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BUSINESS IN BRIEF 10/3
Sharp rise seen in VN consumer confidence
Consumer confidence rose sharply in February to 142.3 from a
month earlier, an ANZ report says.
In terms of personal finances, 38 per cent of Vietnamese – up
5 percentage points – said their families were "better off"
financially than a year ago compared to 21 per cent (unchanged) who said
theirs were "worse off."
Fifty eight per cent of respondents expected their families to
be better off this time next year, compared to 7 per cent (up 1ppt) who
expected to be worse off.
Over the next 12 months 58 per cent (up 8ppts) said their
country would have "good times" financially while 13 per cent (down
1ppt) expected "bad times."
Viglacera expands granite tile factory in Thai Binh
Viglacera Corporation, one of the leading companies in the
building material industry, on March 6 began the expansion of its
high-quality Granite tiles factory at Tien Hai industrial park in the Mekong
Delta Province of Thai Binh.
The expansion is scheduled to complete in the third quarter,
lifting the total capacity of the factory to 3.5 million tonnes as well as
creating more 150 jobs.
In particular, the new facility will operate in line with the
ISO14000 standards on environment and will be issued a certificate of a
"green factory" in the second quarter of this year.
The factory's tiles products will be sold on the domestic
market and exported to Europe,
VN-EU pact to deliver the goods
Joseph Waldstein Wartenberg, spokesman for the EC's Trade
Office, told the Vietnam News Agency reporter in
It is scheduled to be the last session before the negotiations
are concluded and the agreement signed.
Wartenberg praised
EU is the second largest trade partner of
Vietnamese exports to EU increased by 28 per cent during the
2009-2013 period.
Warternberg said that besides tax and trade barriers,
negotiations would focus on legal issues, competitiveness and other issues
related to intellectual property rights.
To prevent
Other regulations on the labour and investment environment as
well as a legal framework involving civil organisations will also be
negotiated.
Alongside these,
Steel industry seeks more Gov't help
The Viet Nam Steel Association (VSA) has demanded aid for
overcoming difficulties, such as excess supply and growing competition from
cheap imported steel that has hit the industry hard.
Demand for steel in the domestic market has been slumping for
the last few years, exerting considerable pressure on steel companies, the
association said.
While the total annual production capacity for construction
steel has reached 11 million tonnes already, demand for construction steel is
projected at around 6 million tonnes this year, according to the Ministry of
Industry and Trade's estimates.
Steel companies said new investments in steel production
should be given careful consideration and must be based on market demand.
According to Pham Chi Cuong, president of the Viet Nam
Scientific and Technical Association of Metallurgy, given the current excess
of supply over demand, clubbed with the 10 per cent growth rate per year, it
might take a decade to balance supply and demand.
This calculation does not take into account the increase in
imported steel in line with the participation in free trade agreements, which
could boost supply further.
The import of cheap alloy steel containing Boron from
According to VSA, many steel companies have had to cut their
production by up to 60 per cent or will even face closure if they failed in
the competition.
Do Duy Thai, general director of Pomina Steel Corporation, was
quoted by Tin Tuc newspaper as saying that while steel demand is low, the
influx of steel containing Boron has made competition extremely hard for the
domestic industry.
Still, this remains controversial. A representative from the
General Department of Customs said competition should spur Vietnamese firms
to enhance quality and quote more reasonable prices.
Previously, the Ministry of Industry and Trade had forecast
that steel consumption during the first several months of this year will
remain slow. — Steel firms continue to seek aid.
Budget revenue up, oil down
The total budget revenue during the first two months of this
year reflected a year-on-year increase of 17.3 per cent to VND151.87 trillion
(US$7.1 billion), the ministry reported on its website on Thursday.
Domestic revenue touched VND117.5 trillion during the first
two months, a rise of 24.7 per cent against the same period last year.
The growth in the total state budget revenue during these
months was due to recovery in the local economy and growth in the purchasing
power of society, the ministry pointed out.
Budget collections from production and business activities
still saw strong growth, with 29.3 per cent collected from the state-owned
enterprises, 16.1 per cent from foreign-invested enterprises and 20.1 per
cent from private enterprises.
