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BUSINESS IN BRIEF 3/3
Vietnam Airlines wants to buy the domestic passenger terminal
at
Its proposal to the Ministry of Transport effectively puts
Vietnam Airlines on a collision course with low-cost carrier VietJet Air,
which also wants to buy Terminal 1 at Noi Bai, and the international T2, and
has secured a pilot franchise over Lobby E at T1 while authorities assess its
plans to improve efficiency.
Vietnam Airlines chairman Pham Viet Thanh said, "There
has been a popular trend to privatise major terminals at international
airports around the world to faciliate the development of major airlines
firms. This trend is really suitable for the Vietnamese Ministry of
Transport’s policies to call for private investment in airport
infrastructure,”
T1 serves domestic passengers, with T2 handling international
flights.
Transport Minister Dinh La Thang has asked the ACV for a
privatisation plan to mobilise capital for constuction of the planned
“We’ll work out regulations to prevent possible monopoly,”
Thang said.
Some 36 domestic and foreign airlines operate an average 340
flights a day at the
Vinpearl proposes 54-hole golf course in Ha Noi
Vinpearl has proposed to construct a 54-hole golf course near
the Duong river in the Gia Lam and Long Bien districts of Ha Noi.
A view of Vinpearl's golf course in Hon Tre Island of Nha
Trang province. - Photo vinpearlgolf.com
About VND1,368 billion (US$63.6 million) will be invested in
the two-phase project, which will be built between 2016 and 2020.
The golf course will spread over 291 hectares and will include
multi-purpose buildings, such as swimming pools, a gymnasium and a medical
centre.
On February 25, the Ha Noi's People Committee had asked the
Ministry of Agriculture and Rural Development (MARD) to study and approve the
proposal.
According to news online baodautu.vn, MARD has gathered the
opinions of experts on the proposal, which currently seem to vary.
Businesses begin stockpiling rice in Mekong Delta
Businesses have begun purchasing one million tons of winter
spring rice in the Mekong Delta on March 1 when the Prime Minister's rice
stockpiling decision took effect.
The Government has assisted businesses with 100 percent of
bank loan interest rate in four months to buy rice under the program from
March 1 until April 15.
Rice prices were in down trend near the lunar New Year
Festival but have a bit increased recently owning to the program.
Specifically, a kilogram of fresh rice fetches VND4,200-4,600
a kilogram, up VND200-300 over it before Tet. Traders have boosted purchase
in Can Tho, Hau Giang, Dong Thap, and Vinh Long for the last few days.
Farmer Ngo Van Kha from Vi Thanh District, Hau Giang province
said that the new prices are acceptable.
The busiest purchase is along the 40 kilometer road linking
Can Tho and Vi Thanh, where nearly 100 combined harvesters have continuously
operated in fields.
Leaders from Can Tho, Dong Thap, An Giang, Tien Giang, Long An
and Can Tho say that this year the rice stockpiling program has been launched
timely as farmers are entering peak harvest season.
Vietnam Food Association (VFA) has allocated rice volume for
businesses to buy in each province. The largest purchase will be 250,000 tons
in An Giang, followed by Can Tho with 175,000 tons and Bac Lieu with 8,000
tons. The lowest volume is in Ca Mau with 2,400 tons.
2015 is the sixth year in a row VFA carries out the rice
stockpiling program for the yearly largest winter spring crop in the Mekong
Delta.
The program is a Government's intervention measure in the rice
market to prevent a price drop during peak harvest time and ensure farmers'
profit, Deputy Minister of Agriculture and Rural Development Vu Van Tam said
at a meeting on the program's implementation in the delta yesterday.
In addition to the program, the Southern Food Corporation has
won a bid to export 300,000 tons of rice to the
However, Deputy Chairman of VFA Huynh The Nang said that
tendency would not prolong because the Mekong Delta would have up to five
million tons of commercial rice by the second quarter. The number includes
iventory rice from last year and newly harvested rice.
KLF announces plans to raise charter capital
KLF Investment (KLF) plans to increase its charter capital
from VND1.52 trillion (US$71.4 million) to more than VND3.6 trillion ($169
million) through share issuance and dividend payout.
In 2014, KLF achieved a profit after taxes of VND91.37 billion
($4.3 million), a soaring 164.6 per cent compared to 2013. The company
expects its profits will continue to grow, reaching VND156 billion ($7.3
million) this year.
The company's stock dropped 2.8 per cent yesterday to settle
at VND10,500 ($0.49) despite the company's recent news.
NHP Production Import-Export will list 12.5 million shares
coded as NHP on the Ha Noi Stock Exchange, the exchange was approved but no
detailed timing was publicised.
