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BUSINESS IN BRIEF 31/1
Mercedes-Benz to invest $20m in
The company plans to introduce 20 new cars to celebrate its
20th anniversary in
On Wednesday it unveiled four new cars: GLA 250 4Matic, CLS
500 4Matic, Mercedes-AMG GT S, and Mercedes-Maybach S600. The Maybach will cost
nearly VND9.7 billion (US$461,000).
The company has brought 47 models to the Vietnamese market in
2013-15.
"To satisfy the sophisticated and diverse demand of
customers, we are introducing ever more top-of the-segment products,"
Dirk Adelmann, sales and marketing director of
In 2014 the company achieved a record year in
Its market share in the luxury segment increased from 52 per
cent to 54 per cent.
SeABank offers soft loans
Vietnamese SeaBank will offer VND10 trillion (US$470 million)
in preferential loans to businesses in
Under the programme, interest rates of 6.5 to 6.9 per cent per
year will be offered.
SeaBank will also generate incentives for businesses to expand
production and business.
HCM City to host rubber, tyre expo
The third international rubber and tyre industry exhibition,
to be held in
To be held at the Saigon Exhibition and Convention Centre in
District 7 from June 10 to 12, Rubber and Tyre Vietnam 2015 will showcase the
industry's latest equipment, technologies, products and services. The
three-day expo will also include conferences and seminars. The fair will also
help connect Vietnamese tyre and rubber producers with foreign buyers.
VN Expo to be held in April
The 25th Viet Nam International Trade Fair – Viet Nam Expo
2015-will be held in Ha Noi's Viet Nam Exhibition Fair Centre (VEFAC) from
April 15 to 18.
Nineteen countries and territories will take part -
Five hundred trade booths from about 450 enterprises have
already registered for the event. Vietnamese firms taking part will be mainly
exporters of agricultural foods and drinks, or production and distribution
firms.
The expo is expected to have 700 trade booths aimed at a hoped
for 20,000 visitors.
S Korean firms favour Viet Nam
About 49 per cent of 537 Korean firms said they had plans to
develop their business in
Indonesian, Thai and Malaysian firms showed interest in
descending order (37.4 per cent, 30 per cent, 28.5 per cent). Turkish firms
showed 20.7 per cent interest.
The firms surveyed were asked to select from 32 countries
showing annual growth of more than 3 per cent in the past three years.
More than 53 per cent of South Korean companies polled said
they were aiming for the local consumer market in the target countries.
Another 24.8 per cent said they would use the countries as a production base,
and 22.2 per cent said the expansion was to utilise the merits of existing
free trade agreements, according to the survey.
Standard Chartered ups GDP forecast
Standard Chartered Bank expects
The increase is expected to be driven by the success of
structural reforms, which are delivering tangible economic benefits.
The bank made the announcement in a news release on Wednesday,
adding that the forecast was highlighted in its recently published global
research report entitled "The Year Ahead: Rekindling Animal
Spirits".
The report revealed that
The report also pointed out that multinational companies have
expressed a keen interest in increasing investment in the country, thanks to
the country's geographic advantages, low labour costs and operational costs,
and increasing participation in regional trade pacts.
"We think
"We also expect some progress to be made on structural
reforms in 2015, the last year of the country's five-year socio-economic
development plan. This should improve domestic sentiment," he added.
Nirukt Sapru, CEO of Standard Chartered Bank
"The government took important measures in 2014 to
improve business conditions, which are expected to bear fruit from
2015."
According to the global research,
The research also highlighted that the country's fiscal policy
is likely to be accommodative as the authorities' focus remains promotion of
growth, and further progress on reforms is expected.
Rice traders to expand sources
Rice exporters must build new areas for sourcing raw material
in direct proportion to their export volumes, the Ministry of Industry and
Trade said in a decree issued last week.
The decree talks about a roadmap for the development of areas
from where raw material can be sourced, as well links rice production and
consumption between farmers and traders for the 2015 to 2020 period, which is
aimed at restructuring the farming sector, enhancing rice quality and raising
rice exporters' competitiveness.
