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BUSINESS IN BRIEF 1/2
10 products participate in US$3bln export club
Ten items joined the US$3 billion export club in 2014,
together making an export turnover of US$104.14 billion, accounting for 69.3%
of the total and representing a rise of 13.9% from 2013.
Those witnessing high growth rate included garment up 16.8%,
footwear up 23.1%, aquaculture up 17.1%, machines, equipment and tools up
21.4% and coffee up 30.9%.
Among the 10 items, six belonged to the manufacturing and
processing industry, three in the agricultural-forestry-aquaculture sector,
and crude oil.
The nation recorded 10 localities having export turnover
exceeding US$3 billion in 2014, seeing three more new provinces of Thai
Nguyen, Long An and Ba Ria-Vung Tau.
These 10 localities posted a total export turnover of
US$116.15 billion in 2014, accounting for 77.3% of the total.
The southern
In 2015, an ASEAN Economic Community (AEC) will be formed,
allowing
In 2014,
The nation signed Free Trade Agreements (FTA) with the EU, the
Textile firm raises VND119 billion from IPO
Textile firm Minh Khai under Hanoi May 19 Textile Group
(Hatexco) mobilized nearly VND119 billion from the sale of over 1.6 million
shares at its initial public offering (IPO) at the Hanoi Stock Exchange
last Friday.
Thirty investors bid for more than 26.7 million shares at the
IPO auction, 16 times higher than the volume put up for sale, according to
Vietnam News Agency.
Notably, an investor wanted to acquire all the offered volume
at the highest bid of VND72,000 per share, seven times higher than the starting
price of VND10,100 each.
Closing the auction, three individual investors bought all the
1.6 million shares with the average winning price of VND71,991 per share, and
Minh Khai Textile Factory raised earned VND118.7 billion from the auction.
Fuel firms report profits despite price plunge
Local fuel traders Comeco and Saigon Fuel Joint Stock Company
(SFC) have announced strong profit rises in the final quarter of last year
although fuel prices have tumbled since last July.
Comeco’s net profit reached VND13.95 billion, a year-on-year
surge of 126.5%. Overall, its net profit amounted to more than VND42 billion
for all of last year, up 66% against 2013.
However, Comeco’s revenue was lower than in the fourth quarter
of 2013. Le Tan Thuong, general director of Comeco, attributed the revenue
drop of 6.02% to the shrinking fuel prices.
Meanwhile, SFC’s unaudited net profit exceeded VND10.5 billion
in the fourth quarter of last year, doubling that of the previous year’s same
period. Overall, its net profit surpassed VND37.2 billion for the whole year
versus 2013.
Similar to Comeco, SFC’s revenue went down in October-December
compared to the same period of 2013 due to lower fuel prices than those
recorded in the final quarter of the previous year.
Both SFC and Comeco buy products from wholesalers for
distribution and earn discounts offered by those wholesalers.
As reported by the Daily, the discount rates ranged from
VND800 to up to VND1,200 per liter in the final quarter of last year. The
wholesalers offered high discount rates in order to woo fuel retailers on
dropping retail prices.
The authorities of HCMC have urged the industrial parks (IPs)
to attract major projects in the textile and garment sector despite the
city’s restrictions on labor-intensive projects.
Tran Viet Ha, head of the Investment Management Department of
the HCMC Export Processing and Industrial Zones Authority (Hepza), explained
the world’s apparel industry is forecast to grow strongly.
The Trans-Pacific Partnership (TPP) agreement could be
concluded this year, offering great opportunities for companies in the
industry to benefit from zero tariffs on apparel exports to TPP member
countries.
Projects in the textile and garment sector need a lot of labor
but experts said as apparel is a major export earner of
Therefore, Ha said some IPs such as Hiep Phuoc and Dong
Ha said projects in the textile and garment sector licensed by
Hepza produce luxury items and use modern technology.
