|
BUSINESS
IN BRIEF 8/7
HSBC:
Manufacturing drives H1 GDP growth
HSBC Bank in a data
reactions report said that manufacturing is the key supporting factor for
In the report
released last Friday, the bank explained that
In June, exports
grew 14.9% from the beginning of this year but were lower than the 15.4% in
May, and this reflected temporary disruptions. With activity normalizing and
external demand picking up in the second half, exports should bounce back and
accelerate in the coming months.
The economy has
weathered a slowdown in domestic demand relatively well due to stellar export
performance. In the second quarter, manufacturing output rose 9.1%
year-on-year and from 6.5% in the first quarter.
“We expect the
sector to continue to expand thanks to increased investment, trade
agreements such as
the EU-Vietnam Free Trade Agreement (FTA) which might be concluded in
end-2014, and better external demand. Manufacturing continues to increase its
contribution to growth,” the report said.
However, in the
next two years, HSBC said, its base case scenario shows growth will still be
significantly below trend. The sluggish pace of public investment, and
banking sector and State-owned enterprise (SOE) reforms is impacting consumer
confidence.
In addition, a
still largely unresolved bad debt issue will keep household and corporate
purse strings tight. As of May, credit only grew by 1.3%.
“We expect credit
growth to accelerate in the second half, boosting domestic demand marginally.
Inflation will also accelerate early in the third quarter on higher service
costs and improving domestic demand but will likely settle between 5-6% by
year end. The central bank, thus, will comfortably keep the open market
operations (OMO) rate at 5% for the rest of the year,” the bank added.
While growth will
be sluggish in a short term,
The report also
pointed out that the Government is slowly removing internal trade barriers,
with infrastructure investment more targeted to facilitate trade and domestic
retail flows. What remains is the regulatory framework for public, SOE, and
banking sector reforms and its enforcement.
According to the
report, reforms are proceeding with a two-step forward and one step backward
approach, reflecting the Government’s indecision about the role of the state
sector in an increasingly globally-integrated economy.
Council set
up to link businesses and families
The Vietnam
Entrepreneur and Family Council came into existence last week on the occasion
of the Vietnamese Family Day.
Pham Dinh Doan,
chairman of Hanoi-based Phu Thai Group, was voted interim chairman of the
council whose initial founding members are around 20 family-run businesses.
Doan told the
inauguration ceremony in the northern city of
The council will
serve as a bridge for business families to connect outstanding business families
and hold events for them to share experiences and information as well as
support one another.
Vietnam Chamber of
Commerce and Industry chairman Vu Tien Loc said Vietnamese entrepreneurs have
become more pessimistic than before after years of difficulties and now is
the time to help lift up the spirit of the local business community.
“The council is
expected to breathe new life into the business community and inspire the
entrepreneurship of new generations,” Loc said.
Dollar
loans surge 10 per cent in first half of 2014
Credit growth in
foreign currencies increased by 10 per cent in the first half of this year
stirring both confidence and doubts about the foreign liquidity of the
banking system.
The 10 per cent
growth of dollar loans is likely to be significant, especially when the
overall credit growth in six months was an estimated 2.3 per cent.
Le Xuan Nghia,
member of the National Financial Supervisory Council, quoted by baodautu.vn
website, saw this surge as a good sign.
"The
statistics indicate that the status of foreign liquidity at banks is
worry-free," Nghia said.
"Banks may see
they don't necessarily stock foreign currencies that might lose its appeal.
They can purchase it if required," he added.
The State Bank of
Annual interest
rates charged over privileged loans hover around 7 to 8 per cent. For
manufacturing sectors, the rates are 9 to 10 per cent for short terms and
10.5 to 12 per cent for mid and long terms per year. For dollar loans,
popular lending rates are 3 to 7 per cent annually.
Director of a HCM
City-based export company deposited Vietnamese dong to get 6 to 7 per cent saving
interest then used the deposit paper as collateral to borrow dollar loans at
4 to 5 per cent interest rates at banks.
Regarding the big
gap between the rates of dong and dollar, industry experts said that the
increasing favour of dollar loans was understandable.
Huynh Buu Son, an
independent expert, cited by thanhnien.com.vn, saw risks in banks' liquidity
of foreign currencies as the ratio of lending over deposit reached 99.5 per
cent.
He said that banks
needed to have a provision fund to secure their foreign liquidity if
depositors withdrew money.
It should be noted
that the State Bank is not equipped to offer support to banks which run into
problems with foreign currency liquidity.
