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BUSINESS IN BRIEF 7/11
Fitch
upgrades
Ratings
agency Fitch has upgraded
Fitch
said in a statement on its website on October 3 that
The
issue ratings on
According
to Fitch, Vietnam’s inflation has been moderated to 3.2% in October this
year, down 5.6% from an average of 6.6% in 2013 while economic growth
remained relatively strong at a three year average of 5.6%.
Fitch said
macroeconomic stability has helped
Meanwhile
strong FDI inflows averaging 4.5% of GDP during 2011-2013 have contributed to
a balance of payment surpluses and modest foreign reserve accumulation.
Business matching program bears fruit
Enterprises
in HCMC and other provinces have clinched more than 430 contracts with a
total value of over VND19 trillion since the city launched a supply-demand
connectivity program nearly three years ago.
Le Ngoc
Dao, deputy director of the HCMC Department of Industry and Trade, unveiled
the impressive numbers at a recent meeting with industry and trade leaders.
The
third conference of the program takes place on October 31 with the
participation of more than 1,100 enterprises from 38 cities and provinces
nationwide.
To
effectively implement the trade cooperation program between HCMC and other
localities in the southeastern and southwestern regions in 2011-2015, the
HCMC Department of Industry and Trade kicked off the first connectivity
program in December 2012 to help localities sell farm produce, processed
food, and specialties to distributors and retailers in HCMC.
The
meeting that year attracted 198 enterprises from 14 provinces and cities and
43 deals were struck. As a result, many special products like pia cake of Tan
Hue Vien in
One year
later, the program was expanded and the number of participating businesses
rose to 347. Not only enterprises of 20 southern provinces but also those of
Bac Giang,
The
program enabled enterprises from other provinces to find outlets for their
products in HCMC while partners here in the city were able to expand their
distribution networks to other parts of the country to increase sales.
In
addition, enterprises in HCMC joined the price stabilization programs in
other provinces like Vinatexmart and Co.opmart.
Talking
about the fruit of the supply-demand connectivity program, Ta Minh Son,
director of Tu Son Supermarket in An Giang Province, said his supermarket has
benefited much from the program.
Son
added that of 100,000 products at the supermarket, 70% are supplied by
partners in HCMC and annual growth at the supermarket is 30-35%.
With
good results in previous years, the scale of this year’s program is bigger
with enterprises coming from 38 localities nationwide, including HCMC, 20 in
the southern region and 17 in the northern, central and Central Highlands
regions.
Bond
assoc mulls credit rating agency
The
Vietnam Bond Market Association (VBMA), which groups 54 banks, securities
firms, insurers, fund managers, finance companies and law firms, is working
on a plan to set up a credit rating agency (CRA).
If the
agency is forthcoming, it would be the first of its kind in the country to be
established based on Decree 88/2014/ND-CP on CRA issued by the Government in
September. The decree will take effect next month.
VBMA
general secretary Do Ngoc Quynh said the association has discussed with
foreign partners and is now looking for suitable partners to establish a CRA
in the country.
CRA has
been familiar to international financial markets but it is a new model in
CRA is a
positive sign to the market and investors as it is expected to boost
transparency of the debt market, Quynh said.
Speaking
at VBMA’s 2014 annual meeting last week, Do Viet Dung from the Finance
Ministry’s bank and finance department said around VND30 trillion worth of
corporate bonds are issued each year.
The
total outstanding loan of the bond market has been around 2.3% of gross
domestic product (GDP), a small ratio compared to regional countries.
However, the corporate bond market still has huge potential.
“We hope
that there will be CRA establishment applications in the coming time. The
Ministry of Finance is considering presenting a specific project to the
Government to regulate the number of CRAs in the country,” Dung said.
Then,
the ministry will evaluate and adjust bond issue conditions stipulated by
Decree 90 to suit the development of the bond market. The ministry will
consider adding a condition that bonds must be rated by one CRA or more.
VAMC is
going to build a corporate bond information center with technical support of
International Finance Corporation (IFC). Members of the association are
collecting data for the center, which will help improve market transparency
and facilitate policy building of administering agencies.
The
association will also work out plans to develop new products for the bond
market and announce a benchmark inter-bank lending rate.