Among the apparel projects licensed in the past year is
Worldon Vietnam Ltd. Co. in Dong Nam IP. It has recently increased its
pledged investment to US$300 million from US$140 million.
Ha said the Worldon Vietnam project, which also has a design
center, makes products for world-known brands such as Nike, Adidas and Puma.
The investor needs an area of 52 hectares and 7,000-8,000 employees.
Forever Glorious of Taiwan’s Sheico Group has pledged US$50
million for a project to produce almost everything from fiber to finished
garments, with a work force of more than 3,500 people at Dong Nam IP.
Last year, the IPs and export processing zones (EPZs) in the
city saw a year-on-year fall of a slight 4.39% in foreign direct investment
(FDI) approvals at US$347.5 million thanks to large-scale apparel projects.
Consumers pay the price
The country is shifting to a market economy in which market
forces dictate consumer prices. This is evident in the 15 bouts of fuel
retail price cuts since July last year in response to the world oil price
plunge, which has in turn sent consumer prices in January diving 0.2%, a
17-year January low.
However, the consumer price index might have been lower if
transportation service prices had been slashed in proportion to the fuel
price reductions. Consumers are hoping for lower transportation prices as
fuel costs account for around half of those prices. Surprisingly,
transportation firms, including those providing taxi services, have shown
little sign of making real concessions.
Consumers, economic experts and even authorities at local and
central levels have frowned on the reluctance of transportation businesses to
make a significant move. As the cup of endurance is over, Prime Minister
Nguyen Tan Dung has intervened by ordering relevant ministries and agencies
to inspect transportation fees to see whether they are overpriced. The
Ministry of Transport will be coordinating with the Ministry of Finance to
send out inspection teams at the request of the Government leader.
This is a clear indication that transportation businesses are
not playing by the rules of the market. Given growing pressure, some
companies in 43 of the country’s 63 cities and provinces have revised down
their transportation charges but an insignificant range of 1-25%. The many
firms that have kept their fees unchanged reason that in previous fuel price
cuts, they already lowered fees, leaving little room for further reduction.
This argument is not justifiable. Why? Because fuel prices have dropped 15
times but the number of fee cuts by transportation firms is neglectable.
Economist Dr. Ngo Tri Long describes the inaction of multiple
transportation companies as unusual. He calls for pricing authorities to
promptly conduct inspections and publicize all those businesses found to
overprice their services, thereby stepping up pressure on them to act for the
benefit of consumers.
Hopefully the Government intervention will end up preventing
the consumer from paying the price for what is unacceptably overpriced.
PM decides specific mechanisms for Quang Ninh province
The Prime Minister has approved several economic mechanisms
designed specifically for the northern coastal
Accordingly, Quang Ninh is allowed to establish a State-owned
financial investment company following the model of
The province will receive capital from the central budget and
other sources to help with the construction of major local projects during
2015-2020 such as a road connecting Ha Long city with
Priority will be given to Quang Ninh in terms of ODA and
preferential loans of donors to carry out several key projects in
socio-economic development and environmental protection including the
environmental protection plan in Ha Long City and urban development along the
Greater Mekong sub-region corridor.
The government will also consider assisting Quang Ninh
province in the form of Public-Private Partnership (PPP) to implement a number
of important infrastructure projects.
Regarding local Van Don economic zone, the PM decided to
include it in the list of coastal economic zones prioritized for development
using State funding during the 2013-2015 period.
Besides general incentives applied for those economic zones,
Van Don will be given priority in terms of ODA attraction for the
construction of its key infrastructure.
Some infrastructure projects such as the Van Don airport,
communication facilities, an international hospital and cross-island roads
will receive investment from the State budget, government bonds and ODA
capital.
Van Don, the biggest island in the northern region, was
selected by the Vietnamese government to develop into a special
administrative and economic zone. With its location in a corridor linking
Dong Nai support industry earns 3.2 billion USD in exports
The annual export value of Southern Dong Nai province’s
support industry reached 3.2 billion USD, according to the provincial
Department of Industry and Trade.
