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BUSINESS IN BRIEF 2/2
The State Bank of Vietnam has called on banks in HCMC to do
all they can to bring down bad debt to below 3% and achieve credit growth of
13% this year.
To Duy Lam, director of the central bank in HCMC, discussed
those targets at a meeting on plans for the banking sector this year in the
city on January 26. Lam attributed the high bad debt ratio last year to new
regulations on debt classification and risk provision in line with
international practices.
Bad debt of the banking system in HCMC rose to 5.31% last year
from 4.69% in the previous year.
Nguyen Van Dung, head of the HCMC Banking Supervision and
Inspection Agency, told the meeting that total bad debt at banks in the city
had amounted to around VND56.7 trillion (US$2.7 billion) as of December 31
last year, up over VND12 trillion compared to the beginning of the year. Of
the total figure, some VND3.368 trillion was from an agricultural bank and
more than VND10 trillion from two branches of a joint-stock commercial bank.
HCMC vice chairwoman Nguyen Thi Hong said a strong spike in
bad debt resulted from the Mac Thi Buoi branch of Agribank and Vietnam
Construction Bank.
Nguyen Dong Tien, deputy governor of the central bank, said
the bad debt ratio of over 5% was still manageable as the percentage at major
credit institutions was slightly over 1%, meaning the ratio at small banks
was much higher.
Tien said more than half of the 200 bank branches in HCMC have
high bad debt.
He acknowledged that the bad debt target of below 3% is hard
to obtain and that this would require banks to closely coordinate with the
central bank to solve problems related to collateral and debt collection.
Hong said the city government will work with the central bank
over the settlement of bad debts at banks in the city.
Banks in HCMC posted credit growth of 12.1% last year.
New foreign direct investment (FDI) approvals have amounted to
nearly US$364 million in the first month of the year, a strong increase
against the same period last year, according to the city’s Department of
Planning and Investment.
Speaking at a review meeting on the city’s socio-economic
performance in January last week, the department’s director Thai Van Re said
the FDI picture in the first month is good with foreign investors registering
nearly US$330 million for 23 new projects, up 15 times in capital and 53.3%
in project number.
Re said investors have got approval to add a total of US$34
million to eight operational FDI projects in the period, raising the total
amount of capital registered for both fresh and operational projects to
nearly US$364 million.
Re said the capital pledged by domestic enterprises for new
and operational projects this month has picked up 33.2% year-on-year.
Meanwhile, the number of business closures has declined by 10% against a year
ago, suggesting that the city’s manufacturing sector has improved well at the
beginning of the new year.
HCMC chairman Le Hoang Quan told the meeting that the city
government will continue creating favorable conditions and incentives to
attract more investments this year.
Quan said FDI approvals in the city reached US$3.25 billion
last year and are expected to climb to US$3.5 billion this year.
Quan pointed out positive signs from the hi-tech sector and
that more FDI is flowing into four key fields: engineering, electronics-information
technology, chemical-pharmaceutical-rubber, and food processing.
Regarding budget revenues, HCMC Department of Finance director
Dao Thi Huong Lan said the city has collected VND26.8 trillion this month, up
nearly 29% year-on-year. Of which, the amount paid by enterprises of
different economic sectors is up nearly 32% year-on-year to VND13.35
trillion, and exports and imports have contributed VND7.6 trillion,
increasing 48%.
New FDI approvals surge 67% in January
Fresh foreign direct investment (FDI) approvals nationwide in
the first month of the year are projected at US$663 million, up a whopping
67.1% against the same period last year.
The Foreign Investment Agency (FIA) under the Ministry of
Planning and Investment said 44 new FDI projects had been licensed as of
January 20 with total registered capital of over US$392 million, jumping
85.5% year-on-year. Besides, 19 operational projects have got approval to add
US$271.26 million to their pledged capital in the period, up 45.8%.
The strong increase in new FDI capital is a good sign for the
year.
Last year, FDI approvals stood at US$20.23 billion, 19% higher
than the target of US$17 billion, but fell 6.5% against 2013.
With the good start this month, analysts projected that fresh
FDI approvals in 2015 could be higher than last year.
According to FIA, foreign investors have registered in 11
fields this month, with processing-manufacturing attracting the most capital,
US$605.7 million, 91.3% of the total, in 18 fresh and operational projects.
Wholesale, retail and repair come in second with US$30.79
million (4.6%) while the power and water distribution stands third with
US$10.44 million.
