|
BUSINESS
IN BRIEF 5/7
ANZ Vietnam Bank
and Roy Morgan Research will launch the Vietnam Consumer Confidence Index
(Vietnam CCI), a key indicator reflecting the health of an economy, this
month.
The CCI for June
will come out next week.
Vietnam CCI is
designed to show the degree of optimism which consumers express through their
savings and spending.
A rise in consumer
confidence indicates better economic growth while a fall of the index shows
consumers tighten their spending.
There are other
major economic indicators such as the Purchasing Managers Index (PMI) which
reflects the health of the manufacturing sector; the Producer Price Index
(PPI) which indicates domestic producers’ input prices; the yield curve which
is a line that plots interest rates, at a set point in time, of bonds having
equal credit quality but differing maturity dates; and the Employment Cost
Index (ECI) which measures fluctuations of wages for each working hour in
quarters.
Roy Morgan
Research’s Asia-Pacific regional director Debnath Guharoy said this index is
available in
Present tensions in
the
This is the view of
Vo Tri Thanh, Deputy Director of
He said that
Therefore, the
present situation has created opportunities for
To end any
dependence on
Thanh said
Economic expert
Pham Chi Lan said
Export value from
At the same time,
the value of imports from
Lan recalled
She said the change
is due to high imports of equipment and material for production into
Economic expert Le
Dang Doanh said integration with the rest of the world has been an advantage
for
Doanh said
Foreign
textile firms line up for TPP bonanza in Vietnam
Foreign investment
in the textile and garment sector is increasing rapidly as international
firms seek to take advantage of the benefits Vietnam's will potentially
derive when the Trans-Pacific Partnership (TPP) Agreement comes into being.
Several companies
from mainland
The textile and
garment industry in the TPP member countries is expected to benefit the most
from the trade deal.
For instance,
products made from domestically sourced materials or imported from other TPP
member countries will enjoy zero tariff when exported to signatory countries.
Le Tien Truong,
vice chairman of the Vietnam Textile and Apparel Association, said up to 60%
of the country's textile and garment exports go to member countries.
Analysts estimate
that once
In that scenario,
exports to the
It is with an eye
on such opportunities that foreign firms are scrambling to invest in the
Vietnamese textile and garment industry.
In June the RoK’s
Dong-IL Corporation began building a US$52 million yarn factory in
In
In March city
authorities issued a licence to
Also in March Hong
Kong-based Esqual Group opened a US$25 million garment plant in the
Not long ago the
Besides the new
investments, many existing foreign garment firms have increased their
investments to expand their activities.
Dang Phuong Dung,
deputy secretary of the Vietnam Textile and Apparel Association, said the
chronic bottlenecks in the weaving and dyeing sectors in terms of intensive
investment, experience, technology, and workforce have been addressed.
According to
analysts, the fact that more and more foreign firms are investing in the
textile and garment industry will encourage
Becoming a TPP
member will offer not only the textile and garment industry more
opportunities to develop but also its support industries and even the economy
as a whole, they said, pointing also to other obvious benefits like
employment generation.
Vietnamese
goods hold sway in local markets
Several Vietnamese
goods have gained a firm foothold in the domestic market with 70% of Vietnamese
consumers putting their trust in local goods.
Le Viet Nga, Deputy
Head of the Ministry of Industry and Trade's Domestic Market Department, made
this observation at a conference to review five years of the "Vietnamese
people use Vietnamese goods" campaign, held in
Statistics from the
ministry showed that 80% of Vietnamese people were keen on garments, textile
and shoes while 58% were keen on food items and fruit.
In several
supermarkets run by domestic enterprises, locally made products accounted for
80% to 90% of the total. More than 90% of goods at over 9,000 price
stabilisation shops were domestic products.
"These results
have helped domestic goods increase competitiveness over foreign items and
changed consumers' thoughts and habits," she said.
A recent survey of
the ministry also revealed that the localisation rate of input products and
materials as well as equipment rose 25% since the campaign was launched.
