|
BUSINESS
IN BRIEF 21/8
The State
encourages the cultivation of genetically-modified (GM) maize varieties in 13
Mekong Delta localities, heard a workshop on bio-technology held in Can Tho
city on August 18.
Pham Van Du, deputy
head of the Plant Cultivation Department under the Ministry of Agriculture
and Rural Development, said that the shift aims to increase economic
efficiency in farming, thus improving farmers’ income and living conditions.
He added that under
the plan on crop structure shift, there will be 30,000 ha under GM maize by
2015.
The GM maize
varieties are resistant to insects and herbicides. Their average productivity
is 19 percent higher than that of normal ones, while farming costs decrease
by 10 percent. The area of land necessary to produce one ton of corn kernels
is also 15 percent less that required for normal varieties.
Du cited results of
surveys in nine out of the 13 localities in the region which showed that
farmers earn between 20-25 percent more profit from GM maize than normal
varieties.
He urged localities
in the region to guide farmers in using new varieties developed by
bio-technology.
The workshop was
co-organized by the US Embassy in
OceanBank
offers special rate for export firms
OceanBank will be
implementing a program offering a preferential interest rate of 2.8 per cent
per year to export enterprises that borrow in US dollars from now till
year-end.
According to
OceanBank officials, the program aims to help the exporters supplement
capital for production and business activities. The rate will be applied to
all short – to long-term loans within six months.
The officials said
the bank was also granting businesses incentives in the money transfer,
e-banking and guarantee services.
Metro
outlet wins ASEAN energy management award
Metro Cash and
Carry Vietnam's Hiep Phu outlet has won the second prize in the ASEAN awards
for best energy management practices by buildings and industries in the small-
and medium-building category.
The wholesaler has
installed the country's first solar lighting system, which helps it save
VND300 million (US$14,000) per year and cut down 220 tons of CO2 emissions.
It also uses other
technologies like food preservation and air-conditioning systems that are
environmentally friendly.
"The
technology helps us save energy, creating value for customers and reducing
the negative impacts on the environment," Philippe Bacac, the company's
Cyber
security contest opens to participants
Vietnamese youth
who are interested in mastering cyber security are invited to take part in
the WhiteHat Grand Prix, a contest organized by Bkav, a leading Vietnamese
security company.
The competition
aims to enhance learning and research on cyber security among the young,
thereby increasing the number of cyber security experts in the country.
Under contest
rules, interested parties may form teams of two to five members each, aged
below 35 years. They must register their respective teams on whitehat.vn, a
website that serves as a forum for aspiring cyber security experts, before
September 15.
Tra fish
distribution centre shaping at Belgian harbor
The concerned
agencies are speeding up the establishment of a distribution centre for tra
fish in the European market.
Head of the
Directorate of Fisheries' Science, Technology and International Co-operation
Department Nguyen Viet Manh said that they were coordinating with the
Ministry of Industry and Trade's Export and Import Department, and Vietnamese
Trade Office in
The Vietnam
Association of Seafood Exporters and Processors (VASEP) and
Under the MoU, a
centre will be built at
However, Hoe said,
the biggest obstacle for the project was a regulation requiring 8% of
Hoe said that a
series of detailed regulations and policies must be issued to have all
Vietnamese tra fish go via the centre before being transported to
distributors in the EU, and the quality and price of the fish needed to be
maintained throughout.
Hoe said that the
project would bring major benefits to
It will help
Vietnamese tra fish exporters to save time and reduce costs, Hoe said.
Cooperation with
Japanese businesses will sharpen the exporting skills of Vietnamese partners,
enabling them to better compete in the global marketplace, said Nishiyama
Akia, Director of Japan BSO company at a seminar in
According to the
Ministry of Industry and
As of the end of
July, Japanese businesses invested more than US$36 billion in 2,353
Vietnamese projects, comprising 13.9% of the total number of FDI projects in
the country and 14.9% of cumulative FDI capital.
Vo Tan Thanh,
Director of the Vietnam Chamber of Commerce and Industry (VCCI)’s branch in
Additionally,
Japanese investors better follow investment law and policies, he said, adding
they mainly invest in processing and manufacturing industry and hi-tech.
Thanh emphasized
that
BSO director
Nishiyama said to successfully cooperate with Japanese businesses, Vietnamese
businesses should build mutual trust, especially reputation.
