|
BUSINESS IN BRIEF 19/11
Domestic
gold demand suffers sharp downturn
According
to the World Gold Council (WGC)'s latest global gold consumption report, the
country's registered gold consumption in the third quarter reached 19 tonnes
worth US$783 million. Of the total, gold jewellery accounted for two tonnes
worth $82 million, a nine-per cent decline, while gold bars and coins made up
17 tonnes worth $701 million, a 29-per cent decline.
The
report also showed that as of September,
The WGC
ranked
This
year,
Previously,
when the economy was unstable and inflation was high, people only trusted
gold. Now people are seeking investments in stocks and property, and simply
depositing money in banks could give them good returns, so demand for gold
had dropped sharply.
The
report also showed that world gold demand in the third quarter reached 929.3
tonnes, a four-per cent quarter-on-quarter decline. Demand for gold jewellery
accounted for 534.2 tonnes of the total.
Consumer
confidence keeps climbing
Consumer
confidence in
The
Nielsen Global Survey of Consumer Confidence and Spending Intentions reveals
that for the first time since 2012 consumer confidence levels in Viet Nam
exceeded 100 points to stand at 102 while globally consumer confidence
remained steady at 98 points.
Vaughan
Ryan, managing director of Nielsen Vietnam, said, "the four-point
increase to 102 for Q3 is the largest change in a number of years and does
show some positive signs of improving consumer confidence, despite a tough 18
months.
"It
is the highest level recorded since Q4 of 2013. It is important to
acknowledge that overall, Vietnamese consumers are still very cautious as
economy and job security are still the main concerns."
Consumers
still have a strong sentiment for putting cash into savings but for the first
time in a number of years the number of people saying this has reduced, he
said.
"Across
the board we saw an increased intent to spend money on holidays, new clothes,
new technology, home improvements and more out of home entertainment. This is
such a positive sign that it looks like consumers are about to open their
wallets again.
"The
local market has been tough, but the Consumer Confidence Study showed some
really positive signals, which is fantastic leading up to Tet and into
2015."
While a
majority of consumers across
In
Thirty
four per cent of consumers in the
Besides,
the region's consumers remain focused on putting aside savings for the
future, with 77 per cent and 74 per cent consumers in
Consumers
in other Southeast Asian markets are also diligently building nest eggs,
including those in the
Along
with savings and investing in stocks, consumers in the region are also eager
to spend on big-ticket items.
Singaporeans
are the most inclined globally to spend their spare cash on vacations (51 per
cent), followed closely by
Around a
third of consumers in the
Five
Southeast Asian markets — Thailand, Viet Nam, Philippines, Malaysia, and
Indonesia — rank in the top 10 globally in changing their spending habits to
reduce household expenses.
In
Thailand, 88 per cent have changed their spending in the past year to save on
household expenses, the highest level globally, followed by 86 per cent in
Viet Nam, 83 per cent in the Philippines, 79 per cent in Malaysia, 76 per
cent in Indonesia, and 63 per cent in Singapore.
The
survey, done in August–September, polled more than 30,000 people online in 60
countries in the Asia-Pacific, Europe, Latin America, the Middle East/Africa,
and
SMEs
encounter difficulties accessing banking loans
Gaining
access to capital is an ongoing concern for small and medium-sized
enterprises (SMEs), particularly in light of the increased need for working
capital brought about by
At a
seminar in
Only 30%
of SMEs have the ability to obtain needed working capital by accessing bank
loans, while the remaining 70% have to raise the funds through equity
financing arrangements with investors at a significantly higher cost, he
said.
Echoing
Balasingam’s view, SME Management Science Institute Director Pham Ngoc Long
in turn said that since 2011, SMEs have not enhanced their competitive edge
and have continued to encounter hindrances in getting access to capital
resources.
Tran
Trung Kien from Techcombank said one of the issues faced by banks is the
shortage of medium and long-term capital resources at reasonable interest
rates to meet the SMEs’ demand.
Kien
added SMEs have also encountered difficulties in improving transparency in
financial reports while banks can approve loans based on these reports. In
addition, SMEs’ business plans are generally incomplete or inaccurate and are
not sufficient to persuade banks to provide loans.
At
present, SMEs in
Vietnam
attends int’l textiles fair in Australia
At the
fair they have set up a bevy of pavilions casting the spotlight on a wide
variety of high quality Made-in-Vietnam wares ranging from leather goods,
sportswear, footwear, jewellery, silk, swimwear to ceramics.
