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BUSINESS IN BRIEF 15/12
Eleven outstanding banks of standard international payment
honoured
Citi, a leading foreign bank in
This is the 12th consecutive year Citi has acknowledged and
honoured banks in
The award was designed on the basis of the analysis on the
bank's ability to perform payment transactions smoothly, professionally and
thoroughly.
The 11 banks were: Vietcombank, BIDV, Agribank, Vietinbank,
Techcombank, Military Bank, VPBank, ACB, Sacombank, Eximbank and
On the occasion, Citi held a seminar themed Basel III and its
impacts on the operations of the banking sector, international trends and
renewals on payment products and commerce, attracting the participation of
more than 20 domestic banks and senior experts from Citi Vietnam and Citi
Asia-Pacific.
PVN extracts more crude despite falling prices
Vietnam National Oil and Gas Group (PVN) has extracted more crude
oil than the target although oil prices have kept falling on global markets
in the past months.
A source from PVN said the group has realized the target to
pump 16.21 million tons of crude oil from domestic and foreign fields as
assigned by the Government and 9.5 billion cubic meters of gas as of December
9. The volume from the oil fields within
PVN still managed to realize the targets for crude oil and gas
though oil prices have dropped on global markets since late August to around
US$62.48 per barrel on December 9, the lowest in five years.
The volume of crude PVN had extracted is 900,000 tons higher
than its target set earlier this year, which is expected to help increase
export revenues and contribute more to the State budget.
Despite a 40% fall of crude oil prices against the average in
January-September, PVN still wanted extractions to be one million tons of
crude oil and 500 million cubic meters of gas higher than targeted for this
year.
The Ministry of Industry and Trade estimated the volume of
extracted crude oil last month rose 22.3% year-on-year to 1.7 million tons
while the pumping of liquefied petroleum gas (LPG) in January-November fell
10% compared to the same period last year.
The affiliates of PVN beating their oil and gas targets
include Vietsovpetro which has surpassed the target by 250,000 tons, Su Tu
oil fields by 150,000 tons, PetroVietnam Exploration and Production
Corporation (PVEP) by 500,000 tons, Hai Thach-Moc Tinh gas field by 200
million cubic meters, and Lan Tay-Lan Do gas fields by 200 cubic meters.
Crude oil exports inched up 3.2% in November when prices fell
5.6% against October, according to a report of the trade ministry.
Due to strong decreases in oil prices on global markets, PVN
will have to adjust its previous revenue and tax payment calculations for
this year thought it is expected to contribute more to the State budget.
Based on crude oil prices from the year to August, PVN
previously put crude oil prices in the last three months of this year at
US$105 per barrel and the average price of this year at US$110 per barrel, up
US$12 per barrel compared to its earlier estimation. Therefore, the group
eyed VND107 trillion from crude oil sales, or 25.6% higher than estimated.
Deputy Minister of Finance Do Hoang Anh Tuan calculated that
the State budget would lose around VND30 trillion if crude oil prices
averaged out at US$70 per barrel this year.
Tuan was quoted by Tuoi Tre newspaper as saying that the
finance ministry did not ask relevant agencies to raise crude oil extractions
to offset the price fall but the trade ministry and PVN still determined to
tap one million more tons.
Standard Chartered issues bonds for Masan
Standard Chartered Bank Viet Nam Limited on December 9
announced that it has issued the first 10-year bonds worth VND2.1 trillion
(US$100 million) for Masan Consumer Corporation.
Standard Chartered's bonds are guaranteed by the Credit
Guarantee and Investment Facility (CGIF) of the Asian Development Bank (ADB).
Nirukt Sapru, general director of Standard Chartered Bank Viet
November auto sales grow strongly
Auto sales nationwide continued to soar last month, with
nearly 16,000 units delivered to customers, up 7% against the previous month
and 57% year-on-year, according to the Vietnam Automobile Manufacturers
Association (VAMA).
The November auto sales volume was much higher than the
monthly average of 12,000-13,000 units in the first months of this year.
November was the 20th consecutive month to see auto sales
growing against the same period last year. The number of passenger cars and
trucks accounted for 10,068 and 5,886 units respectively.
Last month saw completely built-up (CBU) autos imports
reaching 4,363 units, up 37% against October, while locally-assembled cars
edged down 1% year-on-year to 11,591 units.
