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BUSINESS IN BRIEF 30/1
The Vietnam Tra Fish Association (VTFA) has voiced its
objection to US anti-dumping tariffs on Vietnamese tra fish.
The association explained that the export price of
The decision of the US Department of Commerce (DOC) to choose
The VTFA asked the DOC, the US International Trade Commission
(ITC) and the US Congress to consider the removal of the anti-dumping duties
on Vietnamese tra and basa fish.
On January 17, the DOC announced the final results of its 10th
administrative review on tra fish fillets imported from
Nearly 7,000 businesses established in January
The General Statistics Office announced on January 28 that in
January 6,867 new businesses were established with a total registered capital
of VND31.7 trillion (US$1.5 billion) — approximately the same number of
newly-established businesses as the same period last year, but with a 27.5%
fall in the registered capital.
The average registered capital per business was VND4.6 billion
(US$216,200), a 20.4% year-on-year decrease, while the newly-established
business created 103,500 jobs, a 7.4% year-on-year fall.
Rises in newly-established businesses were seen in the arts,
recreation and food service (147.6%); education and training (44.9%); real
estate (41.9%); employment services, tourism, equipment and utensil rental,
and other support services (30.8%).
Fewer new businesses were established in such sectors as
health care and social support activities (42.9% fall); power, water and gas
production and distribution (36.9% decrease); mineral extraction (19% fall);
retail, automobile and motorbike repair (14.6% decrease).
As many as 993 businesses completed procedures for dissolution
or termination, a 3.4% year-on-year decrease. Most of them had registered
capital below VND10 billion (US$470,000).
The number of businesses postponing operations was 9,772, a
22.9% increase, in which 3,367 businesses registered to suspend operations
and 6,405 postponed to wait for their business codes be closed or did not
register.
Meanwhile, 2,872 businesses resumed operations.
Experts prompt businesses to improve for deeper integration
Vietnamese businesses especially small and medium enterprises
must continue innovations and improve their competitiveness for deeper
international integration, said experts at a seminar on challenges for
business development in 2015 in
Deputy Head of the Business Development Department under the
Ministry of Planning and Investment Bui Thu Thuy said that despite of playing
an important role in economic growth, employment provision, and State budget
contribution; small and medium enterprises are limited in scale, capital,
technology and management skills leading in competitiveness and operation
effectiveness limitations.
Dr. Vo Thanh Tri, head of the Central Institute for Economic
Management, said that small and medium enterprises in
Inflation rate will be curbed low and monetary policies will
be more flexible this year. However it will be a difficult year for the
business community amid the US dollar depreciation and difficulties in fiscal
policies and bond issue, he forecast.
Dr. Nguyen Thi Thu Trang, director of
However these agreements just concentrate on taxes with
limited trade liberalization. FTA with the EU (EVFTA) or Trans-Pacific
Partnership (TPP) that will be signed this year will cover more fields with
higher liberalization level, and affect not only export and import but also
the market and institutions, she said.
2015 is the last year to remove tariff on most commodities.
Businesses should be clearly aware that how far
VCCI secretary general Pham Thi Thu Hang said that
HCMC to stimulate investment in support industry
Ho Chi Minh City Party Committee Secretary Le Thanh Hai has
instructed the city People’s Committee to quickly build an investment
stimulation program, continue administrative procedure reformation and
support businesses with utmost assistances to develop the poorly developing
support industry.
Mr. Hai made the statement while chairing a seminar hosted by
the HCMC Steering Board for Support Industry Development on Tuesday, where
most delegates said that
Deputy Chairman of HCMC Mechanics Association Do Phuoc Tong
said that support industry products of local mechanical companies have low
and unsteady quality.
The number of mechanics is unstable at companies, graduates
from vocational schools or colleges have to be retrained before they can
start working. However after being trained and having working experiences,
these mechanics usually quit and move to foreign invested enterprises and
labor export companies for higher salary.
Many small mechanical companies do not have a quality
management system or have but do not seriously follow the system’s production
process resulting in discontinuous quality control.
Input materials are mainly imported, most small and medium
enterprises use secondhand machines causing low productivity. Purchasing new
machines requires large capital while many have been unable meet mortgage
requirements for bank loans, said Mr. Tong.
