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BUSINESS IN BRIEF 6/4
National GDP likely to reach 6.5 per cent
The country's gross domestic product (GDP) this year is
expected to be 6.5 per cent, much higher than the Government's set target of
6.2 per cent, the National Financial Supervisory Committee (NFSC) forecast.
According to the committee, the GDP in the first quarter of
the year posted a 6.03 per cent year-on-year increase, the highest in the
last five years.
The committee said the increasing GDP was due to improved
demand. The total retail sale of products and services in the first quarter
(excluding price rise) was 5.1 per cent higher than the same period last
year.
The investment demand also improved. As of March 20, the
country's credit growth reached 1.25 per cent, much higher than the level of
0.5 per cent in the corresponding period last year, thanks to interest rate
cut to some extent.
FDI disbursement in the first three months was 7 per cent,
higher than 5.6 per cent in the past 12 months.
The country's exports in the first quarter of this year grew
6.9 per cent against the same period last year to touch US$35.7 billion.
As for inflation, the committee said CPI this year would
continue to be a low 3.5 per cent. If the world food prices fall this year,
the CPI target of 5 per cent would depend on electricity tariff adjustment.
It calculated that the power tariff rise of 7.5 per cent on
March 16 would increase the whole year's CPI by 0.5 per cent.
Realty association sets up brokerage branch
The Viet Nam Real Estate Association (VNREA) will establish a
brokerage branch to support, represent and protect the rights and interests
of organisations and businesses dealing with real estate brokerage.
The branch was introduced at the VNREA annual meeting in the
central port city of
Head of the Construction Ministry's Housing and Property
Market Department Nguyen Manh Ha accepted his posting as the branch's
chairman.
All brokerage businesses, exchange floors and individuals who
have received brokerage certification are welcome to take part in the
association.
The branch is expected to be a channel for receiving
complaints and for the contribution of ideas from organisations and
individuals on the State's policies on real estate.
According to VNREA's General Secretary Tran Ngoc Quang, the
association has more than 1,580 members nationwide. Some 30,000 people
nationwide have been granted real estate brokerage and assessment
certification.
At the meeting, Tran Kim Chung from the Central Institute for
Economic Management presented three scenarios for the domestic market, saying
it was standing at a three-way crossroads, reported news website dddn.com.vn.
The first scenario is that the market will continue to remain
stable with a small potential for development, as is currently the case. This
is the most likely scenario.
The second scenario is that the market will begin a new growth
cycle. This may occur if a number of factors come together: The situation in
the East Sea must become stable; Viet Nam must successfully participate in
the Trans-Pacific Partnership (the country's economy is expected to increase
by 10 per cent if this becomes a reality); the State must remain a macro
economy with stable monetary policies; and revised laws affecting the
construction and real estate business must be passed, which will further open
the door for Vietnamese living abroad and foreigners to buy a house and own
real estate in Viet Nam.
The third scenario is that the market will see a downturn if
the situation in the
Based on the above analysis, Chung said the domestic real
estate market showed signs of development in the next few years. Many foreign
investors were interested in
The market has shown signs of recovery and become very
attractive due to preferential economic policies created by the State and
Government. In addition, the country's rapid urbanisation was predicted to
increase in speed by 45 per cent by 2025, demonstrating that demand was still
high. The market has developmental potential over the next 10 years, said
Chung.
US dollar prices continue to increase in domestic market
Greenback rates kept soaring at domestic commercial banks
yesterday, and the gap to the ceiling price set by the State Bank of Viet Nam
(SBV) narrowed.
The highest rates were seen at VietinBank, which bought a single
US dollar at VND21,575 and sold it at VND21,635, and Techcombank, which
listed the buy/sell rates of VND21,555 and VND21, 635 respectively. Eximbank
also rated each dollar at VND21,635 on the buying side and VND21,575 on the
selling side.
At the same time, Vietcombank listed its buying and selling
rates per dollar of VND21,550 and VND21,610 respectively.
