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BUSINESS
IN BRIEF 25/8
Local gold
consumption takes nosedive
Domestic
consumption of gold bars and jewelry in the second quarter of the year
plunged to 19.3 tons from the 33.4 tons recorded a year ago, according a
report by the World Gold Council.
The report puts
sales of gold jewelry at around 2.8 tons and those of gold bars at 16.5 tons
in April-June.
The gold market is
under absolute control by the State Bank of
The report however
says gold imported into the country through informal channels has helped make
up for the lack of official gold supply but is not sufficient.
A gold expert said
gold is no longer a safe haven for Vietnamese people. This is evident in very
low gold transactions.
Saigon Jewelry
Holding Company, the country’s leading gold trader, reports daily trading
volume of 1,000 to 1,500 taels.
The gold market
experienced one of the most turbulent times in the second quarter when
In the coming time,
there will be a low possibility of the central bank increasing gold supply
for the market because the central bank once said it would intervene when the
market turned too volatile.
In the year to
August 15 gold had marked up by 5.67%, or VND1.97 million, year on year. SJC
gold had sold at VND36.67 million per tael, VND2.5 million per tael higher
than world prices, while prices of 99.99% gold rings had been VND34.15
million per tael, almost on par with global levels.
Metro Cash
& Carry ownership change unnerves local suppliers
Berli Jucker Public
Company Limited’s (BJC) acquisition of Metro Cash & Carry Vietnam has
caused anxiety among Metro’s goods suppliers.
Speaking to the
Daily, the director of a fast-moving consumer goods firm, said his firm and
many other suppliers of Metro are worried about the new owner of Metro Cash
& Carry Vietnam.
Multiple suppliers
said they had actually made little profit from supplying goods for Metro as
Metro often asked for high discounts.
Goods suppliers
first signed contracts with Metro Cash & Carry but for the following
contracts, Metro re-negotiated with suppliers on discount rates on an annual
basis and discount rates often increased year after year, according to some
enterprises.
Thai firm BJC as
the new owner of the Metro wholesale center chain spent a hefty 655 million
euro taking over this chain.
A couple of
suppliers have expressed concern that BJC might choose to bring Thai goods to
The director of the
above fast-moving consumer goods firm said he is waiting for moves by BJC and
if BJC actually prioritizes Thai goods, his company would consider switching
to a different distribution system.
However, he seems
optimistic as he believes that even though BJC puts more Thai products on the
shelves of Metro stores, the Vietnamese market would not be flooded by Thai
goods.
Other distribution
channels of his firm are traditional wet markets and sales agents.
The volume of goods
his company provides for Metro accounts for several percents of output and
profit is low, but if Metro opened more outlets, the volume would be bigger.
Meanwhile, the
director of a company specializing in supplying kitchen utensils believed BIC
would prefer distributing Thai goods in
Nevertheless, he
said if Vietnamese consumers still had high demand for local goods, BJC would
have no choice but to continue supplying domestic products, instead of
selling Thai products only.
According to this
director, local products will have to compete with those from
Currently, prices
of Thai products are higher than those of
Metro Cash &
Carry Vietnam earlier issued a statement saying that all of its operations
with 19 distribution centers and properties worth 655 million euros would be
taken over by BJC under a deal signed on August 7. The acquisition is
expected to be finished in the first half of next year.
BJC is a major
distribution, marketing and production firm of
Banks
report high bad debt in first half
Banks’ consolidated
earnings results in the first half of the year show an increase of bad debts
and high risk provisions.
Asia Commercial
Bank (ACB) set aside VND354 billion for its risk provision fund, six times
higher than last year’s same period.
ACB’s high risk
provisions resulted from mounting bad debts. On June 30, 2014, its bad debt
ratio went up from 3% in late 2013 to 3.6%, equivalent to VND4.037 trillion.