Industrial parks in the province have attracted 422
Foreign-Direct-Investment (FDI) projects with a total capital of 6.9 billion
USD to the support industry in various sectors including garments and
textiles, footwear, electronics, auto and bike spare parts, and mechanics and
equipment.
Support companies account for 23.5 percent of all enterprises
and employ more than 200,000 employees—or 37 percent of those working in
industrial parks.
The support industry continues to be the province’s priority
for attracting FDI capital.
During the first 20 days of January, the province granted
investment licences to two support industry projects worth one million USD.
So far, investment licences have been given to 1,473 projects
with a combined capital of 26.19 billion USD.
Report announces cross-sector financial capacity improvement
Tourism, chemical, light industry and other cross-sector
enterprises saw the highest improvement in their financial capacity,
increasing by over 60 percent, as released in a report on the health status
of businesses. “The 2014 Business Index – Corporate financial capacity”,
published by the Institute of Business Studies & Development (INBUS)
under the
The report compares enterprises’ financial capacity across
sectors and demonstrates their business performance improvement over the past
year.
As many as 109 firms in transport, construction materials,
mechanics, pharmaceuticals and healthcare services, garments and textiles,
books and school equipment, construction, and minerals sectors increased by
roughly 50-60 percent.
INBUS Head Nguyen Manh Quan said the institute will continue
supporting businesses to enhance their performance in accordance with the
international standard confidence index system (CIS) and Business Profile, as
well as assisting in the international integration process.
The business index provides necessary information to
stakeholders and reveals businesses’ contribution to their sectors and the
economy, said President of the Vietnam Association of Accountants and
Auditors Dang Van Thanh.
Central Highlands strive for socio-economic growth
In 2015, the Central Highlands aim to maintain social and
political stability as well as enhancing economic growth, as said at a
conference held in Buon Ma Thuot City, Dak Lak province on January 27.
To realise these targets, the regional steering committee has
concentrated on monitoring the effective implementation of several local
development projects. The committee has also called for more favourable
policies to support major local products, particularly in agriculture,
forestry and tourism.
It is working to devise an efficient mechanism to bolster the
mobilisation of funds for transport and other public infrastructure
improvements. Some of the region’s key projects include upgrading Pleiku
airport and building the Ho Chi Minh road.
Managing migrant populations and properly handling
shortcomings in hydropower projects are also key 2015 priorities.
In 2014, the Central Highlands’ total GDP increased by 8.74
percent with an annual export revenue exceeding 2.5 billion USD.-
Solutions for enterprises’ challenges in 2015
A workshop on 2015 challenges for enterprises was held in
Reports at the workshop revealed that small- and medium-sized
enterprises (SME) in
Dr. Vo Tri Thanh, Deputy Director of the Central Institute for
Economic Management said that
However, he highlighted that
Enterprises should familiarise themselves with the legal
procedures of the integration process, Thanh said, adding that small-sized
enterprises should collaborate with large businesses for capital access and
efficient management.
Meanwhile, Nguyen Thi Thu Trang, director of the World Trade
Organisation Centre under the Vietnam Chamber of Commerce and Industry,
underscored that enterprises should focus on a number of issues including
labour, the environment and the quality of products and services.
Apart from efforts made by enterprises, Deputy Director of the
Business Development Department under the Ministry of Planning and Investment
Bui Thu Thuy stressed the role of the government in simplifying loan
procedures and promoting the establishment and utilisation of an SME
development fund.
The State Bank of
The banking industry will drastically implement the credit
institution restructuring program and tackle bad debts, Lam was quoted by
Saigon Giai phong newspaper as saying. They will focus on completing bank
merger plans, he added.
Stating at the conference on January 26, permanent deputy
Governor of the State Bank Nguyen Dong Tien instructed credit institutions to
fulfill merger plans before June 2015 and keep close eyes on the progress to
ensure that merged banks will stably operate in the second half of the same
year.