BIDV listed each dollar at VND21,570 to buy and VND21,630 to
sell, while other commercial banks of ACB, DongABank and Agribank listed
buying rates between VND21,545 and VND21,575 and selling rates between
VND21,620 and VND21,630.
The rates in the flea market also remained as high as they
were in commercial banks. Quoc Trinh Gold and Jewelry Company on
As of January 7, the SBV increased the inter-bank exchange
rate from VND21,246 to VND21,458 per US dollar. With an effective exchange
rate with a one per cent margin, the ceiling rate was VND21,673 per dollar.
Thus, the gap to the ceiling price was only VND40 at the
commercial banks and VND30 at the flea market.
Last week, the SBV confirmed that the demand and supply of
foreign currency were stable in the market, adding that speculation
psychology among the local investors had lifted the rate. The central bank
confirmed the rate would not be increased any further for now and that the
bank still planned to increase the VND/USD exchange rate by no more than 2
per cent in 2015.
This message was repeated on April 1, but the greenback rates
have continued to soar in the local market.
Data from the General Department of Customs said
Economist Nguyen Tri Hieu told Infornet.vn that rating up the
VND/USD exchange could bring some benefit to local exports, but it would
simultaneously have a greater negative impact on the whole economy.
Hieu said the move would negatively influence imports and the
macro economy, leading to an increase in the foreign debt of both the
government and local enterprises.
Hieu cited an estimate from the Ministry of Investment and
Planning which demonstrated that if the rate was stepped up by another 1 per
cent, VND10 trillion ($462.3 million) would be added to the public debt. The
economist said with the public debt closing in on 65 per cent of the GDP, any
increase in debt would be too burdensome on the local economy.
However, Hieu also thought that the SBV should closely watch
the forex movement in the country and across the world to consider an
increase when it is necessary.
HCM City products on show in Cambodia
Nearly 50 exhibitors from
Viet Nam-Cambodia Trade-Service-Tourism Exhibition 2015 (HCM
City Expo 2015) in Battambang city, 300 kilometres from northwest
At the 80 pavilions, agricultural machinery, processed food,
plastic products, and electronic equipment, among others are on display.
The annual event is a venue that provides Cambodian consumers
with a range of high-quality products, Vice Chairwoman of the HCM City
People's Committee Nguyen Thi Hong, said.
Emerging markets fill Unilever coffers
More than 50 per cent of Unilever's global revenues come from
emerging markets, with high growth in markets like
Speaking in
"Developing human resources is one of the commitments in
the sustainable development strategy of the company."
One of these is the Unilever Future Leader Program, a management
trainee programme launched in 1998 for graduates with less than one year's
experience.
Every year the company recruits 12-15 leaders through the
programme for various areas like marketing, sales, accounting, supply chain,
manufacturing, and human resources. This year the programme received over
1,500 applications.
Eastin Grand Hotel
The Absolute Hotel Services Group has announced the rebranding
of the Movenpick Hotel to the Eastin Grand Hotel Saigon on
The hotel, which has 268 deluxe rooms and suites equipped with
modern amenities, provides large conference rooms with state-of-the-art
facilities and dining options.
Special launch rates are US$90++ per room per night, including
free wi-fi and other benefits. The offer is valid until June 30.
Eastin Grand Hotel Saigon is part of the Eastin chain of
international hotels and residences covering Asia,
E-customs system benefits businesses
After one year of application, the Vietnam Automated Cargo and
Port Consolidated System/Vietnam Customs Information System (VNACCS/VCIS) has
greatly benefited enterprises, especially in saving time for customs
clearance, reported the Vietnam Customs.
Data collected at Saigon Port Customs Sub-Department under the
Ho Chi Minh City Customs Department in October last year showed that it took
3 seconds averagely to register for customs declaration via VACCS system, and
34 hours to complete all customs clearance procedures for imports, a 18
percent reduction compared to 2013’s figure of 42 hours.
Meanwhile, enterprises spent an average 6 hours for
registering and receiving customs declaration for exports, a decrease of 58
percent over 2013’s duration of 16 hours.
According to the Vietnam Customs, one of the breakthroughs of
the system is the application of information technology in tax collection
with the electronic payment via banks.
