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BUSINESS IN BRIEF 28/5
The
Vietnam Consulate General to
The
event, which took place at the
It also
provided an opportunity to meet and network with local tour agents, airlines,
and media in hopes of boosting arrivals from the Far East Russian market.
All told
the event attracted 268 delegations from 20 countries around the globe,
including
First
containers of lychee go to the
The
first containers of
Nguyen
Huu Dat, Director of the Post-Export Plant Quarantine Centre No 2 under the
MARD’s Plant Protection Department (PPD), said the Anh Duong Sao Company will
ship their first consignments of lychee to the
Meanwhile,
the first containers to
More
shipments are expected to follow, Dat said.
Hoang
Trung, Deputy Head of the PPD, said that enterprises are completing necessary
procedures, including inviting Australian and American experts to examine the
quality of fruits, for exports.
Once
going through to such tough markets as the
There
are only four companies participating in collecting and exporting lychee to
the
The
total harvested output of lychees in the largest lychee growing provinces of
Bac Giang and Hai Duong is likely to hit 200,000 tonnes in the 2015 crop,
according to the MARD.
Of the
total amount, 60 percent or 120,000 tonnes will be consumed domestically
while the remaining 80,000 tonnes will be left for exports.
Besides
the traditional Chinese market, Vietnamese lychee are expected to go to
The
Ministry of Industry and Trade is checking stories in
According
to the Malaysian Ministry of International Trade and Industry, the countries
and territories are Taiwan, France, Hong Kong, Japan, China, Finland,
Indonesia, South Korea and Viet Nam.
The
Malaysian investigation is in response to a petition from a domestic producer
calling for the imposition of anti-dumping duty on imports of cold rolled
stainless steel.
The
Malaysian maker said that the steel was being dumped in
A
representative from the Vietnamese Ministry of Industry and Trade, said
Vietnamese cold rolled stainless steel was being investigated because its
export prices to
Statistics
from
A set of
questionnaires has been sent to importers, producers, exporters and
associations by the Ministry of Industry and May 28 set as the deadline for
providing additional evidence. Six Vietnamese companies are under investigation.
In
accordance with the Countervailing and Anti-Dumping Duties Act 1993 and its
related regulations, a preliminary determination will be made within 120 days
from the date of initiation.
Late
last year,
Statistics
from the Viet Nam Chamber of Commerce and Industry showed that as of October,
2014,
Real
estate expo opens in
Many
real estate projects offering apartments and housing lots at affordable
prices, around 1 billion VND (47,000 USD) each, are being introduced at the
2015 Home Expo, which opened in Ho Chi Minh City on May 27.
The expo
aims to create a transparent market in order to promote property sales as
well as investment in the field.
Chairman
of the Vietnam Real Estate Association Nguyen Tran
Director
of the municipal Department of Construction Tran Trong Tuan said the event
was held in the context of positive signs in the economy. The city has over
11,000 start-up businesses in the past five months, including more than 2,600
operating in the field of construction and real estate.
Organised
by the municipal Real Estate Association and Trade Promotion and Service JSC,
the expo will run until May 31.
SBV
suspends GP Bank leaders
The
State Bank of Vietnam (SBV) announced yesterday that it recently suspended
the rights and obligations of the representatives of Global Petroleum Joint
Stock Commercial Bank (GP Bank).
The SBV
said that pursuant to the Law on Credit Institutions and a review of GP
Bank's management and administration status, it decided to suspend the rights
and obligations of Ta Ba Long from two positions: the chairmanship and
membership of the bank's board of directors.
The SBV
also suspended the rights and obligations of Doan Van An as deputy chairman
and member of the board of directors as well as Ta Thu Thuy as member of the
board.
To
ensure the smooth operation of GP Bank, the SBV has decided to appoint Tran
Thi Le Nga as its representative, including legal representative, from April
8, 2015. Nga was Chief Supervisor of VietinBank.
Among
the weak banks that had been urged since 2012 to restructure, GP Bank was the
only one that failed to comply.
Agriculture
exports earn less
This is
a year-on-year decrease of 7.3 per cent.
In May
alone, the sector recorded an export turnover of $2.37 billion.
Of the
total, seafood exports contributed $2.41 billion in the five-month period,
down 17 per cent in comparison with the same period last year. Seafood
exports saw a strong decline in the
Seafood
exports to
However,
seafood exports to
Farm
produce worth $5.62 billion were exported in the five-month period, down 7.4
per cent in comparison with the same period last year. Rice and coffee saw
the largest decline of 14.6 per cent and 38 per cent, respectively.