In addition, Tien said that the banking system’s average bad
debt has been under control.
In fact, many banks have a very low deep debt ratio--about 1
percent.
However, he said, the 3 percent bad debt ratio target will put
a heavy pressure on banks. They thus should have financial preparations for
risks and ensure effective credit growth.
The target of 13 percent credit growth is suitable but the
State Bank’s
Last year
The Bank - Business Connectivity Programme has loaned 1,143
customers including businesses, traders and cooperatives with a total capital
of 40,057 billion VND (1.88 billion USD).
Egyptian investors take interest in Vietnam
Egyptian investors showed strong interest in
The event, with the participation of representatives from 17
local firms in various fields, was part of focused activities organised by
the Embassy to introduce and promote Vietnamese products in a five million
population market, said Vietnamese Ambassador in Egypt Dao Thanh Chung.
Vietnamese trade counsellor in Egypt Pham The Cuong also
briefed local businesses on high-potential fields in
General Director of the Egyptian engineering company Heshem
Tawfik hailed
In 2014, trade between the two countries was valued at 320
million USD, a substantial increase from 220 million USD in 2013. The figure
is expected to grow even further to reach 400 million USD this year.
Binh Duong to make VSIP industrial-urban-service complex
The southern
The consensus was reached during a meeting between Chairman of
the provincial People’s Committee Tran Van Nam and Co-Chairman of the VSIP
Group Kavin Teo on January 26.
The province continues to promote sustainable development
towards becoming a centrally-run first-tier city by 2020, he said, adding that
it will prioritise projects with advanced technology and competitive
products.
The provincial leader also pledged to further improve
infrastructure and support investors.
Kavin Teo said effective management by the provincial
authorities has increased investor confidence in the local business
environment, noting that in 2014, the VSIP Group attracted 600 million USD in
investment to 21 new and 26 current projects.
After nearly 20 years of development, the group has
contributed to boosting local socio-economic growth, he said, adding that it
now focuses on upgrading the VSIPs into urban-services-social welfare
complexes.
Teo asserted that the success of the VSIPs in Binh Duong can
serve as a foundation for the expansion of the model to other localities across
The Tra Bac Joint Stock Corporation (TRABACO) has exported its
first 100 tonnes of activated carbon for 2015 made from coconut husks to the
Japanese market.
Activated carbon is used in gas purification, decaffeination,
gold purification, metal extraction, water purification, medicine, sewage
treatment, air filters in gas masks and respirators, filters in compressed
air and numerous other applications.
The global market for activated carbon is forecast to reach a
market size of 2.3 million metric tons by the year 2017, energized mainly by
the anticipated spurt in demand for activated carbon in the
In the future, apart from the traditional application areas,
several new focus spheres are expected to arise from rigid governmental
regulations in the
The US and Asia-Pacific, (currently powered mainly by
TRABACO is forging a new pathway into the market and
anticipates exporting 4,200 tonnes of activated charcoal in various types to
foreign markets such as the EU, Asian nations, the US, South America and
Australia and expand its outlets to the Middle East for 2015.
Nguyen Khac Nhu, TRABACO general director said this year, the
company will focus on developing its brand name for Made-in-Vietnam high
quality principally in the
Seafood exports to US hit record high
VASEP reported the
Vietnamese seafood exports to
In 2014 the country’s total seafood export value reached
nearly US$8 billion, exceeding the target by US$1 billion.
HCM City prepares for 2015 Vietnam Food Expo
The Vietnam International Food Industry Exhibition 2015 (2015
Vietnam Food Expo) will be held from May 13-16 in Ho Chi Minh City, according
to the Vietnam Trade Promotion Agency (Vietrade), under the Ministry of
Trade.
The event is expected to feature 500 booths displaying various
food and beverages, and packaging technology from 15 countries and
territories.
