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BUSINESS IN BRIEF 10/6
SBV:
Deposit rates stable
Deposit
rates were stable in the last week of May though inter-bank interest rates
continued to decrease at most key tenors, according to an updated report of
the State Bank of
Deposit
rates in
Meanwhile,
interest rates for borrowers in priority sectors now stand at 6-7% a year for
short-term loans and 9-10% for medium and long-term loans. For normal
sectors, borrowers are subject to short-term rates of 7-9% and medium and
long-term rates from 9.3-11%.
According
to the central bank, annual inter-bank rates in U.S. dollar inched up at most
tenors under one month, standing at 0.29-0.54%.
Deposit
rates in the U.S. dollar are at the ceiling levels imposed by the central
bank (0.25% for institutional depositors and 0.75% from individual
depositors). Lending rates in the greenback range from 3% to 6.7%, in which
short-term rates are 3-5.5% and medium and long-term rates from 5.5-6.7%.
Green
light given to dairy farming project
Binh Ha
Livestock Investment Co. has got the go-ahead from the government of Binh
Dinh Province to implement a cow farming project worth VND3.6 trillion
(US$165.4 million) in the province.
A major
shareholder of Binh Ha is Hoang Anh Gia Lai Joint Stock Company, which has
already partnered with a number of companies to develop a chain specializing
in producing beef and milk in and outside
Binh Ha
plans to raise up to 100,000 cows on 5,080 hectares in Van Canh, Hoai Nhon,
An Lao and Hoai An districts of the province. This will be the biggest
livestock project in the central coast province.
The
investor is completing procedures so that work on the project can start this
year. The company will import pregnant Brahman cows and carves from
According
to the center, this cow farming project will create many jobs for local
people and turn out products for domestic consumption and export.
Last
year, the government of
The
province will improve its native breeder cows and produce high-quality beef,
pig and poultry meat in order to create more value-added products for local
consumption and export.
Apart
from
Techcombank
acquires VCFC
The
State Bank of
Under
the central bank’s Decision 1108/QD-NHNN, Techcombank will be responsible for
all assets, legitimate rights and responsibilities of VCFC.
The two
sides must conduct procedures to transform VCFC and register to form and
publicize information about the new business in line with the existing
regulations.
According
to a report of VCFC released early this year, Techcombank acquired over 53.92
million shares (89.87%) of VCFC to raise its holding to 99.87%.
Techcombank
is the fourth bank to get approval for merger and acquisition deals related
to finance companies in
Earlier,
HDBank bought Société Générale Viet Finance (SGVF) and VPBank took over
Vietnam National Coal - Mineral Finance Company. SHB merged Vinaconex-Viettel
Finance Joint Stock Company (VVF) while Maritime Bank purchased Textile and
Garment Finance Joint Stock Company (TFC).
India
probes wood panel imports from Vietnam
The
Directorate General of Anti-Dumping and Allied Duties (DGAD) under
The DGAD
has initiated the probe after Indian enterprises Greenply Industries Ltd. and
Mangalam Timber Products Ltd. filed against MDF imports from the two ASEAN
countries. The Indian agency probed the imports between October 1, 2013 and
September 30 last year.
The
Vietnam Competition Authority quoted data of the International Trade Center
(ITC) as showing that
Figures
of the Vietnam Trade Promotion Agency (Vietrade) under the Ministry of
Industry and Trade showed India’s wood imports increased from US$630 million
in 2003 to US$2.7 billion in 2013 as demand for materials in the real estate
and furniture production sectors surged. The country spent US$96 million
buying MDF in 2013 alone.
According
to the Vietnam Competition Authority,
According
to the Turkish Ministry of Economy, imports of plywood from
A number
of domestic businesses have come forward to invest in building a new terminal
at
The
Airports Corporation of Viet Nam (ACV) had proposed the Transport Ministry to
set up a joint venture of domestic businesses to invest in the project.
The
joint venture comprises the ACV, which will contribute 10 per cent of the
total investment capital, Thang Long Air Services Corporation, AOV Investment
Corporation, and Ha Noi Construction Corporation.
The Imex
Pan-Pacific trading group has also sought the Transport Ministry's permission
to invest in the project on Build-Own-Operate (BOO) basis.