Meanwhile,
the export value of forest products increased year-on-year by seven per cent
to touch $2.69 billion.
Vietnamese
people spend over US$12 mil daily on car imports
It means
that each day
Of the
total imported cars, 847 are tourism cars, 75 are 9-seater cars while the
remaining are trucks and specialized vehicles.
The
department said from the beginning of the year until May 15, total imported
CBUs reached 40,465 worth US$10.6 billion, overall a two-fold increase in
quantity, and a three-fold surge in value over the corresponding period.
Ministry
cuts interest on State investment
In a
move to ease businesses' access to loans, the Ministry of Finance this week
cut interest rates on State investment and export credit.
According
to the ministry's newly issued Circular 76/2015/TT-BTC, effective from May
19, 2015, interest rate on State investment credit has been cut by 1.05 per
cent to 8.55 per cent per year, while interest rate on State export credit
has been reduced by 0.3 per cent to 6.9 per cent per year.
The
interest rates, which stood at 12 per cent in 2012, have been adjusted down
consecutively for the past three years.
The
circular replaces Circular 189/2014/TT-BTC, dated December 11, 2014, on
interest rates on State investment credit, export credit, and interest rate
difference calculated for after-investment support.
However,
businesses said that only a few firms qualified for the low interest rates
while many others had to continue paying high interest rates on bank loans.
They
noted that interest rates commonly applied to businesses currently remained
too high, averaging at 8-8.5 per cent for short-term loans and 10-11 per cent
for long-term loans, causing them difficulty in the context of several power
and petrol price hikes as well as the recent devaluation of the dong.
Director
of a company, who declined to be named, said that late last year, his company
had expected to break even this year by borrowing bank loans to procure
modern equipment.
However,
he said, his company failed to meet its target and continuously made losses
this year because of several consecutive power and petrol price hikes in the
early months of this year, while medium- and long-term interest rates did not
decrease much and remained high at 11 per cent.
He
remarked that although petrol price this year surged by VND4,800 per litre
and electricity costs rose 7.5 per cent, his company did not increase its
sale prices for fear of losing customers.
Businesses
said that lending rates in
Vietnamese
firms can successfully compete against other countries if the interest rate
remains roughly at 7 per cent on short-term loans and 9 per cent on long-term
loans, they said.
However,
a representative of Asia Commercial Bank said that the rate of 11 per cent
was mainly applicable to non-production borrowers. State-owned commercial
banks currently lend at 9 per cent per year.
Thai
tourism, AirAsia join hands on marketing push
The
Tourism Authority of Thailand and budget carrier AirAsia are organising the
Green Season campaign to stimulate travel to
The
campaign features a road show in several Southeast and East Asian countries,
starting with
Wiboon
Nimitrwanich of TAT said: "The co-operation between TAT and AirASia as
well as leading department stores and other partners will result in a
high-value travel and shopping experience in
Pornpun
Ratanapitakkul, Indochina marketing manager of Thai AirAsia, said
Top
architects, property developers receive awards
BCI Asia
gave away the BCI Asia Top 10 Awards for Vietnamese architectural firms and
property developers at a ceremony in
The
portfolios of the architecture firms contain US$3.45 billion worth of
properties construction of which is scheduled to start this year, while the
portfolios of the top developers were worth close to $1 billion.
The BCI
Asia Top 10 Developers Award for 2015 were given to BIM Group, Dat Xanh Real
Estate Service and Construction Joint Stock Company, Him Lam Corporation,
Hung Thinh Real Estate Business Investment Corporation, Keppel Land Vietnam, Novaland
Investment Group Corporation, Phu My Hung Development Corporation, Thao Dien
Investment Joint Stock Company, Van Phu Invest Joint Stock Company, and
Vingroup Joint Stock Company.
The BCI
Asia Awards are annually given to companies in seven Asian jurisdictions —
They are
aimed at encouraging socially-responsible architecture and serve as a
platform for domestic and international networking by elite architecture
firms, property developers, manufacturers, and service providers.
OCB's
profit drops due to risk management budget
The
Orient Commercial Bank (OCB) yesterday reported that it recorded a pre-tax
profit of only VND16 billion (US$740,000) in the first quarter of this year.