Accordingly, rice exporters can develop their raw material
sources in three ways, including building large-scale paddy fields, signing
contracts with farmers or developing their own raw material areas.
Rice traders with an export volume of below 50,000 tonnes per
year must develop a minimum raw material area of 500ha during the first year
and widen this area by 300ha each in the following years.
For those with an export volume of 50,000 to 100,000 tonnes
per year and 100,000 to 200,000 tonnes per year, the minimum raw material
areas needed during the first year will be 800ha, 1,200ha and 2,000ha,
respectively.
The Ministry of Industry and Trade is aiming to encourage
traders to develop stable raw material sources for major crops harvested
during the year.
Support and incentives, such as agricultural insurance
premiums, preferential loans will be provided to rice traders, who
participate in developing new raw material sources.
The regulation will come into effect from March 1, 2015.
TPBank, Vietjet agree US$400m credit deal
The Tien Phong Bank and Vietjet signed a credit agreement
yesterday in Ha Noi for buying an airbus to serve
The financial agreement follows the success of an earlier
contract between the two to purchase two Airbus A320s, which were part of a
larger order to acquire 100 aircraft and was signed between VietJet and
Airbus in 2013.
The aviation industry has been a niche market for domestic
credit institutions and is mostly controlled by foreign institutions. The
participation of local banks in the industry reflects their improved
financial ability.
Speaking at the signing ceremony, Nguyen Hung, TPBank's
general director, said the bank and Vietjet will tap each other's strengths
for further development.
‘This can also help Vietjet develop its aircraft to meet
growing demand from the aviation transport market and provide customers with
better access to its services", Hung added.
Luu Duc Khanh, Vietjet's managing director, said TPBank has
been a dynamic and stable institution that has reported impressive
operational results. The bank has been a pioneer in joining new and potential
sectors, such as aviation and high technology.
Last year, the bank had achieved breakthroughs as its total
assets surpassed VND50 trillion ($2.3 billion), and it reported a credit
growth rate of over 50 per cent. Its profit was 22 per cent higher than the
set target, while its debt rate was only 1 per cent.
Vietjet has seen strong development and has brought new
development trends to
It operates 20 Airbus A320s and will add nine to ten aircrafts
each year going forward. It has 150 flights that fly on 28 domestic and
international routes.
By the end of this month, it will also welcome its 10
millionth passenger.
January business shutdowns up 23%
Nearly 11,000 businesses were dissolved or suspended their
operations in January, reflecting a 23 per cent increase from a year ago,
according to the General Statistics Office.
Of these, the number of dissolved firms, which were mostly
small-and medium-sized enterprises (SMEs) was 993, with a registered capital
of less than VND10 billion (US$470,000), while more than 9,700 companies
suspended operations.
However, the official figures revealed that over 2,800
businesses had resumed operations.
Around 6,900 enterprises were newly established, with a total
registered capital of VND31.7 trillion ($1.48 billion), representing 27 per
cent drop from last year.
Accordingly, the average registered capital was pegged at
VND4.6 billion for each company, down 20 per cent in comparison with the same
period last year.
In addition, the number of labourers for newly-established
companies slipped by 7.4 per cent from the corresponding period last year.
Notably, some sectors saw a growth in the number of new firms,
such as entertainment with 147 per cent, education and training at 45 per
cent and real-estate trading at 42 per cent.
The sectors of healthcare, electricity, gas and water
distribution, as well as mineral exploration, wholesale, retail, and
automobile repairs, saw fewer new companies being opened.
GSO said the number of labourers in localities with a big
industrial scale, including Thai Nguyen, Hai Duong, Binh Duong, Dong Nai, as
well as Quang
Purchasing power leaps before Tet
The total retail sales and service revenue earned in the
country in January this year was more than VND275.4 trillion (US$13 billion),
data from the General Statistics Office (GSO) revealed.
The figure represents a 13 per cent year-on-year rise, GSO
said, adding that the increase will be 11.9 per cent if price hikes are
excluded.
