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BUSINESS
IN BRIEF 4/7
Sugar
inventories up over 56,000 tonnes
Sugar inventories
in the first half of this year rose 56,430 tonnes over last year to 548,940
tonnes, according to the Ministry of Agriculture and Rural Development.
Statistics from the
ministry indicated that as of the middle of June, the sugar sector produced
1.58 million tonnes of sugar, about 55,000 tonnes more than during the same
period last year.
Further, the
country's total sugar consumption during the six month period was 958,330
tonnes, 58,490 tonnes higher than the corresponding period last year. Of
this, domestic consumption was more than 777,000 tonnes, while total exports
were 184,320 tonnes.
Additionally, the
ministry forecast total sugar supplies in the second half of the year would
reach some 926,000 tonnes, including inventory of 548,940 tonnes, local
production output of 300,000 and imports of 77,300 tonnes.
Sugar consumption
in the second half of the year was estimated at 675,000 tonnes.
By the end of 2014,
total sugar inventories are expected to reach 251,240 tonnes.
Also, the ministry
has asked the Ministry of Industry and Trade not to extend sugar export
licences granted in the first half of the year, as well as new licences.
It also proposed to
the Government to only allow temporary imports and exports of sugar at main
border crossings to facilitate domestic sugar production and trading.
Sugar prices in
June rose VND300-500 (US$0.014-0.023) per kilo, in comparison to the previous
month. The price of one kilo of sugar, including value-added taxes for stocks
in the north was VND12,500-13,000 ($0.6-0.62), while those in the central
region and the south were VND12,400-13,000 and VND13,000, respectively.
State-run
firm becomes joint-stock company
Viglacera
Corporation, a State-run building material manufacturer and real estate
investor, became a joint-stock company yesterday.
The change,
expected to create more advantageous conditions for company development, was
announced at its shareholder meeting in Ha Noi on the same day. The
privatisation plan was approved by Prime Minister Nguyen Tan Dung last
December.
According to the
Ministry of Construction's Decision No 716/QD-BXD, dated June 24, 2014, on
the equitisation, Viglacera has a charter capital of VND2.645 trillion, or
US$125.95 million. The firm will make an initial public offering of 264.5
million shares, with a face value of VND10,000, or $0.48, per share.
The State will hold
91.48 per cent of the total equity, while 0.55 per cent will be offered to
the company's employees, and 7.97 per cent will be reserved for other
shareholders.
The Viet Nam Motor
Show 2014 will be held at
Nine big names from
the Viet Nam Automobile Manufacturers Association – Ford, GM, Hino, Honda,
Mercedes-Benz, Suzuki,
Seven other brands
that will be featured at the exhibition are Audi, BMW, MINI, Land Rover,
Porsche, Nissan and Lexus.
MINI distributed by
Euro Auto and Daimler Trucks managed by
This is the second
consecutive year that the show will be held in
Investors
keen on Vinatex’s shares
Portfolio investors
at a conference in
At the seminar,
Vinatex officials answered queries from delegates regarding the company’s
short-term and long-term development strategy and their views for the overall
prospects of the garment and textile industry in
Vinatex has made
remarkable achievements in its business and production activities, earning
US$2.9 billion in export turnover in 2013.The company is targeting to hit an
export turnover of US$5 billion by 2020.
At present, the
group has fully mobilised its resources to create a niche in the
manufacturing supply chain fully expecting the market to explode upon the
signing of free trade pacts with the EU and most especially the upcoming
Trans Pacific Partnership (TPP).
In addition,
Vinatex is devising a plan to import raw materials from other nations in the
region to eliminate the current over dependence on
Economist Le Dang
Doanh spoke about the bright prospects on the horizon for the garment and
textile sector contingent upon the signing of free trade pacts with the
European Union, the TPP and the Custom Union of Russia-Belarus-Kazakhstan.
Hai Phong
enhances trade, investment with Norwegian businesses
A delegation from
the northern port city of
The delegation, led
by head of the Hai Phong Economic Zone Management Board Pham Thuyen, had
working sessions with the Enterprise Federation of Norway (VIRKE) and the
Oslo Chamber of Commerce.
During the
meetings, Hai Phong officials introduced in details the city’s trade and
investment environment as well as projects that it is calling for investment.