The one-year-old packaging and plastic resin company is
managed by senior economist Le Xuan Nghia, former vice president of the
National Financial Supervisory Commission, who owns 22.4 per cent of the
company's shares. Two other large shareholders are Phu Thanh Garment JSC (16 per
cent) and its 25-year-old chief executive Nguyen Thi Mai Huong (6 per cent).
NHP's revenue and profit after taxes reached VND69.1 billion
(US$3.2 million) in 2014. It currently has a 25 per cent stake in Phu Vinh
Hung Textile Co Ltd and 22.22 per cent in the plastic resin firm, Delex
LGC acquires half of Hien An Binh Bridge and Road Co.
LGC initially owned an 18 per cent stake in the company.
LGC also disclosed last year's profit, a booming VND214
billion ($10 million) compared to VND4 billion ($187,800) in 2013.
LGC shares closed yesterday's session unchanged at VND34,000
($1.6).
Lenders post record asset values
The total assets of the domestic credit institution system
were worth nearly VND6,520 trillion (US$310.48 billion) at the end of last
year, a 12.2 per cent increase over 2013.
The value of the assets was a record high, news website
ttvn.vn reported, citing the latest data from the State Bank of Viet Nam
(SBV).
In 2014, State-run banks' assets grew 14.82 per cent
year-on-year to touch nearly VND2,880 trillion ($137.14 billion), while the
value of the assets of joint-stock banks rose by 13.1 per cent year-on-year
to reach roughly VND2.78 quadrillion ($132.38 billion). Joint-venture and
foreign banks saw no changes in their asset values.
The combined ownership capital of credit institutions hit
about VND496.57 trillion ($23.65 billion), a year-on-year increase of 4.36
per cent. Their charter capital totalled VND435.65 trillion ($20.74 billion),
up 3.29 per cent year-on-year.
These capital growth rates were significantly lower than those
recorded in previous years. The growth of ownership capital and charter
capital of credit institutions was nearly nine per cent and 11.2 per cent
respectively in 2012, and 9.6 per cent and 8.1 per cent respectively in 2013.
Market observers said that while a bank's capital is very important
in assuring depositors' interests in case of risks, the slowing down of
capital expansion last year showed that lenders were facing difficulties in
luring investment capital.
Many banks reportedly failed to implement plans to increase
capital during 2014. At the beginning of this month, SBV announced that it
will take over the Viet Nam Construction Bank, which is being restructured,
to restore its payment capacity.
The capital adequacy ratio (CAR) of the credit institution
system reached 12.75 per cent at the end of last year, significantly higher
than the expected level of nine per cent, according to the report.
The CAR was 9.4 per cent for State-run banks, and 12.07 per
cent for joint-stock banks.
Thua Thien-Hue plans to lure industrial zone funds
This central province plans to attract investments worth
VND2.5 to VND3 trillion (US$119.05 to $142.86 million) and generate jobs for
1,000 to 1,500 new workers this year.
Provincial People's Committee Vice Chairman Phan Ngoc Tho said
local authorities will hand over cleared sites in industrial zones (IZs) to
investors, while considering this a priority in luring investments here
during 2015.
Further, the province will concentrate on the development of
infrastructure, including traffic projects, electricity and water, along with
waste treatment and fire prevention systems. It will also support investors
in training the labour force.
According to the provincial IZs management board, the IZs have
attracted 92 investment projects, with a total registered capital of some
VND19.59 trillion ($932.86 million).
About 38 per cent of this amount, or VND7.40 trillion ($352.38
million), have been disbursed, including VND3.43 trillion ($163.33 million)
by foreign direct investment (FDI) enterprises.
Last year, the IZs generated revenues valued at VND13.03
trillion ($620.48 million), up 18 per cent over the previous year, with the
total number workers of nearly 17,100.
Thua Thien-Hue has four IZs, including the 185ha Phu Bai zone,
which has been built on by 28 companies and will be expanded with an
additional area of some 118ha.
They also comprise the Tu Ha and Phong Thu parks, each
covering an area of 100ha. Just the Chan May-Lang Co economic zone has
created jobs for about 6,000 labourers, and is requiring up to 24,700 workers
this year, and 70,000 by 2020.
Tho said accelerating vocational training to assure the
availability of skilled workers is necessary for a variety of sectors,
including agriculture, forestry and aquaculture. He also mentioned fields
such as handicrafts and mechanical goods production, as well as food
processing.
FDI inflow declines but disbursement increases
Total foreign direct investment (FDI) in Viet Nam reached
nearly US$1.2 billion in the first two months of this year, equivalent to
just 77.5 per cent of that in the same period last year.
According to the Foreign Investment Agency's report, disbursed
capital in the period increased by 7.1 per cent against last year's same
period to reach $1.2 billion.