Although
no official investor has been selected for the project, the new terminal will
be built by domestic investors, an official from the Transport Ministry was
quoted as saying by Dau Tu (Investment) online newspaper.
The
construction of the new terminal is estimated to cost around VND3.2 trillion
(US$147.4 million).
The
construction is scheduled to start by January next year at the latest and is
expected to be completed by June 2017.
Spread
across 40,000sq.m., the new terminal is expected to serve 2.3 million
international visitors to
The new
terminal will come up next to the existing terminal.
1.9
million shares of Thuong Dinh footwear bought
Three
private investors have bought 1.9 million shares of Thuong Dinh Footwear
Company during an initial public offering at the Ha Noi Stock Exchange (HNX)
on June 8.
The
shares were sold at an average price of VND48,177 (US$2.2) each, nearly five
times higher than the offering price, reaching close to VND91.7 billion ($4.2
million).
The
auction attracted the participation of 32 investors who had earlier
registered to buy more than 22.1 million shares, 11.5 times higher than the
volume of company shares offered on auction.
As part
of the company's equitisation plan, the State will own 3.3 million shares,
while its workers are allowed to buy more than 2.1 million shares, or 36 per
cent and 23.5 per cent of chartered capital, respectively.
The
remainder of 1.8 million shares, or 20 per cent of chartered capital, will be
sold to strategic investors.
Japan
grows kaoliang in Vietnam
A pilot
kaoliang growing project by
The
project showed that kaoliang can grows well producing higher yield, even in
severe weather condition in
Sol
Holding Vietnam plans to transfer technology and provide seeds for farmers to
help them plant kaoliang on a large scale next year, said the company’s
general director Nguyen Thai Son.
The
company will also build an animal food and biological tablet processing
factory and propose the Government for building a bio-fuel processing
factory, said Son, noting that food for cows is in dire shortage while
biological tablet products will be assured for consumption by Japanese
partners within 20 years.
Corn
imports up 30%
The
Vietnam Food Association (VFA) attributed the domestic growing demand for
processing animal food to a sharp increase in corn imports over recent years,
principally from
Businesses
also imported more than 730,000 tonnes of soybeans and US$1.38 billion worth
of animal food and other materials in the foresaid period.
Meanwhile
the VFA reported that
Hong
Kong stops importing poultry products from Vietnam
Hong
Kong has temporarily stopped importing poultry and poultry products from
The
Ministry of Industry and Trade has been informed by the Hong Kong Food and
Environmental Hygiene Department that announced the decision.
The decision,
which came into effect as from May 22, 2015 bans all poultry and poultry
products from all Vietnamese localities.
Liquidity
shortage pressurises rates
Improving
credit growth, an active secondary bond market, and volatility in the foreign
exchange market has combined to reduce trading volume in the primary bond
market.
According
to a report from the State Bank of Vietnam (SBV), the total trading volume
for the first quarter reached US$54 billion, down 17.81% from the previous
quarter and 5.3% over a year. Short tenors were more active than long-term
maturities.
Overnight
bonds recorded VND476,018 billion (US$22 billion) of trading, accounting for
41% of the total, while one-week tenors posted at VND418,109 billion (US$20
billion) and contributed to 36% of total traded value. Banks conducted
lending and borrowing transactions via the interbank market in order to meet
the minimum reserve requirement and avoid a shortage of short-term liquidity.
Strong
credit growth was a leading factor in the decline in bond trading as banks
diverted funds from the bond market to make loans. Year-to-date credit growth
reached 1.91% through March-end. This was a substantial improvement over the
period from 2011 to 2014, when credit growth was abnormally negative during the
first quarter of the year.
As
described in the report on macro-economic conditions in May and for the first
five months released by the National Financial Supervision Commission, as of
May 20, credit of the whole market grew at 4.26%, which was nearly four times
higher than last year.
During
2014, banks mobilized funds in the interbank market to invest in the bond
market for gains. This method of making money continued into 2015. Although
the primary bond market deteriorated, with issuance volume declining 14% to
only VND69,941 billion (US$3.3 billion), the secondary market still
experienced a bright note.
Total
trading of government- and guaranteed-government bonds in the secondary
market reached VND236,628 billion (US$11 billion), surging 64% year-over-year.
Bond yields followed the downtrend during the first quarter, which attracted
investors. This had negative impacts on the supply side in the interbank
market.
