58 million.
At present, 46
countries and territories have been investing in
The northern
Some big FDI
projects that were granted licences in July included South Korean investor's
Samsung Display Company in
According to a
report from the city's People's Committee, in the first seven months, total
wholesale turnover of the city reached VND336.380 trillion (US$15.85
billion), a year-on-year increase of 12.8 per cent.
Despite
difficulties arising due to
Major export
increases were in pepper (up by 85.5 per cent); vegetables (48.5 per cent);
machinery, equipment and spare parts (37 per cent); seafood (14.8 per cent);
coffee (14.6 per cent); rice (11 per cent) and garments (8.4 per cent).
Meanwhile, the
city's total imports went down by 8 per cent over the same period last year,
to $14.1 billion.
The city's
industrial production increased by 6.2 per cent over last year, with major
increases (7.2 per cent) in mechanics, chemicals, electronics, plastics and
rubber.
Foreign direct
investment (FDI) totalled $1.1 billion, a year-on-year increase of 80.2 per
cent.
In the same period,
the city received nearly 2.4 million foreign visitors, up by 9.1 per cent
over 2013.
Total revenue of
the city's tourism sector in the first seven months reached nearly VND52
trillion ($2.45 billion), an increase of 8.5 per cent over last year.
The chairman of HCM
City People's Committee, Le Hoang Quan, said despite difficulties and
increases in fuel prices, the city CPI (consumer price index) rose by only
0.12 per cent, the lowest in the past few years, while the city's exports and
industrial production were on the rise.
These increases
indicate that the city's economy has developed well and has not been too
dependent on overseas markets.
Tran Anh Tuan,
deputy head of HCM City Institute for Development Study, said despite signals
of stable economic growth, the city would face difficulties and challenges
and needs to focus on support industries, diversify overseas markets for its
imports and exports; and adjust its import and export structure to avoid
being dependent on the Chinese market.
To score high
growth and fulfill the targets of 2014, Quan asked the city's Government
agencies to focus on measures to put prices and inflation under control; to
stimulate consumption; and to work with other localities across the country.
Quan asked agencies
to increase revenue from taxation but to ensure good business and production
for enterprises in the city.
He told agencies to
enhance taxation from land resources, saying this is one of the major sources
of revenue for the city's infrastructure development.
Ninh Thuan
has new shrimp processing plant
The Thong Thuan
seafood processing company inaugurated a shrimp processing plant with an
annual capacity of 6,500 tonnes of end products in the central
The 13 million USD
plant, the second of Thong Thuan company, will employ 2,500 workers to
produce high quality products meeting customers’ requirements in such choosy
markets as
In the first six
months of this year, shrimp exports generated 1.8 billion USD, more than half
the export value of the seafood industry (3.45 billion USD), according to a
report by the Ministry of Agriculture and Rural Development.
Shrimp exports are
expected to continue increasing in the second half of the year.-
Trade with the
Asia-Pacific region made up 61.8 percent of
According to the
Ministry of Industry and Trade (MOIT),
The export values
to Northeast Asia (excluding
Meanwhile shipments
to the Oceania markets, including
On the import side,
Northeast Asia
(excluding
During that same
period,
According to the
MOIT,
Exports to
PM approves
long-term transportation plan
Prime Minister
Nguyen Tan Dung has issued a decision to approve the transport ministry's
restructuring project on sustainable development through 2020.
Under the project,
the market share for inter-provincial cargo and passenger road transport
would increase to 54.4 per cent and 93.2 per cent, respectively, by 2020.
Public transport
and key transport infrastructure constructions would receive priority from
the State, according to Sai Gon Giai Phong (Liberated Sai Gon) newspaper.
By 2015, 600 km of
expressway will be built. Expansion of the National Highway No1A from Ha Noi
to Can Tho would be completed by 2016.
The project also
targets restructuring railways by transporting large volumes of cargo on
medium- and long routes, and passengers on medium-distance journeys and
public transport within mega cities.
Railway
infrastructure management and railway transport business will be separated in
the near future.
The current North -
South railway system will be upgraded and modernised. In addition, high-speed
railway sections on the North - South system will be built.
There will also be
a connection between the Central Highland provinces and seaport system in the
The plan also calls
for an increase in market share of national seagoing vessels for import –
export commodity from 25 to 30 per cent.
By 2020, the market
share for marine cargo shipping would increase to 21.25 per cent, meeting
94.3 per cent of international cargo shipping and 8.55 per cent of domestic
inter-provinces cargo transport volume.
The national
seaport system and international gateway ports in key economic zones will
also receive more investment.
International
investors will be encouraged to develop the Van Phong international transit
port in the central
For aviation, the
government wants to increase market share for low-fare airlines, and promote
domestic aviation cargo, which is closely linked with international and
regional cargo aviation.
In addition,
international passenger transport via air is planned to grow up to nearly 46
per cent in traditional markets like Southeast Asia, Northeast Asia,
The aviation sector
will promote cargo aviation connections to South Asia region, Eastern Europe
and former
International
airports like Noi Bai, Tan Son Nhat,
The plan also calls
for a new policy to encourage foreign investment in the
Equitisation of
national carrier Viet Nam Airlines will take place this year and the
Government will keep 75 per cent of registered capital and 65–75 per cent of
stocks.
As for local
traffic, land for transportation will take up 16 – 26 per cent, and public
transport will continue to be developed. Personal vehicles in Ha Noi and
HCMC needs
17,000 workers in August
Employers in HCMC
are predicted to need about 17,000 laborers next month, according to the
The demand for
manual workers and workers of intermediate vocational level is the highest
with approximately 5,100 in each segment, while the demand for college
graduates is estimated at 4,250 people. The demand for skilled workers and
those of basic vocational level makes up the balance.
Tran Anh Tuan,
deputy director of FALMI, said employers will still focus on recruiting
employees with skills and qualifications in the final months of this year.
Therefore, new graduates from colleges and universities should equip
themselves with useful knowledge and skills to meet enterprises’ demands.
In the third
quarter, the city’s labor demand is estimated at 55,000 in a wide range of
areas including manufacture, business – retail/wholesale and information
technology (IT), the last-named sector needing more skilled workers due to
the expansion of the foreign IT companies in Vietnam.
Tuan estimated the
city will need 150,000 laborers in July-December, in which the demand for
seasonal workers is estimated at 40,000.
The labor demand
will continue to rise in the sectors of business, services, textile-garment,
leather-footwear, tourism, consulting and real estate.
Source: VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
|
Thứ Ba, 29 tháng 7, 2014
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