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BUSINESS
IN BRIEF 30/9
The bio-fuel, which
is made up of unleaded gasoline and 5 percent ethanol, will be replaced the
traditional Mogas 92 at all filling stations in Da Nang from November 1 and
in Quang Nam by the end of this year.
Earlier from
September 1, Quang Ngai province took the lead in the sale of E5-RON 92.
From December 1,
2015 onwards, the fuel will be sold nationwide at all filling stations.
According to the
Vietnam Oil and Gas Group (PetroVietnam), the total consumption of E5-RON 92
nationwide between August 2010 and August 2014 reached 105,940 cu.m. In the
first eight months of this year, the volume hit 31,000 cu.m, equivalent to
the figure of the whole 2013.
Preparations for a
meeting in
Nguyen Phong Quang,
Deputy Head of the Steering Committee for the Southwestern Region’s standing
board, said the upcoming meeting will act as a stepping stone for the city
and 12 provinces in the region to optimise their agricultural and fishing
potential.
He said the
localities need to make a list of feasible projects to call for investment
and select well-performing businesses to connect them with Japanese partners.
The region should
also focus on training human resources, particularly skilled and professional
workers, so that they can work well for Japanese businesses, he added.
The Mekong Delta is
The region also
supplies 70 percent and 60 percent of the country’s respective fruit and
aquatic exports, the steering committee said.
The Ministry of
Planning and Investment said foreign direct investment, especially from
The regional
localities plan to attract Japanese investment to 124 agricultural projects
in the near future.
The ministry said
it hopes the intensification of efforts to promote Japanese investment will
provide rich opportunities for the Mekong Delta to boost its agricultural and
aquatic production.
Dak Lak
protects Buon Ma Thuot coffee’s international trademark
In his address to
the association’s second congress for 2014-2018 held in Buon Me Thuot city,
the Central Highlands
Reviewing the
association’s activities in 2010-2013, he said it granted certificates of
geographical indication (GI) to 10 coffee processing enterprises and promoted
the trademark abroad.
It sought
protection of its certification status for Buon Ma Thuot coffee in France ,
the US , Switzerland , China , Germany , Spain , the UK , Japan , Italy ,
Singapore , the Republic of Korea and the Benelux region.
In the next four
years, the association will continue its bridging role, connecting its
members with public-private agencies, proposing coffee development plans and
applying for GI status inside and outside the European Union.
Dak Lak now boasts
over 202,500ha of coffee plants, the largest coffee growing area in
The province’s
coffee beans have made their way to 80 countries and territories worldwide.-
Community-based tourism aims to improve local livelihoods
Developing
community-based tourism is expected to help local residents improve their
living standards and promote their cultural values, a senior tourism official
said at a ceremony in
“Tourism and
Community Development” is the theme of this year’s event, which is observed
annually on September 27. This new trend demonstrates that
Director of the
Vietnam National Administration of Tourism Nguyen Van Tuan said
In the near future,
the tourism sector will help locals diversify their tourism services and draw
in more visitors.
Mary McKeon, Team
Leader of the EU-funded Environmentally and Socially Responsible Tourism
Capacity Development (ESRT) programme, said Vietnam was rich in culture
thanks to its 54 different ethnic groups.
With this
advantage, the country would be able to take the lead in community-based
tourism.
World Tourism Day
is an occasion for
In 2013,
State Audit
evaluates strategic role
The Chairman of
Vietnam's Auditor Association, Tran Van Ta, has said that the State Audit
office of Vietnam (SAV) should operate as a large-scale independent
organisation without any external interference.
Ta was speaking at
a workshop on improving the strategic role of the audit office in public
finance management with Vietnamese and international auditors on September
25.
The main topic was
Values and Benefits of the State Audit Office in Public Finance Management.
The workshop was
organised by the United States Agency for International Development (USAID)
and the State Audit of Vietnam (SAV).
It was part of
USAID's Country Development Cooperation Strategy for
Addressing the
gathering, Ta said the audit office should transform its method from compliance
audit to performance audit and perform business-based audit to improve work
efficiency.