Many automakers reported strong sales growth last month.
Following
Statistics of VAMA showed more than 137,600 vehicles had been
sold as of November, jumping 41% compared to the same period last year with
cars and trucks making up nearly 87,220 and 50,384, up 42% and 40%
respectively. The number of locally-assembled units soared 33% year-on-year
to 103,000 while CBU auto imports climbed 76% to 34,500.
VAMA forecast auto sales could reach 150,000 units this year,
up 36% against last year.
Automakers have launched new models and promotions to attract
customers in the run up to the Lunar New Year holiday, Tet, when demand often
soars.
Euro Auto has introduced new BMW M3 sedan and Honda Vietnam
has offered new Civic and CR-V models.
Thaco PC has unveiled new Mazda 3 models with prices ranging
from VND749 million to VND882 million.
Sacomreal issues shares to raise capital
Property developer Sacomreal will issue more than 37.5 million
shares to increase its charter capital to nearly VND1.88 trillion (US$88.26
million).
Equity holders will be allocated with 7.5 million shares,
while 30 million shares will be sold to existing shareholders at VND10,000
per unit. Shareholders need to register to participate during the purchase
period, which will be from January 15 to February 9 next year.
The company will use VND250 billion ($11.7 million) from the
issuance proceeds to reduce debts and add to their working capital.
Government bond yield rises
Government bonds issued by the State Treasury with three- and
five-year terms and worth a total of nearly VND2.2 trillion (US$103.3
million) were bought with increasing yields on Thursday.
The yields for the three – and five-year bonds were 5.2 and
6.05 per cent, respectively, which were both higher by 0.2 per cent than the
interest rates on December 4.
The State Treasury has raised over VND195 trillion ($9.2
billion) through the selling of bonds since earlier this year.
State fertiliser firm raises $74m in IPO
PetroVietnam Ca Mau Fertilizer Company Limited has raised
nearly VND1.58 trillion (US$74 million) from its initial public offering on
Thursday at the HCM City Stock Exchange.
PVCFC said it successfully sold all of around 129 million
shares in the IPO at an average price of VND12,251, VND251 higher than the
initial price. The shares account for 24.36 per cent of the company's
capital.
The auction saw 1,303 investors registering to buy 141.4
million shares, or 10 higher than the number offered.
The company said 24 domestic and two foreign organisations bid
for 66.3 million and seven million shares respectively, while 1,265
Vietnamese individuals bid for 68.1 million shares and 12 foreigners
registered to buy 35,100 shares.
The highest price was VND24,000, and the lowest, VND12,100.
The IPO has spurred its chartered capital to nearly VND5.3
trillion ($248.35 million).
The Viet Nam National Oil and Gas Group (PVN) remains the
company's largest share holder after the IPO with a 51 per cent stake.
The company plans to sell another 129 million shares to
strategic investors, who it hopes will strengthen its finances and management
and help improve its performance.
Bui Minh Tien, general director of PVCFC, said the company is
set to change its name to PetroVietnam Ca Mau Fertilizer Joint Stock Company.
The company will list on the HCM City Stock Exchange next
March.
Debt trading company increases charter capital
The Prime Minister has approved the addition of 3.1 trillion
VND (145.19 million USD) to charter capital of the Debt and Asset Trading
Corporation ( DATC) in the period of 2014 – 2015.
Of the amount, 2.5 trillion VND (117.09 million USD) will come
from the fund supporting the re-arrangement and development of enterprises
and the rest from other regulated financial sources.
The DATC, founded in 2003, operates under the Finance Ministry
in a bid to settle bad debts.
In 2013, the corporation's total revenue was 530 billion VND
(24.09 million USD), including that from debt trading activities of more than
326 billion VND (14.82 million USD). It focused on negotiations with
commercial banks to buy bad debts of mainly State-owned groups and corporations,
and restructured five State-owned enterprises into joint-stock companies.
French firms supply aluminium technologies to local companies
A number of French firms have succeeded in their goal to
provide local partners with technologies to directly produce aluminium from
Frederic Sanchez, president of the France-Vietnam Medef
International Business Council and chairman of French industrial engineering
FIVES company, told VIR that FIVES had just inked a memorandum of
understanding with a domestic private firm to transfer technology that
allowed the direct production of aluminium from bauxite in Vietnam.