Director General of Saigon Transportation Mechanical
Corporation Tran Quoc Toan added that the output of local support industry
products is low while price is higher than imported items. Businesses lack of
connectivity to develop the support industry.
Sharing the same view director general of Saigon Industrial
Corporation Chu Tien Dung said that the support industry is weak forcing
businesses to import materials for domestic production, resulting in higher
cost prices and low competitiveness.
On the other hand, limited human resource level and
technologies cause domestic products’ quality fail to meet international
standards, he added.
Other experts said that in fact most support industry
businesses have been unable to access Government’s assistance policies. Domestic
loan interest rate is too higher compared to that in nations with developed
support industry, causing locally made products unable to compete with import
goods.
Administrative procedures are complicated discouraging
businesses to broaden investment in the support industry. Hence they just
import materials for local assembly.
Dr. Huynh Thanh Dien proposed HCMC to have policies providing
small and medium enterprises with assistances from capital, technology to
space to develop the support industry.
Principal of the HCMC Open University Nguyen Van Phuc said
that support industry businesses need supports in export and import tariffs,
business income taxes, and loan interest rates. Besides the Government should
offer land incentives to establish and develop support industry zones and
clusters.
In response, HCMC Party Committee Secretary Le Thanh Hai said
that the above opinions will be synthesized in a document to debate at future
congresses of the city Party Committee.
Electricity price hikes to cover losses by state generator
Deputy Minister of Industry and Trade Do Thang Hai told
reporters there were three options on the table for higher power prices
this year, but the final decision would be based on the ability of people to
pay a market-based price balanced against the country's economic growth.
If power prices remain low, EVN may have to file for bankruptcy
as it doesn't have the financial resources to continue selling electricity at
below cost, Hai said.
EVN has reported a group loss of more than VND8.8trn due to
foreign exchange rate fluctuations, noting it had been ordered by the
government to get its balance sheet in order by 2015.
Hai said it was inaccurate to claim a hike in power prices was
designed to help EVN offset its losses, maintaining that power prices were
much lower than its cost of production.
“The foremost purpose of price increase is to build up a
competitive power market upon the government’s policies," Hai said.
“Many people disagree with sharp power price hikes, claiming
that
Hai expected that higher electricity prices would encourage
people to use energy more efficiently.
Several international organisations have urged
Due to low power prices and increasing demand, EVN has had to
import electricity from foreign sources, including
The European Chamber of Commerce in
MoneyGram, DongA Bank to deliver remittances to customers'
door
MoneyGram and its strategic partner Viet Nam DongA Bank
yesterday (Jan 27) launched a new service that will deliver remittances to
the homes of the recipients.
The signing of an agreement on the delivery of remittance
payments at customers' homes.
The director of the DongA Bank Remittance Company, Tran Van
Trung, said his company was the sole partner of MoneyGram offering such
services in
Yogesh Sangle, director of MoneyGram Asia, said the new
service would ensure safe and convenient receipt of remittances.
The DongA Bank Remittance company has 250 employees to provide
the service nationwide. Customers in urban areas will receive the money
within six to 12 hours, and up to 24 hours in other areas.
TISCO to get $63.2 million to expand production
The Vietnam Development Bank's Bac Kan–Thai Nguyen branch
intends to loan VND1,359 billion (US$63.2 million) to the Thai Nguyen Iron
and Steel Joint Stock Corporation (TISCO) to expand production.
The capital from the loan will be invested in the second phase
of TISCO's production expansion project, business news website baodautu.vn
reported on January 27.
The project, which was commenced in September 2007, required
an estimated initial investment of VND3,843 billion ($178.7 million). However
its total investment has more than doubled to VND8,104 ($377 million) and the
construction has been delayed since the first quarter of 2013 due to paucity
of capital.Earlier in September 2014, the Prime Minister allowed the State
Capital Investment Corporation (SCIC) to contribute VND1 trillion (US$47.6
million) to TISCO's project.
In December 2014, TISCO successfully organized a shareholders
meeting to boost its charter capital and issue shares for SCIC.
TISCO has been operational for half a century and its annual
revenue has touched of VND8,000 billion ($372 million).