The fall
in pre-tax profits was caused by a sharp increase in OCB's financial risk
management budget, which rose fourfold to VND88 billion ($4 million) in the
first quarter. The bank's total pre-tax profit, however, was VND104 billion
($4.8 million), an increase of 76 per cent.
Thus,
the bank's after-tax profit was only VND13 billion ($600,000), half of last
year's number.
In the
first quarter, OCB achieved a credit growth rate of 8.07 per cent with total
outstanding loans of VND23 trillion ($1 billion). Customer deposits rose by
3.4 per cent to VND24.7 trillion ($1.14 billion) and total assets declined by
2.9 per cent to VND39 trillion ($1.8 billion).
The
bank's revenue for the first quarter increased by 4.3 per cent to VND243
billion ($11.2 million) over last year. Some sectors profited, including
services, securities trading and securities investment.
Hopes
rise as real-estate market improves
Managing
director Neal Macgregor told a press briefing on the
"
"The
quantitative easing throughout the region will benefit the respective
domestic economies and also encourage foreign investment into other regional
targets."
Recently
outward flow of capital had accelerated, noticeably from
The amended
Law on Housing effective from July 1, 2015, which would enable overseas
Vietnamese and foreigners to own houses in the country, was expected to
attract a new wave of investment.
Singaporeans
had shown interest, especially in projects developed by companies from their
country.
"
"In
1995 it was around 20 per cent."
The low
rate was helping revive the market.
The
shrinking of household size from an average of 4.7 people in 1995 to 3.6 last
year had increased demand for housing.
"As
younger people gain greater independence, there has been a gradual erosion of
the three-generation household, the effect has been to fuel residential
apartment development."
The
country's urbanisation rate, from less than 20 per cent in 1995 to 34 per
cent last year and its rapidly growing middle class — expected to reach 33
million by 2020 from 12 million in 2012 — were positive factors for the
property market.
Stock
exchanges to manage SOE shares
The
Ministry of Finance, currently drafting a circular to regulate the sale of
share lots offered by equitising State-owned enterprises (SOE), said it hopes
to finalise the draft by the end of the month.
In
recent years, the Government has encouraged SOEs to equitise, meaning many of
these companies are entering the stock market. As they enter the market, they
must auction off their stock packages in large share lots.
Before
the draft is finalised, some of its current content was made public in order
to garner a response and constructive feedback from investors and traders in
Firstly,
the circular would govern any SOE either unlisted on the stock market, or
unregistered for trading on the Unlisted Public Company Market (UPCOM).
The
draft circular will likely require investors interested in an SOE's share lot
to purchase the entire package in the form of a public placement during the
auction. Just how SOEs, one-member companies and management agencies, such as
ministries and provincial people's committees, will ensure the transparency
and fairness of these auctions has not been enumerated.
The
management of share lot auctions would likely fall on the HCM City Stock
Exchange and the Ha Noi Stock Exchange. They would be responsible for setting
and managing certain basics like the number of lots offered in an auction,
the number of shares in each lot, the initial price of the offered share lot,
qualifications for the investor and solutions to settle problems that might
arise.
The
initial price of a share lot, according to the Ministry's recent round of
proposals, should be calculated off share prices set by an independent
organisation or company. The costs involved in setting share prices would be
covered by the Fund for Business Development, launched in 2002 to support the
equitisation process of SOEs.
SOEs
entering the market will have to decide how big they want their share lots to
be. Besides taking into account market conditions, proposals have said that
an SOE be limited to offering only one lot per auction and that each lot is
at least 5 per cent of the enterprise's chartered capital.
If an
SOE decides it wants to sells its shares at a value lower than the
independently set price, or sell off its stakes in financial institutions or
commercial banks, both sellers and buyers must stay in accordance with
regulations set out in Decision 51/2014/QD-TTg issued on September 15.
If an
auction somehow ends in a stalemate between two potential buyers, it is
proposed that the draft circular would require that a private auction occur
between those investors to conclude the matter.
Rental
growth slows on new logistics services across Asia-Pacific region
In the
first quarter this year the Asia Pacific region saw demand for logistics
space being driven by third party logistics suppliers (3PLs), e-commerce, and
automotive manufacturers, according to a report released by property
consultant CBRE last week.
There is
a projected 65.6 million square feet of new logistics warehouse space being
built in 2015, and a majority of this will be in Seoul (20 per cent),
Shanghai (20 per cent), and Tokyo (17 per cent).