However, the budget collection from crude oil indicated a
year-on-year drop of 20.2 per cent to VND11.6 trillion ($542.1 million).
The ministry also reported that total state budget spending
rose 11.3 per cent year-on-year to VND77.6 trillion ($3.69 billion) during
the first two months of this year.
Vietnamese furniture on display in Singapore
Eight Vietnamese furniture designs chosen among other winners
in the Hoa Mai Furniture Design contest from 2010 to 2013 will be displayed
at the International Furniture Fair of Singapore (IFFS) from March 13-16,
said Nguyen Quoc Khanh, chairman of the Handicrafts and Wood Industry
Association of HCM City (HAWA).
In addition to HAWA representatives and businesses, the young
designers of the winning items will participate in the show, Khanh said.
They will also take part in the Singapore Design Business
Summit 2015, where designers and businesses will present their new projects.
Having Vietnamese furniture designs on display at the fair will help promote
local furniture design industry, which has proven domestic firms can make
products of their own designs instead of producing products following foreign
buyers' designs only.
IFFS is one of
Credit growth sees Tet spike
Credit activities have developed strongly in the first months of
the new year, a positive sign for the economy's recovery, independent market
observers have said.
The economy's credit growth as of February 24 rose by 0.96 per
cent compared with the figure recorded late last year, according a source
from the Ministry of Planning and Investment.
Meanwhile, another source said the credit grew by 1 per cent
by February.
Analysts said these were surprising changes because the
country showed negative credit growth in the first few months of previous
years. For instance, credit growth decreased by 1.67 per cent in February
last year.
Senior economic expert Dr. Vo Tri Thanh explained that many
enterprises had been expecting economic recovery.
A leader of the Viet Nam International Bank (VIB) told Dau Tu
newspaper that many sources had predicted that economic performance would
improve this year, so the bank expected good credit growth.
Both lending and deposit rates are at stable and low levels,
which has also helped credit growth.
Meanwhile, the State Bank of
The central bank's new policy of allowing lenders to use up to
60 per cent of short-term deposits for long- and medium-term loans has also
contributed to credit growth.
Decreased oil prices, low interest rates and economic recovery
are other reasons behind the current growth.
Although the growth is a good sign, analysts warned lenders of
the risks of rapid credit growth.
One of the banks' biggest risks is bad debt. Some banks may
try to increase credit growth to hide their bad debts, analysts have said.
A source from Dau Tu said that PTBank, for example, increased
its credit growth to reduce its bad-debt ratio.
In 2014, the bank's credit increased by 50 per cent while its
bad-debt ratio fell to only one per cent.
Nam A Bank and VPBank also face a similar situation as their
credit growth reached 32 and 35 per cent, respectively, in last year's third
quarter.
Because of this, analysts said credit should not be extended
too quickly, and that lenders should focus their resources on developing
their services.
Tools for assessing business association’s capacity announced
The Vietnam Chamber of Commerce and Industry (VCCI) in
conjunction with the Asia Foundation announced a survey report on good
practices of business associations and tools for assessing a business
association’s capacity at a ceremony in
Accordingly, through interviews with 16 business associations
in 7 provinces and cities nationwide, the survey summed up their good
experience and initiatives, focusing on service provision for members, how to
develop effective revenue generation model, the application of information
and communication technology (ICT), association administration, feedback on
legal policies, and international cooperation.
VCCI Vice Chairman Hoang Van Dung underscored the need to
improve capacity of
The building of tools for assessing a business association’s
capacity aims to help associations to evaluate their own capacity and compare
their operation practices with international standards, said Pham Ngoc Thach
from VCCI’s legal department.
On the occasion, the Asia Foundation announced its funding
programme to assist business associations in improving their performance
through applying good practices and initiatives. The one-year programme is
scheduled to begin in June 2015, with each aid package valuing from
15,000-20,000 USD.
Asia-Pacific consumers have high shopping expectations
Consumers in the Asia-Pacific have high expectations of the
overall shopping experience, a survey by CBRE has found.
