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BUSINESS IN BRIEF 13/1
More banks offer low-cost loans for home buyers
An additional eight commercial joint stock banks will join the
government’s 30 trillion VND (1.4 billion USD) housing credit stimulus
scheme, improving access to loans for low-cost apartments.
New low-cost loan providers include the Vietnam Export-Import
Bank (Eximbank), the Bao Viet Commercial Bank, the Saigon Commercial Bank
(SCB), the Vietnam Public Commercial Bank (Pvcombank), the Tien Phong Bank
(TPBank), the Oriental Commercial Bank (OCB), the Vietnam Prosperity Bank
(VPBank), and the Southeast Asia Bank (SeABank).
The eight banks will join five commercial banks with half
their capital owned by the State in the scheme, including the Vietnam Bank
for Agriculture and Rural Development (Agribank), the Bank for Investment and
Development of Vietnam (BIDV), the Vietnam Bank for Industry and Trade
(VietinBank), the Commercial Bank for Foreign Trade of Vietnam (Vietcombank)
and the Mekong Housing Bank.
Launched in June 2013, the credit package offers loans with a
maximum interest rate of 5 percent to individual borrowers for no longer than
15 years.
Policies to stabilise the monetary market and finance small-
and medium-sized enterprises (SMEs) topped the agenda of discussions between
visiting Vietnamese financial and banking officials and representatives from
the Association of Banking in Italy (ABI) in
The host highlighted the role of the central bank and
commercial banks in supporting SMEs and support industry as well as policies
to monitor the banking system.
To stabilise monetary policies and better support SMEs, the
Italian side suggested a close coordination between banks, enterprises and
relevant agencies, adding that support activities should focus on measures to
prevent crises, improve SMEs’ capacity and increase their access to capital
sources.
On behalf of the Vietnamese delegation, Deputy Governor of the
State Bank of Vietnam Dao Minh Tu affirmed what shared by the Italian side
will be valuable experience for
During the visit, the delegation is scheduled to work with
More trade opportunities at home, abroad in 2015
The newly-approved 2015 national trade promotion programme
worth 100 billion VND (4.7 million USD) has been highly acclaimed by
businesses, bankers, and localities across the country.
The programme covers 212 projects involving the expansion of
markets at home and abroad, trade promotion in economic zones, training for
businesses, cooperatives and marketing organisations.
It will also focus on the domestic market, including
establishing distribution channels in rural, mountainous and border areas,
which is in part to spread the campaign “Vietnamese prioritise Vietnamese
goods”.
During a conference in Hanoi on January 9 to review the 2014
national trade promotion programme and launch tasks for 2015, Deputy Minister
of Industry and Trade Do Thang Hai urged firms to seize opportunities offered
by upcoming free trade agreements with the European Union, the Republic of
Korea, the Union of Customs of Russia, Belarus and Kazakhstan, among other
deals.
Reviewing the 2014 performance, Deputy Director General of the
Vietnam Trade Promotion Agency (Vietrade) Ta Hoang Linh said his agency gave
forecasts on domestic and foreign markets and held trips to exhibitions and
fairs abroad for Vietnamese enterprises and vice versa.
It also offered assistance to businesses, especially those
engaging in agro-forestry-fisheries and the processing industry, in seeking
additional export markets and expanding local market shares, he added.
PM okays industrial cluster plan
Prime Minister Nguyen Tan Dung has just approved a programme to
develop and upgrade industrial clusters and value chains for products with
competitive advantages in five sectors.
The sectors are electronics and information technology,
textiles, food processing, agricultural machinery, and tourism and related
services.
By the end of 2015, the programme aims to complete the task of
identifying and studying potential regions with industrial clusters and
products with competitive advantages so that they can be marked for
attracting investment and kick-starting pilot projects.
By 2020, it is expected that the pilot projects will be
operating in the potential regions with comprehensive mechanisms and policies
to attract investment, improve interconnectivity and human resources, and
apply scientific and technology advances to improve value chains and
industrial cluster models.
Industrial clusters will be developed and upgraded in cities
and provinces based on products that the localities enjoy advantages in
making. Some examples are consumer electronics in Binh Duong; visual electronics
in Thai Nguyen, Bac Ninh, Bac Giang, Hanoi and Hai Duong; and IT and
IT-related services in Hanoi, Ho Chi Minh City and Da Nang.
