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BUSINESS IN BRIEF 14/1
Parkson opens first mall in Da Nang
Parkson opened its first mall in the central city on Sunday,
marking its 10th shopping centre to be opened in
The VND63 billion (US$3 million) project, which covers
10,000sq.m in the Parkson Vinh Trung Plaza B, is expected to report sales of
between $12 million and $15 million per year and creating nearly 1,000 jobs.
Previously, Parkson stores, housed in Ha Noi Keangnam
Landmark, closed its doors suddenly on January 2. Parkson management unit
said the stores' closure was a result of "huge losses" it and its
partners had suffered since the shopping mall's opening in 2011.
Senior SHB executive arrested
Sai Gon-Ha Noi Commercial Joint Stock Bank (SHB) senior
executive Tran Huy Anh was arrested last week for allegedly misappropriating
hundreds of thousands of US dollars, tuoitre.vn reported.
Huy Anh, 32, is the head of the SHB's transaction office
located on
The Director of SHB's Ba Dinh branch and its internal audit
department chief had caught Huy Anh red handed on December 12, 2014, when he
was found using the bank's official seal to stamp a fake deposit contract
worth about VND30 billion (US$1.4 million).
Following the incident, the SHB's branch had reported the case
to the police.
A customer in the Dong Da District had deposited $230,000 with
a 15-month term at SHB's Thai Thinh's branch on July 16, 2014. However, Huy
Anh did not enter the money into the bank's system but kept it for personal
use.
In November 2014, the customer wanted to withdraw the money,
but Huy Anh failed to pay her. He reportedly then persuaded the customer to
sign a fake VND30 billion-deposit contract and used this contract to borrow
money from another bank.
Mobile World receives $2m in shares after bonus payout
Nguyen Duc Tai, chairman and CEO of Mobile World Investment Co
(MWG), is reported to have received 387,700 shares in the company under its
employee stock ownership plan (ESOP), worth around VND42.3 billion (US$2
million).
Tai directly owns 2.67 million MWG shares and has indirect
ownership of 15.45 million shares through Retail World Investment Consultant
LLC. With the current price of nearly VND110,000 ($5.14) a share, Tai is 7th
on the list of the richest people in the Vietnamese stock market.
Mobile World last month issued 5.33 million ESOP shares to
nearly 600 employees. The issuance, extracted from its after-tax profit, is a
bonus for the company's staff thanks to its positive performance last year.
However, the shares will be restricted from transferring from
December 10, 2014 to December 10, 2015. Shareholders can sell 50 per cent of
ESOP shares from November 12, 2015 to December 12, 2016. From December 13,
2016 onwards, the shares will be freely transferable.
2014 was a good year for the mobile phone retailer, with
estimated revenues of VND15.5 trillion ($752 million) and after-tax profits
of VND670 billion ($32 million). The figures mark year-on-year increases of
66 per cent and 159 per cent, respectively.
The company opened 350 new thegioididong.com and dienmay.com
outlets last year. Online sales of these two sites were around VND1 trillion
($46.7 million) last year and are expected to double this year. CEO Tai said the
company would strive to reach this year's turnover target of $1 billion.
Mobile World debuted shares in July 2014 and its price climbed
almost 34 per cent in less than one year from VND81,500 to nearly VND110,000.
New expressway needs funding for completion
Nearly VND1.3 trillion (US$61.5 million) was needed to
complete a section from Ha Noi to Thai Nguyen on the new National Highway 3,
according to the Ministry of Transport's Project Management Board 2.
The project started in November 2009 and opened to traffic in
January 2014, but remains unfinished due to unforeseen work and costs.
The Management Board has asked the ministry for additional
investment in the form of the build-operate-transfer model to complete the section,
which is 63.8km long .
The section was part of the longer expressway running from Ha
Noi through Thai Nguyen to Bac Kan Province, known as the Ha Noi–Thai
Nguyen–Cho Moi Expressway, which is 90km long and one of seven expressways
under the Viet Nam Expressway Plan to 2020, Deputy General Director Luu Viet
Khoa of the Management Board.