Further, during this period, 148 new FDI projects were
licensed, with a combined registered capital of $712.29 million, while 60
existing projects increased their registered capital, being valued at $480.5
million.
FDI was directed into 13 sectors, in which processing and
manufacturing remained the most attractive industry, drawing $952 million
into 65 new FDI projects and 40 existing projects.
Meanwhile, real estate came in second, attracting $111.43
million in FDI during the period, or 9.3 per cent of the total FDI into the
country, followed by retail and repairing services, with $71.22 million.
British Virgin Islands, with $351.39 million in capital, led
28 countries and territories injecting capital into
Also, northern
Of note, the FDI sector ran a trade surplus of $2.03 billion
in the period, statistics showed.
Big year likely for VN textile, garment exports
Textile and garment exports are set for a boom this year,
according to the Viet Nam Industrial and Trade Information Centre (VITIC), a
Ministry of Industry and Trade agency.
In January exports were worth over US$1.9 billion, marginally
up from last year, but many companies in the textile and garment industry
have received orders to be executed in the first and second quarters.
The
The full year's exports to the
Japanese firms' increasing investment in supporting industries
in
Exports to
VITIC said once a free trade agreement with the EU is wrapped
up, exports of textiles and garments to that market would begin to rise,
reaching $4 billion this year.
The Viet Nam National Textile and Garment Group (Vinatex)
plans to invest VND9.4 trillion ($441.3 million) by 2017 in 59 textile,
dyeing, garment and infrastructure projects, according to the corporation.
They include 15 fibre production projects, 18 textile and
dyeing projects,18 garment projects and eight infrastructure projects.
Under the plan, Vinatex will disburse VND2.425 trillion
($113.85 million) to develop these projects this year, with VND805 billion
($37.8 million) going to fibre projects, VND713 billion ($33.5 million) to
textile anddyeing projects, VND726 billion ($34.1 million) to garment
projects, and VND181 billion ($8.5 million) to infrastructure in industrial
zones for the textile and garment industry, reported the Dau tu (Vietnam
Investment Review) newspaper.
With the investment, Vinatex expects to increase this year its
production capacity to 6,000 tonnes of fibre, six million metres of dyed
cloth, two million vests and blazers and four million trousers, as well as
one million shirts and two million knitwear products.
Vinatex is currently considered to have the largest scale in
production in the textile and garment industry, with 100 member companies,
and holds 15 per cent of the total national textile and garment export value.
However, the member companies of Vinatex still face
difficulties in investment in sub-material production, textile and dyeing
projects.
Vinatex General Director Le Tien Truong said that the member
companies don't have large investment capital, presenting a major challenge
for local textile and garment firms in increasing the localisation rate.
The Phong Phu Joint Stock Corporation is a member of Vinatex
that has the largest capital amount of VND700 billion ($32.86 million), while
other large member companies have lesser capital, such as Viet Tien with
VND200 billion ($9.4 million), Garment 10 with VND100 billion (4.7 million),
and Nha Be with VND150 billion ($7.05 million).
The large garment companies could not invest in full supply
chains, especially regarding the production of materials and sub-materials
for textile and garments, to receive export orders as original design
manufacturers (ODM), Truong said.
Vinatex has equitised its operations from January 1 this year,
he added, so the group will promote management, investment and market and
staff development.
The parent company will also take on the role of a direct
investor to increase production capacity, especially self-reliance in
material production, in a move to reduce dependence on imports, rather than
manage State-owned capital at its member companies, as it did before
equitisation.
The group has set a target for its parent company to earn
VND900 billion ($42.25 million) in revenue and VND288.4 billion ($13.54
million) in after-tax profit in 2015; VND2.3 trillion (107.98 million) and
VND342.3 billion ($16 million) in 2016; and VND3.26 trillion ($152.8 million)
and VND405.9 billion ($19 million) in 2017 respectively.
Clean up your act, Ha Noi tells investors
The Ha Noi Department of Construction has set April 30 as the
deadline for investors to submit reports on the implementation of residential
projects, of particular concern are waste water treatment stations.
According to Le Duc Duc, director of the Ha Noi Department of
Construction, although the city has over 150 residential areas and thousands
of high-rise residential blocks, many of them don't have waste water
treatment facilities or discharge untreated waste water into to city's sewage
system.
One of the cited reasons for the phenomenon is that investors
don't want to put money into non-profit areas of their projects, Duc said.
No strict regulations for punishment have yet been drafted to
encourage, or scare, investors into executing their projects according to
their submitted and approved plans, he said.
The Tin Tuc (News) newspaper recently reported that Nam Thang
Long-Ciputra, generally regarded as a model urban area, lacks a sewage
treatment facility.
