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BUSINESS IN BRIEF 27/5
HCMC
signs cooperation MoUs with RoK giants
Politburo
member, Ho Chi Minh City Party Committee Secretary Le Thanh Hai and People’s
Committee Deputy Chairman Nguyen Huu Tin on May 25 witnessed the signing
ceremonies of Memorandum of Understandings (MoU) on cooperation between
Vietnamese businesses and agencies with large economic groups of the
These
were parts of their activities during an week long visit to RoK starting May
23.
Chairman
of Lotte Group Dong Bin Shin said that they had done business in
At the
meeting, representatives from the HCMC Department of Planning and Investment
and Lotte signed a Memorandum of Understanding (MoU) on the project’s
implementation.
Lotte
affirmed that they would pour a total of US$1.5-2 billion in the new urban
area and HCMC also. The group expressed hope that the city would assist them
to start the project on September 2.
In
response, Mr. Hai affirmed that HCMC always welcomes and creates advantageous
conditions for foreign investors including Lotte. However, the group has to
ensure a green urban area with architectures harmonious with surrounding
works while building the Eco smart city.
Mr. Hai
appreciated highly investment and trade activities of Lotte in
Right
after the meeting with Lotte, Secretary Hai received permanent deputy
chairman of CJ group Mr. Lee Chae Wook.
CJ
operating in four fields of amusement, food, biological technology and
transport has invested over US$250 million in
The
group plans to invest US$500-600 million in state own enterprises (SOEs) that
have been equalized such as Vietnam Meat Industries Limited Company (Vissan).
Mr. Hai
said that the city advocated the company’s investment policy in
Thereafter,
CJ signed three MoUs with the HCMC Trade and Investment Promotion Center, CPK
Company and Tien Phuoc Company.
According
to Mr. Hai, the two countries’ relationship has comprehensively developed in
all fields including health, education and culture.
The two
sides have also signed a free trade agreement and set a target to raise
bilateral trade turnover from US$40 billion now to US$70 billion by 2020.
Despite
under influences of the world economic crisis, HCMC has still developed
thanks to tourism and services. Services account for 60 percent of the city’s
economic structure while the number of visitors to the city occupies 44
percent of the country’s total number of arrivals.
HCMC’s
Gross Domestic Product (GDP) accounts for one fifth of
HCMC
locating in the southern region’s economic hub is a gateway to enter
surrounding markets such as
Ha
Tinh terminates trillion-dong steel complex project
The
Economic Zone Management Board in the central
It was
designed to have a capacity of 250,000 tons a year which would extend to
500,000 in the second phase.
The 25.81
hectare project was changed for the third time in December 2009. However many
items of the projects have been abandoned for the last several years.
The
plant should have completed a pilot production of commercial steel billets in
2010 but it failed to do so.
Many
items have run downgraded while machines and equipments have been rusty and
badly damaged.
The
national flag carrier Vietnam Airlines (VNA) will receive 33 wide-body
airplanes, including 19 Boeing 787 and 14 Airbus A350 from June till 2019.
Boeing
787-9 Dreamliner and Airbus A350-900 are among the world' s most modern and
advanced wide-body aircrafts.
VNA said
it is planning to change aircrafts which are able to help save energy and
environmental friendly.
They
will be used on international long routes and destinations in Europe and
The
change of its fleet makes Vietnam Airlines to become the first carrier in
Trade
sees $1.87b deficit in first half of May
Meanwhile,
the country's imported goods were worth $8.19 billion, an increase of 34.7
per cent compared to the second half of April.
This
meant the country's trade deficit was $1.87 billion for the first two weeks
of May. This compares to a trade deficit of $3.7 billion from the beginning of
the year.
The
total export turnover from the beginning of this year to May 15 totalled
$56.09 billion, while import turnover was $59.78 billion.
The
import turnover for the first five months was expected to reach $66.2
billion, an increase of 15.8 per cent compared to the same period last year.
Regarding
exports, key export products from the beginning of the year included
telephones and components ($10.44 billion), garments and textiles ($7.23
billion), computers, electronic products and spare parts ($5.35 billion),
footwear ($4.09 billion), machines, equipments and accessories ($2.78
billion) and wood and wooden products ($2.32 billion).
