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BUSINESS
IN BRIEF 20/9
German
businesses heavily invest in Vietnam
German businesses
have invested in a cumulative total of 177 cooperation projects valued at
US$917.93 million, 52 joint venture projects at US$409.16 million with the
remaining projects implemented in the form of build-operate-transfer (BOT)
projects.
On the reverse
side, Vietnamese businesses have invested in 17 FDI projects in
German businesses
have invested a broad range of sectors including manufacturing, production,
water, electric and gas distribution, retail and wholesale, agro-forestry and
fisheries, wastewater treatment, finance and banking, insurance, and science
and technology.
5th Asian
Development Forum scheduled for
The fifth Asian Development
Forum (ADF-5) themed "Challenges and strategies towards sustained growth
of Asia" will be held in
The event will be
attended by representatives from international organizations such as the
International Monetary Fund (IMF), the Japan International Cooperation Agency
(JICA), the Office of the United Nations Development Programm (UNDP) in the
Asia Pacific region, and delegations from
The focus of the
forum will be on important issues related to institutional capacity and
infrastructure to improve productivity, innovation and economic
transformation, human resource development, encouraging enhanced productivity
and mobilization of financial resources for sustainable development.
Issues on the
development of the infrastructure networks to ensure the efficient shifting
of human resources and goods will also be debated based on the ADB Report.
Additionally,
delegates will also share their experiences and discuss on how to overcome
the middle income trap. Through the forum,
More than 2000
guests attended an energy efficiency exhibition entitled – Xperience
Efficiency (XEE) 2014 – on September 17-18, sponsored by Schneider Electric
at the International Convention Centre in
Within the
framework of the exhibition, more than 30 symposiums were held with domestic
and foreign experts in attendance. Additionally, 15 booths were set up to
introduce solutions for green energy management and new technology trends to
participants.
Attendees included
representatives of Ministry of Industry and Trade, French Embassy in
Schneider Electric
sponsored the event, in celebration of its 20th anniversary of operations in
Since 1994, the
company has strengthened its presence in
Vietnam
seeks business opportunities in RoK
A delegation from
the Vietnam Trade Promotion Agency (VIETTRADE) under the Ministry of Industry
and Trade will pay a working visit to the
The delegation will
organise a working session with the RoK-based Vietnam Trade Office and the
Korean Importers Association and visit local manufacturing enterprises.
During the five-day
study tour, the mission plans to attend the Korean Design Festival 2014 and
Food Week Korea 2014.
In recent years,
RoK has become a leading export market for
The
The NFA proposed
Japanese
businesses are bullish on Vietnam
A recent survey
conducted by the leading insurance agency Nissay of 4,285 companies from
across
The survey released
on September 17 reflects 45.8% of Japanese business firms say the economic
importance of Asia, especially
About 40.7% of the
respondents stated overall they believe Asia has high growth potential, 16.7%
others believe Asia is a key production base, while 12% others say
Around 14.2% of the
Japanese firms surveyed think that young people in
Vietnam
boosts tourism promotion in Russia
Thirty travel
operators, hoteliers, and Vietnam Airlines managers are attending an
international tourism fair Otdykh Leisure 2014 which opened
The four-day event
has attracted a large number of foreign travel enterprises from across the
world including Australia, Austria, Argentina, Belarus, Bulgaria, Germany,
Greece, Egypt, India, Spain, Italy, China, Thailand, the Philippines, the
United Arab Emirates, Serbia, Mexico, Norway, Japan, the Czech Republic,
Slovakia, France, and the US.
Vietnamese
representatives introduce to foreign visitors the country’s tourism potential
and beautiful landscape, popularise their services, and seek business
partners.
They organised a
seminar on Vietnam-Russia cooperation in the tourism sector on September 16
with the aim of attracting more Russian visitors to the Southeast Asian
nation.
Otdykh Leisure
Moscow is the largest international autumn trade fair for tourism in
The number of
Russians visiting
Russian
holiday-makers often prefer to stay in central and southern localities such
as Danang, Phu Yen, Lam Dong, Khanh Hoa, Binh Thuan, Ninh Thuan, and Ba
Ria-Vung Tau.