They expressed their hope that the Norwegian business organisations will
encourage Norwegian enterprises to set up their trade and investment ties
with the northern port city and
Representatives from
the VIRKE and the Oslo Chamber of Commerce said that they believe new
business opportunities will be opened up in the time ahead, especially when a
free trade agreement between
The chamber’s
officials also pledged to coordinate with the Hai Phong side in introducing
the Vietnamese northern city to Norwegian investors via business seminars and
other channels.
Meanwhile, VIRKE
Director Thomas Angell shared his view on key points that Hai Phong needs to
pay attention to when approaching the Norwegian market.
The Hai Phong
delegation also visited the Vietnamese Embassy and met representatives of the
Vietnamese community in
State bank
toughens stance on capital issues
The State Bank of Viet
Nam (SBV) has instructed banks to clearly detail their plans for the capital
withdrawal of parties whose stakes have exceeded caps.
The central bank
has noted that the withdrawal must be completed no later than the first
quarter of next year.
"The specific
amount of time for handling the capital withdrawal depends on the process of
restructuring at each bank; however, they must meet the deadline,"
remarked Nguyen Hoang Minh, deputy head of the central bank's HCM City
branch, as quoted by Phap Luat TP HCM (The HCM City Law) newspaper.
The HCM City Law
newspaper reported, while citing SBV's sources, that there are five
commercial banks where individual shareholders own more than 5 per cent of
the charter capital each and five commercial banks where institutional
investors hold more than 15 per cent of the charter capital.
As many as eight
commercial banks have shareholder groups and related parties that own over 20
per cent of the charter capital.
Industry experts
have pointed out that the loss of control over ownership has led to the
manipulation of these banks in ways that conflict with group interests.
The central bank
has claimed it will undertake strict supervision of stake-related activities,
such as transferring or increasing shareholdings. If anyone is found
contravening the law, heavy penalties will be imposed.
Economic think-tank
agent Vu Dinh Anh said the real question was whether the central bank could
control the issue across the board.
"Penalties
will depend on the complex nature of each case, the suspects, and the related
parties," Anh noted.
In an attempt to
hinder bank manipulation efforts, the SBV has released the draft of a new
circular to suppress the increasingly sophisticated "familisation"
seen at credit institutions, which is ultimately intended to tackle bad debt
and improve the security of the system.
The draft, which is
pending public feedback, declares that the total credit limit granted to
founding shareholders, major shareholders, family members and related parties
must not exceed 5 per cent of the charter capital of a credit institution.
Credit limits for
major shareholders and their family members must also not exceed their
face-value-based capital contribution to the banks.
The draft restricts
credit institutions from granting privileged loans without collateral to
auditing companies, auditors, chief accountants, major shareholders, founding
shareholders, subsidiaries, companies or those who have established certain
relationships with the bank.
Credit institutions
must report such lending plans to the shareholders, owners and the central
bank.
In another attempt
to soften the illusion of bank capital and improve the transparency of
capital flows, the draft requires credit institutions to report actual
charter capital every six months.
The actual charter
capital is determined after taking out risk provision funds and calculating
all income and expenditure.
If the value of the
actual charter capital is lower than the legislative capital, banks must draw
up solutions and report these to the central bank. If the actual charter
capital falls below 80 per cent of the legislative capital, the SBV will
apply measures to restrict the operations of the banks.
In fact,
cross-shareholding issues have complicated the process of restructuring the
vulnerable banking system. The entire system was recently on the verge of a
crisis following many years of excessive credit growth and easy lending to
State corporations, along with cross-shareholding issues.
Financial reform is
one of the three pillars in a programme of economic restructuring that
Tuna
exports to
Therefore, the
The General
Department of Vietnam Customs attributed the surge to an impressive rise of
as high as 396 percent in the export of tuna fillet in the context of
dropping shipment of other tuna products.
Statistics from the
Netherland-based International Trade Centre showed that over the past five
years, the European country recorded an increase of 143 percent in tuna
imports, becoming the world’s 11 th biggest importer of this product.