In May, the State
Bank admitted to high risks when businesses continued to prefer foreign
currency loans.
Economists have
urged the central bank to cut the dong interest rate further, in order to
ease the capital cost burden on businesses. The central bank said it would
take time to consider the issue thoroughly for the sake of the dong position
in the long run.
Pham Xuan Hoe,
deputy head of the central bank's Monetary Policy Department said that as of
June 25, the total supply of the system increased by 6 per cent. Roughly 87
to 90 per cent of capital sources at banks flew into Government bonds and
State Treasury bills.
Hoe said that a
large amount of money should be directed into the market to support economic
recovery instead.
Cashew
exporters seek SBV help
The Viet Nam Cashew
Association (Vinacas) has asked the State Bank of
The State should
also provide the enterprises with additional financial assistance to
facilitate further investment in improving processing capacities. This would
ensure production of high value-added products, Vinacas Vice Chairman Dang
Hoang Giang told radio The Voice of Viet Nam (VOV).
Giang said that
However, the
industry was currently operating at 50 per cent of its capacity, he said,
adding that low value adds, small scale of production, and capital shortage
due to difficulties in accessing bank loans remained its major obstacles.
During a recent
conference in southern Ba Ria – Vung Tau province, trade experts said that if
cashew processors did not pay attention to improving the qualitative
competitiveness of their products and processing capacities, they would be
under severe pressure.
Quality products
would make it easier for businesses to enter demanding markets and get higher
profits, they said.
Up to 130,000
tonnes of cashew nuts were shipped abroad during the first half of this year,
bringing the country an export turnover of US$830 million.
The association
predicted that the industry was likely to realise a turnover of $2.2 billion
this year from exporting 180,000 tonnes of cashew nuts and shipments of nut
shell oil and other processed products.
There are roughly
300 Vietnamese firms involved in exporting cashew nuts to 100 countries and
territories worldwide.
Among them, the
Experts
discuss equitisation efforts
Social resources
should be included in the equitisation of State-owned enterprises (SOEs) to
pave the way for people to take control of the economy, said experts at a
workshop here.
If so, stages of
equitisation such as appraisal, charter capital structure, shareholder issue,
apparatus and human resources will change for the better, which in turn,
would bring more benefits to workers, investors and the economy as a whole,
they said at the workshop on June 30.
Equitisation forms
part of the ongoing economic restructuring scheme, since a number of SOEs ran
ineffectively, incurring huge losses in 2012 due to their scattered
investments.
It is advisable to
examine the performance of the SOEs' business areas and ensure they continue
running productive units only, said Deputy Director of the Ho Chi Minh
National Academy of Politics and Public Administration, Associate Professor
Le Quoc Ly.
Under its decree
issued in May, 2014, the government will, from July 10, monitor, examine and
inspect SOEs with regard to the observance of law and decisions taken by
their owners. The move is expected to help owners and State management
agencies see a full and clear picture of operations of SOEs.
Nguyen Thi My Dung,
from the University of Finance-Marketing, warned of challenges ahead during
the 2014-15 equitisation plan and added that thorough preparations are vital
to the process.
VPBank gets
nod to acquire finance firm
The State Bank of
Viet Nam (SBV) on Monday allowed the Viet Nam Prosperity Bank, or VPBank, to
acquire the Vinacomin Finance Company.
The seller is the
Viet Nam National Coal and Minerals Industries Group, or Vinacomin, which
will transfer its entire equity at the finance company to the bank.
SBV Decision No
1282/QD-NHNN, dated June 30 and taking effect on the same day, states that
the bank will inherit all rights, responsibilities and legal interests of the
group here.
According to a new
business licence granted by SBV Governor Nguyen Van Binh, the finance firm
has a charter capital of VND1 trillion, or US$47.62 million, and its name is
changed to VPBank Finance Company.
Its operations vary
from receiving deposits and borrowing money, issuing and trading valuable
documents, contributing capital and buying stakes, to providing foreign
exchange services and granting consumer credits.
It can also deal in
insurance and consultancy services in banking and investment areas.
The Government had,
in principle, approved the equity sales of Vinacomin in May with the aim of
implementing the divestment of State-owned enterprises from non-core lines of
business, and restructuring the credit institution system.
VPBank said it
would shift all consumer credit activities to the acquired company for better
operations, as it planned to be among the top retail banks in
Ca Mau sees
positive economic growth
The southernmost
Aquatic product
yield recorded a year-on-year rise of 15 percent, reaching 200,000 tonnes,
while exports earned nearly US$500 million, according to the chairman of the
provincial People's Committee, Pham Thanh Tuoi.
