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BUSINESS IN BRIEF 4/2
Saigon Securities Inc (SSI) has reported that its SSI Asset
Management Ltd Co (SSIAM) has completed sale of over 3 million shares in
confectionery firm Bibica Corp (BBC), accounting for nearly 20 per cent of
BBC's charter capital.
The buyer information has not been disclosed.
After the deal, SSI's holding in Bibica decreased to a tiny
0.02 per cent, thus Bibica is no longer its affiliate.
Bibica general director Truong Phu Chien said the withdrawal
of SSI would not affect the company's future development plans.BBC stocks hit
their ceiling price on Friday at VND57,500 (US$2.69) a share, while that of
SSI declined 2.2 per cent to VND26,300 ($1.23).
Vinatex and Itochu embark on ambitious project
Vinatex and the Itochu Group, two leading textile and garment
makers of
The string of projects aims to help Vinatex increase its
self-reliance on material sources and expand its portfolio of finished
textile, dyeing and raw material projects.
The initial stages of the project items are designed to
primarily serve Vinatex’s member units.
In last October Itochu spent more than $9 million on buying a
3 per cent stake in its local partner Vinatex when the latter hosted its
initial public offering (IPO).
According to Itochu Textile Prominent Asia CEO Shimizu
Motonari,
Motonari stressed in particular the Trans-Pacific Partnership
Agreement (TPP), negotiations over which will soon reach conclusion, then
approaching the signing stage.
“More cooperative projects will be placed underway in the
upcoming time between members of the two sides as Itochu is both a
stakeholder and a long-time business partner of Vinatex,” said Motonari.
The string of projects is expected to generate $60 million in
total revenue in the course of the next five years, and create thousands of
jobs at project sites such as Nghe An and Quang Binh provinces.
Though the total investment capital of these projects is still
withheld, it is expected to amount to several million US dollars since
textile and dyeing tends to be a capital intensive investment.
Vinatex general director Le Tien Truong said, “Through having
Itochu as a stakeholder and partner, Vinatex expects to expand its markets,
access state-of-the art technology, and more importantly, tackle the
bottleneck of costly textile-dyeing investment, striving to build up a
comprehensive supply chain in textile and garment for Vinatex, as well as Vietnam’s
textile clothing industry.”
As
Until present, Itochu is the first non-credit institution from
To date, Itochu has developed trading relations with about 100
Vietnamese companies in the textile and garment fields.
According to Motonari, growing Japanese investment into the
raw materials sector provides the opportunity for the Vietnamese textile
garment industry to take advantage of the yard forward principle and
gradually meet the technical and environmental standards to become a major
exporter to
This year,
Vietnamese manufacturing on the rise: HSBC report
Vietnamese manufacturing continued to strengthen in January,
supported by a further growth in new orders, according to HSBC's Vietnam
Manufacturing Purchasing Managers' Index monthly report released on February
2.
As a result, employment increased at a solid pace that was the
sharpest since December 2013.
Meanwhile, input costs decreased at the fastest pace in the
survey's history as a result of falling fuel prices. This in turn led
manufacturing firms to reduce their output prices sharply.
The headline seasonally adjusted Purchasing Managers' Index
(PMI) – a composite indicator designed to provide a single-figure snapshot of
operating conditions in the manufacturing economy – pointed to a further
modest strengthening of business conditions at Vietnamese manufacturing
firms, posting 51.5 in January compared to 52.7 in December.
Operating conditions have now improved in each of the past 17
months, it said.
Both output and new orders continued to rise at the start of
2015, albeit at weaker rates than seen in December. Improving client demand
had been behind the rise in new work, in turn leading firms to raise
production. New export orders, meanwhile, rose only slightly amid some
reports of weakening demand in export markets.
A slowdown in growth of new orders, as well as reported
productivity improvements, led to a reduction in backlog of work in the
sector. The decline in outstanding business was also reflective of a solid
rise in employment. Moreover, the rate of job creation was the sharpest in
just over a year, and one of the fastest in the history of the series.