The local partner’s name however, was not revealed.
Other sources however did say that the amount of the
investment was significant and that around five French firms were providing
the technology to Vietnamese partners with total contract values in the
hundreds of millions of dollars.
Sanchez said
“
Aluminium is used for production in many industrial sectors
like automobiles, motorbikes and aircraft.
In early September 2014 construction started on
The 114 hectare plant, invested in by locally-owned Tran Hong
Quan Trading Ltd, is located in the Central Highlands
SBV imposes penalties for empty ATMs
The State Bank of Vietnam (SBV) will begin imposing penalties
of VND10-15 million on banks with ATM machines that run out of money or are
taken out of service without a 24-hour warning.
The decree on administrative fines in the banking sector takes
effect today, December 12. Banks will be fined VND15 million (700 USD) for
ATM machines that run out of cash. A fine of VND10-15 million will be imposed
on banks that suspend ATM operations without at least 24 hours notice.
Banks that fail to maintain customer services, as well as
those that install, move ATM locations or suspend operations of ATMs, will
also be fined if they have not done so in accordance with regulations. The
SBV has asked banks to maintain good customer service during the time of
soaring demand at the year's end.
Banks have also also required to raise awareness about
criminal activities and expeditiously deal with complaints from customers and
the media.
In recent years, customers have had great difficulties
withdrawing their money from ATMs as the demand for cash skyrockets with the
approach of Tet.
Vietnamese workers waiting to draw money before Tet holiday.
The banks were are allowed to increase service fees with the
expectation that they would improve services. However, complaints have
continued to file in about various problems with ATM machines, especially
during holiday seasons.
Int’t conference discusses land issues
Land and certification of relevant documents took center stage
at the third international notarization conference scheduled to take place in
HCMC on December 12-13.
Phan Van Cheo, chairman of the HCMC Notary Association, said
the Government allowed his association to partner with the International
Union of Notaries to organize the conference on notarization for land
documents.
Local and foreign experts and scholars at the event discussed
the fundamental issues of land use rights, land management and usage for
sustainable development. They will also share know-how on property
management, a one-door notarization mechanism, land and house registration,
and taxes.
Other topics included principles for land ownership in
VAMC seeks approval for bad debt auction center
Vietnam Asset Management Company (VAMC) has plans to establish
a bad debt auction center acting as the cornerstone for ushering in an
official debt trading market in the country.
VAMC has sent its petition to the Government. It has plans to
build an information technology (IT) system for the center to facilitate bad
debt monitoring and management, a source told the Daily.
Initially, the center will offer debts and assets with a total
book value of VND150-200 trillion. The center will be put under the
management of VAMC.
According to a leader of VAMC, the Government should give
special power to VAMC to handle bad debts worth at least VND150 trillion that
it has purchased. Meanwhile, relevant administering agencies should join
hands with VAMC to tackle bad debts at credit institutions.
The enterprise also wants to have funds to revise up its
chartered capital soon, get approval for bond, treasury bill and convertible
bond issues or have other plans to take out loans from international
organizations to buy bad debts at market prices. If all the schemes fail,
VAMC would return the debts to banks after five years.
VAMC is also seeking approval to access long-term credits from
international organizations to buy bad debts at market prices. It calls for
foreign and domestic investors to handle bad debts via business
restructuring, mergers and acquisitions (M&A).
Relevant agencies should support VAMC in bad debt settlement,
especially in legal procedures.
VAMC has suggested the Ministry of Planning and Investment and
the Ministry of Construction facilitate foreigners’ participation in the debt
trading process.
Fiber firm sells shares at a premium
Century Synthetic Fiber Corporation (STK) sold five million
shares at an average price of VND21,124 each at its initial public offering
(IPO) Tuesday, well above the starting price of VND18,000.
The enterprise offered three million shares for public auction
at the Hochiminh Stock Exchange (HOSE). Red River Holding, its foreign
shareholder, also offloaded two million shares.
Six organizations and 21 individuals snapped up the five
million shares and foreigners bid for 0.18% of the total put up for sale.
With winning prices ranging from VND22,700 to VND25,000 each
share, the auction brought in over VND120.6 billion. Of the figure, STK got
around VND70 billion.