The region shared very similar preferences, with all age
groups ranking affordability, cleanliness and security as the main factors.
However, unlike other countries where price was the most
important factor, Vietnamese consumers prioritised security and cleanliness
over price.
Though Vietnamese appreciated a wide range of retailers at a
shopping destination, the presence of specific retailers, department stores
or foreign brands was less important.
Entertainment facilities turned out to be less important than
the "basic" ingredients of price, cleanliness and security. Given
that contemporary shopping centres increasingly focus on food and
entertainment services and events designed to create compelling experiences
for shoppers, this outcome might seem disappointing.
Nevertheless, the survey found that more than 50 percent of
respondents aged between 18 and 34 felt that such facilities are fairly or
very important in their decision.
"The rapid growth of young Vietnamese consumers
highlights that a strong experiential offering consisting of leisure (including
food and beverages) and entertainment will be a powerful tool for shopping
centres to ensure long-term competitiveness and thus the increased value of
retail real estate," Richard Leech, executive director of CBRE Retail
Services, Southeast Asia, said.
Seventy-eight percent of surveyed respondents were willing to
travel up to 30 minutes to get to their preferred shopping centres. "The
completion of metro lines in the next few years will certainly shorten the
travelling time that customers are willing to spend," Duong Dung, head
of CBRE's research and consulting department in
In the next two years 25 percent of respondents expected to
shop less often in a store, with 45-50 percent saying they would shop online
via desktop/laptop or smart phone/tablet more often than they did now.
Surprisingly, an even greater proportion of consumers (69
percent) aged 55-64 thought they would use their smart phone/tablet more
frequently to buy non-food items.
Done in August 2014, CBRE's first ever consumer survey polled
11,000 consumers in 11 major cities across the Asia Pacific, including 1,000
aged 18 to 64 in Hanoi and Ho Chi Minh City.-
The city has been valued for its efforts in administrative
reform and modernisation, business support, and enhancing information
transparency, Loc said at a working session with municipal leaders on ways to
advance the local investment environment and competitiveness on March 5.
According to the municipal People’s Committee, the city’s
provincial competitiveness index was raised 18 spaces to rank 33 rd out of 63
localities nationwide in 2013, while the administrative reform index rose by
two to stand at 5 th place.
Nguyen Ngoc Tuan, Vice Chairman of the Committee, said in a
bid to build a positive image and attract investors, the city will renovate
its administrative system alongside drastic changes in taxes and customs,
among other fields.
The city has been a pioneer in shortening the duration of
business licence granting to three days from five days previously, he noted.
At the same time, Nguyen The Thao, Chairman of the municipal
People’s Committee, said careful consideration is essential in choosing
suitable investors, requiring transparency and comprehensive renovation from
processing investment procedure to supporting investors.
Binh Duong records 415 million USD trade surplus in early 2015
Southern Binh Duong province recorded nearly 2.94 billion USD
in export revenue within 2015 first two months, an annual increase of 14
percent.
According to the municipal Statistics Department, foreign
investment contributed 2.38 billion USD to the sum, a 15.1 percent increase
from 2014.
Major exports reflecting significant growth include woodwork products,
apparel, footwear, phones and electronic devices.
During the same period, the province imported commodities
valued at 2.52 billion USD, a 14.7 percent annual increase and marking 415
million USD of trade surplus.
Also in the January-February period, Binh Duong attracted
nearly 180 million USD in foreign direct investment (FDI). This year, the
province aims for 1 billion USD in FDI attraction.-
Number of new realty companies surges
The number of new property trading firms established during
January and February this year surged 88.8 percent from the same period last
year, according to the General Statistics Office.
The real-estate sector also saw a large number of firms
resuming operations, up 52.8 percent from a year ago.
The property sector was also the second most attractive
destination for foreign direct investment (FDI), reporting an influx of
111.43 million USD, accounting for 9.3 percent of the total FDI into the
country during that period, according to the Foreign Investment Agency.
At the event, which was held to scrutinize a blueprint on the
city’s economic restructuring for 2013-2020, Deputy Director of the HCM City
Institute for Development Studies Tran Anh Tuan said the economic
restructuring scheme has improved the quality of economic growth based on the
effective use of resources, especially capital, labour and land.