State Bank calls for lending interest rates to be lowered
The State Bank of Viet Nam (SBV) on Tuesday announced its
monetary policy execution for this year.
According to the announcement, the SBV has instructed credit
institutions to continuously cut the annual interest rate for medium and
long-term loans by one to 1.5 percentage points to help businesses.
Under Directive 01/CT-NHNN, SBV Governor Nguyen Van Binh
directed credit institutions to implement monetary policies to help
businesses, co-operatives and households in getting access to credit in a
move to aid the development of production and business.
The governor also directed credit institutions to give credit
priority to agriculture and rural development, exports, supporting industries
and small and medium-sized enterprises, as well as high-tech application
firms.
Under the directive, the central bank also announced that it
will execute the monetary policy actively and flexibly, and in accordance
with the fiscal policy this year.
The total balance of payments is planned to increase roughly
by 16 to 18 per cent this year, while the credit growth will fluctuate
between 13 to 15 per cent. The foreign currency and gold markets will be kept
stable with the devaluation of the Vietnamese dong against the US dollar by
less than two per cent.
SBV instructed its branches nationwide to implement the above
policies well, in a move to meet the government's target of controlling
inflation at below five per cent, stabilising the macro-economy and
supporting economic growth at 6.2 per cent. The results of the implementation
have to be reported to SBV on a monthly and quarterly basis.
On the same day, the central bank issued another directive on
improved handling of NPLs of credit institutions and for reduction of
non-performing loans (NPLs) of the whole banking industry to below three per
cent by the end of the year.
Under Directive 02/CT-NHNN, the governor asked credit
institutions to handle at least 60 per cent of their NPLs according to their
approved plans before June 30, 2015, besides selling 75 per cent of the NPLs
for the Viet Nam Asset Management Company (VAMC).
The central bank directed VAMC to closely work with credit
institutions in handling NPLs, besides creating favourable conditions for
domestic and foreign investors to buy NPLs.
The central bank will also streamline the legal framework
related to the handling of NPLs, and plan a project on handling of NPLs based
on market mechanisms, to be submitted to the Prime Minister for
implementation this year. This is a move to help VAMC in selling NPLs. The
bank will also scrutinise the risk provision regulations to help credit
institutions that face difficulties in the restructuring process.
Besides enhancing credit quality and strengthening the
handling of NPLs, the central bank also directed credit institutions to obey
the regulations on debt restructuring and risk provision funding to ensure
safety.
NEC
NEC Vietnam, a leading infocommunications technology provider,
today announced the launch of its latest retail point-of-sale (POS) terminal
TWINPOS G5 52V1.
The new TWINPOS G5 52V1 has a 15-inch touchscreen and weighs
seven kilogrammes. It’s easy-to-clean, with hard-disk and components easily
accessible for repairs and replacements, which will help reduce time and
costs in maintenance and servicing. The robust system design provides
environmental durability that can support the needs of multiple retail
environments.
The systems will be distributed nationwide by appointed
distributors Dinh Thien Co., Ltd (APEX), Digiland Co. ltd. (Digiland) and
iPOS VN JSC (iPOS) to small and medium sized businesses in the food and
beverage, convenience store, retail chain store and specialty shop sectors.
New retail systems will come with a three year warranty, with full support
service provided nationwide.
“Our leading technology retail solutions will help the rapidly
growing retail businesses here enhance their services to customers. The high
performance G5 52V1 will enable retailers to better manage their sales, to
help them focus on their core business,” said Keita Ito, general director of
NEC Vietnam.
For the past 40 years, NEC has implemented retail
point-of-sales solutions for convenience stores and retail chain stores
within Asia Pacific, with leading retailers 7-11 and Alfamart as some of
their customers. As part of its commitment to growing the retail business in
Central
Highlands examines how to attract more foreign investment
The
According to the Foreign Investment Agency under the Ministry
of Planning and Investment, as of the end of last year, 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 US$819
million.
Of these provinces, Lam Dong led with 122 projects capitalised
at approximately $500 million and accounting for 82 per cent of the region's
total foreign-invested projects and 61 per cent of total registered FDI, the
agency noted.
Dak Lak ranked second with six projects, valued at $150
million, while Gia Lai placed third with 11 projects valued at $80 million.