He added that it
should develop audit standards to ensure the proper use of State funds by
agency leaders, adding that it should operate as a large-scale independent
organisation without any external interference.
Director of
Regional State Audit Office 12 in Dak Lak, Nguyen Anh Tuan, said that State
audit offices had to prove their roles to ensure accountability in using
State funds.
A representative
from KPMG Vietnam said that the audit office needed assistance from those
audited to improve working results.
The Deputy Director
of Specialised Audit Department 4 in charge of capital infrastructure
investment and projects, Vu Nhat Anh, said State enterprises that had been
equitised should be included in the audit subjects to avoid losses in the
State budget.
He said it would be
better if SAV improved the quality of audit training programmes and the
exchange of information among auditors to improve specialist competency.
The Director of
Regional State Audit Office 4 in
A representative from
the
He said the most
important matter was to tighten fiscal and financial expenses in the use of
State funds.
He added that
society would require information about State funds to be monitored to ensure
their integrity and transparency.
The Ministry of
Finance representative said that the quality of audit figures must be
guaranteed through internal and external monitoring and evaluation.
Fresh litchi is all
but on its way Downunder as the Australian Government is finalising its
approval, according to the Vietnamese Trade Office in
To boost fresh
fruits exports to the demanding market, the Ministry of Agriculture and Rural
Development (MARD in coordination with the Ministry of Industry and Trade
(MoIT) have worked closely with the Australian Department of Agriculture,
Fisheries and Forestry to remove technical barriers for Vietnamese fresh
fruits.
Vietnamese litchi
is expected to be officially shipped to
Bringing litchi to
The Vietnam
National Agro-Forestry-Fisheries Quality Assurance Department (NAFIQAD) has
filed a petition to temporarily suspend the order barring the import of
Vietnamese fisheries and seafood products into the Brazilian market.
According to the
petition, the NAFIQAD had previously received official notification asserting
certain specifically identified Vietnamese seafood producers have been
suspended from exporting seafood products at the request of the Movement of
Small Farmers (MPA).
In the filing,
NAFIQAD is asking for a stay in executing the order while it awaits official
clarification from the Government of Brazil or the Brazilian Embassy in
The specific
Vietnamese seafood producers were given an opportunity to cure the defects
outlined by the MPA. They outlined their proposed solutions to the
situation in a document submitted to the NAFIQAD on September 19 2014, which
was then forwarded to MPA.
At present, the
Brazilian Embassy in
In the interest of
fairness and equity, the NAFIQAD requested in its petition a stay should be
entered to allow for the Vietnamese seafood producers to continue exporting
uninterrupted, and provide the parties additional time to work out an
amicable solution.
HDBank
awarded Best Local Cash Management Bank
The Housing
Development Bank (HDBank) has been awarded ‘The Best Local Cash Management Bank’
by Asiamoney, a prestigious financial magazine in
This is the third
year the bank has received the distinguished banking award. It is also the
only representative from
The annual awards
by Asiamoney magazine, a leading
US
anti-dumping taxes on VN’s shrimp go against bilateral ties
The US Department
of Commerce (DOC)’s imposition of anti-dumping duties on Vietnamese shrimp
products is unfair and contradicts the principle of trade liberalisation and
the economic and trade ties between the two countries, Foreign Ministry
spokesman Le Hai Binh told reporters in Hanoi on September 27.
When asked about
“Vietnamese
businesses do not dump shrimp products on the
He suggested trade
between the two countries be considered fairly and objectively in order to
ensure the legitimate rights of Vietnamese shrimp farmers, processors and
exporters, as well as US consumers, import and distribution businesses.
Minister of
Industry and Trade of Vietnam Vu Huy Hoang and his Lao counterpart Khemmani
Pholsena on September 26 signed a memorandum of understanding on border trade
linkage, aiming for 2 billion USD in two-way trade by 2015.
The document, the
ninth of its kind, was inked at the end of the ninth conference on
Vietnam-Laos border trade cooperation held in
Participants in the
conference spoke highly of the achievements made since the eighth conference
held in 2012 and suggested the two sides continue to work closely to create
favourable conditions for boosting trans-border trade in the future.