The
supply side in the interbank market was limited, which was caused by the
strength of the US dollar making the foreign market upbeat. Signs of US
economic recovery and the possibility of the FED raising interest rates
boosted the dollar against other currencies.
At the
same time, Vietnam’s trade balance retreated to a deficit during the first
three months. The trade deficit in March reached nearly US$1.4 billion, which
expanded the total of deficit for the first quarter up to US$2.4 billion.
This, consequently, increased the demand for such notes.
Strong credit
growth and the active foreign exchange market restricted the supply of
lending in the interbank market.
At the
same time, borrowing demand increased to meet the needs of customers during
the long-term holidays and put pressure on interest rates to increase.
MoIT
seeks gov't nod for more coal exports
The
Ministry of Trade and Industry has asked the Government to allow coal exports
to solve inventories, said an official with the ministry's Power Department.
Nguyen
Khac Tho, Deputy Head of the Ministry's Power Department, told Hai Quan
(Customs) newspaper, that coal depots are overloaded following the
government's policy to limit exports in a bid to ensure national energy
security and domestic demand; this has also resulted in a decrease in coal
export turnover.
The
ministry's Export-Import Department has pointed out that Vietnam's coal
exports in May, as well as during the first five months of this year, saw a
sharp decrease in both volume and value.
The
country exported 150,000 tonnes of coal last month, earning US$19 million in
turnover. The figure dropped 40% in volume and 22% in value compared to the
previous month and 72% in volume and 50% in value compared to the same period
last year.
The
country exported 895,000 tonnes of coal in the first five months of this
year, earning US$100 million, down by 77% in volume and 65% in turnover
compared to the same period last year.
Meanwhile,
coal production has increased compared to last year, reported the ministry.
The
production of clean coal reached 3.67 million tonnes last year, marking a
year-on-year increase of 0.8%.
The
country's total coal production during the first five months of this year was
17.58 million tonnes, up 4.5% year-on-year.
Tax
revenues up despite hit to crude oil revenues
The
country's tax revenues in the first five months of this year continued to
grow despite reduction in tax collection from crude oil, according to the
General Department of Taxation.
During
this period, domestic tax collections were estimated to total VND283.2
trillion (US$13 billion), representing an increase of 16.3% over the same
period last year, including VND42.4 trillion (US$1.94 billion) in May.
Taxes
from crude oil, however, dropped by 34% against the same period to VND30.3
trillion (US$1.39 billion), reaching only 32.6% of the target for the full
year.
Meanwhile,
in the first five months, tax collection from other export and import
activities gained a year-on-year surge of 6.5% to VND66 trillion (US$3.03
billion).
According
to the Ministry of Finance, the domestic economy has reacted positively
recently, but the economy is still faced with difficulties that could affect
tax collections.
Therefore,
the ministry would track the economic development in the near future to
manage tax collection activities for reaching the yearly target.
The
ministry would also implement solutions to increase tax revenues and prevent
individuals and corporates from evading taxes.
The
General Department of Taxation is also required in June to implement measures
to collect more tax revenues and promote inspection of tax payment and after
customs clearance.
The
department will implement solutions against pricing transfers and tax
arrears.
The tax
revenues are expected to reach VND167.6 trillion (US$7.7 billion) in the
second quarter and VND345.9 trillion in the first half of this year, the
ministry said.
The tax
sector planned to collect VND731.6 trillion (US$33.56 billion) this year, of
which VND93 trillion (US$4.27 billion) would be from crude oil.
Saigon
Port to upgrade facilities for faster cargo handling
Saigon
Port on Thursday announced to review its organizing activities and invest in
facilities to ensure highest loading capacity in the future, following
outcries from goods owners over the port congestion.
Till the
end of this year, the port will be equipped with more devices to load and
pack loose cargoes, transport trucks, and other kinds of vehicles, Saigon
Port’s general director Le Cong Minh said at a meeting with the city’s
government.
However,
Minh did not elaborate on invested capital for the facilities.
The HCMC
government on Thursday held a meeting with Saigon Port management to seek
solutions for the current congestion at Saigon Port’s piers. The city’s vice
chairman Nguyen Trung Tin asked the port to boost manpower and facilities to
cope with the problem which has caused heavy losses to many enterprises.