With such bad debt,
potentially irrecoverable debts (group 5) totaled VND2.616 trillion, up over
23% against last year and accounting for 64.8% of total bad debts, while
debts needing special attention (group 2) picked up 22%.
At Saigon Thuong
Tin Bank (Sacombank), bad debts recorded on June 30 accounted for 1.5% of
total outstanding loans, up a slight 1.48% from last year. However, its
January-June risk provisions inched up nearly 25% year-on-year to VND308
billion.
Meanwhile, the Bank
for Foreign Trade of Vietnam (Vietcombank) reported total bad debts of over
VND9 trillion, equivalent to 3.09% of its total outstanding loans. Of this,
potentially irrecoverable debts made up VND4.765 trillion, up 70.7%
year-on-year and 2.73% against last year. With such bad debt ratio,
Vietcombank would have to sell bad debts to Vietnam Asset Management Company
(VAMC) in the coming time.
Bad debts at the
Vietnam Bank for Industry and Trade (VietinBank) were put at VND9.575
trillion on June 30, 2.4 times higher than late last year. Besides, its risk
provisions also climbed strongly by over 30%.
This surprised the
market as a long period of time before 2014, VietinBank’s bad debts accounted
for only 1% of outstanding loans and the bank’s leaders appeared to be
confident about the quality of banking services.
Early this year,
after VietinBank’s shareholders approved a leadership reshuffle, including
the posts of board chairman and general director, statistics of the bank
turned out to be less glossy, which demonstrated the new leadership wanted to
make the actual health of the bank known.
Bad debts at
Military Bank (MB) in June reached VND2.915 trillion, up nearly VND770
billion and accounting for 3.1% of total outstanding loans. Late last year,
its bad debt ratio stayed at only 2.46%.
In addition, MB’s
risk provision fund rose by nearly 18% in January-June, which means its bad
debts would have to be sold to VAMC.
Statistics at
Vietnam Export-Import Bank (Eximbank) were also not as good as expected as it
had VND2.364 trillion bad debts. This bad debt amount represented 2.94% if
its total outstanding loans, close to the level set by the central bank to
force banks to sell bad debts. Banks with the bad debt ratio of 3% or above
are compelled to sell debts to VAMC.
Eximbank’s risk
provisions increased by a staggering 88% in the first half of the year. The
bank saw its bad debt ratio at around 2% with VND1.652 trillion late last
year.
According to
analysts, banks’ revelations of their actual earnings results are a good
sign. This indicates banks are more transparent to their shareholders.
In a broader
perspective, the central bank has recently taken measures forcing banks to be
more transparent. However, some said this is just part of a story.
Banks seem to have
delayed releasing their earnings reports. It took them 45 days after quarter
two to announce their reports but those reports have not been publicized.
Just one-third of the banks have released their reports.
Binh Duong
offers preferential loans to riot-hit firms
Enterprises
affected by the mid-May rioting in
With this loan
package to be launched next month, the interest rates will be cut by half,
according to chairman of Binh Duong Province Le Thanh Cung at a review
meeting held last week on insurance payouts and support for protest-hit
enterprises.
Three months after
the rioting occurred, Binh Duong has refunded taxes worth nearly VND524
billion for 143 affected enterprises. Besides, the province has offered tax
extensions for 243 companies with a combined amount of nearly VND19 billion
and is providing 2014 land rent exemptions and reductions for 594 others with
an estimated VND155 billion.
In addition, there
are 12 firms enjoying import tariff exemptions and zero value-added tax on
machines imported to replace the damaged ones. Enterprises outsourcing and
producing products for export also get tax exemptions and those importing
materials for domestic consumption get tax refunds.
Besides,
enterprises building or repairing their damaged facilities are not required
to seek construction licenses.
However, Cung
acknowledged insurers had been late in making insurance payouts for the
affected enterprises and added the province would urge insurers to speed up
the process.
Binh Duong has so
far brought 28 people to court on charges of rioting and looting during the
anti-China protests.