Industrial
production hit nearly VND7 trillion ($329 million), 21 percent higher than
the target.
The locality aimed
to reach an aquatic product yield of 420,000 tonnes, a farm produce output of
550,000 tonnes, and an export value of $1.1 billion this year.
Central city to
design shopping centres
The central city
plans to build a major downtown shopping centre next month, vice chairman of
the city people's committee Phung Tan Viet said.
Six main streets
will house stores selling fashion and electronics as well as souvenirs and
cuisine from Da Nang and nearby destinations Hue, Hoi An and My Son.
The VND20 billion
(US$950,000) shopping centre will cover a wide area, including the bank of
the
The city will
construct five shopping buildings and performance spaces next year, including
Golden Mart, Meriden Far East and Nguyen Kim Trading and Apartment complex.
A seminar on
leather trends for the fashion, furniture and automotive industry will be
held on July 11 to promote trade between
The event is
organised by the Italian Chamber of Commerce in Viet Nam in collaboration
with the Special Agency of the Milan Chamber of Commerce; the International
Leather Fair System – Lineapelle; and Unic – the National Union of the
Tanning Industry, leather tanning, Milan, Italy.
It is supported by
Viet Nam Trade Promotion Agency and the HCM City Shoes and Leather Association.
Dong Nai
sees 15.8 percent rise in exports
The southern
Of the total, the
foreign-invested sector contributed 5.112 billion USD, up 17.5 percent over
the same period last year.
Bo Ngoc Thu, head
of the provincial Department of Planning and Investment, attributed the
results to the stable production by foreign invested enterprises, including
many newly-established ones which were kept busy with orders.
At the same time,
the province also worked hard to ease difficulties for local firms in terms
of market and capital, while joining many trade promotion events abroad,
especially in
Particularly, good
signs were seen in the export of agricultural products. According to the Dong
Nai Statistics Office, the province shipped abroad nearly 130,000 tonnes of
coffee for 276 million USD in the six months, up 33 percent in volume and
30.3 percent in value.
Meanwhile, it also
earned 70 million USD from exporting about 11,000 tonnes cashew nut, a rise
of 12.6 percent in volume.
Local agricultural
firms held that the export of farm produce enjoyed favourable conditions in
both output and price, together with rising demand from a number of markets,
especially those in Africa and
In order to reach
the target of 12 billion USD in exports for this year, Dong Nai will help
local enterprises expand their market by connecting them with foreign
importers and sending them to trade and investment promotions and trade fairs
abroad, including those in Germany, Myanmar, the Republic of Korea and Japan,
said Thu.-
Technology
nursery for
Leaders from the Mekong
Delta city of
The construction of
the 21-million-USD project was kickstarted in November last year at the Tra
Noc industrial park with an area of 12,000 square meters.
It aims to build a
research and development centre for farm produce and seafood processing and
mechanical enginerering industries.
This will not only
help the region promote its agriculture advantage but also support farmers to
access advanced technology for high-quality products.
Managing director
of the project Kim Hee Sup said the RoK will set up a Mekong Delta research
institute in the country to promote exchanges between experts and students of
the two sides.
Vice Chairman of
the Can Tho People’s Committee Truong Quang Hoai
Kinh Do to
venture into coffee and cooking oil markets
Confectionery maker
Kinh Do Corporation on June 30 unveiled plans to invest in
Its foray into the
cooking oil and coffee markets marks yet another move in its business
diversification strategy. Earlier, the company announced its partnership with
At the firm’s
annual general meeting in HCMC on June 30, Kinh Do’s shareholders approved
the plans to invest in Vocarimex and Phin Deli as well as the deal with
Saigon Vewong.
Kinh Do did not
unveil how much it would invest in Vocarimex but the latter said as a
strategic shareholder Kinh Do would hold a 24% stake. In addition, securities
firm VPBS will own an 8% stake at Vocarimex.
Vocarimex looks set
to launch an initial public offering (IPO) on July 25 with the share price
starting from VND11,300 per share. With this price, Kinh Do is expected to
spend more than VND330 billion owning 24% of Vocarimex.
In March this year,
Prime Minister Nguyen Tan Dung signed Decision 446/QD-TTg approving the
equitization plan of Vocarimex with chartered capital of VND1.218 trillion
equivalent to 121.8 million shares (VND10,000 per share). Accordingly, the
State would own 36% of the firm, strategic investors 32%, and employees and
outsiders the rest.
