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BUSINESS IN BRIEF 6/2
Seafood exports to hit 8 billion USD in 2015
Workshop held to raise consumer responsibility of firmsThe
Vietnam Association of Seafood Exporters and Producers (VASEP) predicts the
seafood export value will exceed 8 billion USD in 2015 .
The VASEP revealed that the country exported aquatic products
to 166 markets worldwide in 2014, earning 7.84 billion USD and increasing by
16.5 percent from 2013.
Nearly all key seafood products experienced stable growth over
the year, especially shrimp exports with a 27 percent surge due to increased
global demand for the commodity.
The country’s total shrimp export revenue in 2014 reached 3.95
billion USD. White-leg shrimp exports hit 2.3 billion USD, while black tiger
shrimp netting 1.4 billion USD, increasing 46 percent and 4 percent over the
previous year, respectively.
Consumer confidence rises in last quarter
Vietnamese consumer confidence continued to see rapid
improvement in the fourth quarter of 2014, according to the latest Consumer
Confidence Index released by Nielsen, a global information and measurement
company.
Nielsen said
Vaughan Ryan, Managing Director of Nielsen
People are feeling better about their job prospects and about
their personal finances, and more people are feeling optimistic about the
future.
More consumers are considering spending again on holidays,
clothes and new technology, which are all good signs for the economy.
The report also reveals that consumers in
By gaining 120 points, consumers in Indonesia and Philippines
still remain the second most confident globally and the rise in the
Philippines was one of the largest quarterly increases globally, an increase
of five points per last quarter.
Consumer confidence levels in
Similar to the previous quarter, the current state of the
economy remains a key concern for consumers.
Close to one in five consumers in the region (18 percent)
cited the economy as their biggest concern over the next six months.
Consumers in
Job security ranks as the second biggest concern for consumers
in Southeast Asia (14 percent), particularly in
Overall, Southeast Asian consumers are among the world's most
avid savers, with more than two-thirds (69 percent) channelling their spare
cash into savings, compared to just 48 percent globally.
When it comes to savings, consumers in
"These latest findings show consumers in Southeast Asia
are conscientiously planning their financial future,"
"With disposable income becoming more readily available
than ever before, consumers across the region have the means to invest their
spare cash and strengthen savings, which is driving greater demand for
banking and financial services."
The Nielsen survey also indicates that at least eight in 10
consumers in
More than six in 10 consumers in
Other areas where consumers are cutting back include delaying
upgrades of technology, switching to cheaper grocery brands, saving on gas
and electricity usage and reducing holidays and short breaks.
"While consumer confidence is relatively stable across
Southeast Asia, consumers are expressing concern around areas such as job
security and economic health, and as a result they are cautious with their
spending," said
Firms join hands to develop clean food
Hoang Anh Gia Lai (HAGL) Group and food processor Vissan, a
member of the Satra Group (SATRA), have teamed up to launch a new premium
fresh Australian veal to the domestic market.
Vissan has also introduced numerous veal products through its
nationwide distribution channels such as SatraFood, SatraMart, Co.opmart,
Maximark and Vinatex supermarket chains on the occasion of the upcoming Lunar
New Year (Tet) festival.
According to Chairman of HAGL, Doan Nguyen Duc, Australian
calves will be imported to
Vissan’s General Director, Van Duc Muoi, emphasised his firm’s
strict management process ensuring food safety from farms to consumers. The
new product’s annual output could be as great as 100,000 imported calves,
both businessmen added.
Forestry development conference held
This year, the forestry sector aims to halt exploitation of
natural forest to protect and develop forest resources while improving living
conditions, eliminating hunger, and reducing poverty among ethnic minorities.
Deputy Minister of Agriculture and Rural Development (MARD),
Ha Cong Tuan, made the statement at an annual review co-organised by the
ministry and the Forestry Sector Support Partnership (FSSP) Office in
According to Tuan, climate change and international integration
has simultaneously opened up opportunities and challenges for the sector.
Looking ahead, the sector will focus on developing sustainable
and high-yield forestry models to supply timber and forest products for
processing.
Forestry production value is expected to hit 25 trillion VND
(1.16 billion USD) in 2015, an annual increase of seven percent, with forest
product export revenue at 6.7 billion USD and the forest coverage reaching 42
percent.