More than 57% of
companies in the Mekong Delta have reported lower-than-expected business
performances in the first half due partly to last year’s poor results.
A review report on
the corporate sector’s performance in the first six months released by the
Vietnam Chamber of Commerce and Industry (VCCI) in Can Tho at a seminar Can
Tho City last week said 55% of companies in the region met less than half of
their profit targets for the year.
The report also
showed that a mere 4.5% of businesses enjoyed positive growth against the
year-earlier period while 37.5% reported flat business results.
Nguyen Thi Thuong
Linh, general secretary of the Mekong Delta Business Association and deputy
director of VCCI Can Tho, attributed the poor performance of local firms to
the shrinking domestic demand and the negative impact of shrinking export
markets as shown by the report.
“A number of
hindrances such as unqualified labor, rising production cost, difficult
access to bank loans, poor traffic infrastructure, lack of market information
and outdated technology had impacted on businesses,” Linh added.
Most local firms
projected the situation would worsen until the end of this year.
Given the economic
situation in
The two economists
noted
Danh said
Meanwhile, Lan
mentioned the local agricultural industry also relies on
Importers
and exporters shoulder multiple absurd charges
Importers and
exporters in the country have been shouldering more than 10 types of charge
and surcharge since 2010, with some of them described as unnecessary and
absurd.
The reports which
industry associations have sent to the Ministry of Transport say exporters
are paying a wide range of charges including terminal handing charge,
container imbalance charge, port congestion charge and container cleaning
charge.
The authority of
In the past a
number of shipping lines imposed a fuel surcharge when fuel prices rose.
The current charges
and surcharges are 20-30% higher than last year, leading production and
transport costs to swell and cutting into the competitiveness of local
products on global markets, according to the reports.
According to the
Vietnam Leather and Footwear Association (Lefaso), annual charges and
surcharges levied on footwear export shipments amounted to nearly US$110
million.
Industry
associations said certain types of charge could be collected when unexpected
events happened, such as port congestion and imbalanced containers. However,
shipping lines are inclined to keep them in place though problems have been
resolved.
According to
government agencies and industry associations at a meeting last week,
collections of such charges and surcharges are incompliant with international
regulations and practices.
Bui Thien Thu,
deputy head of the Vietnam Maritime Administration (Vinamarine), said the
Vietnamese ship fleet is not capable of transporting export and import goods,
so goods owners have had to rely on foreign shipping lines.
To ensure healthy
competition, Vinamarine proposed the Government authorize the administration
to work with the Vietnam Competition Authority, Vietnam Export Import
Authority, Vietnam Chamber of Commerce and Industry (VCCI) and other industry
associations to conduct a thorough review of charges and surcharges.
The administration
will report to the Ministry of Transport before requesting shipping lines and
agents to stop collecting charges and surcharges deemed as absurd.
The administration
also suggested collaborating with the Ministry of Industry and Trade, the
Ministry of Finance and VCCI to establish a joint task force to monitor
charge and surcharge collections and propose the Government issue an
appropriate management mechanism.
Local firms
fear losses in
Local rice
exporters said the recent rises of domestic rice prices discourage them from
joining a 500,000-ton rice tender which the
The National Food
Authority (NFA) of the Philippines said six enterprises are bidding for the
contract to supply 25% broken rice for the Philippines, including two from
Vietnam – Vietnam Northern Food Corporation (Vinafood 1) and Vietnam Southern
Food Corporation (Vinafood 2).
NFA plans to spend
US$235 million on the contract, meaning the highest price would be around
US$470 per ton.
Huynh The Nang,
general director of Vinafood 2, said this price is US$10 per ton lower than
the current level on the domestic market.
Nang said domestic
rice prices have increased in recent times due to an undersupply while demand
has surged given the high volume of rice contracted. Local firms need about
two million tons for delivery.