Falls in the global price of oil led a number of respondents
to report reduced fuel costs in January. Consequently, input prices decreased
at the sharpest pace in the survey's history, surpassing the previous record
set in June 2012.
In response to sharp reductions in input costs, manufacturers
lowered their prices accordingly. Charges decreased for the fourth month
running, and to the greatest extent in 30 months.
A modest improvement in vendor performance was registered in
January, with panellists suggesting that faster payments and requests for
quicker deliveries had resulted in shorter lead times. Delivery times have
now shortened in each of the past four months.
Purchasing activity increased for the 17th successive month,
albeit at the weakest pace since October. Where purchasing rose, this was
linked to higher production requirements.
Despite a rise in input buying, stocks of purchases decreased
for the first time in three months. According to respondents, inputs
purchased in previous months had been used for production in January.
Stocks of finished goods also decreased as products were
delivered to clients. The fall in post-production inventories ended a
six-month sequence of accumulation.
Commenting on the Vietnam Manufacturing PMI survey, Trinh
Nguyen, Asia Economist at HSBC, said, "The deceleration of global demand
is taking a bite at output growth, although competitive pricing helps counter
the slowdown of external demand.
"Despite slowing new export orders, employment rose
sharply, highlighting strong demand for Vietnamese goods, necessitating new
headcount.
"With input prices decelerating, thanks to the sharp
decline in oil prices, and inventories low, we expect output to continue to
expand in February, although the Lunar New Year festivity means there will be
some seasonal slowdown."
Vietnam to mobilise development capital equal to 30% GDP
With its efforts in dealing with foreign debts and building
financial and credit relations with foreign countries, in the 1993-2013
period foreign donors committed to provide Vietnam with US$78.19 billion in
official development assistance (ODA).
The country has received US$58.36 billion and disbursed
US$37.6 billion.
According to the Ministry of Finance, ODA garnering and using
since 1993 have obtained positive results. ODA fund becomes an important
source for investment in important sectors in the industrialisation and
modernisation process, particularly in socio-economic infrastructure,
agricultural and rural development and poverty reduction.
It has helped
The ODA fund has been used in implementation of infrastructure
projects such as electricity, transport, irrigation, water supply,
agricultural and rural development, poverty reduction, healthcare development,
education and training, capacity building, administrative reform, law,
economic management and environment protection.
This year the Government aims to mobilise around VND1,345
trillion development capital, equal to around 30% of GDP, including VND275 trillion
from foreign direct investment (FDI) and VND30 trillion from other sources.
The Mekong Delta provinces earned 229 million USD from export
of 516,000 tonnes of rice in January, up 3.2 percent over the same period
last year, according to the Steering Committee for the Southwestern Region.
In 2015, regional provinces are planned to ship abroad 6.2
million tonnes of rice, worth 2.9 billion USD, a year-on-year increase of 3.4
percent.
The localities will boost trade promotion and marketing
activities with a view to seeking more customers in the European Union, North
America, the Middle East,
They continue diversifying types of rice for exports.
To ensure sufficient rice for exports, the provinces will put
an additional 4.2 million hectares of land in rice cultivation while
selecting more high-yield varieties suitable to soil and ecology in each
locality.
In 2014, Mekong Delta provinces exported 6 million tonnes of
rice, raking in 2.8 billion USD. Of the amount, 80 percent was consumed in
Asia and Africa, 17 percent in the EU and North America and the remaining in
the Middle East and
Vinaconex secures funding for water pipeline project
Vinaconex has secured a loan from a commercial bank to fund
the construction of a new water pipeline bringing water from Da River to
supply to
The 18-year loan will provide 85 percent of the project’s
total investment of 1.2 trillion VND (55.8 million USD), according to the
company.
This will be the second Da River water pipeline, which is
slated to supply around 40,000 cu.m of water to the city.
Construction of the pipeline will start before the Lunar New
Year holiday.
