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BUSINESS
IN BRIEF 30/8
Vinpearl
doles out 4 million USD for
Vinpearl JSC, a
subsidiary of Vingroup has been allowed to buy 85 billion VND (4.04 million
USD) worth of shares in Nha Trang Port JSC from the Vietnam National Shipping
Lines (Vinalines).
The company is
working with the
The port’s value is
assessed at 245 billion VND (11.6 million USD). More than 2.3 percent of the
company’s chartered capital was offered to its employees and Trade Union
organisation, and 22.6 percent of chartered capital was put up for auction.
Investment
attraction far beyond expectations: HEPZA
The Export
Processing and Industrial Zone Authority (Hepza) on Tuesday announced the
total investment capital reached US$566.05 million as of August 19,
accounting for 103 percent of this year plan and up 48.28 percent over the
same period last year.
Hepza planned to
attract US$550 million investment capital this year and the number has gone
beyond the plan for four months.
Foreign direct
investment totaled US$286 million, up 0.56 percent over the same period last
year. Domestic sector invested VND5,892 billion (US$280.11 million), 188
percent year on year increase.
Experts forecast M&A surge in property sector
After a minor
upswing in the first half of the year, mergers and acquisitions (M&A) in
Statistics from the
Ministry of Planning and Investment showed that the country attracted $5.7
billion in disbursed FDI in the first half of the year, a 1 per cent increase
on-year.
FDI into the
property sector accounted for around 10 per cent of the total, mainly via
M&As, it noted.
Several M&As
have been reported recently, such as the Movenpick Saigon Hotel, Pico Plaza,
the Bay Water project, and Alma Resort.
As well as
foreign-invested M&As, local transactions have also been more widely
reported.
According to Su
Ngoc Khuong, associated director of investment at Savills
“Also, some
property developers have been eager to sell their projects to ease financial
burdens, while financially strong enterprises are looking to acquire projects
to take advantage of the improving market,” Khuong said.
As a result,
several M&A deals have been closed. The gradual completion of
infrastructure and roads in major metropolitan areas and satellite cities has
also made the property sector more attractive.
Real estate M&A
in
Another factor is
the pending Trans Pacific Partnership Agreement (TPP), which would support
the growth of the national economy and increase FDI inflows to
Khuong added that
the market has continued to see residential development projects changing
hands, and not only apartment, but also landed property and township
projects.
“Investors have a
big appetite for operating assets with stable yields and lower risks. Within
the hotel sector, fast rising tourist numbers, both domestic and
international, are the rationale behind investment in urban hotel projects
and also resorts. This is further supported by the rapid growth in the number
of direct international flights to multiple provincial airports,” Khuong
explained.
Interest from
Japanese and Korean investors, who have accounted for the majority of M&A
activities over the last two years, is expected to stay strong.
There is also
growing demand from Singaporean and Taiwanese groups for both residential and
commercial office buildings. There is likely to be continued activity in
these products over the coming months and into next year.
At the latest
conference on M&A activities in
Foreign experts at
the event forecasted that by that time the country may see $20 billion in
M&A transactions.
Apart from the TPP,
free trade agreements with the EU and
According to Deputy
Minister of Planning and Investment Nguyen Van Hieu, there is a strong growth
in the number of M&As in Vietnam, with the total value of deals reaching
$5 billion last year, compared to a mere $1 billion five years ago.
Can Tho,
Israeli Ambassador
to Vietnam Meirav Eilon made the proclamation at a working session with
Chairman of the Can Tho City People’s Committee Le Hung Dung on August 27.
The Israeli
diplomat emphasised that
“However thanks to
advances in agricultural science and technology, the nation overcame many of
the obstacles and, as a result, has benefited tremendously,” Ambassador Eilon
said.
Eilon extended an
invitation to representatives from Can Tho to attend an international
scientific and technological conference hosted by
He said the Israeli
Government has plans to exchange students and trainees between its
universities and Can Tho University and Can Tho College of Engineering
Technology. It is also set to organise hi-tech agriculture conferences
in Can Tho.
For his part, Dung
introduced the city’s socio-economic situation and its advantages saying the
city is specifically seeking investment in hi-tech agriculture, human
resource training, health care, water management and use.
He affirmed that
Can Tho will create the best possible conditions in terms of administration
procedures and infrastructure and offer incentives for Israeli businesses
investing in the city.