ExxonMobil
expands operation in
A senior ExxonMobil
executive has pledged to boost cooperation in the oil & gas industry with
The leading US oil
& gas company will work closely with relevant Vietnamese agencies to
implement agreements it has already signed with Vietnamese partners, said
Neal Goins, Vice Director of International Government Relations for Exxon
Mobil.
At a September 16
meeting with Nguyen Van Hoa, Vietnamese Consul General to
For his part, Hoa
appreciated ExxonMobil’s investment projects and charity activities in
Hoa introduced his
guest and other ExxonMobil executives on the development of the Consulate
General in
Firms
discuss winning consumer trust
Business executives
held a direct dialogue with national and international experts on how their
companies can win consumers' trust and boost their credibility in the market
at a forum held in
The issues they
discussed at the CSR (Corporate Social Responsibility) Calendar Forum on
Consumer Issues included making more Vietnamese select and trust local
products, surviving the harsh competition in the retail market, and building
a market where consumers trust producers.
The forum was held
as part of a new project called "From Global Compact to Local Impact! -
Promotion of CSR among Vietnamese Business Community for Sustainable
Consumption and Production (SCP)".
The project is a
joint initiative by the Office for Business Sustainable Development (SDforB)
of the Vietnam Chamber of Commerce and Industry (VCCI), the UN Industrial
Development Organisation, and the UN Environment Programme.
Funded by the UN
One Plan Fund, it aims for synergies with the EU-funded Switch Asia policy
module for the development of a national SCP action plan lead by UNEP as well
as with the UN Global Compact Vietnam Network under SDforB.
The CSR Calendar
Forum is engaging with the Association of Vietnam Retailers and Vietnam
Environmental Administration.
Other issues
discussed at length were CSR and SCP - Together for Responsible and
Sustainable Business, Draft national action plan on SCP and Environmental
policy to support SCP, Overview of new CSR Project and consumers' issues,
Sharing experiences on gaining consumers' trust in Vietnamese products, The
UN Global Compact as a way to improve the trust in enterprises.
"The CSR
Calendar Forum is a good chance for enterprises taking part in the badly
needed multi-stakeholder dialogues to better understand 6 core CSR subjects
based on principal documents such as ISO26000 and UN Global Compact,"
Nguyen Quang Vinh, director of SDforB, VCCI, said.
"Since 2007
Florian Beranek,
chief technical advisor of the project, said: "Multi-stakeholder
dialogues had become a kind of trademark CSR initiatives during the recently
concluded EU funded VCCI – UNIDO project on CSR that helped improve the
collective understanding of the needs, challenges, and business opportunities
associated with each of the core CSR subjects.
"Improved
social performance is expected to enhance competitiveness and trade
performance of the subject enterprises, reduce their environmental impact and
resource consumption and improve their relations with stakeholders, including
workers, communities, consumers and business partners."
Dinh Thi My Loan,
chairwoman of AVR, said: "Vietnamese enterprises are facing huge
challenges of competitiveness. According to the WTO roadmap commitment, from
January 11 next year foreign retailers are allowed to set up business with
100% foreign investment capital, replacing the 50 currently applied.
"Vietnam has
witnessed big names such as Lotte (Korea), AEON (Japan) entering the
distribution and retail market or planning for their participation in near
future like E-Mart (Korea), Takashimaya (Japan), Auchan (France).
"Hence, it is
necessary for Vietnamese businesses to improve their strategies if they want
to compete in the domestic market in the context of integration."
To help businesses
know more about CSR and to bridge international and national experts to
understand enterprises as well as consumers needs and demand, a workshop
titled "Gaining Consumers' Trust in Local Products and Services to
Support Sustainable Consumption and Production" was held in the
afternoon.
A similar event
will be held in
RoK deemed to be key tourism market of Vietnam
A forum opened in
This is part of
Vietnam Tourism and Culture Week held by the Vietnam Administration of
Tourism (VAT) in
At the opening
ceremony, Vietnamese Minister of Culture, Sports and Tourism Hoang Tuan Anh
highlighted the country’s tourism potential with rich and diverse ecosystems
and beautiful landscape. Specifically
Ambassador to the
RoK Pham Huu Chi said that Vietnam and the RoK have great potential for
promoting culture and tourism exchange, including golf tourism, and that if
there is close coordination among travel and aviation agents, hotels and golf
courses, tourism businesses of two countries will have cheap golf tours,
attracting more Koreans to Vietnam.