Earlier, the company expected to mobilize VND54-56 billion to
fund its factory expansion in Trang Bang District,
The project will start running at 50% capacity in the third
quarter of 2015 and at full steam in the first quarter of 2016.
The corporation, which is capitalized at VND393 billion, has
plans to list on HOSE in the second quarter of 2015. It plans an annual
dividend payment at 15% for shareholders in both cash and stock.
Greenback still firm against local currency
Though the central bank has sold a huge amount of foreign
currencies to stabilize the market, the exchange rate between
Vietcombank sold U.S. dollar for VND21,385, up by VND5 against
the previous day and VND25 from late last week. Eximbank quoted the selling
price a dollar at VND21,390 and the buying price at VND21,320, or VND15 lower
than at Vietcombank.
The forex has increased around 1% compared to a year ago. On
December 9 last year, Vietcombank adjusted up dollar prices to VND21,300 and
VND21,600 for buying and selling respectively.
Earlier, the central bank sold around US$1.5 billion to
stabilize the forex market, sending the exchange rate down slightly but the
level is still high. The dollar price has been hovering at VND21,380 since
last week.
As usual, the exchange rate often fluctuates strongly at
year-end given high pressure on bank debt and goods import payments. The
central bank has allowed more borrowers to reach foreign-currency credits,
thus pushing dollar prices up further.
On the unofficial market, a dollar was sold at VND21,440 while
buying prices were from VND21,400 to VND21,410.
However, the greenback depreciated on the world market. At
2:00 p.m. Tuesday, the USD Index was 89.05 points, down by 0.13 point, or
0.15%.
MoIT Deputy Minister makes proposals to spur India-CLMV trade
Deputy Minister of Industry and Trade Do Thang Hai introduced
a six-point proposal to stimulate trade and investment among CLMV nations at
a business forum held December 11-12 in
Those in attendance at the event included hundreds of
representatives from the CLMV countries of –
Hai also suggested that CLMV members create a free trade area
and eliminate trade and investment barriers to each other’s businesses and
proposed
Hai stressed the need for CV countries to simplify
administrative procedures and make them highly transparent by installing
modernized customs systems, and strengthen collaboration within the
ASEAN-India cooperation framework.
Vietnamese Ambassador to India Ton Sinh Thanh in turn
delivered reports and submitted proposals to strengthen all-round cooperation
among
Ambassador Thanh underscored the Government of Vietnam and
The diplomat also expressed his belief that Indian businesses
would seize opportunities to do business with
Meanwhile,
During the two- day session, delegates also agreed to ease the
granting of visas for citizens from CLMV nations and encourage Indian
tourists to travel to these nations, promote people-to-people exchange and
finalize bilateral tax agreements with CLMV nations, establish an ASEAN-India
Trade and Investment Centre.
Speaking at the closing session, Indian Deputy Foreign Minister
Anial Wadhwa said he hoped that both sides would make great strides in
accelerating the relationship between
He said the government of
He stressed the necessity to enhance trade between
Wadhwa also expressed hope that the Myanmar-India-Thailand
tripartite highway would be linked to
ASEAN, RoK to strengthen links
ASEAN and South Korean leaders have agreed to conclude
negotiations on the Regional Comprehensive Economic Partnership (RCEP)
agreement by the end of 2015.
In a joint statement issued at the end of the ASEAN-RoK
Commerative Summit 2014 yesterday, they also mentioned several other issues
that have been agreed upon.
The summit was held in the South Korean city of
The joint statement also mentioned specific measures to
further deepen the two sides' ties in all aspects.
The two sides will formulate an action plan for the 2016-2020
period, and effectively implement co-operation projects in priority areas for
mutual benefit.
They will maximise benefits of the ASEAN-Korea Free Trade
Agreement (AKFTA) and strive to raise two-way trade to US$150 billion by 2015
and $200 billion by 2020.
They will enhance cultural and people-to-people exchanges to
boost mutual understanding alongside collaboration in human resources
development .
2017 will be observed as the ASEAN-RoK cultural exchange year,
they agreed.