Yamauchi Yuij,
Director of Alaki Company, said through the seminar, Japanese experts want to
help Vietnamese businesses update information and IT application to serve
their trading activities and overcome geographic barriers and administration
procedures.
Vinamilk
wins Global Food Industry Award
Vinamilk’s
dedication to food science and technology has been acknowledged by the
International Union of Food Science and Technology (IUFoST).
The IUFoST has
honored Vinamilk with its prestigious Global Food Industry Award, which is
given in recognition of the company’s efforts in advancing global food
science and technology for the benefit of everyone.
Vinamilk surpassed
100 competitors from 70 countries around the globe in competition for the
accolade.
The awards ceremony
was held at the 17th World Congress of Food Science and Technology and Expo
in
Vinamilk currently
exports infant formula, powdered milk, baby food, condensed milk, fresh milk,
soya milk, soft drinks, and yogurt to 31 countries and territories.
All five dairy
farms operated by Vinamilk in
Accelerating
ODA disbursement
The pace of
disbursement of official development assistance (ODA) picked up by over 46%
on-year in the first six months of 2014 to US$3.2 billion, meeting 58.7% of
the year’s annual target.
Most notably,
capital disbursement of World Bank (WB)’s loans hit a record high of more
than US$1 billion during the reviewed period.
In a bid to further
accelerate disbursements, Deputy Prime Minister Hoang Trung Hai has urged all
agencies and ministries to reassess ODA-funded projects, including projects
using preferential loans, to identify those falling behind schedule and take
remedial action.
Despite the
improvement, obstacles continue to hamper disbursement of ODA across sectors
and localities, said Hai.
For instance, the
number of projects in transportation, energy and urban development is higher
than in health care, education and training, information, labor, and social
affairs. Similarly, ODA disbursements in
Hai asked
ministries, departments and localities to improve the quality of project
appraisal work to minimize adjustments and changes during the implementation
process to avoid waste, while carrying out comprehensive measures to raise
the quality and performance efficiency.
He also authorised
the Ministry of Planning and Investment (MoPI) to coordinate with the
Ministry of Finance, the Ministry of Foreign Affairs, the State Bank of
Deputy PM Hai also
gave out specific directions for several key projects which are slow going,
such as
Japanese
experts advise VN firms to conduct overseas promotions
Vietnamese
companies need to further promote their products, especially online, if they
wish to sell in foreign markets, a conference heard in
Speaking at the
conference to promote trade and business with
Yuji Yamauchi,
president of Alaki Company Ltd, said working with many Vietnamese companies
has shown that the internet was the best way to boost business.
Besides studying
Japanese companies, Vietnamese companies should show how strong they are, and
they have to do it online by uploading information about their products,
quality, and service, he said.
If there are no
advertisements, Japanese companies would know nothing about
Nishiyama Akira,
director of BSO Investment Consultant Company, told the conference that
Vietnamese companies should learn from the experience of Japanese companies
and then add their own strengths.
He told Viet Nam
News that since his country lacks a young population it needs to co-operate
with other countries including
"Creating
trust and being in time are very important," he said.
He told the 100-odd
Vietnamese business executives about the habits and needs of Japanese
companies and the way they think and act.
Last year
The conference was
organized by VCCI and attended by over 100 of companies.
Bac Giang
told to attract FDI to agriculture sector
The
Sang visited the
locality yesterday to examine its socio-economic development and defense
security, including the combat readiness of army corps No 2 stationed in the
province.
Although the
province had good land for agriculture, it should use scientific and
technological advances to create new farming techniques, he said.
The President asked
authorities to also use hi-tech industries to generate higher added value for
industrial products.
He suggested local
departments and branches provide vocational training for rural laborers to
create a firm foundation for industrial development.
According to the
provincial People's Committee, the province has an annual industrial
production growth of 30 per cent, attracted 247 projects with a total
registered capital of VND10 trillion (US$476.1 million), and achieved a GDP
per capita of $1,250.
However, about 9
per cent of families were living under the poverty line, a drop of 10 per
cent from 2010.
Local authorities
proposed the Government help Bac Giang become a key province in tourism and
support enterprises investing in the locality.
Earlier, President
Sang visited army corps No 2, the first mobile regular unit of the Viet Nam
People's Army in the southern battlefield during the American war.