Chi urged relevant
Korean agencies to relax immigrant requirements, making it easier for more
Vietnamese people to visit the RoK.
At the forum,
representatives from Korean groups which are operating in the hospitality and
tourism industries in
Representatives
from Vietnamese businesses like Vietnam Airlines answered Korean partners’
questions relating to designing tours.
The RoK is the key
tourism market of
The RoK has ranked
second among countries with the highest number of visitors to
Pharma buy
opens path into Myanmar
Hau Giang
Pharmaceutical (DHG) will begin its expansion into
Hau Giang Pharma
plans to acquire 72.86 per cent of ASV Pharma, which will help the company
enter the
According to the
Association of Vietnamese Investors in
A representative
from Hau Giang Pharma told the financial information website vietstock.vn
that the company was still negotiating with its partner. It would announce
the results of market research in the fourth quarter.
The company is
pushing to improve the sale of over-the-counter drugs to cover the declining
revenue of prescription drugs due to the State's administrative policies.
It also plans to
invest more than VND52 billion ($2.4 million) in building warehouses in Ha
Noi, Nha Trang and
By the end of
August, Hau Giang Pharma had achieved 60 per cent of its VND3.88 trillion
($183 million) revenue target.
It closed
yesterday's trading at VND90,500 ($4.3) per share, sliding 1.5 per cent.
Industrial,
trade sector unveils whopping $102b growth target
The industry and
trade sector in 28 northern cities and provinces will strive to achieve an
index of industrial production (IIP) this year of VND2.17 quadrillion (over
US$102 billion).
If they achieve
their target, it would be a 22.5 per cent year-on-year increase.
The targets were
announced at the first conference of representatives from the industry and
trade sector from 28 localities in the north, held in the northern
Speaking at the
meeting, deputy minister of Industry and Trade Tran Tuan Anh said that the
conference was an opportunity for localities to share specific solutions to
develop the sector.
Anh said that the
provinces should continue to improve administrative procedures and facilitate
organisations and businesses in their production.
The cities and
provinces including Lao Cai, Ha Giang, Lang Son, Bac Giang, Thai Binh, Ha Noi
and Hai Phong set 12 specific solutions to meet the targets, focusing on
accelerating the construction of infrastructure projects and industrial
zones; enhancing the application of information and technology in resolving
administrative procedures; and strengthening the association among provinces.
Last year, the
sector saw a relatively high growth rate with an IIP of VND1.77 quadrillion
($83 b illion) , a 16 per cent increase over 2012.
In the first nine
months of this year, the IIP was estimated at VND1.42 quadrillion ($66
billion), meeting 70 per cent of the whole year's target and posting a nine
per cent year-on-year increase.
The total retail
and service turnover in 2013 reached VND883 trillion ($41 billion), 16 per
cent higher than in 2012.
The provinces'
total export turnover last year increased by 37 per cent to be more than $56
billion.
In the first nine
months of the year, the turnover was $45.87 billion, meeting 75 per cent of
the whole year's target.
AEC to
expand VN footwear sector
Vietnamese footwear
exports will enjoy zero tariff once the ASEAN Economic Community (AEC) is
established in late 2015, allowing producers to expand their markets and
access new materials.
ASEAN represents a
substantial footwear market for
AEC member states
will have a better chance to develop new materials, reducing their reliance
on imports and increasing the added value of the end products, she said.
Xuan added that the
countries are also expected to provide a steady supply of footwear and gain a
solid foothold in major markets such as the
However, Xuan
pointed out that competition will intensify once zero tariffs are applied and
that this trend was inevitable.
At the moment,
almost all AEC countries have set up technical barriers to protect their
domestic products, she added.
To strengthen the
sector, Minister of Industry and Trade Vu Huy Hoang called upon the Viet Nam
Textile and Garment Association and LEFASO to devise plans to develop support
industries.