As leader of the
domestic confectionery market, Kinh Do said the sector now offers little room
for expansion and in the last three years, the company has made efforts to
find opportunities to invest in the sectors of foods and essential products
to expand business.
The country’s
cooking oil market size is now estimated at some VND22.3 trillion, or over
US$1 billion, with annual growth of 7-9%, while the respective figures for
the instant coffee market are VND4.75 trillion and 15-20%, said Tran Quoc
Viet, deputy general director of Kinh Do.
Viet said the firm
has signed an agreement to become a strategic shareholder of Vocarimex, but
he did not reveal the stake it has acquired from the edible oil maker or when
the joint scheme will start production.
Vocarimex is now a
major cooking oil producer in the domestic market with two popular cooking
oil brands, Tuong An and Nakydaco. It also owns stakes in Cai Lan Oils and
Fats Industries Co. Ltd, owner of
Kinh Do did not say
when it will have the first coffee product either but revealed that it will
hold a majority stake in the deal with Phin Deli.
The confectionery
producer last month said it would partner with Saigon Ve Wong to produce
instant noodles and spices in the third quarter of this year.
In their
joint-venture, Saigon Ve Wong will produce instant noodles, rice porridge and
pho (Vietnamese noodle soup) for Kinh Do while Kinh Do will distribute spices
of the
The Kinh Do leader
said the corporation saw abundant opportunities in the domestic instant
noodle market whose size is now estimated at more than VND22.34 trillion per
year.
However, Kinh Do
still sees confectionery manufacturing as its core business and continues
expanding the business with a focus on export.
At the meeting, its
shareholders also agreed on this year’s revenue target of VND5.15 trillion
and pre-tax profit of VND660 billion, rising 13% and 6.6% respectively over
last year’s figure. The company expects to offer its shareholders a dividend
of 20% in cash.
Ford Vietnam
churns out first EcoSport
Ford
Ford
“The all-new
EcoSport is the next proof point of our ongoing product-led transformation
and aggressive growth plan for
Built on Ford’s
global B-segment chassis, the EcoSport is an alternative to a compact car
with room for five adults and storage, but also versatility and smart
connectivity that will appeal to lifestyle customers who are independent and
love exploring the world around them. The all-new EcoSport’s high driving
position, rugged capability, superior fuel economy and convenient features
make it just the right vehicle for both city streets and mountain roads.
Powered by Ford’s
global 1.5-litre Ti-VCT engine mated to Ford’s six-speed automatic
transmission or five-speed manual, the EcoSport will be available at Ford
showrooms nationwide starting in July.
Two weeks ago Ford
“We’re continuing
to make significant progress on our One Ford plan, as strong sales across our
lineup reflect the widening consumer appeal of the Ford brand in
Ford also
maintained its lead in the pickup truck segment in May, as the Ranger
delivered retail sales that increased 130 per cent to 308 units. So far this
year, total sales of the Ranger have jumped 164 per cent to 1,348 units.
VietinBank
to sell VND1.5-trillion of bad debt to VAMC
Vietnam Bank for
Industry and Trade, or VietinBank, is going to sell around VND1.5 trillion
worth of bad debt to Vietnam Asset Management Company (VAMC), said a source
from VAMC.
VietinBank is the
last among the four State-owned banks to sell debt to VAMC. The other three
are Agribank, BIDV and Vietcombank.
Pham Huy Hung, who
used to serve as a leader at VietinBank for over 25 years, once said that
VietinBank had no plans to sell bad debt as it would settle it on its own.
The situation has been different after Hung’s retirement.
Le Duc Tho, new
general director of the bank, recently told the Daily that selling debt to
VAMC is a good move. As the economic slump is not over this year, the bank is
taking a range of measures, including selling some debts and tackling others
by itself.
VietinBank has seen
major negative changes in financial indicators. According to its consolidated
financial report in the first quarter, VietinBank’s total assets as of March
31 dropped 3% against late 2013 to nearly VND559 trillion. Its bad debt ratio
stood at 1.78% compared to 1% at the end of 2013.
The figures were
surprising as VietinBank had always maintained better asset and debt ratios
than the other State-owned banks for years.
Explaining the
changes, Tho said VietinBank has restructured total assets to suit the
current market and business situations.