Businesses have
taken advantage of the Government's mechanism and policies to build strong
distribution networks, she said.
For example, the
Vietnam Garment and Textile Group (Vinatex) has established 4,125 shops in
remote and mountainous areas. The Vietnam Paper Corporation has also been
active in expanding selling points in rural and mountainous areas.
Nga said in rural
areas, people were keen on locally produced goods.
The ministry has
also approved 618 plans, with total investment of VND375.7 billion (US$17.8
million) for commercial promotion and market expansion activities for five
years of the campaign's implementation.
Of these, 356 plans
focused on the domestic market, remote and border areas with funds of
VND167.7 billion. The plans were mainly organised to bring Vietnamese goods
to these areas.
Over the past five
years, the provincial Industry and Trade Department has held around 2,000
sale campaigns in the rural regions with participation from 53,000 businesses
with 48,000 booths. More than three million locals visited the booths with a
turnover of VND34.4 trillion.
Deputy Minister Ho
Thi Kim Thoa hailed the achievements of the five-year campaign, saying that
it has made a positive impact.
Thoa said the local
people's awareness of Vietnamese goods has changed sharply and people have
begun to pay more attention to local items.
The wholesale
turnover growth rate in the past five years was in double digits, she added.
However, she said
the campaign has also revealed shortcomings in building and developing the
distribution networks, adding that several enterprises have not built a basic
strategy for building a brand name.
In addition, some
businesses lacked the experience and selling skills to promote the sale of
Vietnamese goods, she added.
She noted that the
ministry would pay more attention to increasing people's awareness for using
Vietnamese goods.
Vietnam –
Laos expo opens in Vientiane
The 2014 Vietnam –
Laos Trade Fair kicked off in Vientiane, Laos, on July 3 with the aim of
helping Vietnamese businesses expand the distribution network here, paving
the way for their goods to Thailand’s northeastern region.
Among those
attending the opening were Vietnamese Deputy Minister of Industry and Trade
Nguyen Cam Tu and his Lao counterpart Siaosavath Savengseuksa.
During the five-day
event, some 100 Vietnamese enterprises show their products at 120 out of the
total 200 booths.
This year’s fair is
said to be larger than previous events and gather a wider range of goods,
from agro-forestry-fishery products, garments and electrical and electronic
appliances to industrial machinery, medical equipment, and tourism services.
It is expected to
bridge Vietnamese and Lao business insiders so that they can share
experience, transfer technology and form closer partnerships.
In 2013, trade
turnover between both countries hit a record high of US$1 billion.
The figure reached
US$766 million in the first half of 2014, up 51% from a year earlier.
VN economy
looks to run on faster, sustainable track
The Vietnamese
government is working on an economic development plan, targeting a faster and
more sustainable economy between 2016 and 2020, Deputy Prime Minister Vu Duc
Dam told 400 business executives at the first Forbes
It will be done in
tandem with addressing social and environmental concerns and bringing out
sweeping overhaul in education and health care, he said.
The ambitious plan
also requires the development of the farming sector and rural areas to ensure
that all walks of life across the nation enjoy its fruits.
Challenges,
however, are still ahead in the next 20 years, he acknowledged.
“
According to his
announcement, the Vietnamese government will strive to reduce tax filing
duration from 870 hours to 170 hours per year between now and 2015, as part
of efforts to improve the business climate.
Rich Karlgaard,
Forbes’s publisher, in his speech, underscored the importance of creativity
that will help businesses beat their rivals.
Attendees showed
their interests in how to foster economic growth, rise to the top, and access
capital for business expansion and innovation investment.
Standard
Chartered
Standard Chartered
Bank (
This is the second
consecutive year Standard Chartered Vietnam has won the award.
Maxime De
Guillebon, Head of Transaction Banking, Standard Chartered Bank (
The Asset Triple A
Awards are industry excellence awards given out every year to institutions
that have outshone the competition in providing best-in-class treasury, risk
management and working capital solutions to their customers.