Last year,
bilateral trade reached 1.25 billion USD, up by 27 percent compared to the
year before. The figure hit 888 million USD during the first six months of
this year, an increase of more than 33 percent. It is expected to reach 1.5
billion USD by the end of 2014, and 2 billion USD by 2015.
The ministers said
the two governments needed to devise more incentives and invest in the development
of joint border markets.
In addition,
concrete measures to strengthen trade ties between the two countries were
necessary in order to meet trade targets and contribute to the building of a
common border area of peace, friendship, development and long-term stability.
Ministry
urged to ratchet up trade fraud fight
Deputy Prime
Minister Nguyen Xuan Phuc asked the Ministry of Industry and Trade to step up
the combat against smuggling and trade fraud for winning consumers’ trust and
making the investment climate healthy.
The Deputy Prime
Minister, who is also head of the National Steering Committee on the
Prevention and Control of Smuggling, Trade Fraud and Fake Commodities,
described the work as an urgent and regular task during his working session
with the ministry in
He required the
ministry to strengthen collaboration with the police and customs forces to
promptly tackle violators, especially at border areas where the situation is
developing complicatedly.
Poor market
management is particularly blamed for the entry of low-quality products
imported from
Minister Vu Huy
Hoang said more awareness-raising campaigns are needed for manufacturers and
consumers alike to prevent fake commodities from entering the country.
In January-August,
the ministry handled nearly 64,000 violation cases, up 12.2 percent from a
year earlier, and collected fines totalling 187 billion VND (8.7 million
USD).
Foreign
tourists to
Meanwhile, the
number of domestic tourists hit 32.4 million during the period, an increase
of 7.6 percent, according to the Vietnam National Administration of Tourism
(VNAT).
Tourism has
generated 179 trillion VND (8.44 billion USD) so far this year, a
year-on-year rise of 19.24 percent.
The launch of a
brand new hydro-plane service linking
The operator Hai Au
Aviation Joint Stock Company has scheduled one to three flights between
The company is
planning to open new routes from
During the
nine-month period, the capital city of
Meanwhile,
PTI
launches online inquiry service for vehicle insurance
The Post and
Telecommunication Joint Stock Insurance Corporation (PTI) became the first
Vietnamese insurance company to provide an online inquiry service on the
progress of motor vehicle insurance.
Customers may
access the website on www.sms.pti.com.vn to track down information such as
the date of insurance payments and the current status of documents undergoing
processing.
Last August, the
PTI management board agreed to increase its capital in two companies within
this year. The company will raise its capital in Lane Xang Insurance Public
Company (LAP) by US$150,000 to $1 million, which is equivalent to half of
LAP's charter capital.
PTI will also buy
shares of IBS Viet Nam Company Ltd to increase its capital by VND10 billion
(more than $476,000) to VND19.8 billion ($942.8 million), which is equivalent
to 99 per cent of IBS's charter capital.
Property
sector draws $1.2b in FDI
The capital inflow
is expected to rise towards the end of the year.
Figures from the
Foreign Investment Agency showed that the real estate sector accounted for 11
per cent of the total registered FDI with 27 projects, followed by the
construction sector with $612.1 million.
Hai Duong
hopes to build admin centre
The northern
Covering an area of
19.2 ha, the centre will have the offices of 19 state management units with
the aim of promoting administrative reform and creating a modern work
environment by locating all agencies in a place.
The province will
spend VND1 trillion from its budget on the project, while the remaining will
come from the land transfer of old public offices and other legal capital
resources.
Minh Phu
Seafood plans $24m bond issue
Minh Phu Seafood
Corporation (MPC) plans to issue bonds worth VND500 billion (nearly US$24
million) this month. These three-year bonds are unmortgaged and
non-convertible and will be offered to less than 100 investors in a private
placement.
Recently, MPB
decided to buy back as many as 1.6 million shares to pave the way for its
plan of delisting shares on the HCM Stock Exchange. At the current price of
VND71,000 ($3.36) per share, it will spend over VND110 billion ($5.2 million)
to fund the purchase.