On regional security, the two sides agreed to work together in
ensuring maritime and aviation security and safety in the region, exercise
self-restraint, and settle disputes by peaceful measures without the use of
or threat of force in line with international law, including the 1982 UN
Convention on the Law of the Sea (UNCLOS) and relevant standards and
practices of the International Civil Aviation Organisation (ICAO).
They will promote joint efforts to deal with non-traditional
security challenges like epidemics, environmental pollution and natural
disasters.
Reviewing the last 25 years, leaders of both sides felt
significant achievements had been made, contributing to peace, co-operation
and development in the region.
ASEAN leaders hailed the active and important help rendered by
President Park Geun-Hye reiterated that
Vietnamese Prime Minister Nguyen Tan Dung said both sides
should strengthen their partnership and mutual support in all arenas. Mutual
trust was key to achieving sustainable peace, stability and security, he
said.
The PM also said that recent complicated developments in the
He called on all related sides to respect international law
including the 1982 UNCLOS, fully abide by the Declaration on the Conduct of
Parties on the
Refraining from the use of or threat of force as well as acts
that might escalate tension would be an important confidence building
measure, Dung said.
ASEAN and the RoK have enjoyed a strong and fruitful
development of relations since they established dialogue partnership in 1989.
In 2004, the RoK joined the Treaty of Amity and Co-operation (TAC), taking
the ties between two sides to the level of comprehensive partnership. This
was elevated further to the Strategic Partnership for Peace and Prosperity in
2010.
The RoK has backed all co-operation mechanisms and forums
initiated by ASEAN in the region. The country is now one of ASEAN's leading
economic partners with two-way trade hitting $135 billion in 2013.
VN courts infrastructure investment
Deputy Transport Minister Nguyen Hong Truong said in his
opening remarks that infrastructure development plays an important role in
the country's plan to become an industrial nation by 2020.
"Because the State budget is limited, the Government
considers attracting domestic and international infrastructure investors
critical," he said.
Many documents had been issued in recent years to improve the
legal framework for public-private-partnership (PPP) projects, Truong said.
The upcoming PPP decree, which is expected to be approved this month or in
early January, is expected to invigorate investment in infrastructure
projects.
According to Le Van Tang, director of the Public Procurement
Department at the Ministry of Planning and Investment, the new PPP decree
covers more PPP project forms, ranging from BOT (Build-Operate-Transfer) to
BOO (Building-Owned-Operate).
It will replace previous decrees, which only provided general
guidelines on PPP investment, and to regulate BOT, BT (Build-Transfer) and
BTO (Build to Order) projects.
The new decree stipulates higher fiscal incentives for
investor-proposed projects. It also covers competitive bidding, policy publicity
and price negotiation time frames.
After the decree gets approval, the Ministry of Planning and
Investment will issue instructions on its implementation.
According to Nguyen Danh Huy, head of the Transport Ministry's
PPP Project Management Unit, the transport sector estimated that private
investors will pour about VND235 trillion (US$11.2 billion) into
infrastructure projects between 2016 and 2020.
In 2014, Huy said the transport sector has been given VND43
trillion ($2 billion) in private investments for infrastructure projects.
Aside from ground transport, the transport sector will focus
on attracting investments for railways, seaports and the proposed
According to Huy, the Transport Ministry and other relevant
agencies will soon release a list of projects needing private investment with
diversified PPP forms.
Le Tuan Anh, deputy head of the Finance Ministry's Investment
Department, said most BOT project investors must rely on commercial banks and
with the rate-of-return for BOT projects lasting up to 20 years, investors
and the banks carried a lot of risk.
"PPP is not a magic wand," he said. "We still
need to increase the attractiveness of the projects, considering it often
takes a long time for investors to get back their initial investment."
Nguyen Thi Thuy Hanh, a representative from the State Bank of
Her department estimates that commercial banks have lent
VND135 trillion, accounting for 89 per cent of total investment, for 63 PPP
projects currently under the supervision of the Transport Ministry.
Infrastructure projects typically required investment periods
of 20 to 25 years, but the banks' funds were primarily intended for
short-term loans, Hanh said.
In addition, banks must carry the risks involved, such as
capabilities of investors, subcontractors' work and project delays, she said.
Pham Quang Dung, chairperson of Tasco Joint Stock Company,
said the Government should come up with policies that reduced risk for
commercial banks and investors.