Woes
dog SMEs
Small
and medium enterprises (SMEs) have shown signs of being succumbed to hard
times though the business landscape in the country has begun improving,
according to a report of the National Financial Supervisory Commission.
The
commission said the business efficiency of the group of 100 enterprises with
combined assets of less than VND100 billion has declined steadily since 2008.
The
return on equity (ROE) and return on asset (ROA) of this group tumbled from
4% and 2% in June 2008 to minus 2% and minus 1% respectively in June this
year. In October, their total corporate income tax arrears increased 12.9%
against late 2013.
In the
mid-term, private investment will remain limited as credit will not grow as
strongly as expected due to low aggregate demand. Enterprises are still
grappling with financial constraints and the real estate market has shown
little sign of recovering.
However,
many companies have performed better in January-October. A survey of over 800
to 1,000 non-financial firms listed on local stock exchanges HOSE and HNX,
and UPCoM, a market for unlisted public companies and some public firms,
indicated their average revenue has increased since the second quarter of
2013.
In the
first six months of this year, their average revenue surged 20.1%
year-on-year, the strongest rise since 2009. Their total assets and equity
also jumped 19.44% and 18.92% respectively.
The
figures proved that business confidence of the sector has improved as the
stock market has moved up. Ending the second quarter of 2014, the VN-Index
gained 18.16% from the previous quarter.
The
Business Climate Index (BCI), a regular barometer of the business sentiment
among European companies in
In this
year’s first half, ROA and ROE of non-financial enterprises reached 1.49% and
3.7%, up by 0.28 and 0.54 percentage point year-on-year. Corporate income tax
also jumped 37% after falling 7% in the first six months of last year.
Between
January and October, there have been 60,000 newly-established firms while
13,000 companies have resumed operations after halting business earlier.
However, nearly 54,000 enterprises have stopped operations or been dissolved.
Word
Bank says will fund IT application in agriculture
The World
Bank (WB) will fund US$200-250 million to support the application of
information technology (IT) in agricultural development of
So far,
the WB has funded around US$100 million for the IT application in
The
global lender has supported
Speaking
at the session in
Therefore,
the country should improve output and efficiency of the sector, and IT can
help do that.
IT will
play a major part in agricultural restructuring in
Le Quoc
Doanh, Deputy Minister of Agriculture and Rural Development, said agriculture
is being restructured to raise its output and competitive capacity, and IT
application is important for
Pham Kim
Son, head of the
Since
2010 to date,
Deputy
Prime Minister Vu Duc Dam told the event that IT brings more opportunities
for farmers and
An
overview of the mobile marketing market and the steps of building brands
based on mobile technology were presented at the Mobile Marketing Association
Forum Vietnam 2014 (MMAF) in HCMC on October 30.
The
forum themed re-imagining mobile was attended by 400 representatives from
companies active in different fields in
Experienced
speakers from leading companies shared mobile marketing trends with
participants as well as discussed ways to get closer to consumers through
mobile marketing.
In
According
to Kantar Media, smartphone users account for 34.3% of the country’s
population. The people aged 20-24 are the biggest group to own smartphones
(56.5%) and they mainly use their devices to access the Internet to watch
television.
New
consumer behaviors and how consumers can know about a certain brand, product
or service via the mobile channel are the major questions of marketing
experts.
At MMAF,
the organizers also introduced the Smarties Vietnam Awards 2014 which
recognizes innovative and creative mobile marketing campaigns in the country.
Bike
market gets more hectic
The
local motorbike market is witnessing a fiercer competition as motorcycle
producers vie for bigger share by launching new models.
Yamaha
Motor Vietnam (YMV) on Monday unveiled three new versions of Nouvo scooter
including standard FI 2015, RC and GP with prices ranging from VND33.9
million to VND36 million a unit.
YMV’s
survey showed that its Nouvo had a market share of 14% among sports scooters
in
The
launch of Nouvo FI 2015 equipped with global positioning system (GPS) aims to
compete against Honda’s AirBlade scooter.
The
local market has seen a fierce competition among major producers such as
Honda, Yamaha and Piaggio among others. Sales of scooters are faring better
than those of gear-box motorbikes.
