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BUSINESS IN BRIEF 30/3
Forex market calms down after SBV pledges to stabilise rate
The foreign exchange (forex) market cooled down yesterday
after the State Bank of Viet Nam (SBV) committed to keeping the exchange rate
stable.
All commercial banks had cut their rates by 30 to 40 dong per
US dollar yesterday, compared with the rates fixed earlier this week. File
Photo
All commercial banks had cut their rates by 30 to 40 dong per
US dollar yesterday, compared with the rates fixed earlier this week.
Vietcombank listed the rate at VND21,465/21,525, down 40 dong.
BIDV and Vietinbank also cut the rate by 35 dong to
VND21,465/21,525 and VND21,475/21,535.
Eximbank and ACB also adjusted their rates down by 30 dong to
VND921,450/21,530.
The inter-bank exchange rate yesterday remained at VND21,458,
while the rate quoted at the central bank's transaction offices was also kept
stable at VND21,350/21,600.
SBV Deputy Governor Nguyen Thi Hong said the central bank had
no plans to adjust the exchange rate for now, adding that there was no need
to worry about recent developments in the forex market.
Hong reiterated that forex rates would be adjusted by no more than
2 per cent this year as part of a pledge made by Governor Nguyen Van Binh in
December last year.
In January, the SBV had devalued the dong by 1 per cent from
VND21,246 to VND21,458 per US dollar, the first exchange rate adjustment
since June 2013.
Though the US dollar recently rose against the dong, it was
still far below the cap of VND21,673 per dollar set by the central bank and
the currency market was still seeing normal operations, Hong said, adding
that the central bank had not felt the need so far to sell the greenback and
intervene in the market.
Hong attributed the recent increase in the forex rates in the
domestic market mainly to psychological factors, following the appreciation
of the greenback in the world market.
For the past week, as the forex rate increased roughly VND120
against the previous weeks, some suggested that the central bank should
further depreciate the dong to back domestic goods and support exports.
They said that the rise in value of the greenback in the
global market had driven a series of central banks around the world to
devalue their currency.
However, Hong said, the greenback had only risen strongly
against key currencies, such as the euro, British pound and Canadian dollar,
with whom
She said keeping the exchange rate unchanged at the moment was
more beneficial than devaluing the dong, because 90 per cent of the material
for
Therefore an increase in the value of the US dollar would hurt
exporters since input costs would escalate, especially as demand for imported
materials was rising, Hong explained.
She said despite posting a trade deficit of US$1.75 billion
during the first three months of 2015, the Vietnamese economy still enjoyed a
balance of payments surplus of $2.8 billion, owing to funds from remittances
and foreign investment capital.
VN-Index set for rough week
The VN-Index may continue to fall this week as investors are
losing patience and continue to sell to escape from the market, securities
companies forecast.
According to Saigon Commercial Bank Securities JSC (SBS), the
VN-Index may decline to a range of between 520 to 530 points this week.
In addition, Bao Viet Securities JSC (BVSC) said that foreign
investors would most likely remain net sellers this week, but their total net
selling value could decline, and the improving large-cap stocks, especially
bank codes, would be enough to balance foreign investors' selling.
Last week, foreign investors sold stocks worth VND710.89 billion
(US$33.8 million), mostly blue chips, on the national stock market, creating
heavy pressure on both bourses and causing them to decline throughout the
week.
On the HCM City Stock Exchange (HOSE), foreign investors were
net sellers five sessions in a row, recording a total net selling value of
VND613.23 billion (US$29.2 million), 96 times the value recorded the previous
week.
Gas blue chips were the most sold large-cap stocks, including
the PetroVietnam Drilling & Well Service Corporation (PVD) and PetroVietnam
Gas JSC (GAS). These two stocks had a rough declining week and were the major
factors that dragged the market down.
However, the increase in the world oil price to $50 per barrel
did not have any effect on the national market as the government kept the
domestic price unchanged.
As many as 3.2 million PVD shares worth VND149 billion ($7
million) and 1.5 million GAS shares worth VND106.4 billion ($5 million) were
sold in the market.
In addition to PVD and GAS, shares of other blue chips,
including Saigon Securities Incorporation (SSI) and Hoang Anh Gia Lai JSC
(HAG), were also sold in large volumes of 2.5 million shares worth VND52.7
billion ($2.5 million) and 3.2 million shares VND68.7 billion ($3.27
million), respectively.
Also, on the Ha Noi Stock Exchange (HNX) foreign investors
were net sellers in five consecutive sessions, with a total net selling value
of VND97.66 billion ($4.65 million).
Gas codes were the most sold stocks on the market, with
PetroVietnam Technical Service JSC (PVS) having 2.23 million shares sold,
worth VND52.7 billion ($2.5 million).
Furthermore, the total market liquidity recorded a sharp drop
last week as the HOSE saw 454.5 million shares being traded, a decrease of
17.3 per cent. Its total trading value also dropped 13.8 per cent to VND8.5
trillion ($404.7 million). In addition, the trading volume of the HNX
decreased 6.5 per cent to 283.8 million shares worth VND2.77 trillion ($131.9
million), a decrease of 11.6 per cent.