FDI
disbursements surge 45% in eight months
In the first of eight
months of the year disbursements of foreign direct investment (FDI) surged
45% on-year to US$7.9 billion, according to the General Statistics Office
(GSO).
Since last August
the number of newly registered FDI projects in
During the same
period, 349 existing FDI projects licensed supplementary investment capital
of US$2.3 billion.
FDI projects were
licensed in 45 provinces and cities across the country. Bac Ninh province led
the country in FDI attraction, followed by
The
IATA
forecasts rapid growth of aviation sector
The aviation sector
of
The information was
released by International Air Transport Association (IATA) Director General
and CEO Tony Tyler at a conference on the occasion of Aviation Day on August
27.
He said that
aviation is the country’s strategic economic sector that need proper
attention from Vietnamese functional agencies.
Currently, the
aviation industry contributes on average US$6 billion to the country’s gross
domestic product (GDP) and generates 230,000 jobs.
In the 2008-2013
period, the number of tourists using Vietnamese air routes nearly doubled.
Thai garment firms seek opportunities in HCM City
Thai trade and
investment promotion agencies are actively implementing an array of
programmes to connect businesses and support them in seeking business
investment opportunities in
These activities
are seen as preparations for future opportunities after the establishment of
an ASEAN Economic Community (AEC) in 2015, Thai Consul General Malinee
Harnboonsong told an exchange between Vietnamese and Thai garment businesses
in
Bilateral trade
relations have seen strong development in recent years with two-way trade
turnover reaching nearly US$9.5 billion last year and nearly US$5 billion in
the first half of this year.
Many Thai
businesses highly appreciated the Vietnamese market’s potential and long-term
cooperative opportunities with Vietnamese partners, she said.
Thai businesses,
through the exchange, want to introduce prime quality products and services
to distributors and agents to enable Vietnamese customers be in favour of
Thai products, Malinee said.
A Thaiwahknit Wear
Co representative said the company is keen to expand business in
According to the
Ministry of Industry and Trade, bilateral garment trade turnover reached
US$160 million in the first half of this year, including US$20 million from
Nguyen Van Tuan
from the Vietnam Chamber of Commerce and Industry (VCCI)’s branch in
Recently, the city
diversified its products on offer in an attempt to draw in more visitors. In
addition to
A number of the
tours on offer are organised in cooperation with other localities with a high
potential for tourism development, such as Ben Tre, Tien Giang, Can Tho and
Phu Quoc.
These tours are
extremely popular with domestic and foreign visitors.
The tours enable
holiday-makers to gain insight into the cultures and daily lives of the local
inhabitants through visiting historical sites and manufacturing sites for
traditional crafts and goods.
The city has been
working to develop the domestic tourism market through running promotions to
encourage Vietnamese people to travel within the country. Concurrently,
The city has
identified a range of target tourism markets for the near future, including
Northeast Asian and Southeast Asian nations, Western European nations, the
Along with the
improvement of tourism products and infrastructure, the city is planning a
series of cultural and sports events as well as promoting the programme “HCM
City – 100 interesting facts”, which aims to further introduce the city’s
sights and attractions to tourists.
The 10th
International Travel Expo 2014 (ITE HCMC 2014) will take place in the city
from September 11-13, which aims to promote the tourism industry in the
Mekong Sub-region whilst also creating the opportunity for businesses to expand
their markets further.
To diversify the
types of tourism in anticipation of increasing numbers of tourists, the city
developed a plan to boost waterway tourism from 2013-2015, and a vision for
2020.
In the first five
months of 2014, the city welcomed approximately 1.8 million international
tourists, which marks a 9.7 percent rise compared to the same period in 2013.
The majority of
visitors were from
A growing
economy needs strong support industry
Manufacturing is
truly the backbone of
The support
industry is the decisive factor in developing and enhancing the nation’s
competitiveness in terms of price, quality and timeliness of production.
Without a well developed support industry, sustainability is little more than
an elusive dream.
However, it is no
easy task to develop the support industry as
Over the past
decade, many foreign firms have either failed or refused to make good on
their commitments to back the development of
The fact is that
the number of domestic businesses in the support industry remains
inadequately low, resulting in the industry failing to reach its set targets
and woefully out of alignment with the Vietnamese government’s commitments
contemplated when joining the World Trade Organisation (WTO) and the ASEAN
Free Trade Area (AFTA).
It’s difficult, if
not impossible, to get a solid handle and pin down exactly the causes of all
the inconsistencies between commitments made by multinational groups and the
resultant reality.