The scheme is aligned with a national economic restructuring
project that targets public investment, credit organisations, and State-owned
enterprises.
To Duy Lam, Director of the State Bank’s
Within the city’s industry and trade sector, restructuring
should be focused on stimulating production in tandem with fostering
innovations and human resources, particularly in mechanical manufacturing,
electronics, information technology, chemicals, pharmaceuticals, rubber, and
food processing, experts suggested.
They also recommended developing support industry, raise the
rate of local contents in products, and join the global supply chain.
According to the Department of Industry and Trade, the
technology, processing and manufacturing sectors account for 68.26 percent of
the city’s exports.
About shifting the structure of tourism sector, a
representative from the municipal Department of Tourism talked about plans to
promote competitive tourist products and boost marketing in major markets,
domestically and globally.
Throughout 2015, the sector is continuing building up the
Participants also discussed policies impacting the city’s
economic restructuring in services, industry, agriculture, and land, among
others.
Phu Yen’s filled estuary cleared, opened to fishing boats
The southern central coastal
The estuary has been clogged with silt, preventing nearly 350
ships of local fishermen from sailing while the tuna catching season has
started.
The local authorities have employed a company to open a new
estuary about 80m to the north from the existing Da Dien rivermouth.
The new estuary is nearly 150m wide and 4m deep, allowing
large fishing boats to pass safely.
Phan Thuan, chairman of the local fishermen’s association said
local fishermen normally set out for tuna fishing on the sixth day of the
lunar year, which fell on February 24 this year. He added that the fishermen
were relieved when the new estuary was opened.
Provincial fishermen currently operating at sea informed that
they had a good catch with between 1.5 tonnes to 3 tonnes per boat.
The tuna fishing season usually lasts from the first to the
fourth months in the lunar calendar.
So far this year fishermen in Phu Yen have caught nearly 570
tonnes of tuna.
With such a goal, the participation of the private sector is
necessary to help realize it, according to information posted late last month
on the official portal of the ministry, mt.gov.vn.
According to a three-scenario plan set out by the ministry,
the Southeast Asian country would have an additional 2,300km of highway
following the first scenario, and over 2,700km of highway in the most
optimistic scenario.
The state will have to spend over VND181.2 trillion (US$8.52
billion) building a total of 2,708km of highway from now to 2020 if it
follows the most optimistic scenario, according to the ministry.
The remaining capital, around VND213.3 trillion (US$10
billion), will be invested by various sectors, including the private one, the
ministry said.
Regarding an investment plan to realize the 2020 target, the
ministry said it has so far put into operation 567km of highway.
In addition, around 457km of highway is under construction.
The ministry has also identified three sources of investment
capital for three highway projects, including a section of Mai Dich-Nam Thang
Long in
For investment projects following the previous plan that
should be materialized before 2020, there are investors planning to build
around 508 kilometers under Build-Operate-Transfer or Build-Transfer
mechanisms for seven projects throughout the country, said the ministry.
Thus, by the end of 2015, there will be 700km of highway
completed, 457km under construction, 120 km about to be built, and 508km
seeking investors, with a total length of 1,785km.
Many BOT projects in transport like the Trung Luong-My Thuan
Expressway in the southern region, Bac Giang-Lang Son Highway in the northern
region, and the My Thuan Bridge 2 in the Mekong Delta province of Vinh Long,
have been initiated following a new law paving the way for public-private
partnership (PPP) mechanisms in investing in such projects.
Decree No.15 of the government, regulating investment in the
form of PPP, was issued late last month, opening up more opportunities for
the participation of the private sector in many fields previously capitalized
only by the state like infrastructure, transportation, electricity, water,
education, transport, health, and the environment.
According to experts, the decree is a prerequisite for
infrastructure projects, particularly in the area of transport, to be
developed more strongly with firm commitments from the government.
The VND14.6 trillion (US$686.3 million) Trung Luong-My Thuan
Expressway project that has just been started by a venture of six private
contractors is expected to be completed in 2018.