EBA cites
Vietnamese company among world’s best run
The Europe Business
Assembly (EBA) on July 2 honoured Civil Engineering Construction Corporation
No. 4 (CIENCO4) as among one of the ‘Best Enterprises’ at an awards ceremony
in
This year a total
of 46 enterprises from around the globe operating in a disparate variety of
fields including culture, society, health care, trade, construction, oil, and
education received EBA prizes.
CIENCO 4 was
selected for meeting EBA criteria of professional skill, quality management,
technology, and construction time.
At the ceremony,
John Netting, CEO of the Europe Business Assembly, noted that the event not
only honoured business achievements but also provided an opportunity for
entrepreneurs and business leaders from Europe, Asia, Africa and the
CIENCO 4 General
Director Le Ngoc Hoa said that the award is a great honour in recognition of
the hard and dedicated efforts of all the staff and employees of the company.
This is the first
time CIENCO 4 has received such honour.
Private
sector encouraged in agricultural value chain
The private sector
is encouraged to cooperate with governmental and non-governmental agencies
throughout the nation to assist the poor generate more income and improve
their livelihood.
The Swiss Agency
for Development and Cooperation (SDC) is improving cooperative relations with
the private sector to bring about sustainable benefits for the impoverished
in the rural communities in
SDC country
director Samuel Waelty made the remark at a July 3 seminar in
Samuel said the
rural market retains many risks due to high transaction costs and a shortage
of sustainable market connectivity, thus mobilising sources from the private
sector for sustainable development of the poor is still a big challenge.
Sharing
international and Vietnamese experience will help find the best solution for
cooperation models with the private sector to raise steady income for the
poor in rural areas and the sustainable development of the private sector
itself, he stated.
Javier Ayala, the
Executive Manager of the Vietnam Business Challenge Fund (VBCF), said doing
business with low income earners is an effective way to promote economic
development and poverty reduction as 70% of the world’s food is produced by
farmers.
Samuel said MARP
was launched in July 2013 at a total investment of US$5.2 million to support
projects and organisations, mainly in
He added that MARP
has been implemented in 8 provinces in
Robins
Department Store comes to Ho Chi Minh City
After the first
launch in
This second Robins
Department Store in
The store designed
by the Dubai-based Zebra Group, will bring a new shopping experience to all
valued customers.
It plans to offer
thousands of quality products carefully selected from leading local and
international brands along with marketing programs that focus on interests
and lifestyles of local consumers.
Customers can also
enjoy benefits from The1Card,
Tuna
exports to
Therefore, the
The General
Department of Vietnam Customs attributed the surge to an impressive rise of
as high as 396% 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% in tuna imports,
becoming the world’s 11th biggest importer of this product.
Inspiring
confidence for businesses
To achieve
sustainable economic development, it is essential to have effective policies
and procedures in place to facilitate businesses overcoming barriers and
streamline administrative procedures that hamper them.
The Vietnam Chamber
of Commerce and Industry (VCCI)’s recent survey shows business confidence has
increased thanks to the State’s commitment to make the business environment
more business friendly.
The
In the past six
months, the number of newly-established businesses dropped nearly 40%, but
registered capital still managed to rise a hefty 20% from last year’s same
period.
Roughly
three-fourths of 7,000 businesses surveyed by the General Statistics Office
(GSO) reported their profits in the six month period were higher than that
recorded a year earlier.
The GSO report is
solid evidence that the national economy is in a period of dramatic recovery,
resulting in a larger scale of business operation with higher profits.
The good economic
news is consistent with earlier predictions made by leading economic experts
at the end of last year after the Government undertook a series of
macro-solutions to contain inflation, reduce banks’ lending interest rates,
and stabilize the price of domestic gold and the forex market.
Foreign investors
from Europe,
In its 15th
Business Climate Index (BCI) survey, the European Chamber of Commerce in
Vietnam (Eurocham) recently revealed that Vietnam’s BCI is back to its 2011
levels-having gone from last quarter’s 59 to 66, which demonstrates the
European business community’s commitment to the Vietnamese market.