However, Duong Van
Men, a rice trader in the Mekong Delta province of Dong Thap, said local
exporters are buying 5% broken rice for export at VND9.2-9.3 million per ton,
or US$438-443. Therefore, exporters can still make some profit if the
FrieslandCampina
Vietnam funds cow bank project
FrieslandCampina
The project
benefited farmers in the northern provinces of Son La and Thanh Hoa over the
weekend, with each household given one cow worth VND10 million. If the cow
gives birth to a calf, the family will raise that calf for about six to
twelve months before returning the mother cow to the Red Cross Society to
lend this cow to another household in need of help.
FrieslandCampina
After nearly four
years of existence, the project has aided more than 7,000 poor households.
The project is aimed to support at least 1,000 more families around the
country.
Study for
3rd power plant in Hau Giang underway
Korea Electric
Power Corporation (KEPCO) and VINAKONALT Co.Ltd are conducting a feasibility study
and analysis for a third coal-fired power plant in Hau Giang province –Song
Hau 3.
At a meeting with
representatives from the two businesses on August 19, Tran Cong Chanh, Hau
Giang provincial People’s Committee Chairman provided information on incentives
the province would offer, should the project move forward, pledging the full
support and backing of the Committee.
Spanning 107
hectares, the proposed coal-fired power plant has two turbine generators and
a total design capacity of 2,000 MW.
Currently, Hau
Giang has attracted a number of the country’s largest-scale thermal power
plant projects including the 1,200 MW Song Hau 1 constructed at a total cost
of US$1.5 billion, and the 2,000MW Song Hau 2 (US$3.5 billion).
The three projects
are located in the Song Hau Power Complex situated in Phu Huu A industrial
cluster of Hau Giang’s Chau Thanh district.
Bright
future for Vietnam,
The Vietnamese
textile and garment sector, with its rapid and sustainable growth over recent
years, remains overly dependent on foreign raw materials, paying inordinately
higher prices than necessary.
Do Huu Huy, deputy
head of the Ministry of Industry and Trade's Africa and South West Asia
Market Department, also divulged most of the raw materials for the sector
originate in Africa and are sold to Vietnamese manufacturers through
intermediary French, Swiss and Indian wholesalers.
The garment and
textile sector would benefit tremendously by developing a direct
international supply chain with African nations, Huy says, thus eliminating
the extra cost of the middleman, resulting in increased price competitiveness
in the global marketplace.
A spokesperson for
the Ministry of Industry and Trade and Vietnam Cotton & Spinning
Association, echoing Huy’s views, disclosed the agency has been endeavouring
to strengthen trade promotion activities with African countries over the past
with a view towards ameliorating the situation and enhancing the sector’s
supply chain.
The spokesperson
cites a recent meeting held at the International Trade Centre (ITC) for
Vietnamese manufacturers and its partners from eastern and southern African
countries as a specific example. Numerous prospects for increased
direct trade between the two sides were opened up at the meeting that will
benefit the industry in the coming time.
Marco Charles
Mtunga, acting Managing Director of Tanzanian Cotton Board in turn said that
the association is working with ITC to implement better management measures
related to cotton contamination. Along this line, the association will be
offering training courses for farmers and cotton processing factories aiming
to improve the quality of cotton in the future.
According to
General Department of Customs, in the first seven months of this year, cotton
imports surged 34% in volume and 36.3% in value on-year to a record 458,000
tonnes valued at US$919 million.
According to the
Vietnam Cotton and Spinning Association (VCOSA), the industry currently has
5.1 million spindles with production capacity of about 700,000 tonnes of
fibres per year.
VCOSA General
Secretary Nguyen Hong Giang said that the Trans-Pacific Partnership Agreement
(TPP)’s origin requirement for “yarn forward” would create favourable
conditions for exponential growth in the global marketplace for Vietnamese
manufacturers.
With the expansive
prospects created by the TTP and the momentum for the development of a direct
supply chain for raw materials with African partners, the prospects for
continued rapid and sustainable growth in the garment and textile sector
remain bright.