Meanwhile,
The
General Statistics Office attributed the high trade deficit to an increasing
demand for infrastructure investment and production. This led to an increase
in demand for machines, equipments and materials.
Meanwhile,
the economy is dependent on imported materials because a supporting industry
has not fully developed in
"FDI
enterprises have ultilised opportunities from free-trade agreements which
take effect this year", said the office.
Despite
unsatisfactory production and business results for the first four months of this
year, many enterprises hope that their business will improve in the next six
months, said the the Viet Nam Chamber of Commerce and Industry.
For the
last nine months of the year, 42.2 per cent of enterprises will expand their
businesses, 56.1 per cent will remain the same, 1.7 per cent will reduce
operations and 0.1 per cent might have to stop.
It was
easier for businesses to access loans in the first four months of this year,
which increased their optimism.
VietJet,
VNPT to co-operate on telecommunications
VietJet
and the Viet Nam Posts and Telecommunications Group (VNPT) will co-operate in
areas such as air transport, telecommunications and multimedia entertainment
services on the carrier's aircrafts.
The
commitment follows a strategic deal inked between the two sides in
VietJet
will expand and develop ticket sale channels on the VNPT system, while VNPT
will develop telecommunications services on the airline's planes and receive
preferential air service packages. The two will also join hands to draw up
promotional packages for customers.
Southern
province launches first Government-sponsored steel vessel
Southern
Ba Ria-Vung Tau province’s first steel vessel built under a Government decree
supporting fisheries development is set to go on its maiden voyage on May 26.
The
logistics ship, BV 99999 TS, owned by Gia Han Fishery Logistics Co. Ltd, will
carry fuel and basics for fishing vessels at sea, said Tran Phong Ba –
Director of Gia Han company.
The
vessel, 54m long and 10m wide, is equipped with two 822CV engines and modern
facilities such as radar, the global positioning system, and digital map.
It is
able to carry 400 tonnes of seafood, 100 cu.m. of fresh water, and 250 tonnes
of diesel oil.
The ship
was built at a cost of 35 billion VND (1.66 million USD), 30 billion VND of
which was loaned under concessional terms by the Ba Ria-Vung Tau branch of
the Bank for Investment and Development of Vietnam.
The
Government’s Decree 67/2014/ND-CP, taking effect from August 25 last year,
provides basic policies to encourage fishermen build high-capacity and steel
ships capable of fishing offshore, a practice that could earn fishermen
higher incomes and at the same time contribute to protecting the country’s
territorial waters.
As many
as 2,079 new off-shore fishing ships and 205 logistics ships will be built
under the Decree, according to the Ministry of Agriculture and Rural
Development.
Korean
companies launch affordable supermarkets to cater to Vietnamese workers
Two
Korean-owned companies in
Chang
Shin Vietnam Co., based in Vinh Cuu District in
Both the
companies are Korean-owned producers of sneakers.
Their
supermarkets are open exclusively to their workers, who have within their
reach a wide array of consumer goods at prices equivalent to or less
expensive than those at major supermarkets or conventional markets.
Their
opening hours – before and after workers begin and finish their shifts – also
save them the time and trouble of going to makeshift sidewalk markets.
Nguyen
Xuan Phuoc, a worker at Chang Shin Vietnam Co., told Tuoi Tre (Youth)
newspaper that it is harder to buy fresh vegetables and meat at sidewalk or
conventional markets after his late shifts.
Dao Tien
Minh, another worker, finds it considerably more comfortable and quicker to
pick up items at his company’s supermarket than grocery stores.
Similarly,
Nguyen Thi Thang, 52, another worker at Chang Shin, said she is assured of
the origins and quality of her purchases at the supermarket.
Dang
Tuan Tu, chair of Chang Shin Vietnam Co.’s Trade Union, toldTuoi Tre his
company spent over VND2 billion (US$93,205) on its 200-square-meter
supermarket.
“Our
company has also earmarked money to make sure its workers benefit from
quality, affordable buys,” he added.
The two
companies’ trade unions also allow the workers “debits” of between VND500,000
($23.3) and VND700,000 ($33) per month.
According
to a Tae Kwang Vina Co. supermarket staffer, the supermarket purchases goods
worth a total of VND700 million ($32,622) each month, including over 150
different items, to cater to their workers’ diverse demands.