Vietnam’s
business environment introduced in New Zealand
Cooperation
opportunities in trade and investment in
At the event,
Vietnamese Ambassador to New Zealand Nguyen Hong Cuong briefed participants
on
Meanwhile,
Commercial Counsellor at the Vietnamese Embassy Nguyen Kim Phuong made a
detailed introduction about
Participants were
provided with documents on a list of projects calling for investment by 2020,
and fairs and exhibitions held in
During the seminar,
Hai Phong
enhances trade, investment with Norwegian businesses
A delegation from
the northern port city of
The delegation, led
by head of the Hai Phong Economic Zone Management Board Pham Thuyen, had
working sessions with the Enterprise Federation of Norway (VIRKE) and the
Oslo Chamber of Commerce.
During the
meetings, Hai Phong officials introduced in details the city’s trade and
investment environment as well as projects that it is calling for investment.
They expressed their hope that the Norwegian business organisations will
encourage Norwegian enterprises to set up their trade and investment ties
with the northern port city and
Representatives
from the VIRKE and the Oslo Chamber of Commerce said that they believe new
business opportunities will be opened up in the time ahead, especially when a
free trade agreement between
The chamber’s
officials also pledged to coordinate with the Hai Phong side in introducing
the Vietnamese northern city to Norwegian investors via business seminars and
other channels.
Meanwhile, VIRKE
Director Thomas Angell shared his view on key points that Hai Phong needs to
pay attention to when approaching the Norwegian market.
The Hai Phong
delegation also visited the Vietnamese Embassy and met representatives of the
Vietnamese community in
Over 2.37
trillion VND for developing high-tech agriculture
Five commercial
banks will provide more than 2.37 trillion VND (111.22 million USD) in loans
for five agricultural producers to expand their activities in the time ahead,
especially the application of advanced technologies in agricultural production.
To this effect,
loan contracts were signed in
Under the
programme, the maximum interest rate for short-term loans is 7 percent a
year, while those for medium-and long-term loans are 10 percent and 10.5
percent, respectively.
Among the
beneficiaries, Hung Ca Co., Ltd, one of the tra fish exporters in the Mekong
Delta, will receive the largest bank loan of 1.407 trillion VND (66.03
million USD). It is followed by Agrimex Nghe An Joint Stock Company, with
494.49 billion VND (23.2 million USD) and Can Tho city’s Trung An rice
producer, with 284 billion VND (13.32 million USD).
Truong Hoang Trade
and Service Co., Ltd in the Central Highland province of Lam Dong will be
provided with 80 billion VND (3.75 million USD), and Cuong Tan rice producer
based in northern Nam Dinh province, 75 billion VND (3.51 million USD).
In addition, the
Bac A Commercial Joint Stock Bank will sign a contract to serve as an
investment consultant for the Nghe An-based TH Milk Joint Stock Company.
On June 29, the
programme’s first four enterprises, all based in southern An Giang province, reached
loans totaling 350 billion VND (16.42 million USD).-
Yaroslav –
bright spot in Vietnam-Russia cooperation
The central Russian
city of
The bond was
started with a visit to
In July 1999, a
delegation of Da Nang People’s Council visited Yaroslav, during which the two
cities signed a Memorandum of Understanding (MoU) lining out directions for
their cooperation.
In the following
years, the two sides exchanged many delegations at different levels.
In particular,
several important bilateral economic agreements were signed during a visit in
2002 by the then Vice Chairman of the Da Nang People’s Council Hoang Tuan
Anh, who is now Minister of Culture, Sports and Tourism.
Russian agencies
saw the ties between
Southern
province aims at 10 percent GRDP growth
The southern
The committee has
ordered relevant agencies to restructure investment, focusing on reducing the
public sector’s participation in projects.
They have also been
asked to promptly deal with bad debt of credit institutions, practice thrift
when using the State budget, and work harder to streamline administrative
procedures and improve the local business climate.
Statistics show
that Dong Nai’s GRDP topped 24 trillion VND (1.14 billion USD) in the first
half of 2014, reaching 42.1 percent of its yearly target and rising by 10.8
percent from a year earlier.
Of that sum, 15
trillion VND (714.28 million USD) came from the industry – construction
sector.
Director of the
provincial Department of Planning and Investment Bo Ngoc Thu attributed this
to the stable operation of foreign invested enterprises and a number of new
firms becoming operational.
Over the period,
Dong Nai collected more than 16.2 trillion VND (771.4 million USD) for the
State budget, up 16 percent from a year before, the official added.