Ministry seeks investment in traffic infrastructure
Minister of Transport Dinh La Thang chaired a conference
discussing measures to attract investment in traffic infrastructure because
the state budget is far behind demand in
Head of the Investment Department under the Ministry of Finance
Le Tuan Anh reported big challenges in capital mobilization for traffic
infrastructure development.
Public-private partnership (PPP) projects in this field have
mainly been conducted under BOT (Build-Operate-Transfer) form. Some projects
have been successful benefiting both the government and investors. However
some have failed such as
Mr. Tuan Anh said that there has no official study on the
success and failure of PPP projects in
They have mainly looked forward to loans from commercial
banks. However the banks have limited these long term loans with close
guarantee requirements. According to regulations, the Government does not act
as guarantee for businesses’ domestic commercial loans.
Stock market is an important channel for investors to mobilize
capital. However most of them have not well exploited it.
Delegates at the seminar also pointed out another challenge
from the legal framework which has failed to catch up with international
practice.
Ms. Sindy Wong, deputy chairwoman of the Indian IL&FS
Transportation Networks Ltd, said that
Sharing the same view, head of the Transport Ministry's PPP
Project Management Unit Nguyen Danh Huy said that several Government agencies
have not closely worked with investors and local authorities while
implementing projects.
In addition, toll fee policy has not been complete without specific
toll rates for highways, local waterway, railway, shipping and airway. There
has not a policy to assist investors in case of financial shortage for
project implementation.
According to the Ministry of Finance’s representative, there
should have an effective mechanism on risk control and sharing among related
sides.
At first, it is necessary to balance benefits between PPP and
other normal traffic projects. Investors of PPP projects should have higher
than normal profit level to make up for risks from long-term and large scale
investment.
Many experts proposed the Government to extend the capital
reclaiming time of BOT projects, have a suitable road toll mechanism, and
help banks control risks to loan the projects.
Businesses also proposed the Ministry of Transport to publicly
announce projects calling for investment, their implementation progress and
capital demand, and learn developed nations about toll collection with credit
cards to better control collection sources.
The ministry will work with the State Bank, the Ministry of
Planning and Investment and the Ministry of Finance on facilitating private
investment in traffic infrastructure projects, he added.
The Government is set to issue a decree on PPP to create
advantageous conditions for businesses, which Mr. Thang believed that it will
bring large changes in attracting capital for traffic infrastructure
development.
A Transport Ministry’s report shows that private sector has
invested nearly VND43 trillion (US$2,014 million) in traffic projects this
year. The number has met only a small part of demand.
Road construction is estimated to need an average of VND202
trillion a year by 2020. Of these, key and urgent projects such as the
National Highway 1A and Ho Chi Minh Highway need VND22 trillion and VND27
trillion a year respectively.
IFC helps local banks finance energy-saving projects
International Finance Corporation (IFC) will support
Vietnamese banks to fund energy-saving projects, said Vu Tuong Anh, who is in
charge of financing the clean production and energy-efficiency program of
IFC.
Anh told a seminar in HCMC on Wednesday that IFC, a private
sector lending arm of the World Bank Group, would provide financial and
technical support for the banks participating in the program in
As for financial assistance, IFC will offer seven-year loans
with a grace period of two years for local banks to lend to individual and
corporate customers wanting to buy and invest in energy-saving houses and
buildings.
IFC can also set up a fund to share lending risks with local
banks. The corporation will cover part of the debts for energy-saving
projects that borrowers are unable to repay to the lenders if the banks and
the corporation can agree on criteria for lending and risk evaluation.
Regarding technical assistant, IFC will assist local banks in
working out loans for energy-efficiency projects as well as marketing plans
and staff training. Anh said most Vietnamese banks have yet to lend to such
projects.
In addition, IFC will build a bridge between local banks and
green technology suppliers who have close relationships with investors and
companies to help the banks find more customers. The corporation will also
launch campaigns to raise public awareness of energy-efficiency projects.
Currently, IFC has a tool called EDGE to evaluate
energy-efficiency projects and Vietnamese banks can use this tool to assess
projects before deciding to lend them or not.
IFC expert Autif Sayyad said EDGE is free on www.ifc.org/EDGE
but enterprises need to pay for the EDGE certificate issued by IFC.