Firms urged
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 Vietnam News
that since his country lacks a young population it needs to cooperate 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
organised by VCCI and attended by over 100 of companies.
RoK group
interested in Hau Giang’s thermal power plant
The Korea Electric
Power Corporation (KEPCO) has showed its interests in procedures of
investment in the Song Hau 3 thermal power plant, a major project in the
Mekong Delta
At a working
session with KEPCO representatives on August 19, Chairman of the provincial
People’s Committee Tran Cong Chanh pledged to provide the best possible
conditions for the investors in the project.
The two-turbine
plant, fueled by coal, will have a capacity of 1,200 MW. It is set to cover
57ha in the Phu Huu A concentrated industrial complex in Chau Thanh district.
Several major
thermal power plants are under construction in Hau Giang province, including
the 1,200 MW Song Hau 1 and the 2,000 MW Song Hau 2.
The three projects
are part of the Song Hau Power Centre spreading over 360ha in Chau Thanh
district, which was approved by the Government.
International
organisations and the Vietnamese government have urged firms to comply with
copyright laws to avoid risks of having data stolen and having their
reputation destroyed if legal actions are taken against them.
Licensed software
is highly beneficial to businesses, Dao Anh Tuan, representative of BSA | The
Software Alliance in
As the cost of
computer software only takes up 5-6 per cent of individual companies’
expenditures, Tuan believes that such cost is not that large compared to the
cost incurred to deal with any problems or risks of using unlicensed
software.
Despite having been
profusely warned, many companies, including wholly foreign-owned enterprises,
continue to ignore these risks, as shown by a recent series of audits and
spot checks nationwide carried out by the Ministry of Culture, Sports and
Tourism (MoCST).
Following the first
software piracy lawsuit early this year, penalising computer software
ownership violations has been more encouraged by the
“Any intellectual
property disputes should be solved at court as assets are involved,” Vu Xuan
Thanh, the MoCST’s chief inspector said. Thanh personally encouraged
companies to take legal proceedings, believing that this is the most
effective and vigorous way to see to these problems, and it is also the way
to be.
Vu Ngoc Hoan,
acting head of the Copyright Office of Vietnam, agreed, saying that in parallel
to law education, strong actions would be needed. Hoan encouraged copyright
owners to refer any infringements of their products to the civil court to
seek resolution and recovery of losses caused by the perpetrators.
Phu Yen
Beer buy-out deepens
According to an
announcement issued by Masan, Orchid Consultant Company Limited, a subsidiary
of Masan Group, has acquired 100 per cent of Lamka One Member Company
Limited, which holds a 99.99 per cent stake in Phu Yen Beer and Beverage
Joint Stock Company.
Orchid Consultant
will be renamed Masan Brewery.
Phu Yen is a small
beer company, but offers
In a previous move,
Masan Consumer, another subsidiary of the group, acquired a 53.2 per cent
stake in Vinacafe Bien Hoa and 63.5 per cent of Vinh Hao Mineral Water.
However, unlike Phu
Yen Beer and Beverage Joint Stock Company, Vinh Hao had a more than 80-year
history and was a dominant mineral water retailer in both south and central
Group chairman
Nguyen Dang Quang announced on August 13 that Masan Group will increase its
chartered capital from VND7.349 trillion to VND7.358 trillion ($349.95
million to $350.38 million), after it issued additional shares in July this
year.
After more than 10
years operating,
Masan Group is
based in
Lightbridge has
become the first American company to invest in
The company
announced last week that it entered a memorandum of understanding (MoU) with
the Vietnam Agency for Radiation and Nuclear Safety (VARANS) that calls for
both parties to collaborate in the continued development of administrative,
legal and regulatory infrastructure to support
Lightbridge is a
leading innovator of next generation nuclear fuel designs and a provider of
nuclear energy consulting services to commercial and governmental
organisations.