Textile industrial clusters will be based in Thai Binh, Nam
Dinh, Ninh Binh and Bac Giang while garment ones will be located in HCM City
and the central region.
The programme will develop seafood processing clusters in the
Mekong Delta, and those for seafood and agricultural products along coastal,
Central Highlands provinces and the northern midlands.
Agricultural machinery clusters will be developed in Hanoi,
Hai Duong, Hai Phong, HCM City, Long An and Dong Nai.
The country will also establish tourism clusters, like the
marine eco-tourism cluster in Hai Phong and Quang Ninh; the sea-resorts and
cultural heritages cluster in
Tourism clusters in Binh Dinh, Phu Yen and Ninh Thuan will
also lean towards eco-tourism with their well-preserved landscapes, while
To implement the programme effectively, two sets of solutions
have been proposed.
Policy solutions will target attracting investment, applying
sci-tech advances and developing human resources.
The other group of solutions will carry out projects in
several areas. Some of these will increase the capacity of sci-tech research
institutes, improve connectivity between training facilities and businesses,
upgrade logistics networks to improve regional links in production and
procurement, and improve rice processing in the southern region.
Five-star hotels shine in
The occupancy rate rose by 3 percentage points and the average
room revenue (RevPAR) increased 3 percent from 2013. The five-star segment’s
occupancy rate experienced a 10 percentage point increase alone.
Overall, five-star hotels accounted for 56% of the market
share while four-star hotels contributed the least to the total revenue.
An additional 30 hotels will be opening in 2015 onwards,
nearly 72 percent of which are expected to be five-star quality. The new
facilities will offer approximately 5,000 rooms.
According to the Hanoi Department of Culture, Sports and
Tourism, a total of 18.4 million tourists arrived in Ha Noi last year, an 11
percent increase from the previous year. Three million of which were
international visitors, representing a 16 percent increase from 2013. The
volume of Korean, English, American and French tourists has continued to
increase, peaking at a 50 percent annual growth.
New record for auto sales in 2014
As many as 157,810 automobiles were sold in 2014, representing
the highest number in the recent five years of annual auto sales in
The figure represented a 43 percent increase from 2013. Of
them, cars surpassed 100,000 units, reflecting a 43 percent soar while trucks
reached 57,371 units, a sharp 42 percent increase.
While the sales of locally-assembled automobiles were 32
percent higher than last year, the industry saw a dramatic 83 percent surge
in sales of imported vehicles.
In December alone, customers bought a total of 20,208
vehicles, up 27 percent against last month and 53 percent above the same
period last year, making it the 21st month with increased sales and the
highest sales month over the last three years.
Truong Hai and
Ford came in third place with 13,988 units, followed by Honda
with 6,492 cars and GM Vietnam’s 5,134 autos.
Long An border gate zone approved as
The Prime Minister has approved a broad plan for developing
the Long An border gate economic zone to 2030, with the hopes of making it
one of the Mekong Delta region’s industrial, commercial and service hubs.
The zone, located in the Mekong Delta province of Long An and
bordering the Cambodian province of Svay Rieng, will extend across 13,080
hectares of land and include an international border gate, Binh Hiep, and a
secondary border gate, Long Khot.
According to Decision No 07/2010/QD-TTg, established on
January 25, 2010, the zone will cover seven communes and one town.
By 2020, the zone is intended to have a population of 58,000
people, with 30,200 living in urban areas (52 percent). This is expected to
increase to 105,000 in total and 70,000 living in urban areas by 2030.
The zone will have 425 hectares set aside for industrial
parks, 146 hectares for small-scale industrial parks, and another 54 hectares
for mini industrial areas.
2015 business start-up programme launched
The Vietnam Chamber of Commerce and Industry (VCCI) on January
10 honoured winners of the business start-up competition 2014 and launched
the 2015 business start-up programme.
The programme is to bring business projects to life through
the development of networking and training, consultancy and investment linked
to building a community of highly-capable businesspeople.
Addressing the launch ceremony, VCCI Chairman Vu Tien Loc
called for more incentives for start-ups since the Vietnamese enterprises are
in a small number with not a high quality.
The programme will be a useful playground for young people
nationwide who are interested in running a business and contribute to
building a creative business community in the future, Loc added.
Dam Quang Thang, General Director of Vietnam Agricare company,
member of the competition’s review board, held that many projects are
feasible and applicable.