The stock that gained the most market value in the southern
market was Angiang Fisheries Import & Export JSC (AGF), posting a rise of
27.78 per cent to stand at VND23,000 per share.
In the northern market, the top gainer was HCM City Textbook
Printing JSC (SAP), recording a 23.46 per cent gain in market value to close
at VND10,000 per share.
Upbeat securities firms to increase their charter capital
Many securities companies have recently announced plans to
increase their charter capital, confident that the domestic stock market
still has a lot of room for expansion in 2015.
According to many brokerages, stock indices on both exchanges
in the country registered lower growth rates than expected by market
participants and this lays a good foundation for stronger development this
year.
The most impressive plan has come from KIS Vietnam Securities
Corporation, which plans to raise its charter capital from the current
VND263.6 billion (US$12.3 million) to VND1.113 trillion ($52 million) through
a private share issue.
The Korean-invested company explained that it wanted to expand
brokerage services to cover derivative products, which under the current
regulation requires charter capital of securities companies be from VND900
billion ($42.1 million).
After the capital increase, KIS Vietnam will advance into the
list of 10 largest securities companies in
Early this week, the Vietnam Investment Securities Co (IVS)
also approved a plan to raise its capital from VND161 billion ($7.5 million)
to VND350 billion ($16.4 million) this year. In a document sent to
shareholders, the company expressed confidence in the market outlook.
It said the market had room for development given the probable
reduced inflow as a result of Circular 36, which limits lending for stock
investments by commercial banks to 5 per cent of their (the banks') charter
capital.
"Securities are a more attractive investment option at
present compared to gold, foreign currency or real estate," it said.
However, the company also said it might not be easy to earn
quick profits, and authorities needed to issue additional regulations to
facilitate cash inflows, as well as introduce more investment products.
IB Securities Co (VIX) announced it would issue an additional
30 million shares to double its charter capital from VND300 billion ($14
million) to VND609 billion ($28.5 million). The shares would be offered to
existing shareholders and its employees, the company said.
According to the company, stable economic development and
accelerated equitisation of State-owned enterprises as well as their plans to
divest from non-core businesses this year will release more quality products
into the market, attracting both domestic and foreign investors.
Even a small brokerage firm like Royal Securities Corporation
has announced its plan to hike its capital from VND35 billion ($1.6 million)
to VND135 billion ($6.3 million). It plans to sell 10 million shares to shareholders
at VND10,000 a share.
Telephone exports hit $5.45b by mid-March
Telephone exports fetched US$5.45 billion by mid-March or
accounted for 19 per cent of the nation's total export value, the General
Department of Customs said.
This positive result enabled telephone exports to overtake
garments and textiles as the largest export commodity during the reviewed
period, the department said.
Can Tho works to improve local competitiveness
The Viet Nam Chamber of Commerce and Industry's branch in the
Mekong Delta city of
The programmes are designed to provide training services for
local businesses to build their human resource capacity, connect them with
foreign investors and potential partners, and strengthen performance of
relevant associations to ensure benefits for local businesses, especially
small and medium-sized enterprises.
Local businesses were also advised to devise measures to lower
their product prices by using alternative domestic sources, reducing reliance
on imported materials, and cutting down on intermediaries by working directly
with clients and foreign partners.
Cambodian province seeks investment from Binh Phuoc to build
bridge
Binh Phuoc will consider investing in the construction of a
large bridge on Highway 7 connecting Cambodian Kratie province with the
locality, as heard during a working session between top provincial officials
on March 25.
During the function, Kratie’s Deputy Governor Huu Sidem
thanked Binh Phuoc for its assistance in the provincial
He reported the Cambodian Interior Ministry’s decision to
organise a ceremony marking the signing of a cooperation memorandum of
understanding between the two provinces.
Huu Sidem invited Binh Phuoc leaders to visit his province on
the occasion of the local traditional New Year Choi Chnam Thmay.
For his part, Nguyen Van Tram, Chairman of Binh Phuoc People’s
Committee, hoped to boost socio-economic affiliation and urged the official
signing to facilitate bilateral trade and border security.
He said his province will examine the bridge’s scale and
design before deciding on its investment.
Construction begins on fibre and garment complex in Quang Nam
The Vietnam Textile Group (Vinatex) broke ground on a
fibre-weaving-dyeing and garment complex in Que Son district in the central
province of Quang
At the ground-breaking ceremony, Deputy Prime Minister Nguyen
Xuan Phuc asked Vinatex to coordinate with the locality to tackle
compensation and site clearance and ensure environmental hygiene.
The 10-hectare complex will cost over 1.2 trillion VND (55.8 million
USD) and consist of a fibre plant with an annual capacity of 6,500 tonnes, a
6,000-tonne dyeing plant, a garment plant and waste water treatment
facilities with a designed capacity of 5,000 cubic metres per day.