Khoa said the expressway, which is divided into two sections
from Ha Noi–Thai Nguyen and Thai Nguyen–Cho Moi, would complete a network of
expressways in the North, and contribute to the region's socio-economic
development plans, especially as the number of accidents on the old National
Highway 3 was increasing.
Added investment is needed for an additional layer of asphalt
so the road can handle high-speed traffic as wells as the constructions of
underpasses and slip lanes.
The installation of an intelligent transportation system for
enhanced safety along the road will also be developed using this extra
funding.
Budget revenue for
The figures were released during a conference held last Friday
to review tax operations in
Le Xuan Duong, deputy head of the HCM City's Tax Department,
said last year domestic revenue (excluding budget collections from crude oil)
exceeded the target to reach VND129.5 trillion ($6.07 billion), an increase
of nearly 9 per cent over the previous year and four per cent higher than the
year's target.
The budget collection from the economic sector in the city,
for the first time, surpassed the city's target last year to top $92.5
trillion ($4.3 billion), accounting for more than 70 per cent of total
domestic revenue.
Le Thanh Hai, secretary of the Party Committee of HCM City,
said tax collection from the city's four key industrial sectors had increased
significantly over the past years and contributed up to 59 per cent of total
domestic revenue last year.
This proved that the city's economic sector was heading in the
right development direction, he said, adding that there were 16 businesses in
the city with tax payments of up to VND1 trillion ($46.9 million) each.
Nguyen Dinh Tan, head of the city Tax Department, attributed
the high budget collection results to the city's policies to help businesses
untie difficulties in production, trading and consumption, and programmes to
enable them to improve competitiveness and promote trade both within and
outside the country.
The department made efforts to strengthen administrative
reform last year, he said, noting that there were 9,000 enterprises paying
tax online in 2014. In addition, nearly 98 per cent of businesses registered
for online tax payments.
Nguyen Thi Hong, deputy chairwoman of the HCM City People's
Committee, ordered tax agencies to continue simplifying administrative
procedures and hold dialogues with businesses to solve difficulties faced by
them and help them understand new policies.
She also ordered the department to improve the reclaimation of
tax arrears from businesses in order to reduce total tax arrears to less than
five per cent of the total budget revenue by the end of this year.
Do Hoang Anh Tuan, deputy minister of Finance, said the
department should strengthen online tax registration and tax payments online
to enable every business in the city to register for online tax payment.
He also urged the tax department to promote the use of
e-invoices among businesses.
The Ministry of Finance has assigned the city to collect
VND265.77 trillion ($12.46 billion) in budget revenue this year, of which
VND143.77 trillion ($6.74 billion) would be in domestic revenue, excluding
income from crude oil.
Farming sector to ramp up exports in new year
The agricultural sector will seek strong growth in production
and business this year, after recording increases in exports last year,
according to the Ministry of Agriculture and Rural Development (MARD).
In 2015, the agricultural sector expects to see an increase of
3-3.3 per cent in gross domestic product (GDP), a year-on-year surge of
3.5-3.7 per cent in the value of production and US$32 billion in the value of
farming exports, forestry and seafood products, compared to $30.8 billion in
2014, reported vietnamplus.vn.
Also, the agricultural sector hopes to focus on increasing
high added value agricultural products, efficiency and sustainable
development.
In 2015 the local economy is expected to further integrate
into the global economy, which will cause the agricultural sector to continue
reviewing and adjusting plans and structures of production to increase
productivity, as well as the quality and efficiency of exports and local
markets, said Minister of Agriculture and Rural Development Cao Duc Phat.
To raise the total export value of the sector to $32 billion
this year, the ministry will actively work to implement existing multilateral
and bilateral agreements, including with the World Trade Organisation and
regional free trade commitments.
Officials noted that it will stand side by side with exporters
by updating them on foreign markets' latest trade policies and jointly
devising feasible market strategies for added-value products.
To extend its commercial reach, the ministry will also promote
marketing activities and promptly deal with technical and trade barriers.
According to the MARD,
The farming, forestry and fisheries sector also posted an
estimated $9.5 billion in its trade surplus, a rise of 7.7 per cent.
The ministry said, in 2014, that the value of most export
products has surged against previous years, though 2014 has not been a
promising year for the consumption of farm products at home or abroad.