The first prize of the 2014 competition went to the A-seedling
project by students from the Vietnam Institute of Agriculture.
The San Tuyen tea production and distribution project and the
cochineal breeding project won second prizes.
Vietnam attends 7th Vibrant Gujarat Global Summit
Vietnamese Ambassador to
The Vietnamese diplomat announced his intent to meet with the
Association of Exporters and Importer (EXIM Club) to examine collaborative
potentials between the two countries’ economies, as well as discuss national
trade cooperation specifically with the
Event participants included Indian Prime Minister Narendra
Modi and numerous high level officials and representatives from over 90
countries and prominent enterprises.
Delegations will focus on fostering sustainable development,
creativity, skills development, knowledge sharing, and systematic work
initiatives within the state.
The event presents opportunities for other nations to develop
business ties with
PM Modi will meet with high-level leaders and policy-makers
from the
The biennial event will run from January 11-13, sponsored by
the
Tien Giang looks to produce clean eggs for export
The Mekong Delta
The province currently houses about 1.5 million quails and one
million black chickens, among other chicken varieties farmed under strict
food security requirements to produce quality eggs for export.
One breeding farm, owned by Phan Van Tieu in Phu Kiet commune,
Cho Gao district, has 4,000 black hens that can produce up to 1,200 eggs each
day.
According to the Director of the Southern Centre for Policy
and Strategy for Agricultural and Rural Development Nguyen Van Giap, their
centre has provided breeding skill training for 60 local households. Of
these, eight have been selected to farm between 1,000-2,000 black chickens
for eggs as a trial, in order to examine export potential in
After a four-year effort to meet all requirements of the
strict market, the Nguyen Ho quail breeding farm in Long An commune, Chau
Thanh district has joined with the fruit export company Tien Giang Food Corp
to export 12 million canned quail eggs to Japan since late 2013. With over
60,000 quails, the partnership is currently exporting 2 million canned quail
eggs to Japan each month.
Deputy Director of the provincial Department of Agriculture
and Rural Development Le Minh Khanh said there is a huge demand for canned
quail eggs in Japan, and the Nguyen Ho farm is among the two local facilities
that meet the Japanese partner’s strict requirements.-
The Mekong Delta forecast a per capita income of 43 million
VND (2,047 USD) in 2015, a 13.1 percent increase from 2014. The city of
To achieve this goal, the 12 regional provinces and Can Tho
city intend to restructure the agriculture, industry, and trade sectors to
raise their value above 1,308 trillion VND (62.28 billion USD), which would
represent an annual increase of 9.4 percent. Development in these sectors
would be designed to thereby stimulate a rise in individual income, said
Nguyen Phong Quang, Vice Chairman of the Steering Committee for the Southwest
Region.
Specifically, local provinces will form farming areas
dedicated to rice, fruit trees, and aquaculture products with high economic
values and efficient productivity. Nearly 4.2 million hectares of land will
be zoned for rice cultivation and 310,000 hectares for fruit trees, with an
additional 800,000 hectares of water surface dedicated to aquatic products.
With these designated zones, the Mekong Delta expects to
harvest 25 million tonnes of rice with 80 percent deemed high quality, 3.7
million tonnes of aquatic products, and 360,000 tonnes of fruit in 2015,
bringing the region’s agricultural production value to 94 trillion VND (4.47
billion USD), a 5 percent increase from 2014, Quang said.
Efforts will also be made to strengthen the local processing
industry and bring its industrial production value to 498 trillion VND (23.7
billion USD) –about 59.7 trillion VND higher than last year—he added,
continuing that eight coastal provinces will focus on processing aquatic
products and animal feed.
Meanwhile, coconut processing will be further developed in Ben
Tre, fruit processing will be facilitated in Tien Giang, Vinh Long, and Can
Tho, and sugar production will be fostered in Hau Giang, Soc Trang, Tra Vinh,
and Long An.
Quang also commented the region intends to generate a 2015
regional trade value over 650.2 trillion VND (30.96 billion USD), up 16
percent from 2014, and an export revenue of 11.9 billion USD, a 7.5 percent
annual increase.
They will assist 80,000 businesses to expand their presence in
the domestic market through wholesale and retail channels as well as trade
fairs. Local exporters will receive assistance in maintaining their shipments
to traditional markets like the US, the EU, China, Japan, and the Republic of
Korea with additional opportunities to join in a number of trade promotion
activities and fairs in Russia, Germany, Australia, and the United Arab
Emirates this year, Quang noted.