Investor
fined for share price manipulation
The State
Securities Commission will fine Pham Thi Hieu, an individual investor on the
HCM Stock Exchange, VND300 million ($14,218) for manipulating the share price
of real estate developer An Duong Thao Dien Company (HAR).
In 2013, Hieu used
17 accounts of other investors at seven securities companies to constantly
buy and sell HAR shares, creating a false sense of supply and demand that
affected HAR prices, the SSC said.
Hieu's violation
started from the first day HAR listed on
Many State
enterprises send in late reports
The Ministry of
Finance announced that many State-owned enterprises did not submit their
required financial reports before the August 31 deadline.
As of that date, 18
of the 78 State corporations and 126 of the 149 one-member liability
companies under the Ministry's management did not submit financial
statements. Eight of 18 ministries and ministerial agencies have yet to send
financial monitoring reports.
In addition, many
corporations and companies did not send reports on their business
classification and only the Ministry of Agriculture and Rural Development
sent a written explanation.
Thong Nhat
Production Co to list
About 68 million
shares of Thong Nhat Production and Investment Company (GTN) will be listed
on the HCM Stock Exchange on October 3 at the reference price of VND10,500
(US$0.50) per share, the exchange announced.
The company was
formed through the merger of several companies operating in the fields of
industrial bamboo production, infrastructure, minerals, building materials,
plastics and agricultural products.
At the end of June,
the company had charter capital of VND680 billion ($32.2 million) and total
assets of more than VND1 trillion ($47.8 million). In the first six months of
this year, its revenue reached VND202.8 billion ($9.6 million) and after-tax
profits hit VND23.8 billion ($1.1 million).
VN becomes
attractive oil refinery option
Tien phong (the
Vanguard) online news reported that Viet Nam's intial oil and gas development
strategy by 2020 involved the setting up of three oil refineries: the
proposed US$3-billion Dung Quat refinery in Quang Ngai Province, with an
annual capacity of 6.5 million tonnes of crude oil; and the proposed
$9-billion Nghi Son refinery in Thanh Hoa Province and the proposed
$4.5-billion Long Son refinery in Ba Ria-Vung Tau Province, each with an
annual capacity of 10 million tonnes.
The State later
added to the plan two oil refineries: the $3.18-billion Vung Ro refinery in
Now,
Tran Viet Ngai,
chairman of the Viet Nam Energy Association, said the Dung Quat refinery was
expected to meet 30 per cent of domestic petrol and oil demand, so Viet Nam
needed only one more refinery with an annual capacity of 15 to 20 million
tonnes to supply enough petrol and oil to the domestic market.
Ngai attributed the
increase in oil refinery investments to the country's political stability and
security, strategic location for transporting goods to and from Asia-Pacific
countries, numerous deep-sea ports, and investment incentives.
He noted that deep-sea
ports were quite important in transporting oil products mainly by sea. He
added that for oil refinery projects,
The refineries
usually export their products, including petrol, oil and oil chemical
products, said Ngai, adding that investors of refineries would gain profits
mainly from chemical by-products such as polymer, asphalt and fibre, and only
partly from petrol and oil products.
For instance,
Economic expert Le
Dang Doanh said Viet Nam would soon be signing numerous free trade agreements
that were advantageous to refineries, such as the TPP, ASEAN+6, ASEAN
Economic Community, Viet Nam-EU and Viet Nam-Customs Union agreements.
Refineries in Viet
Nam will be able to export their products to other countries and territories
at reduced or zero tariffs after the signing of these agreements, Doanh
noted, and added that a large and cheap work force was also an advantage for
the refineries.
Ngai said the
refineries would provide jobs to local residents, especially skilled workers,
as well as provide high-technology resources and a bigger budget for the
nation.
Refineries will
also create competition in the domestic market for products such as petrol,
oil, asphalt, polymer and fibre, and reduce the import volume and selling
price of these products.
However, Doanh
said, the refineries were using old and pollutive technologies that could
harm the environment, and these should be regulated.