Foreign investors have disbursed some US$505 million this
month, a year-on-year rise of 8.6%.
Regarding exports, the FDI sector has posted US$8.49 billion
in January, including crude oil, rising 8.2% year-on-year and accounting for
66.8% of the nation’s total. If crude oil is not taken into account, the
sector’s exports total US$8.2 billion, up 0.9%.
FDI enterprises have spent US$7.8 billion on imports this
month, up 41.4%, leaving a trade surplus of US$690 million.
Companies from 15 countries and territories have had their
projects approved in
The big projects licensed this month are Worldon Vietnam Co.
Ltd. worth US$300 million, Regina Miracle International Vietnam Co. Ltd. with
investment adjusted up to US$90 million and Taekwang MTC Vietnam having
investment of US$43.2 million, according to FIA.
Serviced apartment rents hard to rise this year - brokerages
Property service provider CBRE Vietnam projected in its recent
report that rents for serviced apartments in HCMC would rise this year but
brokerages have cast doubt on this possibility.
CBRE Vietnam explained that the supply of serviced apartments
in the city was limited last year while demand showed some sign of recovery.
This is why the company forecast rents could increase 10-20%.
The company said in its review report on the fourth quarter of
last year that customers’ budgets for leasing houses improved in the period.
The requests for serviced apartments at a monthly rent of under US$1,000 fell
but those for US$2,000-4,000 grew. Some customers were willing to pay more
than US$6,000 per month for a rented home.
The monthly rents of serviced apartments in HCMC are US$25-32
per square meter, a slight rise over the third quarter of last year.
However, according to brokerages, the investors of serviced
apartments do not have plans to adjust up rents as occupancy is about 80%.
A representative of a property service provider told the Daily
that investors will have a sound reason to raise rents if the percentage is
higher, so rents may not edge up at least in the first half of this year.
As observed by the Daily, the monthly rent of less than
US$1,000 for apartments in the city is sought after by customers.
Mai Xuan Phu of Bloomhouse Real Estate Company specializing in
serviced apartments said 98% of his customers are foreigners working in
Meanwhile, the sales manager of a property brokerage in HCMC’s
District 1 said the majority of his customers choose serviced apartments from
US$1,500-2,000 per month, while those with fewer customers ask for apartments
with monthly rent of US$2,000-3,000.
More investors have spent on the projects of serviced
apartments with monthly rents at around US$500 in Phu Nhuan, Tan Binh and
Binh Thanh districts to attract cost-conscious customers.
According to CBRE Vietnam, the common leasing contracts for
serviced apartments are signed for periods of six months to one year.
The Q4 report of Cushman & Wakefield Vietnam showed more
foreigners prefer small serviced apartments for short and medium leasing
periods as companies have stopped providing or reduced housing rent for their
employees due to economic woes.
The company estimated HCMC now has 30 projects with nearly
3,000 serviced apartments and 44% of them are located in District 1.
Some serviced apartment projects to be up and running in the
city in 2015- 2016 include Ascott Waterfront Saigon,
Vinpearl beach villas attract buyers
Vingroup has quickly found buyers for dozens of luxury seaview
villas bearing the Vinpearl Premium brand in Nha Trang, Phu Quoc and Danang
since a sale launch Sunday.
Vacation villas of the
As many as 1,200 customers, including foreigners from Europe,
The four international-standard villa complexes overlook the
beaches of Danang, Nha Trang and Phu Quoc. In addition to free stays during
their vacations, buyers of Vinpearl Premium villas are offered an investment
opportunity on the vacation property market, with 85% of the profits from
leasing these villas going to them and a profit guarantee of 8% per year.
Owners of Vinpearl Premium villas can get 15-30 free nights a
year at any resort of the five-star Vinpearl chain. Besides, they can enjoy
food and entertainment services at Vinpearl resorts and
Fully-furnished Vinpearl Premium villas cover 333 square
meters to 1,300 square meters, and consist of two to four bedrooms.
According to statistics of the Foreign Investment Agency,
foreign investors registered US$20.23 billion for projects in
Experts predicted the vacation property market would get
bustling when the amended housing law that allows foreigners to own
properties in
Banks speed up lending ahead of Tet
Local banks are stepping up lending to individual and
corporate customers to cash in on the traditional spending spree in the lead
up to the Lunar New Year holiday, or Tet.
Vietnam Prosperity Bank (VPBank) offers business installment
loans and unsecured cards for enterprises wanting to raise capital and invest
in fixed assets such as factories, machines and equipment, Vietnam News
Agency reports.