Further, the provinces will provide vocational training to
210,000 people across 369 educational establishments. Up to 11,000
small-scale projects will be implemented, creating jobs for 110,000
individuals and raising the employment rate in 2015 up 6 percent to more than
410,000 workers.
The Mekong Delta will also offer mortgage loans worth over 350
trillion VND (16.67 billion USD) to 254,000 low-income households, coupled
with effective social welfare programmes, he said. Can Tho city also held the
highest per capita income across the Delta in 2014 with 70.2 million VND
(3,342 USD), compared to the regional average of 38 million VND (1,809 USD) –
7.6 percent higher than 2013.
The Mekong Delta has a total area of around 40,000 square
kilometres and is home to a population of 18 million. It is a major
aquaculture region and the largest rice production hub of Vietnam.
Hanoi cuts procedural time for enterprise establishment
Hanoi has shortened the processing time for establishing an
enterprise from five to three days as of January 1.
The city is Vietnam's first locality to implement this
reduction. However, other localities are also required to do so under the new
Law on Enterprise adopted by the National Assembly in 2014.
"The city has taken the initiative in implementing this
regulation. This will help attract more investors as they will find it more
convenient to establish enterprises," Deputy Minister of Planning and
Investment Dang Huy Dong said.
"I am sure that the city's competitiveness index will
improve remarkably thanks to this move. Enterprises are the economy's
backbone and they have the right to enjoy the best business conditions,"
Vietnam Investment Review reported.
Trinh Thi Ngan, head of the Hanoi Small and Medium-sized
Enterprises Association's Consultancy Board, expected the move to
"greatly benefit enterprises," especially as they continued to face
"increasing difficulties."
However, she said the department needed to "clarify
procedures and business incentives" to make it easier for companies to
complete the procedures.
More than 13,400 enterprises were established in the capital
in 2014, equal to 96.5 percent of the 2013 figure. Charter capital totaled
98.43 trillion VND (4.7 billion USD), down 11.4 percent on the year.
Meanwhile, 735 enterprises went bankrupt, up 1.5 percent, and
more than 2,400 enterprises registered to suspend operations, down 11.5
percent.
The number of enterprises changing their business type was
nearly 32,300, up 28 percent. Two enterprises had their business licences
revoked for submitting fake business registration dossiers.
In 2014, the city attracted 418 new foreign invested projects
with a total registered capital of nearly 1.4 billion USD, up 26 percent on
the year and 7.4 percent more than the target of 1.3 billion USD.
Local firm to supply steel structures for suspension bridge
Thanh Long Joint Stock Company will become the first local
firm to supply large-sized steel structures for a cable suspension bridge
project in Vietnam since the work had been procured mainly by Chinese and
Japanese producers.
It secured a deal with the Republic of Korea’s joint venture
of Hanshin Engineering & Construction and GS Group in Ho Chi Minh City on
January 9 to be supported in technology and consultation in producing
large-sized steel structures contracted.
The company will manufacture structures requiring about 7,000
tonnes of steel in total for Vam Cong cable suspension bridge, one of the
four biggest and most modern in Vietnam.
The 2.97km-long Vam Cong bridge, is estimated to cost 271
million USD, contributed by the RoK’s ODA and Vietnamese corresponding
capital.
Spanning the Hau River, it will connect Dong Thap province
with Can Tho city, establishing a link between the western area and the
central Mekong Delta, thus lessening traffic load on National Road 1A.
Consumer goods market not reacting to fuel price cut
Despite a plunge in fuel prices since late July, prices of
consumer goods have remained consistent, dissuading buyers and limiting
purchases.
The prices of vegetables, meat and fish in Hanoi went
unchanged from the fourth quarter of 2014 to January 8, 2015, with beef at
170,000 – 200,000 VND (8-9 USD) per kilogram, chicken at 100,000 – 120,000
VND (4-6 USD), and prawns at 400,000 – 460,000 VND (19 – 21 USD) per
kilogram.
Although vegetables initially experienced a 10-20 percent
decrease in prices, costs have now returned to their higher rates recorded in
late 2014, including tomatoes that cost 15,000 VND (0.70 USD) per kilogram or
watercress sold at 5,000 VND (0.20 USD).