Nam Long Investment Company is one of the first Vietnamese
firms to get such a certificate next week as planned.
IFC has invested around US$2 billion in its sustainable energy
program via banks. In
Nguyen Cong Thinh of the Department of Technology-Science and
Environment under the Ministry of Construction said
Thinh added that there is no policy that encourages or forces
investors to have their projects certified as energy-efficiency structures.
New driving force for SOE restructuring
National Assembly (NA) deputies and economists are pinning
high hopes that a new regulation of the revised Law on
Under the new rule in the revised law passed by the NA last
month, an enterprise is a SOE when its 100% stake is held by the State,
instead of 51% as before.
Nguyen Dinh Cung, director of the Central Institute for
Economic Management (CIEM), said such a change will create a new driving
force for the restructuring of SOEs in
According to Cung, after being equitized, an enterprise will
no longer be a SOE but operate as a private company or a joint stock company.
Therefore, there will be many changes concerning rights and obligations of
such enterprises.
“After enterprises go public, outside shareholders are equal
and have their rights and benefits protected. They will be no longer
dominated by State shareholders,” Cung pointed out.
Cung said strategic shareholders are encouraged to invest more
in equitized SOEs and more investors will help accelerate equitization.
“They will be real investors rather than shareholders who
invest in equitized enterprises to enjoy the privileges of SOEs like
previously,” he explained.
Nguyen Van Phuc, deputy head of the NA’s Economic Committee,
shared Cung’s view, saying that old regulations on SOEs did not create an
impetus for outside shareholders to contribute their capital as they are
afraid of being tightly controlled.
However, the new regulation will speed up equitization,
restructuring and capital divestment as well as attract investors from other
economic sectors to pour their money into equitized firms.
The equitization process in
A report the Government sent to the NA recently revealed there
were 796 enterprises wholly owned by the State as of late last year. If 432
SOEs complete equitization next year, the number of SOEs will drop to 364.
Victoria Kwakwa, the World Bank’s Country Director for
Besides, Kwakwa urged
According to the Ministry of Finance, 100% state-owned enterprises
owed a combined debt amount of VND1,515 trillion last year.
French experts suggest urban development model
French experts have proposed the authorities of cities in
Speaking at a seminar on sustainable cities in HCMC on
Wednesday, French architect Jonathan Thornhill from Loci Anima Architectures
Co. said widening the area of a city without effective administration will
not be sustainable and basic criteria for a good living environment will not
be met.
Planning expert Antoine Mougenot from AREP Vietnam Co. Ltd.
said reducing the ground area of construction will make room for more trees
and help protect the ecosystem of urban areas.
On the same side, Phan Van Truong, Vietnamese-French lecturer
at the
Nguyen Van Tat, member of the HCMC Architects Association,
said the choice of an appropriate model for urban planning in
Other experts at the seminar noted that the vertical urban development
model sounds good for HCMC as it enables the city to address chronic traffic
issues, but now is not the right time to apply it as the average living
standard of citizens is not high and the city’s economy is not strong.
Julien Schnell, director of Urbanica Company, said the
agencies responsible for urban planning should attend to connectivity between
buildings and public transport systems, and make the most of natural light
and wind when it comes to designing living spaces and underground facilities.
Trade center to go up in town
The HCMC People’s Council on December 10 passed a proposal by
the city government to select an investor for an office, hotel and commercial
center project in a prime location in HCMC’s District 1.
The project will go up in a 5,160-square-meter land lot
bordered by Le Loi, Nguyen Hue, Dong Khoi and Nguyen Thiep streets as
proposed by the HCMC People’s Committee in its report submitted at the
opening of the council’s meeting on Tuesday.
The city government will organize a tender to select the
investor for the project in accordance with exisiting regulations.
According to the HCMC Department of Planning and Investment, a
joint venture between Saigontourist Holding Company and Van Thinh Phat Corp.
wants to develop the office, hotel and commercial center project.
The venture has suggested a plan to build the eight-floor
building at an estimated cost of nearly US$70 million. Of the US$36 million
for construction, Van Thinh Phat is expected to contribute US$27 million and
the rest is covered by Saigontourist.
As many as 129 households will be removed and affected by
construction of the project.
Source:
VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
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Chủ Nhật, 14 tháng 12, 2014
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