The
sudden increase in loose cargoes arriving at the port last month over the
past few weeks was confirmed as main cause of the congestion. Nearly three
million tons of sand was cleared at the port in April alone while the port
received no sand cargo in the same period last year.
Saigon
Port’s administration manager Nguyen Manh Ha said that enterprises have
strongly pushed up good imports due to easier capital under the Government’s
lending rate subsidy program. Besides, the volume of fertilizer, bran, and
cassava has increased due to the harvest season.
Workers
of the port have to spend more time to load the loose cargo due to lack of
specialized equipments, Ha explained.
Many
other enterprises are packing sand at the port to export to Singapore that
has also worsened the congestion.
Tens of
ships are still waiting at piers of Saigon Port as of on Thursday afternoon
while many other ships are loading goods. Workers of the port are struggling
to handle the huge amount of goods and clear the congestion as soon as
possible.
Vinalines
to upgrade Cam Ranh into key port in central region
Ba Ngoi
Port in Cam Ranh township in the central coastal province of Khanh Hoa was
put into official operation on Thursday under the new name Cam Ranh Port Ltd.
Co., one year and a half after the port was transferred from Khanh Hoa
Province’s government to the Stated-owned Vietnam National Shipping Lines
(Vinalines). Vinalines said it had plans to upgrade Cam Ranh into a key
container port in the south-central region.
Under a
plan prepared last year, Vinalines would spend VND700 billion (US$41 million)
upgrading Cam Ranh Port to meet the increasing demand for goods
transportation between central coast provinces and the Central Highlands.
In the
first phase of 2009-2010, the developer will build a wharf for both general
cargoes and containers. The new wharf, 230 meters long and 30 meters wide,
can receive ships of up to 50,000 DWT.
Besides,
the company is also investing in new equipment for the port such as cranes
and new warehouses.
The plan
is aimed to raise the port’s capacity to three million tons next year
compared to the current throughput of 1.2 million tons of goods, which is
still much higher than the port’s designed capacity of only 700,000 tons.
In the
second phase from 2010 to 2020, the company will build more wharves at the
port, comprising container wharves and multi-purpose wharf to better serve
the needs of larger vessels, said a top official of Vinalines. The port
should be able to handle five million tons of goods per year by 2020.
Besides,
another plan has been drawn up to build a railway section connecting the
national railway system to the port to facilitate the transportation of
containers and cargoes via railway.
Ba Ngoi
port was built in 1949, and has become deteriorated despite its convenient
location and natural conditions for a deepwater port. In October 2007, Khanh
Hoa Province decided to transfer the port to Vinalines.
Spanish
firm sets up branch in town
Spanish-based
company Global Architecture Local Office, better known as Galo Architects, on
Thursday launched a branch office in HCMC, officially marking its presence in
the market with services of architecture and town planning.
Carlos
Garcia Lorente, general director of Galo Architects, said that what made the
company choose HCMC to set up office in the Asian region was the high
potential in the property market here in Vietnam.
Lorente
said the Galo Asia office, which is located on Nguyen Van Huong Street in
HCMC’s District 2, would facilitate its business as an architecture company,
which is active in urban planning, office and apartment building, as well as
developing tourism facilities such as hotels, resorts, golf courses and
amusement parks among others.
“We are
going to make especially town planning and housing, maybe some hotels and
resorts but not too much office buildings because it’s a bad moment to invest
in this kind of projects due to the world crisis,” Lorente said.
He added
Galo Architects last year made a tour to Vietnam to sound out business
opportunities and collaboration in future projects with Vietnamese
architectural, construction and development companies.
The
Spanish architect disclosed that Galo Architects had been asked to search for
locations for a Spanish company which is looking for opportunities to develop
two hotels in Vietnam's market.
Sparton
Corp. increases business in Vietnam
The
U.S.-based Sparton Corporation is increasing business in its Vietnamese
subsidiary, Spartronics Vietnam, through new market growth and installation
of more equipment to boost production, the corporation’s top executive said
on Thursday.
Cary B.
Wood, president and CEO of parent company Sparton Corp. and also general director
of Spartronics Vietnam, told the Daily that more investment would be made for
Spartronics Vietnam to expand its manufacturing scope.
Wood and
other senior managers of the parent firm were visiting the Vietnam subsidiary
in Binh Duong Province to review operations and to meet with his team to
discuss future programs in Vietnam.