On the contrary, the transport market has responded to the
fuel price decline with nearly 80 taxi operators and 60 transport firms
reducing their costs early this year by 3- 15 percent, said Chairman of the
Hanoi Transport Association Bui Danh Lien.
Nguyen Manh Tuan, Deputy Director of My Dinh bus station, said
many operators have decreased their fares by 4-20 percent.
Within the farming market, low petrol prices have had a
marginal impact on cattle feed with an incremental price drop between 0.5 and
1 percent in the fourth quarter 2014, said Chairman of the Vietnam Feed
Association Le Ba Lich.
Chairman of the Hanoi Supermarket Association Vu Vinh Phu has
called on State management agencies to rearrange the supply chain to ensure
goods are made available at affordable prices, especially during volatile
times.
Since last July, fuel costs have declined by roughly 8,000 VND
per litre (0.3 USD).-
Business start-up 2015 launched
The Vietnam Chamber of Commerce and Industry (VCCI) on January
10 held an awards ceremony for winners of the Business Start-up Competition
2014 and launched the Business Start-up Programme 2015.
The prorgamme is aimed at realizing business projects through
the development of a business start-up network and accelerating training,
consultancy and investment link to build a community of strong and
professional business people.
VCCI Chairman Vu Tien Loc said Vietnamese businesses remain in
a small number with not a high quality. So, it is essential for the
Government to devise support policies for the setting up of more businesses
and improvement of their quality.
The Business Start-up Programmes together with other VCCI’s
projects on start-up training, business development and competitiveness
improvement have proved very helpful for young businesses in Vietnam.
In the framework of the Business Start-up Programme 2015,
feasible projects will be assisted by VCCI in their implementation and
long-term and sustainable development process, Loc underscored.
This will be an useful playground for young people nationwide
to start-up business and contribute to building a creative business community
in the future, Loc added.
Meanwhile, Dam Quang Thang, General Director of Vietnam
Agricare Ltd, member of the competition’s consultancy board held that many
projects are applicable.
The first prize of the 2014 competition went to the A-seedling
project of students from the Vietnam Institute of Agriculture. The San Tuyen
tea production and distribution project and the Cochineal breeding project
won second prizes.
Excess capacity clouds the outlook for steel sector in 2015
Integration and growth are the new buzzwords for the steel
sector in Vietnam as business enterprises look at global markets not just to
sell steel, but also to acquire the raw materials to fuel further expansion.
In 2014, the steel sector obtained a growth rate of 12% thanks
to active support from the Government and great effort by enterprises within
the sector.
Steel output jumped 10-15% to hit an all time record high of
12 million tonnes in 2014, meeting both domestic demand and exports,
according to statistics from the Ministry of Industry and Trade.
Welded steel pipes had a particularly strong year. In spite of
a US anti-dumping lawsuit on welded steel pipes and welded stainless steel
pressure pipes, enterprises throughout the sector report higher growth
compared to previous year.
Welded steel pipe output shot up 40% on-year to hit 1.3
million tonnes, 1.1-1.2 million almost all of which had been consumed by
year’s end.
The favourable results have been attributed to a well
implemented State policy to reenergise consumption. The restarting of many
construction projects during the year in conjunction with a VND30 trillion
State stimulus package helped jump-start the demand for steel.
In particular, an inter-circular effective June 1, 2014 issued
by the Ministry of Industry and Trade and the Ministry of Science and
Technology redefined the standards for the quality of domestic and imported
steel. The circular was instrumental in curtailing trade fraud.
Vice Chairman of the Vietnam Steel Association Nguyen Van Sua
said high growth is evidence that Vietnamese steel can be competitive in the
global marketplace.
Sua cited iron sheet as a prime example of the success of the
sector for 2014, for which Vietnam led the world in production at 2.7-2.8
million tonnes, far outpacing Thailand output at 2 million tonnes.
The investment that the sector made in technology and better
management efficiency over the past few years returned big dividends in 2014
and most certainly would continue to pay off in 2015, Sua said.
Leading market analysts have forecasted that the steel sector
will face more difficulties in 2015 as new trade pacts come into effect and
price competition intensifies as tariffs are reduced.
They also anticipate anti-dumping lawsuits by enterprises
around the globe will pick up as it is becoming increasingly popular to use
these types of legal maneuverings as trade protection measures to avoid
direct and fair competition.