GSO statistician Vu Manh Ha said that January recorded the
highest total retail sales growth (inflation excluded) over the past five
years. He saidretail sales saw yearly increases of 8.9 per cent in January
2011; 4 per cent in January 2012; 1 per cent in January 2013; and 7.2 per
cent in 2014.
Ha attributed the significant rise in 2015 to surging consumer
demand for the forthcoming Tet holiday, as well as the country's low consumer
price index and sharp decline in the global petroleum price, which has curbed
price hikes of essential goods. That has encouraged local consumers to buy
more. During the month, the trade sector, which accounts for 77 per cent of
total revenue, surged 13.6 per cent year-on-year. Several products posted
increases in trade, including garments ( 6.2 per cent) and home appliances
(5.7 per cent). Meanwhile, the hotel-restaurant sector, which comprises 11.3
per cent of the total revenue, was up 2.9 per cent month-on-month and 5.2 per
cent year-on-year. However, tourism and other services had a yearly sales
revenue fall of 1.8 per cent and 4.2 per cent respectively in January.
The GSO reported that the country's total value of retail
sales of goods and services in 2014 increased approximately by 10.6 per cent,
when compared to last year.
Experts revealed that last year's increase in purchasing power
was below expectations as the rate was just half the value attained in 2010.
They explained that while supply exceeded demand, incomes did not improve
much.
Deputy PM champions cars
The auto industry will only develop further in the future if
it has specific policies governing it, the Deputy Prime Minister Hoang Trung
Hai said at a meeting on Wednesday.
At the meeting, which was held between the Government with the
ministries of Industry and Trade, and Finance, the two ministries put forth
some proposals for implementing a development strategy for
These include initial proposals for import tax rates to
complete a build-up unit for auto and auto components, from now until 2018.
Another proposal suggested the levying of a special consumption tax on all
kinds of autos with directions for opening the local market for some lines of
automobiles and encouraging their use, reported chinhphu.vn.
Representatives from the ministries also laid down proposals
on policies for corporate tax, fee and intensive policies for projects
producing auto lines that get priority in development.
At present,
The industry should also have a clear action plan so that
investors recognise stability in the state's policies and are spurred to
invest in production and business, Hai said.
He also said the ministries, especially the ministries of
Industry and Trade, and Finance, must cooperate closely and reflect unity in
accepting proposals and drafts on tax policies to ensure stability for the
long term, which is suitable with its integration commitments.
The ministries should consider carefully the effects of these
policies on other issues, including budget and the ability of transport infrastructure
meeting development of the auto industry, the Deputy PM pointed out.
In July 2014, the Government had approved a new development
strategy for the auto industry to enable it to meet domestic demand and join
world production. Vehicles defined in the strategy included trucks, cars with
more than 10 seats, cars with up to nine seats, and specialised vans.
Small and multifunctional vans for agricultural use and those
serving customers in rural and mountainous areas will also be encouraged.
The support industry for the sector will use advanced
technologies and enter partnerships with leading global manufacturers to
become eligible to supply spare parts for global vehicles.
By 2020, the auto support industry is expected to be able to
meet about 35 per cent of the demand for domestic spare parts and
accessories. It should also be able to satisfy more than 65 per cent of local
needs between 2026 and 2035.
ANZ-Roy Morgan Vietnam Consumer Confidence has dropped to 135.4
points in January, 0.2 below last month’s figure.
The index is calculated on the basis of five sub-indices,
including the financial context compared to a year ago, predicted financial
context next year, expected economic conditions next year, expected economic
conditions over the next five years, and the best time to buy major household
items.
In terms of personal finances, 33 percent (a 1 percent drop)
of Vietnamese consumers said their families are “better off” financially than
a year ago compared to 21 percent (also a 1 percent drop) who said their
families are “worse off” financially.
Glenn Maguire, ANZ Chief Economist for South Asia, ASEAN &
Pacific said after a year of uncertainty, Vietnamese consumers have commenced
2015 with slightly higher confidence in the average index of 2014, despite
plummeting crude oil prices.
Power grid development in HN,
The PM has approved the financial mechanism of the Ha Noi and
Ho Chi Minh City Power Grid Development Sector Project, which is sponsored by
the Asian Development Bank (ADB) and the ASEAN Infrastructure Fund (AIF).