The two remaining provinces of Kon Tum and Dak Nong had 9 projects with a
combined capital of $89.6 million.
Of note,
During the reviewed period, the agro-forestry-fisheries sector
absorbed the largest share of FDI with $350 million, accounting for 42 per
cent of the region's total FDI, following by processing and manufacturing
industries with $198 million, or 24 per cent 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.
Vinamilk announces export plan
The Viet Nam Dairy Products Joint-Stock Co (Vinamilk) will
focus on exploiting Middle East, Africa,
The purchase of a 70 per cent stake of the US Driftwood dairy
factory has brought the company good business results, with revenue of more
than VND2.6 trillion (US$123.8 million) last year.
The company's total revenue reached nearly VND36 trillion
($1.7 billion), an increase of nearly 14 per cent compared to 2013.
Last year, Vinamilk produced and launched 5 billion dairy
products of all kinds into the market to serve domestic consumers.
According to market research company Nielsen, Vinamilk takes
the lead in sales and revenue in the group of fresh milk brands in
To reach the revenue target of $3 billion and be included on
the list of the world's top 50 biggest dairy firms by 2017, the company will
also develop key export markets such as
Last year, the company broke ground for factory construction
in
This year, when the factory is put into operation, revenue for
the first year is expected to reach $35 million.
The company has also invested $3 billion in a company in
In addition, the company has bought a 19.3 per cent of stake
of
Domestic industrial production makes a good start to the year
The national index of industrial production (IIP) grew
significantly by 17.5 per cent in January, up from the same period last year,
according to the General Statistics Office (GSO).
The processing and manufacturing sector, which account for
more than 70 per cent of total industrial output, saw a year-on-year growth
of 19.4 per cent, while production and distribution in the electricity sector
jumped by 20.9 per cent. Production in the water supply, sewage and waste
management sector grew by 9.5 per cent.
Some industrial products recorded high IIP increases during
the month, included handsets (up 91.1 per cent); televisions (88.7 per cent);
steel (35.7 per cent); animal feed (29 per cent) and cement (27.1 per cent).
Encouraging growth was also reported for other products such
as fresh milk (21.9 per cent); footwear (19.8 per cent) and fertilisers (18.5
per cent).
Several products, however, reported industrial production
drops, such as powdered milk, down 18 per cent, liquid petroleum gas (10.9
per cent) and sugar (4.7 per cent).
As of January, the inventory levels in the processing and
manufacturing were up 9.6 per cent, a little lower than the figure we saw at
the same time last year, GSO noted.
Major industries reflected higher levels of inventory,
included paper production (100 per cent); means of transport (74.4 per cent);
beverages (59.5 per cent), electronics, computer production (37.8 per cent)
and metal manufacturing (32.4 per cent).
Vu Quang Ha, a statistician at GSO said top priority should be
given to accelerating consumption to further reduce inventory this year. Last
year, the processing and manufacturing reported an average inventory index of
73.8 per cent.
Customs dep't offers preferential treatment
Customs and storage agencies will be allowed to give
preference to qualified businesses in a move to encourage the businesses,
according to a newly-issued Government decree.
As per Decree 08/2015/ND-CP, which was released this week,
goods from qualified businesses will be checked, delivered or handled earlier
than others.
In case the goods require special checking rights at the
border, the qualified businesses will be allowed to transport the goods to
their storage while waiting for customs inspection results.
To qualify for these priorities, the businesses must not have
violated legal regulations related to taxation and customs in the past and
since their application for the preferential treatment.
Besides obeying legal regulations on accounting and auditing,
they will also be required to apply management and supervision standards to
their entire import and export supply lines.
According to the new decree, exporters of made-in-Viet
As for agricultural and fishery exporters, the export value
will be capped at $30 million per year. Those with an annual export and
import revenue of $100 million will also benefit from the regulation,
according to the decree.
Experts said the recognition of programmes will raise the
reputation and prestige of companies among customers, partners and State
management agencies.
Watchdog calls for dual-language reports
A market watchdog plans to direct public companies to disclose
their information in both Vietnamese and English in a move to boost the
Vietnamese securities market to the global level.
However, this will prove to be a big challenge for most
companies at present.