Spartronics
Vietnam, housed in a new 5,500 square-meter plant at the Vietnam-Singapore
Industrial Park (VSIP) in the southern province, manufactures and assembles
printed circuit boards, enclosures and black box solutions in various
electronic segments.
The only
facility of the corporation in Asia, Spartronics Vietnam is an electronics
manufacturing service provider, with a focus on the aerospace,
transportation, communications, industrial and medical industries. All of the
products made in Vietnam of the corporation have been exported, Wood said.
The
parent firm has closed down a plant stateside and transferred equipment and
production lines to the Vietnam subsidiary, according to Wood
“We’ve
been fortunate to have expanded manufacturing at Spartronics Vietnam because
it makes sense logistically and economically for us and for our customers,”
he said in a statement.
Wood added:
“We’ve worked diligently to ensure that we provide our customers with the
highest quality electronics at the lowest cost, regardless of where they’re
produced. It’s part of our continuing effort to ensure the viability of our
company in the near-and long-term.”
Sparton
Corporation has also appointed Drew Richmond as deputy general director to
oversee the day-to-day operations at Spartronics Vietnam. Richmond previously
served in the capacity of vice president for business development at Sparton
of Canada, Ltd.
The
company has previously stated its facility in Jackson City, Michigan State in
the U.S. will be closed down in June, and facilities there are being shipped
to Vietnam.
“We’re
already well underway with the transfer of production to Vietnam… using
advanced product planning tools to ensure a smooth transition,” added Wood.
Spartronics
Vietnam on Thursday also marked four years operation.
Sparton
Corporation, established 109 years ago, is a broad-based provider of
electronics to technology-driven companies in diverse markets. The
corporation provides its customers with sophisticated electronic and
electromechanical products. Headquartered in Jackson City, Michigan, Sparton
currently has five manufacturing locations worldwide.
AEC
could spell trouble for the furniture industry in Vietnam
Furniture
executives from around the globe are knocking at the door of Vietnam, a
rapidly emerging supplier for high quality and some of the least expensive
woodwork exports on the global market.
With
goods at prices competitive with those made in neighbouring China, Vietnam is
being courted by US manufacturing and retail executives looking to purchase
inexpensive desks, chairs, and household items made from pine, cajuput or
rubber wood.
As a
result, Vietnam currently ranks fourth in the world, second in Asia and first
in Southeast Asia in exporting wood furniture and furnishings and is rapidly
becoming a leading exporter to the US, according to official sources.
However,
despite all the successes in the overseas markets – domestic businesses have
only managed a 40% market share in the local market – which leading market
analysts believe should be much higher.
Vo Van
Quyen from the Ministry of Industry and Trade (MoIT) said imports account for
60% of the local market with the nation importing on average nearly US$2
billion annually— 40% for the real estate industry and 60% to meet domestic
consumer demand.
Quyen,
who is in charge of domestic trade affairs at the MoIT, said Vietnam has
roughly 4,000 companies in the industry, primarily very small and medium
sized businesses located in trade villages.
They
will face increasing difficulties competing at home Quyen stressed, as
Vietnam joins trade pacts and lowers import duties in line with its
obligations under the ASEAN Economic Community (AEC) early next year.
Huynh
Van Hanh, deputy head of the Handicraft and Wood Industry Association (HAWA)
of HCM City in turn echoed Quyen’s concerns and said domestic companies are
sure to face increasing difficulties when the lower tariffs under the AEC
kick in.
Hanh
said domestic companies need to take heed and should make plans to shore up
market share in the domestic marketplace with increased brand recognition for
customers or they’ll lose out from the AEC formation.
For its
part, the Vietnam Wood and Wood Product Association said it is aware of no
less than 26 countries that are planning, or have made moves, to expand into
Vietnam’s furniture industry – including China, Thailand, Japan, the
Republic of Korea (RoK) and the UK.
According
to the HAWA, the local market has been neglected as domestic companies have
focused on pursuing big orders from foreign partners.
As a
result they have failed to meet domestic customers’ tastes, establish
distribution networks and develop brand names recognition.
There is
near unanimity among the experts that limits in connectivity, trade
promotion, and establishment of distribution networks have led to domestic
companies and craft villages neglect of the domestic market.