According to Deputy Director of Vietrade Ta Hoang Linh, the
2015 Vietnam Food Expo will be an effective and high-profile bridge
connecting Vietnamese manufacturers and agricultural product traders with
domestic distributors and retailers as well as foreign importers.
The event looks to drive technological innovation and improve
labour productivity to enhance the competitiveness of the country’s agricultural
industry , he added.
Numerous programmes and activities will also be held during
the four-day event, including the International Vietnam Food Industry
Conference, an international cooking competition, and other trade promotion
activities.
The annual Vietnam Food Expo is the leading trade fair for the
food industry.
AES Mong Duong managing director elected in VCBSD’s Executive
Board
Managing director of AES-VCM Mong Duong Power Company Limited,
David Stone has been elected a member of the Executive Board of Vietnam
Business Council for Sustainable Development (VCBSD) for the 2015-2016 term.
VBCSD is a Vietnamese business-led organisation and strives
for excellence in sustainable development. The council is a member-driven
organisation whose aim is to encourage the council members and the business
community to participate and contribute to sustainable development. Being a
business platform for sustainable development, the VBCSD shall continually
promote the best business practices and apply ecologically efficient,
environmentally friendly international business standards.
The Mong Duong 2 power plant with two units and the total
gross capacity of 1,240MW is currently under construction in the
AES Mong Duong focuses on providing safe, reliable and
sustainable energy solutions, as well as making a lasting difference in the
communities they serve. The project is one of only a limited number of
plants in
The company has also developed a robust corporate social
responsibility (CSR) programme that engages the community leading to the
development of key initiatives and projects to improve the livelihood and the
environment in the communities. Some of the initiatives to date include
significant investment in the upgrades to medical and educational facilities
and targeted environmental projects. AES Mong Duong is also very engaged in
educating the community through site visits and community outreach programmes
such as safety and values days at local schools.
EU investments stymied
The Eurozone crisis may hamper investments from Eurozone
nations to
The EU is among the largest sources of foreign direct
investment inflows into
“The substantial devaluation of the euro against the US dollar
has already made European products very competitive against those coming from
other areas, especially those whose currency is linked to the US dollar,
including Vietnam,” said Tomaso Andreatta, vice chairman of the European
Chamber of Commerce (EuroCham) which has more than 700
European corporate members.
In mid-January, the euro dropped to an 11-year low against the
US dollar after the Swiss National Bank made a decision to stop buying euros
to anchor the Swiss franc.
Analysts believe the euro will keep on depreciating, pushing
the Eurozone back into crisis like in 2009, with the threat of deflation. The
situation currently suggests the European Central Bank may have to implement
quantitative easing to spur economic growth.
Andreatta, who is also head of Intesa Sanpaolo Bank’s office
in
In addition, Andreatta believed companies in the Eurozone were
now poorer in terms of US dollars and they may decide to postpone or review
investments previously planned.
Last but not least, the incentives for European business to
outsource products from Vietnam has reduced, as the Vietnam dong is linked to
the US dollar and has appreciated, thereby reducing the attractiveness of
Vietnam’s low labour costs.
“There are parts of Europe with relatively low labour costs
like
However, the current Eurozone crisis can only inhibit
investments from this zone to
“The overall economic development is affected by disappointing
growth in the Eurozone and the geopolitical events. However, following
extensive reforms, we can say that
Hundt believed European businesses would strengthen their
competitiveness by investing in countries with the highest comparative
advantage. The comparative advantages between European countries and
“There are still many potential gains to be made from free
trade and open investment conditions between
InterContinental finally moves into Keangnam
Three years after the Keangnam Hanoi Landmark complex was
initially put into operation, InterContinental Hotel Group’s second hotel in
Keangnam president Lee Hyo Jong told VIR last week that after
a period of negotiations, InterContinental Hotel Group (IHG) and Keangnam had
come to an agreement, and were making preparations to open the
InterContinental Hotel at Keangnam in the second half of this year.
The reason for the delay, Jong said, was that the two sides
had to resolve their differences in terms of their creative vision for the
hotel’s overall style and facilities.