The complex is an intensive investment project in the central
region in preparation for the Trans-Pacific Partnership Agreement (TPP). It
will provide material for boosting the textile and garment industry in Quang
Once operations commence in the third quarter of 2017, the
complex will create jobs for 2,000 local labourers.
According to the Vietnam Textile and Apparel Association,
Vietnam has 250 industrial parks nationwide, but only Nam Dinh, Hung Yen and
Binh Thuan province have areas reserves for developing the
fibre-weaving-dying industry.-
Decree brings change to securities market
Vu Quang Viet, director of SSC's Legal Affairs Department,
said that by March 20, the national stock market had total capitalisation of
VND1.2 trillion (US$57.1 million), representing 30.6% of
Over the past two and a half years, the national stock market
had recorded an average trading value of VND3.16 trillion (US$150.4 million)
each session, with 679 stocks listed on the market with total face value of
VND441 billion (US$21 million), he said.
Decree 58 also helped securities companies restructure to
improve their financial management, internal administration and risk
management, he added.
In an attempt to improve the Decree, the SSC has collected
ideas and opinions from Government agencies, investors and companies involved
in the securities business.
Viet said that the new Decree would complete the legal
framework for the securities market to match international rules, solve
market problems for individuals and organisations, attract foreign investment
and create a fair and transparent securities environment.
It would focus on several major issues, including private
placement, in which shares were sold to a small number of selected investors
without public announcement, and public placement, in which shares are made
available for sale on the public market, he said.
According to the amended decree, private placements are
intended to raise capital, reduce debts or exchange stakes in other companies
(for public limited companies), or to transform into public limited companies
(for securities companies).
Any company that wants to issue private placement has to
complete the sale within 90 days of the SSC receiving all of its registration
papers.
If a company organises a shareholder meeting before a private
placement is completed, the board of directors will have to ask for
permission from shareholders to continue.
The board of directors can only change plans on the use of
capital if they are approved by shareholders and comply with company
regulations, and has to publish the amended plans to investors within 10
days.
The company also has to report the total capital raised from
issuing private placements at shareholder meetings, and have it reviewed and
confirmed by auditors.
On the other hand, individuals and organisations cannot issue
public placements if the organisation is unqualified to issue a public
placement or the organisation is selling shares publicly to become a company.
However, there are some exceptions for an organisation to sell
shares, including transforming into a securities company, or selling the
state's stake from a state-owned company to the public.
Public placements must be run by securities issuing companies,
except for state-owned organisations selling their shares to non-state
investors, or big shareholders selling their stakes in public limited
companies, or securities firms selling the warrants or rights to the market.
Israel to invest in Kien Giang
At a recent meeting with Kien Giang People’s Committee
leaders, the Israeli Ambassador to
Provincial People’s Committee Vice Chairman Nguyen Thanh Nghi
expressed his hope that
Ambassador Shahar also affirmed she would continue supporting
expanded cooperation between
Healthy demand in food industry drives additive market
UBM Asia announced on March 24 that it is organising a food
additive trade fair – Fi-Vietnam 2015 – in
In making the announcement, UBM Asia’s director said the firm
recently conducted a study that projected significant growth in
Food additives are substances used for enhancing the taste,
colour and texture of food products. They also prevent microbial growth and
increase the shelf life of food products.
The event is expected to attract more than 150 foreign
manufacturers of food additives and other parties interested in the industry.
Dai-ichi Life named Best Life Insurance Company
The Dai-ichi Life Insurance Company of Vietnam Ltd has been
named the – Best Life Insurance Company in
The award is given annually to recognize a progressive company
that shows leadership in the industry in a number of areas, including
financial results, operational efficiency and effectiveness, and a commitment
to improving relationships with clients.
The company was established in January of 2007 as a
wholly-owned Japanese firm doing business in
In 2014, its new business premium revenues reached VND965
billion (US$45 million), up 36% on-year, total premium income VND2.55
trillion (US$120 million), up 37%. Its pre-tax profit was estimated at VND248
billion (US$11.6 million), up 23%.
Businesses cope with information security risks
The Security World 2015 Conference and Expo was held in
Themed “Strengthening Information to Protect Privacy &
Enable Trust in Today’s Risk Landscape”, the event was considered as a good
venue for government agencies, organizations and businesses to meet, seek
cooperation opportunities and exchange information and experience about
updated trends as well as the latest technology solutions from which they can
build strategies to effectively invest in information security.
Participants provided in-depth discussions to help government
agencies, organizations, businesses update technology trends, approach
effective information security and risk management solutions for businesses’
sustainable development and ensure the high level of security and safety.
They discussed measures to cope with information security
threats and put forward key initiatives that help businesses keep pace with
constantly evolving threats and security requirements in today’s
interconnected business ecosystem.
Leading experts and representatives from government agencies
and businesses also shed light on intelligent cyber security, security
principal, early-warning system, security threats: strategies and techniques.