This
year's upcoming supply pipeline may result in rental rates moderating if
there are signs of slowing demand. Coming off a record year of warehouse
completion, the
The
steady increase in new supply continued to dampen the strong regional rental
growth witnessed over the past four years. The CBRE Asia Pacific Logistics
Rental Index increased by 1.1 per cent year-on-year in Q1 2015, the slowest
annual growth since Q1 2010.
The
These
economies continue to offer lower costs and cheaper labour and as a result
are attracting electronics and textile production to relocate from their
traditional base in
Due to favorable
exchange rates,
Subdued
manufacturing conditions led to modest rental increases in factory rents across
Private
consumption is forecast to improve in most Asia Pacific markets this year.
Consumption
patterns in
Figures
from the US-based not-to-profit professional organisation for Project
Management Institute (PMI) in March 2015 all show expansion, with external
demand remaining healthy.
While
there were reports of a slight fall in employment in
Darren
Benson, executive director, industrial & logistics, brokerage services,
CBRE Asia, said: "The industrial and logistics sector—in
"In
particular, we see that e-commerce is having a changing effect on most
markets, especially
Putting
firms in the dock
The amended
Penal Code draft consists of some major changes which are directly relevant
to the business community.
One of
them – currently the subject of a heated debate – is should businesses, as
legal entities, be subject to criminal proceedings. To date, criminal acts
must always be directed at personal individuals in order to come in line with
the current laws.
The
amended Penal Code draft has, however, tried to address the criminal
behaviour of businesses by defining them as individual legal entities. The question
of what sanctions to apply, or whether businesses should be regarded as legal
entities subject to criminal proceedings at all, has sparked a hot debate,
with both lawyers and members of the public weighing in with their opinions.
According
to Nguyen Van Hoan, deputy head of the Department of Criminal and
Administrative Law under the Ministry of Justice, it is important to allow
for the criminal liability of businesses as legal entities because violations
have become increasingly widespread in recent years, causing serious
consequences economically and socially.
For
example, in past years there have been rising cases where businesses
deliberately discharged wastewater into the environment, with huge negative
impacts on the health and means of living for people in the surrounding
areas. However, under current regulations such violators are not subject to
criminal proceedings, and will instead only incur meagre fines – the
equivalent to a rap on the knuckles – but nothing approaching a meaningful
deterrent to reoffending.
Meanwhile,
when those affected are seeking compensation they must provide concrete
evidence proving how much damage they incurred and how this has been
evaluated. Using civil law to handle these cases is often time-consuming and
ends with claimants coming away empty-handed.
Within
this context, the amended Penal Code draft has proposed a range of sanctions
applicable to misdeeds by businesses, including fines; temporarily suspending
business licences, or temporarily suspending the operation of businesses;
permanently revoking business licences, or suspending their operations;
or barring offending businesses from operating in certain areas; or barring
them from raising capital.
Lawyer
Le Viet Ha, director of Vinh Duc Law & Associates said that 119 member
countries of the International Convention on Anti-Corruption had regulated
the criminal liabilities of business legal entities. As such,
The
proposed new sanctions have, however, generated a backlash of concern. For
example, in cases where a business faces having its licence taken back
permanently, this would also affect the lives of its labourers, who may be
completely blameless in the firm’s misconduct. In such a case, objectors have
asked, who will bear the responsibility of creating new jobs or paying
compensation to the out-of-work labourers?
First
project opens in Da Nang Hi-tech Park
Tokyo
Keiki Precision Technology Inc. inaugurated its first plant outside
The
US$40-million plant is the first to being 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.
The city
has reserved a 100-hectare industrial park for Japanese businesses and a
Japanese Culture Centre, as well as more favourable conditions and priority
offerings for Japanese investors.
Exports
from Japanese enterprises accounted for 37 per cent of the city's total
imports, while 30 per cent of the city's industrial production value comes
from Japanese FDI projects.
Thuong
Dinh Footwear Company to hold public offering in June
The Ha
Noi Stock Exchange (HNX) will organise an initial public offerings (IPO) for
Thuong Dinh Footwear One on June 8.
The
company will offer 1.9 million shares with an initial price of VND10,000 per
share. These shares are valued at 20.46 per cent of the company's chartered
capital post-equitisation.
The
company will offer 1.9 million shares with an initial price of VND10,000 per
share. These shares are valued at 20.46 per cent of the company's chartered
capital post-equitisation.