Demand for farm products on the world market has continued
falling since 2012 because key export markets of Vietnamese farm products,
such as the European Union (EU), the
However, seafood and forestry exports had strong growth in
export values to push the sector's total export value up last year.
Seafood took in $7.92 billion, marking a yearly growth of 18.4
per cent, with the
Also, wood and wooden products enjoyed an increase of 11.1 per
cent in earnings, at $6.2 billion last year. The US,
VN aims to increase rice exports
Those markets saw rising demands for rice, the ministry's
Department of Africa, Western and Southern Asia Markets said.
The department cited statistics from the Food and Agriculture
Organisation of the United Nations, which stated that rice consumption in
Since 2009,
The department pointed out that import demands for rice in
West and
Statistics from the Viet Nam General Department of Customs
showed that, as of November 2014, Vietnamese rice was exported to 46 of 78
markets in Africa, Western and
Rice exports to major markets, including
The decline was also attributed to the impact from the Ebola
epidemic, which struck several
The ministry believes there are significant potentials for
Among measures being undertaken to boost rice exports, the
ministry said, included negotiating memoranda of understanding (MoU) to sell
rice to the
Also, marketing and promotional efforts would be strengthened,
while co-ordination with other governmental agencies involved in
agro-forestry-fisheries exports would be improved.
Support to provide market information and opportunities, along
with the establishment of warehouses in major markets, such as
2014 was a difficult year for rice exports from
Statistics showed that as of November, rice export from
As difficulties for rice exports were expected to continue
this year, the ministry urged keeping a close watch on market fluctuations
and expanding exports to new and potential market, while enhancing the
quality of Vietnamese rice.
More trade opportunities to be offered at home, abroad
The newly-approved 2015 national trade promotion programme,
worth VND100 billion (US$4.65 million), has been highly acclaimed by
businesses, bankers and localities across the country, a conference in Ha Noi
heard late last week.
The programme covers 212 projects, involving expansion of
markets at home and abroad, trade promotion in economic zones and training
for businesses, co-operatives and marketing organisations.
It will also focus on the domestic market, including
establishing distribution channels in rural, mountainous and border areas, as
part of efforts to push the campaign "Vietnamese should prioritise use
of Vietnamese goods."
During the review of the 2014 national trade promotion
programme and launching of tasks for 2015, Deputy Minister of Industry and
Trade Do Thang Hai urged firms to seize the opportunities offered by the
upcoming free trade agreements with the European Union,
Deputy Director of the Trade Promotion Agency (Vietrade) Ta
Hoang Linh said the national trade promotion programme in 2014 made some
encouraging achievements in this context even as global and domestic
economies continued to encounter many challenges.
The programme supported the domestic firms effectively in not
only exploiting the local market but also the traditional outlets such as the
US, the EU, Japan and Korea, besides seeking new markets, Linh said.
More than 7,680 domestic enterprises received help to
participate in trade promotion activities through the programme in 2014,
according to Vietrade's statistics.
Trade fairs held under the scheme attracted more than 2.21
million visitors, with the total value of signed deals, memorandums of
understanding and sales revenue reaching above $1.89billion.
Last year, the State distributed VND110.13 billion
(approximately $5.12 million) to the programme to implement support
activities for domestic enterprises.
State Treasury to issue G-bonds in Q1
The State Treasury of Vietnam plans to issue bonds worth 70
trillion VND (3.28 billion USD) in the first quarter of 2015, said the
treasury in January.
The bonds will be mobilised to meet the capital demand of the
State Budget and the local development investment in the first quarter.
The State Treasury said that it will mobilise 55 trillion VND
(2.58 billion USD) in five-year bonds, 10 trillion VND (469.4 million USD) in
ten-year bonds and 5 trillion VND (234.7 million USD) in 15-year bonds.
Last December, the Ministry of Finance announced that
Of the total, more than 234 trillion VND (11 billion USD) were
raised from government bonds (G-bond), an increase of 30 percent compared
with 2013, and 3.5 times higher than in 2010.