Speaking at a workshop about the improvement of the legal
framework for information disclosure on the stock market on Monday in HCM
City, Nguyen Son, director of the State Securities Commission's Market
Development Department, said disclosing information in English is a necessary
step for upgrading the Vietnamese market from the frontier to emerging
markets, and will also help attract more foreign investment.
The new draft, which is expected to replace an earlier circular
guiding the disclosure of information on the securities market, will require
large public companies, listed businesses, stock exchange authorities and the
Viet Nam Securities Depository to deliver information in English.
Listed companies with a charter capital of VND500 billion
(US$23.4 million) or more, or which has a foreign ownership of at least 20
per cent over a period of one year, will have to disclose information in both
Vietnamese and English.
41 Vietnamese firms join billion dollar club
As many as 41 local enterprises joined the Billion US Dollar
Club for recording annual revenues of over US$1 billion. They were listed
among the country's 500 largest enterprises (VNR500) in 2014.
According to the VNR500 2014, released by the Viet Nam Report
Joint Stock Company (Viet Nam Report) on Tuesday, Viet Nam National Gas and
Oil Group (PetroVietnam) secured the top spot.
PetroVietnam earned VND745.5 trillion (US$34.8 billion) in
revenue in 2014. This is its seventh consecutive year in the top position.
Other big names included Samsung Electronics Viet Nam, VietNam
National Petroleum Group (Petrolimex), Electricity of Viet Nam (EVN) and
Viettel Group. The VNR500 rating is internationally standardised by Viet Nam
Report, aiming to honour Vietnamese enterprises' achievements each financial
year.
Wood exports off to a slow start for 2015
According to the Ministry of Agriculture & Rural
Development, Nguyen Ton Quyen, General secretary of the Vietnam Timber and
Forest Products Association recently revealed the association forecasted the
sector’s annual export volume for 2015 at US$7 billion.
Meanwhile, the sector’s imports for January were up 8.6% to
US$170 million on-year, suggesting the sector has been stockpiling raw
material and supply inventories in anticipation of finalizing many major
contracts.
Gold jewellery exports glitter in 2014
Exports were helped by a relaxation of import policy and
recovering demand from major consuming countries, particularly the
The
Vietnam seeks way to boost exports to US
A workshop on pushing exports to the
At the event, Dao Tran Nhan, Trade Minister Counselor and
Vietnam Trade Office Chief Representative in the
Nhan urged Vietnamese exporters to ensure that the product
quality meets international standards.
According to the General Statistics Office (GSO), in 2014
The
Korean ginseng festival opens in Ho Chi Minh City
A Korean ginseng festival is set to open at Crescent Mall,
Vincom Centre in
The event, co-organised by Geumsan prefecture and Korean
ginseng company, is a golden opportunity for Vietnamese customers to taste
free food from Ginseng and benefit from incentives and attractive discounts
up to 30%.
Visitors will also have a chance to enjoy a wide range of art
performances, attend interesting games, and meet with Korean and Vietnamese
singers at the festival.
In the framework of the event, a seminar on Korean Geumsan
ginseng will be held at New World Hotel, district 1, on January 30.
Ride economic recovery to market success, SMEs urged
Small and medium–sized enterprises (SMEs) have been urged to
improve their competitiveness amid rapid global integration, to grab
opportunities as signs of economic recovery are already emerging in 2015.
Bui Thu Thuy, deputy director of the Agency for Enterprise
Development under the planning and investment ministry, said at a conference
held by the Viet Nam Chamber of Commerce and Industry yesterday that SMEs
would continue to struggle this year, despite their large contribution of 50%
of the GDP.
Thuy pointed out that SMEs were encountering problems of
credit difficulties, small capital scales, outdated technologies and weak
management capacity, despite their large contribution to the economy in the
2009-12 period.
She said that most domestic firms were of small scale, while
pointing out that medium-sized enterprises in the private sector account for
just 1.6%. In addition, SMEs failed to keep pace with technological
innovations, while the government's support remained limited.
She added that enterprises should also improve technologies
and boost technology transfer to enhance quality, productivity and
competitiveness, coupled with the government's support to encourage SMEs to
participate in the supply chain.