The
company expects a chartered capital of VND93 billion ($4.3 million) after
IPO, with 36 per cent of stakes held by the state, 23.54 per cent held by its
employees, 20 per cent purchased by strategic investors and 20.46 per cent
sold on the market.
The
company has stakes in two other firms in Ha Noi - 86.85 per cent of stakes in
the Ha Noi Rubber Joint Stock Company and 18.67 per cent of stakes in Ha Noi
Truc Bach Paper Joint Stock Company.
Thuong
Dinh Footwear Company produces sneakers, sport shoes, sandals and slippers.
The company's sales volume averaged over 3.9 million pairs a year from 2012
to 2014.
The
company's after-tax profit in 2013 and 2014 were VND930 million ($42,649) and
VND3.67 billion ($168,000) respectively.
Partnership
brings “affordable luxury” to capital city
HBI
Joint Stock Company last week signed co-operation agreements with a range of
prestigious partners to co-develop the
Accordingly,
MIK will be the project’s developer, VPBank will become financial supporter
and STDA will be the exclusive distributor for the
Located
on a 42,000 square metre site in Thanh Xuan district,
The
project will be integrated with a school, four-season swimming pool,
healthcare services, a beauty spa, a gym, a supermarket and spacious parking
allotments.
Ranging
from 65 to 174 square metres, each apartment is designed to modern and eco-friendly
standards.
“With
our commitment to choose inclusive and professional partners to co-develop
this project, we believe that we will create the highest quality apartments
for our residents.
Ngoc
said that
According
to Ngoc, the project was designed by the Singaporean CPG, the contractor is
Coteccons, while the Australian PTW Architect and the French NKB Archi is
responsible for the landscape design.
Drawing
from a wide range of project experience in
MIK is
currently the developer of a range of projects such as Villa Park, Imperia An
Phu, and The Park Residence in
Electricity,
petrol price hike sends businesses to perfunctory operation
Production
and trade activities briefly returned to be eventful as the economy showed
signs of recovery early this year. However after electricity price was
increased 7.5 percent in March and petrol price was lifted twice in May, many
businesses have operated moderately to keep customers.
In May,
petrol and diesel prices were raised to VND20,430 and VND500 a liter
respectively.
Mr.
Nguyen Trung Binh, director of Hoang Thanh Trade Production Company in Binh
Tan District, said that the rise in gas, electricity and petrol prices has
led material costs to move upwards. Meantime, the company has met with
difficulties in consuming its plastic household appliances because of weak
purchasing power.
The
company now operates moderately, conducts layoffs and tightens expenditure.
If the prices continue increasing, it might have to accept less profit or
non-profit to keep customers, Binh added.
Tran
Thanh Hong, director general of Thien Hong Phat Trade Production in District
12 said that their wooden products had mainly been exported abroad or sold to
other provinces. the fuel and electricity price rise has sent additional
costs to exceed 20 percent.
The
company belongs to small and medium scale group and faces severe competition
from other wood companies in surrounding nations. It is impossible for the
company to raise selling prices, therefore it has accepted less profit to
make up costs, according to director Hong.
They are
operating moderately with traditional orders and waiting for upcoming price
changes, Hong added.
Most
businesses said that temporary measures for up electricity and petrol prices
were cost reduction, energy saving and layoffs.
Fuel and
power prices should not change continuously and highly surge as present.
Authorized agencies should have solutions to stabilize the prices in
relatively long periods, they said.
Economic
expert Nguyen Duc Minh Hai from the
Authorized
agencies should have measures to prevent an excessive increase of goods and
service prices, Hai said.
The
Price Management Agency under the Ministry of Finance has proposed finance
departments to work with relevant agencies to intensify price management and
stabilization in the market, said the agency head Nguyen Anh Tuan.
They
should closely follow supply and demand to timely supply provincial and
municipal people’s committees with solutions to stabilize the prices.
Inspection
will be strengthened over essential items such as milk products for below six
year old children or medicines, cement, steel and gas and transport fee also.
Relevant
agencies should keep a close eye on the price declaration of subsidized
products to prevent irrational price increase.
Vietnam textile and garment exports see strong growth
in Q1
The
export revenue of garment and textile products in the first quarter of 2015
was estimated at US$4.85 billion, an increase of 10.5% compared to the same
period last year.
According
to statistics from the Industry and Trade Information Centre, under the
Ministry of Industry and Trade, traditional markets for
The
2015 is
expected to open up more opportunities for
Although
there are many opportunities for export growth, textile companies still face
many difficulties and challenges.