The
supermarket also allows workers to mark their desired items on provided lists
of articles and prices before giving them to supermarket attendants or dropping
them into containers placed around the company.
As the
supermarket staffers pick the chosen items beforehand, it takes customers
only around five minutes to pick up their purchases after leaving work.
The
service has proved particularly helpful to workers, especially after their
overtime sessions, when they are too tired to shop.
“Improving
our workers’ lives does benefit our company, as they will grow attached to
their jobs, thus saving the company expenses and troubles recruiting new
employees,” said Dinh Sy Phuc, chair of Tae Kwang Vina Co.’s Trade Union.
According
to Nguyen Van Tuan, 27, a Tae Kwang Vina worker, his company also offers
delectable breakfast dishes for a mere VND2,000 ($0.1) apiece.
Bui Thi
Thu Thuy, another worker at Chang Shin, said the company also offers a tasty
VND4,000 breakfast, which workers, particularly migrant ones, find to be
excellent choices.
Vietnamese
enterprises should try to raise the bilateral trade turnover with
He
expressed his hope of doubling the present goal of US$10 billion by 2020 at the
meeting with Vietnamese enterprises currently investing in
Regarding
the establishment of a
When the
park opened, Vietnamese workers residing in
Garments
and textiles, wood, plastics, aqua-culture and food processing were the
country's best opportunities for investment in the Russian market, he said.
Tran Bac
Ha, chairman of the Bank for Investment and Development of Vietnam (BIDV),
said the light industrial park in
The
light industrial park will cover 100-120 ha and is expected to provide
production and trade assistance, product distribution, as well as legal and
logistics services.
There
are 19 Vietnamese enterprises operating in
According
to BIDV,
Fisheries
sector urged to improve production technologies
The
minister said that, though the fisheries industry made some remarkable
achievements, it has performed less than expected, especially in applying the
world's advanced technologies for the sector including the breeding.
He said
that research institutions had not made the best use of the state budget to
help developing the industry.
He
stressed the importance of improving technology available to Vietnamese
fishermen, who are responsible for 130,000 fishing boats at sea. However,
Workers
process tra fish at the An Do Duong seafood processing factory. Minister of
Agriculture and Rural Development Cao Duc Phat said that
The
country is now the world's third largest shrimp producer and among the top
four exporters of fish and sea products in the world. Today, Vietnamese
fishing products can be found in 170 markets around the globe.
However,
Tuan said, despite the large budget the Government spent on the industry's
programmes to study and apply new technologies, the results are insufficient,
inconsistent and not advanced enough to solve problems in the industry.
He said
the industry's technological level is still low and of poor quality. He said
that companies are still unable to utilise high-tech applications to develop
disease-resistant breeds, nor adapt to environmental changes.
In
general, the country is under-achieving in technological development and few
of the State-funded projects produced anything good enough to use in fishery
production, said Tuan.
Economic
restucturing ‘too slow'
Although
economic restructuring has been recognised as a vital task, the process
remains slow and requires greater efforts for a more comprehensive outcome,
according to experts.
The
Director of Central Institute for Economic Management (CIEM), Nguyen Dinh
Cung, noted at a conference on May 22 that the economic restructuring process
in
At the
conference on the monitoring and evaluation of the implementation of the
master plan for economic restructuring, many economists agreed with Cung. The
conference was organised by the institute within the framework of the
Restructuring for a Competitive Vietnam project.
Economists
Luu Bich Ho remarked that even after three years, the process remained far
from substantial restructuring.
CIEM's
former director Le Xuan Ba said that
According
to Nguyen Tu Anh of CIEM, the restructuring process during 2011-14 posted
achievements including a stable macro economy and improved business
environment and productivity.
However,
Anh pointed out, the public restructuring failed to focus on measures to
enhance investment efficiency, while the privatisation of State-owned
enterprises and resolution of bad debts were below expectations.
Rapid
rise in public debt remained a threat to macro-economic stability, according
to CIEM.
Experts
at the conference stressed that greater efforts were needed to implement the
economic restructuring comprehensively and thoroughly.
Where's
A local
conglomerate has started work on its beach and golf resort complex in a
central province, with its beach villa clusters to be the country’s first to
attain a seven-star standard.