According to
industry insiders, domestic firms should reinvent themselves by improving the
quality of their products and popularising their trademarks.
They are also
advised to prepare for the implementation of international agreements on
issues of intellectual property, consumer protection, small and medium-sized
enterprises, workforce quality and funding.
The relevant bodies
will update the business community on the opportunities and challenges ahead
once they are fully integrated into the AEC.
In the first eight
months of this year,
Dredger
sells for fraction of cost
The Ministry of
Transport said on Wednesday it was unfazed by the auction of dredging
equipment for one thirteenth of the original cost of VND7.18 billion
(US$346,000).
The equipment
brought VND562 million ($27,000) at auction in July, after eight years of
being in stand-by mode as an asset of the Viet Nam Inland Waterways
Administration No 1 (VIWA 1).
However, a
valuation by the Ha Noi-based International Valuation and Investment
Consultancy JSC. before the auction showed that the dredge was worth only
VND449 million ($21,600).
The VIWA 1 received
the equipment in September, 2006, in a project to dredge a part of the Lo
river running through the
After a few months
in use, the dredge and associated equipment were kept in storage until sold
at auction to Mua Xuan Transport Cooperative JSC.
"The equipment
was not used because its operation costs about twice that of other
machines," VIWA 1 director Tran Xuan Khoi told Giao Thong Van tai
(Transport) newspaper. "The dredging bridge was also not long enough to
reach the river bed".
The dredging bridge
was only three metres long while river depths ranged from five to 20 metres
following years of sand and gravel mining.
The Ministry of
Transport blamed the Shipbuilding Science and Technology Institute (SSTI), an
establishment under the Viet Nam Shipbuilding Industry Group (VINASHIN), for
using outdated river data to design the dredging machine.
The numbers the
institute used were from 1995-2002 when the Lo river was only about 1-1.3
metres deep in a dry season.
"The equipment
stayed in storage and there were no maintenance funds provided for it. This
quickly led to the decline of the equipment," said Khoi.
FDI
attraction policy in steel industry should be reconsidered, experts
Experts have said
that
Guang Lian - Dung
Quat steel mill project by Japanese Steel Corporation JFE was approved with
highest incentives in the province.
The project was
licensed in 2006 with the total capital of US$4.5 billion. The plant’s
designed capacity was seven million ton steel per year.
The investor has
disbursed only US$50 million for the plant. After eight years, it is still a
large empty land over 330.6 hectares spotted by some rows of houses for
workers.
The project enjoyed
highest incentives in land, rent, electricity and water prices as per
On the other hand,
the province has planned to revoke investment certificate of a seaport
project in the Dung Quat Economic Zone for construction of a port serving the
plant.
Quang Ngai
authorities have also proposed relevant agencies to provide the investor with
a lot of tax incentives.
However, JFE has
officially sent a document to authorized agencies, proposing them to consider
stopping the project.
The province
People’s Committee is expected to work with JFE to decide the steel mill’s
destiny on September 19, said Mr. Vo Tien Dung, deputy head of the Dung Quat
Economic Zone Management Board.
“The company can narrow
the plant’s scale if they want. In case they still want to withdraw, we might
have to revoke the project,” he said.
Earlier, the Indian
Tata Group asked for withdrawal from a US$5 billion steel project in Vung Ang
Economic Zone in the central
Professor and Dr.
Dang Dinh Dao, former head of the Economics Research and Development
Institute, said that
Authorized agencies
should map out a long term policy, which should approve projects producing
special steel for mechanical engineering or steel products for exports.
They should not
license en mass projects of construction steel and steel rolls and plates any
more, he said.
According to
another expert in the steel industry, local authorities should reconsider
providing highest incentives to lure investors, which is only suitable with
the first phase of FDI attraction in the steel industry.
At present, the
steel supply has far exceeded demand. FDI attraction policies should aim at
exports, he said.
Hau Giang
feather-backs receive PGI
The Department of
Science and Technology in the Mekong Delta province of Hau Giang has handed
over the Certificate of Protected Geographical Indication (PGI) of brand name
Hau Giang Feather-Back Fish issued by the Intellectual Property Bureau to the
province’s Office of Standards, Metrology and Quality.