The
event offers an unparalleled opportunity for the Vietnamese enterprises to
tout their products and find opportunities to network with businesses from
Businesses
include Garment 10 Corporation, Ho Guom Garment Joint Stock Company, Dong
Xuan Knitting Company, Phong Phu Home Textile Joint Stock Company and Thang
Long Garment Joint Stock Company.
In nine
months leading up to October, Vietnam’s garment and textile exports to
Australia surged 46.8% to US$97.3 million compared to just more than US$90
million from a year earlier.
US
carries great potential for
The
Nguyen
Hong Duong, Deputy Director of the American Market Department of the Ministry
of Industry and Trade (MoIT), made this statement at a workshop on
"Vietnam and the United States' Trade Relations and Trans-Pacific
Partnership (TPP): Major Prospects and Challenges” in Hanoi on November 18.
The
Vietnam Trade Promotion Agency and the US Embassy in Ha Noi organised the
event.
Duong
said the
He
warned that the
According
to Duong, the TPP agreement, with the participation of leading economies such
as the
Moreover,
the
According
to the MoIT,
To take
advantage of the TPP agreement from now on,
Stuart
Schaag, US Commercial Counselor revealed that every year, the US made an
annual report on trade barriers of all countries, including Viet Nam, and
sent reports to Vietnamese ministries and agencies on US trade barriers for
Vietnam.
He said
that apart from newly-issued policies on
Tran Ba
Cuong of the MoIT Multilateral Trade Policy Department said the biggest
impact would come from the opening of the market, thereby raising competitive
pressure from foreign rivals.
This
would serve as an opportunity for well-performing domestic businesses but
would be a great challenge for ailing businesses, he added.
In
addition, the TPP is expected to generate a comprehensive impact on
The
target was set during a meeting between State President Truong Tan Sang and
According
to the statistics of Indonesia’s Foreign Ministry and national statistics
office (BPS), two-way trade between two countries annually rose 25% in the
past five years to reach US$5.12 billion in 2013, doubling the figure in
2009. In the first eight months of this year, bilateral trade was US$3.71
billion.
According
to
Business
sector should join human rights fight
The
business sector's co-operation is essential for the success of global efforts
on human rights, said Nguyen Trong Dam, deputy minister of Labour, Invalids
and Social Affairs.
Dam
spoke on November 18 at a seminar on the relationship between human rights
and businesses hosted in Ha Noi during the Asia-Europe Meeting (ASEM). The
three-day event was attended by 120 representatives of governments, research
institutes, social organisations and enterprises from 53 ASEM member
countries.
Statistics
from the International Labour Organisation (ILO) and the World Bank showed
that the recent global financial crisis and economic depression cost the jobs
of about 205 million people and caused approximately 64 million people to
fall into poverty.
"In
that context, it is urgent that we promote international, regional and
national efforts with the co-operation of the business sector to create more
jobs, as well as guarantee the interests of the workers, particularly
vulnerable ones like women and ethnic minorities," Dam said.
Zhang
Yan, Executive Director of the Asia-Europe Foundation (ASEF), a non-profit
organisation established by the ASEM member countries said that this informal
seminar "could not come in a more appropriate time."
"The
amended Constitution last year clearly regulates that the workers have the
right to select their occupation and to work in a fair and safe
workplace," said Dang Dung Chi, head of the Institute for Human Rights
Studies. "It also prohibits discrimination against workers and child
labor."
Another
event, held by the Institutes for Human Rights Studies, the Institute for
Workers and Trade Unions, and the Chamber of Commerce and Industry during the
ASEM, focused on collective bargaining between workers and employers.
"
Apart
from the Constitution,
A new
draft Law on Occupational Safety and Health is expected to be submitted to
the National Assembly in 2015 to help keep people safe at their workplaces.
Yet, the
country is still struggling to address a high number of unpaid wages, which
reached about VND80 billion (US$3.8 million) last year, leaving about 10,000
workers without wages, according to the Ministry of Labour, Invalids and
Social Affairs.
Occupational
accidents have also caused alarm. About 6,670 workplace accidents took place
across the country last year, killing 627 workers and costing firms about
VND72 billion (US$3.4 million).