The restructuring of the financial market, simplification of
procedures and provision of preferential loans were also important measures
to improve businesses' access to capital, Thuy said.
Vo Tri Thanh, deputy director of the Central Institute of
Economic Management, said at the conference that the contribution of SMEs to
the GDP of Viet Nam was lower than in several countries, while the advantages
of participating in the global value chain remained limited due to
low-quality technology and management capacity.
Thanh added that inflation was expected to be low this year,
but difficulties remained and competition would intensify, especially with
the formation of the Asean Economic Community, which would bring
opportunities. However, in the long term, it would be critical for businesses
to enhance their renovation capacity and competitiveness to seek higher added
value.
At the conference, Nguyen Thi Thu Trang, director of the
VCCI's WTO Centre, said that 2015 would be a year of preparation for new
policies and a new stage of integration, with the negotiations for the
new-generation free trade agreements (FTAs) to be concluded and signed.
Enterprises must understand clearly the opportunities as well
as challenges arising from these FTAs in order to outline their strategies,
Trang said.
Ride economic recovery to market success, SMEs urged
Small and medium–sized enterprises (SMEs) have been urged to
improve their competitiveness amid rapid global integration, to grab
opportunities as signs of economic recovery are already emerging in 2015.
Bui Thu Thuy, Deputy Director of the Agency for Enterprise
Development under the Ministry of Planning and Investment, said at a
conference held by the Vietnam Chamber of Commerce and Industry in
Thuy pointed out that SMEs are encountering problems of credit
difficulties, small capital scales, outdated technologies and weak management
capacity, despite their large contribution to the economy in the 2009-12
period.
She said that most domestic firms were of small scale, while
pointing out that medium-sized enterprises in the private sector account for
just 1.6 percent. In addition, SMEs failed to keep pace with technological
innovations, while the government's support remained limited.
She added that enterprises should also improve technologies
and boost technology transfer to enhance quality, productivity and
competitiveness, coupled with the government's support to encourage SMEs to
participate in the supply chain.
The restructuring of the financial market, simplification of
procedures and provision of preferential loans are also important measures to
improve businesses' access to capital, Thuy said.
Vo Tri Thanh, Deputy Director of the Central Institute of
Economic Management, said that SMEs’ contribution to GDP of Vietnam was lower
than in several countries, while the advantages of participating in the
global value chain remained limited due to low-quality technology and
management capacity.
Thanh added that inflation is expected to be low this year,
but difficulties remained and competition will intensify, especially with the
formation of the ASEAN Economic Community, which will bring opportunities.
However, in the long term, it will be critical for businesses to enhance
their renovation capacity and competitiveness to seek higher added value.
At the conference, Nguyen Thi Thu Trang, Director of the
VCCI's WTO Centre, said that 2015 will be a year of preparation for new
policies and a new stage of integration, with the negotiations for the
new-generation free trade agreements (FTAs) to be concluded and signed.
Enterprises must understand clearly the opportunities as well
as challenges arising from these FTAs in order to outline their strategies,
Trang said.-
Workshop updates information on ASEAN Economic Community
A workshop was held in
The event aims to help participants, especially businesses, to
understand better about the opportunities and challenges posed by the
country’s integration process so that they can build effective strategies for
economic integration in the coming time, said the head of the Ho Chi Minh
City Office of the Party Central Committee’s Commission for Popularisation
and Education, Dao Van Lung.
Participants agreed on the need to promote communication work
to enhance awareness of the AEC, proposing that central agencies coordinate
with local authorities in this work.
A recent survey conducted by the Ministry of Planning and
Investment revealed that 76 percent of domestic firms had no knowledge about
the AEC, 94 percent did not understand the content of AEC-related
negotiations, while 63 percent were unaware of the opportunities and
challenges involved in the AEC participation.
When the economic community is formed, there will be a free
flow of human resources among member countries, which might put
The AEC is expected to be formed by the end of this year.
ASEAN has 10 member countries, namely
Solutions for support industry development proposed
Solutions and recommendations for developing the support
industry in Ho Chi Minh City have been put forward at a conference titled
“Developing the support industry in association with small- and medium-sized
enterprises in HCM City” held in the southern economic hub on January 27.