The unit
participated in many campaigns and made outstanding exploits, deserving the
trust of the Party, the State and people.
Later, he visited
Wintek, a Taiwanese-owned company that employs 7,000 local people. The
company, specializing in making mobile-phone screens, plans to increase its
registered capital to $1.1 billion.
The deputy chairman
of the city People's Committee, Nguyen Huu Tin, said the existing
infrastructure would be overwhelmed if
Tin was speaking at
a meeting of the State Assessment Council for Long Thanh International
Airport Project last Friday in Ha Noi.
He explained that
to meet the additional 5 million passengers per year, the city must invest
US$4 to 5 billion to upgrade the transport facilities, including an elevated railway
and roads connecting with the airport.
Tin said
An expansion of
Therefore,
construction of
Sixteen members of
the State Assessment Council have voted to approve the report on investment
for the project to build
With approval of
the council's majority, the council will submit the report to the Government
and the National Assembly for the NA's ratification in its meeting in October.
The minister of
Planning and Investment and chairman of the State Assessment Council, Bui
Quang Vinh, has asked the Transport Ministry to supply guidance to Airport
Authority of Viet Nam – the investor of Long Thanh Project – to use the
council's suggestions to complete its report on Long Thanh Airport Project
for submission to the Prime Minister in October.
Approved by the
Prime Minister on 14 June 2011,
The airport, to be
built in three phases, is expected to be fully operational by 2035, with an
annual capacity of 100 million passengers.
Construction on the
With an investment
of more than US$10 billion and covering more than 5,000ha, Long Thanh is
expected to become a competitive international airport and a key entry point
to
Funding for the
project will come from Government bonds, official development assistance
(ODA) and private sources.
Government capital
and ODA will be used for airport infrastructure and private funding will be
sought to build the passenger terminal.
More than $6.7
billion will be spent on ground clearance and construction during the first
phase. Airport capacity will double after the second phase and will be
completed by 2030.
The airport, which will
be located around 43km from HCM City, will serve 90 per cent of international
and 20 per cent of domestic flights, diverting a major chunk of passenger
traffic from Tan Son Nhat International Airport in HCM City.
Experts
highlight key role of HR
For a business to
be successful, focus should be on developing staff, participants said at a
panel discussion on "CEO perspectives on HR management" held in
Businesses depend
on many factors, including capital, technology and human resources, but of
these, HR plays a decisive role in success, said Nguyen Trong Dam, deputy
minister of the Labour, Invalids and Social Affairs.
If a business has
high-quality HR and a good management policy, it could promote their
employees' potential, he said.
Nguyen Ngoc Hoa,
chairman of Saigon Co.op, said HR was even more important in the time of
economic integration.
HR practitioners
must understand the business operations of their companies and their staff in
order to develop appropriate HR strategies to maximize the latter's
potential.
"Besides
training, companies need to develop their business culture, and create a good
working environment to retain people," he said.
Delegates at the
event agreed that local companies were paying more attention to making their
HR management more professional.
Enterprises
investing in people and in HR management usually achieved great success, they
said.
Edward Foong,
assistant honorary secretary of the Singapore Human Resources Institute
(SHRI), said
HR managers in
In
HR management in
A combination of a
relationship focus and standardization would be better for the HR community
in
"The HR
community needs to continue to upgrade to be more confident, to earn the seat
next to the CEO of an organization and not see yourself as an administrator
only doing transactions," he said.
"I see
A few years from
now, Viet Nam HR community and Singapore HR community could be on par with
each other, he said.
To recognize HR
people as well as create a platform for HR practitioners to share experience,
the Talentnet Corporation and the Labor and Social Affairs newspaper
yesterday launched the Viet Nam HR Awards, the first of its kind in the
country.
Endorsed by the
Ministry of Labor, Invalids and Social Affairs, the awards aim to honor
organisations that have achieved overall effectiveness in their HR and people
management practices, and have established common codes for measuring HR
management, said Tieu Yen Trinh, general director of Talentnet Corporation.
Based on the
professional methods of the Singapore Human Resources Institute (SHRI), the
awards also aim to connect enterprise owners and staff through raising
awareness about HR's role.
Any business
operating in
Registration is now
open until September 19, and awards will be presented in December.