VietinBank at its
2014 annual general meeting in April for the first time set a lower profit
target than in the previous year. The bank aims to obtain nearly VND7.3
trillion in pre-tax profit, down 6.1%, with credit and mobilization growing
13% and 12% respectively.
This year, VietinBank’s
total assets are expected to rise 11%.
In the first six
months of this year, VAMC bought over VND6 trillion worth of original debt
from credit institutions, taking to nearly VND48 trillion the total bad debt
value it has purchased so far.
VAMC has bought
around VND1.9 trillion from BIDV and over VND1 trillion from Vietcombank.
One member
State-owned limited companies in
According to
Decision 36/2014/QD-TTg, the companies will have to publicize its business
reports in Vietnamese, including financial statements every six months,
long-term development strategies, annual production and investment plans,
restructuring schemes and results.
In addition, the
companies will publicize corporate evaluation results, payrolls and bonuses.
They are also required to post information on their websites within five
working days after contents of the reports are approved.
The information
should be announced by a legal representative or a person assigned to conduct
information disclosure. The persons must bear responsibility for the accuracy
of the information they disclose.
Agencies related to
the information will also have to publish the reports on their websites
within five working days. The Ministry of Planning and Investment will post
the information on the business portal at www.business.gov.vn.
The rules requiring
announcement of wages and bonuses for leaders such as board members,
controllers, CEOs and chief accountants might draw objections from the
enterprises.
The information
disclosure rules will not affect one member firms under the Ministry of
Defense, the Ministry of Public Security and those in the banking system.
These companies will be governed by specific regulations.
VPBank
acquires 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 after the decision takes effect, VPBank will
have to complete procedures to change all licenses of the finance firm under
current laws and regulations.
With total
registered capital of VND1 trillion, CMF will be renamed as VPBank Finance
Company Limited after being acquired by the unlisted lender.
Early last month,
the Government has given ‘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 share sale planned at 30%
of its registered capital, after Singapore-based Oversea-Chinese Banking
Corporation (OCBC) sold their stake in VPBank in 2013, VCSC said.
Long Bien
opens VND1.5-trillion golf course in
Long Bien
Investment Company has inaugurated a golf course costing around VND1.5
trillion (US$70.5 million) in Long Bien District,
The 119-hectare golf
course incorporates 27 holes, a club house, a 1.52-hectare golf driving
range, a restaurant for more than 1,500 guests at a time, and lakes.
The golf course,
designed by Nelson & Haworth, is also a venue for seminars and fashion
shows, among others.
Japan
firms want better access to information about Vietnam
One of major
difficulties Japanese enterprises are facing when mulling investment in
Japanese
enterprises told the meeting held by the Japan External Trade Organization
(JETRO) to discuss the food industry with local authorities that they had
trouble finding information about the country’s market as a whole and
specific data in each locality to do research before making an investment
decision.
Yasuzumi Hirotaka,
managing director of JETRO in HCMC, said the organization has also found it
difficult to help Japanese firms search for information about
“It is hard for us
to tell enterprises we don’t have the data they need, because that will
disappoint them. Enterprises, especially those specializing in food
processing and agriculture, need to know much more about the market. Complete
and accurate information helps them learn about the market demand so that
they can expand their businesses,” he said, adding that enterprises have to
cover the expenses used to survey the market.
Private market
research companies, meanwhile, are not reliable as they do not have accurate
data about the market, a representative of a firm said.
Apart from
insufficient information, Japanese investors also had other concerns, said
Hirotaka.
So far six
enterprises that have consulted JETRO said they wanted to invest in
Meanwhile,
enterprises that already made investments in
A representative of
a company said while Decree 94/2012 of
In response, Le Thi
ThanhThuy, an official from the Domestic Market Department under the Ministry
of Industry and Trade, said the ministry does not discriminate between
foreign and domestic firms when granting a license as it goes against Decree
94.
Rice prices
surge as export turns active
Prices of rice in
the domestic market have recovered as exporters have boosted their purchases
thanks to positive signs of export markets in the third quarter.
Low-grade IR 50404
paddy (unhusked rice) in the Mekong Delta province of Dong Thap now sells for
VND4,200-4,250 per kilo, rising VND200 against last week, while IR 50404 rice
is priced at VND6,600-6,650 per kilo, surging VND250, said Duong Van Men, a
rice dealer in the province’s Lap Vo District.
Ngo Ngoc Yen,
director of HCMC-based rice trading firm Yen Ngoc, said prices of IR 50404
rice are now around 6,600-6,700 per kilo while high-grade rice is priced at
VND7,700-7,800 per kilo at Ba Dac wholesale market in Cai Be District of Tien
Giang Province in the delta.