The MoU came after
the US Senate’s Foreign Relations Committee approved an agreement on civilian
nuclear co-operation between the
“This understanding
recognises Lightbridge’s global expertise in developing effective support
infrastructure for non-proliferative, commercial nuclear energy programmes
and is another important step in Vietnam’s drive to deliver clean, safe,
affordable nuclear energy to support the nation’s economic growth,” said Seth
Grae, Lightbridge president and CEO.
He added that the
understanding provides a framework for Lightbridge’s advisory service team to
support VARANS under specific tasks, as VARANS seeks to implement best
practices in nuclear regulations, licensing, inspection, as well as education
and training activities.
To ensure energy
security,
The Vietnamese
government estimated nuclear power would eventually account for 10 per cent
of the country’s total power generation capacity. Nuclear power plants will
be built at eight locations in five
The government is
currently preparing for the construction of four reactors at two plants in
Ninh Thuan that are expected to come on line later this decade. Russian and
Japanese contractors will be building the two plants under turnkey
contracts.
However, with the
plan to build 14 reactors over the next two decades,
An overly
complicated and lengthy approval process has forced Australian mining company
Atlantic Ltd to exit an aluminium supply chain project in the Central
Highlands, after two years conducting studies and waiting for the government
go-ahead.
In Atlantic’s
quarterly report released two weeks ago, the company announced it had
“completed the process of closing its
The Australian
mining company explained that since 2012, it had worked in close
collaboration with
Late last year
But
“Given the lack of
progress to date and the current financial position of the company, the board
decided to cease further expenditure on its
Terry Bourke,
general counsel at
In 2012 Atlantic
signed a memorandum of understanding (MOU) with the state-owned Vietnam
Natural Resources and Environment Corporation (T-MV) for the development of a
major rail, mine, processing and port project in the
Atlantic believed
this was a strong business opportunity given Vietnam’s competitive advantages
in the aluminium supply chain, including the highly-sought gibbsite ore
typically found in the Central Highlands region, and the proximity of the
project to major world demand centres, where there is an over capacity of
refining and smelting capacity, but an undersupply of high-quality bauxite.
T-MV and
Additionally, if
the Vietnamese government approved Atlantic’s proposal, the company was ready
to invest in two aluminium projects in Nhan Co and Tan Rai in the
Freight
surcharges worry enterprises
Enterprises are
seeking the cooperation of freight forwarders and the intervention of State
management to bring down current freight surcharge rates, which they find to
be too high.
Based on estimates
of the Viet Nam Association of Seafood Exporters and Producers, Viet Nam
Textile and Garment Association and Viet Nam Leather-Footwear-Handbag
Association, additional freight fees on Vietnamese imports and exports were
equivalent to 1 per cent of the country's total's export turnover, or around
US$110 million to $150 million each year.
At least 10 kinds of
surcharges were being applied to imports and exports, such as the terminal
handling charge, container imbalance surcharge and port congestion surcharge.
These additional
freight fees have soared by around 20 to 30 per cent over those charged last
year and were imposed without warning, the associations' officials said. The
fees have placed a heavy burden on import and export enterprises, the
associations' officials added.
Shipping companies
say the surcharges are being imposed in line with international practice, but
enterprises find this explanation unacceptable.
At a meeting with
the Viet Nam Competition Authority under the Ministry of Industry and Trade
last week, the associations' officials said some surcharges were unreasonable
and were increased without warning. Enterprises had no other choice but to
pay the surcharges to ensure the delivery of their goods.
At a meeting with
logistics companies two weeks ago, a representative of the Viet Nam Port
Association said the State management of maritime transport remained weak. As
a result, the market is mostly controlled by foreign shipping companies.
The Vietnam
Economic Times quoted the Viet Nam Maritime Administration (VMA) as saying
that currently, there was a lack of mechanisms for the State management of
freight surcharges, though the problem had been previously reported to the
Government.