SOEs urged
to improve quality
The Ministry of
Industry and Trade is calling for the renovation of technologies to enhance
the quality of products and services of State economic groups and
corporations under it.
The proposed
renovation is expected to raise the quality and lower the prices of products
and services of the economic groups and corporations, which all signed a
co-operation agreement prioritizing the use of each other's products and
services two years ago.
The agreement, a
response to the campaign called "Vietnamese use Vietnamese
products," aimed to increase local procurement rates and enhance the
supply chain among State economic groups and corporations under the ministry.
It also helped boost the production and lower the inventories of these groups
and corporations.
Exactly 16 State
economic groups and corporations signed a common agreement while 11 groups
and corporations signed bilateral memorandum of understanding calling for the
use of each others' products and services on October 9, 2011.
The implementation
of the agreement led to the signing of numerous contracts estimated to be
worth VND71 trillion (US$3.35 billion). The figure excludes the purchase
contracts for electricity, oil and petrol, the ministry's report showed.
However, co-operation
remained limited as locally-produced products only met a modest part of the
demand.
According to the
ministry, a good number of products made in line with the agreement were poor
in quality and design and could not compete against imported products. The
products also did not meet the quality standards of State economic
corporations.
Nguyen Xuan Son,
PetroVietnam Chairman, confirmed this yesterday when he said product quality
was a major hurdle for his company.
Son said the
group's fund for prioritizing the use of State corporations' products had not
been used up because the products failed to meet the standards of the petrol
and oil sector.
The petrol and oil
sector each year must use millions of tonnes of steel for its work, but most
of the steel that PetroVietnam used was imported because locally-produced
steel was poor in quality, he added.
Tran Quang Nghi,
Vinatex Chairman, said the ministry should evaluate the competitiveness of
locally-manufactured in comparison with imported products.
If locally-manufactured
products were of equivalent quality and price as imported ones, local
products would be prioritized, Nghi said.
Besides enhancing
product and service quality to meet international standards, the ministry
also urged State economic groups and corporations to ensure competitive
pricing of products by lowering production costs.
Solutions
to boost cacao crop in Mekong Delta
In recent years,
the cacao-growing area in the southern
Cacao production in
Ben Tre has been constantly growing both in quality and quantity.
At a conference
about sustainable cacao development recently held in Ben Tre province, Deputy
Head of the Department of Crop Production under the Ministry of Agriculture
and Rural Development Nguyen Van Hoa affirmed that the demand of the world
market for cacao is great and this intercrop in coconut gardens and orchards
is the most relevant option at present.
Ben Tre is one of
the leading provinces nationwide in term of cacao-growing area. A major cacao
in Ben Tre province intercropped in coconut groves have helped farmers to
double their income in the same area. Particularly, the cacao in Ben Tre
province have been purchased by many large groups and businesses to produce
chocolate such as Cargill and
However, cacao is
still a new crop and has many pestilent insects; planting technique and
preliminary treatment are quite complex and new for farmers. Moreover, the
system of purchasing and preliminary treatment have not been built
synchronously causing many difficulties for farmers.
To develop cacao
sustainably for the Mekong Delta in the future, localities should implement
synchronous solutions from research, selecting seed cacao, transferring
techniques of planting, care, and pestilent insect prevention for farmers.
According to the
Ben Tre provincial Department of Agriculture and Rural Development, the
province has nearly 5,000 hectares of cacao. The low selling price
discouraged farmers so they massively cut down cacao in late 2012 and early
2013 to change new plants such as green grapefruit, orange and lemon.
At present, it has
127 points to purchase and primary process cacao for farmers.
The cacao
plantation area in
Businesses
urged to invest in green production
Businesses have
played an important role in promoting advanced manufacturing technology in an
effort to create a green and sustainable economy, the Vietnam Business Forum
Magazine (VBF) reported on August 18.
The workshop
"Green Business Model Innovation - from Production to Management"
recently organised by the Asian Institute of Technology aimed to introduce
the green business model, particularly focusing on innovation in helping
manufacturers produce cleaner and more friendly-environmental products.
The delegates
discussed the need to improve green production criteria. Businesses can
access new markets if their products have higher quality and meet the
requirements of origin for export products.
Participants noted
that in the international integration trend, cleaner production has become
one of important strategies. Cleaner production is done by reducing the
negative impact throughout the product lifecycle, from design to disposal.