“One of the reasons why starting our hotel business has been
delayed is the negotiating process on brand-standards with IHG. In order to
satisfy the brand-standard required, it required large additional investment
so it took quite a long time to deal with IHG. However, now all unclear
issues are settled and it will begin operating within the second half of
2015,” Jong said.
InterContinental Hanoi Landmark 72 was initially due to be
opened at the end of 2013, however the operation, it seemed, had been delayed
to the point where even the billboard naming Intercontinental as the operator
of the hotel was removed from the wall of Keangnam’s Landmark building.
VIR was told that all members of the team responsible for the
pre-opening activities had been disbanded.
Clarence Tan, chief operating officer for Southeast Asia &
Resorts of IHG confirmed to VIR that IHG was still working with Keangnam to open
the hotel.
InterContinental Hanoi Landmark 72 looks set to be a 5-star
luxury hotel, and the tallest hotel in
“We know that the hotel segment is struggling through
difficult times with supply greater than demand. However, we still have faith
in our hotel, because we have our target customers, who are within the
business circle from neighbouring industrial zones and MICE activities,” Jong
said.
Moreover, being a multi-function complex, Keangnam’s president
also believed that the demand of companies and their partners in the building
could supply a stable source of customers.
Bank-Business Connectivity Program well implemented in HCMC
The Bank-Business Connectivity Program has been implemented in
Ho Chi Minh City for the last three years and provided low interest loans to
over 4,500 businesses with a total amount of VND67.5 trillion (US$3.16
billion).
That was revealed at a conference hosted by the State Bank of
Vietnam (SBV) in
Last year the program organized 31 events to connect banks
with businesses. Nearly 1,200 businesses, households and traders and 62
cooperatives were loaned VND40,056 billion (US$1.88 billion), triple the
number in 2013 and double initial norm set by the city.
Banks disbursed as per pledges, businesses used capital for
right purposes and made payment on time.
The banks also restructured debts for 10,590 customers with a
total liability of VND218 trillion, reduced interest rates for 177,481
customers with the total loan of VND439 trillion.
HCMC People’s Committee Deputy Chairwoman Nguyen Thi Hong said
that the program purpose was to provide low interest bank loans to
businesses, especially those in five priority fields and small and medium
enterprises.
The committee has instructed SBV’s HCMC branch to coordinate
with the Department of Industry and Trade, HCMC Business Association and
district administration to take the imitative in looking for and accessing
enterprises in need of capital and indentify their difficulties.
District people’s committees gathered information about
businesses and proposed the State Bank to consider providing them with low
interest loans.
Although the number of businesses able to get loans is not
high but the program’s achievements are remarkable, said Ms. Hong.
At the conference she announced a new credit package of VND128
trillion (US$5,997 million) for the program this year with 19 commercial
banks signing an agreement to join in.
SBV deputy governor Nguyen Dong Tien said that together with
the price subsidization program, the Bank-Business Connectivity Program
showed HCMC efforts to solve difficulties for businesses, help them reduce
production costs, improve financial ability and competitiveness, boost
production and trading to develop the economy.
The city’s economy has showed signs of recovery with the Gross
Domestic Product growth reaching the highest rate for the last three years of
9.6 percent.
The State Bank Governor considered the city’s program as a
typical modal to multiply nationwide. So far the country has mobilized VND250
trillion (US$11.71 billion) for programs to bring together banks and
businesses. Over 300 talks have been held to listen to and solve businesses’
difficulties.
Fisheries output increases despite unfavourable weather
The nation’s total fishing production in January is estimated
to reach 409,000 tonnes, up 2.3% compared to the same period in 2014, despite
unfavourable weather conditions.
According to the Ministry of Agriculture and Rural Development
(MARD), total production is forecasted at 223,000 tonnes, up 2.8%; while
aquaculture output is also up by 1.8% to 186,000 tonnes.