On the one hand,
multinational companies may have tried in earnest to fulfil their commitments
to develop the support industry but failed.
However, on the
other hand, they may not have negotiated in good faith or even tried to
realise their commitments and the deal they struck with the Vietnamese
government may have simply been tactical gamesmanship.
Despite the
shortcomings, the industry should not be dissuaded from accomplishing its
targets, and developing it is pivotal to propelling economic growth forward.
Yet, efficiently
developing the industry is still a thorny issue in
Another challenge
results from shortcomings in macroeconomic management over the past decade. A
real estate market that has attracted a huge amount of resources and a stock
market in its infancy have negatively impacted the whole national economy.
In such a context,
The country needs
to concentrate its attention on producing high added value products and
reducing production costs to take part in the global supply chain – an uphill
task to struggle.
Last but not least,
Vietnamese businesses in the support industry must improve their management
capacity and competitiveness to stand firm on the world market. As most of
them (about 97%) are small and medium sized, they should take a path of
cooperating with foreign firms.
If support industry
firms cooperate with foreign businesses to supply products to big
multinational groups, their odds of success will be greatly enhanced as they
are not in a position yet to compete directly with the giants. They will also
benefit from the more experienced foreign firms that will lead to greater
future prosperity.
Industrial
production maintains upward trend
The index of
industrial production (IIP) for August picked up 6.7% on-year due to an
upturn in consumption, bringing an 8-month IIP to 6.3%, the General
Statistics Office (GSO) announced.
In eight months,
the manufacturing and processing sectors achieved a growth rate of 8.1%, and
the power generation and distribution sector rose 11.2%, according to a GSO
report.
Several industries
attaining high IIPs included electronics, computers and optics production (up
34.5%), automobile manufacturing (up 20.2), and leather making (up 20.2%).
The GSO report
shows the consumption of manufactured and processed products recovered in
July, rising 2.7% over the previous month and 9.2% compared to the same
period last year.
In the seven-month
period, electronics, computers and fibre optical products obtained the
highest sales growth of 33.9%, closely followed by leather products (22.2%),
and automobiles (15.9%).
However, as of
August 1, 2014, the inventory index of the manufacturing and processing
sectors rose 13.4% over the same period of 2013. Major industries showing
higher levels of inventory included paper production (54.1%), costume making
(46.1%), and manufacturing of means of transport (42.6%).
The Australian
Government hosted a forum for partners from across the region on “ASEAN
Integration and Women’s Economic Empowerment in the Mekong” in
The forum focuses
on how women can reach their full economic and social potential. It is also
an important channel of discussion between multiple stakeholders to ensure
women get the most out of economic development in the context of ASEAN
integration.
The Mekong region
is becoming more interconnected, and opportunities to examine issues from a
regional perspective are very important, said Australian Ambassador to
He hopes the forum
will help devise innovative solutions to critical regional development
issues.
ASEAN integration
can be a huge boost for women’s economic participation. However, gaps caused
by gender inequality such as access to finance, business skills and markets
can slow down economic growth. The United Nations has valued the ‘gap’ caused
by women ‘missing’ economic participation at US$89 billion in the Asia
Pacific each year.
Women can encounter
multiple barriers such as unequal laws, inability to meet collateral
requirements due to lack of property ownership, harassment in the public
sphere, and insufficient business knowledge, capacity and financial literacy.
Women also face both direct and indirect discrimination because of gender
stereotyping. Traditional beliefs which undervalue women’s capacities and
potential are an invisible barrier to their participation.
"Gender
Equality" is not only an obligation towards collecting accurate
development statistics, but rather a sensible opportunity, as the benefits of
including women will pay off with tangible value added in the long term, said
Cambodian Minister for Women’s Affairs, Ing Khanthaphavy.
In the context of
many social prejudices, the role of women can be enhanced and gender equality
achieved only when women are empowered in economic, political and social
spheres, said Le Kim Dung, Director General of the International Cooperation
Department of Vietnam’s Ministry of Labour, Invalids and Social Affairs. “As
part of a general ASEAN trend,
The forum is also
an opportunity for participants to share their experiences as women social
leaders and entrepreneurs from all sectors, including civil society,
academia, the private sector and business associations.
More
industrial parks licensed in HCM City
The HCM City Export
Processing Zones Authority has issued licences for two new industrial parks
in the city.
They are the 99ha
Cu Chi Auto Mechanism IP to be built by the Hoa Phu JSC in Cu Chi District's
Hoa Phu Commune and the 320ha Le Minh Xuan IP No 2 in Binh Chanh District's
Le Minh Xuan Commune.