Nguyen Quang Vinh,
General Secretary of the Vietnam National Business Council for Sustainable
Development (VBCSD) said that clean and green production would enhance the
competitiveness of enterprises.
The small and
medium-sized enterprises have found hard to successfully apply this
production model due to difficulties in capital investment in technology.
Nguyen Van Tuyen,
Director of Tien Dat Investment and Service Trading Production Co., Ltd, said
that green manufacturers not only benefit themselves but also create
sustainable value chain for society. In response to environmental degradation
and increasing threat from climate change, many countries in
The Government has
also issued several action plans aimed at efficient use of natural resources
and all manufacturers are encouraged to adopt cleaner production model. The
State also has been building the legal provisions; setting up economic tools;
offering support measures; implementing guidelines to build cleaner
production project for businesses.
Can Tho
city aims to attain regional trade hub status
From now to 2020,
Can Tho city will focus on developing trade intensively to improve its
international integration and become a trade hub of the Mekong Delta region,
a municipal official said on August 19.
At a meeting with
representatives of the business circle, Vice Chairman of the municipal
People’s Committee Dao Anh Dung said the city aims for trade – services
accounting for 47.1 percent of its economic structure by the end of 2015, up
3 percent from 2013.
The sector is
expected to make up 52 percent of the local economy, equivalent to 164
trillion VND (7.8 billion USD), by 2020, he noted.
The city is set to
build 110 markets, 14 supermarkets, and 17 trade centres, including a
regional-scale one, between now and 2020, Deputy Director of the municipal
Department of Industry and Trade Bui Ngoc Vy said.
In the meantime,
the locality plans to step up trade promotion abroad in a bid to seek more
outlets for its aquatic products in Asia, the Middle East, Oceania, Europe,
North America and
It targets export revenues
of over 7 billion USD by 2020, four times higher than the 2013 figure.
Can Tho will also
simplify administrative procedures to attract 120 trillion VND (5.7 billion
USD) into the trade sector, innovate the manufacturing of export lines, and
strengthen its ties with other localities as well as foreign economic
organisations.
Since the beginning
of 2014, local trade value has reached 49.7 trillion VND (2.36 billion USD),
fulfilling 70.8 percent of the yearly goal, with some 900 million USD coming
from exports.
The figures are
forecast to reach 70.2 trillion VND (3.34 billion USD) and 1.5 billion USD
respectively by the year’s end.
Nghe An
sees craft villages as essential to development
Nghe An’s craft
villages have attached great importance to provincial economic development,
said the Vietnam Economic News.
According to the
newspaper, the craft villages have created jobs for thousands of farmers,
contributing to promoting economic development in the local region. Many
villages are better off than others due to their craft businesses.
Nghe An province
currently has 126 recognised craft villages, specialising in bamboo and
rattan, food and foodstuff processing, sedge mats, reed brooms and votive
paper, boat building, fine art wood products and bonsai.
In 2013, provincial
craft villages reached a total production value of more than 1.85 trillion
VND, provided stable jobs for more than 43,000 people with an income of 9-35
million VND per year per capita.
However, most of
craft villages are facing water and air environmental pollutions due to using
backward technology.
The Nghe An
provincial People’s Committee has many policies to develop handicrafts,
including product diversification and market expansion for better satisfying
foreign and domestic markets’ demands. Provincial localities should redevelop
multiply craft village models like seafood processing in Quynh Luu, Dien Chau
and Cua Lo, and rattan and bamboo ware production in Nghi Loc, Quynh Luu,
Dien Chau and Yen Thanh.
To bring into full
play to the full strength of coastal craft villages in the province while
minimizing environmental pollution, in the coming time local authority needs
to reassess the real situation of craft villages and have relevant policies
to develop these businesses without damaging environment.
The sectors and
authorities will provide financial and technical assistance to protect
environment while encouraging technology transfer and cleaner production.
Nestle
Nestle
The company said in
a statement that after three years of deploying a project to support coffee
replanting, it had given coffee farmers nearly 6.9 million seedlings by the
third quarter this year.
The number of
farmers benefiting from the project has increased from 300 to 19,000 over the
past three years.