Construction sector's production value rises
The construction sector's production value reached VND11
trillion ($516.4 million), equivalent to 116 per cent of the same period last
year, according to the Ministry of Construction's report.
The value in January made up for 7.6 per cent of the target
value for the full year, which was set at VND150.4 trillion ($7.06 billion)
or 101 per cent of the value reported in 2014.
Capital shortage delays
The construction of Starlake – also known as the Tay Ho Tay
project – a mega urban area project close to
This was revealed by the Deputy Chairman of Ha Noi People's
Committee, Nguyen Ngoc Tuan.
The municipal People's Committee said the mega project spread
over 207 ha, will play an important role in the city's socio-economic
development.
The committee has also ordered the relevant organisations to
hasten the construction and report on the project's progress before March
ends.
The first phase of the project was started in January 2014,
but the project has been stalled due to slow land clearance.
Checks will be carried on the management, maintenance, power
and fire safety provisions in these buildings, as well as for the
accountability of investors.
Results will be reported to the city and the Department of
Construction before June.
Contrasting export performance in the first two months
The first two months saw contrasting performance among
Vietnam’s major export items, with the textile-clothing and footwear sectors
producing upbeat earnings while other major items- e.g. seafood and coffee-
saw a flat business.
In January-February, despite the long Tet holiday, the apparel
sector still recorded a 17.7 per cent on-year growth in export value to reach
$3.42 billion, with exports to the
Last year Vietnamese firms raked in nearly $10 billion from
exporting textile clothing to the US, producing a 12.6 per cent increase
on-year, whereas most other heavyweight rivals just registered slight growths
or even contractions in export values.
For example, China’s textile garment export value to the US
rose less than 1 per cent, India increased by 6 per cent while Indonesia,
Bangladesh, Pakistan and Cambodia saw negative growths.
This year, Vitas expects the Vietnamese textile garment export
to the US market to surpass $11 billion, a 13 per cent jump compared to last
year.
Besides the apparel industry, the footwear sector has also
registered a two-digit growth in the first two months with the aggregate
export value exceeding $2 billion, signifying a 23 per cent increase on-year.
According to the Vietnam Leather and Footwear Association
(LEFASO), Vietnam’s footwear export to the US is rising quickly and is
forecast to obtain a bigger slice in the market, mostly expanding on the
declining share of Chinese-made footwear items.
These performances are in contrast with those of the two other
major export items, coffee and seafood.
Accordingly, the seafood sector saw a 9.4 per cent decline in
export value falling to $907 million while coffee producers could only ship a
total of 241,000 tonnes at $511 million, recording a 25.3 per cent fall in
volume and 16.4 per cent in value.
In January 2015, total seafood export value to the US market
dropped by nearly 37 per cent to a mere $90 million against January 2014.
The Vietnam Association of Seafood Exporters and Producers
(VASEP) stated the Vietnamese shrimp and Tra fish export items have been
heavily disadvantaged by targeted US anti-dumping tariffs since late 2014, an
effect which is expected to continue exerting pressure this year.
Japan wants to build underground trade center in Saigon subway
station
Japanese businesses are interested in developing a trade
center in the underground part of the under-construction subway system in Ho
Chi Minh City, an envoy from the Japanese Embassy in Vietnam told the city’s
leader on Thursday.
The proposed shopping mall should be built along with the
development of the subway station at Ben Thanh Market in District 1, Katsuro
Nagai, head of the embassy’s Economic Board, told chairman Le Hoang Quan
during a reception at City Hall, according to the municipal website.
Implementing both projects simultaneously will yield the best
economic effectiveness and will not affect the environment, the Japanese
diplomat said, adding Japan hopes to receive support from the city.
The Ben Thanh-Suoi Tien metro system, the first of its kind in
Ho Chi Minh City, requires a total investment of US$2.49 billion, with $2.2
billion from Japanese assistance loans whereas the city’s administration will
cover the remaining $290 million.
The subway line, which has a total length of 19.7km, including
2.6km underground, will run through 14 stations, with three underground ones,
and connect Ben Thanh Market and Suoi Tien Amusement Park in District 9.