The province is one
of the biggest destinations for foreign investors in the south.-
Exchange
rate adjustment aims to boost exports
The State Bank of
Vietnam (SBV) has recently adjusted the VND/USD exchange rate up by one
percent. The adjustment has received a positive response and boosted
confidence, the Vietnam Economic News reported.
The average
interbank exchange rate was adjusted to increase from 21,036 VND to 21,246
VND per USD. Together with exchange rate adjustment, ceiling and floor levels
reach 21,458 VND and 21,034 VND per USD, respectively.
SBV decided to
adjust exchange rate after carefully considering macroeconomic factors.
According to SBV’s Monetary Policy Department Director Nguyen Thi Hong, since
the beginning of this year, macroeconomics, monetary market and banking
activities have made positive developments.
Inflation has been
curbed at a low level, while the consumer price index (CPI) just increased by
0.2 percent in May compared to April or an increase of 1.08 percent compared
to December 2013. In particular, foreign exchange market has been guaranteed.
“In the context of
controlled CPI at a low level in the first five months of this year and
stable exchange rate for nearly a year, exchange rate adjustment will
contribute to promoting exports and supporting economic growth,” Hong was
quoted as saying.
In addition to
macroeconomic factors, the stable situation in the monetary and foreign
exchange market has made an adjustment. According to SBV, in the first five
months of this year, trade surplus totaled 1.6 billion USD and overall
balance of payment surplus reached more than 10 billion USD. In particular,
foreign exchange reserves reached a record of 35 billion USD.
Central Institute
for Economic Management (CIEM) Deputy Director, Dr. Vo Tri Thanh said that
the transparency of information on the overall balance of payments and
foreign exchange reserves had helped create a trust for the market,
contributing to reinforcing the value of the VND.
He also added that
signs of stress on the foreign exchange market were often expressed by the
difference between the exchange rate on the free market and banks. However,
by tracking actual transactions after exchange rate adjustment, there were no
signs of stress on the foreign exchange market.
SBV will implement
measures and tools to stabilise the exchange rate and the foreign exchange
market. While inflation is controlled at a low level, decision on exchange
rate adjustment will contribute to promoting exports and supporting economic
growth in the second half of this year.
SBV Governor Nguyen
Van Binh said that exchange rate adjustment would not exceed two percent.
Many suggestions showed that the exchange rate would continue to be adjusted
in the remaining months of this year. However, Vo Tri Thanh said that if
exports face to difficulties, SBV will continue to adjust the exchange rate
and the possibility of exchange rate adjustment to two percent will reach
about 40 percent.
SBV will continue
to flexibly operate monetary policy and closely coordinate with fiscal policy
to control inflation, stabilise macroeconomics and support economic growth at
a reasonable level, contributing to ensuring safety for credit institutions.
Nguyen Thi Hong said that SBV will adopt appropriate measures, policies and
tools to achieve set goals.-
VPBank get
nods to acquire Vinacomin finance firm
The State Bank of
VPBank will have
responsibility to take over all assets, rights and obligations of the finance
firm.
Within 15 working
days since the decision took effect on June 30, VPBank will have to complete
procedures to change all licences of the finance firm under current laws and
regulations.
With total
registered capital of 1 trillion VND, CMF will be renamed as VPBank Finance
Company Limited after being acquired by the unlisted lender.
Early last month,
the Government gave ‘in principle’ approval to Vietnam National Coal and
Mineral Industries Holding Corporation Limited (Vinacomin) to sell all its
chartered capital at CMF to VPBank.
Viet Capital
Securities Company (VCSC) in a recent daily report said this move is part of
the bank’s plan to become a leading retail bank in
VPBank also is
seeking foreign strategic partners, with a maximum expected share sale of 30
percent of its registered capital. Last year Singapore-based Oversea-Chinese
Banking Corporation (OCBC) sold their stake in VPBank, VCSC said.
The restructuring
process of the nation's financial system is considered one of three pillars
of the economic reform unveiled in late 2012. The two other pillars are
public investment and state-owned enterprises.-
Lam Dong
records high economic growth
The Central
Highland
Of the total,
agro-forestry-fisheries sector contributed 4.6 trillion VND (216.529 million
USD), up 10 percent, while industry-construction sector made up 5.3 trillion
VND (250.651 million VND), a rise of 26.8 percent, and service 7.11 trillion
VND (334.452 million USD), an increase of 17.3 percent.