The VMA urged
concerned authorities, including the Ministries of Finance, Industry and
Trade, and Transport, to jointly supervise the collection of freight
surcharges to ensure compliance with
The associations
called on the State management to help maintain a healthy and competitive
business enviroment by ensuring the imposition of transparent and reasonable
ocean freight fees, which were essential to boosting the competitiveness of
Vietnamese products.
More
Japanese firms seek business opportunities in Vietnam
More Japanese
enterprises have come to Ho Chi Minh City this year to sound out business
prospects, a local newspaper quoted Vice Chairman of the HCM City People’
Committee Hua Ngoc Thuan as saying.
According to the
Saigon Times Daily, Thuan said in the year to date, many delegations of
senior Japanese officials have visited
Japanese companies
have invested in 668 projects in
“The numbers will
increase as many big firms of
The first
Vietnam-Japan industrial park will come online in the city in late October
this year and the city government wants to call for Japanese firms to invest
in high-tech and supporting industries, Thuan said.
At the meeting,
Hiroshi introduced some enterprises and university presidents accompanying
him to
A survey announced
by the Japan External Trade Organization (JETRO) earlier this year showed 70
percent of Japanese investors said they want to expand their operations in
According to the
Daily, Atsusuke Kawada, head of the JETRO office in
Dr. Truong Quoc
Cuong, Head of Vietnam Drug Administration has ordered departments of health
to keep close watch on drug quality after Sai Gon Giai Phong released an
article “Difficulties on controlling medication quality" on August 18.
The Vietnam Drug Administration
under of the Ministry of Health said that it has discovered some batches of
medicine that fail to meet the quality standard.
In order to supply
drugs to hospitals nationwide, the drug administration has asked drug
importers to assess the suppliers and producers to ensure the quality of
medication.
Drugs of these
pharmaceutical companies which had failed to meet the quality will be
completely rechecked. Any acts of not recalling or slow recalling substandard
drugs would be considered as violations and this will be fined as per the
country’s current regulation, said Dr Cuong.
Purchasing
power drops in traditional markets
Economic crisis
together with strong competitiveness from supermarkets, trade centers and
flea markets have resulted in a drop in purchasing power of traditional
markets in
This time in
previous years used to be peak trading time of An Dong Market in District 5.
10 a.m. on Tuesday morning, Saigon Giai Phong reporters found to have few
customers there.
A clothe seller
named Muoi said that purchasing power has kept dropping for the last several
years. This year it has been down 20 percent over last year.
Stall owner Diem My
who sells children clothes said earlier orders came from several provinces
and cities nationwide. However the order number and value have drastically
reduced for the last two years. The presence of retail customers has also
tailed off.
Similar condition
is found prevalent at other grade 1 markets like Binh Tay, Ben Thanh and Tan
Dinh. It is even worse in grade 2 and 3 markets.
Shoppers used to
stream to Pham Van Hai Market in Tan Binh District, where has been known for
diversified goods with competitive prices especially clothes and pork for the
last decade. At present, several stalls have to shut down.
The market has 815
business households with nearly 1,600 stalls. Tens of households have closed
down since early this year, according to the market’s management board.
Most stalls in the
new Van Thanh Market in Binh Thanh District have closed doors. Some of
the remaining ones are moderately operating.
Several traders at
An Dong and Ben Thanh have tried to improve their customer services but still
failed to push the purchasing power up.
According to a
market analyzer, traditional markets' competitiveness has been weaker because
of the expansion of modern trading modals. Customers have paid more attention
to food hygiene and safety, which is not well controlled at markets. Part of
traders still keeps their habit of overcharging and selling low-quality
products.
A number of markets
have downgraded without measures to repair and upgrade. Flea markets
and vendors are popular and convenient for several customers who don’t want
take time at parking lots.
According to HCMC
plan, the city will not build new markets any more but upgrade current ones'
infrastructures, improve food hygiene and safety there, and set up the
markets’ managers.