Besides the conference, an exhibition also took place to
showcase modern technology solutions in Network Security, Cloud Security, Big
Data Encryption, Virtualization, etc.,. Many leading IT firms and security
solution providers participated in the event, such as Cisco, Samsung, Paolo
Alto Networks, Trend Micro, Parasoft, Jupiter Network, and HP.
According to a recent report by Kaspersky Security,
Microsoft also estimates that around 80% computers in
The Vietnam Information Safety Association (VNISA) reports
that most of agencies and organizations in
These figures have raised big concerns and also put a
significant pressure on leaders and IT experts to find solutions to deal with
the insecure environment nowadays.
The Vietnam Food Association (VFA) has revealed that by March
19, the country had earned US$241.334 million from exporting around 536,570
tonnes of rice.
The current price of rice stands at US$470.5 a tonne, a drop
of 1.36% compared to the same period last year.
Notably, Gana and
In the Mekong Delta, dried normal rice paddy is being sold at
VND5,150-5,250/kg while long grain rice paddy at VND5,400-5,500/kg.
Rice exports see difficulties due to oversupply
The Vietnam Food Association (VFA) on March 24 said that rice
exports would continue facing difficulties because of surplus supply sources
in rice export nations and
That was revealed at a seminar on rice and seafood export
conditions held by the Export Import Department under the Ministry of
Industry and Trade in the Mekong Delta city of
According to VFA’s statistics, businesses have shipped 537,000
tons of rice from January 1 until March 19 bringing US$237 million, down
41.36 percent in volume and 40.52 percent in value over the same period last
year.
Average export price was US$440.18 per ton in FOB (Free on
Board) term, up US$6.21 over a year ago.
Total rice volume in export contracts was up 7 percent to
reach 1.94 million tons as of March 19. Of these, 1.4 million tons have yet
to be delivered.
Besides, businesses still have 1.4 million tons in stock
waiting for exports.
The export value of other farm produce and seafood products
was estimated at US$4.2 billion in the first quarter this year, a year on
year reduction of 15.8 percent. This group of commodities accounts for 11.7
percent of total export items.
CEC continues grilling Transport Ministry over Long Thanh
airport project
The Central Economic Commission (CEC) of the Communist Party
of Vietnam yesterday continued grilling the Ministry of Transport over Long
Thanh International Project that is planned to replace overloading
At the rehearsal meeting, commission head Vuong Dinh Hue
proposed the ministry and relevant agencies to clarify some matters related
to the project such as the precision of the ministry’s data on Tan Son Nhat
International Airport, Long Thanh’s competitive ability in the role of a
transit airport, the impact of its construction on public debts, runway
design, and site clearance and capital reclaiming measures.
Transport Minister Dinh La Thang affirmed the accuracy of the
ministry’s data related to
Mr. Thang said that
According to the Government’s latest report on the Long Thanh
project, total investment fund of
Capital, tax crunch restricts rice, seafood export
The crunch in lending capital and taxes is a major contributor
to the sharp export decline in terms of both volume and value, stated the Ministry
of Industry and Trade (MoIT) at a meeting in the city of
According to the Export and Import Department under the MoIT,
as of March 19 this year,
The country shipped 1.28 billion USD worth of seafood from the
beginning of the year, representing a decrease of 19.8 percent from the same
period in 2014, according to the department.
In order to counter the declining trend, the department asked
provinces to effectively implement credit and tax policies including
rescheduling and restructuring the debts of households, farm owners, and
cooperatives.
Provinces have been asked to strictly monitor the quality of
farm produce and seafood, effectively manage and plan material areas and
boost trade promotion in traditional markets like the United States, the
European Union, and Japan.
Can Tho calls for Japanese investment in seven new projects
The Mekong Delta city of Can Tho has called on Japanese
investors to invest in seven new local projects in agricultural machine
manufacturing, high-tech agricultural areas, and fishery centres.
The city made the request during a working session between
municipal leaders and representatives from Tokyo University and two Japanese
securities and financial groups on March 25.
The projects include the construction of a factory for
manufacturing and assembling agricultural machines, valued at 30 million USD,
and the development of two agricultural areas applying high technology worth
33.9 million USD.
Can Tho also called for investment in another high-tech
farming area in Co Do district with a total capital of 10 million USD for
producing and multiplying rice varieties.
The Mekong Delta fishery centre project is estimated to cost
400 million USD, and another project to build infrastructure for O Mon
industrial park needs 130 million USD in investment.
The Japanese investors were also encouraged to pour capital
into a five-star hotel and conference hall worth 45.5 million USD.
According to Assistant Professor Dr. Kawashima from Tokyo
University’s Faculty of Agriculture, Japanese investors are shifting their
investments to ASEAN countries from China with Vietnam among its prioritised
markets.
He pledged to help Can Tho introduce the projects to more
Japanese investors.
GDP likely to grow by 5.5-5.6 percent in Q1: official
Vietnam’s gross domestic product (GDP) is likely to expand by
5.5-5.6 percent in the first quarter, much higher than growth seen in same
period last year, Deputy Minister of Planning and Investment Dao Quang Thu
forecast, though the General Statistics Office’s official figure has not been
released.