In the six months,
the province welcomed about 2.3 million visitors, including more than 130,000
foreign arrivals, up 9 percent year-on-year. It also earned 248 million USD
from export, a surge of 67.4 percent, while importing an amount of goods
worth 24.2 million USD.
At the same time,
it paid 2.37 trillion VND to the state budget and 5.45 trillion VND to the
provincial coffer.
In the January-June
period, the province attracted 12 new projects totalling 285 billion USD,
including three foreign-invested ones with a combined capital of 13.85
million USD.
Thanks to the
application of high technology, its agricultural outputs stayed high,
especially the production of vegetable and flower. Currently, the province
has 35,000 hectares of high technology farming areas and 9,000 dairy cows.
According to the
Lam Dong People’s Committee, the province will work harder to support local
business, expand markets and promote trade and tourism in order to fulfil its
yearly socio-economic goals with 14 percent GRDP growth for the whole year
and a total state budget collection of 6 trillion VND.-
Coal
exploitation in Vietnam
Vietnamese Deputy
Minister of Industry and Trade Cao Quoc Hung made the statement at the fifth
APEC Ministers Responsible for Mining (MRM) Meeting, which opened in
In line with the
2013 Bali Declaration,
An APEC member,
At the meeting,
representatives from 20 APEC member states said exploiting mineral resources
helps maintain regional development and prosperity.
They said the
development, trading and use of minerals and ores plays an important role in
boosting socio-economic development, generating jobs, reducing poverty, improving
infrastructure, and narrowing the development gap in the region.
Romania
promotes investment opportunity in Vietnam
The Chamber of
Commerce, Industry and Agriculture of Galati city, East Romania, and the
Vietnamese embassy in
Ambassador Tran
Xuan Thuy briefed participants on
Trade counsellor Le
Ngoc Thi introduced participants to economic and trade ties between
A representative of
the Vietnamese business association on
Romanian officials
and businesses expressed their admiration for
D. Otrocol, a
Government representative in
Financial experts
of
Addressing the
seminar, Vietnamese Minister of Finance Dinh Tien Dung shed light on
difficulties and advantages in state budget collection and management in
He shared
experience in finance and budget management, saying management agencies
should make accurate estimates based on good forecasts.
Dung also suggested
that the Lao ministry implement feasible measures to ease difficulties for
enterprises – a great source of budget collection.
The Vietnamese
Minister expressed his pleasure at the fruitful cooperation between the two
finance ministries, and said
Vietnamese
financial experts introduced ways to deal with debts in capital construction,
boost management decentralisation, and prevent tax evasion.
Savannakhet-Lao
Bao railway construction due in December
The first phase of
a 220km high-speed railway project, connecting
The information was
released at a press conference by the Laos Ministry of Planning and
Investment on June 27.
The US$5 billion
project, financed by a Malaysian company, Giant Consolidated Ltd, will
provide a non-stop connection to
Once completed, the
railway line will help
Presidential
assistant Francis Pangilinan noted the decision was made following a working
session on June 26 between Philippine President Benigno Aquino and cabinet
officials, discussing increasing prices of essential commodities, including
rice.
The Philippine
Government reportedly plans to import a cumulative 800,000 tonnes of rice to
add to the national stockpile.
Exchange
rate adjustment should be more flexible
While saying the
dong-US dollar exchange rate should not be floated during the next two years,
experts suggested that the rate should become more flexible, within allowed
limits.
In a report
concerning the 2014 macro economy, released this week, members of the
National Assembly's Economics Committee said the central bank should avoid
raising the forex rate unexpectedly and then keeping it unchanged for a long
period, as is currently being done. Instead, it said, the central bank should
adjust the rate up and down in small increments, but more regularly.
The committee
explained that, in fact, though the official dong-dollar rate has been
maintained at VND20.828 for the past year, prior to an increase of 1 per cent
decided by the central bank on June 19, the forex market saw strong movement
this year due to the psychology among investors of waiting for the expected
adjustment.
Further, there is a
controversial requirement to devalue the dong to support exports amidst a
decreasing inflation trend, and the committee said that the devaluation of
the dong against the US dollar would not contribute significantly to
improving
However, the report
says, if keeping the dong overvalued will cause difficulties in developing
the country's supporting industries, then the dong overvaluing policy
encourages imports, rather than domestic production. Also, this policy will
not motivate foreign direct investment firms to increase their technological
content and domestic value-added assistance.