At the meeting, FSSP Co-Chair Kirsten Hegener said FSSP and
The FSSP looks to participate further in the sector’s
restructuring, especially the MARD post-2015 action plans and the amendment
of relevant policies, she added.
The FSSP began operation in 2000, and so far it has assisted
the country in building around 40 legal documents and projects in forestry.-
Incentives needed to boost auto industry
Chairman of the local private automaker Vinaxuki Bui Ngoc
Huyen proposed the Government put forward preferential policies on land,
technological transfer, and long-term, low-interest-rate loans to stimulate
automobile spare part manufacturing businesses.
In an interview granted to the Vietnam News Agency, Huyen said
the industry has undergone 20 years of formation and development with many
businesses encouraged to join the auto support industry.
He said the Government has adopted a number of policies to
develop the sector, such as supporting the mechanics industry with
zero-percent interest rates on 10-year loans, adding that however, few
businesses can access this source of capital.
He said support policies do not suit the real situation due to
a lack of accurate market forecast.
The businessman said his company has built auto-manufacturing
factories creating fuel-saving and low-cost cars for farmers and the
middle-class that meet international export standards, but high tax has
pushed prices up.
Huyen suggested the Government select and cooperate with
foreign partners in producing engines and complicated spare parts via
policies prioritising car accessory production over assembly.
Da Lat flower plantation ready for Tet
Flower reapers in Da Lat city in the Central Highlands
Flowers cultivated across 916 hectares will be sold in markets
on the occasion of the Lunar New Year (Tet). The outputs of 470 hectares of
chrysanthemum flowers will be available, as will 130 hectares of lisianthus
flowers, 70 hectares of lily flowers, and 70 hectares of boat orchid flowers,
among others.
Apart from traditional daisy villages in Thai Phien (District
12) and Ha Dong (District 8), residents in Xuan Tho commune enlarged their
lands to grow daisy varieties. Other localities planted lilies, boat orchids
and lisianthuses instead of their usual vegetables to serve the increased
demand ahead of the Tet holiday.
Currently, prices remain unchanged in chrysanthemums, daisies,
gerberas, lisianthuses, carnations and sunflowers, but boat orchid flower
branches have ranged between 300,000 VND (14.1 USD) and 1.5 million VND (70.6
USD).
Lily flowers are being sold around 165,000 VND (7.75 USD),
below the peak price of 240,000 VND (11.3 USD) during the 2014 Lunar New
Year.
Steel production, imports surge in January
Both domestic steel production and imports surged during the
first month of 2015, in anticipation of an increase in demand.
Reports from the Ministry of Industry and Trade showed that
the domestic steel industry, in the first month of the year, produced 280,400
tonnes, up 71 percent year-on-year, while Vietnam Steel Corporation
contributed 120,700 tonnes to the total, a 51 percent increase.
The country also imported 1.1 million tonnes of steel, up 91
percent year-on-year.-
FPT Software targets 1 billion USD in revenue in 2020
FPT Software aims to earn 1 billion USD in revenue, employ
30,000 workers, and join more software outsourcing markets in 2015.
The firm will boost development strategies in main markets,
such as develop solutions and services based on modern technology in the
United States and train 10,000 engineers for the Japanese market, Nguyen
Thanh Lam, General Director of the firm, told a recent conference in Hanoi to
summarise the company's activities in 2014.
Lam pointed out that in the period 2004-2013, FPT Software's
average growth rates in revenue and human resources were 49 percent and 43
percent respectively.
In 2013, its revenue rose to a record 100 million USD, and the
enterprise aimed to earn 130 million USD and have 6,500 employees in the
following year. In fact, its revenue increased by 35 percent to touch 138
million USD in 2014. The firm had more than 7,000 employees, with nearly
1,000 people working in its 19 offices in nine countries.
FPT Software also won bids in important markets such as the
In 2014 alone, the American market brought nearly 40 million
USD for FPT Software, with a growth rate of 39 percent. Its revenue in the
European Union reached nearly 20 million USD, with a significant growth rate
of 117 percent.
Workshop held to raise consumer responsibility of firms
The Republic of Korea (RoK)’s experience in improving businesses’
sense of responsibility to their customers were presented at a workshop in
the central city of Da Nang on February 3 in the context of historically poor
consumer rights protection in Vietnam.