Other urban areas in Ha Noi like Yen Hoa, Van Khe and My Dinh
haven't put into effect their waste water treatment systems despite being
fined for polluting the environment.
An official from Song Da Thang Long Joint Stock Company, an
investor in the Van Khe urban area, said the framework for a waste water
treatment zone has been finished. However, he added, it hasn't been put into
operation because machinery and technology costs are too expensive.
The head of the Ministry of Construction's Department of Urban
Development, Do Viet Chien, said the mass development of urban areas in the
past were spontaneous and was not planned properly. As a result, these urban
areas lack major infrastructure needed to serve residents and prevent
environmental pollution.
Lack of regulation of urban area development as well as
redundancy and overlap in legal documents confuse both competent agencies and
investors, Chien said.
Investors also focus on the number and size of urban areas but
don't care about sustainable development and environment-friendly factors, he
said.
Chien said ministries and local authorities should more
closely monitor the development process of urban areas and settle misdoings
as soon as possible to ensure that projects are compatible with existing
infrastructure and other ongoing projects.
Dao Ngoc Nghiem, former director of the Ha Noi Department of
Planning and Architecture, said urban areas should be strictly classified.
For example, he explained, it's not necessary for a small scale residential
area to build a large waste water station.
Pham Sy Liem, vice president of the Viet Nam Construction
Association, in turn, blamed authorities' loose management for the lack of
sewage treatment facilities in urban areas.
Footwear export to the
The figure was released by the US Customs recently, according
to the Viet Nam Leather and Footwear Association (Lefaso).
Viet Nam exported $3.55 billion worth of footwear last year,
up 22.4 per cent from 2013 and 119 per cent from 2010.
The export value of Vietnamese footwear sent to the United
States registered an average growth rate of 30 per cent for the 2010 to 2014
period.
The total footwear import value for the United States touched
US$25.74 billion last year, up 4.5 per cent year-on-year.
China remained the biggest footwear exporter to the United
States last year at $16.9 billion, making up for 65.6 per cent of the market
share.
Lefaso attributed the rise in Viet Nam's footwear exports
during the recent years to higher investment through foreign direct
investment (FDI) by enterprises tapping the opportunities offered by the
country signing Free trade Agreements (FTAs) with the European Union and
South Korea, and entering the Trans-Pacific Partnership (TPP) with 11 other
countries, including the United States, Japan and Canada.
According to Lefaso, the sector's competitive capacity was
also enhanced by an improvement in technology and equipment. The association
also forecast that the country's footwear export value will surpass $12 billion
by 2015 and will continue to grow going forward.
According to Viet Nam's General Customs Department, last year,
the total export value of the sector was pegged at $10.22 billion, showing a
year-on-year surge of 21.6 per cent, and accounting for 6.8 per cent of the
total export value of the country.
Of this figure, the export value of FDI businesses is
estimated at $7.93 billion, accounting for 77 per cent of the country's
footwear export value.
AIA VN launches i-service to boost customer care
AIA Vietnam has introduced an application to improve its
customer service to enable customers to conveniently check online contract
information.
Running on iOS operating system (used for Apple mobile devices
such as iPhone, iPad), AIA i-Service is simply designed, easy to use and said
to have high security.
After downloading the application, customers will be provided
with an online account and password.
Labor export: opportunities in 2015
More than 100,000 Vietnamese workers went abroad to work last
year, doubling the yearly target by the Ministry of Labor, Invalids, and
Social Affairs. It aims to maintain contracts in traditional labor markets
this year while penetrating high-income niches. Improving the quality of
overseas workers is also a key task.
Last year overseas Vietnamese workers increased in major
markets: 62,000 workers in Chinese Taiwan, 20,000 workers in Japan, 4
thousand workers in Saudi Arabia, and 1 thousand workers in Qatar.
Chinese Taiwan recruited 62,000 Vietnamese workers to become
the biggest employer of Vietnamese workers in 2014. Taiwan will remain
Vietnam’s top labor market in 2015 because its economic and employment
policies have been stable since 2011.
Tong Hai Nam, Deputy Director of the Overseas Labor Management
Department, said “In 2015 Taiwan will continue to be the biggest importer of
Vietnamese workers. Vietnam has focused on recruitment and training to
improve the quality of workers.”
Japan has several work and study opportunities for Vietnamese
workers and apprentices. Japan has a high demand for skilled workers and
apprentices in construction, mechanics, manufacturing, agriculture,
healthcare, and food processing.