The first Da River water pipeline was put into use in 1997 and
had been broken on six separate occasions. Tens of thousands of households
suffered water shortages for days on each occasion.
Currently, there are 18 water plants in
Construction sector goes green
Vietnamese officials and international donors held a
roundtable meeting on construction green growth in
The sector reportedly consumes 36 percent of total electricity
usage nationwide, heard the meeting.
The implementation of green initiatives could conserve up to
30-40 percent of its current demands, it added.
Jesper Dilefsen, an advisor from the Danish Energy Agency,
said
Other sponsors voiced opinions on the prioritisation of
energy-saving programmes such as building capacity for the technical system,
designing eco-friendly products and enacting relevant measures and
regulations.
They advised the construction ministry take part in long-term
and multi-sector projects rather than limiting activities within their field.
According to Phan Thi My Linh, Deputy Minister of
Construction, the roundtable meeting provides a practical discussion platform
between her agency and foreign partners, which contributes to improving green
development policies.
The sea level is expected to rise by 98 centimetres by the end
of the 21 st century, flooding 20 percent of
The retail market in
Last year was continuously marked by numerous fluctuations in
the modern retail market nationwide, as well as in
Some trading centres in the city had to sell or temporarily
stop their operations, including the Thai Berli Jucler Group buying Metro
Vietnam, and the operations at Parkson Landmark 72 and
The market share of the modern retail model stooped to a new
low, she said, with the circulation of good in the modern distribution system
accounting for 15 percent of the market and other goods distribution systems
being traditional markets and sale agents of producers.
These trading centres faced difficulties in business because
there was a growing supply of retail spaces in the medium and high-end
segments, while almost all retailers were small and medium-sized enterprises,
Lan explained.
They have also found it difficult to seek retail spaces that
were suitable for their financial ability. If they leased spaces in trading
centres for a high rent, their goods would also have to be priced higher and
would become difficult to sell.
Meanwhile, low purchasing power at present due to the economic
crisis also affected the consumption of goods at these trading centres, said
Lan, adding that customers could also buy goods via other channels, such as
online trading, direct orders at home and through sales agents abroad and did
not need to go shopping at trading centres.
However, in general, trading centres in
According to CBRE's report, Hanoi was ranked 13th in the list
of 19 hot retail markets in the world and one of the top ten cities in the
world that retailers planned to open their retail system in 2014.
This is because the retail system in
In 2015, approximately 397,000 sq. m of retail space from 19
projects enter the market. Of these, two projects have been completed, but
their opening date is uncertain, and nine projects are currently being fitted
out, according to Savills
In 2016, five projects will come online with an area of
356,000 sq. m. Four projects are currently under construction.
"The retail market is on its way to improvement and seems
to have found the right direction. The new trend is focused on developing
supermarket models, food and beverage items and entertainment, with the main
purpose being satisfying the clients' needs," said Do Thu Hang, the Head
of Research and Consultancy, Savills Hanoi.
According to CBRE Vietnam stable economic factors in the
future are expected to boost sales and boost buyers' confidence.
Rents are constantly dropping to maintain occupancy, but at a
modest pace. The expansion of retail space and the arrival of new entrants
are expected to drive the retail market in 2015 due to
Projects have been restarted and the production of future
supplies has sped up, following an economic recovery, according to the
report.
Coffee exports fall in January
The country exported an estimated 100,000 tonnes of coffee in
January, earning a turnover of more than 200 million USD, according to the
Agriculture and Rural Development Ministry.
The exports, however, represented a year-on-year decrease of
28.9 percent in volume and 23.6 percent in value, the ministry noted.