The
added value of
Currently,
the textile sector depends largely on imported materials. Thus, more
investment in the development of materials would help increase the
localisation rate of the sector, increase the value of the products and
reduce the trade deficit. The textile industry is expected to achieve a
localisation rate of 60% by 2015 and 70% by 2020.
AB
InBev brewery commissioned
nheuser-Busch
InBev Vietnam Brewery Co. Ltd. (AB InBev) on May 21 commissioned a factory at
The
brewery can turn out 50 million liters of beer a year in the first phase and
will double the capacity in the next phase.
The
brewery’s products will be sold in
Ricardo
Vasques, general director of AB InBev Vietnam, said 99% of the employees at
the brewery in Binh Duong Province are Vietnamese and that the company has
invested in the facility to cash in on growing demand for beer in this
market.
Nguyen
Van Viet, chairman of the Vietnam Beer, Alcohol and Beverage Association,
told the Daily at the brewery that
Replacements
of old condos slow
Reconstruction
of old apartment buildings in HCMC is moving at a snail’s pace due to a lack
of supporting policies for real estate enterprises, according to the HCMC
Real Estate Association (HoREA).
HCMC now
has around 200 deteriorating apartment buildings that have been in use for
over 50 years, including those at
Besides,
61 new condo buildings with floor space of over 900,000 square meters and
around 9,870 units will be built to replace the old ones in the city.
In the
past five years, the city has seen ten condo buildings with total floor space
of 40,000 square meters demolished and a new resettlement apartment building,
Tan Phuoc 3, in District 11 has been put into use with 440 families,
according to the HCMC Department of Construction.
In
addition, district-level authorities have inspected 35 old condo buildings to
work out plans to repair and construct new buildings for replacement.
In a
document sent to the Ministry of Construction to comment on a draft decree on
upgrade and construction of apartment buildings, HoREA said building new
apartment buildings in the city has been slow, making life tough for those
living in shabby condo buildings.
HoREA
said realty companies were not keen to invest in those projects as it took
them too much time to negotiate with and compensate the families living in
old buildings.
For
instance, around 15 households have refused to move out of the crumbling
condo building on
The
ministry has passed around the draft decree for comment with an aim to create
favorable conditions for companies to participate in condo reconstruction
projects.
However,
HoREA said the draft decree lacked regulations governing rights and
responsibilities of households in case their apartment buildings are
dismantled to make room for new buildings. Therefore, the association
proposed the ministry find effective measures to force households living in
crumbling buildings move out to facilitate demolition and reconstruction.
If these
regulations are in place, real estate enterprises will be eager to invest in
condo renovation projects.
HoREA
suggested legitimate owners of old apartment buildings be allowed to rebuild
their buildings if they have financial capacity in line with the 2014 Housing
Law.
Economic
restructuring too slow - seminar
Experts
stressed at a seminar in
Nguyen
Dinh Cung, president of the Central Institute for Economic Management (CIEM),
told the seminar that the economic restructuring process has been moving so
slowly.
Economic
expert Luu Bich Ho shared Cung’s view, saying economic restructuring is still
at the starting point.
“Restructuring
has relied on the old mindset and the decisive role of the State economic
sector,” he said, adding that three years have gone but fundamental problems
have not been solved thoroughly.
Former
CIEM president Le Xuan Ba emphasized that
Ba noted
the cost of economic restructuring is high indeed as inefficient enterprises
will go and State budget collections will be affected.
“We have
to accept economic growth of as low as 4-5% in the short run in order to
achieve growth of 8-10% in the medium term,” Ba said.
The
report on
Expert
Nguyen Tu Anh from CIEM said routine expenditures have increased on State
budget constraints while the Government still has to spend on development
investments.
High
interest rates have led to a decline in private investments but public
investments have swollen, showing a lack of fiscal discipline.
Anh
warned that bad debt has not settled effectively and the cost of bad debt is
now being shouldered by depositors and borrowers. Credit will not grow highly
if bad debt in the banking system is not solved drastically.
According
to Anh, equitization of State-owned enterprises has been slower than targeted
and too many incentives for State-owned enterprises have left negative impact
on the local economy.
Sawaco
to sell water to IPs in Long An
Saigon
Water Corporation (Sawaco) will sell some 10,000 cubic meters of fresh water
per day to industrial parks in the Mekong Delta province of Long An from next
month.