For the business installment loan product, each firm is
entitled to a credit limit of VND5 billion (US$234,500) with a tenor of three
years. Meanwhile, with the unsecured card, VPBank offer loans of up to VND2
billion each and other incentives for corporates.
The bank said the two products are designed for businesses in
sectors such as wood processing, textile, garment, consumer goods and
electronics.
Meanwhile, VietABank has launched a credit package for
individual customers who want to do business, construct or repair homes, and
buy cars.
The bank applies an interest rate of 7.7% per annum and
flexible lending terms. Loans are available from now to March 31.
Trinh Minh Thao, deputy general director of VietABank, said
the bank would simplify procedures.
Smuggling situation remains unanticipated
Before Tet holidays, rising demand for goods and big profits
prompt traders to increase smuggling of Chinese-made goods through northern
borders in Lang Son, Quang Ninh and Lao Cai provinces. This year, smuggling
tends to decrease, thanks to strong measures taken by police, but remains
unanticipated.
Prior to Tet holidays, smugglers not only smuggled essential
goods such as: clothes, garments, footwear, and electronic appliances, but
also forbidden goods like firecrackers, counterfeit money, cigarettes, fake
alcohols, and foods with unclear origin. Especially, they use every
sophisticated and vicious trick to cope with authorities.
With a long border of tens of kilometers from Tan Thanh Border
Gate to Coc Nam Border Gate,
Senior lieutenant colonel Ninh Van Hop, a commanding officer
of Huu Nghi Border Post in
Meanwhile, at Tan Thanh Border Gate, the largest open economic
zone in the northern border area, trade is humming with lines of container
trucks cramming the border gate.
According to customs officers at Tan Thanh Border Gate, the
border gate sees the highest amount of goods exported and imported at this
time because consumption demand of both
At Tan Thanh Market, kiosks display all kinds of goods,
including clothes, footwear, electronic products, cosmetics, medicines, and
foods. Traders at Tan Thanh Market are both Vietnamese and Chinese. Although
having owned two fabric and clothes stores in
Tong revealed without hesitation that all kinds of goods can
be found at border area, even forbidden goods, such as: counterfeit money,
firecrackers, swords, and stun guns as long as buyers have enough money.
Quality and price are also diversified.
He also unveiled that big Vietnamese traders, nowadays, rarely
go to
Lieutenant colonel Vu Quoc An, commissar of Tan Thanh Border
Post, said that due to high demand and big profits, smugglers have used every
sophisticated and aggressive trick to bring smuggled goods into the country.
Smuggled goods usually are gathered at trails near the border,
and then are split into small package for easily carrying. At the right time,
hundreds of porters will carry goods cross the border into the inland.
Traffickers also place outguards to monitor and block anti-smuggling force
and hire local residents to transport goods. Noticeably, porters are not only
youngsters but also old people and kids. They even force porters to deposit
money when they are hired to transport smuggled goods so if porters are
caught they will dump goods or fight against police to get their goods back.
Border Command of Lang Son Province said that in order to
prevent smuggling, border guards have to place obstacles and keep close watch
on trails that are usually used by porters despite severe weather.
According to Mr. Hop, Huu Nghi Border Post has raided and
tackled 24 warehouses contained smuggled goods and uncovered 354 cases of
smuggling, of which, there were seven cases of firecracker smuggling with
nearly 400 kilograms of various kinds of crackers.
However, he also said that current anti-smuggling measures are
merely palliative. It requires measures to resolve internal issues and
promote domestic production in order to prevent smuggling thoroughly in long
term.
ANZ:
Despite the tumbling global oil price,
Vietnamese consumers have started 2015 with confidence largely
intact after a tumultuous 2014, Glenn Maguire, ANZ Chief Economist for
“The most interesting aspect of the Vietnamese consumer
confidence readings is that the very large decline in international oil
prices has not been able to arrest a modest deterioration in Vietnamese
consumer confidence in recent months. Indeed, we note that both assessments
of the one-year and five-year economic and financial outlooks for Vietnam
have been in a modest decline for three months now,” it said.
In terms of personal finances now, 33% (down one percentage
point) of Vietnamese said their family is ‘better off’ financially than a
year ago compared to 21% (down one percentage point) who said their families
are ‘worse off’ financially.