Construction of the Ben Thanh-Suoi Tien metro line began in
August 2012.
The megaproject is scheduled for commission in 2020, according
to the envoy.
Nagai said the participation of Japanese investors in the
trade center project will help Vietnam with Japan’s experience in building
underground constructions.
The Japanese diplomat also revealed that a Japanese group, the
Tokyu, is looking to cooperate with Vietnam’s SAMCO to conduct research for
the development of satellite projects surrounding the Suoi Tien Terminal.
Chairman Quan said the city is putting all of its effort into
completing the subway project soon.
As for the proposal to set up an underground trade center and
other projects in the metro terminals, Quan said the city will prioritize
Japanese investors to join them.
According to the subway project’s master plan, an
18,000-square meter area underneath Le Loi Street is zoned for the
construction of commercial facilities.
The metro train will have a maximum speed of 80kph
underground, and 110kph aboveground, allowing passengers to travel from Suoi
Tien to the downtown area in around 29 minutes.
Acronis to penetrate Vietnamese market
Acronis, the world leader in new generation data protection
based in Russia, has announced its expansion plans in Vietnam.
This information was shared by Acronis CEO Serguei Beloussov
within the framework of the conference on ERP (Enterprise Resource Planning)
revolution held in Ho Chi Minh City last week.
Acronis has provided reliable cloud backup for financial
institutions, banks, multinational corporations, SMEs and individual
customers. The company’s customer base includes some of the leading firms
operating in Vietnam, such as Korean tech giants Samsung and LG
In the course of the enterprise, technical administrators or
system experts will interact mainly with Acronis’ products. Meanwhile,
individual customers are required to have a relatively good command of IT
knowledge to use the products. Therefore, common clients only account for 20
per cent of the company’s customer portfolio.
When being asked about Acronis’ market penetration, Serguei
Beloussov said that Kaspersky Lab, the Internet security company has
developed a successful business strategy in Vietnam so his company will
follow in its footsteps.
Under the plan, Acronis will cooperate with Nam Truong Son
Co., Ltd, the sole distributor of Kaspersky software in the country.
He noted that his company would pay attention to all key
customer segments, while Nam Truong Son will develop the approach and support
for each customer group in Vietnam.
The representative of Nam Truong Son revealed that their main
target customers for the distribution of Acronis products are SMEs and
proficient Internet users.
Beloussov also stated, that, “backing up to the cloud requires
a fast and stable internet connection, so our company intends to open more
new data centres in Asia to increase speed besides main data centres based in
the US and Europe.”
Based on the implications of this statement it can be
speculated that Vietnam could be on his list of suitable locations, because
the country is more comfortable than China in terms of internet content
control.
Founded in 2002, Acronis has established itself as a global
provider of leading backup, disaster recovery, and secure file sharing and
file access solutions.
Vingroup to commence construction on Vu Yen Island
Vingroup plans to commence construction of a US$1 billion
ecological complex on the Vu Yen Island in Hai Phong soon.
Vingroup reports its plan to commence construction of a US$1
billion ecological complex on the Vu Yen Island in Hai Phong on March 5.
Photo haiphong.gov.vn
This was announced during a meeting in the northern port city
of Hai Phong between local authorities and Vingroup leaders on March 5.
City Chairman Le Van Thanh spoke about the scale of the
project, which will turn the island into an accommodation, entertainment and
ecological complex.
Thanh said given the prime location, the complex will lure
more tourists to the city.
The Vu Yen Island is spread over a total area of 872 hectares
in the districts of Thuy Nguyen and Hai An and crisscrossed by three
different rivers of Ruot Lon, Bach dang and Cam.As per the design, the island
will be developed into an ecological zone with villas, a 36-hole golf course,
and amusement parks with an investment of VND22,700 billion (more than US$1
billion).
It was also suggested at the meeting that a luxury marina,
dock, five-star hotel and a casino should be added to the construction plan
to attract more visitors.
The Chairman urged all parties to speed up the work of
planning and investment for a complete project to be submitted to the
Ministry of Construction and to the Prime Minister.
