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BUSINESS IN BRIEF 3/5
Vietcombank finances VND700 billion for Hai Phong container
port
Vietcombank has signed an agreement to provide a VND700
billion (US$32.2 million) loan to VIP Green Port JSC for construction of a
container port in northern Hai Phong city.
The container port, at a total cost of VND1.373 trillion
(US$63.2 million), is expected to meet demand for goods transport and
economic development in the area.
Construction of the project will include two phases, at VND971
billion (US$44.7 million) and VND402 billion (US$18.5 million) respectively.
Head of Vietcombank Hai Phong Nguyen Van Viet said the
agreement reflected the bank’s active participation in the development of
port services in Hai Phong city.
He assured that Vietcombank would fully comply with
obligations under the contract and provide the most convenient financial
services for VIP Green Port JSC to implement the project effectively.
A representative of VIP Green Port JSC said Vietcombank’s
loans would help the company accelerate construction of the container port
and expand its business in the future.
Local firms lack knowledge of FTAs
Many local enterprises do not know much about the TPP and the
AEC free trade agreements (FTAs) that are expected to be signed this year.
Adequate knowledge about these FTAs would help domestic firms
in
The Viet Nam Chamber of Industry and Commerce (VCCI)'s survey
for the provincial competitiveness index (PCI) 2015 reported that 30 per cent
of the interviewees among enterprises in
Of these, 31.5 per cent were private enterprises and 29.8 per
cent were foreign-invested enterprises, said Dau Anh Tuan, the head of VCCI's
legal department.
The survey also said domestic enterprises in
Tuan said enterprises did not have much information about the
TPP and AEC so they needed guidance to prepare well for the impact stemming
from the FTAs, reported the Vietnam News Agency.
The AEC is expected to be formed this year, but 76 per cent of
Viet Nam's enterprises have no information about the AEC, 94 per cent of them
had no knowledge of the AEC negotiation rounds and 63 per cent said they did
not know anything about the business opportunities or the challenges stemming
from Viet Nam joining the AEC, another survey said.
To Hoai
Meanwhile,
These regional enterprises had actively sought market
information and a chance for entering
Tran Dinh Thien, the director of the Viet Nam Economic
Research Institute, was concerned that
Farm exports generate US$9.13 billion in revenue
The Ministry of Agriculture and Rural Development (MARD)
reported that agricultural products for the January-April period fetched
US$4.47 billion, down 6%. Several products showed strong declines, including
rice (9.2%) and coffee (39.3%).
Only cashew nut grew in both volume at 85,000 tonnes, up 14.4%
and value at US$635 million, up 36.3%.
From January leading up to April, fisheries exports reached
US$1.87 billion, dipping 16.6%.
Meanwhile, exports of forestry products increased year-on-year
by 6.7% to US$2.18 billion.
Another factor that keeps consumers skeptical of the survey’s
findings is that it is sponsored by three biggest mobile carriers in
Breakthroughs in HCMC trade field through 40 years
The city has made great efforts to remove 10 downgraded
wholesale markets from the center area for the construction of
Local authorities have successfully assisted traders to
operate in the new markets making the city sole locality nationwide
successful in building and effectively exploiting wholesale markets.
Thenceforth HCMC has continued relocating hundreds of markets
from roadbeds and upgrading other markets in districts.
These changes were recorded after 2000.
Five years after the city carried out open-door economic
policy in 1991-2000, the people’s lives have been improved leading to higher
shopping demand and facilitating economic sectors to attend in trade and
distribution fields.
The first supermarket of the city--Minimart was opened in
October 1993. Only when Saigon Co.op launched its first supermarket in
February 1996, HCMC saw real changes in the trade field.
Afterwards, a lot of other supermarkets continued appearing in
Districts 1, 3, and 5 and quickly spread to the environs such as Go Vap and
Tan Binh.
The phase after 2005 marked a vigorous shift of trade
cooperative stores into modern Co.op supermarkets.
Conducting WTO commitments, the country has opened its door to
foreign businesses to attend in local distribution system.
Five years later, the market saw a full attendance of large
retailers in the world, prompting local businesses to improve its management
and organization ability.
After forty years of establishment and development, HCMC
distribution system has much developed in volume and quality.
Various distribution types such as markets, trade centers,
convenient stores, boutiques, and e-commerce have more and more developed and
contributed to comprehensive changes of the city’s trade field countenance.