The 2015 GDP growth target of 6.2 percent will be achieved if
such a trend is maintained throughout the year, Thu said at a meeting
reviewing the socio-economic context in Hanoi on March 25.
The March industrial production index rose by 25.8 percent
from the previous month and by 9.1 percent from a year earlier, according to
the Ministry of Industry and Trade.
A number of products recorded substantial growth from Q1 of
2014 including mobile phones (up by over 100 percent), automobiles (52.6
percent) and footwear (up 16.3 percent).
Meanwhile, export revenue in Q1 reached 35.7 billion USD,
climbing 6.9 percent from 2014. Some commodities saw observable shipment
increases, including telephones & components (21.9 percent) and textiles
& garments (7.8 percent).
The retail sales of consumer goods and services during
January-March increased by nearly 10 percent annually.
At the meeting, some voiced concerns over foreign investment
attraction and capital disbursement.
As of March 20, Vietnam had licensed 267 foreign investment
projects worth more than 1.2 billion USD, nearly doubling the number of
projects but dropping 40.6 percent in registered capital from a year before.
Some 621 million USD were added to 102 existing projects, down
40.6 percent in value and up 2.5 times in the number of projects from Q1 in
2014. New and additional registered capital totalled more than 1.8 billion
USD, tumbling 45 percent.
Current capital disbursement is relatively low, said a
representative of the Finance Ministry, elaborating that only 26 trillion VND
(1.23 billion USD) of investment capital—or 15 percent of this year’s
target—was disbursed between January and March.
Dang Xuan Quang, Deputy Director of the Ministry of Planning
and Investment’s Foreign Investment Agency, said the three-month figures are
not accurate representations of the entire year, adding that he is optimistic
about foreign direct investment attraction in 2015.
Vietnam approves tax treaty with Iran
The Government recently approved a mutual tax avoidance
agreement between Vietnam and Iran.
The day the pact will come into effect has yet to be determined.
As of July 15, 2014, Vietnam had tax treaties with 69
countries and territories across the globe.
Accordingly, residents of contracting nations are taxed at a
reduced rate or are exempt from Vietnamese taxes on income or gains they
receive from Vietnamese sources. These reduced rates and exemptions vary
among countries and specific items of income. Meanwhile, Vietnamese residents
or citizens are taxed at a lower rate or are exempt from foreign taxes on
income or gains they receive from foreign countries.
The treaties also form legal frameworks facilitating
cooperation among taxation agencies of contracting countries to prevent tax
evasion.
Vietnam to set stronger tone for SOEs restructuring
Prime Minister Nguyen Tan Dung has requested drastic actions
to restructure State-owned enterprises (SOEs), with a focus on equitisation
and withdrawal of State capital from non-core business lines.
As of March 24, 289 SOEs on the waiting list of equitisation
already established Steering Boards in charge of the process. Up to 207 of
them were evaluating their assets while 81 others planned to announce their
worth.
Nationwide, as much as nearly 7 trillion VND (333 million USD)
invested in non-core business lines has been recollected, mostly in the
military-run telecom Viettel, the Vietnam National Oil and Gas Group, the
Vietnam Posts and Telecommunications, the Electricity of Vietnam, the State
Capital and Investment Corporation.
In January-March, 18 SOEs auctioned 100 million shares and
earned 805 billion VND (38.3 million USD).
During a working session with the Steering Board for SOE
Renovation and Development in Hanoi on March 26, the Government chief asked
for perfecting SOEs restructuring plans and clearing barriers to the
reshuffle, which he said, is running slowly.
Restructuring SOEs is a focal political task of the
Government, therefore, it requires unanimous consent and concerted efforts by
the entire political system, agencies, localities and business community, he
noted.
Directing tasks for the coming time, he requested SOEs to
constantly overhaul their production and governance while going through open
and transparent procedures to be listed on the stock market.
Concluding the event, he ordered stepping up supervision of
ministries, agencies, localities, and SOEs over the restructuring process.
PM: Modern public administration crucial to business climate
Prime Minister Nguyen Tan Dung has demanded the use of technological
advances to modernise public administration through e-government systems,
considering it essential for a better business climate.
Vietnam needs to make more of an effort in this aspect, the PM
told a teleconference in Hanoi on March 26 after noting Vietnam ranked 78th
of 189 economies on the ease of conducting business in the World Bank
rankings, which he called a disappointing result.
He asked ministries, agencies and localities to determine
processing time limits for their units, adding that the outcomes of specific
reforms will be announced to the public during the Government’s June meeting.
Regarding institutional reform, the leader requested the
fine-tuning of laws, policies, and socialist-oriented market economy
mechanisms to create an improved legal framework.
A market economy must follow the principles of competition and
operate in a fair, open and transparent manner, encompassing different
economic sectors with different forms of ownership, the PM noted, making it
clear that the Vietnamese economy is to be managed through tools, policies
and resources in a way that ensures social progress and fairness.