The
informal seminar on human rights is an annual part of the ASEM. It aims to
help government representatives and experts across Asia and
So said
Politburo member and Permanent Secretary of the Party Central Committee’s
Secretariat Le Hong Anh at a reception for visiting Kumho Asiana Chairman
Park Sam-koo in
At the
meeting, Le Hong Anh spoke highly of Kumho Asiana Group’s efforts and
contributions to boosting the economic cooperation between two countries as
well as its social activities in
Highlighting
the fruitfully developing relation between
For his
part, Park Sam-koo informed the host of his group’s operations in
The
group has effectively implemented a number of projects in
He
affirmed that Kumho Asiana will increase investment in areas of Vietnamese
concern, thus making practical contributions to the country’s socio-economic
development as well as developing the Vietnam- RoK relations in a more comprehensive
and sustainable manner.
SHB
forms subsidiary in Cambodia
Saigon-Hanoi
Commercial Joint Stock Bank (SHB) has announced the formation of a wholly
owned subsidiary in Cambodia, SHB Cambodia Bank with maximum authorized
registered capital of US$50 million.
Recently,
SHB has opened its third branch in
Apart
from SHB, many Vietnamese banks have made their foray into in
Bright prospects for trade surplus with the US
The
information was shared at a seminar to discuss prospects and challenges in
the Vietnam-US trade ties when the Trans-Pacific Partnership (TPP) Agreement
is signed in the coming time. Accordingly, tariffs will be reduced to zero
%while highly competitive products will help
Vietrade
reported the
Nguyen
Hong Duong, MoIT’s American Market Department Deputy Head said with entry to
TPP, Vietnamese businesses will have to face many trade barriers when
exporting goods to the
Therefore,
businesses should invest in production technologies to meet the requirements
for international labour and environmental standards.
Stuart
Schaag, commercial counsellor at the US Embassy in
Two-way
trade between
According
to
Managing
trade risks for exporters
International
trade throws up a number of risks exporters must be better equipped to
handle, said Nguyen Chi Mai head of the Vietnam Competition Authority (VCA)
at a recent conference in
The
conference, addressing the trade risks for exporters, was sponsored by the
World Trade Organisation's Affairs Consultation Centre in coordination with
the Ministry of Industry and Trade's Competition Management Department and the
HCM City Business Association.
Since
1994, VCA statistics show there have been 90 trade defence investigations on
Trade
defence lawsuits are costly and a waste of time. An ounce of prevention
is worth a pound of cure and businesses should work to implement policies and
procedures aimed at preventing lawsuits from happening in the first place.
They
should implement policies to insure they fully understand the importing
countries' anti-dumping and anti-subsidy regulations and be diligent in
staying abreast of the ever changing market conditions.
Most
importantly they should invest heavily in technology to add value to their
products. Adding value directly correlates to a reduction in anti-dumping
lawsuits, Mai said.
But if a
law suit is served on them, above all else they must respond promptly to
protect their rights.
Meanwhile
the number of trade lawsuits demonstrate that local businesses have not paid
sufficient attention to protect themselves while the markets continue to get
more and more competitive.
Over the
past 10 years, VCA has received complaints from 11 cases, conducted
investigation on 3 cases and levied anti-dumping taxes in two situations.
In the
coming time after a number of free trade agreements come into effect and a
mass of imported products hit the domestic market, better protective measures
would need to be put in place to protect the domestic market.
VCA
official Nguyen Huu Truong Hung in turn said local businesses have not paid
due attention to safeguard measures because they have not been fully aware of
their role, and lacked adequate information.
The
legal procedures to initiate or defend against a lawsuit are very
complicated, requiring careful investment of businesses. Furthermore, local
firms are often unable to obtain timely accurate information to demonstrate
that foreign products are being dumped in the domestic market.
Thus, to
use safeguard measures to deal with unhealthy competition, businesses should
raise their legal knowledge, Hung added.
He cited
as an example an anti-dumping lawsuit filed last May by two major stainless
steel producers, Hanoi-based Inox Hoa Binh and the
After a
five-month investigation by VCA, cold rolled stainless steel imported from
four countries was found to be subject to anti-dumping tariffs ranging from
6.45% to 30.73%.
Thus, if
local firms had been more alert to the improprieties and drawn attention to
the unhealthy competition sooner they would have been better off Hung
concluded.
RoK
issues ‘Warning Letters’ to seafood exporters
Domestic
seafood exporters have been warned against their violation of the RoK’s food
safety regulations against chemical and antibiotic residues detected in 11
batches of tra fish.
They
were mentioned in a list released on November 5 by the National
Agro-Forestry-Fisheries Quality Assurance Department (NAFIQAD) under the
Ministry of Agriculture and Rural Development (MARD).