Foreign-invested
enterprises have also enjoyed an export surplus which has contributed greatly
to elevate the country’s trade surplus to US$1.3 billion in the first half of
this year.
The private
economic sector’s technology upgrade and market expansion efforts greatly
help it perform well in the reviewed period. The sector is making thorough
preparations to compete against rivals in both the local and global markets.
This is
particularly pertinent given the backdrop that the ASEAN community is poised
to be established and trade liberalization widened following the ASEAN-China
Free Trade Agreement, scheduled to take effect as from January 1, 2016.
Leading economic
experts are avidly advocating the need for increased self-reliance and
independence of the nation’s economy. Focus should be given to developing
trademark, creating linkage, building equal economic relationship in
bilateral and multi-lateral negotiations.
Secondary
steel importers in trouble
Secondary steel
importers in
Under the Joint
Circular No44/2013/TTLT-BCT-BKHCN issued by the Ministry of Industry and
Trade and the Ministry of Science and Technology that provide the management
of domestically produced and imported steel quality, secondary steel
importers in Viet Nam, have to announce the applying standards for goods in
import contracts for customs clearance instead of only the origin of products
and import contracts as done earlier.
According to Dang
Nguyen Thanh Chau from Ha Long Company, secondary steel includes steel used
‘one-time' or stockpiled steel. However, it has the same quality as
up-to-standard steel.
Most of the
secondary steel is imported from the EU,
Domestic importers
say they cannot meet the new regulations, which have come into force from
June 1, 2014. They say that since secondary steel is mainly imported in small
batches from numerous suppliers, there can be no unified standard for
evaluation.
Tran Thanh Hai,
Director of Dai Kim Hai Co, says that his company has been importing
secondary steel from Japanese companies for many years and there is no evaluation
of import steel.
According to the
MoIT, the circular is aimed at protecting domestic consumers and producers
against quality fraud and tax evasion.
However, secondary
steel importers opine that the regulation should apply only for imported
construction steel that has no origin of product. Since most of the secondary
steel has the origin of product from developed countries, there can be no
fraud in terms of quality, they claimed.
Year's
target rests on H2 credit growth
Credit growth in
the first half of the year was only 2.3 per cent, however, banks still expect
the credit will gradually improve in the second half of the year to achieve
the annual target of 12-14 per cent.
The targets are to
be met due to many preferential credit packages introduced in the market,
said officials.
Tran Ngoc Tam,
deputy general director of Nam A Commercial Joint Stock Bank (Nam A Bank),
told Dau tu chung khoan (Securities Investment) newspaper that though credit
in recent months has improved, it remains less available.
Since the beginning
of this year, lending at Nam A Bank reached about VND2 trillion (US$93.89
million), while the bank anticipates lending to reach VND5 trillion ($234.74
million) in 2014.
Further, Tam
expects that the bank's credit will double from its current growth by the end
of the year through the programmes that connect businesses to overcome
difficulties together and unfreeze funds.
The bank, last
week, in collaboration with the People's Committee of District 1 in
Compared to the
other banks, Sacombank has higher credit growth, due to the advantages of
diversified and small lending.
Phan Huy Khang,
general director of Sacombank, said the bank's lending now reaches about 7
per cent, against the entire year target of 15 per cent, thanks to the bank's
implementation of 13 preferential lending packages, worth roughly $1.2
billion. Also, bank-business linkage programmes were worth roughly $73.5
million for preferential loans to companies in 18 districts, as well as
export processing zones and industrial parks in HCM City, Khanh Hoa and Dak
Lak, according to Dau tu chung khoan.
At Orient
Commercial Joint Stock Bank (OCB), the credit growth target for this year is
10 per cent, though a bank leader says it will strive to achieve growth of
about 25 per cent, especially in the last months of the year when capital
demands by enterprises increases, and lending improves.