According
to motorcycle makers, scooters are making up about 40% of the domestic market
for two-wheeled vehicles. Last year saw the total sales of scooters reach
nearly 2.8 million units.
Aside
from the domestic makers, some motorbike importers have also unveiled new
scooter models.
Motorrock
imported high-class Benelli Caffé Nero 150 scooter earlier this month, which
is seen capable of competing with Honda’s high-class SH models. Its price is
equivalent to SH 125 and around VND10 million cheaper than SH 150.
Some
motorbike traders are also seeking to branch out into the market segment of
50cc and clutch vehicles to which Honda Vietnam has paid less attention. Over
the years, Honda has mostly produced gear-box motorbikes and 110-125cc
scooters.
However,
Honda Vietnam began unveiling a clutch model of MSX125 priced at VND60
million earlier this month to challenge Yamaha’s Exciter 135cc.
NFSC
puts 2014 credit growth at 9%
The
National Financial Supervisory Commission (NFSC) has projected credit growth
in the banking system at 9% this year though it might pick up significantly
in the two final months of this year.
If
NFSC’s forecast is right, the nation would fail to realize the credit growth
target of 12% or higher for 2014 as announced by the central bank’s governor
Nguyen Van Binh earlier this year.
According
to a report prepared by NFSC for the Government’s regular cabinet meeting in
October, local banks reported credit growth of 7.26% at the end of September,
higher than the 6.2% in the first nine months of last year.
Meanwhile,
figures released by Binh at the Government’s press briefing this month showed
credit had grown 7.46% as of October 20 compared to 6.43% in the same period
of last year.
The
central bank aims to obtain a credit growth rate of 12-14% this year but it
is not easy to reach the target, said NFSC vice chairman Truong Van Phuoc.
Though
the central bank eyes high credit growth this year but a 9% rate is still
fine, Phuoc said.
Regarding
concerns over higher year-on-year economic expansion despite low credit
growth, Phuoc said VND4,000 trillion worth of credit could fuel economic
growth. Therefore, the nation’s gross domestic product (GDP) still expands
despite lower-than-expected credit growth.
Phan
Thiet golf course removed
The
Prime Minister has approved removing Phan Thiet golf course, better known as
Ocean Dunes, from the national zoning plan for golf courses until 2020.
The
national zoning plan for golf courses was approved by the Prime Minister in
2009 and adjusted in May 2014.
As
reported by the Government portal, the government of
The
Government has told the Ministry of Planning and Investment to revise the
list of golf courses nationwide in line with the socio-economic development
of localities and report the result to the Prime Minister.
In
November last year, Rang Dong Joint Stock Company acquired the 62-hectare
golf course for US$20 million. In March this year, the Phan Thiet-based
company informed member golfers that the golf course would be closed, so its
members would be transferred to Sealinks, which is some 10 kilometers from
Phan Thiet golf course.
But
members of the golf course still criticized the company over the shutdown and
demanded proper compensation. The company explained that the golf course in
the central area of
Therefore,
in December last year, Rang Dong asked for the provincial government’s
permission to change the
Despite
strong outcries from member golfers and unsettled compensation with them,
Rang Dong still closed the golf course to players in April. One month later,
the province requested the Government to remove the golf course from the
national zoning plan for golf courses, but on May 25 the Prime Minister
issued Decision 795 allowing the golf course in the national zoning plan.
More
than four months later, the Prime Minister agreed to take the golf course out
of the zoning plan.
Rang Dong
calculated that if the golf course is converted into a residential project
and the State budget will collect more than VND1 trillion. The company plans
to spend VND4 trillion developing the residential area comprising of villas,
garden houses, townhouses, a kindergarten and greenery.
Nguyen
Manh Hung, deputy secretary of the province’s Party Committee, once said as
the business efficiency of Phan Thiet golf course was low, its tax
contribution to the State was small, so the land use conversion would help
reduce losses for the company.
Dai-ichi
Life posts strong new premium rise
Dai-ichi
Life Insurance Company of Vietnam Ltd. (Dai-ichi Life Vietnam) on October 30
said its new business premiums in the first nine months of this year
increased 33% year-on-year to more than VND640 billion.