HCMC has 240 markets, 40 trade centers, nearly 200
supermarkets, over 700 convenience stores, and 8,967 subsidized goods outlets
this year.
The city has not only been able to balance goods supply and
demand but also boost exports and imports.
Export turnover reached US$850,000 in 1990, which surged to
nearly US$2.6 billion five years later. The turnover continued growing more
than 10 percent a year to top US$200 billion in 2007-2014.
HCMC became the first locality nationwide with an export
turnover of over US$32 billion last year, accounting for one third of the
country’s total number.
The ratio of technological, processing and manufacturing
products occupied for 70 percent of the total export turnover and agro-aqua
and forestry group held 22 percent.
Commodities from HCMC have been shipped to over 200 nations
and territories. Goods quality has better met requirements of most importers.
HCMC has led the country in implementing new policies and
mechanisms to stabilize goods supply-demand and prices, such as programs on
price subsidization, bank and business connectivity, trade cooperation
between HCMC and other provinces and cities.
From these programs, the city has gathered and built up a
strong business group who are able to supply the market with a large amount
of commodities at stable prices.
Last year, trade and service revenue contributed to 59.2
percent of HCMC Gross Domestic Product with the revenue of VND655.37 trillion
(US$30.36 billion), a year on year increase of 12.7 percent. Of these, trade
held 75.4 percent, up 13.9 percent.
Forty years have gone by with many obtained achievements.
However there are some problems for the city to clear to continue promoting
its advantages, exploiting potentials, and develop into the country’s largest
trade and service center.
Ministry wants local investor to develop Ba Son area
The Ministry of Defense has proposed the Government allow HCMC
Commercial Service Joint Stock Company to develop commercial and service
facilities in the premises of Ba Son Shipyard in District 1.
In Document 2490/BQP-CNQP signed by Deputy Minister Truong
Quang Khanh, the ministry requested the affiliate of Vingroup be permitted to
buy the existing assets and land in Ba Son area.
The report said the ministry assigned the General Department
of Defense Industry and Ba Son Corporation on March 27 to consider picking an
investor to buy the properties and land in Ba Son area. The ministry chose the
company after considering the proposals of the General Department of Defense
Industry and the HCMC government.
The ministry explained that the selection is in line with a
scheme approved by the Prime Minister late last year for selling the assets
and transferring the land use right in Ba Son area to a competent investor.
The investor chosen to develop the area must be experienced in
managing and implementing large-scale property projects and financially
capable to advance capital (around VND4.5 trillion this year and next) to
accelerate relocation and construction of a new shipyard for Ba Son, pay
enough money for land and meet other criteria related to financial aid for Ba
Son Corporation.
In the report, the ministry suggested the zoning plan for
development of the existing Ba Son area should harmonize the HCMC
government’s socioeconomic development strategy and produce huge revenue for
the defense industry.
The selection of a Vietnamese investor for Saigon-Ba Son
complex is to ensure national interests and support the development of local
enterprises and economic growth.
Meanwhile, picking a foreign investor for the area will take
much more time to complete legal procedures for land allocation and this will
affect the relocation process of the shipyard. Besides, it is not easy to
assess the financial capability and experience of foreign investors as well
as to monitor their operations in case of urgency for local and national
defense and security.
The ministry also requested HCMC and relevant ministries and
agencies to create favorable conditions for the quick completion of legal
procedures concerning the sale of assets and the land use right transfer.
Vinasun to buy 1,100 new taxicabs this year
Shareholders of Vinasun Corporation have passed a plan to
purchase at least 1,100 new taxicabs by the end of this year to raise its
total fleet to 6,129 and expand operations in HCMC.
The corporation will liquidate 700 old cars as part of its
plan to increase revenue this year, heard its annual general meeting in HCMC
last week. It had had 5,729 taxicabs as of the end of last year.
Vinasun targets total revenue of VND3.88 trillion this year,
up 3.1% over last year and after-tax profit of VND266 billion. The
corporation will give bonus shares to shareholders at a 100:20 ratio to
revise up its chartered capital to VND678.6 billion from the current VND565.5
billion.
Dang Phuoc Thanh, chairman of Vinasun, told the meeting that
the enterprise obtained revenue of VND3.77 trillion (US$175.3 million) last
year, up 19.38% year-on-year and 9% higher than the whole year’s target.
The corporation’s after-tax profit totaled VND314 billion in
2014, rising by 39.86 % versus a year earlier and beating the full-year
target by 22.15%.