Viet Nam to
ship lychee samples to Japan
Minister of Science
and Technology Nguyen Quan said this on a weekly television programme called
‘People Ask, Ministers Answer' last week.
Luc Ngan lychee is
a well-known special fruit from the
Quan said that with
the help of Japanese partners last year, the ministry has imported a
technology that uses the Cell Alive System method for long-term preservation
of fruit just as if it has been freshly harvested.
Bac Lieu
seafood exports soar in first half
The southern
Frozen shrimp
topped the list with 20,770 tonnes, 41 per cent higher than for the same
period last year.
As many as 30
exporters of the product fulfilled their expected target volume and made
great profits.
Much of the success
is said to be due to provincial agencies who kept firms updated on any
changes in domestic and foreign markets. This helped them make timely
adjustments to their production and business activities.
Crab bank
to conserve the crustacean
A blue swimming
crab bank set up in Phu Quoc has helped fishermen improve their incomes while
also conserving the species, a speciality of the island.
Because of huge
demand for the crabs, fishermen have been catching more and more of them,
causing a decline in their population.
To protect them,
the Department of Agriculture and Rural Development in
The bank, sponsored
by the Wetlands Alliance Programme and having an initial capital of VND30
million (US$1,400), provides loans worth VND3 million to people who catch,
breed, or sell the crabs, and as interest they have to "pay" five
egg-carrying blue swimming crabs every month from their catch.
The bank has also
set up a floating craft with four cages to breed egg-carrying blue swimming
crabs. After the eggs hatch, the babies are released into the sea and the
mother crabs are sold.
Money from the
sales is used to maintain the craft, buy food for the crabs in the cages, and
provide the loans.
Nguyen Ngoc Huong
of Bai Bon hamlet on the island said the loan helped her buy nets and other
tools to catch crabs.
"The payment
in the form of crabs was easy for me compared to normal payment," she
said.
Fishermen who
borrowed have increased their incomes and pay interest in time, bank
statistics reveal.
Bui Ngoc Huan, head
of the Bai Bon Hamlet Fisheries Resources Protection Team, which manages the
craft, said the bank hopes to improve fishermen's awareness of the need to
protect blue swimming crabs.
But the bank's
capital is small and it is difficult to increase lending, he said.
Bai Bon has a
population of 1,600 and 70 per cent of them earn a living from fishing.
Around 60 per cent of the fishermen catch blue swimming crabs.
The department has
called on companies exporting the crab variety to invest in the bank so that
more people can get loans.
Companies investing
in the bank will benefit from having a sustainable source of crabs.
Gas
supplies cut to southern region
Electricity of Viet
Nam (EVN) corporation said that gas supplies for power generation in the
southern region will be reduced this month.
Accordingly,
between July 6 and 19, the group will stop providing all PM3 gas for the Ca
Mau 1 and 2 thermo-electricity plants.
About 4.7 million
cubic metres of gas will be supplied for the plants each day for the rest of
the month.
Despite the cut,
EVN promised to supply enough of electricity for production and daily
activities.
Kinh Do
acquires major stake in PhinDeli
The Kinh Do
Corporation (FDC) has bought a controlling stake in PhinDeli, a Vietnamese
coffee brand owned by Pham Dinh Nguyen. (Nguyen also owns PhinDeli, a town in
the US State of Wyoming.)
The news was
announced at the KDC meeting of shareholders held in Ha Noi yesterday,
reports the news portal baodautu.vn. However, the corporation did not reveal
any information about the buying price.
Nguyen has
experience in fast-moving consumer goods and has worked with KDC.
He bought Buford
town in the
Nguyen plans to
introduce Vietnamese coffee worldwide.
Soft loans
target agriculture growth
The State Bank of
Commercial banks
and customers in Lam Dong, Nam Dinh, Can Tho, Dong Thap and Nghe An will be
the first to benefit, according to State Bank Governor Nguyen Van Binh.