VSA Chairman Pham Chi Cuong said governmental agencies at all
levels should pay more attention to the steel industry by devising specific
measures including adjusting the sector’s master development plan and
balancing supply and demand.
They should also initiate measures, including anti-dumping
lawsuits if appropriate; to prevent low quality imported products from
entering the domestic market to ensure healthy competition among businesses.
VSA has forecasted the steel sector would achieve growth of
11.8% in 2015. To obtain the target, VSA has proposed relevant agencies
recheck investment projects to eliminate inefficient ones to avoid a supply
and demand imbalance.
It is incumbent upon the government to open door in 2015 to
allow private enterprises in the steel sector to get involved in State-owned
projects to increase demand and help keep pace with the increase production,
Cuong concluded.
Vietnam Trade Office issues internet scam alert
Vietnamese business enterprises have been put on alert by the
Vietnam Trade Office in the Netherlands over instances of internet scams and
are urged to be cautious of fraudulent activity.
The warning follows revelations that a Vietnamese enterprise
recently was defrauded by a fake Dutch company – New Wells Commodities –
whose internet website address is www.newwellsco.com.
The Vietnamese company placed an order for 40-50 containers of
Heineken beer a month and paid New Wells Commodities a 30% deposit in advance.
To add insult to injury the company then paid transport fees.
However, the shipment never arrived and upon further
investigation by the Vietnam Trade Office there is no New Wells Commodities
and the entire transaction was a sham replete with fake addresses.
The Trade Office has advised all local businesses to be
cautious and ask its representatives for assistance before paying for any
large shipment of goods upfront before receipt and inspection of the items.
Nearly 158,000 automobiles sold in 2014
157,810 automobiles were sold in 2014, making the total
turnover up by 43% against the previous year, of which cars rose by 43% to
100,000 and trucks by 42% to 57,371 units, according to the Vietnam
Automobile Manufacturers Association (VAMA).
VAMA reported that sales turnover of domestically assembled
automobiles surged by 32% while imported units rocketed 83%.
In December 2014 alone, 20,208 vehicles, including 13,221 cars
and 6,987 trucks were sold, a year-on-year rise of 53%. This is the 21st
month sales turnover that hit a record high over the past 3 years.
The automobile market also witnessed a fierce competition
between Truong Hai (Thaco) and Toyota to lead the sales turnover.
Local business imports up to 3,000 cows from Australia monthly
Trung Dong Ltd Company in Bien Hoa City, Dong Nai province
imports around 1,500-3,000 cows from Australia worth US$1.5-3 million each
month.
The company’s Director Truong Thi Dong said each month the
company supplies around 600-1,200 tonnes of fresh beef to domestic supermarkets.
The cows are granted certificates of veterinary inspection by
the Australian Quarantine and Inspection Service (AQIS) before being shipped
to Vietnam.
After the cows arrived at Go Dau Port, the Department of
Animal Health under the Ministry of Agriculture and Rural Development (MARD)
will fulfill all procedures relating to veterinary quarantine services. And
then the cows will be transported to a breeding farm in Tan Hoa ward, Bien
Hoa City.
Doosan Vina sends filters to Chile
Doosan Heavy Industries Viet Nam Company (Doosan Vina) has
shipped reverse osmosis (RO) desalination filter systems to Chile, following
the Escondida Water Supply project agreement signed last February.
The Quang Ngai-based company told Vietnam News yesterday that
this was the first shipment of the 1,705-tonne filter equipment to the
Escondida copper mines, located in northern Chile, for supplying 220 million
litres of water for 550,000 people each day.
As planned, the second round of cargo will be shipped to Chile
on January 18, and the last units and facilities of the filter system will be
exported from February 15 to April 30. The company is the first producer of
RO desalination filter systems in Viet Nam.
Vinatex holds first shareholder meeting following equitisation
The first shareholder meeting of the Viet Nam National Textile
and Garment Group (Vinatex), which is preparing to operate as a joint-stock
company, was held on Thursday.
During the meeting, Le Tien Truong, general director of
Vinatex and the representative of State capital in the group, announced that
the firm would offer initial shares in 2017.
The group also appointed people to the management board. Among
seven members of the board, four are representatives of the State capital,
while the other three are property giant Vingroup's (VIC) Le Khac Hiep as
vice chairman, VID Group's Le Dinh Ngoc and VinaCapital's Don Lam.