Hanoi-based
FLC Group on May 23 began construction on their FLC Nhon Ly Beach and Golf
Resort complex, located in
The
300-hectare complex costs VND3.5 trillion (US$160.77 million) to build and is
expected to become operational in the first quarter of 2016.
It
boasts a seven-star beach villa cluster, luxury resorts, golf courses,
hotels, five-star restaurants, as well as an international convention center
and a lavish entertainment area.
The plot
which the complex is built on is adjacent to Eo Gio (
The
strait is said to be where people can behold the most gorgeous sunrises in
Ho Quoc
Dung, chair of the provincial People’s Committee, said the Nhon Ly resort
project, once operational, will help improve the province’s tourism sector,
lure investment, contribute substantially to the local coffers, and provide
jobs for locals.
A recent
research by Media Tenor shows that, besides
Vietnamese
companies, meanwhile, only need better media relations outside of the region to
capture investors’ attention, as companies in Europe and Africa are
constantly on the look-out to build relations in
During
the first four months of 2015,
Media
Tenor International, founded in 1993, provides media intelligence and helps
businesses optimise communications, improve stock market performance and
manage reputational risks. Media Tenor’s customer base extends to the public
sphere as well as the company also assists politicians and governments
in navigating public and media opinions.
Japanese
precision firm starts in Da Nang
Tokyo
Keiki Precision Technology Inc inaugurated its first plant outside
The
40-million-USD plant is the first to be operating in the 1,010-hectare park
in Hoa Vang District, 20km west of the city centre.
The
plant will manufacture electro-magnetic and hydraulic equipment, targeting to
export more than 50,000 digital directional valves per month for the
Asia-Pacific region.
According
to members of the managing board of the Hi-Tech Park, another Japanese
investor, Niwa Foundry company, a partner of Keiki company, also has begun
construction of its first engine castings plant, at a cost of US$30 million.
It's
scheduled to be put into operation in 2016.
Japanese
businesses have invested US$330 million in 68 projects in the city, employing
more than 27,000 people.
A
critical shortage of workers in the textile and clothing industry is
hampering
Late
last year the HCM City Department of Trade and Industry announced that for
2015 it was targeting an increase in the industry’s production value by 8.5%
over that of 2014 to US$1.7 billion.
To
accomplish the goal would require an additional 19,500 workers and roughly
500-1000 skilled workers such as engineers, technical experts and designers,
the department said.
Beyond
2015 the department anticipated an additional 20,250 workers would be needed
by 2020 to meet the demand for future growth brought about by regional and
global integration.
The
shortage of skilled labour is the most immediate hurdle facing industry
growth, said Bui Mai Huong, head of the Garment Technique Department of the
HCM City University of Technology (HUT).
We just
don’t have the capacity to train workers, Huong said— adding that HUT is only
capable of training 80 engineers per year.
Citywide
there are 11 vocational training centres, colleges and universities that are
capable of training 1,900 workers, including 200 with Bachelor of Arts
degrees, each year.
These
figures are just too far below those needed to meet the demand of the textile
and clothing industry.
This
sentiment has been echoed by many of the city’s textile and clothing business
leaders who say manufacturers do not yet have the skilled labour forces
required to compete for the high-end manufacturing contracts.
We are
always taking on new employees with no steady and stable work force, said one
factory owner, and the high employee turnover is holding us back from getting
production to the quality levels we need to be at.
Stiff
competition with new industrial parks in almost all provinces in the central
and northern regions and the higher costs of living in
Many
workers are finding they can enjoy similar income and working conditions at
industrial parks in their hometown, where the cost of living is much less.
Irradiation
costs make lychee exports difficult
The US and
Australia will import Vietnamese lychees, but local businesses must bear the
high cost of meeting these countries' irradiation requirements, officials
said at a meeting earlier this month.
At the
meeting on finding more markets for local products, Le Van Anh, head of the
vegetable and fruit export-import joint stock company No. 1, said it would
not be easy to make Vietnamese lychees compatible with US and Australian
markets.
The
Participants
at the event agreed to enhance the quality of Vietnamese agricultural
products to meet requirements from high-end, competitive markets. So far
seven firms are licensed to do so.
This
year's lychee crop will be transported to southern
Businesses
will have to bear the cost of transporting products to the south. Then the
irradiation itself will cost between 80 cents and US$1 per kg.