The southern
Businesses in these
places will have to pay interest rates of just seven per cent per year for
short-term loans, 10 per cent for medium-term loans and 10.5 per cent for
long-term loans.
Short-term loans
will be granted for farmers to buy fertilisers, seedlings and poultry and
livestock breeds as well as agricultural equipment. The medium and long-term
loans will support investments in infrastructure and equipment to develop
hi-tech models.
The loans aim to
forge finance connectivity between businesses and farmers for new farming
models such as large-scale rice farms and application of advanced technology.
Many of these
models had shown their effectiveness in several areas, Binh said, citing as
examples the large-scale rice field model in An Giang Province, the hi-tech
vegetable and flower production model in
In May, four
businesses in An Giang received VND350 billion ($16.4 million) through the
programme, which is jointly organised by the State Bank, the Ministry of
Agriculture and Rural Development and the Ministry of Science and Technology.
After the two-year
trial period, the three institutions will work together on policies to apply
the programme on a larger scale.
Enterprises
discuss measures to improve domestic supplies
Vietnamese
manufactures are calling for improving domestic material supplies in an
effort to reduce reliance on imports, especially from
Speaking at the
seminar held by the 2030 Businessmen Club under the Saigon Times Club on June
30, participants agreed that bolstering cooperation for sustainable
development was not a new story. They also noted that it was time for
domestic material producers to boost their production activities.
Do Long, Chairman
and General Director of Binh Tan Consumer Goods Manufacturing Company
(Bita’s), said the company needs up to 360 types of material to produce a
pair of shoes and thus it keeps finding domestic suppliers.
Long said his
company has found around 80 material suppliers.
Le Quoc An, former
Chairman of the Vietnam Textile and Apparel Association, said that Southeast
Asian countries have set up the ASEAN Federation of Textile Industries
(AFTEX), whose goal is to make use of strengths of each country and assisting
each other.
The operating model
of AFTEX is quite effective. Therefore, local enterprises need to be aware of
their strengths in forging links with each other, according to An.
Meanwhile,
according to Nguyen Thanh Nhan, Deputy Director of Saigon Co.op, small and
medium producers fail to win customers' trust as their product quality is
sometimes not as high as claimed. Besides, they are reluctant in cooperating
with one another, he said.
“Many producers
have refused to join us in making products bearing the brand of Saigon Co.op
as they want to open their own distribution channels and build their own
brands, which is a great challenge due to their limited capacities,” Nhan
said at the seminar.
Enterprises that
are members of the 2030 Businessmen Club and speakers agreed on developing
their own material sources, but this needs careful and strategic considerations.
“I expect that
cooperation opportunities will open up after this seminar, with cooperation
deals to be inked in the coming time, to prove that this is not a talk shop,”
said Do Long of Bita’s.
Long An
province attracts Japanese investors
More and more
Japanese companies are exploring and investing in Long An because of its
increasingly attractive investment environment, said the Vietnamese Business
Forum Magazine (VBF).
In recent years,
Long An province has actively approached and learned about Japanese investors
and introduced investment opportunities to them. The province has applied a
lot of innovative mechanisms and policies for investors to tap local
advantages, especially Japanese investors.
Presently, Japan
ranks third in investment capital in Long An (after Taiwan and the Republic
of Korea) with a total registered capital of over 300 million USD.
Japan’s increasing
investment into Vietnam in general and Long An province in particular is a
result of its accelerating reconstruction at the back of earthquake and
tsunami disasters.
Besides, Japanese
investors tend to relocate production facilities from China to Vietnam. In
addition to investment environment, Long An province has a lot of favourable
conditions and advantages to attract and meet specific requirements of
Japanese investors.
The investment
environment in Long An province is increasingly improved, investment
promotion activities are more effective, and infrastructure developers have
appropriate policies to draw investors. The province is attracting more
Japanese investors because Japanese companies currently operating here are
effective and because the province has good investment attraction policies.
Defining Japan as a
strategic partner, Long An is targeting Japanese small and medium businesses
specialised in supporting industries, tourism, service and commercial
infrastructure development.