Businesses in Binh Duong seek 45,000 unskilled workers
Enterprises in Binh Duong province, one of the southern
region’s economic centres, need to recruit over 45,000 unskilled workers in
2015 to meet their production demands in garment, footwear and wood
manufacturing fields.
According to the province’s employment centre, more than
21,000 unskilled jobs were available during its first job exchange session on
January 11, offering a monthly salary of 4-5 million VND (235 USD).
The businesses looking to hire new employees include Truong
Thanh Wood Industry Company, Apex Vietnam Co., Ltd, and Sheico Vietnam Co.,
Ltd.
Nguyen Thanh Phuong, head of the job introduction office, said
that this year the office continues to help local businesses take part in
labour linkage programmes with other provinces to attract workers.
Last year, businesses in the province generated jobs for more
than 46,000 labourers. Over 4,000 businesses registered to recruit 70,000
labourers at job exchange sessions during 2014, but only 37,000 people were
ultimately employed.
Textile, garment firms expect buoyant growth
The upcoming signing of a raft of free trade agreements, both
bilateral and multilateral, between
Accordingly, since late 2014 the sector’s major players such
as Phong Phu, Nha Be, Thai Nguyen and Hung Yen garment companies said they
had already signed export orders lasting through most or all of the year.
Chairman of Hung Yen Garment Nguyen Xuan Duong was quoted as
saying export orders are not a concern for the company as it had already
signed export contracts with major customers through the end of the third
quarter.
Last year Hung Yen Garment eyed a 16 percent hike in total
export value to 350 million USD, and now expects even better results this
year thanks to more favourable export conditions.
Another industry leader, Ho Chi Minh City-based Nha Be Garment
Corporation (NBC) revealed that is had signed export orders through the end
of the year.
"Our main target this year aims to boost productivity
while improving quality to achieve the best possible efficiency," NBC
Deputy General Director Nguyen Ngoc Lan was cited as saying.
According to Deputy Chairman of the Vietnam Textile and
Apparel Association (Vitas) Le Tien Truong, the sector’s high export value of
24.5 billion USD (up 19 percent on-year) in 2014 was the result of constant
endeavours by businesses in the sector, and also from benefits of Vietnam’s
free trade agreement (FTA) negotiations with the EU, the Republic of Korea
and the Customs Union as well as the Trans-Pacific Partnership (TPP).
Though these FTAs have yet to take effect, they have already
motivated positive results with Vietnamese producers focusing their
deal-making on countries involved in these agreements.
Consequently,
Exports to the
This also sets a premise for the textile and garment sector to
see continued strong growth this year.
Accordingly, the textile and garment sector aims to achieve an
export value of 28-28.5 billion USD this year, with exports to the
Handicraft exports surge
In 2014, the export value of Vietnamese handicrafts jumped 8
percent on-year to 1.6 billion USD, accounting for one-fifth of world market
share, radio The Voice of Vietnam (VOV) reported.
However,
This was recently announced by the Department of Processing
and Trade for Agro-Forestry-Fisheries Products under the Ministry of
Agriculture and Rural Development (MARD).
The MARD had approved a plan to export handicraft products for
the period 2010-2015, which set an export target of 1.6 billion USD. However,
the sector fulfilled the target a year ahead of schedule, the Ministry
reported.
Last year,
Other ancillary products in the handicraft industry fetched an
export turnover of some 190 million USD.
The US, Europe and
Vietnam Handicraft Exporters Association (Vietcraft) General
Secretary Le Ba Ngoc said last year, an inflow of handicraft orders from
However,
Vietcraft Vice President Do Van Khoi said due to lack of
investment in production technologies and product design, several craft
villages and businesses have opted to make low-cost products instead of
higher added value items.
Ba Ngoc warned that to promote advantages and increase export
turnover, Vietnamese enterprises should focus on mid-end markets in line with
their production capacity, material source and working skills and put off
targeting higher end markets until later years. Especially, they should also
apply for trademark protection.
The MARD has also devised concrete solutions to accelerate the
development of craft villages and boost exports. At the same time, the
ministry should take measures to build sustainable material zones with a
priority given to specialised cultivation areas.
In addition, the Ministry urged enterprises to develop
traditional handicrafts with lower investment capital, high job creation and
focus on training human resources to speed up the export of highly added
value and creative handicrafts and seek highly lucrative markets.-
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.