Hoang
Trung, deputy head of the Department of Plant Protection, said it would be
difficult to expect
Officials
estimate that domestic consumption will account for about 60% of the total
production of lychees, and farmers and businesses will still have to rely
heavily on
At the
same time, Anh said authorities should work on clearance procedures to make
sure lychees won't be caught up at the border.
But
officials say they hope
The
Australian Department of Agriculture approved the importation of fresh
lychees from
Environmental
tax causes fuel prices to soar in Vietnam
It is
said that we should never tell the same lie twice, but this seems to be the
case of the argument that a“higher environmental tax does not mean higher
fuel prices,” which was put forward during both of
The
Ministry of Industry and Trade and its finance counterpart said the price
hike was inevitable thanks to the rise on the global market, and that the new
VND3,000 per liter environmental tax is not to blame.
The tax
used to be only VND1,000 before the higher rate was applied on May 1.
Along
with the new environmental tax, the Ministry of Finance cut the fuel import duty
to 20% from 35%, saying it would thus help keep retail fuel prices unchanged.
But the
two price hikes this month prove the opposite.
Every
liter of petrol imported into
The
reduced import duty therefore helped lower the base petrol price by VND1,691
a liter. Retail prices will be determined on the basis of this base rate.
But when
the extra VND2,000 a liter environmental tax is counted, the base price
increases by VND309 a liter, which means the higher environmental tax does
affect retail price.
The
Southeast Asian country consumes some 38 million liters of fuel on a daily
basis, according to the Vietnam Fuel Association.
With a
population of 90 million, each Vietnamese spends VND8,626 on their daily
usage of 0.42 liter of fuel, or a monthly sum of VND258,780.
This is
equal to some seven percent of their monthly income, given a GDP per capita
of US$169 a month, according to data by the General Statistics Office.
This
figure is high compared to other Southeast Asian countries, where fuel costs
only account for 0.5 – 3.5% of individual income.
Sandeep
Mahajan, lead economist of the World Bank Group in
But
Vietnamese consumers and businesses always fail to enjoy lower fuel prices
even when global prices are slumping.
When
global crude oil shrank to below $60 a barrel last year,
The
finance ministry said the tax increase was meant to make up for the losses to
the state budget caused by declining oil prices.
When Vietnam
is forced to reduce the fuel import duties under the integration roadmap of
several trade pacts, the ministry came up with the higher environmental tax
rate for no purpose other than to offset the loss to state coffers.
These
tax policies have prevented local consumers from enjoying reasonable fuel
prices, whereas firms face difficulty in planning their business with the
volatile fuel costs.
Local
experts now wonder whom the fuel management policies benefit, when both the
public and companies are hurt.
Pesticide
traces in Vietnamese tea exceeds limits
Tea is
the world’s most popular beverage, often touted for its healthful properties,
however the Ministry of Agriculture and Rural Development (MARD) suspects
some Vietnamese black tea may be contaminated.
MARD has
announced it will investigate Vietnamese black tea producers following
reports by Taiwanese officials of exported tea containing pesticide and
dioxin residue exceeding mandated thresholds.
During
April,
The
investigation by MARD will retrace the origin of the product, analyse samples
as part of a concerted effort to determine if there were any violations, and
if so, devise an appropriate remedy.
The
investigation is expected to be completed and the results reported to MARD
Minister Cao Duc Phat on or before June 30.
RoK
to cut taxes on farm goods
According
to the VCCI, trade turnover between
In 2007,
The VCCI
said among the FTAs Viet Nam had signed, the Korean deal was the most
advantageous in terms of exports, imports and investments. Thus, a direct FTA
with the RoK would definitely bring more benefits.
With 17
chapters, 208 articles, 15 appendices and one agreement, the deal was signed
by Minister of Industry and Trade Vu Huy Hoang and RoK Minister of Trade,
Industry and Energy Yoon Sang-jick in Ha Noi on May 5.
The
The
information was shared at a conference to inform Vietnamese businesses about
the recently signed FTA between the two countries on Thursday, organised by
the Viet Nam Chamber of Commerce and Industry (VCCI).
The VCCI
said the current export taxes applied to these products in the RoK stood from
241 to 420 per cent, but under the Viet Nam-Korean Free Trade Agreement
(VKFTA) signed on May 5, taxes for these products would be held at zero per
cent for the next 10 years.