Currently, 19 commercial banks have contracted with the
Vietnam Customs in electronic tax collection and the number is rising.
The VNACCS/VCIS has also created a foundation for the building
of a national “one-stop-shop” mechanism that is expected to bring long-term
benefit to enterprises.
The system has now been connected to the Vietnam Customs’
system and is scheduled to be linked with the Ministries of Health, Agriculture
and Rural Development and Natural Resources and Environment in June.
The Vietnam Customs also reported that as of March 15, the
VNACCS/VCIS, launched in April 1, 2014 as part of a project funded by
New customs policies introduced to Japanese firms
Japanese businesses were updated on
The event was jointly organised by the provincial Department
of Customs, the Vietnam Chamber of Commerce and Industry in
Customs officials explained in detail new points of the new
Law on Customs, which took effects as from January 1, 2015, and pointed to
common mistakes that businesses often made in using digital signature and
declaring customs formalities.
Representative from the Japanese Consulate in Ho Chi Minh City
Miyake Taek appreciated the initiative to organise the dialogue, saying that
she hopes similar events will be held in the future, bringing practical benefits
to enterprises.
Previously, Binh Duong’s Department of Customs also hosted a
similar dialogue with over 140 businesses from the
Ha
Businesspeople of northern Ha
This was the affirmation of Chairman of the provincial
Businesses Association Dinh Van Hong during a get-together between the local
business community and Japanese investors on March 3.
Hong said the association can serve as a bridge connecting the
two sides in the coming time.
He added that the local firms want to know more about Japanese
firms’ requirements and standards for goods, in order to make products
meeting the Japanese side’s demand.
Representatives from the Japan External Trade Organisation
(Jetro) said the meeting contributes to boosting stronger cooperation between
Vietnamese and Japanese firms.
At the event, Ha
At present, 37 Japanese enterprises are operating in Ha Nam in
the fields of motorbike and automobile spare parts production, machinery,
liquefied gas, packaging and electronic component.
Kon Tum enters organic business
The construction of a large-scale organic farm began at Dak
Long commune, Kon Plong district in the Central Highlands
The project has an investment of more than 60 billion VND (2.8
million USD) invested by Kon Tum Bellest, a joint venture between Vietnam,
New Zealand and the Republic of Korea.
The 100ha farm will grow beans and strawberry, with an
expected annual output of 45 tonnes of beans and 1,200 tonnes of strawberries.
All organic produce will be checked and accredited by
international organisations before being sold domestically or exported.
The project will offer more than 2,000 jobs for local
labourers.
Vietnam remains destination of choice for Japanese SMEs
The survey covering 3,750 SMEs showed that about 11.7 percent of
respondents have invested in overseas markets, mainly in the fields of
precision mechanical manufacturing, transportation machinery and information
technology and non-manufacturing industries.
Among them, 40.7 percent say they have plans to invest in
The survey also showed that
According to statistics of the Japanese Business Association
(JBA), direct investment from
Total Japanese investment capital in
Exports to tackle more challenges this year
The country’s exports in the first quarter of this year grew
by 6.9% to US$35.7 billion against the same period of last year.
However, this growth rate was much lower than last year’s
level of 14.1% due to export prices decline.
According to the National Financial Supervisory Committee
(NFSC), export revenues of key products like cashew nut, coffee, tea, pepper,
rice, cassava and cassava products, coal, crude oil, petroleum, rubber and
steel dipped 24.4% against last year, which was mainly caused by a prices
fall of 2.4%.
Experts forecast that world prices will continue to drop from
now to the end of this year, creating more challenges to export businesses.
The high export growth rates in 2013 and 2014 were partly
attributed to Samsung telephone exports, but the situation is different this
year.
The General Statistics Office of Vietnam (GSO) reported that
imports in the review period are estimated at US$37.5 billion, a year-on-year
rise of 16.3%, pushing the trade deficit up to US$1.8 billion.
If domestic production rebounds,
Sacombank receives American Wells
The Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank)
has been named a good growth bank in commercial sponsorship activities by the
American bank Wells Fargo.