When issuing legal documents, localities should evaluate its
feasibility and ensure it supports human rights and the rights to freedom and
democracy in line with the Constitution, he reminded.
As of January 1, 2015, the duration for processing corporate
tax payment was cut by 370 hours from the initial 872 hours, reported the
Ministry of Home Affairs.
Customs departments nationwide have used the Vietnam Automated
Cargo and Port Consolidated System and the Vietnam Customs Information System
(VNACCS/VCIS) since November 2014, which has reduced the time for imports and
exports custom clearance by 7.6 hours and 9.6 hours, respectively.
Vietnam is in the process of negotiating a protocol on the
legal framework for the application of the ASEAN One-Stop Shop customs
mechanisms and preparing to expand the ASEAN single window mechanism towards
the birth of the ASEAN Community in early 2016.
The ministry is also working on a range of legal regulations
for renewed policies for civil services and its staff; several new mechanisms
are being piloted in the recruitment of public servants and managers and the
generation of job title standards.
Upgraded oil exploration facilities inaugurated
A ceremony was held on March 26 in Binh Son district, Central
Quang Ngai province by the Dung Quat Shipyard Company (DQS) to inaugurate
upgraded versions of two oil exploration facilities.
The vessels include the floating storage and offloading unit
“FSO PVN Dai Hung Queen” and the oil rig “FPU Dai Hung – 01”, worth a
combined 85 million USD.
The two were handed over to the Petrolimex Transportation and
the PetroVietnam Exploration Production Corporation (PVEP – POC), respectively.
The upgrades will serve the oil exploration and production in
Dai Hung oilfield within the continental shelf of Vietnam, contributing to
ensuring national energy security and boosting socio-economic development,
said Tran Minh Ngoc, Chairman of the DQS Member Council.
The FSO PVN Dai Hung Queen, weighing 105,000 tonnes and with a
top speed of 26 kilometres per hour, is equipped with advanced facilities and
technologies. The FPU Dai Hung-01 rig is 108.2 metres long and 67.36 metres
wide.
At the ceremony, Deputy Prime Minister Hoang Trung Hai
instructed t he Vietnam National Oil and Gas Group (also known as the
PetroVietnam) to continue restructuring the DQS towards improving its
operations and developing its ship building industry.
The PetroVietnam was also called on to implement projects to
construct and upgrade additional modern vessels, rigs, and floating units to
reduce the reliance on importing high-tech services.
The inauguration and delivery of the two vessels marked the
DQS’s first major outputs since 2010 when the company separated from the
Vietnam Shipbuilding Corporation (Vinashin) and merged with the PetroVietnam.
Q1 agro-forestry-fishery export value down from last year
Vietnam’s export revenue from agro-forestry-fishery products
in the first three months of this year has been estimated at 6.13 billion
USD, a 13.2 percent decrease from the figure recorded in the same period
during 2014.
Of the total figure, farm produce exports were valued at 2.92
billion USD , down 15.1 percent; seafood exports generated 1.27 billion USD ,
an annual decline of 20.6 percent; and forestry product exports brought home
1.5 billion USD, a drop of 0.4 percent, according to the Ministry of
Agriculture and Rural Development.
Tea, cashew nut and pepper all saw decreases in export volume
but increases in value. During the three months, Vietnam exported 24,000
tonnes of tea, 51,000 tonnes of cashew nut and 38,000 tonnes of pepper for 38
million USD, 370 million USD and 342 million USD, respectively.
Coffee and rice exports recorded drops of both volume and
value during the reviewed period.
The country shipped abroad 350,000 tonnes of coffee worth 734
million USD in the first three months, drops of 41.4 percent in volume and
37.3 percent in value. Meanwhile, 1.01 million tonnes of rice were sold,
earning 440 million USD, down 28.1 percent in volume and 32 percent in annual
value.
Despite reducing its orders from Vietnam , China is still
Vietnam ’s largest rice importer with nearly 21 percent of the market share.
Local food industry inks promotion agreement
Ho Chi Minh City's Food and Foodstuff Association has signed
an agreement with exhibition organiser UBM Asia to promote its activities and
help its member companies find partners.
Ly Kim Chi, Chairwoman of the Association, said the agreement
is very important since food and foodstuff producers in Vietnam find it
difficult to source ingredients locally because of a dearth of producers, and
UBM can put them on to foreign suppliers of new food spices and additives.
UBM is highly experienced in the industry and had links with
many international food ingredient producers, she said.
From May 20 to 22 this year it will organise Food Ingredients
(Fi) Vietnam 2015 in HCM City with an estimated 150 local, regional and international
ingredient suppliers and 4,000 food and beverage professionals attending.
Central bank says to keep forex rate stable
The State Bank of Vietnam (SBV) will not adjust the Vietnamese
dong-US dollar exchange rate despite an increase in the price of USD on the
world market, SBV Deputy Governor Nguyen Thi Hong said to the Vietnam News
Agency on March 25.