“Summer-autumn rice
has yet to enter its harvest season and due to rainy weather, supply has been
dwindling while the demand among food traders has increased, leading to the
price hike in the domestic market,” she explained.
Lam Anh Tuan,
director of Thinh Phat Co. Ltd. in Ben Tre Province, said rice prices will
continue rising in the coming days but may not soar strongly as supply will
be more abundant when the summer-autumn harvest season comes.
Last week, Vietnam
Southern Food Corporation (Vinafood 2) won a contract to export 200,000 tons
of 5% broken rice to
Recently, local
media said the
Tuan of Thinh Phat
Co. Ltd., a member of the Vietnam Food Association (VFA), said the
association has not received any official confirmation about the fresh deal
of the
“Asian countries
are now being affected by climate change, with their output slipping. On the
other hand,
In the year to
date, the country has signed government-to-government contracts to export 1.2
million tons of rice compared to 700,000 tons in all of last year, not to
mention the Philippines’ unconfirmed imports of 200,000 tons. In addition,
According to some
enterprises, rice export in the third quarter may also pick up as dealers
will boost their small-volume shipments through border gates to
Vietnamese 5%
broken rice is now quoted at US$405-415 per ton and 25% broken rice at
US$355-365 per tons, while jasmine rice is exported at US$575-585 per ton on
global markets, increasing by an average US$10 per ton compared to early this
month.
In the year to June
20, member enterprises of VFA had exported nearly 2.9 million tons of rice
worth more than US$1.3 billion (FOB).
AIA
Life insurer AIA
Vietnam just received the title Vietnam Trusted Brand 2014.
This award is based
on result from the reliable product and service survey by the Vietnam
Standards and Consumer Protection Association in cooperation with Consumer
Newspaper.
This is the third
consecutive year AIA Vietnam has received this prestigious award.
Vietnam Trusted
Brand award seeks to honor and reward businesses providing qualified products
and excellent services to consumers.
The programme helps
identify and promote products and services of good quality to serve local
consumers.
Via the programme,
businesses have a chance to bolster reputation as well as their corporate
responsibility towards consumers.
AIA Vietnam’s chief
executive officer Stephen Clark said “Being the most preferred life insurer
in
“AIA Vietnam
receiving certificates of Merit from the Ministry of Finance and Golden
Dragon awards for eight consecutive years and now the Vietnam Trusted Brand
2014 will surly be a great motivation for us to continue strongly focusing on
the essential elements such as diversified portfolio of good products,
excellent customer services and professional premier agency,” he asserted.
Experts concerned about heavier reliance on China
Experts have cast
doubt on a swift exit of
Speaking at a
seminar on economic autonomy in an interdependent world in
Chinese firms are
now involved in 23 of 24 cement projects, 15 of 20 coal-fired thermal power
generation projects, and other large road, bauxite mining and processing, and
forest development projects.
Doanh asked, “Why
has
Chinese firms are
considered masters of bribe giving, he noted, asking whether
Chinese companies
have won contracts at most large projects such as
Customs statistics
show
Nguyen Van Thu,
chairman of the Vietnam Mechanical Engineering Association, said that Chinese
companies are EPC contractors at five of six chemicals projects, all the two mineral
processing projects, 49 of 62 cement projects, 16 of 27 thermal power
projects and a lot of traffic projects.
The pace of
construction at those projects is slow while the quality of equipment is bad,
Thu said.
Can Tho
proposes all-around cooperation with countries
The Mekong delta
city of
At his working
session in the city on July 4 with chief representatives of Vietnamese
diplomatic agencies overseas who undertake their mission from 2014-2017, he
suggested engagements with
As for
He expressed hope
for stronger links across metallurgy, engineering, chemicals, textile and oil
refinery with
As
The Chairman also
sought two-way connections in information technology and architecture with
the
On behalf of the
delegation, its head Nguyen Thanh Son said they will do their best to help
Can Tho facilitate trade with countries worldwide.
New
domestic shipping route launched
A domestic shipping
route connecting
Addressing the
opening ceremony in Hai Phong city, Deputy Minister of Transport Nguyen Van
Cong highlighted the new domestic shipping route would help solving high
inventories at sea ports. This shipping route would also aim to reduce the
dominance of road transportation in the freight market, contributing to
rationally restructure the Vietnam ’s freight market.