Vinasun paid a 2013 dividend in cash for shareholders at 20%
and advanced a 2014 first round dividend in cash for them at 10% last year.
The corporation also issued shares for shareholders at a
100:30 ratio to raise its chartered capital to VND565.5 billion from VND435
billion in the same year.
Vinasun has launched Vinasun App for the iOs, Android and
Windows phone operating systems to enable clients to book its taxi services
via smartphones in additional to traditional channels.
The corporation had had 15,990 employees as of the end of last
year and each of its taxi drivers could earn an average monthly income of
VND8.6 million.
No evidence of
Deputy Minister of Industry and Trade Tran Tuan Anh said there
has been no proof that Toyota Vietnam would shift from manufacturing to
importing autos in 2018 if the Government declines financial aid for it.
Anh told the ministry’s media conference in
“It is baseless to say that
Earlier, news reports said the Japanese automaker would leave
or stay depending on whether the Government continues backing the auto
industry.
As reported by the news site VietnamNet, a source from the
Ministry of Industry and Trade said the ministry would disapprove of
In addition to the proposal to cut special consumption and
import taxes,
Such financial support is against WTO’s equal treatment rules
and the Government cannot provide direct assistance in terms of product price
but ensure fair competition for firms from different economic sectors.
Besides,
More effort needed to develop market economy in
Experts said at a seminar in
The seminar was held to announce a report on the state of the
market economy in
Chu Hao, director of Tri Thuc Publishing House, underlined the
importance of building adequate institutions for a market economy, saying
market economy still has a lot of shortcomings but nothing else is better
than it at the moment.
Economic expert Pham Chi Lan said
“
The Government has concentrated more resources on the State
corporate sector than the private sector, leading many private companies to
go bust. “This reflects a indecisive policy to develop a market economy,” Lan
said.
Hans-Jorg Brunner from the German embassy in
The media reported the firm had evaded tax, Brunner, adding
there remains much to do in
Dinh Tuan Minh, the chief author of the report, said the
transformation of
Overall,
signs of slowing since 2012. That is why the liberalization of
the economy has been ranked in the lower half of the region and the world,
Minh said.
Finance ministry reveals extra int’l bond issue
The Ministry of Finance has sent the Government an
international bond issue plan for the 2016-2020 period after the successful
US$1 billion sovereign bond issue last November.
At a press conference in
If the scheme gets ‘in principle’ approval from the Government
and the National Assembly, the ministry will conduct bond issues on
international financial markets. The agency has yet to calculate a specific
bond volume for the issues, which aim to restructure foreign loans with high
interest rates thanks to
Earlier, Fitch Ratings upgraded
Besides, the plan will raise funds for projects with medium-
and long-term credit payment and good solvency. The new loans will gradually
replace official development assistance (ODA) capital because as a
middle-income country,
The ministry will weigh the upcoming bond issues so that
public debt will be kept at below 65% of the nation’s gross domestic product
(GDP) and ensure that bonds would bring in more benefits than ODA loans. The
credits should support the economy and at the same time relevant risks must
be put under control, Tuan said.
In early November 2014, the Ministry of Finance successfully
sold US$1 billion worth of government bonds with an annual fixed coupon of
4.8%.
Deutsche Bank, HSBC and Standard Chartered Bank were hired to
manage the issue and swap/buy back old bonds.
The successful issue has helped the nation save around US$32.5
million in bond yield payment in 10 years. It also restructures 54.4% of
2005’s bonds and 25.4% of 2010’s bonds with total savings of US$13.9 million.
The government of HCMC has urged local agencies to make quick
preparations for collecting an annual road maintenance fee from motorcycles
in the city as approved by the municipal People’s Council.
The owners of motorbikes registered in other localities can
pay the fee, which ranges from VND50,000 to VND150,000 per year, at competent
agencies in HCMC if they live and work in this city, according to the
decision.
The HCMC People’s Committee issued the decision last week, or
nearly four months after the HCMC People’s Council approved the road
maintenance fee collection plan.
At an extraordinary meeting in late December last year, the
council approved collecting the road maintenance fee from motorbikes from
early this year as proposed by the city government. Accordingly, local
citizens are permitted to pay the fee at the offices of communes, wards and
towns.
The annual charges are VND50,000 per unit for motorcycles with
engine capacity of 100cc or below, VND100,000 for bikes of over 100cc to less
than 175cc and VND150,000 for 175cc or above.