Total
premiums of the Japanese-invested life insurer surpassed VND1,690 billion in
the period, up 36% over the same period last year. Its preliminary profit was
estimated at VND160 billion.
In
January-September, Dai-ichi Life
In July,
Dai-ichi Life
Also in
July, the company reached the milestone of serving more than one million
customers after seven years of operation in
Dai-ichi
Life
Dai-ichi
Life
Doosan
Vina ships desalination evaporator to Saudi Arabia
Doosan
Heavy Industries Vietnam (Doosan Vina) has shipped the final of four
4,500-ton desalination evaporators to the Yanbu Phase III seawater
desalination project in
The
company said in a statement that this is the eighth desalination plant that
the company’s water shop has completed since it started production in 2009.
Ryu Hang
Ha, senior vice president of Doosan Heavy Industries Korean and CEO of Doosan
Vina, said in the statement that the Yanbu Phase III contract for four
desalination units was signed in March last year and that the company had
completed shipment of these “Made in Vietnam” products from its Quang Ngai
complex.
Each of
the four evaporators is equal to the size of a football pitch, several
stories tall and capable of producing 95 million liters of fresh water per
day. The four units will provide enough water to meet the daily needs of
several million people in
Credit
growth expected at 10% this year
Though
the central bank cut deposit rates and adopted measures for monetary easing
in an effort to spur credit growth, HSBC Bank projected local banks would
obtain a credit growth rate of 10% this year.
The 10%
credit growth is lower than the target of at least 12% set by the State Bank
of
HSBC
said in its recent report that the central bank is trying to do what it can
to boost domestic demand and hoped that the reduction of the deposit cap will
fuel spending and lead banks to lower lending rates.
“We
believe the move is part of a seasonal boost to achieve the 12-14% credit
growth goal as well as push up domestic demand. While we expect credit growth
to accelerate, we forecast lending to expand by 10% this year and next,” it
said.
Early
this week, the central bank announced that it would cut the dong deposit rate
to 5.5% from 6% from on October 29 and the
In the
report, HSBC expected the nation’s gross domestic product (GDP) to gradually
accelerate thanks to strong export performance but still remain below trend.
Inflation will likely be manageable too as oil prices are subdued and supply
of food is ample.
“Low
domestic demand and limited depreciation of the currency also help temper
inflationary pressure. Given the subdued appetite for consumption, we do not
expect the reduction of the deposit cap to spur spending significantly,” the
bank said.
Meanwhile,
ANZ in a quick report released on October 29 said the continued softness in
inflation may give the central bank scope to further ease monetary policy in
the next two months in the hope of reaching its 12-14% credit growth target.
Headline
inflation declined further to 3.23% year-on-year in October, taking to an
average to 4.47% since early this year. Unless economic activity picks up in
the last couple of months of the year, inflation will likely be below 5%.
However,
ANZ said sluggish credit growth at 7.85% as of October 24 is far from the
central bank’s target.
The
central bank expected that further monetary easing will sufficiently prop up
credit growth to reach its full year target of 12-14%. Despite the ample
liquidity, banks remain cautious of extending credit so long as there is lack
of clarity with the structural problem of non-performing loans.
“We
expect extraordinary incentives to be introduced to the banking sector in the
last couple of months of the year in aid of credit growth. However, we are cautious
about whether these incentives will really alter lending practices,” ANZ
added.
Last
year, the credit growth target was realized following temporary incentives.
Upon their expiration, outstanding credit contracted in the first quarter of
this year.
Transporters
forced to register 3% charge change
All
transport enterprises changing their freights by 3% either side of the
previous registered frames will have to register the new rates with competent
agencies, according to a circular due to take effect on December 1.
According
to the joint circular of the Ministry of Finance and the Ministry of
Transport, in case the adjusted rates do not exceed 3%, firms still have to
notify the competent agencies in writing.
For
example, a company that declared freight charges at the Department of Finance
on June 1, 2013 and then revised up the fees by 2% on January 1, 2014 will
have to send a report on the change to the department.
If it
continued to raise the charges again by 2.5% on June 1, 2014, then the
aggregate change is 4.5%, higher than the regulated rate of 3%. In such a
case, the company will have to register the new charges with the finance
department.