Germany and the United States remained the two largest
importers of Vietnamese coffee in 2014, accounting for 14.13 percent and
10.17 percent respectively of the country's total coffee export turnover.-
40 Thai food businesses seek trade opportunities in
A delegation of over 40 Thai businesses operating in the field
of food has visited
Through similar programmes, a number of Thai firms found trade
and investment partners in
An increasing number of Thai companies have come to the city
to seek for business opportunities and expand partnership in the city since
2011 because
During a meeting between Thai and local businesses, Nguyen The
Hung, Depuy Director of the Vietnam Chamber of Commerce and Industry (VCCI)’s
He called for drastic measures from both sides to fulfil their
growth targets and improve trade balance.
Total trade volume between the two countries in the first 11
months of 2014 reached over 9.6 billion USD, of which
Vietnam’s achievements highlighted at dialogue in France
30 years of “Doi Moi” (Reform) buoyed by the Party’s judicious
policies.
Vietnamese Ambassador to France Nguyen Ngoc Son made the
statement during a dialogue to discuss
Son underscored that
However, he also noted that
A number of French scholars took the occasion to express their
view on
Christian J.P. Weets, an international financial consultant at
W.I Finance Company, said apart from developing industrial sector,
Director of the observatory on dialogue and social
intelligence Jean- Francois Chantaraud emphasised that
The national flag carrier Vietnam Airlines is working towards
overcoming the challenges left behind from 2014, which was one of the most
difficult years for the aviation and tourism industry operating in
According to representative of Vietnam Airlines in
In that context,
Nguyen Huu Tung, branch manger of Vietnam Airlines in
Airline has decided to cancel the
In 2015, Vietnam Airlines will complete its two years project,
elevating its position to a four-star airline from a three-star one.
The carrier will also put into operation new aircrafts,
including 6 Boeing 787 and 4 Airbus A350, he said, adding that Vietnam
Airlines is also remodelling its brand awareness scheme, from changing
uniforms, to advertisement, to deliver a more high-class service.
Despites the challenges in the Russian market in 2015, Vietnam
Airlines in
Thai Nguyen tea fest draws the crowds
For a Vietnamese couple living overseas for many years, the
Tea Festival in Dai Tu district in the
Mathilde Tuyet Tran and her husband, who live in
The festival, which took place on January 25-27, promoted the
tea growing and drinking culture of the Vietnamese people. It attracted many
visitors.
Organised as a cultural festival and trade fair, the event
presented 200 booths introducing tea products and handicrafts from villages
in Dai Tu.
There was a competition to honour tea makers and to exchange
the technology used in tea processing by businesses, co-operatives, villages
and households.
Tourists also enjoyed singing, a typical music genre of the
Tuyet Tran said she felt the joy of the local people as they
introduced tourists to different products.
She said she was amazed by a drumming performance by
high-school students. She felt the beat reflected the soul of their homeland.
Tourists were impressed by a traditional market displaying
specialities such as com lam (rice cooked in a bamboo tube), nem chua
(fermented pork and pig skin), banh gio (pyramidal rice dumpling) and banh
chung (square glutinous cake).
Blessed with favourable soil and climate, Dai Tu District has
the largest tea plantations in the province. More than 6,200ha yield about
57,000 tonnes of leaves each year, making up one third of the province's
total tea output.
Dai Tu is pround of its prosperity associated with the
industry. This is also reflected in farmers' increasing incomes, according to
Dang Viet Thuan, Vice Chairman of the provincial People's Committee.
"The tea festival has become a tradition for local
people," he said. "It creates a chance to promote the products to
tourists and develop the name of Dai Tu tea."
Thai Nguyen tea products are popular in
January business shutdowns up 23 percent
Nearly 11,000 businesses were dissolved or suspended their
operations in January, reflecting a 23 percent 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 10 billion VND (470,000 USD), 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 31.7 trillion VND (1.48 billion USD), representing 27
percent drop from last year.
Accordingly, the average registered capital was pegged at 4.6
billion VND for each company, down 20 percent in comparison with the same
period last year.
In addition, the number of labourers for newly-established
companies slipped by 7.4 percent from the corresponding period last year.
Notably, some sectors saw a growth in the number of new firms,
such as entertainment with 147 percent, education and training at 45 percent
and real-estate trading at 42 percent.