The award is based on criteria in commercial sponsorship
transactions including Letter of Credit (L/C) and Usance Payable at Sight
Letter of Credit (UPAS L/C) through Wells Fargo.
In a bid to provide high-quality financial products in
In 2014, the bank’s international settlements reached over 6.8
billion USD, of which revenue from commercial sponsorship activities
generated 2.3 billion USD.
Wells Fargo, founded in 1852, is the fourth leading bank in
the
Under the programme funded by
Additionally, they will be advised on developing a brand
strategy for a business or product and assisted in marketing activities, such
as advertising, building websites, producing publications on businesses and
products and organising events.
The city is also accelerating administrative reforms by
applying information technology in tax declaration, customs and registration
for business establishment in a bid to boost investment.-
Bac Ninh: Foreign investment gains momentum in Q1
The
An additional 32.8 million USD was added to 15 existing
projects, 23.1 million USD of which was recorded in 8 ones in March alone.
As of this March, the province counted 661 foreign-invested
projects worth approximately 8 billion USD.
Bac Ninh has strived to develop its hi-tech industry and
strengthen connections between local and foreign-funded enterprises.
The local authorities have also held regular meetings with
investors to deal with any arising troubles.
This year, the province targets 26 billion USD in export
revenue.
Conference discusses self-certification of origin in Vietnam
Self-certification of origin in free trade agreements (FTA)
was discussed at a conference held on April 2 in Hanoi, aiming to facilitate
trade and counteract trade frauds.
The two-day event, co-hosted by the Vietnam Customs and the
United States Agency for International Development (USAID), aims to introduce
the system’s operations and gather comments from localities and businesses
for developing relevant regulations and guidance.
According to Deputy Director of Customs Vu Ngoc Anh, the
system with regulations and examination methods is quite new for Vietnam.
However, this is one of commitments the country has to implement when joining
international agreements, including the Trans-Pacific Partnership (TPP).
He stressed the development of a legal framework, skills and
knowledge to prepare the system’s application and effective implementation.
Deputy Director of the Customs’ Supervision and Management
Division Au Anh Tuan stressed the need for training capability among staff
involved in self-certification of origin.
Detailed instructions issued by the Ministry of Industry and
Trade for the piloted implementation within the ASEAN bloc are also critical,
Tuan added.
During the conference, participants heard from experts on the
USAID-funded Governance for Inclusive Growth (GIG) project as they shared
experience in implementing self-certification of origin in the
US—particularly for garments-textiles—and the roles of stakeholders in the
process.
Fishermen see high yields in north season
The fisheries sector recorded major catches of 1.3 million
tonnes of fish in the 2014-2015 north season, an annual rise of 2.85 percent,
as reported at a conference held in the central province of Thua Thien-Hue on
April 2.
According to the Fisheries Information Centre, Vietnam’s sea
area is divided into four main regions: northern, central, southeast, and
southwest. Fishing activities are classified as on-shore and off-shore based
on the depth of the sea in each region.
There are two main fishing seasons: the south season (from May
to October in the north, and July-December in the south); and the north
season (from November to April in the north and January-May in the south).
During the 2014-2015 north season, the Ministry of Agriculture
and Rural Development directed fisheries units to pioneer a streamlined tuna
production value chain to create high-quality fish products.
Following the success of this model, the fisheries sector
looks to implement similar methods in other product lines such as shrimp and
octopus.
Apart from setting up dozens of community-based fishing
associations and on-shore fishing management systems, localities called for
more proactive fishermen involvement in the protection and management of
fishing grounds.
Local authorities also enacted major policies to boost seafood
development such as investment in aquatic-breeding infrastructure; long-term
preferential loan credits for rebuilding and upgrading fishing vessels, and
low-interest mobile loan credits for seafood exploitation services; and tax
and insurance incentives.
In the 2015 south season, the fisheries sector targeted
catching 1,327,000 tonnes of fish.
The General Department of Fisheries asked coastal localities
to proactively direct farmers in production and help them address
difficulties and cope with complicated weather developments.