The
warnings claimed that some Vietnamese seafood products contain Nitrofuran
residues that are higher than the permitted level. NAFIQAD said local seafood
exporters should apply tougher examination measures to ensure food hygiene
and safety.
Strict
inspection should also be conducted at aquaculture farms and preservation
process in accordance with regulations of the Ministry of Agriculture and
Rural Development (MARD) as well as requirements of importers, the Department
suggested.
NAFIQAD
asked the Vietnam Association of Seafood Exporters and Processors (VASEP) to
warn local seafood exporters of high chemical residue in their export
products and assist them in examining for chemicals, particularly Nitrofuran
and Fuzazolidon.
Vietnam
Motor Show 2014 (VMS) officially kicked off in
The
event, co-organised by the Vietnam Automobile Manufacturers’ Association
(VAMA) and importers, offered an opportunity for manufacturers and importers
to introduce their latest models and technologies to customers.
Sixteen
automobile brands have registered for the exhibition including nine VAMA
members namely Ford, GM, Hino, Honda, Mercedes-Benz, Suzuki, Toyota,
Vinastar, Daimler Trucks, along with seven automobiles imported brands such
as Audi, BMW & Mini Cooper, Land Rover, Porsche, Nissan and Lexus.
In the
past 10 months, nearly 121,600 cars have been sold, up 40% compared to last
year’s corresponding period. In October alone, nearly 15,000 cars were sold,
up 45%, according to VAMA.
Jesus
Metelo N. Arias Jr, VAMA Chairman expressed his wish that the association
would introduce the latest convenient and environmentally friendly models and
technologies to Vietnamese consumers.
The
five-day event is expected to attract 150,000 visitors.
There’s
more than one
Some of
Thomas
Jandl is a former assistant professor and Scholar-in-Residence at
Here’s
Thomas Jandl’s full article:
In the
Unfortunately,
investors prefer what they already know, instead of what they – often
unfairly – label “risky.” That means investors are missing out, as the risks
are quite manageable with the right background knowledge about the various
locations.
The
United States Agency for International Development in cooperation with the
Vietnam Chamber of Commerce and Industry (VCCI) publish an annual Provincial
Competitiveness Index (PCI). In it, provinces are ranked rigorously (the lead
investigator is a well-known American Vietnam scholar) along a number of
indicators, like corruption, business support services, entry cost, time cost
or transparency. A composite index then ranks all 63 provinces, giving
investors a good idea what to expect.
Of
course, different industries need different business environments, and not
all provinces are equally suitable for a chemical manufacturer, a garment
assembly line, or a computer chip facility.
In 2013,
Danang and
The
Southeastern region around
As a
result, foreign investors thinking about setting up shop in
After
two decades of rapid growth,
This
human flood taxes local infrastructure, and the city’s governments and
neighbouring Dong Nai and Binh Duong are actively discouraging new
investments in low-added-value factories.
City
officials say they want to see these factories go to nearby provinces, while
fostering research, design, financing and other, higher-end support
industries in
This
policy mirrors the Asian development experience known as the Flying Geese
model. As one country becomes too expensive to produce a low-end product, it
outsources it to others with cheaper labour.
The
central government is on message as well. Its goal has always been to develop
target areas, then distribute the gains to other areas. Now it makes
available generous tax holidays and low-cost land in well-developed
industrial parks to companies that invest in certain target industries or
target areas. A labour-intensive factory misses out on the best incentives
One of
the reasons to locate in the growth poles has been labour availability. The
concentration of industrial park attracted a large number of workers.
Recently, however, the cost of living in these areas has driven workers back
home –
Using
rankings such as the PCI and a good consultant with connections on the ground
can make the difference between simply investing in Vietnam – and taking
advantage of the varied advantages Vietnam offers different industries with a
wide range of needs.
The
large-scale event will gather specialities from 40 cities and provinces,
including processed seafood, candy, tea and coffee, fresh fruits and spices,
according to director of the Hanoi Trade Promotion Centre Nguyen Thi Mai Anh.
Visitors
can taste a variety of produce items renowned for their quality. Some scarce
items will only be available in limited quantity.
The
Hanoi Department of Trade and Industry initiated the programme with the goal
of expanding markets for these unique regional products.
"In
recent years, localities have made tireless efforts to promote their products
but failed to do it thoroughly," department deputy director Tran Thi
Phuong Lan said. "Consequently, the specialities haven't caught on among
consumers in other areas."