The report also
recommends that the exchange rate policy should be based upon a basket of
various strong currencies, instead of only the US dollar.
Viet Nam currently
anchors its exchange rate only to the US dollar, while the country's exports
and borrowing do not only depend upon the US currency, the report says,
reporting statistics that bilateral trade between Viet Nam and the US was 11
per cent last year, while the figures with China, Japan and the EU were 19
per cent, 9.5 per cent and 12.8 per cent, respectively.
Besides the US
dollar, most of
The large
dependence on the US dollar, while trade and loans depend upon other
currencies, causes negative impacts on trade and investment ties between
The policy to base
its exchange rate on many currencies will help
In the report, the
committee has also suggested that in the mid-term of 2016-18, when the
country's macro economy and financial markets are much improved, a policy to
float the forex rate with State management will be a suitable option.
However, before
that, the country must improve the restructuring of the economy and the
financial and banking sector to successfully build a healthy financial
market.
Capital control
should be considered a temporary measure in the restructuring period, before
the opening of financial markets occurs in 2018, according to the report.
Big C gives
suppliers access to new trade
Many small and
medium-sized enterprises have received support from the Centre for Support
and Development of Small and Medium sized Enterprises, which was set up by
French supermarket chain Big C to help local producers bring their products
into the modern trade channel.
Nguyen Phu Tia, a
producer of plum wine in Can Tho, said thanks to the centre's support with
completing paperwork such as the food safety certificate, printing bar codes
on the label, improving product design, and others, his products are now
available in many supermarkets, restaurants, and shops in the city.
Pham Thi Thu Cuc,
director of Rung Hoa Bach Cuc Co, Ltd, which grows organic tomato, said after
working with the centre her products are now sold at many outlets nationwide.
Since being set up
last October the centre has helped 22 local suppliers put their products on
its shelves.
Speaking at a press
conference held to officially launch the centre yesterday, Le Thanh Trung,
its SME coordination and development manager, said the centre would also help
create stable, long-term outlets for local firms, thus helping boost local
production as well as diversify his supermarket's local sourcing.
SMEs face
difficulties in expanding their markets, especially in the modern trade
channel, because of a lack of understanding of legal procedures, market
information, and capital, and unstable product quality and supply, he said.
The centre would
help businesses complete legal procedures, improve their production capacity
and management, and control product quality to ensure their products meet the
requirements of modern retailers, he said.
It would also help
them develop new products, he said.
By organising
seminars in many provinces and cities like Hue, Nghe An, Nam Dinh, Viet Tri,
and Quy Nhon since 2009 to bring together producers and distributors, Big C
has signed deals worth more than VND100 billion (US$4.68 million) with over
110 small and medium-sized producers.
The supermarket has
28 outlets in the country while 90 per cent of its suppliers are local SMEs.
French
programme nurtures entrepreneurs
Looking at the
thriving business Juice "n" joy, a small beverage shop in
Earlier he had
another small shop at the same spot selling mobile phones, but, despite his
best efforts, the business was struggling and made very little profit though
he did not even have to pay rent since he owned the building.
He said,
"After two years I decided to close the shop."
He switched to
selling beverages.
But his fortune did
not seem to change until one day when he got an invitation from local
authorities to attend a free training programme for small entrepreneurs like
him.
"Micro Small
Entrepreneurs Support Programme" began in 2013 with the main aim of
building capacity for micro small entrepreneurs through basic management
training to make them able to grow their business.
Organised by
"The objective
of the programme is to help micro small entrepreneurs have better piloting
skills in their business, consequently moving them from a logic of survival
to sustainable and income-generating growth," Thai Huu Tuan, vice
principal of Ton Duc Thang, said.
This would
gradually help eliminate poverty, the living conditions of each family would
improve, and society would become wealthier, he said.
The trainees are
taught by people who have graduated in business administration and have at
least two years of experience.
After more than a
year of running the programme on a trial basis until the end of May,
organisers held a formal inaugural ceremony in
They said the
expenditure during the trial period amounted to around US$85,000.