This
would give
Hong
Sun, secretary general of the Korea Chamber of Business in
At the
same time,
The
tariff on rambutan's will also be cut from the current 611.5 per cent to no
less than 20 per cent from January 1, 2016. The export tax on tropical fruit
like pineapple, guava, mango and mangosteen will also be dropped in the next
ten years.
The RoK
will eliminate tariffs for seven types of shrimps imported from
Currently,
According
to the Viet Nam Association of Seafood Exporters and Producers, the South Korean
market is the fifth largest consumer of Vietnamese shrimp, after the
In
return,
Chamber
secretary Hong Sun said Korean companies were eager to invest in
He said
The RoK
was experienced in technology and logistics, he said, adding that there
should be a chance for future co-operation between the two sides.
However,
MoIT official Tuyen said it would not be easy to enter the RoK market if
local enterprises were not well prepared.
Instead,
Tuyen advised local enterprises to co-operate with big Korean companies to
seek advice about quarantine barriers. He said customs procedures and the RoK
market were "very complicated", making it difficult for foreign
brands to enter a market where local people only trusted their own products
or well-known international brands.
Tuyen
said Vietnamese enterprises should find established partners for their
exports, such as Lotte Mart, Emart and Costco.
Chairman
of the Viet Nam Beekeepers Association Dinh Quyet Tam said he did not expect
much from the FTA, saying the RoK would enforce stricter quarantine
regulations on products. Tam gave an example that under the FTA signed with
Nguyen
Ton Quyen, general secretary of the Viet Nam Timber and Forest Products
Association (Vifores), said the agreement would also bring stiff competition
from the RoK with advanced technology and machinery, and lower prices. Quyen
said that many Vietnamese enterprises would lose out.
Fisheries
sector urged to improve production technologies
The
minister said that, though the fisheries industry made some remarkable
achievements, it has performed less than expected, especially in applying the
world's advanced technologies for the sector including the breeding.
He said
that research institutions had not made the best use of the state budget to
help developing the industry.
He
stressed the importance of improving technology available to Vietnamese
fishermen, who are responsible for 130,000 fishing boats at sea. However,
The
country is now the world's third largest shrimp producer and among the top
four exporters of fish and sea products in the world. Today, Vietnamese
fishing products can be found in 170 markets around the globe.
However,
Tuan said, despite the large budget the Government spent on the industry's
programmes to study and apply new technologies, the results are insufficient,
inconsistent and not advanced enough to solve problems in the industry.
He said
the industry's technological level is still low and of poor quality. He said
that companies are still unable to utilise high-tech applications to develop
disease-resistant breeds, nor adapt to environmental changes.
In
general, the country is under-achieving in technological development and few
of the State-funded projects produced anything good enough to use in fishery
production, said Tuan.
Interest
rates on long - and medium-term loans should be lowered by at least 1.5-2 per
cent to speed up credit growth and help companies revive, National Assembly
delegates from
At a
recent meeting the lawmakers said the State Bank of Viet Nam (SBV) had
directed lenders to keep interest rates steady and try to reduce them by a
further 1 or 1.5 per cent to stimulate credit growth and boost economic
development.
But
interest rates on long- and medium-term loans stood at rather high levels
that many firms could not afford, they said.
Dr. Tran
Du Lich, also a member of the National Monetary and Financial Policy Advisory
Council, said credit demand would rise this year, but banks needed to cut
interest rates to ensure smooth credit flow.
"Inflation
this year has been predicted at only 3 per cent. Yet firms are having to pay
interest of 11 per cent for long- and medium-term loans, which is irrational.
The lending rate should be cut to 9 or 10 per cent [so that] local businesses
can afford them.
"With
the current 5.5 per cent ceiling on deposit interest rates, the lenders'
profit will not be affected if they reduce the interest [on] loans.
"The
lenders are also enjoying very high interest rates on personal loans (14-15
per cent for secured loans and 34-35 per cent for unsecured)."
A report
by the SBV's
Nguyen
Hoang Minh, deputy director of the branch, said these rates were for non-production
sectors while lending for production and business averaged 9 per cent
interest.
Most
banks offer deposit interest of only 4.44-5.02 per cent for under six months,
5.3-5.99 per cent for six to 12 months and 6.03-6.94 per cent for over a
year.