Toyota eyes 46,000 car sales in 2015
By launching new brands into the market, Toyota Motor Vietnam
(TMV) has set its sights on selling 46,000 cars in 2015, up 13 percent from
last year, said TMV General Director Yoshihisa Maruta at a press conference
on April 2.
Last year, the company set records by manufacturing nearly
34,800 cars and selling 41,205, an annual increase of 24 percent, he said,
underscoring that the results were buoyed by the additional injection of 19
million USD for new car projects and production lines.
TMV raked in 40 million USD from product exports, contributing
to increasing its total export value in the past two decades to 286 million
USD.
TMV’s major exports, including antennas, exhaust valves and
gas pedals, are sold in 13 countries and territories such as Thailand,
Indonesia, the Philippines, Malaysia, India, Argentina, South Africa, Taiwan
(China) and Greece.
In addition to its business targets, TMV has made
contributions of over 700 million USD to the national budget.
Efforts
to improve business competitiveness in Mekong Delta
A conference on designating ways to improve the competitive
competence of enterprises in the Mekong Delta region was convened in the
southern city of Can Tho on April 2 by the Can Tho chapter of the Vietnam
Chamber of Commerce and Industry (VCCI).
Director of VCCI- Can Tho Vo Hung Dung said the VCCI-Can Tho
has implemented supporting programmes for enterprises in manpower training
and improving communication in trade relations and foreign investment in a
bid to boost local economic development.
The VCCI-Can Tho has helped enterprises to operate effectively
by cutting costs and improving quality in accordance with international
standards, particularly as Vietnam enters a number of agreements such as the
Tran-Pacific Partnership (TPP) by end of 2015 of early 2016, he added.
General Secretary of the Mekong Delta Business Association
Nguyen Thi Thuong Linh noted that local enterprises should keep them updated
with latest polices and trade agreements that Vietnam signed with foreign
organisations and countries.
Additionally, enterprises should intensify the added valued
for their products create partnerships, and focus on expanding new market and
new product development.
Moreover, Linh requested regional authorised bodies to improve
the business climate in terms of administrative reform.
According to the VCCI-Can Tho, over 51,000 Mekong enterprises
lack information on trade related policies and laws, international markets,
competitive partners and ways to access credits. Unstable raw material
sources and rising prices have hindered business development of local
enterpriese.
Such reasons caused 1,932 enterprises in the region to
dissolve or stay idle in 2014, a 19,8 percent increase from 2013.
Vietjet Air increase Ho Chi Minh City-Bangkok flights
Vietjet Air is set to increase the number of offered flights
between Ho Chi Minh City and Bangkok (Thailand) from two to three round trips
per day starting from May 18, 2015.
Accordingly, 7,560 tickets each week will offer passengers a
more flexible travel schedule and price options.
Vietjet Air will depart from Tan Son Nhat International
Airport in HCM City at 08:30, 11:15 and 17:15 local time. Returning flights
from Bangkok will be offered at 11:30 , 13:50 and 19:55 local time. The
flight duration is around and hour and a half.
Customers can purchase tickets from April 2 through its
website www.vietjetair.com , www.facebook.com/ vietjetairvietnam, hotline:
19001886, and its ticket offices nationwide.
As scheduled, Vietjet Air will receive additional aircrafts to
meet the increasing travel demand of passengers.
On March 22 the company received an A321 ceo Sharkets at the
Tan Son Nhat International Airport, the fifth aircraft from an order of 100
purchased and leased planes from Airbus.
Property market generates new foreign interest
Korean giant Lotte, after inaugurating last September Lotte
Center Hanoi, a mixed-use development with offices, a shopping mall, hotels,
and apartments, is now eyeing a similar project in Ho Chi Minh City.
With an investment of some US$2 billion, the Smart Complex in
HCMC’s new Thu Thiem urban area would be one of its biggest projects in
Vietnam.
Lotte is one of several foreign property investors to have
recently upped their investment in the country.
Hong Kong’s Sun Wah Group has a more than 40% stake in a
multi-million dollar project to build an apartment building complex in HCMC’s
Binh Thanh District.