The project is financed through a 20-year loan worth of
US$272.7 million with a grace period till March 15, 2020.
The Ha Noi Power Corporation and Ho Chi Minh City Power
Corporation will be responsible for balancing and arranging 100% of the
corresponding capital for the project.
The project, launched from 2014-2020 in Ha Noi and Ho Chi Minh
City, will develop and upgrade substations, expand 110 kilovolt and 220
kilovolt transmission lines, and increase transformer capacity to ensure a
smoother and more reliable supply and reduce outages caused by overloading.
Woodwork exports down in January
Timber and woodwork export revenue this month decreased by 8.2
percent from January 2014 to only 494 million USD, according to the Ministry
of Agriculture, and Rural Development.
The three biggest importers of the country’s wood products –
the
Meanwhile,
Lao timber comprised 26.9 percent of the total imports, with
the
Construction sector restructured to optimise efficiency
The Prime Minister recently approved a blueprint for the
restructuring of the construction sector to maximise its efficiency and
competitiveness before 2020.
The scheme seeks to raise the construction sector’s capacity
to satisfy socio-economic development demand and serve national
industrialisation and modernisation. It aims to augment the average annual
growth of the sector’s production value by 9-14 percent.
Between now and 2020, the sector must eradicate the scatter,
loss, waste and corruption in its investment, especially in projects funded
through the State budget. It is required to gradually raise the proportion of
non-budget capital in projects, and increase the application of the
public-private partnership (PPP) investment model.
The newly approved blueprint aims to raise the development of
cities to match the modernity and competitiveness of those in neighbouring
countries. Some cities will have specified functions, such as specialising in
heritage, tourism or scientific activities. The urbanisation rate is expected
to reach 40 percent by 2020.
Per capita housing area is set to stand at 25 square metres
nationwide by 2020. About 12.5 million square metres of social housing will
be built in urban areas between 2016 and 2020.
The plan also defined the directions for restructuring the
sector’s major industries and products, including social housing development,
the real estate market and construction materials production.
The Government will introduce policies encouraging all
economic sectors to invest in social housing and allowing Vietnamese
expatriates and foreign individuals and organisations greater operation scope
in the real estate market.
The construction sector is also set to accelerate the
privatisation of State-owned enterprises and apply modern administration
methods to facilitate company operation under the market mechanism.
Dong Nai businesses look for opportunities in
Over 150 manufacturing and export businesses attended a
conference evaluating trade and investment opportunities in the
Dao Tran Nhan, Vietnamese Minister-Counsellor for Trade in the
Notably, four Vietnamese fruits—rambutan, dragon fruit, longan
and litchi—have been allowed to be imported directly to the
According to Director of Sourcing Services of Target Group in
Vietnam Giovanni Rojas, there are vast possibilities for cooperation between
Vietnamese suppliers and his company. The group is currently importing
Vietnamese apparel products and seeking to widen its collaboration with
Vietnamese partners.
Many
According to data from the General Statistics Office (GSO),
Belgian enterprise invests in Vietnam
The Belgian firm Molenbergnatie inaugurated its branch at the
The company has invested 21 million USD in the 12-hectare
establishment in
According to Molenbergnatie
Tran Thanh Liem, Vice Chairman of the provincial People’s
Committee said Molenbergnatie’s operations are in line with the province’s
priority in foreign investment attraction.
Founded in 1867, Molenbergnatie has become the world’s leading
supply chain manager for coffee, cocoa, tea and nuts.
Deputy PM urges accelerating fishery development policy
Deputy Prime Minister Nguyen Van Ninh urged ministries,
sectors and localities to continue working towards fishery development
targets and speed up implementation of relevant policies.
Speaking at a meeting with stakeholders on their enforcement
of the Government’s Decree No. 67 on fishery development strategies in
The Deputy PM also called for the ministries and sectors’
collaboration in seeking alternative financial sources and improving
fishermen’s access to preferential loans.
After five months of decree implementation, the Ministry of
Agricultural and Rural Development has received project proposals from 16 of
28 targeted provinces and cities, according to the ministry’s report.