The conference was organised to provide a forum for experts
and managers to discuss the role of small- and medium-sized enterprises
(SMEs), including how to utilise them as driving forces of the support
industry and increase their contributions to the city’s industry and the
nation’s economy.
At the forum, experts and enterprise representatives listed a
slew of recommendations and solutions to breathe new life into the sluggish
support industry.
Among their recommendations are new tax policies such as
reducing, applying a 10 percent income tax for the first 15 years, and
offering tax breaks for materials used in processing export products and
products replacing import products.
Assisting enterprises with cleared land, offering tax
exemptions for enterprises who build apartment buildings and workshops in the
early years, and devising policies to update the knowledge and expertise of
managers and skilled employees were also put forth at the forum.
Participants also pointed out that enterprises often face
difficulties gaining access to support policies due to procedural barriers.
According to Tat Thanh Cang, Vice Chairman of Ho Chi Minh
City’s People’s Committee, SMEs account for 95 percent of all enterprises and
42 percent of the work force in the city’s industrial sector.
SMEs, however, are producing only 21 percent of the total
revenue, 6.8 percent of total profits and contributing just 9.8 percent of
the City budget. The ratio of profits to the total asset is just 1.8 percent,
compared with 6.9 percent for the entire industry.
Addressing the forum, Le Thanh Hai, Secretary of the Ho Chi
Minh City Party Committee, said four key industrial sectors – electronics,
mechanics, pharmaceutical chemistry, and food processing – account for 65
percent of the whole industry, reflecting a growth both in quality and scale.
The growth, however, is still below expectations partly due to
the sluggish support industry, unable to take part in the production chain at
home, Hai said.
According to Hai, in upcoming years, the city must examine and
revise loan programmes for SMEs who are unable to provide adequate collateral
but demonstrate feasible investment projects.
Besides streamlining administrative procedures to help facilitate
enterprise access to preferential policies, breakthrough solutions are needed
to address obstacles for around 118,000 SMEs, Hai added.
RoK firms wish to pour money into Tay Ninh IPs
A delegation of 12 garment-textile businesses from the
The businesses were briefed on investment opportunities,
incentives and regulations at the Thanh Thanh Cong and Phuoc Dong-Boi Loi
industrial parks in Trang Bang and Go Dau districts, respectively.
Located nearly 67 km from Saigon and Cat Lai ports and 44km
from
It has also built a system supplying 37,000 cu.m of clean
water and another treating 22,000 cu.m of sewage per day.
Meanwhile, the Phuoc Dong – Boi Loi park has so far drew a
total of 17 investment projects worth 1.5 billion USD, including 15 run by
foreign firms. A system being able to treat 5,000 cu.m of sewage per day has
also been built here.
Speaking at the working session, Chief executive officer of
the Kofoti garment-textile company Kim Nam Young revealed that 620 Korean
businesses are investing in
In the coming time, RoK apparel enterprises will increase
investment in the Southeast Asian country, which boasts abundant and skilled
workforce, he said.
Vice Chairman of the provincial People’s Committee Huynh Van
Quang welcomed RoK businesses to invest in Tay Ninh province, particularly in
the garment-textile sector.-
Quang Binh accelerates thermal plant project
The authorities of central Quang Binh province and the
management board of the Vung Ang-Quang Trach Power Project are implementing a
range of measures to speed up the construction of the Quang Trach 1 thermal
power plant to ensure it is operational by 2020.
The province will focus on compensation and site clearance to
hand over the property to the project management board before the third
quarter of 2015, while building electricity and transportation systems to
facilitate the construction of the plant.
It also pledged to create favourable conditions for the
investor to carry out the project in a timely manner.
Meanwhile, the project management board will work to complete
legal procedures dictating the selection of a contractor and consultant group
so that construction can commence in June 2016.
The 34 trillion VND (1.59 billion USD) Quang Trach 1 thermal
power plant, invested by Vietnam National Oil and Gas Group, was launched in
Vinh Son hamlet, Quang Dong commune, Quang Trach district in September 2011.
The 1,200 MW plant was scheduled to be completed within four
years but its progress has been delayed due to unforeseen economic recession.
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.
Source: VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
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Thứ Năm, 29 tháng 1, 2015
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