Once approved, the project will be started in April and the Vu
Yen Island Golf Course is expected to be finished in 2016.
Microsoft continues to be ICT industry’s best place to work
Microsoft is honourably listed among Vietnam’s 100 best places
to work and is the leading company in IT solution sector in a joint survey
conducted by Anphabe and Nielsen.
Microsoft Vietnam continues its second consecutive year ranked
the top of Technology Companies. At the same time, Microsoft Vietnam was also
voted Top Employer Branding in the Leadership category.
The ‘Vietnam’s 100 Best Places to Work’ survey is the first
and the most professional one in Vietnam specializing in measuring Employer
Branding (EB) attractiveness of large enterprises in the market. The joint
survey is annually conducted by Anphabe – the company specialized in EB
solutions, and Nielsen – a reputable market research company, to provide
thorough measurement and constant update. Apart from delivering career
dynamic trends and EB in Vietnam, the survey also offers detailed results of
Vietnam’s Best Workplaces according to each sector, aggregation for all
industries and each main group.
Not only being honored in Vietnam, in the world’s ranking,
according to different statistics, Microsoft - also known to be the best
environment to work - is continually honored as one of the best working
environment in consecutive years, from 2009 to 2014 in Europe and worldwide,
voted by the Great place to work Institute ...
According to Microsoft partners and employees, Microsoft
deserves this title since there always exists a sustainable trustful culture,
which facilitates opportunities to support the development in a creative
environment. Microsoft has been creating work environment where employees can
contribute their own ideas and share the common passion: creating technology
to change the world.
In addition to be topped in the ICT industry, Microsoft also
occupied the double award – the top in Leadership category in the survey.
Microsoft Vietnam’s Leadership team are proactive, flexible and always head
toward human, particularly, Microsoft leaders’ investment in staff and
facilitating opportunities for them to gain further development. Microsoft
Vietnam leadership team seamlessly strives to increase flexibility,
diversification of career opportunities and develop a roadmap for
self-development training for staff in order to meet the changing needs of
work and properly develop in accordance with the shifting of society.
Soaring credit triggers warning
Bank credits rose sharply in the second month of this year which
would pose a threat for a hot credit growth in the months ahead.
According to recent figures published by the Ministry of
Planning and Investment (MPI), bank credit expanded by 0.96 per cent as of
February 24, 2015, while credit growth was reported to surpass 1 per cent by
the end of the month.
This came unusual as February credit has shown tendencies of
contraction in the previous years. For example, bank credit dropped 1.67 per
cent in February last year.
Earlier, credit reportedly contracted 0.5 per cent in January
this year, matching the patterns set by recent years.
Vo Tri Thanh, deputy director of the Central Institute for
Economic Management under the MPI has attributed February 2015’s positive
credit growth to firms’ high expectations on economic rebound.
Besides, this year’s Lunar New Year (Tet) took place in
February leading to soaring demands for capital.
Another important factor was the low and stable rates of bank
interest.
The State Bank Governor has instructed banks to ease lending
rates by 1-1.5 per cent for medium and long-term loans whereas a new recent
regulation has enabled banks to use as much as 60 per cent of their
short-term capital for medium and long-term lending, as opposed to the
previous rate of 30 per cent.
Rising credit is allegedly a good news within the current
context of continuing economic vulnerabilities, although experts issued a
warning that soaring credit could risk bank operations and drive up banks’
bad debts.
Last year, the market saw scores of banks achieve escalating
credit growths of 30-50 per cent at the same time as claiming the volume of
bad debt rates sank to just 1-2 per cent of their total outstanding loans.
Experts, however, argued these banks’ bad debts could be
doubled or tripled if their credit growth stood only at the banking sector’s
average level of 14 per cent, instead of the achieved 30-50 per cent.
Furthermore, economists also assumed credit growth in the
range of 30-50 per cent could lead to a hot-paced growth threat as it has
happened in the previous years with the resultant repercussions’ impact still
perceptible.
Banks, therefore, should not over-focus on boosting credit
growth, but promoting service segments instead to deepen bank operations and
to reduce risks.