A
conference on enhancing value and developing trademarks will take place on
November 29, as will an activity to connect enterprises in
Thousands
of visitors are expected to turn up at the Royal City Trade Centre in Thanh
Xuan District to browse the 150 bamboo stalls, divided into geographic
sections. For example, the Da Lat section will offer visitors a taste of
Economic
counsellors from foreign diplomatic delegations have been invited to join the
event, many representing key markets around the world, Anh said. The event
will also see the participation of representatives of foreign enterprises,
restaurants and hotels, distributors, producers and processors.
MoF
urges simpler customs procedures
The
Ministry of Finance (MoF) has asked 11 concerned ministries to join hands in
simplifying administrative procedures to create the most favourable
conditions for import-export activities.
In
particular, the MoF has asked the ministries to review and issue their list
of import-export items to be subjected to quarantine to avoid environmental
pollution, including animals, plants and health care products, as well as
toxic chemicals and pesticides.
Upon the
request of the MoF, the General Department of Customs (GDC) has made every
effort to shorten customs declaration procedures to make it easier for
businesses.
In
recent years, the GDC finished a draft plan to improve the effectiveness and
efficiency of specialised inspections of imports and exports at the border
gates with new features to facilitate and manage import and export
activities. The draft plan aims to set up specialised inspection centres at
the border gates, where a large volume of imports and exports need to be
checked every day.
Under
the plan, from now till 2020, the GDC will focus on building two centres in
the cities of Hai Phong and HCM and three others at mainland border gates in
the
Customs
staff are required to conduct specialised inspections by using optimised
processes to get quick and accurate results and shorten customs clearance
time for businesses.
On the
other hand, importers and exporters with specialised goods for inspection
should go through such centres to make the process quick and easy for them.
A fair
to promote cross-border trade and tourism between
A series
of events are scheduled to attract participants, including exhibitions,
festivals and cooperation forums.
According
to the organising board, the event aims to strengthen the friendly ties
between the two nations as well as encouraging trade in border areas.
Thai
businesses eye up Quang Tri province
A group
of businesses from northeastern
During
the meeting, the Thai group was given up-to-date information on a number of
issues they showed interest in, including silk trade from Vietnam to
Thailand, the process of establishing a representative office, provincial
investment procedures, and local regulations on traffic and labour, said
Chief of the Secretariat of Udon Thani province, Surasac Kasemsu.
Director
of the provincial Foreign Affairs Department Hoang Dang Mai said the
province, as a gateway to the East-West Economic Corridor (EWEC), had been
focussing on infrastructure development as well as establishing cooperation
ties and promoting trade, tourism and cultural exchanges within the region in
recent years.
He also
pledged to facilitate trade and consumption of Thai commodities.
Thai
businesses have invested in
Mai
suggested the two localities’ business circles boost trade and bilateral
cooperation in the fields of agricultural and forestry processing, commercial
infrastructure development, tourism, logistics and services along the EWEC
route.
Additionally,
the Thai side should actively engage with trade fairs and exhibitions in
order to research
VSIP
Quang Ngai progresses on right track
The
Vietnam-Singapore Industrial Park (VSIP) based in the central
The move
ultimately attracted nine foreign invested and one domestic projects
totalling US$164.3 million for the park just after over one year, according
to the park management board.
The
projects include URC Central and Liwayway of the
They are
engaged in producing beverage, confectionary, fibres, footwear, food,
industrial boilers, and apparel.
According
to the VSIP management board, three projects are likely to become operational
this year, while three others will be finished in 2015. The projects require
a total workforce of 8,000 labourers.
So far,
162 ha of the park’s 168-ha phase 1A were cleared with 100 ha smoothed. Work
on 10km irrigation canals and 1.5km water supply pipeline was accomplished
while the construction of 4.4km main road and a wastewater treatment plant
with a daily capacity of 6,000 cubic metres is underway.
Construction
work of a 3,000 sq. m fire rescue and fighting centre has also completed by
90%. Meanwhile, work on a VSIP Quang Ngai office building covering 3,500
square metres will be launched later this year. The project has a total
investment of nearly US$23 million.
VSIP
Quang Ngai and Son Tinh district are working together on the construction of
an infrastructure system for a 13.4 hectare resettlement area for local
people who had given land for the project.
At a
recent working session with VSIP Quang Ngai Ltd., - investor of VSIP Quang
Ngai project, Vice Chairman of the Quang Ngai provincial People’s Committee
Pham Nhu So directed provincial departments to coordinate closely with the
park management board to ensure the progress of the project.
He said
the province considers the success of the project as its own.