Can Tho strives for 485 million USD aquatic exports
The Mekong Delta city of
To this end, the city will focus on enhancing product quality
to meet food safety requirements and diversifying export products, said Duong
Dinh Hiep, deputy head of the department.
Together with expanding the application of international
quality standards in aquaculture farms, the city will concentrate on
brand-building activities and calling for more businesses to invest in
top-to-end production chains, said Hiep.
Farming areas to the VietGAP and Global GAP standards will be
expanded to double the current 500 hectares, while quality control will be
tightened at 12,000 other hectares, Hiep revealed.
As part of efforts to ease raw material shortage, the locality
plans to buy over 100,000 tonnes of shrimp and tra fish from the neighbouring
provinces of Ca Mau, Kien Giang, Bac Lieu, Soc Trang, An Giang and Dong Thap,
he said.
Hiep added that this solution is expected to raise the
proportion of high-quality aquatic products to 22 percent out of total
160,000 tonnes projected to be exported in 2015, meeting the needs of tough
customers in Europe, North America, Oceania and
According to the department, in the first 10 days of 2015, the
city shipped abroad 4,400 tonnes of aquatic products for 13.3 million USD, up
1.7 percent over the same time last year.
Data from the city’s Department of Investment and Planning
showed that in 2014, despite technical barriers and trade disputes initiated
by foreign partners, the city exported 140,000 tonnes of aquatic products
worth 420 million USD, an increase of 9 percent year on year.
The results pushed Can Tho’s total export revenue in the year
to 1.35 billion USD, the highest recorded by a Mekong Delta locality.
Sugar, poultry egg imports to rise in 2015
The Ministry of Agriculture and Rural Development (MARD) has
agreed with the Ministry of Industry and Trade (MoIT)’s 2015 plan on import
quota of sugar, salt and poultry egg as part of efforts to realise WTO
commitments.
Accordingly, Vietnamese companies will be allowed to import
81,000 tonnes of sugar, 102,000 tonnes of salt and 555,600 poultry eggs this
year.
Among 102,000 tonnes of salt, the same volume as last year,
2,000 tonnes and 40,000 tonnes will be imported by firms operating in the
medical and chemical sectors, respectively. Chemical businesses are encouraged
to use domestically-produced salt for their production activities.
The MARD asked the MoIT to roll out measures to create
transparency and justice among importers.
Last year, the country bought 77,200 tonnes of sugar and 529,2
00 poultry eggs from overseas markets.
Phu Quoc island district moves to reel in more investments
Authorities of Phu Quoc island district, the southern province
of Kien Giang, plan to employ a wide range of measures to invite more
domestic and foreign investors into the locality this year.
Located on the Vietnam-Cambodia-Thailand marine economic
corridor, Phu Quoc district covers more than 593sq.km with a population of
over 100,000. It comprises 27 islands with Phu Quoc being the largest and
dubbed the Pearl Island.
Local administration is making the best use of special
mechanisms and policies given by the Government along with stepping up
investment promotion programmes and tackling administrative and
infrastructural difficulties.
The district is overhauling detailed development plans for
functional areas and putting into use critical infrastructural facilities. At
the same time, resident relocation and site clearance will be accelerated to
ready the ground for licensed projects.
In 2014, the Kien Giang provincial People’s Committee licensed
53 projects in Phu Quoc district, including four FDI ones, with a total
capital of nearly 65 trillion VND (3.09 billion USD). The district is
currently home to 136 projects worth 140.21 trillion VND (6.67 billion USD)
that cover more than 5,000 hectares, according to the Investment and
Development Authority of Phu Quoc island.
Key facilities have been operational and proved effective such
as Phu Quoc International Airport, An Thoi International Seaport, Bai Vong
tourism port, and the 110kV undersea power cable linking mainland Ha Tien
town and the island.
Meanwhile, large-scale tourism projects, including luxury
hotels, are well underway in the tourist areas of Bai Truong, Bai Dai, Bai
Khem, and Bai Sao. Local hotels have been upgraded to cater for over 7,500
visitors a day. Particularly, 300-ha Vinpearl Phu Quoc resort that houses a
five-star hotel with 750 rooms, a 27-hole golf course, and a modern
entertainment centre was inaugurated in 2014.