State Bank Governor Nguyen Van Binh has also stressed that the
credit growth being set at 13-15 per cent for this year was not a target to
achieve but the cap for this year’s credit increase.
“Credit must be kept at a certain level to ensure security.
Banks could not develop sustainably if they were to chase after credit growth
while neglecting the development of other banking operations,” Binh said.
Construction bank needs $1.9 billion to restructure operations
Viet Nam Construction Joint Stock Commercial Bank (VNCB) needs
VND40 trillion (US$1.9 billion) to restructure its operations, said Deputy
Governor of the State Bank of Viet Nam Nguyen Phuoc Thanh.
A customer does transactions at a branch of Viet Nam
Construction Joint Stock Commercial Bank (VNCB). The bank needs VND40
trillion (US$1.9 billion) to restructure its operations, said Deputy Governor
of the State Bank of Viet Nam Nguyen Phuoc Thanh. Photo vnexpress.net
Speaking with local media at the ceremony to announce the
change of VNCB's operating model into a one-member limited company whose
equity will be acquired by the SBV on March 5, Thanh said the capital would
come from various sources, including the VNCB's sale of bad debts for the
Vietnam Asset Management Company and the SBV's refinancing loan.
Thanh noted that with the SBV's ownership, people will feel
more secure when transferring their money to the bank. Meanwhile, several
major banks have also promised to support VNCB by sending the bank their
money. Thus, the VNCB will receive the capital it needs for its operations.
The VNCB was established by Trust Bank in May 2013. Trust Bank
was operational for 23 years, with charter capital of VND3 trillion ($142.85
million).
In mid-2014, the SBV appointed new officials to the VNCB after
some former top executives at the bank were arrested for allegedly violating
state regulations.
The VNCB, which is set to be restructured, signed a
comprehensive cooperation agreement with Vietcombank to facilitate growth and
sustainability last August. Its current chairman is Nguyen Van Tuan, who
reportedly resigned from his post as Vietcombank Deputy General Director and
was appointed by the central bank on March 5.
According to the central bank, its takeover of the VNCB will
terminate all statuses, including the rights and interests of existing
shareholders in the construction bank. However, the legal rights and
interests of depositors at the bank will be preserved.
Companies tackle post-Tet labour shortage
Many industrial companies are facing problems recruiting new
workers after large numbers of staff quit over the Tet holidays, some
offering sign-up bonuses and other inducements to attract the necessary
skills on salaries of VND4-5.5m.
Panasonic in Vietnam in Hanoi is looking for 200 female workers,
while Indoac Company needs 100 new workers, and Sumitomo Electric Industries
plans to hire 1,500 female workers. Denso Manufacturing Vietnam Co. has not
said how many workers it needs, but a name, address and phone number is
enough to get a job interview.
In Thai Nguyen Province, Samsung Electronic Vietnam said it is
looking for 10,000 workers on its manufacturing and assembly lines, and has
gone to the local Department of Labour, Invalids and Social Affairs for help
in recruiting.
"It's good that many enterprises are hiring new blood.
The workers can choose the right job for themselves," said a spokesman
for the Hanoi Department of Labour, Invalids and Social Affairs.
Managers in Hanoi's industrial zones say companies are
offering various inducements to attract new workers prepared to stay with the
job. Suncall Technology Vietnam is offering full health insurance and a
pension plan. Sumimoto Heavy Industries said it will increase financial
support for travelling, housing and seniority.
Denso Manufacturing Vietnam Co. is offering assistance for
workers needing help caring for children or elderly relatives.
After Tet, many labourers quit their urban jobs to stay home,
while others want to start a new year with a new job, hoping that it will
fare better that the last. Tran Van Phu, a guard at Thang Long Industrial
Zone in Hanoi, said that after Tet, the number of job-seekers increased by
six times the usual daily rate.
Nguyen Kim Tung from the Huong Moi Career Counseling Centre
said they are busiest during university graduation season and after Tet.
Tung said several companies had cut off bonuses and rewards
this Tet because of economic problems, leading workers to look for more
stable jobs with better companies.
Source :
VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
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Thứ Ba, 10 tháng 3, 2015
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