Transport
operators on fixed routes, buses and taxis are required to work with the
competent agencies at least five days before adopting the new charges.
Apparel
industry poised for strong growth
Nguyen
Dinh Truong, vice chairman of the Vietnam Textile and Apparel Association, or
Vitas, said many opportunities will be ushered in by FTA for local
enterprises to grasp, but they must prepare themselves first. Truong was
speaking on the sidelines of the 14th international trade fair for apparel
machinery and technology known as VTG 2014 that opened in HCMC on October 29.
“Favorable
conditions will be there for local enterprises when several FTAs such as the
Vietnam-South Korea FTA, the free trade pact between
Thus, in
the next ten years,
However,
“opportunities come alongside challenges,” Truong said, stressing local firms
need to improve productivity and quality, and sharpen competitiveness.
The
domestic apparel industry has fared quite well this year. The industry has
obtained export revenue of US$18 billion in the year to date, growing 19%
year on year, and as the country spent US$11 billion on apparel imports, the
industry enjoyed a trade surplus of US$6.2 billion in the period.
It is
likely
Pham
Xuan Hong, chairman of the HCMC Association of Textile, Garment, Embroidery
and Knitting, said foreign buyers tend to shift orders to
VTG 2014
is taking place at Tan Binh International Exhibitions and
Exhibitors
at the event remarked that the demand for apparel technology and equipment is
poised to increase strongly in the next few years.
Jorge
Fernandes, sales director of the Portugal-based Sroque that attends the trade
fair for the first time, said
Ngo
Thanh Hiep, director of HCMC-based Tam Phu Hiep Company, said his company
this year has sold 60 textile machines, and the total number to be sold this
year is expected at 80 sets compared to 60 sets last year.
Good
Japanese foods at low prices
More
food shops and eateries have been opened in HCMC in recent times to serve
sushi, Udon noodle, takoyaki (grilled octopus cake), rice served with seaweed
and other Japanese foods at reasonable prices.
M-H
sushi shop on
Those
who pass the shop during its opening hours from 6 p.m. to 9 p.m. can see a long
line of diners waiting for their turn to be served. Some have to wait for
even 40 minutes but they are happy to do that as besides low-priced Japanese
foods they can observe the chef preparing sushi rolls.
A food
court at Aeon Mall shopping mall in Tan Phu District offers locals a chance
to taste Japanese foods at cheap prices. Customers can eat at the shop or
take away sushi whose prices are from VND5,000 to VND10,000 per roll.
Many
food shops in town serve takoyaki, a ball-shaped snack made of wheat flour
and filled with minced octopus, teriyaki grilled chicken, crab and sausage to
gourmets. Tako Oh shop on
What
people like most about takoyaki cake is its taste and beautiful yellow cover,
diverse sauces and the eye-catching toppings on this cake. As usual, a chef
sprinkles grinded seaweed and dried fish on top of a cake with takoyaki sauce
and mayonnaise. While diners are waiting for foods to be served, they can see
the chef grilling the cake.
There
are a wide selection of Japanese-flavor drinks at the shop with prices
ranging from VND23,000 to VND28,000. Matcha milk tea is a favorite choice of
many people.
Marukema
Udon, a newly-established restaurant at the corner of Truong Dinh and Ly Tu
Trong streets, is also an emerging dining venue for diners who prefer a
budget eatery serving Japanese foods. There’s an open kitchen for guests to
learn about the cooking process of making the noodle.
The
restaurant sells Udon noodles at VND39,000-79,000 and tempura and sushi at
VND10,000-30,000.
Prospects
for the African-Middle Eastern markets
Over
recent years,
For
these businesses, the key to reaching the next level will be learning to do
business in the African and Middle Eastern way, rather than simply trying to
impose the Vietnamese business model in a foreign market.
As of
the end of 2013,
Viettel
alone had invested US$400 million in the telecoms sector in Mozambique and
Cameroon, while Vietnam Oil and Gas Group (Petro Vietnam) had pumped more
than US$300 million into the oil and gas field in Algeria, the Republic of
Congo and Madagascar.