September
sees fall in confidence index
The ANZ-Roy Morgan
Viet Nam Consumer Confidence Index has fallen slightly to 135.0 in September,
down 0.5 point over the previous month.
ANZ Bank economists
announced this in a report on Wednesday, adding that the index still remains
clearly above the 2014 average of 132.0.
This month's fall
in consumer confidence was primarily driven by an increasing number of
respondents saying that now is a "bad time to buy" major household
items, the economists said.
About 40 per cent
(unchanged) of the Vietnamese people said that now is a "good time to
buy" the items, but 21 per cent (up five percentage points) said now is
a "bad time to buy."
"As we noted
for the past few months, the consumer confidence was in the process of
finding a new equilibrium level more aligned with steadily improving economic
fundamentals rather than the dramatic improvement from geopolitical
lows," said Glenn Maguire, chief economist of ANZ in South Asia, ASEAN
and the Pacific.
Considering the
domestic economy, 54 per cent (up 3 percentage points) of the people expect
the country will have "good times" financially during the next 12
months, and 14 per cent (down one percentage point) expect "bad
times."
Glenn said that
with inflation continuing to soften, price-savvy consumers may be
anticipating cheaper prices in the future.
"Such an
outcome will ultimately be positive for consumption in the Vietnamese economy
when this deferred spending is realised," he added.
Remittances
could total $5b in
Remittances by
overseas Vietnamese through banks and other official channels to
The estimation is
based on the remittances received so far, which, as of early September had
topped $2.7 billion, a year-on-year increase of 6.2 per cent.
They were sent from
Central bank deputy
director Nguyen Hoang Minh said remittances from Asian countries have risen
sharply in the past few years.
This year
remittances from
Minh said 74.2 per
cent of the remittances has been channelled into manufacturing, 21.8 per cent
into housing, with the remaining 4 per cent going towards supporting
remitters' families in
In addition to
buying houses for living, the money has also been used to invest in property.
The director of a
remittance company in
That is the reason
why remittance companies have recently launched promotion campaigns to
attract the money, he added.
Vinpearl to
launch new island resort
Vinpearl Joint
Stock Company (Vinpearl) will launch the five-star Vinpearl Resort&Villas
1 in
Vinpearl
Resort&Villas 1 is the company's new luxury resort, following the two
previous successful projects on the island, namely Vinpearl Resort and
Vinpearl Luxury.
The resort, now
under construction, will include a "two in one" complex combining
500 five-star hotel rooms with 160 luxurious villas.
Vinpearl
Resort&Villas 1 offers chances for its guests to enjoy nature's beauty in
one of the world's 30 most beautiful bays. It also opens opportunities for
property investments and is expected to be launched after seven months of
construction.-
Industrial
production up 6.7%
The General
Statistics Office (GSO) also reported that during the nine-month period, the
processing and manufacturing sector, which accounted for 70 per cent of total
industrial output, achieved an encouraging 8.3-per cent growth.
Industrial products
recording the highest growth included handsets with 72.3 per cent;
electronics, computers and optical equipment with 35.9 per cent; leather
products and footwear with 31.3 per cent; and electrical output with 13.1 per
cent.
Products with lower
growth rates include crude oil and steel at only 3.2 per cent each; chemicals
at three per cent; and pharmaceuticals at 0.9 per cent. Products with
declining rates include sugar, which fell by 25.6 per cent; and powdered
milk, by 23.3 per cent.
In spite of the
nine-month growth, the nation's IIP remained equal to one-third of the growth
seen a few years ago, GSO experts said. They attributed this to low
consumption and a high inventory index, which stood at 11.6 per cent.
The industry and
trade sector in 28 northern cities and provinces will strive to achieve an
IIP of VND2.17 quadrillion (more than US$102 billion) this year. Achievement
of this target will lead to a 22.5-per cent year-on-year increase.
The cities and
provinces, including Lao Cai, Ha Giang, Lang Son and Bac Giang, as well as
Thai Binh, Ha Noi and Hai Phong, crafted 12 specific solutions to meet the
target, including 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.