Of the respondents, 53% (down five percentage points) of
Vietnamese expect their families will be ‘better off’ financially this time
next year compared to just 6% (up one percentage point) who expect to be
‘worse off’ financially.
Meanwhile, exactly half of respondents (unchanged) say Vietnam
will have ‘good times’ financially during the next 12 months and only 14%
(down one percentage point) expect ‘bad times’ financially.
In addition, 43% (up three percentage points) of Vietnamese
said now is a ‘good time to buy’ major household items (the highest for this
indicator since January 2014) compared to 11% (down two percentage points)
who said now is a ‘bad time to buy’ major household items.
“We suspect that the ongoing slowdown in
It is interesting to note that the large decline in recent oil
prices has had less impact on consumer confidence than the deterioration
(negative) and subsequent improvement (positive) in relations with
Many Vietnamese private companies are using technology 50
years out of date, and as a consequence
Even though small- and medium-sized enterprises (SMEs) account
for up to 98 percent of all non-state firms in
Thuy said non-state enterprises, especially SMEs, play a
significant role in the country’s economy, with non-state enterprises
contributing as much as 50 percent to
They also account for some 30 percent of total investment and
45-47 percent of all jobs.
“Despite their important role in the country’s socio-economic
development, SMEs in Vietnam are too modest in business size, and backward in
technology and management, which results in weak competitiveness and
inefficient operations,” Thuy said.
Most SMEs lacked adequate funding and mainly rely on bank
loans to finance operations because of the lack of investment capital. Many
SMEs have reported a considerable decrease in revenue and profit in recent
years.
“Due to the lack of funding, private firms, especially SMEs
cannot afford sufficient investment in technology," Thuy said.
"Most of them are using technologies that are from two to
three generations older than the world average,” she emphasised.
According to her, as much as 80-90 percent of technology was second-hand
and imported from foreign countries. Up to 75 percent of business and
production machinery belonged to the 1960s and 1970s, and 75 percent of
equipment has already been depreciated to zero, with only half the machinery
replaced.
Thuy said such enterprises were spending only 0.2-0.3 percent
of revenue on updating technologies, compared with five percent in
Only 20 percent of
SMEs are facing increasing difficulties in getting access to
bank loans due to their modest size and the lack of confidence in their
capacity.
Tran Thi Hong Hanh, general secretary of the Vietnam Banks
Association, said integration has brought about several business
opportunities, but it was necessary to pay more attention to enhancing the
competitiveness of local enterprises in order to ensure sustainable
development.
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
Retail sales and consumer services rise slightly in January
Revenues from retail sales and consumer services in January
increased by 2.2% against the previous month and 13% over the same month last
year, according to the General Statistics Office.
Total revenues in January were estimated at VND275.5 trillion
(US$12.9 billion), a rise of 11.9% from January of 2013 when adjusted for
inflation.
The national statistical agency said revenues from domestic
private enterprises accounted for 86% while the State and foreign sectors
made up 10.8% and 3.2% respectively.
A breakdown shows that retail sales revenues went up 3.1% from
December to more than VND211 trillion (US$9.9 billion), driven by solid sales
of garment products and household appliances.
Revenues from accommodation and restaurant services rose by
2.9% while revenues in the tourism sector fell 1.8%.
Last year, revenues from retail sales and consumer services
rose 10.6% to reach more than VND2,945 trillion (US$138.4 billion).
Finance ministry considers bio-fuel import tariff hike
The Ministry of Finance is seeking to increase the tariff on
E5 bio-fuel imports to 35% from the current 5% to encourage local fuel
enterprises to produce this fuel.
The ministry is currently collecting comment from relevant
agencies on the planned import tax hike for the bio-fuel, a mixture of 95%
RON92 petrol and 5% ethanol.
According to the ministry, import tariffs on materials for
producing the bio-fuel are much higher than the tax on imports of the
finished product, thus encouraging bio-fuel import.
Earlier, Binh Son Refining and Petrochemical Co. Ltd. wrote to
the ministry suggesting a tax rise on E5 imports for fear that its own
bio-fuel cannot compete with the imported product in the coming time.
The company said as the current import duties on imports of
E5, RON92 and ethanol are 5%, 35% and 20% respectively, the price of locally
made E5 is much higher than the imported, making life tough for local
enterprises to sell the bio-fuel on the domestic market.
Therefore, the current tax policy for fuel imports discourages
the local production of the bio-fuel but even affects the implementation of
the Government’s Decision 53 on the production and trading of the product,
according to the company.