In 2013
the nation’s total import-export turnover with
The
country’s key export items to
The private
sector has also invested in areas such as construction, automobile, garments
and textiles, electronics, beverages, wood processing, gold and mineral
resources.
On the
other side of the coin, nine African nations have invested US$185.63 million
in 72 projects in
Tran
Quang Huy, head of the Ministry of Industry and Trade (MoIT)'s Africa,
The
Government has been diligent in its efforts to advance cooperative relations
with African nations and promote trade and investment in areas of the
nation’s strengths.
However,
local businesses still face many challenges. For example, exports to
They
should also strictly comply with laws and regulations pertaining to labelling
of the foreign country, Huy added.
Hanoi
Trade Promotion Centre Director Nguyen Thi Mai Anh says businesses should
devise strategic plans to increase export turnover and not rely on the the
centre in the future.
To
realize
What do
businesses have to prepare for?
Director
Le Hoang Oanh from Avina Logistics Company in turn said logistics have
remained a difficult issue for local businesses that want to export to the
African and
For his
part,
Mr Huy
suggests Vietnamese ministries should strengthen relations with the
African-Middle East nations’ relevant agencies by conducting surveys and
exchanging delegations to take full advantage of the market.
Huy adds
the state agencies should help businesses and associations with trade
promotion activities by participating in fairs and exhibitions, and imparting
market information.
He also
emphasizes the need to improve forecast work and sharpen competitive capacity
to implement export programmes more effectively.
It’s
essential for business enterprises to raise their game if
Sai
Gon Hi-tech Park attracts more investment
Investment
in the Sai Gon Hi-tech Park in the first ten months of this year amounted to
nearly US$1.9 billion, its management said.
It
included $1.4 billion for the Samsung CE Complex Project to research,
develop, and manufacture hi-tech consumer electronics.
Licensed
last month it is the second $1 billion project at the park after Intel's chip
factory approved in 2006.
"This
[Samsung] project indicates the [competitiveness] of the SHTP brand
name," Le Bich Loan, deputy director of the park, said.
She said
work is underway on infrastructure for the Samsung project, which will begin
production next year.
Another
major investor this year is the Sai Gon Industry Corporation, which will
build a $257 million IC (integrated circuit) plant to manufacture RFID chips,
bank cards, and energy management chips.
Construction
of the plant would begin soon and it is scheduled to go on stream in 2017,
the company said.
OneHub
Sai Gon Complex, a $130 million joint venture between the Singapore-based
Ascendas and Saigon Bund Capital Partners (UK), will be a services sector
project built on a 12ha area.
SHTP's
tenants will include Transimex Hi-tech Park Logistics Co, which will set up a
bonded warehouse and logistics services facility at a cost of VND300 billion
(over $14 million).
Le Hoang
Quan, chairman of the city People's Committee, said Samsung's investment at
the SHTP shows the effort made by the city authorities in selecting FDI into
With the
licences issued in October, total investment in the 12-year-old park has
exceeded $4 billion, according to its management board.
Dr Le
Hoai Quoc, head of the SHTP, said nearly 40 per cent of the workers in the
park are college and university graduates, and the value of the products
their companies have churned out so far has exceeded $9 billion, and most of
them have been exported.
He added
that through 2020 the park would focus on efforts to attract hi-tech
investors and increase the rate of locally made parts.
VAMC
needs more power, funding
The Viet
Nam Asset Management Company (VAMC), set up to buy and sell bad debts from
commercial banks, needs to be given greater autonomy as part of efforts to
revive the property market, experts say.
Speaking
at a recent conference organised by property investment magazine CafeLand in
Other
measures that they proposed to revive the property market included
administrative reforms, Land Law amendments and permission for foreigners to
invest in
Many
banks are "half-dead" because they are unable to deal with bad
debts piled up by real estate projects, the conference heard.
Speakers
also highlighted other problems including excessive supply over demand and
difficulties in bringing down housing prices further.
Ho Ba
Tinh, an economic consultant with the Tai Viet Joint Stock Company, said the
Vietnamese property market has gone through three somewhat similar
development phases, hitting a peak and then weakening.