A representative from the Directorate of Fisheries under the
MARD said that fishermen in northern localities on their fishing season
enlist to offshore operation, generating in a considerable output.
Local fishermen are encouraged to team up for offshore fishing
and focus on catching high-value fish such as tuna, scad, squid, and shrimp,
while increasing investment in boats to increase offshore capacity.
In particular, for tuna fishing, some provinces have seen
significant increase in the total of produce caught, including Khanh Hoa with
450 tonnes, up 7.1%; Binh Dinh 240 tonnes, up 4.3%; and Phu Yen estimated at
550 tonnes, equivalent to the same period last year.
Aquaculture output in January also rose, estimated to reach
186,000 tonnes nationwide, up 1.8% year-on-year.
Accordingly, the farming area of tra in the Mekong Delta in
January is estimated at 2,100 hectares, up 0.8% compared to the same period
of last year with an estimated production of 24,000 tonnes, up 10.5%.
Several provinces like Tien Giang, Ben Tre, and Vinh Long have
seen an increase in both acreage and yields, of which Ben Tre recorded the
largest production area with an increase of 15% compared to the same period
in 2014.
More conditions for rice exporters
Enterprises will have to meet stricter conditions if they want
to get approval to export rice, according to a new decision of the Ministry
of Industry and Trade.
The decision, effective from early March this year, governs a
roadmap for paddy production and consumption in the 2015-2020 period with an
aim to balance risks and benefits for rice traders and growers.
In the five-year period starting from 2015, enterprises should
develop paddy farming areas with output equivalent to the volume they
exported in 2011-2013. Those firms with export volume of less than 50,000
tons per year in the period will have to invest in 500 hectares of paddy in
the first year, and increase the acreage by 300 hectares each year from the
second year.
Meanwhile, exporters of 50,000 to less than 100,000 tons of
rice per year will have to develop paddy fields of 800 hectares in the first
year and expand the area by 500 hectares in each following year. The area
must be 1,200 hectares in the first year and is increased by 800 hectares per
year for those shipping 100,000-200,000 tons of rice per year.
The respective figures for exporters of more than 200,000 tons
of rice per year in 2011-2013 will be 2,000 hectares and 1,500 hectares.
In its decision, the ministry clarifies three methods to
develop paddy fields for rice exporters to choose. They are allowed to invest
in large-scale paddy fields, sign contracts to buy rice from farmers, or
produce paddy on the fields they lease from the Government, farming
households or organizations.
Hoang Lam, director of An Giang Province-based Hung Lam Joint
Stock Company, said the company has prepared procedures for a large-scale
paddy field project for months but the project requires huge funding.
HCMC banks make US$6 billion loans
Nineteen banks in HCMC will lend nearly US$6 billion to local
companies, family-run businesses and individuals this year, double the target
set by the city government for the year.
At a launching ceremony of the 2015 bank-business connectivity
program on January 26, the banks inked deals with the central bank’s HCMC
branch and the HCMC Department of Industry and Trade to provide corporate and
individual borrowers with loans amounting to over VND128 trillion (around
US$6 billion).
The major lenders include Vietcombank with VND30 trillion,
BIDV with VND20 trillion and Sacombank with VND10 trillion.
Earlier, the central bank’s branch in the city expected banks
would lend VND60 trillion with preferential interest rates to businesses
through the program this year, up 50% from the previous year.
This year, lenders will apply short-term lending rates of no
higher than 7% per annum for designated borrowers and medium- to long-term
rates of around 9% per annum.
The lender banks may also consider lowering the interest rates
for old loans to help struggling borrowers.
Nguyen Hoang Dung, deputy general director of VietinBank, told
the ceremony that the lender would consider reducing long-term interest rates
by one to two percentage points against common levels within the next seven
to 10 days.
Last year, VietinBank reported total outstanding loans of over
VND20 trillion for the program. The bank applied short-term rates of 5.5-6%
per annum and medium- to long-term rates of 7-10% per annum.