This is
the major cause that sales of imported goods have taken off and cornered the
market in Vietnam.
It is
time for companies in the industry to pay more attention to the domestic
market, they advise adding that focusing on the domestic market helps
businesses avoid overdependence on certain foreign markets.
In
addition, it also helps businesses minimize risks in the integration process.
HAWA
cautioned that though Vietnamese woodworks are exported to many countries in
the world including demanding markets like the US, Japan and EU – it does not
necessarily follow that they meet with the domestic demand.
Businesses
must conduct market research, develop value chains for production and
distribution along with good marketing and promotion policies to meet the
domestic demand—or else AEC will spell trouble for the domestic market.
DHL
Express provides express delivery services to Vietcombank
DHL
Express – the world’s leading logistics company on June 4 announced that it
will provide express delivery services to the Joint Stock Commercial Bank for
Foreign Trade of Vietnam (Vietcombank).
Vietcombank
Deputy General Director Pham Thanh Ha said by partnering with DHL Express,
Vietcombank can deal with the current challenges to provide their customers
with better services.
Ms
Yasmin Aladad Khan, Senior Vice President of South East Asia and South Asia
Region at DHL Express underscored the importance of the DHL Express global
network and Vietcombank’s comprehensive access to the local market and
highlighted the effective cooperation between the two sides in offering high
quality express delivery services.
Director
Commercial at DHL-VNPT Express Ltd, Md. Miarul Haque has pledged to provide
maximum support for human resources training and expertise to help its
partners maintain and expand business activities.
Eurasian
trade will open new page
The free
trade agreement (FTA) between Vietnam and the Eurasian Economic Union (EEU)
will create more export opportunities for some of Vietnam's agricultural,
industrial and processed products.
Vietnam
will also have to open its market for steel products from EEU countries,
which will influence the country's steel sector.
According
to Tran Thanh Hai, deputy head of the Import-Export Department under the
Ministry of Industry and Trade, domestic steel producers would face
difficulties competing with a large steel maker like Russia.
We have
to adapt to the rules of a market economy in the current context of
globalisation, Tran Tuan Anh, deputy minister of trade and industry, told Hai
Quan (Customs) newspaper.
Measures
taken by the Government and management agencies could assist enterprises, but
they would only be effective for a certain period, so enterprises had to
accept the competition from other economies, added the deputy minister.
Support
policies would remain in place for the domestic sector, including import
controls and technical barriers. However, the most fundamental problem was
that enterprises had to enhance their competitiveness and effective
management, he said.
Vietnam
and the EEU began negotiations on the bilateral FTA on March 28, 2013.
The
Eurasia Economic Union comprises Russia, Kazakhstan, Belarus, Armenia and
Kyrgyzstan.
The two
sides signed the FTA after two years of negotiations with a comprehensive
scale, high level of commitment and benefit balance.
The
agreement opens a new page in co-operation between Vietnam and the Eurasia
Economic Union.
Lychee
sales take off in the RoK
Fresh
lychee produced in Vietnam is selling well in markets throughout Asia and
Europe, especially in the Republic of Korea (RoK).
The
information was unveiled June 5 at a Trade Promotion Conference organized
jointly by the city of Hanoi and Hai Duong province.
However,
Vietnamese growers and producers need to boost their advertising efforts to
create brand awareness and increase sales in the markets, speakers at the
conference underscored.
Recently,
Vietnam successfully exported lychee to France, which is a positive
development for the industry.
Freight
firms need upgrade
Local
logistics companies must upgrade their operations to increase their
competitiveness in the future as many free-trade agreements (FTA) have been
signed, experts said.
Deputy
Director of Avina Logistics Joint Stock Company Le Hoang Oanh said the
signing of many FTAs, and especially the establishment of the ASEAN Economic
Community (AEC) by the end of this year would bring challenges in terms of
higher demand on import and export activities as well as investment of
foreign logistics firms in Vietnam, including ASEAN companies.
Foreign
companies in Vietnam would have more opportunities to use the logistics
services of companies coming to Vietnam from their own countries, and would
not use local logistics companies as before, Ngo The Hung, deputy director of
Thang Loi Logistics Joint Stock Company, said.