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
The Economist:
Real GDP growth will be supported by rapid growth in exports
and a faster increase in investment, before accelerating to 6.4% a year in
2016-19 the newspaper continued.
Reforms to state-owned enterprises and the banking sector will
make slow progress, with the high level of bad debts still an issue.
The Hong Kong-Shanghai Bank Corporation (HSBC) also recently
announced the Purchasing Managers’ Index™ (PMI™) of
In 2014, growth in the industrial sector was estimated at
7.1%, up 1.7% over the same period of one year earlier, HSBC said
adding that
Binh Dinh ships second batch of tuna fish to Japan
The central coastal
They were selected from 100 tuna fish caught and preserved
using
The tuna fish will be shipped to
Earlier in August last year, 9 tuna fish caught by Binh Dinh
fishermen were auctioned off to the highest bidder for VND220,000 (US$11) a
kilogram at the Osaka central wholesale market.
Mekong Delta zones longan specialized area for export to US
Mekong Delta provinces have drawn up a zoning plan for the
production of safe longan in accordance with GobalGAP and VietGAP standards
to export to the
The US Department of Agriculture (USDA) has allowed
The Southern Horticultural Research Institute (SOFRI) reported
that southern provinces has around 34,000 hectare under longan trees
qualified for VietGAP and GlobalGAP standards.
Nguyen Van Liem, Deputy Director of the Vinh Long provincial
Department of Agriculture and Rural Development, said Mekong Delta provinces
should focus on pest and disease control to increase the productivity and
quality of longan to meet requirements of foreign importers, he added.
Hoang Trung, Deputy Director of the Department of Crop
Production (DCP), said Vinh Long, Dong Thap, Ben Tre and Tien Giang provinces
have expanded the existing longan area and coordinated with the DCP to raise
the quality of longan for export.
With experience learnt from the growing of rambutan and dragon
fruits, the DCP is providing further training for Mekong Delta farmers to
help them strictly follow VietGap standards and regulations on the use of pesticides
to meet requirements of demanding markets like the
PetroVietnam the epitome of Vietnam-Russia bilateral ties
More than five decades ago, an official visit of President Ho
Chi Minh City to
Since then, PetroVietnam, the Vietnam National Oil and Gas
Group, relations with their Russian counterparts in the industry have
developed harmoniously, in line with the overall blossoming of Vietnam-Russia
bilateral relations.
The evolution and growth of the Vietsovpetro, a
Vietnamese-Russian joint venture established in 1981 has been an idyllic
example of how the cooperative relations between the two nations have
matured.
Vietsovpetro started out with only 168 employees and most all
of its equipment, techniques and technologies were Russian. It has progressed
remarkably and now has over 8,000 highly qualified employees skilled in all
phases of the oil business.
It has nurtured young scientists and technicians, encouraging
them to take on responsibility for everything from searching, exploring and
exploiting oil to teaching them the importance of social responsibility.
With its outstanding track record of accomplishments,
Vietsovpetro has been honoured the Labour Hero title twice, Ho Chi Minh
Order, Vietnam Gold Star Order, and many other accolades.
The success of the venture has been a tribute to the teamwork
and dedication of the venture’s staff to master technologies and fulfil their
assigned tasks.
From a small unit with inadequate facilities and weak human
resources, Vietsovpetro has weathered all the storms to emerge the largest
oil and gas producer in
The Rusvietpetro Company which was formed in 2008 by
Zarubezneft (51%) and PetroVietnam (49%) has been has been another shining
example of the exemplary cooperative relations between the two nations.