HEPZA said
necessary formalities have been completed for licensing the 300ha Le Minh
Xuan IP No 3 to be developed by Sai Gon Investment VRG Co.
Meanwhile, the
Government has decided to scrap the 114ha Phu Huu IP from a list of
industrial parks to be developed by 2015.
The Tan Tao IP will
be reduced from a proposed 175.57ha to 161.35ha while its expansion plan will
be reduced from 204.58ha to 182.55ha.
The Phong Phu IP
will be reduced from 148.4ha to 134ha, with half the area becoming a
technology complex.
SBV battles to control bad debts
Total funds
provided to cover any risk reached VND77.3 trillion (US$3.6 billion) by the
end of June, up 10.9 per cent over the 2013-end figure. If the funds are put
to use, the entire bad debt ratio will fall to 2.2 per cent.
Deputy Chief
Inspector of State Bank of Viet Nam's Dao Quoc Tinh told Dau Tu Chung Khoan
(Securities Investment) that by the end of June, total bad debts stood at
VND160.94 trillion ($7.6 billion).
The Vietnamese
commercial banks' bad debt ratio rose to 4.84 per cent by late June 2014, up
from 3.61 per cent in late 2013.
"Risk
provisioning at credit institutions is on the rise. Thus, the issue of bad
debt is under control and not worth worrying," Tinh said.
Nguyen Hoang Minh,
deputy director of the State Bank of
In
Commenting on the
rise in instances of "potentially irrecoverable debts" during the
first half of the year, Tinh said that among the reasons was complicated and
time-consuming handling of collateral, and a rather dull property market.
However, he said
that the system was trying its best to control and handle potentially
irrecoverable debts by ramping up risk provision funds.
"I think bad
debts increase through the year and will be falling by the end of the
year," Tinh said.
Several small
Vietnamese banks posted losses in Q2 after setting aside risk provision funds
to mitigate any risks and push ahead with restructuring.
Thoi Bao Ngan Hang
newspaper (Banking Times), a unit of the State Bank of
The bank had to put
all its profits into risk provision funds because the total overdue debts
reached VND1.7 trillion ($80 million) as of June 30, equivalent to 12 per
cent of the total outstanding loans.
In the first half
of this year, National Citizen Bank, till recently known as Navibank, gained
VND598 billion ($28.2 million) in pre-tax profits, up 26 per cent when
compared to the same period last year. After risk provisioning, profits came
down to VND3.76 billion ($177,400).
VietA Bank spent
VND600 billion ($28 million) on risk provisioning by the end of June, leaving
its Q2 profit thin at VND150 billion ($7 million), down 12.8 per cent over
the same period last year.
According to Thoi
Bao Kinh Doanh (Business Times), An Binh Bank's Q2 financial report showed
that the bank increased risk fund provision by ten times in H1 this year to
VND107.64 billion ($5.1 million), from VND11.54 billion ($540,340) in H1 last
year.
The large risk
funds trimmed An Binh's pre-tax profits in H1 by 80 per cent to VND170.35
billion ($7.997 million), down from VND214.36 billion ($10.06 million) during
the same period last year.
Vietcombank, one of
the country's four largest banks on the basis of assets, spent half of its
pre-tax profits, equivalent to VND2.4 trillion ($108.6 million), to build
risk provision funds in the first six months of this year.
VIB transferred 75
per cent of pre-tax profits, or VND447 billion ($21 million), to risk funds
in H1.
Experts said that
the motivation behind the banks' moves toward risk provisioning was to
prepare themselves better before the new debt regulations in Circular No
09/2014/TT-NHNN issued by the central bank are officially implemented.
The circular dealing
with classification of bank assets, setting up risk provisions, and the way
provisions against credit risks are to be deployed will force an increase in
risk provisioning. The document will also allow banks to continue
restructuring existing loans and retain them in the same debt group until
April 01, 2015, instead of reclassifying them by using more rigorous
standards by June 1, 2014, as planned previously.
SBV keeps
deposit interest rate steady
The State Bank of
Hong made the
statement in response to the recent public expectation of a deposit interest
rate adjustment, following a 0.2 percentage point cut in interest rates to
4.8 to 4.5 per cent for one-month deposits at the two biggest banks by
assets, Vietcombank and BIDV.