The decision was made after thorough considerations of
import-export and foreign debt, she stated.
She added that based on the domestic and international
currency and macro-economic developments, maintaining the current exchange
rate will be more profitable than adjusting the rate.
According to her, the foreign exchange market in Vietnam
remains stable with transactions worth around 1.1-1.2 billion USD per day.
On the afternoon of March 25, the exchange rate remained below
21,500 VND to 1 USD, well below the ceiling rate of 21,673 VND as regulated
by the SBV.
The central bank pledged to continue regulating monetary
policy tools and implementing other necessary measures to stabilise the
foreign exchange market.
Finance ministry okays more tax, customs red tape cuts
The Ministry of Finance has issued decisions approving the
removal or simplification of various administrative procedures in taxation
and customs.
Accordingly, six of the 46 procedures will be removed – one in
tax and five in customs – while the remaining 40 administrative formalities
will be simplified, with seven in tax and 33 in customs.
The decision comes in response to the government's Decision
No.19/NQ-CP, dated March 12, 2015, on major tasks and solutions for improving
the business environment and national competitiveness.
Under the decision, the tax payment time will be shortened to
less than 121.5 hours per year, while the time to complete premium payments
for social insurance will be less than 49.5 hours per year.
The percentage of local enterprises conducting electronic tax
declarations will be over 95 percent, and the rate of electronic filings for
corporate tax payment will be at least 90 percent.
The additional reductions and simplification are expected to
create more favourable conditions for people and enterprises completing tax
and customs administrative procedures.
They will also contribute to facilitating the effective
implementation of the ministry's envisaged solutions to reduce the processing
time for tax and customs procedures to the average level of the ASEAN-6
countries by the end of 2015.
Finance Minister Dinh Tien Dung said that fulfilling the
government's instruction would require preparation from all sectors.
He said the finance sector was implementing solutions related
to the ASEAN Economic Community (AEC) integration and pledged to meet
integration requirements when Vietnam takes part in the AEC in late 2015.
According to the business community, tax and customs were
among the first sectors to achieve significant reforms of administrative
procedures last year. Under the ministry's reforms, the tax payment time last
year was shortened from 537 hours per year to 247 hours (exclusive premium
payment time). The tax payment time is currently 167 hours, as per the
amended Law on Taxes, which came into effect on January 1, 2015.
The percentage of local enterprises conducting electronic tax
declarations last year also increased from 65 percent to 95 percent.
Vietnam coffee favoured in Singapore
Vietnamese coffee accounted for one-fourth of Singapore’s
total coffee import volume in 2014, marking its strong foothold in the
regional market.
According to Vietnamese Trade Counsellor in Singapore Nguyen
Viet Chi, annual export revenue of Vietnamese coffee and tea to Singapore
grew an average of 68 percent per year from 2012 to 2014. In 2014 alone,
revenue reached 102 million USD.
Singapore is a gateway to several potential markets for
Vietnam, she said.
After 8 years of operating in Singapore, popular Vietnamese
trademark Trung Nguyen Coffee has gained local favour for its good quality
reputation.
ANZ: Vietnamese economy is recovering
Vietnam’s economy has bottomed out and is now showing signs of
recovery with stable foreign direct investment (FDI) capital and increased
trade surpluses, said ANZ Chief Economist for South Asia, the ASEAN &
Pacific Glenn Maguire.
The expert made the remark as the Australia-New Zealand
Banking Group (ANZ) released its report on the Vietnamese Consumer Confidence
Index for March.
According to the report, the index has decreased slightly to
141.5 in March, down 0.8 points from February. Despite the reduction, March’s
index is still above the 2014 average of 134.5.
Of the respondents, 58 percent (the same level from last
month) expect their families to be “better off” financially this time next
year compared to just 4 percent (down 3 percent from February) who expect to
be “worse off” financially.
Looking ahead, 61 percent (down 5 percent) expect to see
growth in the Vietnamese economy over the next five years, compared to 4
percent (down 4 percent) who predict difficult economic times, the lowest
rate since February 2014.
Maguire said low petroleum prices have improved household
spending and overall incomes have increased, but a number of Vietnamese are
still hesitant to purchase major household items.
The report showed that domestic demand is recovering and
Vietnamese families remain confident and expect economic progress over the
next five years.
Maguire added that policies in Vietnam should be adjusted to
reflect the country’s recovering demand.
Bac Giang attracts over 40 investment projects in Q1
The northern province of Bac Giang has attracted 33 domestic
and 10 foreign-invested projects worth a combined 144 million USD thus far
this year.
According to the provincial Department of Planning and
Investment, the large-scale projects include a 40.5 million USD factory specialising
in granite tiles and a 30 million USD electronic headphone production plant.
In the second quarter of this year, the locality will continue
improving its business climate to lure more investment through addressing
difficulties related to land clearance.