Bach Vu
Hai, deputy general director of Sawaco, told the Daily that the water will be
supplied to industrial parts in the neighboring province via the water pipe
system along Provincial Road 10 in HCMC’s Binh Chanh District.
Hai Sawaco
will also build a pipeline in HCMC’s outlying district of Nha Be to supply
over 20,000 cubic meters of water to households in Long An Province’s
districts of Can Giuoc, Duc Hoa and Duc Hue. The fresh water will be sourced
from Tan Hiep Water Plant in Hoc Mon District.
Hai said
Long An Province has requested Sawaco supply water to the districts as a
number of residential areas in the province lack fresh water for daily
activities.
Water
supply in HCMC will go up by 50% at the end of this year when new water
plants with a combined daily capacity of 830,000 cubic meters will be up and
running.
Sawaco’s
current water supply capacity is over 1.7 million cubic meters a day and will
be expanded to nearly 2.6 million cubic meters by the end of this year.
The new
water plants to be put into operation later this year include Thu Duc 3 and
Tan Hiep 2 with each having a daily processing capacity of 300,000 cubic
meters, and Kenh Dong 2 with 150,000 cubic meters per day.
Lao
Cai to build border economic zone with
Officials
of the northern mountainous
Vice
Chairman of the Lao Cai People’s Committee Le Ngoc Hung said local
authorities are pushing ahead with surveys, planning work, mechanism building
and human resources training for the zone, so that it can be put into
operation immediately after receiving Government approval.
In fact,
the two countries’ Governments as well as relevant ministries and sectors
have agreed on principles to the building of the zone, and necessary
preparations are underway, he said.
Vice
head of the Hong He county Nie Ming highlighted the bridging role of the
county and Lao Cai province on the Kunming– Hanoi – Hai Phong – Quang Ninh
economic corridor and the Vietnam-China cross-border economic belt.
He said
the cross-border economic cooperation zone, once operational, will facilitate
the transport and transit of export goods from
Lao Cai
and
South
African firms seek partners in HCM City
opportunities
in
The
enterprises are active in a variety of fields, ranging from footwear,
garments and textiles, wood and timber products to computers, mobile phones
and spare parts, seafood and agriculture.
Speaking
at a workshop held in the city on May 25, the Director of Investment
Promotion under the South African Department of Industry and Trade, Brian
Soldaat, acknowledged
He said
The
country applies preferential regulations in certain fields, such as the
manufacturing of household utensils and electronic equipment, garments and
textiles, and wood and timber products. Furthermore, the country is applying
a number of policies to boost domestic and foreign investment in automobile
spare parts, green industry and green energy, tourism, medical equipment and
pharmaceutical products.
The
Deputy Director of the Vietnam Chamber of Commerce and Industry (VCCI)’s
branch in HCM City, Nguyen The Hung, highlighted the signing of a cooperation
agreement between the VCCI and the Chambers of Commerce and Industry of South
Africa (CHAMSA) and the establishment of the Vietnam-South Africa Business
Council in 2010 as a strong foundation for promoting the two countries’
enterprises.
He noted
that bilateral trade reached over 962 million USD last year, with Vietnamese
exports accounting for 815 million USD.
Lao
Cai hosts farm produce export promotion event
Eighty-five
domestic and Chinese businesses are expected to take part in a conference on
promoting exports of farm produce, seafood and timber products which will be
held in the
At a
meeting on May 25, the provincial People’s Committee heard reports on
preparations for the conference, including working trips to other localities
and
Vice
Chairman of the provincial People’s Committee Le Ngoc Hung said the
conference will create a good chance for domestic companies to introduce
their products to potential Chinese partners and increase sales to the
market.
Lao Cai
province, which shares more than 200km of border line of
Dong
Nai talks to raise local business competitiveness
The
Department of Industry and Trade in southern Dong Nai province had a working
session with relevant departments and sectors to seek ways to enhance the
competitiveness of local businesses.
They
discussed local products for exports to the Southeast Asian nations, as well
as imports from the region in order to devise appropriate incentives for
businesses in the province.
According
to Director of the department Le Van Danh, assistance on credit,
science-technology and trade promotion activities will be provided for a
number of local key products in agriculture, industry and services.
Dong Nai
is one of
Dong Nai
also leads the nation in modernising rural areas with 52 out of its 136
communes and two districts recognised as fulfilling the standards of the
new-style rural building programme.-
Source : VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
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Thứ Năm, 28 tháng 5, 2015
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