Agriculture
needs investment
New policies that
would attract investment in the hi-tech agriculture sector would create a
breakthrough in production and consumption of farm produce, the HCM City
Department of Agriculture and Rural Development has recommended.
Although the city
has paid attention to enhancing advanced technology in agricultural
production in the past, the value of agricultural production has grown at a
modest rate of about 5 per cent per year.
The average revenue
per hectare under agricultural production in the city is about VND280 million
(US$13,213) per year.
If maintaining such
a growth rate, the sector would reach the production value of VND800 million
($37,753) per hectare by 2020 as set in the master plan for agricultural
restructuring, the department said.
Le Minh Dung,
deputy director of the department, said the city was calling for enterprises
to invest in the hi-tech agricultural sector and develop models for
incubating businesses to reach the target.
Besides better
policies, the city needed to focus more on solving financial difficulties
faced by enterprises, he said.
Many firms were not
interested in investing in the hi-tech agricultural sector, saying that it
requires a large amount of capital, but has low economic efficiency.
Credit institutions
were not interested in providing loans to enterprises because of the low
profits.
Le Thanh Nguyen,
director of Sai Gon Hi-tech Park Incubation Centre, said the centre had
worked with many investment funds, but they were only interested in real
estate and information and technology sectors.
The agricultural
sector had low capital turnover and high risks, he added.
The Government had
no investment fund designed to support a business incubation programme, while
in other countries in the region such as
The hi-tech
agricultural sector would expand more rapidly if the existing barriers were
removed, he said.
FDI growth
expected to continue
Foreign direct
investment has significantly increased in recent years and will continue in
the years ahead, especially as more State-owned enterprises are equitised,
according to analysts.
Although
For the first half
of the year, the footwear industry, for example, received many major orders
from global companies like Nike and Adidas, both of which plan to open
factories in Viet Nam.
In addition,
Samsung, Intel and Nokia have continued to invest billions of US dollars in
expanding production in
In July, the
Samsung Display US$1 billion-project to produce high-definition screens in
Intel also
announced a new product, the CPU Haswell chipset, of which 80 per cent will
be produced in
Indirect investment
has also gone up, especially for mergers and acquisitions (M&A). The
total value for M&A has risen five times, from $1 billion in 2008 to $5
billion in 2013.
Economic experts
believe that within the next five years, there will be $20 billion worth of
M&A deals.
According to the
Ministry of Planning and Investment's statistics, FDI accounts for 25 per
cent of total investment capital, contributing 19 per cent of GDP, 67 per
cent of export revenue, and over 14 per cent of revenue of the State budget.
For indirect
investment, 17,000 banking accounts of foreign investors have opened in
"The
Vietnamese capital market environment has significantly improved thanks to
re-stabilisation of the macro-economy," Andy Ho, VinaCapital's general
director and head of Investment, was quoted as saying in the Sai Gon Giai
Phong (Liberated Sai Gon) newspaper.
The Trans-Pacific
Partnership and Free Trade Agreement with the EU will also help FDI, as well
as continued equitisation.
Hindrances to
development include existing capital barriers, the weak operation of big
State-owned corporations; a shortage of quality human resources; increasing
salaries for workers; high volume of bad debts in the banking system; and
limited capital of enterprises.
Increasing
enterprises' governance ability and improving transparency would be necessary
for further growth, he said.
Talks aim
to keep Govt policies up with the times
With the theme,
"New Games, New Moves", a conference of foreign and Vietnamese
experts discussed strategies and solutions the country would need after the
ASEAN Economic Community, the Tran-Pacific Partnership agreement and
The new trade
agreements and policies were expected to create a more liberatised and
competitive market, speakers said at the third
The AEC, for
example, will also enhance
Herb Cochran,
executive director of the American Chamber of Commerce, said that Vietnamese
exports and GDP were expected to increase by 28 per cent and 36 per cent,
respectively, compared to the pre-TPP period.
In the past seven
years, Vietnamese exports to the
Vo Tri Thanh,
deputy director of the Central Institute for Economic Management, said that
"a new game requires new plays, new moves". Every country will
develop its own policies to win this new game.