Despite efforts by the Ministry of Industry and Trade’s Vietnam
Competition Authority (VCA) to raise companies’ liability, violations of
consumer rights have increased in their scale and complexity, VCA Director
General Bach Van Mung said, partly attributing the concerns to the rapid
development of the market economy and the country’s rapid integration into
the global economy.
VCA Deputy Director Trinh Anh Tuan said local firms have
remained passive in providing information and resolving consumer complaints
while failing to thoroughly adhere to the Law on Protection of Consumers’
Rights.
Local authorities have not devoted adequate attention to this
issue, leading to a staff shortage in grievances resolution, he added.
Lee Chang Huyn, Executive Director of the Korea Consumer
Agency (KCA)’s Department of Information and Education, said support services
are currently time-consuming and inaccessible to Vietnamese consumers.
He urged the local public to improve their understanding and
actively exercise their rights.
Choi Yoon Seon, head of KCA’s Business Support Team, said
A consumer-centred management system modelled after its RoK
counterpart is essential to promote competitiveness and consumption benefits,
she added.
Various specialties offered at 2015 Spring Fair
A variety of food and fruit specialties from across the nation
will be available at nearly 900 pavilions of the 2015 Spring Fair, to be held
from February 6-16 at the Giang Vo Exhibition and Fair Centre in
More than 500 businesses are expected to showcase their
products at the event, ranging from popular southern fruits such as Hoa Loc
mangrove, green-skin and Nam Roi grapefruits, and Ham Yen orange, to seafood
products like Phu Quoc, Nha Trang and Phan Thiet fish sauce and Tan Cuong
tea.
The event will feature sophisticated handicrafts, timber and
craft village products, and pottery, director of the Vietnam Exhibition Fair
Centre (VEFEC) Nguyen Van Tan announced at a press conference in
Outdoor spaces are reserved for various flowers, such as
apricots, tulips, and orchids, as well as once-valuable food items to be used
as offerings to ancestral kings, including yellow pheasant, Ho chicken, Anh
Vu fish, Dai Hoang banana, and Dinh Lang wine.
The annual Spring Fair provides an opportunity for businesses
to promote trade activities and serve the local shopping demand ahead of the
traditional Lunar New Year (Tet), the biggest holiday in
A Vietnam-Nigeria cashew trade conference was held in
Addressing the event, Chairman of the Vietnam Cashew
Association (Vinacas) Nguyen Duc Thanh addressed the number of difficulties
facing cashew trade between the two countries, including modest quality of
cashew nuts imported from
At the same time, the two countries have yet to design an
effective collaboration mechanism to deal with trade conflicts, he added.
Meanwhile, Chairman of the National Cashew Association of
Nigeria Babatotla Faseru said the Nigerian market pledges to improve its raw
cashew quality in 2015 by organising training courses for farmers and
developing production chains.
According to the Vinacas,
The Vinacas reported that in 2014
Throughout the year, Vietnamese enterprises imported 769,000
tonnes, a 59 percent increase from 2013. As many as 13.4 percent of the total
imports were sourced from from
Deputy Prime Minister Hoang Trung Hai has requested relevant
agencies improve the disbursement and use of Official Development Assistance
(ODA) this year.
Ministries, agencies and localities must carefully implement
ODA projects, including close supervision to manage any difficulties and
prevent misappropriation, he told a meeting between the National Steering
Committee for ODA and Preferential Loans and six development banks in
The Deputy PM, who is also Head of the Committee, asked the
Ministry of Planning and Investment to design an action plan for the
committee which specifies solutions to existing challenges.
According to the ministry, the world supply of ODA is rapidly
declining amid unsustainable global economic recovery and increasing demand
in underdeveloped and politically unstable countries, resulting in intense
competition among ODA recipients.
In 2014,
The total value of ODA commitments was nearly 68 percent of
the 2013 level, due to preparatory weaknesses.
Meeting participants reviewed a decree specifying the
implementation process of construction projects and evaluated the current
status of water supply, waste treatment, site clearance and resettlement
projects.
They also examined possible amendments to the Law on signing,
joining and implementing international treaties, including reducing
unnecessary bureaucracy in signing ODA deals.
Shipbuilding corporation healthier after restructuring
The Shipbuilding Industry Corporation (SBIC) has risen from a
proverbial shipwreck after an active restructuring and is now ready to sail,
stated Chairman of the firm’s member council Nguyen Ngoc Su.