The programme
targets micro small entrepreneurs like those selling sugarcane juice, soup,
and coffee and washing vehicles and hairdressers.
"They teach us
how to manage, calculate the investment, how to identify suitable strategies,
and how to compete with rivals so that we can improve our business,"
Khiem said.
The teaching
includes theory and practical training, he said.
He told Viet Nam
News that he is now so confident that he plans to open more shops soon.
Because of that,
despite being very busy, he spends several hours a week attending all the
classes.
Nguyen Thi Cuc, a
soup seller in District 6, said she was taught useful business theory.
"In just three
days I found that the programme was very effective. So I introduced it to
many friends."
According to the
organisers, the programme has so far seen nine courses, which were attended
by 110 micro entrepreneurs.
Thuy Blais, the
programme project manager, said they made a painfully slow start. After going
from house to house to persuade people to attend, they got all of three
people to attend the first session.
But it has now
become very popular and there are plans to take the programme to Districts 8,
Binh Tan, and Tan Phu.
Blais told Viet Nam
News that the organisers are looking for more sponsors to expand the
programme.
Vinashin
successor sees restructuring stuck
Shipbuilding
Industry Corporation (SBIC), the successor of the debt-laden Vinashin, is
facing a great challenge for implementing its restructuring scheme as its
affiliates have found it hard to find investors.
SBIC has sent 73
sets of corporate files to the State Capital Investment Corporation (SCIC)
hoping that SCIC would take over some of the companies, thus reducing the
debt burden on the shipbuilder.
However, SCIC has
not taken over any firms so far, citing that it does not have enough
conditions.
SCIC is interested
in only one firm, Ship Industry Investment & Export-Import Company, but
the financial investment firm is still not satisfied with the documents
related to its land, investment projects and obligations.
Given the hefty
hardship, SBIC has set up plans to dissolve 50 member units in the coming
time after SBIC has disbanded 12 units.
The enterprise is
making bankruptcy procedures for 11 enterprises who have fulfilled chartered
capital contributions and 10 others who have yet to get the job done.
Among 105
enterprises belonging to the now-defunct Vinashin that have to withdraw their
capital contributions made through the use of brand equities as required by
the Government, only 45 companies have finished the requirement.
For the remaining
firms, 39 will have their licenses revoked, be dissolved or enter court
receivership.
SBIC has set up a
steering committee to carry out the equitization scheme of the parent firm.
The central bank
has considered many solutions to reschedule loans while the General
Department of Taxation has been told to review debt of SBIC’s affiliates.
The moves suggest
that SBIC is still facing many difficulties in its restructuring.
Vinashin during its
heyday set up an affiliate each day. All the enterprises are now mired in
hardship.
Earlier, some
officials had promised at the National Assembly that Vinashin would be
profitable in 2013 or 2014. However, this has not come true although SBIC has
got a lot of land and credit incentives.
Speaking at a forum
to promote linkages among African and ASEAN banks in the IOF in HCMC on June
25, Ninh said
Trade ties between
ASEAN and African countries in the IOF have grown significantly over the
years, with trade between
However, the
figures are still modest in comparison with respective potentials, requiring
more efforts from the banking and business circles.
The Vietnamese
Government will create favorable conditions for further cooperation with
African countries in general and IOF member states in particular, open the
door to businesses and encourage cooperation among banks, Ninh said.
He also expected
the forum would open up a new chapter of commercial and investment links
among banks and businesses.
Vu Tien Loc,
chairman of the Vietnam Chamber of Commerce and Industry (VCCI), said
So, there remain
hindrances when it comes to doing business with African companies as making
payments through international banks is subject to high fees.
Moreover, high
transport costs, a lack of information and limited efforts from trade
promotion agencies have affected cooperation between the two sides.
To fix the
problems, Loc suggested that a cooperative framework between Vietnam and
African countries should be completed soon while the inter-governmental
committee needs to expand its operations in Africa.
Sylvere Bankimbaga,
vice president of the Club of Banks and Credit Institutions in Africa, said
an initiative to promote South-South trade cooperation was launched three
years ago and the recent permission granted to Vietnam’s telecom company
Viettel to provide mobile services in Burundi was an example of the club’s
effort to promote cooperation between the two sides.