At Vietcombank, the
rates for two – to nine-month term deposits have been cut by 0.2 percentage
point to 5 to 5.7 per cent, and to 6.8 per cent for terms of 24 to 60 months.
Experts saw the cut
as a boost for increasing the benefit margins for banks, not necessarily
reflecting a new trend of the system.
Hai Phong greenlights two FDI projects
The management
board of the Hai Phong economic zone has granted licences for two foreign
direct investment (FDI) projects.
Of those, the
Korean insurer to open branch in capital
The Ministry of
Finance has issued a licence to Seoul Guarantee Insurance to open a branch in
Ha Noi.
The South Korean
company, established in 1969, set up a representative office in
It has been
providing guarantee services through reinsurance companies to South Korean
companies and individuals in
It had applied for
the licence last year and will open the branch in October.
The company's chairman,
Byung Ki Kim, said guarantee insurance is a good financial tool to address
business risks and plays an important role in developing a economy.
Representatives of
a number of big Thai companies attended the meeting, including producers of
spare and automobile parts; oil and lubricants; automated machinery; and
electrical and laser equipment.
The meeting aimed
to provide Thai businesses with a better understanding of the Vietnamese
business environment and create opportunities for businesses from both
countries to network and collaborate, said Pham Quang Thinh, Deputy Director
of International Relation Department of Vietnam Chamber of Commerce and
Industry (VCCI).
Bilateral trade
between
Meanwhile,
Gov’t
introduces tax relaxation measures
The Government will
extend time for paying value added tax (VAT) for machines and equipment
imported by businesses to create fixed assets to 60 days.
The imported
machines and equipment must total VND100 billion or above.
VAT refunds shall
be completed within five working days after tax agencies receive businesses’
valid documents requesting for the tax returns.
For real estate
transfer, individuals shall be allowed to select one of the two ways for tax
payment. They can pay 25% of the total income per each transfer or 2% of the
selling price per each transfer.
Regarding
securities transfer, individuals shall pay 20% of their annual income or 0.1%
of the selling price per each transfer.
Tax payers with
total revenues from VND 50 billion/year shall make tax declaration on the
quarterly basis.
The Government also
proposed tax relaxation measures which will be submitted to the eight
session of the National Assembly for approval in October this year.
Specifically, a
project capitalized at least VND 12 trillion and disbursed within five
years since receiving investment certificate may be considered for a
preferential tax rate of 10% for 15 years, four-year corporate income tax
exemption, and 50% corporate income tax reduction for the next consecutive
years.
A 20% corporate
income tax rate may be applied for agriculture enterprises employing over 300
regular laborers in 2014 and 2015. Since January 1, 2016, tax rate may be
lowered to 17%./.
Company
bankruptcies on the increase
Between January and
August of this year, about 44,500 companies in
Between January and
August of this year, about 44,500 companies in
Of the total, there
were 6,400 companies that went bankrupt and 7,600 that have temporarily
halted operations. The rest have permanently closed their doors and have not
renewed their tax codes.
The areas of arts
and entertainment, agri-forestry and fisheries, real estate and IT have been
hardest hit. But the wholesale, retail, tourism and construction sectors have
also been adversely affected.
The department also
reported that
Between January and
August of this year, 47,500 companies were licensed, with a total registered
capital of VND289.8 trillion (USD13.9 billion), down 9.5% in the numbers, but
up 14.2% in the capital value against the same period last year.
The average capital
of a company is estimated at VND6.1 billion (USD285,714), up 26% from the
year before. Still, newly-licensed companies are estimated to have generated
more than 700,000 jobs, up 1% on-year.
In the first eight
months of the year, 10,900 companies resumed operations after a temporary
halt, up 2.6% against from last year's figures.
Despite being an
agricultural country,
A report by the
Ministry of Agriculture and Rural Development (MARD)’s Animal Husbandry
Department showed that
Even though the
importation of chickens for breeding fell by about one percent in value over
the same period, the industry in
Apart from breeding
animals, the country also spends billions of USD every year on importing
animal feed. During the first seven months of the year,
Animal feed
imports, most of which come from
Even though the
country is trying to foster its own husbandry and meat production industry,
nearly two tonnes of pork were imported so far this year, an increase of
9.4%. Chicken imports increased by 20.7%.
Hoang Thanh Van,
director of the Animal Husbandry Department, explained that this trend is to
be expected because
“
In order to
increase the competitiveness of the animal husbandry industry, the minister
of Agriculture and Rural Development has urged relevant authorities to be
more innovative in their ways of thinking to increase productivity, raise
production values and increase the incomes of farmers.