The group is currently the owner of the Sun Wah Tower in HCMC,
and the developer of the US$400 million Saigon Pearl residential-commercial
complex. It also plans to build an industrial park in Hanoi and a resort in
Vinh Phuc Province.
“The economic recovery is a good sign for foreign businesses
to expand their investment in the property market,” Pham Sy Liem, deputy
chairman of the Vietnam Construction Federation, said.
Vietnam's economy grew at 5.8% last year and the government
has stepped up efforts to clean up bad debts in the financial system, some of
them tied to property.
Echoing Liem, Nguyen Van Chinh, director of a property firm in
Hanoi’s Le Van Luong Street, said: “Inflation rate is manageable and interest
rates are reduced, thus people are starting to invest more in properties. You
will begin to see the turnaround.”
When the real estate market boomed between 2007 and 2008, it
lured half of all foreign direct investment coming into Vietnam. Then the
market froze, also becoming less attractive to foreign investors due to the
economic downturn in the country in the following years. Many projects had
their licenses revoked after construction stalled, while some others
proceeded at a snail’s pace.
However, the market is showing signs of recovery with a sharp
increase in the number of transactions.
The real estate market saw over 8,000 successful transactions
in the first quarter of this year, triple the number in the same period last
year, according to the Ministry of Construction.
The bubble of eight years ago is unlikely to recur since the
economy is strong this time, Liem said.
Another reason for foreign investors to increasingly enter the
sector is a policy change allowing greater foreign ownership of property,
Nguyen Huu Cuong, chairman of the Hanoi Real Estate Club, said.
Foreigners with a valid visa and foreign companies and
international organizations operating in Vietnam will be permitted from July
1 to buy houses and apartments.
Now only foreigners married to Vietnamese and those deemed to
make significant contributions to the nation’s development are allowed to buy
houses in the country.
The new rules allow maximum foreign ownership of 30% in any
apartment building or 250 houses in a ward.
“It is a very good change of policy, opening up the real
estate sector to expats, and creating an image of an opening of the economy
to foreign capital,” Liem said.
“It will help attract more FDI in the sector.”
Singapore property developer Keppel Land last July bought an
additional 43% stake from a Vietnamese partner in a high-rise building
project in HCMC, raising its total stake to 98%.
Linson Lim, president of Keppel Land Vietnam, said: "We
remain confident in the long-term growth potential of Vietnam's property
market. It has a young and dynamic population and a growing middle-class with
strong aspirations for home ownership.”
The high urbanization rate, improving infrastructure and
declining interest rates would also support housing demand, he said.
Investors who have done business in Vietnam for many years
like Lotte, the nation's biggest fund manager VinaCapital Group, and
Indochina Land, a subsidiary of London-listed fund Indochina Capital, have
recently expanded investments in property, while new ones like Creed Group
have entered the market.
Last December Japanese fund manager Creed announced plans to
invest in an apartment project in HCMC. It is expected to put up 80% of the
project’s cost of VND1.3 trillion.
Real estate sector ranked second last year, after the
processing industry, in attracting FDI. In 2014 it attracted US$2.54 billion,
accounting for 12.6% of total investment, according to the Foreign Investment
Agency.
The new rules on foreign property ownership come as good news
for the real estate market, especially the high-end segment. It could result
in an increasing number of foreign customers, Liem of the Vietnam
Construction Federation said.
The fact that Vietnam has been listed as one of the top 25
retirement destinations by International Living, an Irish magazine, could
also spur demand for housing in the country from foreign nationals, he said.
The magazine’s annual Global Retirement Index is compiled
using inputs from its team of correspondents around the world who consider
climate, healthcare, cost of living, and other factors to draw up a
comprehensive list of the so-called “best bang-for-your buck” retirement
destinations on the planet.
It ranked Vietnam 25th with a score of 67 out of 100 possible
points.
An Indochina Land spokesperson said the firm has recently
received hundreds of letters from foreigners interested in property in
Vietnam. They want information about regulations on foreign ownership of
property including the possibility of renting out properties.