Vietnam has surveyed new markets, which have better working
conditions and higher salaries, in Africa and the Middle East. Vietnam will
sign contracts with Angola and Saudi Arabia. With the formation of the ASEAN
community, Vietnam expects to increase workers abroad. ASEAN’s agreement on
equivalent skills recognition will allow free movement of accountants,
architects, dentists, doctors, engineers, nurses, drivers, and tourist staff.
In order to fulfill labor export contracts in 2015 and later,
Vietnam is paying particular attention to improving the quality of workers.
Tong Hai Nam, Deputy Director of the Overseas Labor Management Department,
said a limited number of high-quality workers were sent to the Republic of
Korea in the past.
Over the past 2 years, the Overseas Labor Management
Department signed two cooperative agreements with Japan and Germany to
recruit, train, and send nursing assistants to work there.
Minister of Labor, Invalids, and Social Affairs Pham Thi Hai
Chuyen said “The government has approved our plan to reform vocational
training to access advanced technology and improve the quality of vocational
teachers. This year we will benefit from 34 ASEAN-standard vocational
training programs and will send teachers to train abroad. About 500 teachers
and 45 managers of vocational training centers have been trained abroad.”
Vietnam will promote the image of Vietnamese guest workers
internationally. Minister Chuyen added that “Workers will learn basic facts
about the local country, people, customs, traditions, and work regulations.
About 70 companies are providing basic training courses. The
Ministry will issue specific regulations for training companies to ensure the
quality of overseas Vietnamese workers.”
Hai Phong receives FDI injection
Industrial zones in northern Hai Phong city lured roughly 35
million USD in foreign direct investment (FDI) in February, evidencing the
city’s attractive economic strategy and infrastructure system.
The Hai Phong Economic Zone Authority (HEZA) granted a new
investment certificate to Hansung P.T.C Co., Ltd from the Republic of Korea
to carry out a project in Trang Due Industrial Park.
The project, worth 3 million USD, will focus on producing
galvanised coating systems and coating plastic products and household
appliances and is scheduled to become operational this month.
Meanwhile, the HEZA issued adjusted investment certificates
for Japanese invested Zeon Vietnam to add new business operations, adjust
production scales and increase invested capital in VSIP Hai Phong Integrated
Township and Industrial Park. The capital was adjusted from 25 million USD to
27.69 million USD.
Two other FDI projects, also run by Japanese investors,
received approval to inject a combined 27 million USD of capital.
Hai Phong continues to affirm the crucial role of FDI projects
in promoting economic restructuring and reforming the city’s growth model
towards green growth and sustainable development, Pham Thuyen, Head of the
HEZA, said.
He added that the HEZA and its investors are working to
accelerate the disbursement of investment in infrastructure and to support
enterprises in tackling obstacles to production.
The city targets 2-3 billion USD in FDI in 2015, doubling the
2014 figures.-
Thua Thien-Hue plans to lure industrial zone funds
The central province of Thua Thien-Hue plans to attract investments
worth 2.5 trillion VND to 3 trillion VND (119.05 million USD) to 142.86
million USD) and generate jobs for 1,000 to 1,500 new workers this year.
Provincial People's Committee Vice Chairman Phan Ngoc Tho said
local authorities will hand over cleared sites in industrial zones (IZs) to
investors, while considering this a priority in luring investments during
2015.
Further, the province will concentrate on the development of
infrastructure, including traffic projects, electricity and water, along with
waste treatment and fire prevention systems. It will also support investors
in training the labour force.
According to the provincial IZs management board, the IZs have
attracted 92 investment projects, with a total registered capital of some
19.59 trillion VND (932.86 million USD).
About 38 percent of this amount, or 7.40 trillion VND (352.38
million USD), have been disbursed, including 3.43 trillion VND (163.33
million USD) by foreign direct investment (FDI) enterprises.
Last year, the IZs generated revenues valued at 13.03 trillion
VND (620.48 million USD), up 18 percent over the previous year, with the
total number workers of nearly 17,100.
Thua Thien-Hue has four IZs, including the 185ha Phu Bai zone,
which has been built on by 28 companies and will be expanded with an
additional area of some 118ha.
They also comprise the Tu Ha and Phong Thu parks, each
covering an area of 100ha. Just the Chan May-Lang Co economic zone has
created jobs for about 6,000 labourers, and is requiring up to 24,700 workers
this year, and 70,000 by 2020.
Tho said accelerating vocational training to assure the
availability of skilled workers is necessary for a variety of sectors,
including agriculture, forestry and aquaculture. He also mentioned fields
such as handicrafts and mechanical goods production, as well as food
processing.-
Hai Phong receives FDI injection
Industrial zones in northern Hai Phong city lured roughly 35
million USD in foreign direct investment (FDI) in February, evidencing the
city’s attractive economic strategy and infrastructure system.