French
agency helps with raising farm produce value
The French
Development Agency (AFD) has supported Vietnam to register geographical
indications for three agricultural products including Shan Tuyet tea, Tam
Xoan rice and Van Yen cinnamon so as to raise their export value in Asian
markets.
At a ceremony to
launch the project on enhancing rural development through development of
geographical indications held on June 25 in Hanoi, Ta Quang Minh, head of the
National Office of Intellectual Property of Vietnam, said the three products
chosen for the project will serve as models for other agricultural products
of Vietnam.
The project,
implemented by the United Nations Food and Agriculture Organization (FAO) and
AFD, will be carried out over three years in four Southeast Asian countries
including Laos, Cambodia, Thailand and Vietnam with total funding of more
than US$2 million from the French government.
It is aimed at
enhancing the protection and promotion of geographical indications (GI) for
agricultural products in these countries and raising awareness of GI in the
region.
Michel Drobniak,
economic and commercial counselor of the French Embassy in Vietnam, said the
core purpose of the project is to raise income of farming households, help
Vietnamese agricultural products easily enter overseas markets and increase
consumer awareness of GI.
He said the project
will create advantages for information exchange and connectivity between
State authorities and private enterprises to boost the protection and
promotion of Vietnam’s agricultural products on regional and global markets.
Vinatex
enjoys special mechanism in valuation
The Government
Office has issued a document giving Vietnam National Textile and Garment
Group, or Vinatex, a special mechanism in corporate valuation, marking a
significant change in the nation’s State-owned enterprise (SOE) equitization
process.
With the decision
in place, the country’s largest producer and exporter of garment and textile
products will not take into account extra profits from relocation of Garment
Company 8-3. Vinatex will maintain the book value instead of having to
reevaluate its subsidiary Dong Xuan Knitting Company.
Notably, the
group’s over VND1.3 trillion in irrecoverable debt will be eliminated from
its corporate value. Investment in non-business units will be not calculated
in the value.
Vinatex is set to
launch its initial public offering (IPO) for the parent company via auction
on July 22. With chartered capital of VND5 trillion, the group after going
public will be 51% owned by the State while 24% will be offered to strategic
investors, 24.4% put up for public tenders and 0.6% sold to employees.
Vinatex has also
asked for a special mechanism in selecting strategic investors. It will
choose three organizations – one financial investor and two in production and
distribution.
Vinatex expects its
revenues and profits to double when becoming a shareholder-owned company.
According to its prospectus, Vinatex expects to fetch over VND3.9 trillion in
revenues and VND355.7 billion in after-tax profits this year. The respective
figures for 2015 would be VND6.4 trillion and VND506.6 billion.
Commenting on
Vinatex shares, Saigon Securities Inc. (SSI) in a report said that Vietnam’s
textile and garment industry in general and Vinatex in particular will
continue to benefit from expanding export markets.
Growth
opportunities will abound when Vietnam joins free trade agreements (FTAs) and
multilateral trade deals, particularly the European Union-Vietnam FTA and the
Trans-Pacific Partnership (TPP) pact.
The group holds
large export market share coupled with a rising local market share. Vinatex
has an extensive domestic distribution network with 82 Vinatexmart
supermarkets in 26 provinces and more than 4,000 retail outlets.
Moreover, Vinatex
is one of the few SOEs with limited exposure to non-core investments.
Furthermore, it has already divested VND916 billion from VND1,083 billion in
its non-core business operations, SSI said.
However, SSI
pointed out some downsides such as the group’s unattractive profitability as
most of Vinatex’s sources of revenues come from outsourcing business with a
paper-thin margin.
Moreover, Vinatex
is highly dependent on material imports, which adversely affects its
profitability due to volatility in global prices of cotton and the
fluctuating foreign exchange rate.
Between 2014 and
2017, Vinatex expects to invest VND11.5 trillion in expanding production and
developing domestic material sources to reduce dependence on imports. This is
a chance for large investors to become contractors and partners of Vinatex.
Viet Dragon
Securities Company said in a recent report said that Vinatex could take out
loans from the Asian Development Bank (ADB) to fund its investments at very
low rates.
However, SSI said
Vinatex investments in cotton planting, spinning, weaving and dyeing will
require a long pay-back period and in-depth expertise, and that it might face
stiff competition from existing foreign direct investment (FDI) producers.
Source: VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
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Thứ Năm, 3 tháng 7, 2014
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