Vice Chairman of the Phu Quoc district People’s Committee
Huynh Quang Hung attributed such projects to local development, elaborating
that last year, local GDP grew by 27 percent from 2013 while per capita
income topped 4,000 USD.
The district welcomed 586,000 tourist arrivals in 2014,
including over 124,500 foreigners, representing respective increases of 40
and 32 percent from a year earlier. Therefore, it also saw an 84 percent rise
in tourism earnings to more than 2.2 trillion VND (104.7 million USD), he
added.
However, the Kien Giang People’s Committee also revoked
licenses of 23 projects in Phu Quoc, including five FDI ones, due to their
sluggish implementation, unconformity with the adjusted planning, and
investors’ poor financial capacity, the official noted.
Kien Giang is working on procedures to recognise Phu Quoc
Island as a provincially-run city in the time to come, which is a step in
turning the island district into a special economic-administrative zone by
2020.
In the long term, the island district is envisioned to become
an economic and political hub, a crucial frontier in national defence and
security, and a crucial transit point for international travellers.
Forestry industry targets VND25 trillion of production value
Forestry production value increased 7.09% in 2014 while
forestry exports earned USD6.3 billion, a 14% rise over a year earlier,
reported the Ministry of Agriculture and Rural Development’s Administration
of Forestry.
The industry planted nearly 220,000 hectares of forest, 105%
of the year’s plan and reached forest coverage of 41.5%.
In 2015, the industry targets a forestry production value of
VND25 trillion, raising the production value from 7% to 7.2%. It also strives
to earn an export turnover of USD6.7 billion and targets 42% of forest
coverage.
Together with the specific goals, the industry will focus on
improving the productivity and value of plantation and production forests and
closely control violations to natural forest.
Building strategy to attract FDI in agricultural sector
While foreign investors of the whole country tend to increase,
the flow of capital into the agricultural sector is too small in the scale of
projects and the low proportion of the investment capital compared to total
foreign direct investment (FDI) of the whole country. This requires the
agricultural sector to have a long-term strategy to attract FDI.
According to Mr. Nguyen Van Toan, Deputy Chairman of the
Vietnam’s Association of Foreign Invested Enterprises (VAFIE), the reason why
FDI in the agricultural sector is gloomy over the past long-time because the
investment in the agricultural sector hasn’t got quick benefit like other
sectors. Moreover, the investment in the sector usually meets natural
calamities, excluding market risks.
Moreover, attraction of FDI in the agricultural sector is
small because the sector still lacks a long-term strategy and orientation in
order to determine the role of the capital for development of the
agricultural sector; specific projects prioritized to attract potential
investors; legal system and mechanism; and policies for foreign investors in
the agricultural field, which are not clear and transparent.
In the condition of scattered agricultural and forestry
production, it is difficult to create a large material region for investors.
Therefore, it is hard to attract FDI in cultivation but it should encourage
investment in process because Vietnam still exports many raw agricultural
products.
Preferential policies on tax, infrastructure have not enough
to lure foreign enterprises to invest in the agricultural sector in Vietnam.
Tax reduction is a good thing but it is not a key factor. When foreign investors
invests in processing, it seems that they ensure conditions of capital,
technique and market. To help manufactory operate well, the enterprises need
to ensure stable material sources.
To provide stable materials, it must have a concentrative and stable
material region to meet the large-scale production with modern technological
application of enterprises. However, foreign investors are not allowed to own
a large material region, therefore, it must solve the benefit harmonization
between enterprises and farmers.
However, Mr. Toan noted that, it is difficult for enterprises
to do it by themselves. It must have the operation of the state by specific
policies, planning. In addition, localities and farmers have to work together
for better cooperation. Thus, it needs a key model with the support from the
state by policies and specific operation manner to lure foreign investors.
Besides the preferential credit policy for investors and
materials areas, local authorities are responsible for protection and maintenance
of the planned material areas for FDI projects, ensuring adequate supply of
materials for them.