As many as 12 localities have approved the construction and
upgrading of more than 400 vessels and five have provided insurance for
vessels, fishing equipment and fishermen worth more than 6.4 trillion VND
(304.5 million USD).
More than 380 trillion VND (18 billion USD) has been allocated
for the ministry to carry out projects on aquatic products and devise tax
incentives in 2015.
During the meeting, participants suggested accelerating
appraisal and approval processes by allowing local and commercial banks to
join in the Steering Committee on the implementation of the decree.
They also requested expansions to the scope of targeted
beneficiaries and services to ensure the comprehensive realisation of the
policies.-
Domestic industrial production makes a good start
The national index of industrial production (IIP) grew
significantly by 17.5 percent 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 percent of total industrial output, saw a year-on-year growth of
19.4 percent, while production and distribution in the electricity sector
jumped by 20.9 percent. Production in the water supply, sewage and waste
management sector grew by 9.5 percent.
Some industrial products recorded high IIP increases during
the month, included handsets (up 91.1 percent); televisions (88.7 percent);
steel (35.7 percent); animal feed (29 percent) and cement (27.1 percent).
Encouraging growth was also reported for other products such
as fresh milk (21.9 percent); footwear (19.8 percent) and fertilisers (18.5
percent).
Several products, however, reported industrial production
drops, such as powdered milk, down 18 percent, liquid petroleum gas (10.9
percent) and sugar (4.7 percent).
As of January, the inventory levels in the processing and manufacturing
were up 9.6 percent, 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 percent); means of transport (74.4 percent);
beverages (59.5 percent), electronics, computer production (37.8 percent) and
metal manufacturing (32.4 percent).
Vu Quang Ha from the 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
percent.
Quang Binh, Russian company to build thermal power plant
The central Quang Binh provincial People’s Committee and
Russian Inter RAO Group have freshly signed a Memorandum of Understanding on
the development of Quang Trach 2 thermal power plant.
Under the Build-Operate-Transfer contract, the plant, to be
located in Quang Dong commune, Quang Trach district, is intended to cost 2.4
billion USD.
It is designed to have two turbines with a full capacity of
1,320 megawatts. The plant is slated to become operational in 2024 at the
latest.
The province pledged to fully support the investors, with site
clearance and the construction of crucial infrastructural facilities, like
roads, power grids and water pipes.
The 34 trillion VND (1.59 billion USD) Quang Trach 1
thermo-power plant, invested by the 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.
The province and the Vietnam National Oil and Gas Group are
working to tackle difficulties to make the plant become operational by 2020.
Crop protection concerns MARD and agriculture sector
Representatives from 63 provinces attended a conference held
by the Ministry of Agriculture and Rural Development (MARD) on January 29 to
outline key tasks for the upcoming year to ensure higher yields of crops for
export and protection from environmental threats.
Speaking at the conference in
Most importantly, the government and the agriculture sector
need to continue to be proactive in implementing regulations relating to
pesticides and installing the latest in technological innovation to protect
crops, he said.
The agriculture sector also needs to be clear on the
consequences of short sighted decisions on issues such as disease, pest and
weed resistance, and fully realize that the overuse of chemicals holds the
potential to destroy sustainability for the sector.
Nguyen Thanh Liem, deputy director of the Department of
Agriculture and Rural Development in Vinh Long called for developing plant
disease forecasting systems to improve quality and combating environmental
factors of farm produce.
Vinh Long is now one of localities which has had the most
productive cultivation zones for fruit exports in the country.
RoK supports central region development
The Korea International Cooperation Agency (KOICA) in
The projects include a US$6 million planning scheme for the
They also include a US$4 million project to strengthen
capacity for the Thua Thien Hue general hospital and
Over the past 20 years, KOICA has expended 60% of its total
budget to support the central region.
The KOICA chief representative said in the future his
organization will continue to support the central region by intensifying the
participation of the private sector to increase the efficiency of ODA
funding.