The province also plans to ask the Government to approve the
establishment of the Chau Minh-Mai Dinh Industrial Park while working with
investors to accelerate infrastructure construction in the Van Trung, Quang
Chau and Dong Khe-Noi Hoang industrial parks.
Investment promotion activities will also be intensified,
targeting potential markets such as Japan, the Republic of Korea (RoK) and
Taiwan (China) and giving priority to processing, manufacturing and high-tech
projects.
Bac Giang is calling for investment in shopping-service
centres, commercial housing and tourism sites in Bac Giang city and Viet Yen,
Lang Giang and Son Dong districts.
Projects in agriculture are also being encouraged, focusing on
industrial-oriented cattle, poultry breeding and medicinal plant and mushroom
growing in Son Dong, Yen Dung and Lang Giang districts and poultry breeding
in Tan Yen, Yen The, Hiep Hoa and Luc Ngan districts.
Bac Giang has thus far registered 871 investment projects with
a total capital of over 4.2 billion USD.
Among 10 countries and territories investing in the locality,
the RoK has the largest contribution with 90 projects.
As many as 130 foreign-invested projects are operating in the
province, creating jobs for nearly 65,000 employees. In the last quarter,
industrial production value by the foreign investment sector reached 7.9
trillion VND (371 million USD), an annual rise of 16.9 percent.
ACB honored “Most improved retail bank in Asia Pacific 2015”
The Asia Commercial Bank (ACB) was recently honored with the
“Most improved retail bank in Asia Pacific 2015” award by the prestigious
Asian Banker Magazine.
Selection criteria were based on outstanding performance and
breakthrough developments in the fields of operation process, product
development, risk management and IT.
ACB was the only bank to receive the award in the Asia-Pacific
region.
In 2014, the bank’s total assets exceeded 179 trillion VND
(8.5 billion USD), up 8 percent from 2013, and total pre-tax profits reached
1.2 trillion VND (57.6 million USD) a 17 percent rise from previous year.
Other indexes have shown improvement; the bank’s bad debt
ratio decreased considerably from 3.1 percent in 2013 to 2.2 percent in 2014.
The bank’s Capital Adequacy Ratio (CAR) reached 14 percent
compared to the minimum ratio of 9 percent required by the State Bank and the
Loan-Deposit Ratio (LDR) was 75.2 percent.
ACB is one of the leading joint stock commercial banks in
Vietnam. Founded in 1993, the bank now has over 350 transaction offices
nationwide with nearly 10,000 employees.
Forex market calms down after SBV pledges to stabilise rate
The foreign exchange (forex) market cooled down on March 26
after the State Bank of Viet Nam (SBV) committed to keeping the exchange rate
stable.
All commercial banks had cut their rates by 30 to 40 dong per
US dollar on March 26, compared with the rates fixed earlier this week.
Vietcombank listed the rate at VND21,465/21,525, down 40 dong.
BIDV and Vietinbank also cut the rate by 35 dong to
VND21,465/21,525 and VND21,475/21,535.
Eximbank and ACB also adjusted their rates down by 30 dong to
VND921,450/21,530.
The inter-bank exchange rate yesterday remained at VND21,458,
while the rate quoted at the central bank's transaction offices was also kept
stable at VND21,350/21,600.
SBV Deputy Governor Nguyen Thi Hong said the central bank had
no plans to adjust the exchange rate for now, adding that there was no need
to worry about recent developments in the forex market.
Hong reiterated that forex rates would be adjusted by no more
than 2 per cent this year as part of a pledge made by Governor Nguyen Van
Binh in December last year.
In January, the SBV had devalued the dong by 1 per cent from
VND21,246 to VND21,458 per US dollar, the first exchange rate adjustment
since June 2013.
Though the US dollar recently rose against the dong, it was
still far below the cap of VND21,673 per dollar set by the central bank and
the currency market was still seeing normal operations, Hong said, adding
that the central bank had not felt the need so far to sell the greenback and
intervene in the market.
Hong attributed the recent increase in the forex rates in the
domestic market mainly to psychological factors, following the appreciation
of the greenback in the world market.
For the past week, as the forex rate increased roughly VND120
against the previous weeks, some suggested that the central bank should
further depreciate the dong to back domestic goods and support exports.
They said that the rise in value of the greenback in the
global market had driven a series of central banks around the world to
devalue their currency.
However, Hong said, the greenback had only risen strongly
against key currencies, such as the euro, British pound and Canadian dollar,
with whom Viet Nam's trading was not extensive.
She said keeping the exchange rate unchanged at the moment was
more beneficial than devaluing the dong, because 90 per cent of the material
for Viet Nam's exports was purchased from abroad.
Therefore an increase in the value of the US dollar would hurt
exporters since input costs would escalate, especially as demand for imported
materials was rising, Hong explained.
She said despite posting a trade deficit of US$1.75 billion
during the first three months of 2015, the Vietnamese economy still enjoyed a
balance of payments surplus of $2.8 billion, owing to funds from remittances
and foreign investment capital.
Source :
VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
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Thứ Hai, 30 tháng 3, 2015
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