So far, the reform process of the SBIC – formerly known as
Vinashin – is on the right track, having restructured 135 million USD of
foreign debt and 16.61 trillion VND (790.95 million USD) of domestic debt, he
said.
Su revealed that during this year, the SBIC plans to
restructure its remaining debt of about 10 trillion VND (470 million USD).
Currently, the firm has 16,500 employees, a sharp decrease
from 33,184 in 2010, said Su, adding that in 2014 alone, the SBIC laid off
more than 4,000 staff.
As of the outset of this year, the SBIC has completed the
reform of 100 subsidiaries and is striving to reshuffle 152 others, he
declared. According to the restructuring plan for Vinashin, the corporation
will ultimately have one parent company and eight subsidiaries.
Last year, the SBIC equitised two out of the eight member
companies and the remaining six are to complete the process this year.
He noted that foreign investors have become increasingly
interested in shipbuilding companies, opening up opportunities for these
companies to collaborate with foreign partners in finance, technology and
market share.
Vu Anh Minh, Head of the Transport Ministry’s Department for
Enterprise Management, said collaborating with foreign partners is a strong
solution for the SBIC, as fruitful outcomes have resulted from cooperation
between the firm’s subsidiaries and a number of partners, including Samsung,
Damen and Veka.
In 2015, the SBIC is set to generate total revenue of over 7.2
trillion VND (343.8 million USD), including over 4.72 trillion VND from
shipbuilding and 375 billion VND from repair services.
Last year, the SBIC delivered 76 ships, including 33 to
foreign clients.-
Vinatex, Itochu embark on new projects
Two leading textile and garment makers of
Itochu Textile Prominent Asia CEO Shimizou Motonari said
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 US$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.
Meanwhile, Vinatex hopes that close cooperation with Itochu
will help it expand markets, invest in advanced technologies, and
successfully build a comprehensive supply chain in textile and garment for
Up to now, Itochu has been the first non-credit institution
from
Trade surplus with
Exports to
Crude oil accounted for 46% of
Meanwhile,
Firms urged to consider consumers first
Vietnamese businesses have been asked to step up their
responsibility in protecting consumer rights, which was highlighted during a
seminar held on Tuesday in
The seminar provided a forum for sharing the experiences of
domestic and foreign experts in the field of consumer rights protection,
which was co-organised by the Viet Nam Competition Authority under the
Ministry of Industry and Trade and the Korea Consumer Agency.
Speaking at the seminar, Bach Van Mung, head of the authority,
said over the years his agency has carried out various activities to boost
businesses' sense of responsibility about consumer rights protection.
Mung noted that however, this issue is still relatively new for
many businesses. Meanwhile, the rapid development of the market economy and a
quick international integration has made the violation of consumers' rights
more sophisticated.
Trinh Anh Tuan, the deputy head of the Viet Nam Competition
Authority (VCA), told the seminar that the responsibility of businesses to
provide information and handle complaints from consumers remains limited.
Many businesses do not fully grasp the regulations that are part of the Law
on Protection of Consumer's Rights
In addition, the network of authorised agencies, from the
central to the local level, lack preparation when it comes to the execution
of such rights.
Some industry and trade departments at the local level do not
even pay much attention to consumer protection or receive petitions from
consumers. At present, the number of social agencies established to protect
consumer rights is negligible in all cities and provinces.
Lee Hyun Chang, an expert from the Korea Consumer Agency, said
once an incident affects the right of consumers, Vietnamese consumers will
face difficulty in having access to the necessary services and will end up
wasting a lot of time in handling the problem. The
Lee said Vietnamese consumers also need to raise personal
awareness about protecting their rights.
At the workshop, participants also raised concerns about
enterprises in
Phan The Thang, an expert from the VCA, proposed that
businesses need to take the initiative of working with consumer protection
agencies to quickly address any petitions from consumers and develop an ad
hoc unit to consult businesses in this field.
Choi Yoon Seon, from the Korean Consumer Agency, said
She added that
Border trade still faces many barriers
Inadequate infrastructure and supporting services are among
the challenges that
Infrastructure at border gates such as storage areas,
inspection equipment and connecting roads were among the hurdles that must be
addressed to improve cross-border trade, according to Nguyen Van Hoi, deputy
director of the Ministry of Industry and Trade's Department of Mountainous
Area Trade.