More than 30 countries and territories have invested in
Vietnam’s agricultural sector, led by Taiwan. However, many investors are
mainly from Asia but their technology background is not high such as
Thailand, Taiwan, Indonesia. While we have not attracted FDI projects in the
agricultural sector from countries with high technology such as the US,
Japan, the EU. In addition, the quality of FDI projects in the agricultural
sector is not high, mainly small-scale projects. If average investment
capital of a FDI project is about USD14.7 million, a FDI project in the
agricultural sector only reaches USD6.6 million.
On average, the agricultural sector only attracted about 20
projects and USD130 million among 17,072 FDI projects licensed in Vietnam in
2014 with total capital of USD241.6 billion.
Can Tho aims for increasing seafood exports by 24%
Can Tho province is expected to earn US$485 million from
seafood exports this year, a year-on-year increase of 23.4% and accounting
for 33.4% of the province’s total export turnover.
Duong Nghia Hiep, Deputy Director of the provincial Department
of Industry and Trade (DoIT) said this year seafood exports continue to face
certain difficulties. Some countries still impose the highest anti-dumping
tariffs on Vietnam’s shrimps and put up more trade barriers to protect their
domestic production.
To deal with the difficulties, Can Tho has implemented a
series of measures to improve the quality of products, speed up the export of
high-grade seafood, ensure food hygiene and safety and diversify export
products.
It has bought 100,000 tonnes of prawn shrimp, whiteleg shrimp
and tra fish from Ca Mau, Bac Lieu, Soc Trang, Kien Giang, An Giang and Dong
Thap provinces to process for exports. This way helps increase the proportion
of high-grade export products and meet the needs of fastidious markets in
Europe, North America, Oceania and Japan.
According to the DoIT, on the first 10 days of January, the
province exported 4,400 tonnes of seafood, earning US$13.3 million, US$1.7
million higher than the same period last year.
Last year, despite technical barriers and trade disputes with
many foreign partners, the province still shipped 140,000 tonnes of seafood
worth US$420 million, a rise of 9% over a year earlier.
SBV devalues dong to underpin exports, growth
The State Bank of Vietnam (SBV) adjusted the VND/USD exchange
rate up by one percent effective January 7 in a move aimed at buttressing
exports and economic growth by increasing the purchasing power of the US
dollar in the domestic market.
The average interbank exchange rate was adjusted to increase
from VND21,246 to VND21,458 per dollar.
In making the announcement the SBV said the devaluation was
appropriate given the developments in the global and domestic financial
markets, after the exchange rate stayed unchanged for more than six months.
The adjustment is among measures being taken to give effect to
the national plan for socio-economic development and State budget operations
this year, following Government Resolution 01/NQ-CP issued January 3.
Many of the nation’s leading economists have welcomed the
weakened dong as a positive development considering the favourable
macroeconomics, monetary market and banking activities over the past year.
They said that a weaker dong reference rate is the appropriate
policy to maintain exports as the engine driving the Vietnamese recovery.
They also said the move by the SBV is reasonable and in line
with similar movements in other local and international currency markets such
as the Republic of Korea’s Won, Japanese Yen, Philippine Peso and Thai Baht.
The adjustment helps increase the competitiveness for
Vietnamese exports in the global market by making them less expensive, an
economist from HCM City said, adding that on the flip side it will cause a
small increase the cost of imports.
Nguyen Tuan Nam, deputy director of Muoi Day Steel Trading Co,
Ltd. in turn said the cost of its imports has not been affected much.
At a recent banking conference, SBV Governor Nguyen Van Binh
said that exchange rates will rise by two per cent maximum this year.
Tuesday's increase is the first adjustment of the rates in
2015.
Lawmaker emphasises Government’s role as coordinator of
economy
The Government should perform well its role as the coordinator
and executive director of the economy and limit its direct interference as
the owner of businesses to facilitate economic development, Vice Chairman of
the National Assembly’s Economic Committee Nguyen Duc Kien said.
In an interview granted to the Vietnam News Agency, the Vice
Chairman said the Government’s role is very important for the country to
achieve its economic targets this year.
On the part of businesses, he said they should take the
initiative in joining the global value chain in order to expand their market
and produce more products with high added value.