The
market surged in the 1993-1994 but froze from 1995 to1999, soared again in
2001 and 2002 and faced a downturn from 2002 to 2006, hit a peak in 2007-
2008 and has slumped until recently, when some signs of a recovery can be
seen, he said.
Duong
Thuy Dung, deputy director and head of research and consulting services at
CBRE Viet Nam, said investors are now more confident about releasing housing
products into the market because consumption has reached 58 per cent.
In the
past nine months, 8,400 apartments were put on sale in
More
promotion programmes, wide application of deferred payments, a gradual
increase in consumer confidence and key traffic infrastructure constructions
have made the housing market more attractive, Dung said.
Tran
Trong Tuan, director of the HCM City Construction Department, told the
Vietnam News Agency that continued revival of the property market requires
efforts from all sides including investors, customers and management
agencies.
Immediate
and long-term financial solutions and improvements in State mechanisms are also
needed, he said.
He
advised investors to grab market opportunities by planning appropriate
strategies based on improved customer care.
Tuan
also noted that just 3.36 per cent of 1,400 housing projects in the city have
been completed, with 49 per cent are mired in various difficulties.
Since
the beginning of this year, 5,700 apartments have been sold in the city, a
year-on-year increase of 83 per cent. Most of these were apartments with
areas smaller 70sq.m.
Funds
needed for waterway transport
Waterway
transportation in
The city
has around 975 km of waterway that can be used for transport. Around 700 km
of rivers and canals are divided into 106 routes for municipal management.
The city
is linked with the Mekong Delta by the
"It
is difficult to develop because the waterways have not been connected with
road, railway and port systems," Dr. Pham Sanh, a transport expert, was
quoted as saying in Thoi bao Kinh te Viet Nam (Viet Nam Economic Times)
newspaper.
In
addition, bridges in the city are too low for some boats, and big ships
cannot travel on shallow canals.
"Waterway
transport hasn't been included in development plans for the city," he
added.
Most
commodities are transported by road.
"If
waterway transport were developed, there would be less traffic congestion on
roads and crowding at seaport," Sanh added.
By 2020,
sea transport in
In the
master plan, the city would develop public transport on a large scale, as
well as multi-transportation means and logistics systems. To reach the goals,
the city is moving seaports out of the downtown area and widening passage for
bigger ships.
Experts
have also called on the Ministry of Transport to devise a transport
infrastructure strategy.
The
seaports can only receive 30,000 tonne-ships, and most of them are located
inland, which lead to higher expenditures.
However,
Hiep Phuoc seaport recently began receiving 54,000-tonne ships.
In the
near future,
By 2020,
This
year was chosen as the year for waterway tourism in
Foreign
ownership row rages
How to
expand the right for foreigners to buy houses in
According
to the Ministry of Construction that drafted the law, widening foreign
property ownership rights would help stimulate the market and supposedly
shift some of the country’s ‘up-market’ housing.
According
to deputy Truong Trong Nghia from
However,
many other deputies insisted that foreigners should have less rights than
Vietnamese.
Deputy
Tran Van Minh from Quang Ninh claimed the draft was far too generous to
foreigners.
“The
draft law said that any foreigners who have a three month visa to stay in
Deputy
Nguyen Thi Quyet Tam, also from
“It
could be a channel for speculation and we must carefully consider how to
avoid this,” Tam said.
Moreover,
she added that there is a difference in laws between
Tam said
the law should be dragged out in order for foreigners to understand how
Vietnamese property law worked.
The
draft law also added a regulation that all property purchases needed to be
made through banks to ensure that there would not be speculation and currency
laundering.
To avoid
disputes between owners and developers in apartment buildings, the draft law
was also required by the deputies to clearly identify the public and private
space, parking and facilities areas.
In the
five years since foreigners were allowed to buy housing in
The
appallingly low figure has been attributed to the fact there is a complete
lack of realism over property rights for foreigners.
Foreign
nationals currently cannot sub-let their own property and are not allowed to
even sell their housing when leaving the country.
According
to the draft law, foreign individuals and organisations who purchase and own
housing in
In
addition, foreign organisations that own property will be restricted to only
being able to accommodate their own employees.
Source:
VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
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Thứ Năm, 6 tháng 11, 2014
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