VietinBank has had no debt problems with the participating
corporate borrowers of the program over the past three years as industry
associations have provided it with enough information about those borrowers,
Dung said.
Between 2012 and 2014, over 4,500 customers took out loans
worth VND67.5 trillion thanks to the program, said Nguyen Hoang Minh, deputy
director of the central bank’s HCMC branch.
No overdue debts have been reported so far. However, many
enterprises have not benefited from the program. Despite their feasible
business plans, some have not been able to gain access to bank loans in the
program given the lack of collateral, Minh said.
Banks should consider providing unsecured loans for certain
enterprises. Minh said businesses could also mull borrowing from the city’s
credit funds for small and medium-sized enterprises.
Last year, over 1,140 customers took out loans totaling over
VND40 trillion from the program, up 1.3 times and three times from the
previous year respectively.
Nguyen Dong Tien, deputy governor of the central bank, said
the city’s lending model has been deployed nationwide. Up to now, enterprises
have borrowed over VND250 trillion (US$11.7 billion) from the program.
PetroVietnam to focus on five business areas
Deputy Prime Minister Hoang Trung Hai has asked the Vietnam
National Oil and Gas Group (PetroVietnam) to focus on five business areas
this year, with oil and gas survey and exploitation as the core.
The primary goal is to increase the output and reserves of oil
and gas, contributing to national energy security. Any underfunded projects
should be brought to the attention of the government to develop creative
solutions, he said.
The Ministry of Industry and Trade was assigned to ensure the
progress of relevant projects in the gas industry as PetroVietnam effectively
operates gas facilities and steps up power generation projects, especially in
the supervisory, construction and bidding stages.
PetroVietnam is responsible for upgrading the Dung Quat
refinery plant, accelerating projects on the Nghi Son oil refinery and
petrochemical complex and the Long Son refinery complex, and safely operating
other refinery and bio-fuel plants as indicated in its 2015 targets.
PetroVietnam’s firms in oil and gas should work to improve
their capacity and extend cooperation with overseas markets.
The Deputy PM demanded PetroVietnam fine-tune its 2025
development strategy, including specifying its comparative advantages and
disadvantages with regional partners, especially with the Malaysia oil and
gas corporation Petronas, and devising ways to eliminate development gaps.
It was also urged to rapidly restructure its operations, per
mandates from the Prime Minister.
PetroVietnam’s crude oil, gas, electricity, fertiliser and
petroleum generated 745.5 trillion VND (35.5 billion USD) last year, 11.8
percent over its yearly target.
Central Highlands examines how to attract more foreign
investment
The
According to the Foreign Investment Agency under the Ministry
of Planning and Investment, the region, which comprises Kon Tum, Gia Lai, Dak
Lak, Dak Nong and Lam Dong, had 148 valid foreign-investment projects with a
total registered capital of 819 million USD by the end of last year.
Of these provinces, Lam Dong led with 122 projects capitalised
at approximately 500 million USD and accounting for 82 percent of the
region's total foreign-invested projects and 61 percent of total registered
FDI, the agency noted.
Dak Lak ranked second with six projects, valued at 150 million
USD, while Gia Lai placed third with 11 projects valued at 80 million USD.
The two remaining provinces of Kon Tum and Dak Nong had nine projects with a
combined capital of 89.6 million USD.
Of note, Hong Kong (
During the reviewed period, the agro-forestry-fisheries sector
absorbed the largest share of FDI with 350 million USD, accounting for 42
percent of the region's total FDI, following by processing and manufacturing
industries with 198 million USD, or 24 percent of FDI pledged in the region.
To attract more FDI, the agency suggested that these five
provinces accelerate investment promotions to publicise their investment
climates, potentials and prioritise sectors to alert foreign investors about
investment opportunities.
Top priority should also be given to further upgrading
infrastructure and improving human resources to better attract investors, it
added.
Source: VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
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Thứ Bảy, 31 tháng 1, 2015
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