Products from
feather-back fish of Hau Giang must be produced and processed in the province
and meet quality norms. For instance the fish fillets must be pure white and
firm.
The feather-back
fish is a well-known specialty of
The
Certificate of Protected Geographical Indication (PGI) will help feather-back
fish producers in both domestic and foreign markets, said chairman of the
province People’s Committee Tran Cong Chanh.
FPT
8-monthly revenues up 21 per cent
FPT Group's revenue
in the first eight months of this year reached VND21 trillion (US$988
million), increasing by 21 per cent compared to the same period last year and
representing 108 per cent of the group's eight-month revenue plan.
Pre-tax revenue
reached VND1.59 trillion ($75 million), 0.7 per cent lower than last year. Net
profit reached VND1.34 trillion (US$63.3 million), up one per cent.
The group's global
strategy continued to be successful. Turnover from foreign market reached
VND2 trillion ($95.7 million) in the eight-month period, a year-on-year
increase of 28 per cent.
Metro
starts programme to popularise VN products
Metro Cash &
Carry Viet Nam on Wednesday kicked off a campaign urging Vietnamese to
prioritise use of Vietnamese products at all its 19 outlets nation-wide.
The week-long
programme is targeted at professional customers like hotels, eateries, and
cafes, and offers discounts of up to 45 per cent.
"It is a
meaningful movement aimed at raising awareness of Vietnamese people about
consuming Vietnamese products and helping domestic businesses develop,"
Philippe Bacac, the wholesaler's general director, said.
Vietnamese products
had improved much in term of design and quality, he said.
Metro said it has
relationships with over 1,500 Vietnamese suppliers and offers customers over
25,000 products of which over 90 per cent are sourced in
YES Centre
signs staff deal with BPO company
The HCM City Youth
Vocational Training, Career Orientation and Employment Service Centre (YES
Centre) signed a co-operation agreement to provide human resources for Mat
Bao Business Process Outsourcing (BPO) as the company officially opened on
Tuesday.
The BPO model is a
development management solution becoming more popular worldwide, with total
turnover of US$132-162 billion from 2012-15.
The
The BPO model first
appeared in
There is
still much room for municipal bonds
With the first
issue of municipal bonds in 2003, Vietnam’s municipal bond market is still in
its infancy, but it is expected to become bustling as many localities are planning
to issue bonds this year, said an official.
Speaking to the
Daily, Phan Thi Thu Hien, deputy director of the Department of Banking and
Financial Institutions under the Ministry of Finance, said that municipal
bonds were issued for the first time in 2003. After over ten years, the
municipal bond market size has remained small, accounting for only 2.3% of
the entire bond market and 0.45% of gross domestic product (GDP), she added.
According to Hien,
six provinces and cities – HCMC,
This year,
Money earned from
selling bonds is added to the provincial State budgets and used to invest in
projects approved by the People’s Councils and the People’s Committees of
localities, Hien told the Daily.
The use of bond
capital is supervised annually by the People’s Council, the State Audit and
inspection agencies.
Regarding bond
payments, according to Hien, until now provinces and cities have paid
principal and interest sums to buyers on time, and no case of late payment or
insolvency has been reported so far.
The ministry has also
formulated a legal system for municipal bond issuance. To create liquidity
for the market, the ministry is drafting a new circular to replace Circular
81/2012/TT-BTC with some changes in issuing municipal bonds.
Under the draft
circular, provinces and cities have to provide information about each
issuance phase. Information has to be made available before and after
issuances and during the valid periods of municipal bonds to instill
confidence among investors in bonds issued by provinces and cities.
Currently, the
method of issuing bonds is regulated in Circular 17/2012/TT-BTC. However, the
Government bond market is large while the segment for municipal bonds is
small and limited, posing certain difficulties to provinces and cities when
issuing bonds as the people prefer the former.
Therefore, the
draft circular changes the issuance method to simplify procedures to suit the
small scale of localities.
Saudi
Aramco joins refinery project
In addition to Thai
firm PTT,
Man Ngoc Ly, head
of the Nhon Hoi Economic Zone Authority, told the Daily on September 11 that
PTT and Saudi Aramco would contribute 40% of the required investment each.