The charges are VND10,000 and VND30,000 lower for bikes of
less than 100cc and 100cc to less than 175cc respectively as proposed earlier
by the HCMC Department of Transport.
According to the decision, motorcycle owners will have to pay
the fee by July 31 for the whole 2015 for the bikes registered before January
1 this year.
Fee collections will be made in July for the motorcycles
registered before the end of June from 2016 and January for the vehicles
registered before the end of December.
Migrant workers are allowed to pay the road fee in HCMC and
the city’s residents can pay the fee for their bikes in other provinces,
according to the decision. Motorcycles registered by police and armed forces,
and poor people are exempted from the fee.
Earlier, the city government said late payers may be fined up
to three times over the fee.
Speaking at the council’s meeting, HCMC vice chairman Nguyen
Huu Tin said that motorcycle owners who are late in paying the maintenance
road fee will be fined in accordance with the Ministry of Finance’s Circular
186/2013/TT-BTC.
Ward- and town-level authorities will be allowed to retain 10%
of the total fee revenue they collect in the first year to cover collection
cost while the percentage for communes is 20%. Districts will use the
remaining revenue to develop rural transport systems and maintain roads.
Experts calculated the city government will be able to collect
around VND300 billion for road upgrade and repair if the lowest fee level of
VND50,000 per motorcycle is applied to less than six million bikes. This
number of bikes excluded more than one million owned by migrant workers as of
late last year.
HCMC will collect the road fee in accordance with the
establishment, management, and use of the nation’s Road Maintenance Fund.
Accordingly, owners of motorized vehicles were supported to pay the road
maintenance fee as contribution to the fund from June 2012, but the
Government later postponed the fee collection until January 2013 to share
difficulties with people during the year of economic slowdown.
HCMC has continued to delay the road fee collection though all
other localities have started their fee collections since 2013.
Gov’t wants banking sector restructuring on fast track
Prime Minister Nguyen Tan Dung has called on relevant agencies
to step up the nation’s bank restructuring scheme and deal with ailing banks
in the country.
In a statement released after the cabinet meeting on Saturday,
the Prime Minister urged the second stage of the project be put on fast track
while bad debts must be settled effectively.
The message came at a time when many banks are holding their
annual general meetings and the State Bank of Vietnam has announced to
acquire all Ocean Bank shares at zero dong each. Earlier, the central bank
took over Vietnam Construction Bank (VNCB).
The central bank also restricts dividend payments at other
banks to help them retain profit for restructuring. Therefore, a number of
banks have delayed their AGMs while others have offered lower-than-expected
dividend or even held back dividend payment.
The government meeting, the central bank and other agencies
were told to consider raising the foreign ownership limit at local banks.
Currently, foreign ownership is capped at 30% of a bank’s chartered capital.
*The central bank last Saturday issued a decision allowing
Mekong Housing Bank (MHB) to be merged into the Bank for Investment and
Development of Vietnam (BIDV). The decision will take effect on May 5.
On the same day, the State Securities Commission issued a
certificate on share issue for the lenders’ share swap at a 1:1 ratio.
The merger deal has met all legal procedures, according to the
central bank.
The steering committee for the merger plan and board members
of the two banks met on Saturday to draw up a roadmap for merger.
From May 5 to 10, BIDV will dispatch its officials to
supervise and prepare for the takeover of MHB facilities (including the head
office, branches and member units). MHB’s banking units will be handed over
to BIDV between May 11 and May 17.
BIDV is obliged to take over all properties, rights, duties
and legitimate interests of MHB and conduct business registration procedures.
The handover is scheduled to finish on May 22. BIDV will have
to complete the share swap to turn MHB shareholders into BIDV shareholders.
Both sides are expected to sign an official merger minutes on
May 25. The MHB brand will no longer exist as the merged bank will be named
BIDV.
BIDV chairman Tran Bac Ha said the bank will adjust its
2015-2017 business plan after the merger. BIDV will take care of the
interests of employees after the merger.
Business startups soar in April
The General Statistics Office (GSO) has put the number of
businesses established this month at more than 9,180, up 24.6% from the same
period last year.
These business startups in April have total registered capital
of more than VND51 trillion, up 13% against the same month last year.
The new enterprises are up nearly 74% in number and over 52%
in capital month-on-month.