RoK ranks
The Korea International Trade Association (KITA) reported on
January 29 that business enterprises from the
According to KITA, the results of a survey of 537 Korean
enterprises showed that 49% of the respondents chose
Founded in 1946 to represent the interests of the RoK’s
international traders, KITA has been a critical part of the country’s
transformation into one of the world’s most preeminent trading nations.
Today, KITA is the RoK’s largest business association with
65,000 member firms, and continues to support
Deputy PM urges accelerating fishery development policy
Deputy Prime Minister Nguyen Van Ninh urged ministries,
sectors and localities to continue working towards fishery development
targets and speed up implementation of relevant policies.
Speaking at a meeting with stakeholders on their enforcement
of the Government’s Decree No. 67 on fishery development strategies in
The Deputy PM also called for the ministries and sectors’
collaboration in seeking alternative financial sources and improving
fishermen’s access to preferential loans.
After five months of decree implementation, the Ministry of
Agricultural and Rural Development has received project proposals from 16 of
28 targeted provinces and cities, according to the ministry’s report.
As many as 12 localities have approved the construction and
upgrading of more than 400 vessels and five have provided insurance for
vessels, fishing equipment and fishermen worth more than VND6.4 trillion
(US$304.5 million).
More than VND380 trillion (US$18 billion) has been allocated
for the ministry to carry out projects on aquatic products and devise tax
incentives in 2015.
During the meeting, participants suggested accelerating
appraisal and approval processes by allowing local and commercial banks to
join in the Steering Committee on the implementation of the decree.
They also requested expansions to the scope of targeted
beneficiaries and services to ensure the comprehensive realisation of the
policies.
Second thoughts on SMEs readiness for AEC
The establishment of the AEC marks the comprehensive
integration of
Leading economists forecast that the bloc collectively will
command an annual gross domestic product (GDP) of roughly US$2 trillion in
2016, making up 40% of global GDP.
However, despite all the rosy forecasts and figures, many
leading experts are now experiencing second thoughts or buyer’s remorse if
you will, and are questioning whether or not SMEs are adequately prepared.
They are just not quite sure where SMEs fit into the overall
economic landscape once the AEC officially comes into effect and whether they
will be able to effectively compete in the new marketplace.
Economic expert Pham Chi Lan said Vietnamese SME’s
shortcomings are weak capacity to access markets and capital, shortage of
state of the art technology, weak management skills and low labour
qualification.
In addition, limited export markets and deficient trading
skills prevent them from identifying potential markets.
A representative from the Vietnam SME Association said the AEC
will open up more challenges for SMEs so they must improve upon their
resources and capacity if they want to move ahead to become a leading
business in the region.
SMEs should consider capacity as a priority to focus on as
well as developing human resources, renovating technology and technical
capacity and raising management capacity.
They also need to restructure their businesses, apply better
production methods, build a long-term business strategy to expand production
capacity and a business network, Lan said.
When the AEC officially forms, SMEs will have to operate in a
much fiercer competitive environment, requiring them quickly to adapt to
exist and develop sustainably in the market.
However, to grasp opportunities brought about AEC, the
Government must devise proper support policies for SMEs to help them easily
access bank loans, advanced technologies and markets.
The Government also needs to continue to strive to upgrade and
revamp infrastructure, and ensure security, transparency and comprehensive
legal framework for businesses to operate.
The legal framework should facilitate SMEs in trading and
expanding export markets. To realise this, procedures, like business
registration, licence granting, capital borrowing, payment method, tax
declaration should be simplified.
In addition, relevant agencies should create the best possible
conditions for SMEs to register doing business, change their products, and
carry out import-export activities in accordance to law.
SMEs leaders are encouraging SMEs to take training courses on
international business skills. Particularly, they have to closely coordinate
with state-owned enterprises to raise competitiveness in the deep and wide
AEC integration process.
Ha
The An Phu Hung Joint Stock Company in the
The project, which began in July 2014, grows okra, sweet
potato and soybean across two hectares in the Phu Van commune, Phu Ly city
using seedlings imported from
According to Nguyen Thu Dang, Director of An Phu Hung, the
soil has been processed to remove unwanted components and no artificial
fertiliser was used.