Binh Son can produce two million tons of RON92 gasoline
annually and meet 30% of local demand for E5 bio-fuel.
Besides, several wholesale fuel enterprises import RON92
petrol to mix with ethanol to create E5 petrol for domestic sale.
Measures proposed to back supporting industries
Business executives and experts have called for State agencies
to select contractors using domestic products and services as this is one of
the effective measures to prop up underdeveloped supporting industries.
Developing supporting industries for the mechanical
engineering sector is one of the priorities of the government of HCMC, heard
a seminar on Tuesday. However, most enterprises active in this field are
grappling with a host of difficulties in production and consumption.
It is not easy for an engineering company to find customers,
said Do Phuoc Tong, vice president of the HCMC Association of Mechanical
Engineering, at the seminar on supporting industries held by the city
government.
The chairman of Duy Khanh Co. said customers will decline to
cooperate if the production capacities and facilities of domestic enterprises
are poor. Others are concerned about the quality of products and the honoring
of contract terms.
Though the city government has helped build a bridge between
enterprises in supporting industries and customers, results have not been as
good as expected due to the limited capacities of domestic firms.
The city should set specific percentages for local content at
projects so that investors will have to place orders with Vietnamese
enterprises, Tong proposed.
Tong suggested the city give more opportunities for mechanical
engineering enterprises to participate in projects funded by the State budget
and request contractors to hire local sub-contractors or use certain volumes
of domestic products as bidding criteria.
In addition, Tong proposed HCMC ask the Government to review
and apply new import tariffs in machine and equipment imports to support
domestic producers as the exisiting import duty policies are unreasonable.
For instance, most imported machines and equipment enjoy a
zero tax while local companies have to pay 20-25% for parts they import for
manufacturing mechanical products. This has eroded the competitiveness of
local manufacturers, according to Tong.
According to industry insiders, many policies are hindering
the development of enterprises not only in mechanical engineering but also in
other sectors such as apparel, footwear, automobile and electronics.
Experts and enterprises at the seminar pointed out the lack of
investment capital for enterprises, human resources and incentives as major
problems for supporting industries.
Supporting industries are in a weak position, HCMC vice
chairman Tat Thanh Cang said, because policy incentives for them are not
working. These incentives are not better than those for other fields.
Enterprises warned of cyber attacks
Government officials have called for local organizations and
businesses to prepare measures to counter cyber attacks and cushion their
impact if hacked.
Huynh Ngoc Son, vice chairman of the National Assembly, told a
conference in Hanoi on January 28 that computers and the Internet have
contributed a great deal to socio-economic development in many nations but
hacking has threatened peace and security in the world.
The number of hacker attacks on the databases of many
countries has been on the rise.
“The latest incidents have showed the serious impact of cyber
attacks. Thousands of websites in Vietnam, including those of State agencies,
have been hacked in recent years, causing great damages,” Son said.
Hoang Phuoc Thuan, head of the Department of Network Security
under the Ministry of Public Security, said many countries consider hacker
attacks as a leading threat to their security.
Le Ba Quoc Thinh from the Department of Information Security
under the Ministry of Information and Communications said there were some
275,000 website attacks in HCMC alone last year, up three times against 2013.
Nguyen Minh Tuan from the Ministry of Defense said cyber
attacks have been detected not only in the political field but also the
economic one. Therefore, Vietnam should enhance international cooperation and
join international cyber security organizations to cope with threats from the
Internet.
Thinh suggested the Government develop special units and boost
personnel training to cope with hacker attacks.
EVN to sell VND1 trillion worth of non-core stakes this year
Vietnam Electricity Group (EVN) will sell some VND1 trillion
worth of share holdings in non-core businesses this year as part of a
Government-approved plan to restructure State-owned business groups and
corporations.
EVN said in a document sent to the Daily that it divested
VND691 billion (over US$32.3 million) from non-core operations last year, or
40.8% of the State capital it is required to divest in line with its
restructuring scheme.
The group completed offloading shares at Saigon Vina Real
Estate Joint Stock Company and Central Power Real Estate Joint Stock Company
last year.
EVN said as uncertainties on the local stock market remain, it
has drawn up plans to boost capital divestments from non-core business
operations via auctions and negotiations with partners for capital transfers.
EVN plans to complete divestments from real estate, banking,
insurance and stock sectors this year to focus its resources on electricity
generation and trading.