He said the Vietnam real estate market is highly attractive to
both foreign investors and buyers. Most of them prefer high-end apartments of
international standard and a full range of amenities in Da Nang and HCMC.
According to the Ministry of Natural Resources and Environment,
nearly 800 overseas Vietnamese and foreigners own housing in Vietnam.
The number is small considering that there are some 80,000
expats living and working in the country.
Thailand
wants to open auto powerhouse in Vietnam
The automotive industries of Vietnam and Thailand should
cooperate for common development rather than competing each others, said
President of Thailand Automotive Institute (TAI), Vichai Jirathiyut during
the talks in HCM City on April 2.
The talks aimed to increase the production value of Vietnam’s
automobiles and motorbikes in the ASEAN region.
Mr Vichai Jirathiyut said Vietnam’s automobile industry has
recorded an impressive growth with 120,000 cars last year, up 29% in quantity
and 35% in sales turnover.
He expressed wish that Vietnam’s automobile industry will
continue to flourish in the future with an estimated quantity of 220,000 cars
by 2020 and 1.5 million by 2035. This will help its automobile industry
develop rapidly in the ASEAN Economic Community (AEC) which is expected to be
established late this year. Moreover, low-cost labour force and the
government’s support policies will also facilitate the development of
Vietnam’s automobile sector.
Mr Vichai Jirathiyut said that Thai manufacturers have
possessed advanced technologies which will benefit Vietnamese producers in
the ASEAN market.
However, local analysts and auto businesses worry that Vietnam
will become a consumer of imported cars from the region as Vietnam begins to
reduce tariffs under the ASEAN Trade in Goods Agreement (ATIGA) commitment.
As the localization rate of auto businesses remains low,
ranging between 10% and 30% and import tariffs of completely built unit (CBU)
cars are expected to be reduced to zero percent by 2018, cars assembled in
Vietnam with imported spare parts will be more expensive than CBUs imported
from Thailand and Indonesia.
Hong Kong official urges VN firms to attend trade fairs
Vietnamese businesses should be more proactive in joining Hong
Kong's year-round trade events, including exhibitions, the deputy executive
director of the Hong Kong Trade Development Council said at a press luncheon
in HCM City on Wednesday.
Benjamin Chau, who is visiting the city to meet government
officials, trade associations and industry stakeholders, said he hoped to
strengthen collaboration between Hong Kong and Viet Nam during his visit.
Chau said that joining fairs would help Vietnamese companies
form partnerships and gather the latest market intelligence.
Last year, more than 33,600 exhibitors from 84 countries and
regions as well as over 700 buyers from 200 countries and regions visited the
Hong Kong council's 30 trade fairs, up 3.4 per cent year-on-year.
However, fewer than 50 exhibitors from Viet Nam joined fairs,
while the figure was 500 from Thailand, 800 from Japan and 700-800 from
India.
"Vietnamese suppliers should be proactive in seeking
buyers rather than letting buyers find them," Chau said. "The
Vietnamese businesses often don't take part in fairs again if did not find
partners or buyers first time."
However, companies do not go to fairs to just collect orders.
They also receive customer feedback that allows them to adjust their price
and quality strategies, he said.
Chau said that many international buyers, especially from the
EU, had increasingly sought goods from Viet Nam through the council's fairs.
Chau said trade ties between Hong Kong and members of ASEAN,
including Viet Nam, had been fruitful for many years and were set to become
more robust in future.
In 2014, Viet Nam was Hong Kong's 12th largest trading
partners. Total trade between Hong Kong and Viet Nam reached $14 billion last
year, an increase of 11.7 per cent from 2013.
Hong Kong's total exports to Viet Nam amounted to $8.6
billion, up 14 per cent. Major export categories included telecommunications
equipment and parts, meat products and fruit.
Viet Nam exports to Hong Kong telecommunication equipment and
parts, semi-conductors, electronic valves and tubes as well as footwear. The
total amount last year was $5.4 billion, up 8.2 per cent.
Pan Food bids for Bibica
The Pan Food Joint Stock Company, a subsidiary of the Pan
Pacific Corporation has officially made a bid for more than 4.6 million
shares of confectionery maker Bibica.