The joint venture has been exploring and exploiting oil and
gas at 13 oil fields on 4 plots in the Nhenhexky Autonomous Region in
Despite all the difficulties and severe weather, Rusvietpetro
produced its first industrial oil in September 2010. By the end of 2012, it
began exploiting three additional oil fields – North Khosedaiu, Visovoi and
Another brilliant strategic success has been the Gazprom joint
venture, which has been in operation for 15 years and currently operates nine
oil projects. The Gazpromviet joint venture was formed by Gazprom (51%) and
PetroVietnam (49%) to explore the Nagumanov and
In recent years, cooperative ties between PetroVietnam and
Gazprom have expanded from oil and gas exploration to the production of
Liquefied petroleum gas (LPG), which has been used to fuel automobiles.
Currently,
In short, Gazprom,
Over the past 65 years during times of peace and adversity,
Vietnam-Russia bilateral relations have continually expanded. With significant
support of former Soviet Union in the past and
Recently a PetroVietnam executive was quoted as saying his
group is now ready to not only engage in oil & gas projects in
FTAs provide plentiful opportunities for agriculture
An array of free trade agreements (FTAs) coming into effect
this year will open up a wide range of new blindingly bright opportunities
for the agricultural sector leading to improved investment opportunities
along the entire value-chain.
A more perplexing dilemma however, is determining the best
business model and strategy to lift agriculture from the production of low
value staple food commodities higher up the value chain to make the best of
the opportunities.
It was not by chance that the 45th World Economic Forum (WEF)
held recently in Davos (
This fact clearly shows the increasingly important role that
food producers and suppliers play and most notably highlight
However, despite being one of the world’s leading
agro-forestry-fishery exporters, Vietnam's agriculture reveals weaknesses—
low value products at cheap prices, inefficient use of land and natural
resources, limited agricultural investment and poor hygiene and food safety.
With the current status of productivity and quality of
agricultural products, Vietnamese farmers and businesses are in a pickle to
take advantage of the coming golden opportunities absent extensive investment
and renovation. Thus, opportunities could be missed and leave
Investors from the
If Vietnamese farmers are off the mark in negotiating these
agreements they could find themselves simply working as farm labour for
foreign investors, or in other words – they will just be employees on
their soil.
In the face of limited agricultural investment, foreign direct
investment (FDI) inflows in agriculture are invaluable. Therefore it is
critically important that these agreements be structured in a manner that
enables local farmers and agro businesses to team up with foreign investors
on an equal partnership basis.
On a positive note, in recent times, a series of big
enterprises across many fields have shifted their investment in the
agricultural sector to large-scale agricultural projects based on high-tech
models which have brought higher efficiency.
The expanding capital inflows into the agricultural sector
show that sufficient resources to restructure the sector are available – it’s
just a matter of sitting down at the negotiating table and working out the
details.
To this end however, businesses need the support of the
government and more incentives to help entice foreign investors to fund land
and infrastructure purchases as well as acquire the necessary technologies to
revamp the agriculture sector.
To call for more agricultural investment, the Vietnam Ministry
of Agriculture and Rural Development (MARD) has been working hand in hand
with multinational groups to implement the public–private- partnership (PPP)
model.
Additionally, the MARD, last year, drafted a strategy for
attracting FDI in the agro- forestry- fisheries sector until 2030 for
submission to the Prime Minister for approval.
Agriculture is the biggest advantage of
Successful restructuring will not only enable Vietnam to
become an agricultural power, but also a promoter of the industry and service
sectors in furtherance of transforming into an industrialized and modern
nation by 2020.
Cement consumption rises 30%
Cement consumption in the country posted a 30 per cent
year-on-year rise in January 2015, reaching 5.87 million tonnes.
The latest figures from the Department of Building Materials
under the Ministry of Construction showed that local cement consumption in
the first month of the year was higher than those in the previous month and
in the same period last year.
Specifically, the consumption was 4.37 million tonnes, which
is 6 per cent and 47 per cent higher than last December and January,
respectively.
Of the total, the Viet Nam Cement Industry Corporation (VICEM)
sold 1.41 million tonnes of cement in local markets, 46 per cent higher than
its sales in the corresponding period last year.
In addition, the amount of cement exported was estimated at
1.5 million tonnes.