Licensed
on April 23, 2012, VSIP Quang Ngai covers a total land area of 458 hectares.
The project, which has a total investment of US$125.35 million, was launched
in mid-September last year.
It is
expected to fuel the socio-economic development of the province, creating an
attractive investment environment for the locality as well as job
opportunities for tens of thousands of local labourers.
Vietnam
exports urea to New Zealand
The
Petroleum Fertiliser and Chemicals Company (PVFCCo) has completed procedures
to export 500 tonnes of urea fertilizer produced by Phu My fertilizer plant
to
This is
the first shipment in Jumbo packaging form with 1000kg of fertilizer a bag.
To meet
its business partners’ urea import demand, PVFCCo has installed a Jumbo
packaging system at Phu My Fertilizer Plant with a total investment
capitalisation of VND7 billion.
Duong
Tri Hoi, Deputy General Director of PVFCCo said the first shipment of urea to
US
continues anti-dumping tariffs on
The
United States International Trade Commission (USITC) has decided to keep anti
dumping tax on pangasius imported from
The
decision was made following the commission’s second investigation review for
anti-dumping duties on pangasius imported from
The
USITC stated that the revocation of the tariffs on the Vietnamese goods would
be likely to lead to “continuation or recurrence of material injury” to the
Thai
Lekise brand enters
Lekise
Lighting Co, Ltd., one of the largest producers of lamps and lighting
equipment in
The deal
designated TODIMAX as the sole agency authorised to retail Lekise brand
lighting products to consumers in the Vietnamese market.
Speaking
at the signing ceremony, a TODIMAX representative said it would begin
retailing the lighting products to its stores and supermarkets nationwide.
Later, these products will be used for civil engineering projects, the
industrial sector and public lighting systems and interior decoration.
Lekise’s
lighting products have incorporated the latest of Japanese technological
advances and exported to 40 nations around the globe.
Branding
key to export growth, experts advise
It's
becoming urgent for businesses to invest in branding to help them penetrate
and expand their markets better during global integration.
The Viet
Nam Chamber of Commerce and Industry and Trade (VCCI) and the Association of
Vietnamese Retailers jointly organised a workshop yesterday on investing in
branding and spending on advertisements, in response to a recent proposal to
remove the cap on advertising expenses.
Experts
from the Nation Consultancy pointed out at the workshop that the export of
raw materials and products, which often helped a third party to make profits,
and the lack of foreign market information and knowledge were among the major
problems of Viet Nam.
Experts
pointed out that these problems would lead Vietnamese products to have low
added value and low ability to engage in the value chain.
Stephen
Kreppel, an expert in nation branding in the Nation Consultancy, said that
exports were important for the economic growth and prestige of
Brands
can be built with sustainable economic development, environment-friendly
policies and social responsibility, together with natural and cultural
heritage and the nation's pride.
He
stressed the important roles of both the government and enterprises in
branding, in which the government would play the role of a supporter, but would
not interfere in brand management.
Enterprises
should also have knowledge about potential markets and the consumers' taste
to create high-profit products and build unique Vietnamese brands, he said.
Pham Thi
Thu Hang, general secretary of VCCI, added that enterprises needed to invest
further in developing their brands to have a worldwide reach.
PVN
buys stake in petrochemical complex
The Viet
Nam Oil and Gas Group (PVN) bought a 11 per cent stake in the National
Chemicals Group (Vinachem) in the Long Son Petrochemicals Complex project on
Monday.
According
to both parties, the capital transfer, which was included in the government's
restructuring plan national organisations, was approved by Prime Minister
Nguyen Tan Dung in August.
The
transfer of stake aims to use the investment to speed up the US$4.5-million
Ba Ria-Vung Tau-based Long Son Petrochemicals project.
Before
the transfer, PVN contributed 18 per cent of the project capital and Vinachem
contributed 11 per cent.
The
400ha petrochemical complex, considered the biggest of its kind in
It is
designed to produce 2.7 million tonnes of polyethylene and polypropylene, the
raw materials required for the production of polyvinyl chloride (PVC) and
other kinds of chemical products, to serve the increasing demand from the
domestic petrochemical industry.
According
to PVN, the local industries require up to $2 billion worth of high-quality
plastic resins annually.
The
project is expected to complete in the second quarter of 2019.
Source:
VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
|
Thứ Tư, 19 tháng 11, 2014
Đăng ký:
Đăng Nhận xét (Atom)
Không có nhận xét nào:
Đăng nhận xét