Kien noted that there are favourable conditions for economic
development in 2015 thanks to the promulgation of a series of laws in line
with the 2013 Constitution. In addition, the expected signing of many free
trade agreements during the year also opens up good prospects for market
expansion.
At the same time, the lawmaker explained that the GDP growth
target of 6.2 percent for 2015, higher than the 5.9 percent recorded in 2014,
was set taking into account the expected positive effects of policies issued
in 2014 on removing difficulties for enterprises. In addition, several
national key projects will become operational this year, giving a boost to
the economy.
Looking back on 2014, the NA Economic Committee Vice Director
underlined the fact that it was the first time in several years the country
achieved most socio-economic goals, despite the impacts of regional and
global situation, particularly China’s illegal placement of its oil rig
Haiyan Shiyou 981 inside Vietnam’s exclusive economic zone. He noted that the
country also deal with incidents related to Haiyan Shiyou 981 in a timely and
appropriate manner, maintaining the trust of both domestic and foreign investors.
The lawmaker pointed to the breakthrough made in the
disbursement of public investment and Official Development Assistance (ODA)
capital, while exports achieved a growth rate desired by many regional
countries.
According to Kien, the 5.9 percent GDP growth in 2014 was at
the medium range in ASEAN in terms of overall rate, but the low level in
terms of absolute growth. However, the figure should be considered in the
context that more than 213,000 domestic enterprises reported no turnover and
tax-generated activities during the year, he said, adding that this shows
there is still room for a higher growth rate it the country finds suitable
solutions to help those enterprises rise out of difficulties.
The lawmaker also hailed the improvement of social security in
2014 despite economic difficulties.
Hong Leong Bank opens fourth transaction office
Hong Leong Bank Viet Nam Limited has opened its fourth
transaction office in the Cho Lon of HCM City's District 6.
Le Minh Tam, chief executive officer of Hongleong Bank Viet
Nam, said "the opening of the Cho Lon transaction office is a
significant milestone in our journey here in Viet Nam."
The transaction office will serve the financial needs of the
business community as well as individuals working and living in one of HCM
City's fastest-growing area.
Services provided at the office include banking and financial
services such as deposit, lending, payment as well as cash services.
The other three outlets are transaction points located in HCM
City's District 3, one in Binh Duong Province and a Ha Noi branch in Hoan
Kiem District.
Delivery firms urged to tap e-commerce potential
The rapid development of online shopping websites has
presented both opportunities and challenges for express delivery businesses,
said the Viet Nam E-commerce Association (VECOM).
According to Tran Huu Linh, Head of the Ministry of Industry
and Trade's Department of E-commerce, e-commerce is not a requirement, but a
tool that creates favourable conditions for delivering goods and setting up
logistical capabilities.
Catching up with the trend, several companies in the sector
have strengthened their investment to take advantage of the market.
Express delivery services are experiencing a boom nationwide.
Online shopping has become a vital trend, creating opportunities for both
e-commerce and express delivery enterprises as 35 to 40 per cent of the
country's population uses the internet daily.
It is because of this reason that enterprises in the sector
are considering developing special services for customers using e-commerce.
For example, DHL-VNPT has invested US$10 million to expand its
market and open a 4,900sq m office with modern equipment.
It has 134 transport vehicles and more than 400 staff members
for processing the over 10,000 orders received daily.
Viettel Post, which was ranked third in the sector with a 10
per cent market share, has also tapped into the opportunities by investing 3
to 5 per cent of its turnover in technology, thus maximising delivery time
and cost.
Nguyen Thanh Hung, VECOM's general secretary said 91
businesses were granted licences by the postal service. However, several
enterprises have not implemented the service.
In addition, the poor quality of delivery has not made online
shopping cheaper than traditional purchasing methods. This has become a big
barrier for the e-commerce sector in Viet Nam.
Hung said delivery companies should improve quality and
competitive prices by expanding their scale, enhancing training, as well as
the application of information and technology.
He also suggested closer collaboration among online companies
and delivery firms to meet customers' demand more effectively.
Source :
VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
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Thứ Ba, 13 tháng 1, 2015
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