That would
put pressure on the local logistics firms to compete with the foreign rivals,
Tran Huy Hien, general secretary of the Vietnam Association of Logistics
Enterprises, said. He said the local firms must upgrade their logistics
facilities and services to improve their competitiveness in the future.
Gemadept,
a large logistics joint-stock company in Vietnam, had invested VND340 billion
for building a logistics centre in the Song Hau industrial zone, in the
southern Hau Giang Province, to expand its business, the Hai Quan newspaper
said.
Meanwhile,
Thang Loi Logistics had added VND3 billion to VND4 billion in investment
capital to upgrade and seek warehouses in order to have more customers, Hung
said.
The
company had invested in the development of land transport vehicles to improve
transport services from Thailand, Laos and Cambodia to Vietnam and China, he
said, because there would be more trade opportunities under the AEC and
transport over land would be cheaper and faster than air or sea transport.
Avina
Logistics would also focus on developing land transport services, Oanh said.
Her company would improve the staff abilities and management technology, and
even co-operate with other logistics firms to increase competitiveness.
However,
Hien said almost all local logistics firms would face several difficulties in
upgrading their operations and business because they were small and
medium-sized enterprises that lacked capital, technology, skilled staff and
experience.
To deal
with these challenges, according to Hien, the enterprises need to co-operate
among themselves and get state support. This support includes policies to
help logistics enterprises get loans, and a strategy for improving linked
factors such as transport infrastructure and ports and customs procedures to
reduce the cost of logistics service.
Small
firms struggle in tough market
Small
companies are finding it hard to compete with technological and product
diversity as they struggle to gain a foothold in the marketplace.
Vietnam Chamber
of Commerce and Industry (VCCI) statistics show small-sized enterprises were
in trouble in the first four months of 2015. Medium and big-sized
enterprises' grew, but orders and revenues of small-sized firms declined,
forcing many to lay off workers.
Of the
enterprises that had to halt operation in the first four months, 76.5% were
small businesses, unable to compete with medium and big-sized companies to
find outlets for their products.
Small
firms are easier to established, but often lack technology and most of the
equipment is old and obsolete, lack skilled personnel, have problems
negotiating polices and laws, leading to low production.
Bui Thu
Thuy, an official from the Ministry of Planning and Investment, said
small-sized enterprises often have trouble accessing credit from banks.
But Tran
Thi Hong Hanh, general secretary of Vietnam Banks' Association, said many of
the firms fail to meet financial requirements for loans, and banks were
reluctant to lend for fear of default.
Despite
the difficulties, many firms show optimism for the second half of 2015.
Pham Thi
Thu Hang, general secretary of VCCI, said firms should diversify their
products and find several different markets.
"They
should focus on new potential markets and build effective distribution
channels to deal with high inventory," she said.
First
lychee shipment heads for the US
The
first batch of fresh lychees, cultivated in accordance with strict Viet Gap
regulations, have been readied at a packing facility in Thanh Ha District,
Hai Duong Province.
Visiting
lychee farms yesterday, where fruits are picked for no-pedestrians site
packaging, Robert Guillemot of the United States Department of Agriculture
signed an approval allowing the fruits to be packed for exports.
The
first lychee shipment of 2 tonnes shall be irradiated in the country's only
facility in HCM City and, if approved, shall be transported by air to the
United States.
Further
inspections will be carried out in the US, before the fruits are made
available for US customers. Initial steps have so far been positive.
Investors
in need of land for new projects
Ha Noi
authorities have asked the Ministry of Natural Resources and Environment
(MONRE) to forward their request to the Government to allow them to help
investors secure land for projects.
Their
request noted that whenever investors fail in negotiations to secure land
from all the residents of a block, projects languish for more than ten years
or so, even though investors have secured 70 per cent of the land needed.
It is
often seen that residents who refuse to yield live scattered across a block.
This makes it impossible for investors to start any part of their projects.
As a result, whatever land investors managed to secure until then lie wasted
for weeds to claim.
In their
proposal to the MONRE, the city authority has said that in cases where
investors have managed to secure 70 per cent of the land required for
projects, it will help hold meetings and negotiations with residents who
refuse to let go of their land.
If
residents refuse to give their land even after 30 days since the meeting, the
authorities will seek the Government's permission to allow it to direct the
city's Land Stock Development Organisation to clear the remaining land (from
residents who are unwilling to give them) and pay them compensations.