April has seen 2,726 enterprises resuming operations, a
month-on-month decline of 24%. However, 3,670 ailing firms have suspended
production and business, soaring 58.5% compared to last month, and 684
companies have been dissolved, up 34%.
This year some 28,235 enterprises have been set up with
combined capital of VND162.5 trillion, rising by 9.7% and 13.3% respectively
compared to a year earlier.
The newly established businesses have generated 427,900 jobs,
up 19.2% year-on-year.
In addition, 6,834 operational companies have added a total of
VND223 trillion to their capital in January-April.
According to the GSO, an improvement in economic growth has
allowed more than 6,310 suspended enterprises to get back to business, up
7.7% year-on-year.
The number of enterprises having halted operations and been
dissolved in the year to April is down 0.8% year-on-year to 3,249. Most of
them are small with registered capital of less than VND10 billion each.
Around 19,035 enterprises have suspended operations in the
period, up 4.5% from a year ago.
Danatol takes legal action against Sun Land
Danang-based Danatol Joint Stock Company has sued Sun Land, a
member of Sun Group and the owner of Ba Na Hills resort on Ba Na Mountain in
Danang City, for restricting road access to the peak of Ba Na Hill.
Nguyen Trung Dan, chairman of Danatol, said the court of Hoa
Vang District in Danang City had agreed to handle the case in which Sun Land
is alleged to set up barriers on the road leading to the peak of Ba Na and
cause the road to deteriorate.
Dan requests Sun Land remove the barriers and repair the road
to make it easy for people to go up the top of Ba Na Hill by road.
Earlier, Ba Na Cable Car Service Joint Stock Company, another
member of Sun Group and the operator of Ba Na Hills resort, sent a document
to the government of Danang city denying blocking the road as reported by
local media.
The enterprise said it had not prevented people from using the
road as it just warned locals and tourists of not trekking up Ba Na.
In the document, the company proposed the city allow it to
manage the road so that it can use its own budget to maintain the road.
The city planned to upgrade the road at an estimated cost of
VND396 billion in 2011 but delayed it later before assigning Ba Na Cable Car
Service Joint Stock Company to manage and maintain it in May 2014.
RMIT partners with biotech center
RMIT Vietnam has joined hands with the Biotechnology Center of
HCMC to contribute to the development of human resources and the
biotechnology industry in Vietnam.
The joint approach towards developing the country’s
biotechnology professions was outlined in a memorandum of understanding (MOU)
which RMIT clinched with the center in HCMC last week.
The university said in a statement that the two-year agreement
contains many significant programs and activities to enhance mutual support
and cooperation in education and research across biotechnology and to provide
more internship opportunities for RMIT Vietnam students.
As part of the deal, the university will provide English
language training for staff of the center to achieve proficiency in academic
English as well as master a number of skills required for tertiary education
overseas.
The Australian-invested school will also deliver undergraduate
and postgraduate programs, and research opportunities in biotechnology either
at RMIT Vietnam or RMIT Australia. Short-term training programs in
biotechnology are also being developed.
The center agreed to offer advice for biotechnology courses
offered at RMIT Vietnam; and support research discussions, seminars and
academic meetings, and internship opportunities for students.
Meanwhile, RMIT Vietnam President Professor Gael McDonald said
the deal ensures the university will continue to run courses relevant to the
Vietnamese market and contribute to this growing industry.
Stricter inspections imposed on cold-rolled steel imports
Customs agencies have applied stricter inspections to
cold-rolled stainless steel imported into Vietnam to prevent trade fraud
after the product was added to the list of imported products with origin
risks.
Cold-rolled stainless steel, including coils and sheets 3.5
millimeters thick or thinner, are included in the list of imported products
with origin risks, according to the General Department of Customs’ Decision
817/QD-TCHQ with effect last Friday.
The department issued the decision last week after some
importers faked documents to falsify origins of the product to avoid
Vietnam’s anti-dumping tax.
According to the Vietnam Competition Authority, after the
Ministry of Industry and Trade issued Decision 7896/QD-BCT on September 5,
2014 to slap anti-dumping duties on certain stainless steel products imported
from China, Taiwan, Indonesia and Malaysia, many enterprises have falsified
origins of these products to dodge anti-dumping duties.
In addition to cold-rolled stainless steel, three other
products identified with origin risks are the steel alloys containing boron,
Q-mobile phones and baked tiles imported from
Source :
VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
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Thứ Bảy, 2 tháng 5, 2015
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