Pan Food's bid for the shares, which would account for a 29.87
per cent stake, will be valid from April 3 to May 8.
Pan Food has offered to buy each share for VND56,800 (US$2.65)
or VND261 billion ($12.2 million) for all the shares.
On the HCM Stock Exchange, each BBC share closed at VND57,500
($2.72) yesterday.
Currently, Pan Food owns a 21.13 per cent stake or 3.26
million shares in BBC. If the sale is confirmed, it will hold as much as a 51
per cent of the stake and become the biggest shareholder in the confectionery
maker.
In the meantime, the biggest shareholder of BBC is the Korean
Lotte Confectionery, which owns 44.03 per cent of the stake or 6.79 million
shares.
Apart from Pan Food, another subsidiary of Pan Pacific
Corporation, Ben Tre Aquaproduct Import and Export Co (coded ABT), holds a
3.58 per cent stake or 553,000 shares in BBC.
The Duong Mat Troi Investment Company also owns a 12.31 per
cent stake in BBC.
The Chairman of Duong Mat Troi Investment Company is the
brother of Pan Pacific Chairman Nguyen Duy Hung.
According to local media, most BBC stakeholders have no
objection to the offer.
BBC is one of the leading confectionery makers in Viet Nam,
with popular brands including Hura, Choco Bella, Orienko, Zoo and,
OneTwoThree.
Last year, it reported sales of almost VND1.13 trillion ($52.8
million), an increase of 7 per cent over the previous year. Its net profit
jumped 27 per cent to touch VND57.4 billion ($2.7 million).
HAGL group gets approval to import sugar from Laos
The Government has made a nonspecific agreement allowing the
Hoang Anh Gia Lai Group (HAGL) to import 50,000 tonnes of sugar from Laos at
a tax rate of 2.5 per cent.
The group has invested heavily in sugar production in Laos.
The Ministry of Agriculture and Rural Development and the
Ministry of Industry and Trade agreed to the quota and submitted a proposal
to PM Nguyen Tan Dung for approval.
Earlier, the HAGL Group filed a petition to allow it to import
crude sugar from Laos to then process in Viet Nam and finally export to
China.
According to commitments made to the WTO, Viet Nam must allow
81,000 tonnes of sugar to be imported as raw material this year. The import
quota rises by five per cent a year. The quota started at 50,000 tonnes in
2007 when the country joined the WTO.
Vietnam to outpace most of the world in creating new rich
families: study
The number of Vietnam’s rich households with financial assets
of US$100,000 to US$2 million is expected to reach 347,000 by 2020, a study
shows.
This represents an annual growth rate of 35% from 2014 to
2020, placing Vietnam third among 32 nations covered in the Economist
Intelligence Unit research sponsored by Citi.
By 2020, the total financial assets in Vietnam’s rich
households should reach $68 billion as each would have the average asset of
US$196,000, according to the study.
The study, released in late March, says this group, dubbed
“the new wealth builders” or NWB, is the world’s fastest growing wealth
segment.
India took the top spot in producing wealthy households as the
number of NWB households in this country is expected to jump by 47% in 2014
through 2020, to 4.9 million households each with US$178,000 in average
financial assets.
The study predicted robust economic expansion in Vietnam
through 2018, at 35%. Analysts foresee a steady acceleration in private
consumption growth that will shake off the effects of the spiraling inflation
of 2011-2012.
As Asian consumers spend, large populations spur regional
economic growth. At present, the number of NWB households in emerging markets
is overshadowed by the NWB cohort in developed markets, 97 million versus 171
million, respectively.
But after 2020, emerging market NWBs will outnumber their
peers in mature markets, the study said.
"NWBs represent an increasingly important phenomenon in
the world economy, driving growth in savings and economic activity more
generally,” said Jonathan Larsen, Citi global head of retail banking and head
of consumer banking in Asia Pacific. “They are typically self-made, socially
conscious and sharply focused on growth.”
Source :
VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
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Thứ Hai, 6 tháng 4, 2015
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