At a recent forum with international development partners on
improving border trade, representatives from Lai Chau, Dien Bien, Cao Bang
and Ha Giang provinces said most of the roads serving border gates were
narrow. Mountainous roads and a lack of investment in supermarkets, border
markets, storage centres and parking areas also made it difficult for
businesses.
Suggestions from 25 border provinces made it clear that
Vo Dai Luoc, former chairperson of the Central Institute for
Economic Management, said policies should encourage the private sector to
invest in infrastructure development at border gates.
The Trade Ministry is working on a plan to call for investment
into upgrading border markets, connecting roads and improving the
competitiveness of small and medium enterprises involved in border trade.
Border trade is forecast to reach $50 billion by 2030, with
approximately $22 billion coming from exports.
The country is now home to 28 border EZs, covering a total
area of 600,000ha.
Vietnamese businesses expect drop in interest rates
Many enterprises expect bank loans' interest rates to drop
soon so that they can have better business performance, said Cao Sy Kiem,
chairman of the Viet Nam Association of Small and Medium-sized Enterprises.
Kiem said domestic interest rates on loans for production and
business activities now range between 7 and 10 per cent per year, which are
high, compared with regional levels.
Economic conditions remain tough and the number of companies
ceasing operations and going bankrupt has not declined, although lending
rates had fallen by about 2 percentage points in 2014 from the levels
recorded in 2013.
Late last month, State Bank of Viet Nam (SBV) Governor Nguyen
Van Binh had also instructed credit institutions to further cut annual
interest rates applicable to medium and long-term loans by 1 to 1.5
percentage points. This was done to assist enterprises and as part of the
central bank's monetary policy execution for 2015.
Doan Trong Ly, chairman of the Animal Production Processing
Import and Export JSC (Aprocimex), said only Vietinbank has reduced its
lending rates from 9 per cent to 8.7 per cent, while other banks have made no
moves to lower rates. This firm is still borrowing capital from Agribank at
the rate of 9 to 10 per cent.
In addition to Aprocimex, other members of the association are
also reportedly getting loans at interest rates of between 8.9 per cent and
10 per cent. Some are even managing to get loans at an interest rate of 12
per cent.
"Banks say interest rates have sharply declined, but that
is in comparison with the 18 to 20 per cent levels seen many years ago,"
an official from Aprocimex said on the condition of anonymity.
He added that it will be hard for domestic companies to
compete with foreign firms, which are subject to lending rates of only 2 to 3
per cent.
Some enterprises said medium to long-term lending rates of
between 10.5 and 12 per cent are too high in the context of the inflation
rate hovering roughly around 4 per cent last year, and that it should have
been slashed right at the beginning of this year.
A senior executive at Hanh Phuc Co. Ltd., who wanted to remain
anonymous, also pointed out how hard it is for companies to access long-term
loans at high interest rates. Many have to seek short-term loans, or borrow
money after every three to four months.
SBV Deputy Governor Nguyen Thi Hong has also commented on this
lending practice, suggesting that businesses consider suitable investment for
adapting to the situation.
National Monetary and Financial Policy Advisory Council Member
Tran Hoang Ngan said the amount of loans reserved for small and medium-sized
enterprises is currently significant, especially funds allocated for firms in
the high technology sector.
But banks will not be able to meet businesses' expectations of
a 5 per cent lending rate, based on the overall market conditions at present,
he added.
Economic expert Tran Du Lich said it is unnecessary for banks
to slash deposit rates in order to reduce lending rates this year, following
SBV orders. The current deposit rates of between 5.5 and 6 per cent have
already guaranteed profits for banks.
But the head of a joint stock bank reportedly said it is not
easy for banks either to cut medium to long-term lending rates because
short-term deposits account for up to 85 per cent of all deposits they are
managing.
Orient Commercial Bank Deputy General Director Dinh Duc Quang
said interest rates can be lowered in the coming months provided that
macro-economic stability and good liquidity at banks continues to be
maintained.
Many firms have not dared to borrow money although they are
trusted by banks, as they are cautious about investments in the current
context, he said.
"The important thing now is that authorities from
different sectors should help enterprises stabilise operations and sell
goods," he added.
Kiem urged enterprises to try and cut employee and sales
costs, besides taking advantage of banks' support.
Source: VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
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Thứ Năm, 5 tháng 2, 2015
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