According to the
Ministry of Agriculture and Rural Development, the area of over-20-year-old
coffee plants accounts for more than 20%, or 200,000 hectares, in the Central
Highlands. In the next ten years, around 140,000-150,000 hectares of old
coffee plants must be replaced by new ones.
However, coffee
growers are not inclined to replant their farms since new trees run the high
risk of dying.
A study of the
Western Highlands Agriculture and Forestry Science Institute (WASI) showed
that only 14% of replanted coffee plants can live for up to two years and the
rest die due to nematode infections.
WASI has worked
with Nestle
The project has
created a coffee seedling which is resistant to nematode infection and can
ensure output of seven tons per hectare, almost double the present average
output.
Le Ngoc Bau, head
of WASI, said the project has helped ease the difficulties in replanting old
coffee trees.
Along with training
coffee farmers on sustainable cultivation, Nestle
As planned, NESCAFE
Plan will transfer seven million coffee seedlings for growers and train
24,000 growers at major coffee areas in five Central Highlands provinces by
the year-end.
FPT starts
work on Danang property project
FPT Joint Stock
Company has broken ground for the FPT Complex office building in the FPT
Danang technology and residential area to mark its 10th anniversary in the
city.
The VND454 billion
grade-A office complex will be constructed on 5.9 hectares and can house
10,000 staff.
The project will
have swimming pool, park, grass hill, soccer field, basketball court and
other facilities for staff working there such as elevators for the disabled,
wide stairs and roofed walkways.
The first phase of
FPT Complex will be completed by the end of 2015 to provide working space for
3,200 employees.
As scheduled, FPT
Software Danang will hire 2,500 employees in 2015 with the objective of
turning
The project is
recognized as an environmentally friendly and energy-saving complex by the
Ministry of Construction.
Petrolimex
bemoans low rate of return at 4.6%
Vietnam National
Petroleum Group (Petrolimex) obtained a pre-tax profit of VND63 per liter of
fuel sold and a 4.6% profit margin after tax in the first half of this year,
but this company still complained that the rates are meager.
In an announcement,
Petrolimex reckoned that the ministries of finance, and industry-trade did
not calculate sufficient profits in the base fuel prices, leading to the low
rate of gross profit of all items.
According to
Petrolimex’s announcement on the production and business in the first half of
2014 released on August 14, the group’s net revenue reached VND106 trillion,
a rise of 7% year-on-year.
Its consolidated
profit before tax totaled VND856 billion, equivalent to 95% of the year-ago
amount. Of the figure, more than 40%, or VND346 billion, came from lubricant
trading and over 30% or VND260 billion from gasoline. The rest came from
other business sectors.
The total profit
after tax reached VND672 billion, equivalent to last year’s number. These
financial indicators were calculated according to a total sales volume of 4.1
million units (tons or cubic meters) of oil and gasoline, equivalent to 97%
of the year-ago amount.
With this result,
Petrolimes’s profit fell just a few percentages yet the after-tax profit was
equal to that of the same period last year.
The nation’s
leading fuel trading firm, however, insisted on the irrationality in pricing
by the ministries of finance, and industry-trade, which led to the low gross
profit rate of all commodities, particularly in Quarter 1.
Additionally, the
company incurred losses after the central bank devalued
Nguyen Ngoc
Regarding profits,
In the first six
months of this year, the deduction rate was lower.
Petrolimex plans a
dividend of 8 – 10% for 2014. However, 95% of the company’s shares are held
by the State.
Minimum
wage spike seen piling pressure on employers
Many firms have
expressed concerns over a recent proposal to raise the minimum wage by region
by an average of 15.1% next year as agreed upon by the National Wage Council,
saying it would put them into a more difficult position.
The director of a
footwear company in
However, the wage
hike will send other relevant costs rising, making it hard for producers to
maintain normal operations and at the same time keep prices competitive, the
director said.
His company spends
nearly VND10 billion paying for its workers a month but when the new wage
takes effect, the payroll could surge to VND11-12 billion. “We have four production
lines run by 1,200 employees. We could be forced to scale down operations if
the minimum salary is up 15.1%, thus laying off certain staff,” he added.
He also noted
workers’ living standards and businesses’ operations could be assured without
having to raise the minimum salary if inflation is kept low.