Meanwhile, Deputy Minister of Industry and Trade Ho Thi Kim
Thoa said that by the end of this year, the group would fully divest from 37
subsidiaries, while increasing investment in some of the member companies.
Last year, Vinatex's revenue hit VND51 trillion ($2.3
billion), rising 13 per cent compared to 2013. It has received enough orders
for the first half of this year.
From 2015 to 2017, Vinatex aims to earn revenues of VND1.26
trillion (US$59.1 million), VND2.68 trillion ($125 million) and more than
VND3.65 trillion ($171 million); and net profits of VND288 billion, VND343
billion and VND412 billion respectively.
Vinatex has been equitised at a time when the textile and
garment industry faces an influx of both opportunities and challenges, with
free-trade agreements involving South Korea, the Russia-Belarus-Kazakhstan
Customs Union and the Trans-Pacific Partnership (TPP).
In September, investors purchased more than 90 per cent of its
initial public offering, nearly half of which were bought by foreign
investors.
OCB freezes accounts of Ocean Hospitality
The Ocean Bank (OCB) blocked the accounts of Ocean Hospitality
on January 7, two days after it did the same with the hotel operator's parent
firm, the Ocean Group.
Ocean Hospitality Chairman Ha Trong Nam shared the development
on the company's website and in despatches sent to the State Securities
Commission and the Ha Noi Stock Exchange on January 8.
The Ocean Group said in an online statement on Thursday that
the account freeze is temporary and has been implemented to aid police
investigations into allegations of lending operation violations at the bank,
following a criminal prosecution decision issued by the authorities last
October.
"All operations and transactions of the Ocean Group are
still taking place normally and are under our control," the notice said,
adding that the company's accounts at other banks and credit institutions are
also operating normally.
"Currently, we are working with the Ocean Bank and
relevant agencies to clarify this blockade request, and will notify you as
soon as possible," it told customers, partners and shareholders.
Former Ocean Bank deputy general director Nguyen Van Hoan was
arrested on December 22 for allegedly acting as an accomplice of Ha Van Tham,
who was the former chairman of the bank and was arrested on October 24.
The police found that Tham had signed a decision approving a
VND500 billion (US$23.4 million) loan to the Trung Dung Commercial Ltd
Company, even though he was aware that the firm's loan application was
unsatisfactory.
Financial reports for the third quarter of 2014 revealed that
on September 30, the Ocean Group had deposited over VND407 billion ($19.38
million) out of its total VND550 billion ($26.19 million) deposited assets,
at the Ocean Bank.
The company borrowed nearly VND655 billion ($31.19 million)
from the bank, or 22 per cent of its total debt. It is also among the largest
shareholders of the bank, owning a 20 per cent stake in the bank.
The Ha Noi-based Ocean Group has a charter capital of VND3
trillion ($142.86 million) and deals in banking and finance, real estate,
hotel and media. It reportedly owns nearly 67 per cent of Ocean Hospitality's
equity.
On January 9, Ocean Group shares hit dived, closing down 0.4
points at VND6,300 ($0.3) per share on the HCM Stock Exchange.
Ocean Hospitality shares also saw no trading, with their
reference price anchored at VND25,100 ($1.2) per share on the Ha Noi Stock
Exchange.
The accounts of the Pacific Asset Management Company were also
blocked at the Ocean Bank on January 5 following a police order. The firm
reportedly holds a 5.97 per cent stake in Ocean Hospitality and is chaired by
Ocean Hospitality Deputy General Director Le Minh Thanh.
Investors withdraw from parking lots
Nguyen Huu Tin, deputy chairman of the HCM City People's
Committee, has instructed the Department of Transport and other relevant
agencies to work together to draft preferential policies for attracting
investment in underground parking lots in the downtown area.
His reaction came soon after two investors wanted to pull out
of the projects citing low returns on huge investments.
The Viet Nam Urban and Industrial Zone Development Investment
Corporation asked to withdraw from a proposed project to build a lot under
Tao Dan Park in District 1 at an estimated cost of VND1.4 trillion (US$67
million).
The Indochina Group, the other would-be investor seeking to pull
out, is to build under the Hoa Lu stadium at a cost of VND1.6 trillion.