All vegetables harvested from the field have met Japanese
standards for imports.
After the successful pilot project, An Phu Hung intends to
expand the cultivation area to 100 hectares in 2015, Dang said.
The project also opens up opportunities for further
cooperation between the province and
In an investment promotion trip to
A business delegation from
In mid-January, representative from a Japanese group, Showa
Denko, also came to the province to research the possibility of building an
organic vegetable cultivation farm using LED lighting.
According to Nguyen Van Oang, Director of the provincial
Department of Planning and Investment, modernising agriculture is one of
three pillars of the province’s economic development, seeking to improve
income and living conditions for people in rural areas.
The Business Association for High Quality Vietnamese Products
announced on January 28 that this year the – Vietnamese High Quality Goods –
award will be presented to 520 enterprises.
In making the announcement, Hoang Trong, a representative of
the association, said the winners have been selected based on the results of
a survey of 20,000 consumers adding; this year there are 42 winners that have
won for 19 consecutive years.
Over the past three years a grand total of 339 businesses have
been honoured with the award based on the results of consumer surveys in 20
cities and provinces throughout the country.
Vu Kim Hanh, the association’s chairwoman, in turn said the
survey has changed many times over the past 19 years to conform to the ever
changing market conditions and the development of business.
Bank M&A activity likely to speed up this year
The Government’s resolution on financial system restructuring
for the phase 2011-2015 has been implemented for the last three years and
achieved success but its progress has been slow. The State Bank of Vietnam
(SBV)’s circular 36 issued last November has put more pressure on cross
ownership reduction among banks and been expected to speed up M&A
activity this year.
The restructuring program has brought more achievements in the
banking sector than in two other fields including state own enterprises and
public investment.
As of October last year the total asset value of joint stock
commercial banks rose VND160 billion against the previous year to reach
VND2,624 trillion. Meantime the asset value of state commercial banks reduced
nearly VND6.5 trillion to VND2,172 trillion. Joint venture and foreign banks’
asset value dropped VND7,331 billion to VND619,112 billion.
Available funds of the banking system rose over VND497
trillion. Capital adequacy ration (CAR) hit 13.22 percent, far higher than
the permissible level of 9 percent. These numbers show positive results from
the credit institution restructuring. However its progress has been slow.
At the end of 2011 the first three joint stock commercial
banks were merged into Saigon Commercial Bank (SCB). Afterwards six out of
nine weak joint stock commercial banks were handled. Habubank was merged into
Saigon-Hanoi Bank in 2012.
Last year there were no considerable moves in the
restructuring program.
Governor of the State Bank Nguyen Van Binh has recently
affirmed that the banking system would enter the second restructuring phase
from 2015. The first half of the year will be peak time when SBV has
mandatory interventions to tackle weak banks that are unlikely to recover and
develop. They might be dissolved, merged or go bankrupt.
Official information related to M&A deals this year has
not been revealed. However financial experts forecast that the first deal
will be Sacombank – Southernbank or Maritime Bank - Mekong Bank because
they have the same majority shareholders.
Nam A Bank revealed that it is going to merge into another
bank to increase the competitiveness in the market after raising its
chartered capital and listing on the stock market.
Vietcombank shareholders have also approved the merger policy
with Saigonbank at an unusual shareholders’ meeting. Vietcombank is the
largest shareholder of Saigonbank with an ownership rate of over 8.2 percent.
BIDV is expected to merge with another bank possibly Mekong Housing
Bank and Vietinbank is likely to merge with Oceanbank or PGbank.
Opportunities in
The American Market Department under the Ministry of Industry
and Trade (MoIT) sees huge opportunities to export cassava to the Argentine
market in the coming time.
The department revealed that its market research indicates
Annually,
Despite difficulties such as high import tax and geographical
distance, the MoIT sees bright prospects for the export of cassava and thinks
The two-way trade turnover between
Last year,
The country’s exports to India that saw high growth included
pepper, coal, chemicals, coffee, textiles, seafood, leather, ceramics and
spare parts.
Source: VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
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Thứ Sáu, 30 tháng 1, 2015
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