The Hai Phong Economic Zone Authority (HEZA) granted a new
investment certificate to Hansung P.T.C Co., Ltd from the Republic of Korea
to carry out a project in Trang Due Industrial Park.
The project, worth 3 million USD, will focus on producing
galvanised coating systems and coating plastic products and household
appliances and is scheduled to become operational this month.
Meanwhile, the HEZA issued adjusted investment certificates
for Japanese invested Zeon Vietnam to add new business operations, adjust
production scales and increase invested capital in VSIP Hai Phong Integrated
Township and Industrial Park. The capital was adjusted from 25 million USD to
27.69 million USD.
Two other FDI projects, also run by Japanese investors,
received approval to inject a combined 27 million USD of capital.
Hai Phong continues to affirm the crucial role of FDI projects
in promoting economic restructuring and reforming the city’s growth model
towards green growth and sustainable development, Pham Thuyen, Head of the
HEZA, said.
He added that the HEZA and its investors are working to
accelerate the disbursement of investment in infrastructure and to support
enterprises in tackling obstacles to production.
The city targets 2-3 billion USD in FDI in 2015, doubling the
2014 figures.
Nghe An to attract 100 projects this year
The central province of Nghe An hopes to attract at least 100
projects with a registered capital of 20 trillion VND (952.38 million USD) in
2015, said Vice Chairman of the provincial People’s Committee Le Ngoc Hoa.
The official said he expects the new projects will provide
jobs for 10,000-12,000 people.
According to its recent investment attraction strategy, Nghe
An will call for investment in crucial infrastructure facilities, such as the
Cua Lo and Dong Hoi ports.
It will prioritise projects in for-export manufacturing,
mechanics, processing, building material production, trade and tourism
services, high-tech agriculture, forestry development, and hospital
construction, Hoa said.
The province has opened the door to both domestic and foreign
investors and will seek those with experience and financial strength such as
groups, corporations and companies with a nationwide reach and from developed
economies like Japan, the Republic of Korea, Singapore, Israel, the US,
France, the UK, and Germany, he added.
The Vice Chairman continued to say that Nghe An is working to
improve the local investment climate and competitiveness while making the
best use of support from the State and foreign organisations to attract
investment.
It currently houses 776 projects, including 733 run by
domestic investors with over 164.93 billion VND (7.85 million USD) in
capital. The other 43 projects, valued at 1.61 billion VND (76.670 USD), are
foreign investments.
Some major operational projects include dairy cow farming and
milk processing by the TH-True milk company, the Sabeco packaging factory,
and the Ban Ve hydropower plant.-
Honda to double Vietnam bike exports to 100,000 units: report
Japan's automaker giant Honda Motor Co. has targeted to double
its made-in-Vietnam bike exports this year in an ambitious plan to become the
biggest market share holder for motorbikes in more Asian countries, a
Japanese business magazine reported Friday.
Honda Motor will export 100,000 motorbikes manufactured in
Vietnam in 2015 as the company is fortifying its presence in Myanmar, Laos
and other developing Southeast Asian countries, according to Nikkei Asian
Review.
The Tokyo-based automaker is currently the marker leader in
Vietnam, Thailand and Indonesia. The company also has plans to boost demand
to replace their motorbikes among Vietnamese consumers by introducing
higher-end models, Nikkei Asian Review reported.
Honda’s made-in-Vietnam 50cc scooters are being exported to
Japan, whereas those with 100cc and larger engines are shipped to Europe and
other places. Honda exported some 40,000 bikes from Vietnam in 2014.
In November 2014, Honda Vietnam inaugurated its third
motorcycle production plant in the Southeast Asian country in the northern
province of Ha Nam, some 40km from Hanoi.
The US$120 million facility has an annual production capacity
of 500,000 units, Honda Vietnam said in a press release.
The total production capacity of Honda in Vietnam is 2 million
units per year, according to Nikkei Asian Review.
Honda accounts for 70 percent of the total two-wheeler market
share in unit sales in Vietnam, making mostly scooters with 50cc to 110cc
engines, the Japanese magazine said.
A Honda Vietnam representative told local media in mid-January
that Honda Motor was weighing the possibility of relocating part of its
motorcycle production in Vietnam back home as Japan’s domestic manufacturing
costs have fallen over the weak yen.
Details for the plan, however, could not be disclosed
immediately, according to the source.
It was reported earlier this year that the production lines
will be transferred back to Japan to meet domestic demand.
Honda’s annual motorbike sales in the Japanese market are
around 200,000 units, half of which are those with under 50cc engines.
With production costs in Japan soaring, the company previously
had to move part of its production to Vietnam to save costs.