"
The Government
needs to have a new vision with reform policies on resource allocation,
banking system, land and human resources to ensure a transparent, open
business climate with fewer administrative procedures at a lower cost.
The forum attracted
1,000 domestic and foreign CEOs, business leaders and economists. During the
conference, experts said that participation in the AEC and TPP would bring
great benefits to the bloc's member countries, including faster economic
growth, better job generation and additional foreign direct investment (FDI)
inflows.
Another important
factor would be investments in the IT industry, which will play a key role
when it connects with the trading and production sectors.
IT investment is
needed for better infrastructure and enhanced international integration.
Speaking at the
conference, economist Pham Chi Lan said that small- and medium-sized
enterprises in
For the Government,
she suggested that trade facilitation would also make
Jonathan Hanh
Nguyen, chairman of Imex Pan-Pacific Group, said: "Businesses need
support from the Government. If they don't have it, they will swim in a big
sea and sink."
He said the future
success of businesses were dependent on the government's policies.
If businesses lack
capital and do not have access to loans at preferential interest rates, they
will have difficulties thriving in the new climate.
In addition,
domestic businesses should build trademarks and develop marketing campaigns.
Truong Gia Binh,
chairman of the FPT Corporation, said businesses should actively learn from
their counterparts in other countries and adopt advanced technologies.
The
Stockmarket
becomes contrary
The Vietnamese
stock market is witnessing contrary movements, with individual investors
buying in hopes of brighter prospects and major shareholders selling after
making huge profits.
The market began to
decline nearly two weeks after a long rally, but a good number of investors
are still pouring money into it in the belief that it will rise again in the
medium and long term, as shown in the high trading volume at each session.
This strong demand during the bear sessions helped to cushion the market.
On the other end of
the spectrum, a good number of major and internal shareholders are unloading
shares. They opted to exit the market when it peaked and earned billions of
Vietnamese dong in profits.
The market is
fluctuating along a narrow range now because of a lack of support from big
investors. In recent sessions, a large quantity of oil and gas-related shares
and hot stocks rode the previous rise in market momentum and were sold.
However, demand for these shares is also high, with tens of millions of
shares bought every session.
Viet Nam Public
Bank (PVComBank) has registered to sell shares of four oil and gas companies,
including PetroVietnam Drilling and Wells Service Corporation (PVD),
PetroVietnam Technical Services Corporation (PVS), PV2 Investment Co (PV2)
and Petroleum Real Estate Co (PVL). The total value of these sales could reach
VND1.4 trillion (US$66.4 million).
Many oil and gas
stocks have risen by 80 per cent in value in the past, and analysts said
PVComBank chose the best time to sell these shares.
Meanwhile, the
leaders of Petroleum Equipment Assembly and Metal Structure Co (PXS) and
their relatives sold thousands to several tens of thousands of the company's
shares.
In addition,
companies were seen unloading stakes in subsidiaries and affiliates. This
month, Viet Nam Posts and Telecommunications Group (VNPT) announced it would
sell all of its 40.6 million shares in Sacom Investment and Development
Corporation (SAM), equivalent to 31.04 per cent of SAM's total capital.
Ha Noi
issues $143m in bonds to fund traffic infrastructure
The capital city
will issue bonds worth VND3 trillion (US$142.86 million) later this month to
raise funds for its traffic infrastructure development from 2014 to 2015.
Dao Thai Phuc,
director of the State Treasury's Ha Noi unit, announced this on Wednesday,
saying the bonds would be auctioned on the Ha Noi Stock Exchange and
underwritten by securities companies, commercial banks and other authorised
financial institutions.
The bonds will have
a fixed interest rate during the period. The money to be raised will be used
to fund some of the city's key traffic projects, including belt roads No1 and
No2 and the extension of Highway 5, all to be completed by the end of next
year.
Phuc said his
agency would closely control financing to guarantee efficiency and
punctuality in the projects' implementation.
Source:
VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
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Thứ Hai, 29 tháng 9, 2014
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