“In the future, we
expect that the trend for the production chain will continue to rely on the
international market," he added.
Nearly 11,000 recent enterprise revivals seen as sign of economic
recovery
Domestic production
and business activities are showing positive signs as the number of
un-operational enterprises resuming their operations has increased
considerably in the Jan-Aug period, according to the General Statistics
Office (GSO).
In the last
eight-month period, 10,900 enterprises have restored their operations, an
increase of 2.6% over the same period in 2013.
Notably, in August
alone, as many as 1,496 enterprises have come back into operation, up 35.2%
compared to last month. However, this month saw a decrease in the number of
newly-established enterprises and registered capital with 5,052 enterprises
and VND27.3 trillion, down 0.6% and 13.2% respectively when compared with
July.
In the Jan-Aug
period, 47,000 enterprises have been set up with a total registered capital
of VND289.8 trillion, down 9.5% in the number of enterprises established but
up 14.2% in registered capital against the corresponding period last year.
The average registered capital per enterprise was VND6.1 billion, a
year-on-year increase of 26.2%.
The report from the
GSO indicates that in the last eight months the electricity, water and gas
production and supply sectors were among the sectors displaying the most
positive economic signs as the number of newly-established enterprises went
up by 12.4% and the number of un-operational or dissolved enterprises fell by
27.9%.
In the meantime,
several sectors still face many difficulties such as the wholesale, retail,
automobile repair, tourism, job services sectors among others.
CII borrows
VND2.6 tril. to build water plant, expand road
HCMC Infrastructure
Investment Joint Stock Company (CII) on August 26 signed two contracts to
borrow VND2.65 trillion from the Vietnam Bank for Industry and Trade
(VietinBank) to build a water plant in the city and expand a road in
Specifically,
VND960 billion will be invested in Tan Hiep Water Plant No. 2 which is due to
start construction next month for completion in the first quarter of 2016.
Once completed, it can supply 300,000 cubic meters of clean water a day for
HCMC.
Truong Khac Hoanh,
deputy general director of CII, said the water plant project requires a total
cost of VND1,200 billion, to which CII contributes 43%, Saigon Water
Corporation (Sawaco) 25% and Refrigeration Electrical Engineering Corp. (REE)
32%.
Clean water from
the plant will be sold to Sawaco so that the company could supply residents
in HCMC’s Binh Chanh District and in the west of the city.
Currently, CII is
the investor of three water plants in the city, the other two being Thu Duc 3
and Kenh Dong.
The city’s water
demand is forecast to rise to nearly 2.8 million cubic meters per day in 2015
and 3.8 million cubic meters in 2025.
Water used in the
city is exploited from the Saigon River and Dau Tieng Reservoir with 0.95
million cubic meters per day, the Dong Nai River and Tri An Reservoir with
nearly 1.5 million cubic meters, and groundwater with nearly 0.5 million
cubic meters.
Meanwhile, the
remaining VND1,688 billion will be used for expanding a section of National
Highway 1 going through
Le Vu Hoang,
chairman of CII, said that his company will boost construction so that the
road can be completed at the end of 2015 when other sections of National
Highway 1 are also finished.
The project to
expand this 37-kilometer section under the build-operate-transfer (BOT)
format requires VND2,100 billion.
CII said it will
collect toll on the section for over 22 years to recoup the investment
capital.
Gov’t
approves VAT exemption for animal feed
The Government has
agreed with the Ministry of Finance’s suggestion to slash value added tax
(VAT) on animal feed to zero from the current 5% in order to support the
husbandry industry.
Most livestock
farmers have faced losses recently and the tax exemption will help them cut
input costs to generate profits, according to the Husbandry Association of
Dong Nai Province, which is home to the country’s biggest pig herd.
Chairman of the
association Nguyen Tri Cong said farmers have suffered great hardship due to
the high cost of animal feed along with falling prices of poutry and
livestock on the market.
Prices of materials
for animal feed such as corn and soybean have decreased on the global market
in the past time, so it is expected that prices of animal feed on the local
market will be stable in the coming time, Cong said.
According to the
Ministry of Agriculture and Rural Development,
The three biggest
suppliers in the period are
Corn is the major
imported ingredient during the period with 2.83 million tons worth US$734
million, increasing 2.3 times in volume and 1.8 times in value over the same
time last year.
Source: VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
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Thứ Sáu, 29 tháng 8, 2014
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