But it is now costlier to import made-in-Vietnam motorbikes
than make them domestically, and Honda is thus likely to reverse its decision
Citi announces $100 Billion to finance sustainable growth
Citi has just announced a landmark commitment to lend, invest
and facilitate a total of $100 billion within the next 10 years to finance
activities that reduce the impacts of climate change and create environmental
solutions that benefit people and communities.
Citi’s previous $50 billion goal was announced in 2007 and was
met three years early in 2013.
With this $100 billion initiative, Citi will build on its
leadership in renewable energy and energy efficiency financing to engage with
clients to identify opportunities to finance greenhouse gas (GHG) reductions
and resource efficiency in other sectors, such as sustainable transportation.
As part of a commitment to helping cities thrive during this
period of unprecedented urban transformation, Citi will seek to finance and
support activities that enable communities to adapt to climate change impacts
and directly finance infrastructure improvements that increase access to
clean water and manage waste, while also supporting green, affordable housing
for clients, including in low- and moderate-income communities.
“Citi has demonstrated its deep commitment to not only taking
environmental consequences into account, but also finding innovative ways to
finance projects that lead to sustainable growth,” said Michael Corbat, Chief
Executive Officer of Citi.
“For more than 200 years, Citi’s mission has been to enable
progress by facilitating economic growth and financing transformative
projects. The core mission hasn’t changed, but the way we approach it has.
Incorporating the principles of sustainability into everything we do improves
our own operations, enhances our clients’ work, and contributes to a better
world.”
“Reducing carbon emissions and becoming more climate resilient
is a key priority and major challenge for the world’s megacities and their
business communities,” said James Alexander, Head of the Finance and Economic
Development Initiative at C40 Cities Climate Leadership Group, a network of
the world’s biggest cities working to become more sustainable.
“C40’s ongoing partnership with Citi is helping global cities
overcome their climate finance challenges. Today’s announcement from Citi
will add further opportunities to help cities achieve their climate targets,
and allow businesses to become more sustainable,” he added.
This environmental finance initiative is part of a new
five-year sustainability commitment that also focuses on environmental and
social risk management and sustainability goals for Citi’s own businesses and
operations.
Citi has established new environmental footprint goals for
2020, including 35 percent reduction in greenhouse gas (GHG) emissions, 30
percent reductions in energy and water use and 60 percent reduction in waste,
all against a 2005 baseline. The initiative also includes a longer-term 2050
GHG emissions reduction goal of 80 percent, created using a climate
science-based 2 methodology. Targeting 33 percent of its real estate
portfolio to be LEED certified, Citi will also seek LEED Platinum
certification for its 388/390 Greenwich Street facility in New York City,
which will become the company’s global headquarters once it is fully
renovated.
Phu Tho urged to attract investment from ASEAN
The northern province of Phu Tho ought to promote its
potential in textiles, footwear and leather exports as well as seek more
opportunities to attract investment from other ASEAN countries.
Deputy Prime Minister and Foreign Minister Pham Binh Minh made
the statement while attending a working session with the provincial leaders
on February 28.
Deputy PM Minh emphasised that in 2015, Vietnam will sign a
number of free trade agreements with ASEAN countries and trade agreements
with partners around the world, therefore to take advantage of such
circumstances; Phu Tho has been advised to exert more efforts in relevant
fields and seize opportunities to develop in a sustainable manner.
The province should also connect with countries and
territories that have the same beliefs and culture in the region to develop
tourism and related services, expanding the tourism industry into a key
economic sector of the locality, he added.
The Deputy PM also called for the Ministry of Foreign Affairs
and other relevant ministries, sectors, and organisations to support and help
Phu Tho preserve the traditional art of Xoan singing, which is currently on
the list of Intangible Cultural Heritage in Need of Urgent Safeguarding.
During his trip to Phu Tho, Deputy PM Minh presented 20
wheelchairs to disadvantaged people in the province, offered incense at the
Hung Kings Memorial and temples dedicated to Lac Long Quan and Au Co in Ha
Hoa district.
Vietnam posts trade surplus of US$300 million in February
Vietnam gained a trade surplus of US$300 million in February
after posting a deficit of US$361 million in the previous month, according to
the General Statistics Office (GSO).
Exports in February were estimated at US$9.6 billion, down
28.4% against January while imports were valued at US$9.3 billion, a decrease
of 32.4% from the previous month.
The GSO said trade activity in February lost momentum because
of the week-long Lunar New Year holiday.
In the first two months of 2015, the export and import values
were largely the same with imports at US$23 billion, higher than the export
figure by a modest US$61 billion, compared with a US$1.35 billion surplus of
the same period last year.