The project investor expects a Vietnamese partner to hold the remaining
interest.
PTT and the
government of
But concerns have
been eased after the participation of Saudi Aramco in the big-ticket project
was announced.
Ly said besides
capital contribution, Saudi Aramco is also in charge of supplying crude oil
for the refinery.
On Monday, PTT and
Saudi Aramco officially presented the feasibility study for the Nhon Hoi
refinery and petrochemical project to the Ministry of Industry and Trade.
According to the
pre-feasibility study released last year, the project in Nhon Hoi Economic
Zone would have a processing capacity of 660,000 barrels per day, equivalent
to 30 million tons of crude oil per year.
However, as
mentioned in the feasibility study, the capacity has been revised down to
440,000 barrels per day, or 20 million tons per year. The investor said the
downward adjustment aims to make the project more feasible.
PTT does not
request any credit guarantee but expects to enjoy the incentives the
Government has given to similar oil refining projects in
According to Ly,
the project is now only awaiting final approval from the Prime Minister.
After the
feasibility study was presented to the ministry, PTT, Saudi Aramco and
leaders of
Vinatex
giant buyers unveiled
According to a
source from the Vietnam National Textile and Garment Group, two strategic
investors just registered to buy up to 120 million shares, tantamount to 24
per cent of the state textile and garment giant.
The source revealed
that the two investors are local firms, Vietnam Investment Development Group
JSC (VID), a leading industrial zone developer, registered to buy 14 per cent
or 70 million shares and Vingroup, a leading property and retail developer,
registered to buy a 10 per cent stake, or 50 million shares.
Vinatex’s IPO is
planned for September 22 at the Ho Chi Minh Stock Exchange (HoSE).
The Vinatex IPO is
one of the most anticipated this month by investors amid a much faster
restructuring drive by the government and a resultant flurry of mergers and
acquisitions.
Vinatex’s public
offering has been delayed a number of times, it had previously planned to
hold the issue on July 22, but it was again pushed to this month to ensure
the company was fully prepared for the transition.
Ministry to
halve 50% PIT for employees, business owners at EZs
The Ministry of
Finance has issued a circular allowing for a 50% reduction in personal income
tax (PIT) for employees and business owners subject to this tax at economic
zones (EZs) from October 20 this year.
Circular 128
clarifies that the PIT cut will be applied to individuals who have signed
labor contracts with the management boards and State administering agencies
as well as owners of businesses at EZs. Those who have labor contracts with
employers outside EZs but have been assigned to work inside those zones will
also benefit from this tax reduction.
Individuals or
groups of individuals who have fixed addresses at EZs and run businesses in
the licensed areas in their business certificates at those zones will be
allowed to enjoy the tax incentive.
According to the
circular, the taxable incomes applicable to the tax reduction are the wage of
employees at EZs, and those of individuals and groups of individuals from business
operations among others at EZs.
VietinBank
borrows US$50 million from foreign lenders
The Vietnam Bank
for Industry and Trade (VietinBank) on September 10 inked a deal to borrow
US$50 million from four
The other lenders
are Mega International Commercial Bank, Far East National Bank and Hua Nam
Commercial Bank.
The syndicated loan
will help improve foreign currency liquidity at VietinBank to meet domestic
demand.
VietinBank general
director Le Duc Tho said the US$50-million deal will not only strengthen
cooperation between the local bank and the four lenders but also support
development of VietinBank and
Cathay United Bank
is wholly owned by
State-owned
power generation firm to go public
Power Generation
Corporation 3 (Genco 3), the biggest by capacity of the three Gencos under
Electricity of Vietnam, is going to be the first among them to go public as
part of the government’s plan to create a competitive power generation market.
Genco 3 shares are
not considered attractive. According to EVN’s analysis of the Gencos in
preparing for equitisation, in the 2014-2019 period they are projected to
have negative cash flow.
The firms have
trouble raising enough reciprocal capital to carry out already started
projects. Specifically, Genco 1 needs VND24.443 trillion ($1.16 billion),
Genco 2 VND5.284 trillion ($250.4 million) and Genco 3 VND39.652 trillion
($1.88 billion).