Cao Tien Vi,
general director of Saigon Paper Corporation, described the timing of the pay
raise as inappropriate as the economy has yet to be out of the woods. “Given
the sluggish economy, I think, the wage hike is not a really good thing to
do. Moreover, if social insurance cost is up, working capital would shrink
too,” Vi said.
About 1,500
employees at Saigon Paper Corporation have higher incomes than the new wage
approved by the National Wage Council but social insurance is paid based on
the current minimum salary.
Therefore, the
Government should avoid piling more pressure on companies. The macro economy
should be stabilized to support companies, then revise up the wage and social
insurance for workers, Vi added.
Tran Van Linh,
board chairman and general director of Thuan Phuoc Seafood and Trading
Corporation in
Selling prices of
domestic products would soar as a result, affecting domestic consumption. A
fall in companies’ sales would finally eat into workers’ incomes.
The goal of the
salary raise is to balance the interests of employers and employees, but it
would hit enterprises hard, Linh said.
M&A
sets to drive banking market
The banking
industry may see more merger and acquisition deals in the coming time, with
more foreign partners involved.
Ernst & Young
last week announced its annual Banking in Emerging Markets Survey covering 11
markets, which revealed the opinions of 17 banks in Vietnam, including one
joint venture, two wholly-foreign-invested banks, three state-owned banks and
11 joint stock banks.
Some 60 per cent of
respondents believed that the banking landscape over the next year would be
driven by the acquisition of smaller banks by larger domestic banks.
Some 30 per cent
believed the banking industry would be driven by foreign banks not currently
present in the market, and 10 per cent thought that foreign banks already
present in the market would provide momentum.
In terms of foreign
competition, Japanese and European banks were highlighted as the greatest
rivals.
Nine of 17 surveyed
banks saw Japanese banks as competitors, because at least three Japanese
banks have become strategic partners in Vietnamese banks, including Mizuho
(holding 15 per cent in Vietcombank), Tokyo-Mitsubishi UFJ (holding 20 per
cent in Vietinbank), and Sumitomo Mitsui Bank (holding 15 per cent in
Eximbank).
However, Ernst
& Young financial services senior partner Keith Pogson disagreed, “I
don’t agree with this view, because in the coming years, the Vietnamese
market will develop strongly in terms of retail, while Japanese banks don’t
have much of an advantage in this sector. I think competitors to
In fact, according
to the survey, only 13 per cent of respondents said their main competitors would
come from neighboring nations and
Malaysian banks
also backed this opinion, with 66 per cent of those surveyed stating that
banks from ASEAN were a key source of competition, and none viewed Japanese
banks as rivals.
Meanwhile, eight
surveyed banks saw European banks as competitors, citing European banks
operating in
Pogson said more
mergers and acquisitions (M&A) between private banks would be seen in
“M&A would be a
good move. When banks become bigger and stronger, their operations will
become more stable and they will be able to invest in new technology and
offer better services to customers,” he said.
He said the State
Bank was allowing the sale of weak banks to stronger commercial joint stock
or state-owned banks or foreign strategic partners. The State Bank was also
encouraging local banks to consolidate.
For example,
Sacombank recently asked the State Bank to allow it to merge with Southern
Bank this year. If the deal is successfully concluded, it would enable
Sacombank to expand its branches from 416 to 558 nationwide, and to increase
its total assets by 48 per cent.
In another case, PG
Bank is planning to find a partner to raise operational effectiveness, with
Vietinbank rumoured to be in the picture.
Most of the
Vietnamese banks surveyed expected a slight improvement in the economic
outlook, with 13 expecting the economy to improve a little, three expecting
it to improve a lot and one predicting a slight deterioration.
Fifteen banks
expect their performance to improve only marginally, one was far more
positive, while one believed their results would ‘stay the same’.
The banks are also
most optimistic about retail and corporate deposits, with nine rating the
outlook for retail deposits as fairly good, five very good, two neither good
nor bad and one provided no answer.
However,
respondents also expressed concern about the prospect of rising
non-performing loans (NPLs), cited by 76 per cent as the most important issue
facing the industry.
With most banks
concerned by NPLs, 10 banks expect managing credit risk to be their greatest
challenge, six as a challenge and one as no real challenge.
Source: VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
|
Thứ Tư, 20 tháng 8, 2014
Đăng ký:
Đăng Nhận xét (Atom)
Không có nhận xét nào:
Đăng nhận xét