Exports in the January-February period rose 8.6% year on year,
mainly driven by a 12.4% rise in the export revenue of the foreign sector,
including oil exporters while domestic enterprises recorded an insignificant
increase of 0.7%.
Electronic devices and computers were the leading exports,
surging by more than 57% compared with the same period last year while phone
export growth slowed to 15.3%.
On the import side, the first two months of the year saw car
imports skyrocket by 61.9%, followed by increases in machinery and electronic
devices.
Sharp funding cut in Long Thanh airport project
The capital estimate for the first phase of Long Thanh airport
project has been adjusted down to US$5.2 billion from the previous US$7.8
billion after experts and National Assembly deputies cast doubt on the
investor’s ability to mobilize hefty funds for the big-ticket project and
expressed concern about its impact on the country’s public debt.
Transport Minister Dinh La Thang told the 35th session of the
National Assembly (NA) Standing Committee in Hanoi on February 27 that the
Government had revised down the funding estimate for the first phase of the
international airport in Dong Nai Province by US$2.6 billion after careful
reviews.
The latest revision in the new report the minister delivered
on behalf of the Government is higher than the US$1.2 billion reduction
discussed by representatives of the Ministry of Transport, Airports
Corporation of Vietnam (ACV) and relevant agencies at a meeting on Tuesday.
Of the US$5.2 billion planned for the first phase, official
development assistance (ODA) funding is projected to account for US$1.3
billion and the State budget US$578.3 million. The remaining US$3.2 billion
is sourced from the project’s investor ACV with VND12.15 trillion (over
US$568 million), proceeds of equitized components and investments of
enterprises joining the project via the public-private partnership (PPP)
format.
The funding cut is attributable to some major adjustments,
including construction of only one runway in the first phase instead of two
as planned at the end of last year. This will help save some US$1 billion but
still ensure the airport could handle 254,000 take-offs and landings and 38
million passengers a year.
More money could be saved from more components of the airport
project in Long Thanh District subject to equitization after the
international airport is put into operation.
The new report also says that the financial internal rate of
return (FIRR) of the passenger terminal of the airport would be 13.9% with
return on investment over 25 years in addition to the economic internal rate
of return (EIRR) put at 22.1% with return on investment over 40 years in the
previous report.
Thang acknowledged that the accuracy of calculations in the
pre-feasibility study of the airport project was not high. He pledged the
ministry and relevant agencies will continue reviewing facts and figures when
making the feasibility study if the NA gives the nod to the project.
The ministry proposed withdrawing 5,000 hectares for the
project at one time and then earmarking 2,750 hectares for civil aviation
only to help save another US$535 million.
At a meeting in Hanoi on Wednesday, the ministry proposed a
pilot scheme to sell the operation rights to Phu Quoc International Airport
and Hall E of Terminal 1 at Noi Bai International Airport to investors to
raise capital for Long Thanh airport development.
At the session of the NA Standing Committee yesterday, Thang
sought approval for ACV to use the money mobilized from its equitization to
fund the airport project.
Despite explanations made by Thang, members of the NA Standing
Committee wanted the Government to clarify more about the sharp funding cut
for the airport project and its impacts on the State budget and public debt
as the State budget still covers the PPP and ODA funding for the project.
Phung Quoc Hien, head of the NA’s Financial and Budgetary Committee,
called for the Government to weigh the possible impacts of Long Thanh airport
as the State budget needs to provide more than VND40 trillion (over US$1.87
billion) for the project if all sources of capital are calculated.
Hien questioned the role of Long Thanh when it is designed to
serve as a transshipment airport for the flights from Indonesia, the
Philippines and Australia. However, Thang said the airport is expected to
operate as a hub for the airlines from other markets rather than the three countries
only.
Thang said the State budget should cover a maximum 30% of
total funding of the project and that capital for the project would not be a
big concern if ACV is allowed to use the money raised from its equitization
and Phu Quoc airport is up for sale.
Nguyen Thi Kim Ngan, vice chairwoman of the NA, asked to make
clear the proportions of funds from the State budget, bonds, ODA and PPP
sources for the project, and that how much the State budget could be saved if
other investment sources are mobilized.
NA deputies asked the Government to provide exact funding
figures for three phases of the airport project and find effective ways to
avoid adjusting up it when the project is implemented.
Revised total funding for the whole project is estimated at
US$15.8 billion, down nearly US$3 billion compared to the previous report,
according to news site VnExpress.
Long Thanh airport is designed to handle Airbus A380 jumbo
jets and those of same seating capacity, and up to 100 million passengers and
five million tons of cargo per year. Previously, ACV planned to break ground
for the first phase of the Long Thanh airport project this year.
Source :
VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
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Thứ Ba, 3 tháng 3, 2015
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