“The Gencos will
have to figure out a solution to this problem very soon,” said an EVN
official, who added that “After equitisation, EVN cannot guarantee 100 per
cent of the loans the Gencos take out the way it did back when the Gencos
were still limited subsidiaries of EVN.”
Genco 3 has a
capacity of 4,445 megawatts per year. In 2013 the firm earned consolidated
net profit of VND238 billion ($13.4 million) and consolidated revenue of
VND19.056 trillion ($903 million).
The Vietnamese
government has been preparing for the creation of a competitive power
generation market since 2005. In early 2014 Deputy Prime Minister Hoang Trung
Hai asked EVN to pick one Genco with relatively stable operations to equitise
within the 2014-2015 period.
PetroVietnam Power
Corporation (PV Power) and Vinacomin Power Holding Corporation Limited have
also been asked to develop their own equitisation plans.
Airport
service firm’s IPO only a week away
Southern Airport
Services Company (Sasco), a major seller of goods and services in Tan Son
Nhat airport, plans to offer 31,097,900 shares, or a 23.65 per cent stake, at
its IPO at an initial price of VND10,000(0.47 US cent)/share.
The public offering
is planned for September 18, reported Doan Thi Mai Huong, Sasco’s deputy
director, at an event on September 5 to announce the company’s move.
Sasco is also selling
31,034,000 shares, or 23.6 per cent, for an estimated VND310 billion ($14.7
million) to three strategic investors which are all related to Imex Pan
Pacific Group, which owns
Specifically, Sasco
is selling 21 million shares, equal to a 16 per cent stake, to Imex Pan
Pacific (IPP), 6.57 million shares (5 per cent) to Duy Anh Fashion and
Cosmetics (DAFC) and 3.4 million shares (2.6 per cent) to Au Chau Fashion and
Cosmetics (ACFC).
After the sale,
Sasco will sell the three firms’ products – cosmetics, garments and consumer
goods – at Tan Son Nhat airport.
At the event, Sasco
unveiled its plan to expand to outside the airport to sell mostly souvenirs
and local specialty food and goods. The firm said it hoped to benefit from
its strategic investors’ retail experience.
The reason the
company is expanding, according to Sasco, is that while duty free retailing
at Tan Son Nhat airport is Sasco’s main source of revenue, Sasco is facing
fierce competition in this field from other firms, whose combined commercial
area in the airport accounts for around 50 per cent.
Moreover, Tan Son
Nhat airport currently services 20 million arrivals per year. In 2015, when
the airport expands its two passenger terminals, it will reach its maximum
capacity of 25 million arrivals per year. This estimate prompted Sasco to
seek a new growth strategy.
Sasco earned VND83
billion ($3.9 million) in pretax profits, up 72.92 per cent on-year, and
revenue of VND1.060 trillion ($50.23 million) in the first half of this year.
It plans to pay dividends of at least VND900 (4.2 US cent), VND1,100 (5.6 US
cent) and VND1,200 (5.8 US cent) each year in the 2014-2016 period and
targets VND2.403 trillion ($113.9 million) in revenue and VND185.95 billion
($8.8 million) in net profit in 2016.
CIRDAP
examines regional rural development in Hanoi
Officials from the
Centre on Integrated Rural Development for Asia and the Pacific (CIRDAP)
Technical Committee gathered in
Delegates to the
29th meeting talked about the impact of climate change on plantation and food
security, an increase in income for farmers and poverty reduction, women’s
involvement in agriculture, contribution of small-and medium-sized
enterprises to poverty reduction, and post-harvest losses.
At the opening
ceremony, Vietnamese Deputy Minister of Agriculture and Rural Development Le
Quoc Doanh expressed his hope that 15 CIRDAP member countries and
international organisations will join hands to help CIRDAP develop into a
dynamic international organisation.
He shared
Currently,
Cecep Effendi,
CIRDAP Director General, said the gathering creates a forum for member
countries to share experience in policy development and scientific
technological application for the cause of agricultural and rural development
in the Asia-Pacific region.
CIRDAP was
established in 1979 on an initiative of the United Nations Food and
Agriculture Organisation (FAO).
Source:
VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
|
Thứ Sáu, 19 tháng 9, 2014
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