Soc Trang’s
economic growth highest in 3 years
Soc Trang province,
home to the largest number of Khmer ethnic minority people in the Mekong Delta,
recorded an economic growth rate of 11.9 percent in the first half of 2014,
the highest year-on-year rise in the past three years.
During
January-June, aquatic product yield increased by 24.5 percent, and rice
output is predicted to exceed the set target.
Industrial
production value reached 4.3 trillion VND (202 million USD), equivalent to
51.4 percent of the yearly target and up 20 percent from the same period last
year, while exports brought the locality 314.4 million USD, a year-on-year
surge of 79 percent.
In the period, the
province collected 1.1 trillion VND (51.7 million USD) to the State budget,
up nearly 30 percent year-on-year, while its budget spending totaled at 2.7
trillion VND (126.9 million USD) and investment disbursement for construction
amounted to 970 billion VND (45.6 million USD).
Soc Trang is
striving for an economic growth of 10-11 percent this year. To that end, the
province has directed its authorities to continue speeding up support
packages to develop the fields of agriculture, fisheries, industry, trade and
services, and coordinate with ministries, sectors and other localities to
successfully organise the Soc Trang-Mekong Delta Economic Cooperation Forum
later this year.
Local enterprises
have been urged to boost business and production, and authorities asked to
effectively implement social welfare policies, speed up the National Target
Programme on Sustainable Poverty Reduction, and work out measures to deal
with unemployment and raise income for labourers, especially those in rural
areas.
Vietnamese
construction corporation receives European awards
Vietnam’s Civil
Engineering Construction Corporation No. 4 (CIENCO 4) was among the
recipients of the “Best Enterprises” awards presented by the European
Business Assembly (EBA) at a ceremony in Stresa city, Italy on July 2.
Director Generals
of prize-winning companies were also presented with “Best Manager of the
Year” awards on the occasion, which was held within the framework of the 2014
Summit of Leaders – an independent corporation for the development and
management of economic, social and humanitarian collaboration.
This time, 46
enterprises and individuals operating in social, cultural, healthcare, trade,
construction and educational fields received EBA prizes.
Speaking at the awarding
ceremony, EBA Director General John Netting said that the ceremony not only
aimed to honour outstanding businesses but also offered a chance for business
leaders from Europe, Asia, Africa and Middle East to meet and seek partners.
Bac Lieu’s
aquatic exports soar in six months
The southern
province of Bac Lieu earned more than 209 million USD from its export of
aquatic products in the first half of this year, up 64 percent year-on-year,
and equivalent to over 59 percent of the year’s plan.
Frozen shrimp
topped the list with 20,770 tonnes, 41 percent higher than that in the same
period last year.
As many as 30
exporters of the product fulfilled their expected volume and made great
profits.
Competent agencies
of the province spared no efforts to provide local firms with information on
changes in domestic and foreign markets, which helps them make timely
adjustments of their production and business activities.
Bac Lieu’s
exporters faced difficulties in accessing medium- and long-term loans from
commercial banks, hindering them from promoting an overall business strategy.
Meanwhile, the connection between the firms and producers was rather poor.
In the time ahead,
solutions should be put forth to ease the difficulties as well as stabilise
export activities in the locality.
State bank
toughens stance on capital issues
The State Bank of
Vietnam (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 Ho Chi Minh
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 percent of the
charter capital each and five commercial banks where institutional investors
hold more than 15 percent of the charter capital.
As many as eight
commercial banks have shareholder groups and related parties that own over 20
percent 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.
Economist 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 percent 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 percent 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
Vietnam unveiled in late 2012. If the deep-seated problems in the banking
system cannot be resolved effectively, the progress of the entire economic
reform programme might face long delays.-
Source: VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
|
Thứ Bảy, 5 tháng 7, 2014
Đăng ký:
Đăng Nhận xét (Atom)
Không có nhận xét nào:
Đăng nhận xét