The city
authorities have mentioned other issues as well in their document.
It has
proposed that while granting land-use rights certificates and registering
changes in land-use rights, the city's Office for Land Use Right Registration
should be appointed as the authority that measures lands.
The
document also touches upon conflicts in certain laws. The recently-issued
Land Law 2013 says that the lease and allocation of lands for economic
development projects must be done through auctions to select investors and
not through the appointment of investors.
However,
Government regulations hold that the results of the selection of investors
shall be the premise for allocating and leasing land.
Homebuyer
support package launched
A credit
package worth some VND20 trillion (US$952.38 million) will be released to
support homebuyers interested in commercial and urban housing projects,
reported Xay Dung, the Ministry of Construction's e-paper.
The
ministry made the announcement in a document sent to the government office,
whereby it approved the lending programme suggested by the State Bank of Viet
Nam.
The
central bank will disburse the fund through commercial banks in which it has
controlling stakes. They include Vietcombank, VietinBank and BIDV, along with
Agribank and Viet Nam Development Bank.
Deputy
Minister of Construction Pham Hong Ha said the programme was aimed at
boosting the real estate market while helping lending institutions speed up
bad debt settlement.
Savills
Vietnam's managing director Neal Macgregor recently told the press in HCM
City that Viet Nam's social and economic factors were supporting the growth
of its real estate market, which had bottomed out.
He
emphasised that the amended Law on Housing, effective from July 1, 2015,
which will enable overseas Vietnamese and foreigners to own houses in the
country, is expected to attract a new wave of investment.
Viet Nam
was among the top foreign remittance recipients globally, with last year's
remittance reaching $12.5 billion, and the inward flow of capital had
recently accelerated, noticeably from Singapore, Korea, and Japan.
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.
High-end
real estate sales pick up speed
The
high-end property segment is warming up along with the recovery of the realty
market this year.
Many
high-profile projects have started construction or have been released for
sale, attracting a large number of buyers due to the promise of profits.
From the
beginning of this year, Vingroup has sold hundreds of villas developed under
Vinpearl Premium brand in Nha Trang, Da Nang and Phu Quoc.
Recently,
more than 300 villas in the FLC Samson Beach and Golf Resort complex in Thanh
Hoa Province were sold in the first sale. Last month, FLC Group launched the
construction of a seven-star beach golf resort in Quy Nhon City, Binh Dinh
Province.
Villas
of Naman Residences and The Point projects in Da Nang City were also released
for sale.
Nguyen
Ngoc Thanh, deputy president of the Viet Nam Real Estate Association (VNREA),
said high-end properties, especially luxury resort projects in tourist cities
and provinces, were making strong recovery with a large number of successful
transactions.
Ngoc
said resort projects were expected to boom when the amended Law on Housing,
allowing foreigners to buy houses in the country, took effect on July 1.
Experts
said an increasing number of investors were pouring money into high-end
projects as long-term investments, as the property market emerged as a more
attractive investment channel when compared to deposits, the stock market and
gold.
An
expert from VNREA said that a number of investors were seeking high-end
projects with promising profits, such as villas in luxury resort projects
along the beach.
Buying
property and then leasing it out would generate greater profits than keeping
money in savings when the interest rates were about four to five per cent per
year, analysts said, adding that more people were adopting this kind of
investment method.
For
example, Vingroup promised a lease profit of at least eight per cent per year
for 10 years for Vinpearl Premium villas. IDJ Investment also pledged a 10
per cent profit in the first 10 years for investments in the A-class Chamvit
Tower.
An
individual investor in Ha Noi said he had recently bought a villa on Truong
Sa Street in Da Nang with the expectation of making large profits from
leasing the villa.
A
representative from the Thanh Do Investment Development and Construction
JSC., the developer of Naman Residences, was quoted by as saying that more
than half of the orders for purchasing its villas came from investors in Ha
Noi and HCM City.
Christopher
Piro, director of Viet Nam Sotheby's International Realty, was quoted by the
newspaper as saying that property investors had shifted to long-term
investments for profits.
The
latest report by the construction ministry said the real estate market was on
the path to recovery in the first five months of this year, reflected in
stable prices, high liquidity, gradually appropriate product structures and
falling inventories, as well as improved confidence.
Source : VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
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Thứ Ba, 9 tháng 6, 2015
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