The Industry and
Trade Department has completed a project on implementation of a new market
modal this year, in which food hygiene and safety will be ensured.
Ben Thanh Market
and Hoc Mon Wholesale Market have been chosen for pilot implementation of the
project, said the department deputy head Le Thi Ngoc Dao.
Food safety will be
monitored and managed from the input to stalls, where products meeting
VietGap quality certificate will be available.
It is a difficult
project comprising several matters, especially traders’ habit change, said
Ms. Dao. However if relevant sides work together synchronously, it will be
useful for the markets to develop in a civilized and modern manner in
accordance with the economy’s common trend.
The city has also
worked in another project of building brand names for markets and their
traders. Three wholesale markets Thu Duc, Hoc Mon and Binh Dien have had
certificated brand names.
Vendors
told to leave
Saigon Trading
Group (Satra), the owner of Saigon Tax Trade Center in downtown HCMC, has
decided to close the shopping plaza on October 1 to build a skyscraper at the
premises, and has asked over 230 vendors there to move out no later than the
end of next month.
Meanwhile, shop
owners at
When the building
at 39 Le Loi Boulevard is demolished, Saigon Tax Trade Center’s vendors could
not continue business there as fencing erected around the metro construction
site will be close to the façade of the shopping center, meaning business is
impossible as customers cannot approach it.
Tran Sy Quy, head
of sales at the center, said the plan to rebuild the trade center was
approved by the city government a long time ago and now comes the execution
period.
As Metro Line No. 1
construction is underway, some 500 square meters of the
Earlier, Satra had
signed contracts to lease out space at
In addition, they
will be given priority to lease business space once the new building is
completed.
Until now, many
vendors in
At present, many
vendors at
Liberal
business environment yet to be established
Although Vietnam
has finished legal documents regulating business freedom since last year,
such a spirit has not been guaranteed in reality, experts said at a seminar
in Hanoi on August 20, as the Government is seeking to establish a liberal
business environment.
Nguyen Dinh Luc,
former head of the legislation department of the Party Central Committee
Office, commented that
It was provided for
in the first constitution in 1946 that Vietnamese citizens are guaranteed the
right to own assets they have from all sources, including from doing
business. The right was made clearer in the 2013 Constitution, which says all
Vietnamese citizens are allowed to do business in all sectors that are not
banned by law, he said.
However, the
regulations on business freedom themselves create difficulties for
individuals and enterprises in different ways.
Lawyer Truong Thanh
Duc said he cannot understand the real ‘substance’ of the legal system as
there are areas not banned by law but by sub-law documents.
He raised his
question as the Ministry of Planning and Investment these days has suggested
putting hundreds of business sectors in the list termed as conditional and
eight areas off-limits to businesses.
Dinh Xuan Thao,
head of the Institute for Legislation Study under the National Assembly
Standing Committee, noted that as regulated in the Constitution, only laws
can limit or ban enterprises from doing some business, while bylaws cannot do
that.
But in reality, it
is very difficult to meet all conditions to operate businesses that are not
prohibited. Among business sectors on the market, 110 sectors require
enterprises to get business licenses while 345 others require them to seek
the nod of authorities.
Vu Thi Hoa,
director of Hanoi-based Vinablock Co., Ltd, said the mechanism of registering
for business gets in the way of obtaining the right to do business of
enterprises.
The business
registration will create advantages for individuals and enterprises to enjoy
their right to do business in a free way if it is built with the aim to boost
economic growth.
But because it is
built to help State authorities easily manage enterprises, it contains many
different conditions and procedures so that enterprises have to depend much
on the authorities, she said.
On Tuesday, in
reviewing the Government’s regular meeting, Prime Minister Nguyen Tan Dung
required relevant ministries and departments to continue removing
unnescessary requirements from business registration procedures.
Source: VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
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Chủ Nhật, 24 tháng 8, 2014
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