The shipping route
will help transport goods via local ports of Quang Ninh, Hai Phong, Thai
Binh, Nam Dinh, Ninh Binh, Thanh Hoa, Nghe An, Ha Tinh and Quang Binh
provinces.
According to Marine
Department Director Nguyen Nhat, the inventory level at Hai Phong, Nghe An
and Ha Tinh ports increased meanwhile the number of ships docked in some
other ports were also high. Nhat also said average monthly, about 500,000-
600,000 tonnes of goods were transported among Quảng Ninh, Hai Phong, Thai
Binh, Nam Dinh, Ninh Binh,Thanh Hoa, Nghe An, Ha Tinh và Quang Binh
provinces. For distance from Quang Ninh to Quang Binh, sea transportation
would take three times longer than the road transportation did but freight
charges by sea were just one- fifth or one-sixth of the charges by road.
The new route would
also help transporting super long and super heavy goods from northern
provinces to central provinces, Nhat added.
In the time to
come, the Ministry of Transport will consider to open many new domestic
shipping routes to reduce the dominance of road transportation, decrease
transportation cost and contribute to developing marine economy at
localities./
Vinatex
pins hope on IPO
The Vietnam
National Textile and Garment Group (Vinatex) is completing final steps for
its Initial Public Offering (IPO) scheduled for July 22 at the Ho Chi Minh
Stock Exchange with great hope for a breakthrough in its development
following equitisation.
Vinatex will be the
first State-owned group to be equitised, with the State still holding a
majority stake (51 percent), according to Le Tien Truong, the group’s Vice
Director General. He added that when market conditions permit, shares held by
the State will continue to be sold with the aim of gradually reducing the
State stake to under 51 percent. At the same time, the group will issue more
share to raise its charter capital.
The Ministry of
Industry and Trade has valued Vinatex at 4,840 billion VND (more than 234.4
million USD), of which 4,300 billion VND is State-owned. The group will raise
its charter capital to 5,000 billion VND (more than 238 million USD) after
equitisation, through the issuance of a total of 500 million shares, each
worth 10,000 VND. The State will hold 255 million shares, while 120 million
shares will be sold to the group’s strategic partner. Of the remaining
shares, 3,000,850 will be sold to the group’s employees and 121,999,150
shares will be put on auction.
Analysts say
Vinatex shares will be attractive to investors, as the garment sector has
good development prospects at least until 2030, particularly when Vietnam is
on the way to sign a series of Free Trade Agreements (FTAs) and the
Trans-Pacific Partnership (TPP). The sector has also enjoyed a wave of
foreign investment in recent years.
Vice Director
General Truong said while TPP prompts the garment sector to seek domestic
suppliers, the equitisation of Vinatex will help the sector move in the right
direction, thus bringing true value to the economy.
Statistics show
Vinatex produced 111,800 tonnes of yarns, 161.4 million metres of cloth, 210
million pieces of garment in 2013, earning 2.9 billion USD from exports and
1,760 billion VND (83.8 million USD) in pre-tax profit.
In the first six
months of this year, the group earned 1.62 billion USD from exports and
11,000 billion VND (523.8 million USD) from domestic sales. Vinatex has set
the goal of raising the local content in its products to 60 percent in 2015
and export value to 5 billion USD before 2020.-
HNX raises
20 trillion VND in Government bonds
The Hanoi Stock
Exchange held 14 auctions and raised 20 trillion (952.3 million USD) in
Government bonds in June, increasing by 27.3 per cent over the previous
month.
The yield of
two-year bonds was between 5.64 and 5.75 percent per year, of three-year
bonds between 6.1 and 6.25 per cent and of five-year bonds between 7.15 and
7.23 per cent. The yields of ten-year and 15-year bonds were respectively at
8.7 per cent and 8.88 per cent a year.
In the secondary
market, the total trading volume of Government bonds under outright
transactions reached 561 million bonds worth 54.8 trillion VND (2.57 billion
USD) in June. More than 213 bonds worth 22 trillion VND (1.04 billion USD)
were traded under the repurchase agreement.
Work to
upgrade Bac Ninh-Hai Duong section starts
Work to upgrade a
section of national highway 38 running through the northern provinces of Bac
Ninh and Hai Duong started in the former locality on July 6.
The
Build-Operate-Transfer project was invested by Vinaconex, Import company and
Licogi 16 at a cost of nearly 1.7 trillion VND (80.9 million USD).
Once completed by
the second quarter of 2016, the 32.8km road will accommodate four lanes, making
it easier to link traffic among industrial parks, seaports and airports in
the two provinces.