In August last year, the Government approved a financial
management mechanism allowing EVN to invest State capital and other sources
in business activities, except for real estate, banking, insurance, and
securities sectors. Special investments in these four sectors require
approval from the Government.
As regulated, EVN’s financing sources include State capital
and funds the group mobilizes from different sources in line with existing
rules, apart from the funds it is managing.
US$273 million loans for power grids in Hanoi, HCMC
Prime Minister Nguyen Tan Dung has okayed the use of nearly
US$273 million lent by the Asian Development Bank (ADB) and the ASEAN
Infrastructure Fund (AIF) for development of power grids in Hanoi and HCMC.
Hanoi Power Corporation (EVN Hanoi) and HCMC Power Corporation
(EVN HCMC) will be re-borrowing the loans in line with terms and conditions
of ADB and AIF plus the Government’s lending cost of 0.25% per annum. The
20-year loans have a grace period lasting until March 15, 2020.
Vietnam Electricity Group (EVN) has committed to repaying the
loans for EVN Hanoi and EVN HCMC in case the two companies default.
The project aims to reduce power outage, ease overloads for
the 220kV and 110 kV transmission lines, cut electricity losses, improve
power supply quality, and meet the fast-growing demand in the country’s two
biggest cities between 2014 and 2016 with a vision to 2020.
Last year, EVN spent VND125.5 trillion on many electricity
source and network projects to secure stable power supply for Hanoi, the
southern region and key economic zones. The investment rose by 28% compared
to 2013.
More firms to enjoy customs priority
Enterprises having annual imports and exports of US$100
million or above and abiding by regulations will get customs clearance
priority.
According to the Government’s Decree 08/2015/ND-CP with effect
from March 15, fewer customs procedures will be applied to exporters with
revenues of US$40 million per annum or higher and those of Vietnamese farm
produce and seafood with annual revenues of US$30 million or above.
Besides export revenue, exporters must have observed customs
and tax laws for two consecutive years, have used recognized auditing
standards, and have had an internal control system in place for import and
export goods.
Under the current Circular 86/2013/TT-BTC of the Ministry of
Finance, only those companies having general goods imports and exports of
US$200 million a year are entitled to priority customs clearance. To enjoy
this treatment, exporters of farm produce, seafood, apparel and footwear must
have annual revenues of US$50 million.
Once recognized as priority firms, they will be exempted from
customs inspections at border gates.
The priority enterprises may be recognized by other member
states of the Trans-Pacific Partnership (TPP) once this multilateral trade
pact is signed.
Hai Duong’s FDI hits 88 million USD in January
The northern province of Hai Duong attracted 88.1 million USD
in foreign direct investment (FDI) in January, a 20 percent increase from the
same period last year.
According to the provincial Department of Planning and
Investment, the local authorities aim to lure a total of 200 million USD of
investment capital in 2015.
To realise these targets, the locality will intensify
investment promotion campaigns targeting large and multinational groups as
well as working closer with central ministries.
Administrative reform, the simplification of investment
procedures, and increased management will be carried out to create improved
conditions for foreign investors to operate in the province.
The locality will also focus on strengthening links with
investors to increase confidence.
Hai Duong is home to 292 foreign-invested projects from 24
countries and territories worth 6.5 billion USD, of which 2.9 billion USD has
been disbursed.
The projects have created over 140,000 jobs.
HCM City boosts trade promotion in key markets
The Investment and Trade Promotion Centre (ITPC) of Ho Chi
Minh City will focus on key markets like Russia, China’s Hong Kong, Cambodia,
Myanmar, Indonesia and Laos in 2015 to expand market share of Vietnamese
goods abroad.
ITPC Director Pho Nam Phuong said that the centre will
accelerate the organisation of fairs and dispatch of more delegations to
study these markets.
It will also promote activities to attract foreign investment
in hi-tech industry and agriculture and support industry.
According to an ITPC report, last year, the centre welcomed 91
delegations from numerous countries, including the US, Japan, Germany,
Russia, Indonesia, and France, coming to the city to seek business and
investment opportunities.
It also organised six made-in-Vietnam goods fairs in districts
across the city, drawing the participation of 300 enterprises and over
100,000 visitors.
In 2014, Ho Chi Minh City ranked second in foreign direct
investment attractions with the total capital of 3.2 billion USD, a surge of
91.6 percent against the previous year. Its export value hit 32 billion USD,
up 8.8 percent year-on-year.-
Source: VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
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Chủ Nhật, 1 tháng 2, 2015
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