The department said that the selling price of cement last
month was more stable than its price last year, thanks to the balance in
supply and demand of cement production and consumption.
By the end of last month, the cement inventory was 2.69 million
tonnes, primarily comprising clinker.
Furthermore, the ministry predicted that cement consumption
this year would reach 71 to 73 million tonnes, which would be a 4 to 7 per
cent rise from that in 2014. Of this total, local consumption is expected to
be 52 to 53 million tonnes and exports will reach 21 to 22 million tonnes.
Director of the Department of Building Materials, Le Van Toi,
noted that as Vietnamese producers have been part of the cement export market
for four years, they have experience in market exploration and contract
negotiation.
Chairman of Viet Nam Cement Association, Nguyen Quang Cung,
agreed with this view, adding that most cement manufacturers in the world
target foreign markets because exports can help balance supply and demand.
Cung also pointed out that local cement businesses made
significant investments in modern production lines, branding
Moreover, the cement sector should adopt proper methods to
promote its export by 2025-30.
Several private cement producers have seen positive results in
their exports.
Chairman of the Vissai Cement Group in northern Ninh Binh
province, Hoang Manh Truong, affirmed that they had been active in their
production and consumption activities, adding that the company's cement
exports were equivalent to domestic consumption.
Truong also remarked that the group had signed an export
contract of 1.2 million tonnes of clinker with
VN food consumption to surge 5.1% every year: MoIT forecast
The forecast also pegged food consumption per capital growing
to VND5.8 million (about $276) by 2016, reflecting an increase of 4.3 per
cent.
The expected growth is a result of consumers' increasing
incomes and the development of the retail industry.
At present, Vietnamese consumers still focus on the daily
essential food demand.
However, the trend will change when the income of urban
residents rises, which will allow them to spend more on high-quality food and
beverages.
"In order to meet demand from local consumers, the
quality of local food products need to be controlled more closely," said
Bui Truong Thang, Deputy head of MoIT's Light Industry Department.
Thang told Dien Dan Doanh Nghiep (Enterprise Forum) newspaper
that most Vietnamese food processing enterprises have weak competitive
capacity in the regional and global market.
The reasons are many, but a lack of capital, poor machinery
and out-of-date technology, are some of the causes that have been identified.
In order to improve the situation, some local companies have
invested in building a breeding farm and processing factory to form a closed
manufacturing chain.
For example, the Massan Group began construction of the Massan
food industry centre in the central
However, the investment in food processing with standard
technology is still modest, according to MoIT.
EU promotes exports and investments to Vietnam
14 companies from eight countries in Europe paid a visit to
The trip was financed by the European Union under the
EU-Vietnam Business Network (EVBN) project with an objective of
increasing EU exports and investments to
EVBN had organised the Agrofood Trade Mission to offer
European companies a unique opportunity to discover the Vietnamese market and
meet potential business partners. The trade mission took place in both of the
largest Vietnamese cities,
The companies had customised B2B meetings with Vietnamese
importers, distributors and buyers. A total number of around 175 meetings
were organised between 14 European companies and Vietnamese partners within
the framework the trade mission.
The European businessmen had attended an informative seminar
organised in
EVBN also organised points-of-sales visits for the 14 European
companies at BIG C stores and Annam Gourmet shops to demonstrate a real site
to EU companies.
As a part of the trade mission, some companies also
participated in the food and beverages exhibition called “Le Bon
2015 will mark an important year of bilateral cooperation
between
Nestlé
It was announced on January 30 that Ganesan Ampalavanar has
officially been appointed as country manager at Nestlé
He has had more than 20 years working at Nestlé across the
globe. In
Leadership capability and experience gained in previous
assignments equip him well for his country management role in
Nestlé is the world’s leading nutrition, food and beverage
corporation with experience of more than 150 years. It has more than 500
factories in 86 countries around the world and 339,000 employees.
Officially beginning operation in
Source: VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
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Thứ Ba, 3 tháng 2, 2015
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