Lich
said the sharp cuts in interest on short-term deposits forced people to shift
to long-term deposits because other asset classes had yet to show clear signs
of recovery.
This
meant banks had plenty of long-term funds to lend and could easily cut loan
interest rates, he said.
Truong
Trong Nghia, a lawyer by profession, stressed the need for caution while
lending to the property sector to avoid a bubble.
Tasco
largest investor in Thang Long
Thang
Long Group Joint Stock Company (Thang Long Group) yesterday announced Tasco
Joint Stock Company (Tasco) would become the company's largest investor.
Tasco
would then benefit from construction projects that Thang Long Group
participated in as the major contractor.
Tasco
purchased 11 millon out of 20 million shares that Thang Long Group offered to
investors under private placement from April 8 to May 14, raising its stakes
in Thang Long Group to 35.4 per cent.
Thang
Long Group sold more than 11.9 million shares at a price of VND12,075 per
share and received net revenue of VND143.7 billion ($6.65 million).
Pham
Quang Dung, the president of both companies' boards of directors, and his
relatives also increased their stake to 24 per cent of Thang Long Group JSC's
charter capital.
CII
reduces foreign ownership
The HCM
Stock Exchange (HOSE) yesterday announced that foreign ownership in the HCM
City Infrastructure Investment Joint Stock Company (CII) would be reduced
from 42.68 per cent to 37.83 per cent from May 21.
The
decision was made as CII converted its bonds into shares to raise charter
capital.
In the
first phase, bondholders signed up to convert 783,148 bonds into shares at a
price of VND11,000 per share and conversion rate of 1:90.9 (a single share
was equal 90.9 bonds).
CII had
to issue 71.19 million shares to convert its bonds for bondholders in the
first phase.
After
the first phase was completed, nearly 300,000 bonds were not converted, worth
nearly VND300 billion ($13.9 million). CII will have to issue 27.15 million
shares at VND11,000 to convert these bonds.
Last
Tuesday, HOSE announced that the deadline for CII bondholders to register in
the second phase to convert bonds into shares was June 23.
HBI
opens housing, commercial complex
HBI
company made its debut in its
The
project covers an area of 42,000 sq.m, has over 1,000 sq. metres of green
space and infrastructure facilities, including apartments, luxury villas,
offices available for leasing and a trade centre.
The
project is slated to become operational by the end of 2017.
Nguyen
Hong Ngoc, the general director of HBI company, which is the owner of the
project, said the property market, in general, and in the capital city, in
particular, had undergone a dramatic change, which presents an opportunity
for property developers.
Also at
the ceremony, HBI signed strategic cooperation agreements with local partners
to participate in the projects, including M.I.K corporation, VP Bank and STDA.
Railway
sector plans restructuring
Vietnam
Railway Corporation (VNRC) Deputy Director Doan Duy Hoach recently spoke with
the Lao dong (Labour) Newspaper about plans to restructure the railway
sector.
Hoach
said after completing the VNRC restructuring plan for the period 2011-15, the
corporation sets as a key goal to focus its activities on organising
effective management, exploitation and business of the railway infrastructure
and improving sources to collect fees for railway services.
According
to the deputy director, the railway sector has set a target to reach 4.34
percent of the market share of the transport of interprovincial goods and 3.4
percent of the passenger transport market share by 2020. The quality of rail
transport is to be improved, especially at stations and transport spots.
He said
the railway infrastructure system will be developed, with a focus on
upgrading and modernising the existing North-South railway route. Priorities
would then be given to complete key projects to handle choke-points on the
The
corporation also plans to complete feasible research plans for a high speed
railway system on the north-south route and increase the transport of
containers by railway to ease the overload on road transport during this
period, he said.
Deputy
Director Hoach said the VNRC is calling upon investors to research and
propose investment co-operation projects on depot systems at railway stations
or concessions to take advantage of branch routes.
According
to him, some pilot projects are to be implemented at depots, as well as at
warehouses at Yen Vien station in
He added
that at the moment, 28 enterprises have registered to participate in the
transport business.
According
to Hoach, mobilising capital and strength from individual or organisations in
implementation of some public services would help improve the quality of
services in the railway sector.
Source : VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
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Thứ Tư, 27 tháng 5, 2015
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