Deputy Prime
Minister Hoang Trung Hai asked Bac Ninh and Hai Duong authorities to provide
fair compensation for displaced households, so as to ensure that the project
meets schedule.-
Da Nang
tourism promoted in Ho Chi Minh City
The Department of
Culture, Sports and Tourism of central Da Nang city held a programme in Ho
Chi Minh City on July 4 to promote MICE (Meetings, Incentives, Conventions,
Exhibitions) tourism and introduce its promotion packages there.
During the event,
Ho Chi Minh City’s travel companies were introduced to the central locality’s
favourable conditions in infrastructure and technology to serve the MICE, a
specific form of business tourism that relates to the activities of groups of
businesspersons travelling for business purposes and represents a
multi-million- dollar segment of tourism worldwide.
Da Nang is home to
an international airport with eight domestic routes and 20 international ones,
an international seaport which welcomes 700,000 arrivals each year, and 337
accommodation facilities, including 10 five-star and nine four-star hotels
and resorts.
The department’s
deputy head Tran Chi Cuong said that Da Nang has focused on developing its
infrastructure and improving the quality of its tourism products and services
in order to ensure a safe and friendly environment for visitors.
In 2014, besides Ho
Chi Minh City, the central city will also continue promoting its image to
Hanoi and several foreign countries, including Japan, the Republic of Korea,
Russia and Thailand.
In the first half
of this year, it saw more than 1.7 million tourist arrivals, up 15.8 percent
from the same period last year. Of this, the number of foreigners topped
450,600, a year-on-year rise of 15.7 percent.-
Affected
firm assisted to access foreign currency loans
Enterprises
affected by extremists who took advantage of the recent anti-China rallies to
destroy and loot their property will be assisted in their access to foreign
currency loans for the import of machinery and equipment in order to restore
their production.
A document to this
effect was released by the State Bank of Vietnam on July 4, which says the
Governor of the central bank has agreed in principle for credit organisations
and branches of foreign banks to consider the loans.
Basing themselves
on the request for the loans from the enterprises, those organisations and
branch will report to the bank for consideration in line with an earlier
document on foreign currency loans.
The disturbances in
some localities erupted during workers’ rallies against China ’s illegal
placement of its oil rig Haiyang Shiyou – 981 in Vietnam ’s continental shelf
and exclusive economic zone from early May.
Some extremists
incited others to destroy and loot the property of foreign firms, as well as
some national businesses and individuals, and acted against law enforcement
officials, disrupting social order and business activities.
Authorities have
arrested and tried hundreds of rioters.-
Ministry
urged to keep public debt under strict control
Deputy Prime
Minister Vu Van Ninh has asked the Ministry of Finance to keep public debt
under strict control even though it is still within the safe limit, adding
that the use of loans must be closely managed in order to achieve the highest
efficiency.
Addressing the
ministry’s conference in Hanoi on July 4 to review its performance in the
January-June period and set tasks for the second half of the year, the Deputy
PM instructed that the sector review the budget estimates for 2014 and make
forecast on possible financial resources that can be mobilized when
necessary.
In addition, the
ministry should make recommendations to the government and local authorities
in drafting out response plans for emergencies and in expanding economic and
trade relations.
Deputy PM Ninh also
required the ministry to intensify inspection of the implementation of
financial policies and regulations as well as market and price management.
Finance Minister
Dinh Tien Dung said the ministry will continue to coordinate with other
ministries and localities to remove difficulties for production and business
activities, and at the same time accelerate administrative procedure reform
as well as the modernisation of tax and customs management work.
He affirmed that
the tax and customs will strive to exceed the target on budget revenues for
this year.
Regarding State
budget spending, the ministry will focus on speeding up the disbursement of
development investment and the settlement of debts in capital construction,
while ensuring funding for major socio-economic tasks.
The restructuring
of the economy, particularly the re-arrangement of State-owned enterprises,
the stock market and insurance companies is also a top task for the remaining
months of the year.
Statistics from the
ministry showed that State budget collection and spending were estimated at
413.6 trillion VND (19.3 billion USD) and 492.4 trillion VND (23.1 billion
USD), respectively in the first six months of this year. The figures
represent respective rises of 15.8 percent and 8.8 percent year-on-year.
Source: VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
|
Thứ Hai, 7 tháng 7, 2014
Đăng ký:
Đăng Nhận xét (Atom)
Không có nhận xét nào:
Đăng nhận xét