Tin also called on related authorities to review parking space
in downtown public places and high-rise buildings to calculate how much space
is available – to tweak the designs of the proposed underground lots and
determine their parking rates.
Meanwhile, work on the lot under District 1's Le Van Tam Park
will finally start at the end of April following a four-year delay while
procedures are being wrapped up for the one under Trong Dong Theatre.
Based on a 2008 master plan, the city is set to build eight
underground lots in District 1.
Highway to join provinces
A project to connect the central provinces of Nha Trang and
Phan Thiet with a VND46.3 trillion (US$2.1 billion) highway is awaiting the
Ministry of Transport's approval.
Once integrated into the North-South highway network, the Nha
Trang-Phan Thiet highway would shorten the travel time to Khanh Hoa, Ninh
Thuan and Binh Thuan provinces.
The project would be completed in two phases, beginning with a
four-lane highway designed for a 100 km/h speed limit and then adding two
lanes, according to Project Management Unit 6 (PMU 6).
If the Ministry of Transport gives it a green light, the
project would start in the third quarter and finish in 2020. The highway
would have 11 intersections, 83 tunnels bypassing residential areas, 97
bridges and a 2km tunnel through Nui Vung Mountain.
Fourteen autonomous and semi-autonomous toll stations would be
set up along the highway as well as eleven rest stops, two maintenance
workshops, four repair shops and a highway management centre.
Guidelines issued on selling public firms
Prime Minister Nguyen Tan Dung has signed Decree128/2014/ND-CP
regulating the sale of wholly State-owned enterprises (SOEs).
According to the decree, the price of a sale will be defined
in accordance with the method of selling (auction or direct sale), payment
method, registered price and the number of employees that the buyer will
continue to hire, with the price being no less than the reference price.
In the event that two buyers seek to purchase a SOE, the
company will be sold through auction with a commitment to handle labour
issues. If there is only one buyer, the method chosen will be direct
negotiation.
The proceeds from the sale will be contributed, in part, to
the State budget, with the amount being equivalent to the value of the land
use rights. The remaining money will pay for the costs of preparations of the
sale, resolving debts that the buyers do not inherit and implementing
policies for employees.
Other destinations for money received from the sale include
corporate arrangement support funds.
The decree will take effect in March and is designed for the
purpose of moving forward with the process of restructuring and equitising
SOEs based upon Government guidelines.
Land prices soar in Binh Duong Province
Land prices have recently shot up by 30-40 per cent in the
southern province of Binh Duong after a series of major housing and other
property projects got under way there, according to analysts.
The projects include the US$1.2 billion Japanese-invested
Tokyu Binh Duong Urban Area, N.H.O's VND600 billion First Home Premium, and
Gloucco Land's The Canary.
Besides, Singapore's VISP has begun work on the 4,300ha Binh
Duong Industry-Service-Urban Complex, which has reportedly helped attracting
foreign investors to Binh Duong.
The analysts said that since 2014 the province's property
market has showed distinct signs of recovery.
Land prices have risen consistently, particularly near the
Binh Duong Industry-Service-Urban Complex, which along on major routes to HCM
City and provinces in the south-east and Central Highlands regions.
Explaining the Binh Duong market's early recovery, they pointed
to the fact that the province has been in the forefront of attracting
domestic and foreign investors.
Last year it attracted $1.53 billion in foreign investment, a
majority of which flowed into the property market.
To date the province has attracted FDI worth $20 billion.
Strong development of social and transport infrastructure is
one of the main reasons for Binh Duong's attractiveness for foreign
investors.
It has an excellent road network that makes it very easy to
get around for business purposes.
In addition to important highways like DT 742, Vo Van Kiet,
Nguyen Van Linh, and National Highway 13, Binh Duong also plans to develop
seven metro routes that will connect the province with
The provincial administration's priority for investment in
clean industrial parks such as Hi-tech Mapletree, VSIP I, and VSIP II has
also made a significant contribution to attracting foreign investors.
As for social infrastructure the province has all kinds of
services and facilities of good enough quality to meet even foreigners'
demands.
They include schools (Kindleworld International School, Mien
Dong International School and Viet-Duc International University), hospitals
(Binh Duong General Hospital and the 512 General Hospital), major malls and
supermarkets (Metro, Saigon Coop, Lotte Mart, Aeon, Big C, Citi Mart) and
parks.
New
Source :
VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
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Thứ Hai, 12 tháng 1, 2015
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